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tv   Power Lunch  CNBC  December 23, 2020 2:00pm-3:00pm EST

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welcome to "power lunch. along with rahel solomon, i'm tyler mathisen stocks are in rally mode the russell and nasdaq hitting record highs jumping on the last full day of trading before the holidays. there is a new fear. investors are putting on their radars ahead of the new year we will explain what it is plus, where's the relief the future of the stimulus bill
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hanging in the balance, and even when it's done, it might not be enough as 500,000 americans file jobless claims before christmas. an electric shock as the ev craze on wall street heats up. nikola just lost a customer and shares are down double digits. we have all the details as "power lunch" starts right now thank you, tyler welcome to "power lunch. i'm rahel solomon. let's start with the russell 2000 at a record high. outperforming all the major averages today in the past month, up more than 10% while the s&p is up 4% plus, take a look at the stocks leading the dow so far in december disney the big winner, up 18% as analysts catch the rally peloton a flurry of pride upgrades as the stock continues to soar. it's near record highs
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up 740% this year. not too bad. though the markets are up today, the worries about 2021 do seem to be increasing can corporate earnings match what are, for now, high expectations let's bring in bob pisani for more. >> rahel, we are just off the highs for the day. before i get to the earnings, let me point out russell 2000 new high. we also have the nasdaq at new high not quite on the s&p 500, 3722, that's what you need for the new closing high on the s&p. got to get above that. 30,303 would be the closing high for the dow industrials. to beat that, we need to get above that dow movers, yield curve is moving the bank stocks good day for jpmorgan, goldman sac sachs, amex. disney up 18% so far chevron is getting a move. it's been on the downtrend for weeks but finally an up day. talking about earnings, that's what we're a little concerned about. remember how great the second quarter earnings were?
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huge beats, companies beating bill big numbers they kept raising positive comments overall i think q1 is going to be a lot more cautious. we heard this from carmax last night -- or yesterday talking about december's numbers being a little below expectations. most companies that have reported so far have reported for a november-ending quarter. we had some companies, about 13 of them, that have already reported and they're beating, if you take a look here, by about 9% that's good. by this time last year, the quart quarter, the beats were huge they're not beating by as much i anticipate when you get companies reporting the december-ending quarters, they'll be more cautious talking about what's going on in december keep an eye on that. here's the companies i think that will be important several companies that are reporting november-ending quarters reporting january 7th bed bath & beyond, constellation. these are consumer-focused companies. we want to hear how december is even though it's a
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november-ending quarter. delta on the 12th. we start official, sort of, earning season on the 15th with jpmorgan and citigroup i anticipate more cautionary comments about what's going on in december. >> we'll hear more cautious commentary in a minute will 2021 about be the comeback for earnings and the economy investors are banking on, that stock prices need, or has the market gotten a little too optimistic let's bring in rob hallworth from u.s. bank and megan hornamon from vernon capital advisers welcome. megan, i see am my notes that you are a little cautious on the market you are urging overweighting cash you see a pullback is likely as the market absorbs the record rally and maybe thinks the stimulus isn't enough. explain what you're seeing for the first half of 2021 >> the first half of the year is
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going to be the biggest challenge for the economy next year we have rising covid cases if it's given us any indication on what we may see in the first quarter, we can look back at what happened after the fourth of july holiday, what we've seen after thanks giving. we are seeing people are traveling, getting out and about. the rise in covid cases is probably here to stay for some time the dmik daeconomic data, the p and income spending was from november in november we had very little clarity around fiscal stimulus it's not surprising to me you saw a dip in spending. we think it will be challenged in the first quarter as you get into potential more regional lockdowns as well. >> so, rob, let's turn to you and get your reaction to what megan just said. not a rough first half but maybe a restrained one of 2021 do you see it that way >> we see we're in a soft patch
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but there's some pressure relieved as we move into the next two quarters. primarily because we expect to get stimulus, although there is some error around that when we think aboutgrowth wher we were last year, early in the first two quarters, we have pretty easy comps when it comes to economic growth we're a little more constructive in terms of the economy in the first half of the year that leaves us still more constructive on markets as we enter 2021 >> where would you urge people to put their money what would you overweight and potentially underweight? >> our emphasis is on stocks over bonds within stocks we emphasize the u.s. a little more than non-u.s. with a focus on mid-caps because we think the rotation trade is happening. the vaccine is here, it's being
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distributed. we find that constructive. there's a risk if it doesn't get through fast enough. we still have time to get enough of the population vaccinated i think the market is focusing on the reopening after we get through the vaccinations. >> megan, as you look for long-term acceleration, you say if there are pullbacks in the near-term horizon, you would use them as buying opportunities in light of your greater confidence long term. where would those buying opportunities occur? >> i agree with rob as well that this rotation that we've seen, i think, has some legs now, while i mentioned it's going to be a rough first half of the year, the second half of next year and into 2022, we're going to see a whole different side of pent-up demand from consumers. this is going to come from travel, leisure. this is where some of the areas that have lagged the market, and midcaps is one i like as well. whether it's energy, financials.
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look at what you're seeing today with hopes of abigger stimulus package than we had previously thought. i think some of those areas will catch up you're talking about a multiyear acceleration in growth because you have massive fiscal stimulus, very easy monetary policy and a vaccine, which is a game-changer and should be fully distributed by the second half of next year. >> you see airline stocks moving higher as well they had a rough year and they may be coming back thank you very much. we appreciate it rahel? >> thank you >> thank you more than 800,000 americans filing jobless claims and some of those people waiting for checks may also be having trouble paying their rent. $25 billion is earmarked for rental relief in the still stimulus bill. it may not be enough let's bring in diana olick for more. >> reporter: that $25 billion in rental assistance can be used for payment of current and back rent as well as utilities. the cdc's eviction moratorium
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was also extended one month until the end of january experts say it's just not enough moody's chief economist notes 8 million renter households already owe up to $25 billion in back rent. that's not including utilities and late fees and says nothing of january's rent. nearly one-third of all renters say they're not competent they could pay next month, and that's from a new survey from the census this property manager in d.c., and she says the majority of her renters are behind for landlords, she calls it horrific. >> my owners can't pay the mortgage my owners can't take care of their bills. my owners are suffering because we have damage at properties like we're at today that we're fixing on a regular basis and we're bleeding we're literally bleeding out because they don't have it >> reporter: and then there's the challenge of putting the relief to work states will have to identify the highest risk families and the
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rental properties at the highest risk of foreclosure without rental assistance. they'll need to collaborate with the courts to stop evictions already in progress. >> you find the best looking backgrounds of anybody, i'm telling you. every day is a surprise to me. we love it let's talk about the housing numbers that were out this morning. i guess a miss for new home sales. >>. >> a big miss. sales of newly built homes came in much lower than expected and october was revised. it's not so much about demand but supply and affordability on supply, the inventory of ready to occupy homes, down 43% annually in october. builders have been swamped by demand and they're trying to catch up with construction that's why some are not pushing sales volume lenor noted this
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that may be why buyers pulled back as well. >> earlier this week we had another slow sales number in housing, was that existing homes? >> reporter: yes, that was on existing home sales and they came in lower than expected as well the problem there is all about supply they hit a record low number of homes for sale not just the month supply but the actual number of homes nobody's putting their homes on the market right now demand is eating up what's there and all that's left are the high-end homes low end, gone. >> people across the street from us just sold their home at 20% above the asking price, to tell you how hot the thing is. >> reporter: most homes get into a bidding war. >> appreciate it. coming up, an electric shock from nikola, can they make a
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u-turn. shares of microstrategy are up 125% in the past three months as the company has spent more than $1 billion on bitcoin this year will the big bet pay off the ceo will join ushe"per nc rurns wn ow
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welcome back take a look at nikola shares down again today, sliding 10%, after they announced an end of a
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contract with republic services group, which is down 0.50%, which was to manufacture electric garbage trucks. it's been a rough few months for the once hyped hydrogen cell fuel company hidden berg research released a note calling them an ocean of lies the founder and ceo, trevor milton, stepped down a few weeks later. now major contracts with general motors and now republic services scrapped in the last month the question is, can it get much worse for nikola with a price target of $15, my next guest says things look pretty bleak dan ives from webb bush joins us it's been a rough couple of months, but why is this a gut punch? >> it's been a nightmare for any bull like nikola i think it continues to be more shoes to drop.
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when you look at this republic deal, that was a feather in the cap for the bulls because that was a large, you know, waste deal it was something that was potentially going to lead to other deals down the road. the fact that that got canceled soon after being signed, i think it just creates those major headwinds that nikola is going through. right now we don't see those abating. i think from a credibility perspective, even though ev is a hot market, it continues to be an ever slight climb in terms of gaining credibility. today was another step backwards. >> well, dan, speaking of those bulls, so there was a note yet from cowen, the street high price target of 47 bucks essentially making the exact opposite argument, that the deal falling through was actually a positive for the company, that it sharpens the focus and that the collaboration agreement would have been expensive. what do you say to that? >> look, obviously, some rose-colored glasses for any bull looking through it. to put it bluntly, there's no
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way to spin this positively. this is something -- when they announced it, it was a paradigm changer. here it is with more analysis from a cost as well as technology perspective it gets canceled and i think it just speaks to the broader issues going forward in terms of what nikola is trying to build on hydrogen, and on the trucking side, there's already challenges there but if you look at the gm partnership, much more slimmed down and no ownership combined with this. it's hard to look an investor in the eye and be bullish here relative to what we're seeing. i think today was just another straw that broke the camel's back for anyone trying to be bullish going into next year despite massive tailwinds in the ev market. >> what does the company have to do to regain credibility you say that the company still has a kilimanjaro climb to gain street credibility heading into 2021 where do they first start?
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>> i think they first start on prototypes ultimately hitting the road starting to build models both in the u.s. and arizona and broadening out that facility as well as europe and germany and then it's more partnerships. i think it's giving investors some comfort that they could build a hydrogen -- we'll call it deployments around the world. that's very similar to the supercharger network for tesla and then you have to get more customers signed on. going into 2023, that would be the shots of credibility to show it's not just a vision, it's reality. but so far what we've seen, it continues to be, you know, an overpromise/underdeliver in this market it's been a massive disappointment, even for the bulls that continue to spin things positively. >> you do sort of hear rumblings comparing nikola to tesla. an important distinction is nikola is pre-revenue, unlike tesla, even in its starkest days what do you say to the bulls who
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insist that maybe this is a struggle at the moment but there are other examples of companies who have gotten out of these sort of rough periods and done very well? >> no doubt. and i think right now, but it also comes down to there's only one tesla and one elon musk. there are other technology companies, they're going to go through some hurdles and they've gone through us successfully if we look at what nikola is trying to do here. it's a huge vision they might have to scale that down there could be promise going into next year or two, but for us i continue to think more bad news first ahead of good news. that's why we continue to have a sell rating here, more cautious, ev, tesla and others continue to be our play rather than a nikola. >> we want to point out that tesla actually positive right now, up about 0.50 but still down 7% for its first week in the s&p. still ahead, speaking of
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tesla, the ceo of microstrategy trying to convince elon musk over twitter to join him in going all in on bitcoin. converting his cash balance sheet to crypto. do companies really do that? energy, the best performing sector today oil up 3%. heads back to $50 a barrel we'll tell you what's driving those gains.
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welcome back to "power lunch. with just five trading days left in the year, let's take a look at the dow's best and worst performers walgreens, boeing and chevron the bottom three in 2020 while tech dominated the winners, apple, microsoft and salesforce leading the charge will any of these have a reversal in fortune in 2021? let's bring in the trading nation team. daniel shea and sandler from piper johnson. >> i would stick with the winners here i would definitely say apple has definitely made santa's nice list this year technically when you look at the
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chart, you're in a nice up trend. you can see we've come back, successfully retested it and we're getting back to retesting the old highs. from my perspective, i'm going to stick with the apple. i think it's a gift that won't be returned this year. >> do you agree, danny eielle? do you think the january effect will take place this year? >> i agree with craig, however i think i'm going to stick with the winners as well. for me personally, i love the january effect and i also love the run into earnings. so, when you're looking at microsoft in particular, microsoft has shown consistent earnings growth and they have also shown a very consistent run into earnings the two to four weeks before that report for me personally, i love buying long calls in the earnings series to take the rise and in addition put credit spreads into the earnings report. >> wow. >> we might see a little bit of a rally from boeing, but not the other two, unfortunately. >> i'm surprised i thought we would get a beaten
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down cruise line, airline or casino, but i guess we stick with the winners thanks for joining us today. head to our website or follow us on twitter for more real time analysis rahel? >> thank you. ahead on "power lunch," the ceo of a company that's putting all its eggs in bitcoin's basket microstrategy has soared as a result but what will happen if bitcoin reverses analysts have trouble keeping up with peloton. not on their bikes but with their price targets. can the stock keep riding high macy's bet on a happy holiday for the retailer those stories and more coming up and now the latest from and a word from our sponsor. >> for entries into breakouts, some traders use buy stop limit orders placed above resistance levels unlike regular buy stops, buy stop limits turn into limit orders when the stop is triggered. thus, if a stock closes before
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welcome back, everybody. i'm sue herera here's your cnbc covid update at this hour. today a welcome milestone in the pandemic the cdc says more than 1 million doses of the covid vaccine have been administered with more than 9 million doses distributed. in new jersey, some of those doses were put in the arms of community health care workers at a drive-through vaccination center with the state's governor there to thank them for being on the front lines. meanwhile, florida's governor says he's going to go against the cdc vaccine recommendations by vaccinating the state's elderly after health care workers but before essential workers like law enforcement, firefighters and 250e67ers. teachers. >> they've now said, well, you should do essential workers and 75 and up at the same time the problem is, people that are 73, 74 would be in the back of the line for a young 21-year-old worker who's considered, quote, essential. >> and chicago's 71-year-old
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cardin cardinal cupid got his vakcy in front of cameras he said he was surprised because he thought it would feel cold but it was just like every other shot he's ever received. are you up to date rahel, back to you. >> interesting, sue. thank you. let's take a look at where the markets stand right now. the dow looks like it's up about 0.7% the s&p about 0.50%. the nasdaq, not quite 0.20%. and the russell just under 0.8%. leading the dow right now, goldman, jpmorgan and disney >> bitcoin near record highs crossing 23,000 for the first time as institutional investors continue to pile in. our next guest is a big proponent of bitcoin his company microstrategy has bought more than $1 billion in 2020 and the stock is climbing right alongside the crypto both up about 125% over the past
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three months even tried to convince elon musk to convert tesla's balance sheet from dollars into bitcoin in a twitter exchange saying musk would be doing shareholders a favor. joining us to discuss microstrategy and its strategy on bitcoin is the chairman and ceo, michael saylor. >> happy to be here. >> since elon musk is such an interesting cat, you had an exchange with him and he -- about bitcoin and he -- you said, yes, i purchased over 1.3 billion in bitcoin over the past month and would be happy to share my playbook with you offline. has he followed up >> you know be, i can't speak about my conversations with him, but i what i can say is that tesla, apple and google all have the same problem they're sitting on huge piles of cash and they're dissipating shareholder wealth at a rate of 15% to 20% a year times that cash they need to turn that from a liability into an asset. the best way to do it is convert
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it into bitcoin because bitcoin is going up more than 100% a year cash is debasing at 15% a year >> but people put money in cash because it is stable, and you're quite right, cash can lose value in real terms, but bitcoin can be a very valuable -- a very volatile asset as well, right? >> it used to be but it's looking much better by the month. bitcoin is the world's first engineered safe haven asset and it's running on the world's first digital monetary network everybody in the world, every institutional investor is looking for a safe haven and they're all losing faith in gold and they're losing faith in sovereign debt as a safe haven so, bitcoin is sitting at the right place at the right time. it's very appealing to anybody that wants to preserve shareholder wealth. >> hi, rahel solomon here. you say it's becoming less volatile and yet i wonder, do
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you think bitcoin still has a credibility issue? if so, how do we move past that or investors such as yourself move past that >> if you had asked me about bitcoin in february, i would have said bit what in march everything changed. since march we've had paul tutor jones and stanley bruken miller and rick reeder and guggenheim and skybridge, microstrategy, we've had square, we've had an avalanche of billion dollar entities coming into this space. they're not here to speculate on r leverage with an uncorrelated asset. they're here because they want the world's best safe haven investment grade treasury reserve asset. as the institutions buy big coin, its volatility changes and the characteristics of the asset class are maturing >> i would -- i just want to come back and poke a little bit at the safe haven thought there
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because it's not very long ago that this was an asset that went up to $20,000 and then back down at $3,000. and if you were looking for it to be a store of value, that would be a store of unvalue. so, you make the argument that because a lot of people are coming into it, the dynamics of the marketplace have changed, that it's not going to be prone to those kinds of dramatic selloffs am i understanding you correctly? >> look, it's totally different investors. it's institutions, major corporations, there's no leverage the use case is different. the use case is to buy treasury reserve asset and hold it for a decade massachusetts mutual, life insurance company, is buying it. why? you want a long duration asset bitcoin is engineered, synthetic, pharmaceutical grade
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gold it's all of the benefits of gold but you can't make any more of it it's got none of the hangover of gold so it's appealing to people that want to store their money away for many, many, many years there's nothing better >> how much money, if you mind me asking, i hate to ask rude questions. my mother told me it's not nice to ask people how much they made, but how much have you made in bitcoin this year as it's ri risen and risen and risen? >> north of $500 million. >> that's more than i make so, let me ask you another interesting question do you worry at all that microstrategy becomes somehow known as a bitcoin play as opposed to a play that really revolvings around your business intelligence operations, business analytics and so forth? do you risk losing the identity that has been so good to you as you move more and more of your balance sheet into bitcoin
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>> you know, when companies started plugging into the internet, i don't think they worried that they would become just internet companies. to plug into the world's best first monetary network and that's bitcoin you see square doing it. you see paypal do it we've done it. if bitcoin continues to appreciate at 100 plus a year, and there's no reason to think it won't as long as central banks keep printing money and as long as the technical dynamics continue, if it keeps appreciating at that rate, then apple, amazon, google and facebook are all going to have to plug their products into it and any company with large cash balances is going to have to convert their treasury into bitcoin if they wish to stay solvent and relevant we just view ourselves as being early pioneers in this space
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otherwise i think it's utterly. >> fascinating we want to ask you one final question one part of your firm is being investigated for securities violation. can you weigh in on that >> i don't think that's true, actually i think you're misinformed there. so i have no comment. >> no comment, okay. >> michael, thank you. >> let me just say, it's such an important issue. you might be referring to something that came out four, five months ago, but that matter's been, i think, dropped. we did get a message from the s.e.c. some time the september time frame saying they weren't following up on any matter like that i don't think there's any -- there's any matter outstanding at this point. >> michael, fascinating conversation we really appreciate your time thanks for being with us have a good holiday. >> okay. thank you. >> thank you >> rahel >> okay. tyler, take a look at xrp, the
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cryptocurrency from ripple down 20% today and down 38% this week the s.e.c. filing suit against ripple alleging it sold unregistered securities. the key issue is whether xrp is a currency or is a security. yesterday we spoke with ripple's ceo whosays that xrp should be treated as a currency as bitcoin and ether are. >> what does this mean for the cryptocurrency in the united states the s.e.c. is picking winners. they're saying -- bitcoin and ether are the winners. it sends an ominous sign for innovation around cryptocurrency in the united states. >> the s.e.c. alleges garlinghouse sold xrp he received from ripple and the s.e.c. says the ripple co-founder chris larson did the same and made $450 million the oil market is closing for the day. let's go to dominic chu for
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those numbers. >> for digital currency to real assets and crude oil and gasoline and everything else, take a look what's happening with crude prices that are up 2% today. near the highs of the session. $48.03 snapping a two-day losing streak at this point. it's been a nice run over the course of the past few months here for crude and that only seems small because, remember, negative prices there during the pandemic lows take a look at some of the real movers and gyrations within that particular oil market and industry overall you look at the energy sector spyder, the oil and gas exploration etf is down 37% and the vanek etf down 34% each of these sector etfs is up a decent way today a reversal near term and then because it is the holiday season, check out what's going to happen with gasoline prices if you and your family are choosing to spend some of your time driving around this holiday season, depending on
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your comfort level with covid and your particular restrictions in local areas according to aaa, the current national average for unleaded gasoline is $2.25 a gallon by the way, that's roughly what it is here in new jersey one week ago it was $2.24. versus a month ago when it was $2.11. that's a big move in a month still below the $2.55 it was back a year alg. remember, tyler, during the pandemic lows in april, i remember driving to work here and paying somewhere around $1.65 a gallon that goes to show you how far it's come back this holiday driving season will be more expensive than it was six months ago but less than a year ago back over to you. >> thank you. sit right back and you'll hear a tale, a tale of a billionaire fighting with his neighbor we'll tell you what the judge said about bill gross' dispute over a sculpture i guess that's the sculpture and the gilligan's island theme. in power movers, three stocks moving higher in three
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very different areas we have more coming right at you. academy sports + outdoors started as a tireshop in san antonio texas in 1938. our vision is to be the best sports and outdoors retailer in the country with a mission to provide fun for all through strong assortments, value, & experience over the years, we've given customers not just great products, but outstanding experiences. we can't wait to have customers nationwide have fun out there.
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welcome back time now for power movers. let's start with macy's, up more
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than 9%. retail mostly higher across the board ahead of christmas but macy's really leading it is way and the stock has nearly doubled in the fourth quarter. remember when fireeye was a laughing stock for being a cyber security company that got hacked who's laughing now the stock is up 63% because, as it turns ut, nearly everyone got hacked they're going to need fireeye and similar companies to fend off the next attack. shares are up 8% and let's end with ocugen, a small company, market cap $400 million, soaring up 200% that's after reporting positive results for the phase two study of its covid-19 vaccine. it's enrolling a phase three study now. analysts say if all goes well, it could be ready for the public in the spring. this vaccine only needs to be stored at 4 to 8 degrees celsius, that means fridge, not freezer. >> thank you. the verdict is in on that bill gross/gilligan's island lawsuit.
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we'll make it make sense gross lost i guess gilligan won robert frank with us. >> an embarrassing case and now a big loss for the former billionaire bond king. an orange county, california, judge issuing a civil restraint order against bill gross against his neighborhood they claim he played loud music on his outdoor music to harass the neighbor about gross' sculpture and the fence. clearly annoying the judge, calling gross a short fuse billionaire. gross calling the neighbor a peeping tom and blasting the gilligan island's theme song on a loop after 11:00 p.m gross threatening nightly concerts would continue until he dropped that complaint against the sculpture. gross saying gilligan's island is a catchy tune he loves to
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doons to and play late at night. gross had tried to settle the case with a charitable donation a couple weeks ago but the neighbor refusing, saying today that he is pleased with the ruling gross saying he and his girlfriend are disappointed in the outcome. and will, of course, abide by the terms of the decision and they added, with he will continue to dance the night away gilligan's island forever. i heard that song more in this case than i did during my entire childhood, which is saying a lot because i loved that show. >> so it was really -- it wasn't the sculpture so much but netting mr. gross put over the sculpture to protect it from falling objects? branches >> the first lesson here, tyler, is don't buy a fragile million dollar glass sculpture and put it outdoor under a tree. the tree branches were going to fall on the sculpture so he had a giant net erected over it. that blocked the neighbor's view and that was the complaint to
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the town that set off the whole music concert -- >> did it block the neighbor's view of the pacific or his view, as mr. gross alleges, into mr. gross' home where he might have been walking around, shall we say, in a state of de ja be. >> a lot of this was about him peeping on amy schwartz, gross' girlfriend, and that was really the issue. i think you're right, it blocked both but the complaint was that he really -- the town code didn't allow for that netting and that was what really angered bill gross and hence the nightly gilligan's island concerts a lot of ego here, tyler. >> mr. gross is quite a golfer maybe he could build a golf net and he can hit out into the pacific. thanks rahel. to the bond market we go rick santelli tracking the action at the cme. rick >> everybody loves the gilligan's theme song. if you look at the intradays of
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10s, we're in the mid-90s. up three basis points. why is this such a critical area we keep testing it but not going through. open the chart up to november 1st and you'll see it was the december 4th high yield close around 97 basis points but if you look at that same time increment, 30-year bonds not the same unlike 10s, the higher the yield -- the yield that's higher than the december yield is 174 in november. so, those are the levels on a closing basis 97 and 174, those are breakout closes now, if we look at what's going on with the yield curve, wow, almost 84 basis points, 10 to 2s, steepest since halloween of 2017 and all the curves are steeper because the long ends leading with higher rates. finally, april 2018 of the dollar index, even with the small bounce today, we're trading just three-quarters to two-thirds of a cent above a 31-month close established in
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mid-december rahel, back to you. >> rick, thank you. peloton, of course, has been one of the hottest stocks during this time of staying at home and away from the gym. it's up 1% right now, but up 600% since the market bottom in march. can it keep going as gyms try to reopen in 2021 many analysts say yes. we'll talk to one of them.
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welcome back peloton has been one of the big winners near 2020, that stock up 460% this year and wall street apparently thinks that the run is just beginning as analysts chase the ballooning stock price of the three firms raised their sto expectations. >> let's go through some of these price target increases rosenblatt to 186, key banc to 185 and tag 180. i probably don't ride as much as i should that's a story for another day what's behind the continued
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optimism >> i think the continued optimism comes from a few different things you think about now they just announced the acquisition with precor, it brings them into the market in a different way, to expand in a new channel. the fact that the biggest obstacle for pelloton has been able to meet demand with supply. they've been constrained on supply they now have more supply in the united states. that helps peloton and precor. they just exponentially increased their ability to drive sales and profits through channel, geography and profitability. >> with vaccine distributions much more likely, the story is becoming more about the reopening trade that people will, after being cooped up in their homes all year, people
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will look forward to going back to the gym and socialize with other people what makes you think this trend of working out at home will continue >> a couple of things. on average it takes around 66 days to form a habit when you're able to work out in your home and do other things, it helps it doesn't mean that people won't go to a peloton class because they have that opportunity. frankly even before the covid environment happened, there were gatherings of people who would ride together, never see each other in person, and they would have a meeting at one of the peloton head classes, basically here in new york city, where they would all meet. i think you'll be able to have that the functionality of being able to do what you want when you want, i don't think, is replaced digital content is bringing more consumers and now in other channels like commercial plus in your home, i think it gives them more optionality. >> beyonce announcement, she
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doesn't partner with a lot of companies. it says a lot she decided to work with peloton. i know i've seen they've been pushing yoga and cardio more it almost seems they're trying to move away from just being p seen as a cycling company. >> they want to be a full workout source they have the data about that consumer if you are involved in their community, you want to engage them in more activities. they're doing that with yo dpchlt a, meditation and i think you're going to see that also with a lower price trend. they're giving more opgs for the price point, too, and how to get consumers engaged in their offering. >> one thing is for sure that i think exercise is good for, stress relief and 2020 has been, if nothing else, has been stressful. so, we'll see sort of how, moving forward, people continue to use peloton if they use it in the same way dana, thank you. we'll leave it there. >> thank you. fascinating company. one of the products of the year for sure
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little bit of breaking news. jay cline has resigned it was expected as the trump administration runs to its end january 20th he was once talked about as a successor to a new york u.s. attorney that apparently not happening. he's going to go back to a new york law firm. jay clayton, leaving the s.e.c. >> s&p is up .5% and nasdaq .1%. russell 2000 among the leader, average up 1%. disney, let's talk about them, shall we one of the best performers for the month, tyler getting an upgrade from rosenblatt, naming it its top pick that it will benefit from its strong pipeline of new and original content from disney
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plus, such a huge story for this year, tyler, of course, and if we do start to see the vaccines funnel through, that people will return to parks. >> there is no power lunch tomorrow it's a shortened holiday session of the we won't be here. i'm off next week. rahel and to all the viewers, have a wonderful holiday and new year thanks for watching. "closing bell" right now. >> thank you, rahel and tyler. i'm sarah isen with taylor in for wilfred frost again. one hour left of trade stocks shrugging off that new drama as a new wrench in the stimulus bill from congress. ttek ly jobless claims were


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