Skip to main content

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

2:00 pm
. good afternoon, everyone welcome to "power lunch. stocks are off the highs of the session after a stimulus deal with bipartisan support pushed both the s&p and the nasdaq to record highs earlier today and the dow just below 30,000
2:01 pm
there, about 30 points, 25 points now below that benchmark. that is in part thanks to boeing, that is the dow's gain that stock is up about 7% after one of its biggest customers, ryan air, near lily doubles its order of the plagued 737 max plus texas roadhouse that stock is up 200% since the march lows can you say that about many other restaurant chains? i don't think so also near its record high, the ceo, ken taylor, will be with us interesting, engaging guy. he's going to tell us how he pivoted the business to thrive in this new normal as "power lunch" starts right now. hi, tyler. hi, everybody. stocks are off the highs of the session but all the major
2:02 pm
averages are on track for their second week in a row in the green. let's go to bob pisani for what's driving us higher today >> i'm a little disappointed with the action. the comments a stimulus deal was in reach helped early on but has done nothing in the afternoon. we're moving in a narrow range, kind of flattish all the right stuff is moving. december looks a lot like november industrials and bank stocks have been strong and tech, while not as strong is holding up very well and consumer staples and more defensive names like health care are lagging so the right stuff is moving, the same momentum we saw in november, it's just much, much more muted. there's some concern this may be a sell on the news event with the stimulus program we don't know yet. aerospace and airlines, we heard
2:03 pm
from tyler mentioning boeing here, the first order for the 737 max since the grounding. big help for the dow and ryan air increasing its orders as well dealt delta had positive comments about cash burn. there's been a tremendous amount of trading in some of those airline etfs semiconductors moving here, in highs with all the right names, the names everybody knows and loves. micron had positive comments, lan, paradine. it teradyne millennials love buying the etfs and the social media etfs at a new high, 5g etfs at a new high. great creation of these etfs this year, a lot of enough
2:04 pm
buying of the eetfs what's going on with the stimulus is the market tired of the story or it's already well priced in that's what's being debated on the trading desk back to you. >> never knew and never would have guessed in my life that there was a gaming etf. >> there are several and the assets under management, which is what you want to watch, have been going up all we're people like playing thematics, i want to own cyber, i want to own gaming can you do that in one fell swoop now. it's very popular. >> i wonder if the initial found e founders of etfs thought it would go this way.
2:05 pm
they probably did. ok okay, thanks very much >> markets have been burned before on stimulus hopes will it be different this time ylan mui is tracking the latest with the stimulus talks. >> hi, tyler the big difference this time is speaker of the house nancy pelosi and senate majority leader mitch mcconnell are talking. that's a necessary step if they're going to reach a bipartisan agreement on several front. they spoke at 2:45 p.m. over the phone. they spoke about the government funding bill as well as the prospect of another covid relief deal mcconnell says he does expect them to be voted on at the same time pelosi's office said that both sides have a shared commitment to completing the omnibus and covid relief as soon as possible mcconnell's office did not comment. democrats have embraced the new $908 billion bipartisan framework as a baseline for
2:06 pm
negotiations mcconnell has not embraced it just yet, but we are hearing from a number of prominent republican senators that they are open to it senator john thune is calling it a move in the right direction. john cornyn described it as a major change so this is all good news if this is the beginning of pelosi's and mcconnell's discussions and not the end of them. >> where do we know the white house administration may be on this $890 million package? >> we heard from president donald trump that they're close to a deal and he would support it but he didn't say exactly what that deal was mcconnell says the white house has signed off on an even smaller proposal he's been circulating offer this maver thk but we don't know if that's the only thing the president would support and if he would be willing to go for this
2:07 pm
bipartisan framework as well >> ylan mui out in the beautiful parts of west virginia i know so well >> thoughts of home. the dow hovers around 30,000 joining me to discuss is neil hennessey. it's good to have you. i read through your 20-21 play book and to me it's all about pent-up demand, is that right? >> i think so, kelly we try to look at history and history tends to repeat itself when i start to look back over the years and what corporations have weathered, be it more restrictions, more regulations, whatever, they seem to come out okay now we're just dealing with this virus situation and companies are still doing well but the bottom line is the
2:08 pm
economy is fundamentally in good shape and there's plenty of cash on the sideline. it's just when does the economy open up 100% and that's the question. but where interest rates are now, what you're getting on yield versus what you're taking on risk, the only place to be really is in the stock market. >> neil, what about those that say to you we're already at 30,000, already up 60% from the lows we have a market that has a lot of sentiment at extremes, call option, volume, that sort of thing. it's the kind of highs that would indicate it's time for a reset here what gives you the optimism to say we can confidently march from 30 to 35,000. >> well, first of all, there's a shift from growth to value and that will be a slow climb. because if you just look at the nasdaq, okay, up 39% but, kelly, if you take out amazon, apple, google,
2:09 pm
microsoft, tesla and facebook, you take those six companies out and the nasdaq is only up 15%. so essentially you've had six stocks out of 3,300 move the market that's unrealistic but when you look at, for instance, the dow jones, it's yielding 2%, over 2% versus a ten-year treasury at 90 basis points or 30-year treasury at 1.6% i wasn't thinking about it until this morning, a triple b bond, ten-year corporate bond is yielding a little over 2%. so people are reaching for yield when they should be looking for value and that plays into the difficult -- dividend story. >> you guys do a lot of midcap names. let's talk about the banking sector and why you think that
2:10 pm
could be one place to be i know for some brick and mortar places well, those are areas, flesh that out for us. >> the hennessey midcap 30 fund is quantitatively driven we don't have a choice so the banks did not come in they didn't come into the portfolio not because they're not strong financially, very, very strong. the problem was is they had price momentum on the down side, not price appreciation on the up side over a three, six and 12-month period. so much you look at the banking sector if you're going to pick a sector, i would say, yes, that's you have to be patient but it's a great sectior to be in. when you talk about brick and
2:11 pm
mortar -- once restaurants, i'm sure you'll agree, it would be nice to go to a restaurant at night inside and nice to go to a mall and just browse around and buy something instead of ordering your food on and buying your presents online and your coats and clothes. i think when the economy opens up, companies that are -- earnings are only down about 12% and look what the we faced in here, kelly, in the s&p and 500. can you imagine when it opens up how quickly it's going to come back because people have money and they want to spend it. that's why you can't get an rv that's why you can't get anything to use outside because they don't have them in stock. >> yeah. and i take your point. a couple of the names lkq, ticker bbry, those are some names to watch in the midcap 30
2:12 pm
fund and that's for coming on and talking all about what 2021 could hold >> thank you, kelly. >> still ahead, energy leading the market higher. consumer staples and utilities are your laggards. plus coronavirus hospitalizations and deaths hitting record highs in the u.s. with a vaccine right around the corner we will eatospk the head of rutgers university hospital about how they are bridging the gap to the other side. more "power lunch" is next see yourself. welcome back to the mirror. and know you're not alone because this. come on
2:13 pm
jessie one more. is the reflection of an unstoppable community in the mirror. in a land not so far away, people are saving hundreds on the most reliable network with xfinity mobile.
2:14 pm
they can choose from the latest phones or bring their own. and because they get nationwide 5g at no extra cost, they live happily ever after. again, again. your wireless. your rules. your way to stay closer together this holiday season. switch and save up to $400 a year on your wireless bill. and get $300 off when you buy the samsung galaxy note20 ultra 5g. learn more at
2:15 pm
. all right. the covid-19 crisis crossing staggering benchmarks here in the u.s., hospitalizations crossing 100,000 for the first time and single-day deaths hitting a record high. this comes as the u.s. plans to roll out a covid-19 vaccine with the emergency use authorization as early as mid month, beginning with health care workers, the elderly and those most at risk one of the keey focusses is logistics. will hospitals be able effectively to handle the vaccine distribution in here now to discuss is dr. sharif nahall
2:16 pm
at rutgers medical school, one of the hospitals chosen by hhs to serve as a stress test for distribution i assume that means you will be one of the earliest of the early responders in distributing the vaccine. have you begun to receive any shipment >> we haven't. but what we've had to do over the last several weeks is plan very diligently for the first shipments of the vaccine that's involved the plan for actual administration, including setting up a lane like an assembly line but also close coordination with the new jersey department of health and operation warped speed this is going to be a very complex process. cold storage requirements are very complex, requiring unique packaging but also of course the refrigeration equipment. we're one of several hospitals in new jersey that has the ability for ultra cold storage
2:17 pm
we'll be one of the few getting that first shipment and testing the complex logistics in coming weeks. >> that's one of the areas i really wanted to talk to you about because it's fascinating to me that this, and i believe it's one of the other vaccines require that super cold storage. there can't thbe that many plac in the country, and up said only a half dozen or so in new jersey, that can accommodate that how do we do this at the scale that we're going to need to do it >> there are definitely more places in the state that can do it we are one of the few assisting in the planning process. but that's going to be generally in the country, really dry ice temperatures, they had to load the planes coming from europe with the initial al occasions with the vaccine with 15,000
2:18 pm
pounds of dry ice. so this is going to be a major limiting factor, which is why we have to plan so diligently but i'm confident we'll be able to do the first round of administration >> forgive me for being dense. the vaccine, i take it, does not freeze solid at negative 94, does it? >> it does get to a state where it can be preserved and the entire idea is once it thaws, you have a certain amount of time where you can give it and you're sure that will work based on the clinical trials that were done and many of the basic science work that was done. >> so you thaw it briefly so it goes to a liquid format which it can be injected but you can't let it thaw and sit there or it loses its potency. >> exactly if you thaw it and it sits too long at room temperature or warmer temperatures than negative 94 degrees fahrenheit, the vaccine is compromised and likely will not work so that's why up to the point of
2:19 pm
distribution and administration, it has to be kept at that temperature. >> let's talk about a couple of other things and beginning with the idea that we have tens of millions of people in this country who are in the at-risk category and we have hundreds of millions of people who are probably going to want to be vaccinated are you down with the idea that we will have vaccinated a large portion of the population of the united states by the middle of next year? >> we hope that's the case and the real limiting factor, i believe, will be adoption. we have to make sure that a trust is earned with the american people with this vaccine that starts of course with our health care workers as you mentioned. the meeting earlier this week actually required that nursing home and hospital health care workers to be the first to receive it in addition to nursing home residents that will be a test phase for willingness to get the vaccine
2:20 pm
we've done surveys at our hospital with better and better results over time with trust in the vaccine. but i do believe that will be the factor to achieving what we want to. >> you'd take it and you'd have your loved ones take it, i assume >> i would and, in fact, i was a clinical trial participant myself in the moderna trial, which we did out of rutgers new jersey medical school at our hospital we wanted to demonstrate to the community we would not be offering a trial that we would not do ourselves >> let me ask you a couple other things that i think are unknowns about this vaccine number one or maybe underplayed parts of it. what do you have know about side effects about the vaccine? do people who get it report feeling ill or tired or headachy or febrile or whatever >> well, the side effects are of course different depending on the vaccine you're talking
2:21 pm
about. both pfizer and moderna will be among the earliest that we end up distributing. the good news is there are no severe adverse events identified in the co-horts and trials that were done. there was fever, like site irritation, nausea and vomiting. you have to compare those risks to the benefit of being able to prevent covid-19, which can be devastates for older people and can cause significant morbidity in younger people. >> do we, do you, have enough workers to administer this vaccine? >> we do we're compensated on staff, we're of course trying to compensate with agency staffing and a lot of backup options in case the surge really comes hard in our hospital. but for now we're confident that we will have the staff in the coming weeks to be able to begin this process, and we're in close contact with authorities to be able to communicate staffing shortages as we see fit.
2:22 pm
>> i'm imagining under normal sixes it might well be a nurse who would administer this, but you are throwing probably all of your nurses into clinical care if you're overloaded with patients doctor, we wish you all the best of luck and we hope we can count on hearing from you again as we move through this process. >> thanks for having me. >> you're very welcome there k kelly. >> still ahead we're watching shares of boeing it's up more than 7% is it on a direct flight back to all-time highs a top analyst weighs in. plus we're going yield hunting with 28 mpiecoans in the s&p sporting dividends of 5% or more so which ones are safe to buy in "power lunch" explores that and more after this quick break. (upbeat music)
2:23 pm
2:24 pm
- we did it! (crowd cheering) - [narrator] wherever you start, snhu is where you can finish. (crowd clapping) (crowd cheering) - here we go. - [narrator] and it's it. - [group] yay! - [narrator] you did it, high five! - southern new hampshire university. - [man] that gets a hug. (laughing) - look at that! master's degree, i did it! - i did this for my children. i am very proud of myself. - [narrator] finish your degree at
2:25 pm
welcome back with interest rates low and likely to stay that way for a while, investors are on the hunt for yield. while exxon mobil is current licurrently yielding more than 9%, there are concerns it might not last dom? >> let's look at some of the stocks in the s&p that have dividend yields above average
2:26 pm
but have kind of maintained them without having a share price decline that's led to massive dividend yields. look at the screen we ran. for the s&p 500, we looked at those 500 or so issues, looked at dividend yields with 3% or more that leaves 116 companies that pass that screen when you take out the six month and 12-month price appreciation, only to the up side, it only leaves 21 stocks there of those 21 stocks, these are some of the highlights you're looking at names like what's happening with 3m those shares down 2% year to date but still positive over six months, positive over 12 months and currently yields around 3.4% you match that to around the 85 basis points yields you get on treasuries, that looks pretty good take a look at another one this one here is verizon that telecom giant again modestly higher year to date but positive over six to 12 months,
2:27 pm
currently yields at 4.1% relatively stable compared to many of the other stocks there and one of the bigger pales you'll find with capital appreciation, pharma abbvie. a nice recovery there. those particular stocks are the three of the 21 that we've chosen to look at here i can't fit all 21 on this screen go over to my twitter feed, at the domino, i've a -- i've put all the latest stocks on there. >> plus all the boy bands as well >> we look at where dividends
2:28 pm
are safe you're looking for opportunities in the retail space, target and nike can you tell us why? >> yeah, i think specifically for target, we're looking for share companies that are still appreciating the stock performance but also provide yield and cash flow. target's yield is on the lower end, about 1.54% but if you look at what they're doing during these times shifting the business, they talk about last earning, that their curbside business increased and home delivery increased but they're also still paying investors the cash dividend over this time, which is difficult for a lot of companies. that's the reason i like target and nike is another company performi performing i like those two names >> you've actually got your eye
2:29 pm
on 3m which announced job cuts of 2,900 people at a time where it's seen strength in personal safety but weakness in health care and transportation. >> yeah. it's one of the things about 3m is it not only pays a nice dividend but they've increased their dividend of year for more than 50 years so it's a nice safe play. and on a technical basis, you look at the stock's chart, it broken above its trend line going back three years and it's now trying to break to make a key higher high. if it can break above that level of $180 in any kind of meaningful way, it going to be very bullish for the stock on a momentum basis the other one i like is verizon. dom mentioned that one as well, a nice dividend over 4%. but you also have the benefit there of getting exposure to 5g and you have a situation where the stock's been making -- it's increased its dividend 14 years in a row
2:30 pm
that's another safe play it can break above 62, that's its all-time high, it's been making a series of higher highs and lower lows since march if it can get to an all time high, you'll have momentum there as well. ma. >> seema, thank you. ahead on "power lunch," covid cases climbing, making it harder to keep restaurant diners outside. plus bigger, better bitcoin. what makes this rally different than 2017's? and boeing up near lily 60% as n air with the 737 stock
2:31 pm
2:32 pm
i felt like... ...i was just fighting an uphill battle in my career. so when i heard about the applied digital skills courses, i'm thinking i can become more marketable. you don't need to be a computer expert to be great at this. these are skills lots of people can learn. i feel hopeful about the future now. ♪
2:33 pm
2:34 pm
welcome back, everybody. i'm sue herera president donald trump award, the crountry's highest civilian honor to former football coach lou holtz. he is a vocal trump supporter. president donald trump refused to say whether he still has confidence in the attorney general william bar, who says he has seen no evidence of widespread voter fraud >> another big deal for the los angeles lakers they are reportedly finalizing a new five-year, $190 million contract with anthony davis for him to stay with the lakers. yesterday the lakers signed
2:35 pm
lebron james to a two-year contract extension and take a look at this. this is the moment of collapse for the radio telescope in puerto rico. footage showed the cables snapping and the telescope crashed. >> that had been said to be in a precarious situation since one of the cables cracked some months ago >> it was battered by hurricane maria, too it's a big loss to the scientific community >> was it the largest in the world, as i'm recalling? >> i'm sorry >> was it the largest in the world? >> yes, it was one of the largest in the world and it was the radio telescope that isn't the message into the
2:36 pm
milky way in 1974, i think it was. to look for extraterrestrial life >> i was going to say send it in the milky way, i was looking for a snickers anyhow. thank you very much. >> you got it. >> the dow industrials are higher i'm going to turn around i can see this monitor better, back above 30,000. s&p up 0.1% and the nasdaq and russell also higher. take a look at zoom video. for a change they're flat today on signs that zoom's growth is starting to slow just a bit. while the work-from-home trade may be fading, bank of america says the work on your home trade still has legs they predict more gains for bed, bath & beyond, which is up nearly 500% from its low of the
2:37 pm
year for more on bank of america's home plays, go to kelly? >> it was another rough week for restaurants amid new restrictions on indoor and outdoor dining kate talked to one restauranteur who said shutdowns are not the problem, they're the solution at this point kate >> they saw double-digit declines posting the worst results per black box intelligence traffic down 16.3%, sales down 10.3%, that's a 3.8 percentage point drop from october as koef individu -- covid cases rise james whitaker, co-owner of bellevue brewer company went viral on twitter after saying it's actually not the shutdown killing its business, it's the virus itself dragging things down while congress goes one step
2:38 pm
forward, two steps back on another round of covid relief, whitaker says they need to figure it out. >> the virus is the economy, and you will not fix the economy until we get this virus under control. back there just figure out how to get the american people to all fight on the same side >> now that's often what we hear from small businesses. so many of them that we talked to are really frustrated with the restrictions themselves. whitaker said he's gone from 40 workers to six he said he's got about a two-month window that will shrink if the economy reopens before the virus is contained. tyler? >> thank you very much while many restaurants are faced with a host of challenges right now, texas roadhouse is putting a greater emphasis on curbside pick up and even shifting to
2:39 pm
e-commerce by offering ready-to-grill steaks via amazon and through its own online butcher shot sales of the stock are up more than 30% this year and up nearly 200% from the lows here is kent taylor, chairman and founder of the texas roadhouse. we were together for a documentary a few years ago. you taught me everything i needed to know about how you locate i don't recall restaurant now i want to ask you how do you make so many money in the midst of a pandemic, $630 million of profit in the most recent quarter. that just is astounding. >> you just learn to pivot through all this, i guess, and learn how to pivot into the parking lot, pivot back into the building and obviously with about a hundred stores now, we're pivoting back into the parking lot. >> is that because of local regulations that won't let do
2:40 pm
you indoor dining, whether that it's in california or whatever states you are in? >> that's correct. kentucky and ohio did a two-week shut down. every week there's a new state that is moving backwards a little bit that's all >> and then when you were driven sort of underground or back -- you couldn't really serve outside or that hadn't been solved, you compensated as many did but doing a lot more takeout orders how much is -- is revenue down this year? is revenue up this year for you? >> overall it's down but we were flat, as we reported, back in october versus the year before, which is pretty amazing. and a big piece of that is what we were doing maybe 7% to go a year ago and then the stores that pivoted back to opening inside we're doing north of 20% to go and we feel like next
2:41 pm
summer that will be still having 20% to go in our restaurants as we hopefully are opening back inside >> and then you i think very intelligently added i guess delivery of frozen steaks, which is really your stock in trade. most of your businesses in steaks and that's been a growth area for you and really i think rather innovative. i can't think of many other people who would -- >> and then we were getting ready to roll out our texas roadhouse delivery >> every week is quite a bit larger than the week before. we're taking it slow, making sure we can deliver quality
2:42 pm
product. like everything we do, we start out slow but ramp up quick later on >> one of the things i remember when you and i were driving around in sort of upstate new york, you told me that when you're looking to locate a restaurant, you're looking not in highly dense downtown areas, number one >> right >> number two, you're looking in areas that have good access for major arteries and the like, but they are mostly stand alone -- with easy parking, mostly stand-alone locations, they're not part of a strip mall they are stand alones. so the very fact that you have that approach and branding, was that a big advantage in your ability to move dining outside because your stand alone, you're out in larger areas and you can put up a tent and so forth
2:43 pm
>> absolutely correct. many, many locations we had not just one, we had maybe two tents in our parking lot where they would not allow us a tent, we would do picnic tables with umbrellas over them so our people got very create of and i think having that entrepreneurial spirit in our company, i kept calling people and said try something crazy and let me know how it works i did that a lot, specifically back in march and april. >> i tell you, the bread that you serve hot, what, it got a cinnamon bulltter >> honey cinnamon butter >> had that with the margarita and have a good evening. if you've never had that cinnamon butter, kelly, on the bread, it is really, really good i recommend it >> that and a snickers tyler, thank you so much
2:44 pm
the nasdaq hitting a record highle todhigh today and we're on track for another record close take a look at shares of amc networks which are sinking after warner brothers said it will announce its slate of 20-21 films and will relays them directly to hbo max. more power lunch right after this oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit ♪ 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.
2:45 pm
connect to client goals. and strengthen confidence in you. flexshares. powered by over a century of investment expertise. before investing consider the fund's investment objectives, risks, charges and expenses. go to for a prospectus containing this information. read it carefully. for a prospectus containing this information. (vo) verizon 5g is here. with the coverage of 5g nationwide. and, in more and more cities, the unprecedented performance of ultra wideband. this is the 5g america's been waiting for. only from verizon.
2:46 pm
and sweetie can coloryou just be... gentle with the pens. okey. okey. i know. gentle..gentle new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database so you can start hiring right away. claim your seventy five dollar credit, when you post your first job at
2:47 pm
to the bond market where rick santelli tracks the action for hi, tyler, we are looking yields slip. intra day down probably because we have jobs reports tomorrow and jobs have been trending lower. if you open it up to one month, we fail to get up above that 96 close on the 10th of november. one week of the dollar index shows us clearly we below yesterday's lows every session one month of the pound and euro versus dollar, you can see all the majors doing better against the greenback. kelly, back to you >> we are watching that one like a hawk thank you so much, rick santelli >> bitcoin is hanging in around
2:48 pm
$19,000, but something very different this time. we'll tell you who has been buying and who is taking notice. plus, boeing is hoping to reclaim its old highs. still a long way to go but a big step taken today it's up 7% we'll explain when "power lunch" we'll explain when "power lunch" returns. we'll explain when "power lunch" returns. so do telcos. that's why they're going hybrid with ibm. a hybrid cloud approach with watson ai helps them roll out new innovations anywhere without losing speed. from telco to transportation, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. good work little buddy. ♪ ♪ i made a business out of my passion. i mean, who doesn't love obsessing over network security? all our techs are pros. they know exactly which parking lots have the strongest signal. i just don't have the bandwidth for more business.
2:49 pm
seriously, i don't have the bandwidth. glitchy video calls with regional offices? yeah, that's my thing. with at&t business, you do the things you love. our people and network will help do the things you don't. let's take care of business. at&t.
2:50 pm
welcome back, everybody. dow jones says it is planning to launch cryptocurrency exchanges
2:51 pm
next year. the latest example of wall street's acceptance of cryptocurrencies like bitcoin since they hit the market in 2017 here's how danny masters explained it to us yesterday. >> there is definitely a narrative at the moment whereby that this sort of perceived career risk of having bitcoin in your institutional portfolio as a portfolio manager is fast migrating into a careerist for not having bitcoin in your portfolio. and that's -- that's a really stunning development >> very interesting point there, kate rooney looking at another big difference between bitcoin now and three years ago. and that is who is buying it kate >> tyler, this year, it's wealthy north americans and long term investors buying bitcoin versus more active traders and folks in asia three years ago. data firm chainal sis annizes
2:52 pm
blockchain to see where and how much people are big n. 2017, the bulk came from asia this year there are more net inflows from east asia to america he can changes. there are also signs that more high net worth and institutional investors are getting in we have heard names like bill miller, stan druckenmiller and tudor jones backing bitcoin recently it is also backed up by the numbers. total accounts moving $1 million worth of bitcoin and moving it off of exchanges up. analysts saying wealthy investors are loading up on bitcoin and take it offline to somewhere more score 2017 was the year of initial coin offering and frenzied activity not the case this year they found more people are holding it versus trading it back to you guy. >> kate, is there a difference now in how people are buying bitcoin this time around
2:53 pm
compared with 2017 >> they found it is much more mainstream it used to be crypto exchanges now it is places like square and paypal and also gray scale's bitcoin trust. that's the vehicle that guggenheim is using. it is getting more mainstream. >> when you say big hitters are moving it off the exchange into other secure places, how do you do that. >> you put it on a hard drive -- it depends fidelity is one of the companies that does custody. they will hold it for you. you can put it on a hard drive, though and put it under your mattress taking it off the exchange they say is safer. >> don't lose that thumb drive, maybe. >> it happens. people lose their codes and their passwords all the time. the dow is holding onto a 162-point gain we are above 30,000 by 46 points
2:54 pm
and possibly headed for a record close. boeing has been a driver of the dow's outperformance today and its recent rally it is up 50% in the past month can it keep throughing high? that's next on "power lunch" with the stock up almost 7%. stay with us i felt like... ...i was just fighting an uphill battle in my career. so when i heard about the applied digital skills courses, i'm thinking i can become more marketable. you don't need to be a computer expert to be great at this. these are skills lots of people can learn.
2:55 pm
i feel hopeful about the future now. ♪
2:56 pm
we're committed to making college more accessibley, by making it more affordable, that's why we're keeping our tuition the same through the year 2021. - i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look, we can do this." - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at welcome back boeing soaring nearly 8% today as one of its larger companies kmus, ryan air adds 75 more planes to its existing order for
2:57 pm
the 737 max. up 50% in just the last month after the faa cleared the boeing 737 max to fly after being grounded for 20 months on safety concerns joining us, carter copeland. it is to have you. they had a positive double whammy, the vaccine news and the 737 max getting back in the skies. how much is priced in now for boeing >> it is tough to say. it has been a real situation where the market has been caught offsides when the vaccine news goon hit i think a lot of investors were thinking that a winter surge in covid cases was likely and given where we were, the point in the calendar year the folks said it is too early to buy these namesing boeing principal among them and risky when the vaccine news hit and
2:58 pm
continued to come along folks are mott positioned for it we are seeing violent upward moves. then you layer things like the max coming back and the order from ryan air. we are getting to a pretty news-driven rally here it is tough to say where we could go from here but it is hard the see the news not being anything but positive for quite some time. >> right that said your price target is 260. right now it is 238, roughly a 10% upside there is not 30 or 40% more to go frommer hao at what point do we look at boeing in a much more positive way with much more upside than that or is it just not possible for the near term. >> there is a lot of unanswered questions. this is a stock where the street used to be dreamy eyed and talk about mid 30s dollars per share of cash flow how that debate is shaking out
2:59 pm
in the mid teens to low 20s. you start thinking about could there be upside to where the stock was before given all the debt they have taken on and the interest costs associated with that i don't think those are realistic targets but on the mid teens to 20s numbers, look at where this stock has been, it has been ten times that when we hate it and the 20 plus when we love it. the question is, do you have to be invested in aerospace stocks after we have vaccinated the public there will be a lot of debate around what the might multiple is in addition to what the numbers are. right now the stock is not trading on the short-term fundamentals it is trading on the belief that the catalyst path is going to be a good one for a long time to come. >> what's the multiple right now carter >> depends on what your numbers are. if you believe that the recovered number is $20.
3:00 pm
we are in that 11 to 12 kind of range. that's several years off we would have to discount a target but if you believe that will be will pay in the mid to high teens or 20 you can get upside but we are going to debate that because this industry was thought to be, you know, very secular in its growth profile and not as cyclical as it once was. now with the pandemic i think we will debate that. >> carter, thank you for joining us today again, bullish on boeing, carter copeland, tie. >> dow back above 30,000 s&p record if you have got 20 grands you can buy some bitcoin thanks for watching "power lunch. we will be back with you tomorrow "closing bell" starts right now. >> thank you tiler and kelly and welcome to "closing bell." i'm sara eisen here with wilfred frost. stocks are green the nasdaq and s&p are looking at new record closes let's look at what's driving the action right now dow is up more than 100 points boeing is a big gainer on a new deal for 737


info Stream Only

Uploaded by TV Archive on