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tv   Worldwide Exchange  CNBC  December 29, 2020 5:00am-6:00am EST

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. here is your top five at 5:00 stocks keeping their momentum going hitting new highs and futures suggesting the gains will continue today. the house signing off on a plan to put more money in americans' pockets putting the fate of a stimulus check bump in senate hands and shares of alibaba on the rebound after china's crackdown, raising new concerns about what is next for the country's technology sector. and boeing's 737 max jet prepares to take off again
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what the plane's return could mean for the company's battered stock. nd t and the unexpected booso trading cards. once again finding themselves in high demand. it is tuesday, december 29, 2020 and you are watching "worldwide exchange." ♪ here is how your money and global markets are setting up your day futures are indicated for a higher open. dow jones currently up 170 in pre-market trade, nasdaq higher by 55. yesterday we saw the rally kicking off the final trading week of the year, all climbing to fresh record highs with all three now trading about half to 1% higher. shares of mega cap technology
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and internet companies leading the charge and extending their gains for the year including one stock you know also well, apple, rising more than 3.5% to close at its new all-time high the stock has risen more than 85% this year. and it is actually poised to close out its second straight annual gain. but let's go worldwide now, joumanna bercetche is live in london where stocks in europe are rising for the fifth consecutive session. >> good morning. yeah, very positive session for european markets today building on some of the positive sentiment we had yesterday worth bearing in mind that today the ftse 100 is open for the first day of trading since the brexit deal was agreed on christmas eve. so seeing a strong performance there with that index up 2.6%. and in terms of sectors, we're seeing a big outperformance in the media space, that particular sector is doing very well as well as in the travel and airlines, hospitality names doing quite well
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this coincides with the rollout of the max vaccinations going on the european continent so helping to give a bit of a boost to that particular sector. on the down side, we're seeing banks lag a little particularly some of the uk banks a bit of a surprise there. you would have thought on the brexit deal they would be doing better we have barclays, lloyds, some of the domestic focused banks down anything from 2% to 3%. and one stock in particular i want to draw your attention to is astrazeneca today or tomorrow could be a very big day for that pharmaceutical company we're expecting to hear from the uk official medical approval agency, they should be giving the green light for the astrazeneca university of oxford vaccination to go ahead. and on the back of that, we're seeing a strong performance in that stock up about 5% in anticipati anticipation it could be a very big e67vent r europe in general and the
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developing world so all in all, a good positive start to the trading session for us >> astrazeneca up 4.6% thanks and one company looking to go public, qualtrics files for an ipo. their valuation would be up from the $8 billion s.a.p. paid for the company two years ago. in july, s.a.p. announced its plans to spin out qualtrics while keeping most of its ownership for a while. meanwhile parts of california are expected to face extended stay-at-home orders amid a holiday surge in coronavirus cases there. governor newsom announcing that the orders would all but certainly be stretched into the new year as he and officials a wait the release of new icu figures out today. orders for the greater
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sacramento and bay area were set to expire on january 1 and january 8. southwest airlines says it won't furlough any employees after president trump signed off on aid for the airlines as part of that $900 billion covid relief package under the terms of the aid, airlines have to keep all of their employees on payroll through march 31 and will have to call back any who were furloughed in october. american, united airlines which together furloughed 32,000 employees in october say that they will bring back those workers temporarily. so good news there now to washington where the house has signed off on a measure to boost stimulus checks up to $2,000 the measure now heads to the senate and chris pollone is live in washington with what happens next >> reporter: yeah, also the house of representatives voted to override a trump veto for the first time in his presidency over a key military spending bill the question now as whether
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senate republicans will back those bills or the president a bipartisan rebuke for president trump. >> the yeas are 322, the nays are 87 >> reporter: more than a two-thirds house majority voting to override his veto of the national defense authorization act, the first time it has happened during the trump presidency mr. trump said he vetoed the bill because it would allow for the renaming of military bases which now honor confederate military leaders and because it fails to strip liability protections from websites officer what their users post. >> the bill is passed. ri >> reporter: it followed a close vote in the house to increase stimulus checks from 600 dollars to $2,000. a move pushed by the trump and backed by the democrats. >> this is not a stimulus. it is not. and it does nothing to help get people back to work. >> reporter: it sets up a test for republicans in the senate who generally oppose increasing
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the stimulus checks. >> i am telling donald trump don't just talk about it, act. these senate republicans have followed you through thick and thin get them now to ankts and support the $2,000 >> reporter: but the no guarantee mitch mcconnell will even bring the measure to the senate floor for a vote. and vermont independent senator bernie sanders says that he will object to block any vote on the military authorization act veto override until the senate takes up increasing those stimulus payments the current congress term ends on sunday. >> busy day ahead. chris, thank you and when we come back, an intensifying crackdown by china on alibaba, what it could mean for your global investments next year and the best of the best when it comes to the dow in december, we'll dissect some of the biggest winner and what easing of covid
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restrictions could mean for the swi wine and spirit industry i'm made to move. but these days, i'm not getting out as much as i'd like to. that's why i take osteo bi-flex. it helps with occasional
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welcome back we have carved out some of the biggest stock winners this month and they are not all from the stay-at-home sector. etsy is up about 12% in december
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and shares have more than quadrupled this year etsy and other online marketplaces have been life line to small businesses during the pandemic as they shift to focus to online sales. but shares of disney also up you more than 20% this month and hovering near a 52 week high, that would are seemed unthinkable in this year, but the stock has gained since disney overhauled its media entertainment business to focus almost exclusively on producing streaming content. and pvh is also up this month. reporting better than expected earnings earlier this month. but the company also said that it expects fourth quarter revenue to decline as the pandemic will continue to hurt results. one stock prompting all sorts of questions, alibaba. the stock is rebounding today snapping six straight days of
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declines however analysts say the gains could be short lived given that chinese regulators have called for a shakeup of their mobile payment and consumer finance business and group they also warn other large tech companies could come under more scrutiny casting a dark cloud over that sector let's talk more about this and the environment for stocks going into the new year. joining piece is james lu, fo d founder of research. good to see you. >> thanks for having me. >> so i think one of the big questions, what we're seeing with alibaba, the scrutiny it is facing from chinese officials. is this the beginning of more to come >> yeah, a lot of the scrutiny we're seeing in china right now is a reminder that there are political and social risk when investing in many of these
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regio regions. in the long run these challenges are exactly the reason that emerging markets generally command risk premium over developed markets like the u.s it hasn't really played out the last decade, but investors who are able to basically ride out those types of risks and also grow with the businesses that are growing very rapidly there, they can take advantage. so in the short run this is definitely a challenge, kind of a curve ball fortunately, we're seeing some of the regulatory hurdles here in the u.s >> so is this just the beginning of a wider shakeup and this is not the first time that we've seen the chinese take these type of actions. just a couple years ago, they went by insurance company hna and really pushed the firms to scale back their u.s. portfolio and actually resulted in hna to sell some of its hotels that it owned here in new york so i'm you're yus if we coucuri could do the same thing.
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>> yeah, i guess the challenge with deciding whether or not this is actually a trend is that this one does seem to be somewhat politically motivated to say the least and also, you know, you just don't know what will happen with some of the largest companies there that do have large financial and also social standing so as of right now, it looks like they are targeting these companies due to size and also social importance. that we expect to continue so it looks like that is something that will continue, it is very much in line with what they have done in the past it is hard to draw a long term conclusion i think for overall investors especially u.s. based investor, they do hahave larger stake in china, but that being said, still just 5% of the world index. so while individual micro concerns like there are important, in the long run, it is still the reason that vesting
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in emerging markets commands a risk premium and why investors should stay investing in those areas. >> and maybe it gives light to other companies that found it more difficult to compete given the shear size and scale of alibaba. but what do you also think this means for jack ma? i mean, he is not only the founder of alibaba and ant, but sort of seen as the ambassador for chinese businesses, second wealthiest person in china where does this leave him given the pressure he is facing now from chinese officials >> so i can't speak to what it means for him specifically, but i think what it does highlight is the difference between the way we like to kind of pin stories in the u.s. versus china. in the u.s., the government has not gone after specific individuals especially founders of large successful companies. they usually go after the companies themselves through regulation and antitrust
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measures like we're seeing today. and so i think that it just highlights yet another political and social risk of large companies in china, and just more consistent measures that we've seen over the last 5 to 10 years of how government likes to crack down on some of those he countries. >> and so if not china, where should investors splook what sk >> the question is around covid-19 basically in the end it looks like it is about two lost year he is of economic and global gdp growth. right now the current forecast both economically speaking is that by the end of 2021, we'll generally have bounced back. so both internationally and domestically, we're already seeing a broadening out of performance. so those areas, those sectors and those countries that did really well either during the middle of the pandemic or as soon as things start to open up, we're already seeing that shift a little bit into other areas. so in the u.s. specifically, it
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is away from tech sectors for instance to sectors that were harder hit by covid-19 and we think that that will probably continue into 2021. it won't happen smoothly because even with the vaccine, even with stimulus, there are a lot of fits and starts, a lot of questions there. but we think that is the shift that will take place over the next two years as economic growth returns to pre-covid. >> thanks, james liu still on deck, how trading cards arebecoming a hot commodity as people look for alternative investments. that story is up next. today's big number $70.5 billion. that is the total amount of online purchases that are expected to be returned according to research from cbre. that is up 68% from last year.
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retail traders have increasingly taken an interest in diversified assets. and we're not talking about cryptocurrencies that includes another childhood favorite, sports trading cards and eric shemi has the story. >> they can't go to the game,
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they can't do anything but watch it on tv and now in the pandemic, it created a focus on it >> reporter: former card collectors are getting back into the game dusting off their old sets and a new generation of modern collectors is emerging looking for quick flips and long term investments >> the big difference between trading cards and, you know, a lot of commodities is the fact that there is a finite amount of supply >> reporter: people are changing the way they price cards, similar to rare art and wine but it is not just bitcoin and gold coins seeing price spikes trading cards are becoming an asset class that could be worth big money. >> if you took the top 500 trading cards, they beat the s&p 500 by 153% over a decade. i mean that is not a small sample size. >> reporter: two weeks ago, a steph curry rookie card was sold for $611,000
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and giannis, $1.8 million. many collectors are putting togetheriois of cards and the industry is expected to have a value between $1.5 billion and $2 billion >> they just increase in value over time particularly if that player performs in a championship for example, those cards continue to increase in value. >> reporter: and the shop owner from the store says even low budget collectors can get started buying cards for less than $5. but unique limited collections with specifically numbered cards, those can easily range in the hundreds or thousand of dollars. >> fascinating story, this resurgence of interest i remember being a kid going to the local shopping mall with my friends or cousins and you would buy that pack and hope that you get a michael jordan i'm curious now, are there now
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more traditional digital marketplaces where you can trade and buy and sell cards >> reporter: oh, definitely. so for one, like what you mentioned in terms of opening the cards, that is becoming a huge thing on youtube and social media. everybody is video taking look at me buy this and let's open it up so that is how they are hitting the more than generation and there are a lot of companies, startups included, where you can buy and sell these cards, but you never actually take physical ownership of them. they all exist almost like buying stocks on an exchange you don't ever get that stock certificate. it lives electronically and you buy and sell it in the marketplace that way >> and what are your thoughts on this big demand for cards also coinciding with the big run-up in bit coin and also gold and silver, which have had a really good run this year >> reporter: it is all part of that all part of this push to hard assets so you want something that is not a u.s. dollar, you want something that in fact height do better as the dollar gets
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weakened these things are not correlated to the stock market, sopeople are saying if i'm not getting any interest rates or dividends, i can put it in these things one interesting thing with these cards, panini the ceo was saying that they are starting to put the pricey commodities into the card you can get pieces of gold, silver, diamond, platinum in the card so they are trying to get a little bit of that market too. you buy a card, you get commodity with it. >> and that may inspire me to get out there and look at those cards or find the ones i have in my parents' attic. eric, thank you for joining us great story. and still on deck, amazon seeing business boom with one of its lesser known divisions, how surging sales are helping wine and spirits and what amazon is doing in the middle. and check out the premiere of sweets of dreams with marcus lemonis, he travels the country seeing what fuels the culture.
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premieres tonight 10:00 p.m.
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open and boeing is preparing for its 737 max to return to service. phil lebeau previews the key play and hbo max and disney plus getting holiday cheer and they rack up new subscribers.
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it is tuesday, december 29, 2020, and you are watching "worldwide exchange" on cnbc ♪ sxw welcome back here is where markets stand right now. futures pointing to a higher open with the dow up about 171 points, hopes of an expanded stimulus package and positive vaccine trials fueling the rally. we saw major averages climbing to fresh record highs yesterday, seeing gains of about half to nearly 1%. and the reopening trade got love yesterday. hotels, casinos, cruise lines, airlines all ending the day higher and the best performing stock yesterday was carnival but it wasn't gains across the board. the russell 2000 had its first
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two day losing streak since the middle of last month however the small cap index is still up nearly 20% for the year let's go worldwide now stocks in asia closing mixed, we did see alibaba rebound. and the nikkei was the big winner surging more than 2.5%. its highest level since august of 1990. meanwhile taking a closer look at trade in europe following the lead of wall street's record highs yesterday, it is really green across the screen. the ftse 100 getting a nice bump there after the brexit deal was closed before the holiday weekend. stocks higher by 2.3%. as 2020 comes to a close, big winners in the overseas markets have been china. india and south korea also up. all three up about 14% or more this year thanks to stimulus a weaker dollar also playing
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into the story as well but did you know the worst performing global currency this year well, look no further than the argentine pay s peso, covid-19 posing a big threat to the company exacerbating the challenges that the government there is facing. already a tight budget add to that, inflation concerns and the government that is still carving out its economic agenda. and you can sk secan see down 4 this year. now to some of the other top stories including a holiday bump for hbo max. they added 554,000 users between friday and sunday with a record 244,000 downloads on sunday alone. the jump coming amid the release of warner brothers wonder woman 1984 on the app. according to a market research firm, total to sub be describers now stands 12.6 million. disney plus also getting a christmas boost. according to sensor tower, it
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added 2.3 million new users, that is a 28% spike from the prior weekend amid the release of the new pixar film "soul. and according to financial times, amazon's ad business is on the rise am mid the ongoing pandemic the paper citing data saying that they will make $21 billion in revenue this year, a 47% yump from a year ago, helping it chip away business from advertising dominant players like google and u.s. air travel also seeing big numbers allege mmid christmas holiday, tsa said it screened 3450nearly 1.1 million passengers sunday. and that is after dr. fauci warns that it could fuel a surge in new covid cases sticking with air travel, a big day for boeing as its 737 max jets resumes commercial flights nearly two years after a
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pair of deadly crashes forced its grounding. phil lebeau is live in miami where the first plane will be taking off in just a few hours phil, stakes are high. >> reporter: they are. but i think most people at american airlines as well as at boeing, they are ready to get this day behind them american airlines flight 718 will be leaving here from miami later on this morning. a little after 9:30. it goes up to new york laguardia. for american airlines, they have been targeting this day really almost from the beginning of december that is when shortly after the faa ungrounded the 737 max, they then did a media flight where they said to reporters look at the changes that have been made, the pilots have gone through enhanced training. and as a result this is the first commercial revenue flight of the 737 max here in the united states in 636 days. what we're seeing with american is what we'll be seeing with three other airlines over the next several months. so you look at the airlines that
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are flying, the 737 max, that have it in the fleet or will have it, you have american starting flights today, united february 11th, and then alaska and southwest have both said that they will start flying the max in march for american airlines, it has 24 max planes in its fleet as you take a look at shares of american over the last month they are not all immediately flying today, they will gradually feather these into the system over the next several months as for boeing, this has been a big month for the 737 max. remember, they have logged 98 max orders, new max orders this month, after 11 straight months where they lost more than 1,000 orders for the 737 max the hope at boeing is that this is the beginning of saying okay, it has bottomed out, now we can grow orders for the 737 max from here and again, that first flight, it starts a little after 9:30 this morning, that is when we'll
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board and come up to laguardia >> and from what i understand, you will be on the plane anything out of the order, will passengers be aware how big of a moment this really is for boeing >> reporter: they're aware look, when you are being ticketed, it says when you get your boarding pass, 737 max 8. that is the plane that we'll be boarding most of the people on this flight my guess is, they are what we would call ad geeks. they want to be on the first flight also probably some quote/unquote regular customers. we'll be talking with some of them once you get past today, i think that the hope for american airlines is that this is just a normal flight and this is the beginning of daily service for the max between new york and miami. >> we'll be looking to you for updates throughout the day phil, thank you for joining us and for more on the return of the 737 max and what it means for boeing, let's bring in john revie from aerospace and
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defense. pleasure to have you on. from an investor point of view, what will you be looking for in today's flight of the 737 max? >> the point here, there was a certain amount of inevitability to the max flying again. so the point is making sure that it goes back in the air without a hitch and all systems have been redeveloped properly. and that is probably going to be the case here and over time it will replace the ng and that should be done with it so you want to see a plowleflaws reentry which is a challenge, but clearly a positive day for boeing to get this back flying again in the united states >> boeing has had its fair share of headlines the grounding, dennis muilenburg, they brought in dave calhoun, it has been nonstop
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how big of a moment is this for beg a boeing and its profit picture? >> well, quite frankly, as i said, getting it back flying in the united states was a certain amount of inevitability to it. so sentiment-wise, i think this has been a long time coming but i emphasize a long time coming the problems and challenges do persist thereafter still almost record production rates ramp up the next year plus, inventory to clear out, 787 production to move and also a portfolio to readdress in terms of competitiveness versus airbus. so i'd say that there is still a lot of wood for boeing to chop this is one step along a very long path. >> and also the challenge of getting travelers comfortable. there was a recent study gauging interest from the public on
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whether they feel comfortable getting on a 737 max how did you see that playing out? >> to some extent i think that the bigger news of covid which clearly had a global impact on travel is somewhat overshadowed the specific max issues. almost hard it believe that it has been as long as it has been that the max has been grounded so i would expect that folks would over time grow increasingly comfortable with the max if it is proven to fly well and reliably in the air and you would think that after this long of a grounding and this much work that has gone into rectify it that that would indeed be the case there could be some intransigence mom customers around flying the max initially, but quite frankly, that period coincides with intransigence of customers to fly initially given the state of the world with the virus. so i think that it will be hard to pull apart those two items. when you see a broader recovery,
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it could coincide with the time that folks generally are more comfortable in general flying on a max. so i think that you will still find a lot of folks will end up flying on the max. >> and following this flight, you have united saying that they will plan to do it in the next three months, southwest in the spring to bring the 737 max to air. what does it mean for some of the other suppliers? general electric have their flies in their engine. >> the challenge with the max grounding for the entire time of the grounds since march of 2019 has been creating some production stability in the system and clearly there has been a lot of dynamics around there only exacerbated by covid so getting the plane certified again is a good step to get some certainty for the airlines to start to help clear the inventory which will help raise production rates which is good for the supply chains.
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i think one of the challenges however is getting the plane flying, that is great, but pre-pandemic, the case was we need as many planes as we can because demand is insatiable for these planes post pandemic -- or i should say in pandemic, there is not as much demand for airplanes. so what was strictly a supply issue pre-pandemic is now a demand issue so you still have to think about the demand issue in aerospace, in travel. those pieces have to fall into place. >> and the latest tsa numbers demand certain seems to be climbing here for air travel john, thank you for joining us breaking down today's big event with boeing. and coming up, pivoting am hid the pandemic, the changes the wine and spirits industry has had to make to stay afloat amid continued lockdowns think about virtual tastings but first, some of the other top stories. the house approving a bill to
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increase the second round of stimulus checks to $2,000. the republican held senate is not expected to pass the measure. though chuck schumer says that he will push for a vote. the trump administration bolstering its order barring u.s. investments in china. the treasury department releasing guide on tance on the november executive order and the fda issuing new rules for commercial drone use for small package delivery
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live pictures of times square where the ball will drop in two days. but let's look back at some of the biggest stock movers of the year, the work and home space. zoom became everyone's go-to for video conferencing and chats, up nearly 420% this year. peloton continues to be in high demand by consumers and investors, up more than 430% the stocks are going though in different directions this month. zoom is down more than 25% in december and it is off about 40% from its highs peloton continues to post gain, up about 30% this mocht. t month. the company announcing a deto
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buy pre-core investors seem to like that move and it has been a tough go for businesses big and small during the pandemic this year. many have had to pivot quickly to a digital strategy. adapting to lockdown measures and other local, state and national restrictions. one sector that has managed to thrive, wine and spirits online sales of alcohol in the u.s. are expected to grow by more than 80% this year to nearly $5.6 billion. in other countries such as france, germany, china and australia, ecommerce sales for spirits are forecasted to rise about 40%. so let's dig into this john capon, chairman of acker wines, operating since 1820, joining us now a pleasure to have you on. a lot of things consumer couldn't do, attend concerts, go to a movie theater, sporting events, but one thing they could do drink at home how strong was demand? >> for us, we've had our best
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year ever. we feel very fortunate and very blessed, revenues were up 33% this year. we sold over 122 million at auction. we do wine auctions and wine retail retail was over 20 million so we've had a record year, $143 million in sales and the best year ever for any wine auction house. >> how have preferences changed because of the pandemic. are consumers opting for wine that is priced less than $30, or are they actually going to the more higher end names? what are you seeing this year? >> we specialize in the fine and rare wine market, the commodities of the world, the wine so that market has been as strong as ever and sales and demand have continued to increase especially with people at home looking for fun things to do. and wine is a passion for most people, also a great investment, but it is also something that they enjoy
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and with people kind of not going on vacation, not traveling around the world, not going out to fine restaurants, they have all this additional income, and a lot of them are putting diditn into wine. >> and for those who didn't though wine so well, how do you make them feel confident making the right purchase online in. >> we provide a lot of information, we have a great sales force and sales team they are great wines whether $10,000 a bottle or $10,000 a bottle and so just dealing with somebody that you are confident with and we're america's old es wine shop. this is our 200th anniversary. so we can provide that comfort to those that shop with us >> and virtual tastings, how did that work? >> basically we did what the rest of the world did and got on zoom we have a very proactive philosophy of opening up a lot
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of wines with a lot of clients of course we couldn't do that, so the idea came up, hey, let's do these tastings on zoom. and before you know it, we were having some of the greatest wine makers join you us in the world people could tune in and open up their own wine and we would all drink together two or three times a week and it became a great way to connect and stay connected with our clients >> earnings reports from some of the bigger alcohol players really talked a lot about how millennials and gen z are gravitating toward hard seltzers is that competition to the wine business >> no, the people and producers that we deal with, the real commodities in the world, like these names have been around for hundreds of years. and people will always want the
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best no matter when times are bad or times are great, people want the best that there is to offer. and that is what our specialty is >> good or bad, you still want a good drink john, thank you for joining us today with a look at how the wine and spirits industry is fairing. all right. on deck, stocks look to keep the records coming but our next guest says that turbulence could be lurking in the new year and if you haven't already irks s , subscribe to our new podcast
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turning back to the broader markets, stocks looking to keep the momentum going as futures are pointing to a higher open, this after all three major indices hit new record highs yesterday. but our next guest says a quick correction could be waiting in the new year nick fisher is joining us. good morning to you. why do you think the correction is in the cards and what will take us there? >> so right now the market has a lot of momentum, the breadth has widened out. and we've come a long way since march. so when i look at a few things, s&p 500 is about 17% above its 200 day moving average look at thesmall cap stocks, russell 2000 about 33% above the long term trend. so there is room for the market to come down i'm not saying that we're
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essentially the bull run is coming to an end, but there is room to digest the gains we've made, consolidate and then make the next leg higher. and still some things going on in the market for the first half of the year that need to play out as we look into the back half of the year, the vaccine needs to come into may and june and then we need to essentially have a lot of good news play out for the eps number to be hit in 2021 right now the street is at 170 which is well above the 164 number that was a record number in 2019. >> we have come a long way in fact if you had told me back in march that we would be at record highs at the end of this year while millions of americans had lost their job, i would have said there is no way when do you think the market starts paying more attention to the real economy >> so that is a tale of two things main street versus wall street wall street tends to look at things 18 to 24 months out and discount those things.
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right now main street is hurting. small businesses are being destroyed by covid the jobs numbers that we're printing every week, 800,000, we didn't even see those numbers during the financial crisis. so there is a lot of wood to chop on the economic front to get those two streets to essentially come together and pair up. >> the $900 billion stimulus bill getting the nod from president trump seemed to be the catalyst yesterday what is this focus today as the bill heads to the senate and how much room does it leave the biden administration as they try to come up with their own economic policy when they enter the white house come january >> so the $900 billion package i guess you could pretty much say is signed and delivered. i don't think that that is not going to happen. that essentially helps us bridge the gap in q1 which the economic data was looking weak, consumer data was starting to roll over, the jobs data still not good the divided government that we'll most likely have after the runoffs in georgia means that we still have gridlock. and gridlock is not good when we
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have a pandemic xri iscrisis th we're still working our way through. as far as the biden administration goes, i think that they will be prone to be stimulative, but their economic plan is not as rowe growth pro-h trump administration was so there are pros and cons, but at the end of the day, no major changes will happen when we have a divided government so i still think that the stocks will still be a good place to be, specifically u.s. stocks in the near term. >> a month ago we were talking about how the georgia runoffs will be a big risk for the market, but yet with the market at record highs, it would suggest people are sort of ignoring that. why do you think that is >> that is one of my main things i'm looking for in january i don't think that the republicans lose both seats. i think the base case right now and betting odds are looking at about 75% chance that the senate remains republican so that looks like a split down in georgia and as i mentioned, that is more
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status quo >> looking to stock specific stories, boeing a big moment today with the 737 max going to with american airlines from miami to new york. and li looking at the stock, despite challenges, tsa suggesting that holiday travel starting to rebound and growing optimism about next year and what the vaccine will bring, where does this stock go from here now trading at $218 a share? >> i think boeing is one of those at the scene type of accident crash stocks where they were one of the best stories in aerospace for decades. and then all of a sudden the 737 accidents happened, they had to grounds the plane and then covid hit. so they were hit by a perfect storm. it will take years in my opinion for this sock to get back on to the free cash flow earnings trajectory that it was at. so at 218, it doesn't look like a great buying opportunity right here i would play the derivative play
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if production will really wrap back un. i like spr, they make the body for the plane. so i would look at that more than just boeing by itself >> do you have a top airline pick >> our number one aerospace play would be raytheon. so when they merged with united, you get their engine in pratt whitney, their after market products and then the defense business pays about 3% dividends. >> and we've covered a lot of ground, nate, priested edplease you on and airlines are a part of the story in pre-market trade with american air, you tunited, trad higher by about 1% that does it for us. "squawk box" is next
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good morning, pointing to more records at the open we'll get you ready for the final three trading days of 2020 the house siding with president trump to increase stimulus checks to americans, but the bill faces a tough road in the senate. we'll take you live to washington and alibaba shares rebounding after a two day 16% slide. we have the latest on china's regulatory crackdown and how ant financial plans to respond it is tuesday, december 29, 2020 and "squawk box" begins right
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now. ghcood morning, i'm melissa lee along with joe kernen and mike santoli yesterday we notched record closes for all three major indices and we're looking to build on those s&p 500 looking up 19 at the open, dow by 165, nasdaq by 55 taking a look at treasury yields, we do see them moving a little bit lower compared to yesterday. we have the ten year at 0.943% two year at 0.127% >> and the boeing 737 max returning to the skies for paying passengers today. american airlines will carry about 18


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