Skip to main content

tv   Closing Bell  CNBC  December 30, 2021 3:00pm-5:00pm EST

3:00 pm
the problem. >> yeah. that returns also creates greenhouse gases great report thank you. it's a boon for the buy nothing facebook groups. the producer got a bathrobe he didn't order and gave to a friend thank you for hosting with you. >> always a pleasure. >> "closing bell" starts now and sara is right over there. >> good to see you welcome to "closing bell." i'm sara eisen more green on the screen as we approach the end of 2021 >> why didn't you come here? i'm wilfred frost from new york stock exchange let's have a look at what's driving -- crossing a whole n river. nasdaq is out performing today a number of recent laggards
3:01 pm
seeing strength including neo and others and on the data front jobless claims below estimates 59 minutes left in the session. >> we have a big show coming your way we'll speak with jetblue ceo about the decision to cancel nearly 1300 flights through mid-january and president biden expected to speak this hour with russian president vladimir putin. we'll discuss what the tensions in the region could mean for the energy market. >> let's focus on the big story just mike santoli is tracking the market action. josh lipton is tracking chinese tech and seema mody with guidance on cruises. mike, start us off with the broader markets. nice steady rise. >> yeah. kind of a gentle lift. same percentage gain on the s&p
3:02 pm
500 as yesterday .7%. led by some of the relative laggards and a mean reversion playin the large caps and smal caps today the former facebook as well as amazon not performing well as the growth names at the top of the s&p 500 and chinese tech, spacs, recent ipos up a lot. seems like the liquidations perhaps finally run the course they want to take a look at the divergences in stocks in the same industry that have di verged this year look at this a 50 percentage point spread citi is poor performer probably due to business and geographic mix but when you get a new tax year and performance
3:03 pm
year for professional traders starting soon, maybe there's convergence that might be due. another one, amd versus intel. this is about intel really not doing anything in a strong year for semis. amd with the fundamental momentum much more expensive. intel cheap but a struggle see if that one is a value trap or has comeback point. pfizer versus merck. pfizer doesn't look expensive. really all about what's been happening lately and that -- those two stocks over time have tended to essentially normalize eventually see what that means going into next year for stock pickers. >> the best performer of the big banks is wells fargo
3:04 pm
but to that broader point of whether to get mean reversion or not nonconsensus calls the only other nonconsensus is pelotons of the world and there's continuing performance from microsoft, et cetera. >> yeah. that's fair to say i don't think that you've had a lot of people coming in to say kind the falling knives of those once buzzy stocks that lost the backing. i would say that energy seems like it's kind of consensus-y right now. also quality we hear that a lot go for the steadily profitable companies. doesn't mean it won't happen but it is worth keeping in mind. a soft rule of thumb i always recall is there's a thing going
3:05 pm
back years looking at the second best performing market in the sector sometime that is's a good performer. that would be real estate i believe. >> good pattern there. thank you. shares of didi looks to have a down day josh lipton with the details why the turnaround >> the chinese ride hailing app posting profits and stable market share and weak profitability with a $4.7 billion q4 loss and plans to go public in hong kong and delist after six months one of the worst ipos of the year but in the green today with chinese tech names, too. which begs the question will some of the names be better bets in 2022? back to you. >> thank you so much for that.
3:06 pm
cruise stocks as we mentioned falling after the cdc changed the guidance for travelers hi, seema. >> hey cdc raising the covid warning level recommending americans to not get on a cruise regardless of vaccination status following a rise in ships with covid cases on board hospitalizations are low royal caribbean said it's seen no hospitalizations from those contracting omicron and that's why the cruise lines are pushing back a spokesperson repping the big three cruise lines saying the decision is particularly perplexing considering that cases identified on cruise ships consistently make up a very slim minority of the total population on board far fewer than on land cdc says the infection rate on ships up 37% and the u.s. is 82%. not an apples to apples
3:07 pm
comparison stocks reversing early gains how will people respond to this new guidance from the cdc if cases continue to rise will health 0 officials implement restrictions that seems to be unlikely and given that hospitalizations are low and will have to track the numbers closely. >> what does the cdc see as the distinction with cruises versus an airline or staying in a hotel? is it that people are masked in closer contact or a ripe target with the news stories from the cruise lines >> this is such a great point and one thing people don't realize of all sectors within travel cdc has jurisdiction over the cruise lines and require them to disclose the cases and have restrictions and controls can you imagine planes telling
3:08 pm
us where people got infected you don't have that level of transparency within travel why the cruise lines, the cdc has that level of oversight and see the responses when cases start to rise. >> thank you so much speaking of travel, customers frustrate all week and today jetblue is cutting nearly 1,300 flights to mid-january we'll speak with ceo robin hayes of the challenges of omicron on the industry that's next here on "closing bell."
3:09 pm
3:10 pm
3:11 pm
3:12 pm
welcome back jetblue canceling almost 1,300 flights through mid january anticipating a tight workforce amid the latest covid wave since december 23, counting all carriers, more than 8,400 flights have been canceled due to a combination of bad weather and sick calls from crews. joining us now ceo robin hayes good afternoon thank you for joining us on short notice. >> thank you great to be on the show again. >> wanted to ask what the reaction has been from customers and consumers to today's forward looking announcement and the haphazard cancelations that have been necessary the last week or so. >> thank you clearly, we don't like canceling any time let alone during a holiday because so many people
3:13 pm
have been looking forward to the trip some people haven't been away for two years and what we felt given the really exponential increases in cases of our own crew members getting omicron over the last several days we thought it much better to a longer view of this and cancel to give the customers more options and time to make decisions about what they want to do. the 0 worst type of kcancelatio is that one that happens at the airport realtime and most disruptive type so our goal to try to avoid that as much as we can and give advance notice. >> it is interesting i understand that thought process and interesting timing coming just after the cdc changed the quarantine
3:14 pm
requirement from ten days to five presumably lessening the pressures on the workforce from here might you be able to come out of the cancelations sooner than thought? >> i think it's definitely going to help. a lot of our crew members once they have had covid do want to come back and unable to do so. but the size of the problem really is just the number of people contracting it. we are still in a very steep increase here in the northeast 75% of the crew members are based in the northeast and some departments seeing 200 to 300% increases in people calling out to what we expect so it's a very big number. >> we had this morning on "squak box" sarah nelson and this is what she had to say about the relaxed guidance from the cdc.
3:15 pm
>> i should just point out what the airlines was asking for was a five-day quarantine for breakthrough case and not vaccinated and unvaccinated people and they were also asking for a testing protocol before returning. this went beyond cdc is clear approximately 90% of the cases will not be infectious after five days we are admitting that there will be some entering the workforce and putting people in a position to come back before they're better and spreading the virus more. >> i wondered what your take was as if you take that as the letter of the law or adding further caution on what they say and the staff say "squid game" are they eager or ap
3:16 pm
apprehensive >> for those that want to stay off yontd thefire days they can do that. for someone who has really maybe been asymptomatic or mild cases and cleared up they want do get back to work with omicron it is different it is much more easily spread. most people it is milder the cdc has a very difficult job to do. they have things to balance but a thing we were concerned about being based in new york is that this has potential to bring society to the knees very quickly. if people can't fly, if the transport system can't move and doctor offices can't stay open,
3:17 pm
that is huge impact so of course public health is key to this but we haveto also make sure to keep the country open in a safe way. >> it is sara omicron is enemy one. i just wonder if you and the other airlines could have been more prepare jd the industry is under pressure to cut costs and i believe the ratio is coming down were you understaffed and und underprepared for this problem >> we came into a holiday period with similar starting levels to 2019 with a little bit less capacity. we went through thanksgiving we didn't cancel a single flight and the beginning of this holiday period we operated without a single cancelation
3:18 pm
what's hard to plan for is this exponential increase in cases that we have seen and ties into some of the trends that we have seen locally so i really think there's no way to plan for that adequately and there's a big increase to see day after day. a reason we wanted to take a proactive view is we know in the northeast near we will be in an upward trend or two or three more weekends. things are likely to get worse before it gets better. jetblue is hiring for thousands crew members we have a record hiring year next year and the company is growing very quickly. >> what about the revenue hit?
3:19 pm
as a result of the cancelations. >> customers have choices to make we offered an available flight so we have to see how many take those and canceling a flight they're entitled to a clear refund >> i wondered your view on mask wearing on board we have had comments before from the southwest ceo just questioning the need on planes has -- have you had that view and has omicron reinforced whether you think they're needed >> jetblue put a mask requirement in place first before there was a frael mandate and we believe it's important to give people confidence in flying again. i think the point that i think is better understood now is how
3:20 pm
well the air filtration systems on the airplane are and one of the -- indoors is one of the safest places to be and of course we want to get to a point where we don't have to wear masks but i think right now given with the spread in the community and making people feel comfortable then it's a requirement to stay in place for a foreseeable future. >> you have been canceling flights. what about passengers? have you seen a change in travel plans as a result of omicron >> we did coming into the holiday period as the case count came up. a lot of customers were getting covid. we saw some of that. we see interest in people making bookings looking beyond the immediate few weeks and we have
3:21 pm
seen this time and time again where there's a short term impact and then things recover pretty quickly once we get to a new normal. >> robin, hindsight of course is a wonderful thing but i wonder if you regretted launching the london route in august and delayed it until next year to prove more efficient and profitable for you. >> come on, wilf we were very excited we carried thousands of customers. people rave about the fares. considering how little we spent in the uk promote the brand we're selling tickets and covid gave us access to heathrow and staying through october.
3:22 pm
that option wouldn't have been there. no i just traveled back from london myself our airplane wasn't full but i was happy with it and i think we'll have a good 2022 with the london flight. >> we have been having testing problems here in the u.s. but do you think we'll get to a place where people get a rapid test before boarding a plane? do you want to see that? >> i think the challenge is in the domestic industry is staff you talk about over 2 million customers traveling every day and seeing how people can't get tested for more critical functions so i think everyone accepts the airplane is not a major source of transmission we have the hepa air filters and
3:23 pm
the air is recycled in and out of that cabin. i think we are concerned about how to manage the additional requirements it is challenging in the international market to sometimes manage that with covid document check the complexity and the scale of that domestic i think is -- will create more challenges, delays and long lines and more long lines in airports is probably not what you want in a pandemic. >> just to finish i want to go back to where i started. we have been through the waves of this pandemic and the impact and whether you feel like the consumers are on your side even if they had the holiday trip canceled applies to the peers and gone a step further to cancel today do you think people are
3:24 pm
understanding? >> i think no one wants their flight to be canceled. there's a recognition with omicron. if you live in the northeast we know a large number of people who had it or got it people are frustrated. they get -- no one wants to cancel the trip but i think they understand that you need to have healthy crew members at work if people are sick with covid we want them to take time off and recover and a recognition to be through this quickly and out the other side quickly and back to normal right through to literally a few days ago we were having a successful holiday season. there's been a disrupted few days for customers and sorry for that and will recover quickly and get back to a new normal. >> want to follow up on the
3:25 pm
safety of a plane. do you think it's safer on a plane than to be taking a cruise because the cdc raised the warning on cruising. essentially saying people should avoid it what do you think? >> yeah. i mean, i think the cruise industry is working incredibly hard to keep people safe i think they were very much a leader with new protocols and i think a concern that people had about aviation is how's the ire on the airplane? i think we have demonstrated as an industry in ways that it's safer than anywhere else. >> thank you so much for joining us today we appreciate it
3:26 pm
it was just the seven minutes that we agreed with the coms chief. i promise. >> how many minutes are we up to now? >> it was just seven just like the flight times always on time. >> good. great to see you i saw you on the tv this morning. i hope you get a bonus for double duty there. >> no, no. omicron is affecting all industries and a pleasure to fill in. thank you. happy new year. >> thank you thanks, sara. >> so much to get through today with him. ahead jared bernstein. next, solar stocks outshine traditional energy plays what's behind the pop when "closing bell" comes back. we are on track for corerd closes for the dow and the s&p
3:27 pm
3:28 pm
("jingle bells") ♪ (doors knocking and bells ringing to the music) ♪
3:29 pm
- [announcer] this holiday season, give the gift of grubhub. make fitness routine with pure protein. high protein, low sugar, tastes great. high protein, low sugar, so good. high protein, low sugar, mmm birthday cake. pure protein. find our coupons in sunday's paper. 30 minutes left of trading energy one of the worst performing stock but solar
3:30 pm
stocks are getting a pop pippa stevens with a look at the move. >> complete reversal with traditional names underperforming today but solar stocks shining looking to wrap up the year on a high note after the 2021 lackluster performance. invesco fund up today. others leading the gains sun power among the u.s. based companies getting a lift the group is still down more than 20% for the year but some betting the selling is simply overdone jpmorgan said it had the highest level of growth for the group in ten years of covering the space. big moves for ev stocks today, as well. this is boosting the broad clean energy complex with the in vesco
3:31 pm
clean energy fund up back to you. >> thank you. still to come, could the year's biggest tech losers be poised for a comeback next year? as we head to break a check on bonds. yields pulling back a bit. above 1.50 on the 10-year though
3:32 pm
3:33 pm
3:34 pm
just under 30 minutes left of trading dow has just gone negative
3:35 pm
time now for a cnbc news update with rahel solomon >> here's what's happening at this hour. new covid cases in florida set a record for the second day in a report cdc saying the state has 78,000 new cases today. covid hospitalizations in the state topped 4,400, the most in two and a half months. federal health officials urging nursing home workers to get the booster shots. a quarter have, well below the national average the cdc said covid cases among those workers is up 80% in the last week. mayor adams said he'll keep the covid plan and focusing on more new yorkers vaccinated, supporting hospitals and
3:36 pm
improving safety in schools. back to you. >> thank you. council of economic advisers member jared bernstein gives us his economic outlook for the new year sales are down from last quarter, but we're hoping things will pick up by q3. yeah... uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh... you alright? [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. get e*trade and start trading today.
3:37 pm
3:38 pm
3:39 pm
("jingle bells") get e*trade ♪ (doors knocking and bells ringing to the music) ♪ - [announcer] this holiday season, give the gift of grubhub. today's initial jobless claims report showing numbers close to the lowest level in 50 years. for the week ending december 25 jobless claims coming in at 198,000 compared to estimates of
3:40 pm
205,000. that is good new just let's bring in president biden's council of economic advisers member jared bernstein jared, great to see the numbers come down for americans filing for unemployment claims and it makes sense doesn't it if companies have trouble finding workers. how do you interpret the data? >> as evidence thatwe are into one of the strongest ever jobs recoveries and i'm talking to you about this for a long time labor demand is so important president biden believes that's at the heart of people getting their fair share the number of americans filing is now at the lowest since 1969. so yeah. i remember that. i was 14 in 1969
3:41 pm
sorry. thank you for reminding me a year ago both a year younger over 800,000 new jobless claims filed each week. 6 million jobs up as you know. most of my first-year president in history we have strong demand and that's characterized by a lot of job openings and strong pressure in the labor market. >> growth estimates are cominging down as omicron spreads and starting to see it in the realtime data fire departments flight cancelations. having an impact do you worry about this progress that we have seen in the labor market >> we haven't shut down. the situation is so different than a year ago. over 200 americans vaccinated.
3:42 pm
70% full vaccinations for adults ready access boosters of 90,000 locations and the message is vaccinate, vaccinate, boost. that's integral to getting through this recent wave you are correct in '21 forecast. some of that demand is past q2 and the model forecast for 20222 is above trend and not seen anyone that isn't and a hope is that we're better to cope and we have did mechanisms in place to power through this and i think we continue to see strong demand though yes especially if there are a great deal of absences in january and february that could show up as a temporary bump there.
3:43 pm
>> jared, november saw a couple of key raw materials pull back in price enough that people start to say, see, it is not that hot inflation for too long, but seen them ramp aggressively this month are you worried? >> i think that when it comes to inflation i take it from president biden who says even a moderate amount of inflation is a challenge for working families trying to get by on a budget rural families to put gas in the car to get to work that's why we are doing more i have been in this business for a long time. public economics i have never seen an administration try to do more on the near term supply side through the trucking and port initiatives and it's not just
3:44 pm
the release of petroleum reserve. gas is down so there's some relief there the important message is that yes, supply chain snarl-ups contributed no question to the explanation we face and why we will be relentless to do everything to ease the price pressures. >> here's the problem. the outlook for next year is shaping up to be one of inflation and it is beyond the supply crunch. we are seeing it in the wages and the prices companies pass on you have inflation and the federal reserve is three interest rate hikes next and child tax credit is set to expire in january. i know you're trying to extend that you have this mix to see slower growth and higher inflation.
3:45 pm
>> yeah. this is an interesting question because one toggles between worrying of elevated demand and fiscal drag, monetary drag just as you suggested and omicron pushing the other way. if you look past that and equally importantly every forecast is the idea as the fiscal impetus comes off we know that household balance sheets are in strong shape having to do with 170 million checks that went out to people with a child tax credit that as you say very strong in '21 and will fight for that and keep fighting for that '22 to keep that expansion going and so household balance sheets are in a position to hand the baton off from the kind of public sector fiscal impulse to
3:46 pm
a private seblg or the growth driven scenario and as the snarls ease and maybe the elevated demand for goods over services normalizes then you get to a situation of inflation coming down next year. i don't think i have seen a forecast making that forecast. that's the model prediction. >> thank you for joining us. happy new year. >> happy new year. micron with a warning of china. that's inside the market zone, next
3:47 pm
♪♪ care. it has the power to change the way we see things. ♪♪ it inspires us to go further. ♪♪ it has our back. and goes out of its way to help. ♪♪ when you start with care, you get a different kind of bank. truist. born to care.
3:48 pm
small businesses like yours make gift-giving possible. now, comcast business has an exclusive gift for you. introducing the gift of savings sale. for a limited time, ask how to get a great deal for your business. and get up to a $500 prepaid card with select bundles when you switch to the network that can deliver gig speeds to the most businesses. or get started with internet and voice for $64.99 per month with a 2-year price guarantee. give your business the gift of savings today. comcast business. powering possibilities. (swords clashing) -had enough? -no... arthritis. here. aspercreme arthritis.
3:49 pm
full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools, and interactive charts to give you an edge, 24/7 support when you need it the most. plus, zero-dollar commissions for online u.s. listed stocks. [ding] get e*trade and start trading today. never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. get e*trade [ding] and start trading today.
3:50 pm
welcome back here's a look at the second hour of "closing bell." we'll talk about the call this hour between president biden and vladimir putin and what the tensions in the region mean for the energy market, especially european gas breaking down tesla's big recall of 500,000 tech portfolio manager to share names that could be heading higher in the new year and ceo of angie home services to talk about demand for renovations we have ten minutes in the trading day and now in the "closing bell" market zone mike santoli here to break down the trading day. today sylvia jablonski is back stocks are leaving steam dow and s&p 500 dipping into the red after hitting intraday record highs earlier mike, small caps remain firmly
3:51 pm
in the green up. nasdaq flirting with the unchanged line what are you watching into the close? >> yeah. it is a bit of a mean reversion day. right? the stuff that's weak is getting a bid. i wouldn't make a lot of the moves. the s&p is blipped above 4800 a couple times today and the prior days this week and didn't spend any time above there who knows if that means that's an area lock in? final trading day of the year is a net negative one so people probably know that i don't think there's a lot of decisive news driven moves going on today. >> sylvia, are you bull oish on near year? >> happy new year.
3:52 pm
this is a holiday. liquidity wanes but we have a strong economy ism numbers look good. chicago pmi, a weather vain for the materials for the country, positive today growth story 70% of gdp is consumer excuse me is spending. jared bernstein mentioned there's an epic amount of household savings. i think that there's a lot of positive sides to the market next year. >> chip stocks had a strong run and a company is warning of supply chain issues in china josh lipton has the details. >> micron is falling in the trade today. saying that covid related closures in a chinese city to impact the dram production and expects to meet most demand.
3:53 pm
checked in wedbush and said it could be a positive for the company. historically pricing matters more than volume if customers think there's a sh shortage coming they might pay more back to you all. >> josh, thank you so much your take on the space and micron >> i'm excited about the space micron and nvidia micron is a major player in memory and 5g to be part of the met verse and then nvidia with chip shortages but they have gpus to increase speed and part of the drive for ev. i think that the runway here is massively huge and on days like
3:54 pm
these these are names to buy on the dip and hold for five to ten years and think the performance is massive for the stocks. >> nvidia with gain for 2021 pot stocks are popping today after a dismal year. frank holland tracking the move. >> cannabis stocks are trading higher a potential for a salels bump from dry january dry thumb in the minnesota move. tilray up more than 4% a bit of a short lived turnaround for the industry. federal legalization remains unclear but stifle sees a good
3:55 pm
chance for the safe banking act to pass this year. wilf >> thank you jetblue canceling flights, no more than 1,000 through to mid january. anticipating a tight workforce amid the spread of omicron ceo robin hayes discussed whether he thinks the cdc cutting quarantine will help with the cancelations. >> it is going to help a lot of our crew members once they had covid do want to come back but they sort of been unable to do so. but the size of the problem really is just did number of people contracting it. we are still in a steep increase in the northeast 75% of the crew members are based in the northeast and in some areas and departments is 200 to 300% increases in people calling out to what we expect so it's a very big number.
3:56 pm
>> mike, this sector is up this month. it feels like if it's indicative of the roest of the market pulling back off the news the market moved past omicron. >> yeah. i wouldn't say it's 100% in there but absolutely the case the market assumed this is going to be an accelerated version of other waves. not just because of the modest severity but how fast it moves and cycling through the population so quickly. you're able to see the day-to-day air traffic numbers and not given way that much and below the highs in general on the airlines but a modest move to november pullback and picked it back up. >> sylvia, i asked about the
3:57 pm
revenue impact to robin. are investors right to look past the short term hit for the airlines on the problems and the strong demand on the other side >> absolutely. this goes into the idea of the diversified approach you want access to the economically sensitive sector. it works out with normalcy from covid. back in the ecosystem. a lot of airlines like delta, united general rate a good amount of revenue from international travel and stopped up to november reopening up and hearing the cancelations and you have to think that the revenue generation isn't going to be there this quarter and you can dollar cost average in i don't think it's fully priced in i think there's good room to run in the stocks well off the 52-week highs.
3:58 pm
>> thank you for joining us. >> thank you happy new year. >> very happy new year to you, too. mike, noticeable leg lower over the last hour but sharply up this week and this month. >> yeah. again, i wouldn't make a tremendous amount of it. built up a cushion on this week so it seems like more or less staying in the record high zone. actually decent breadth in the market today and case all day. it is eroding with the indexes a little bit started positive volumes on the new york stock exchange. would also take a look at crude oil and it's really emblematic of charts that reflect reacceleration of the economy. reflation trade. crude captured half of the decline from 85 down to 65 but a
3:59 pm
lot of charts have this shape. bank index stock looks like this industrials. we have not gotten back to the point of recent optimism but in a comfortable zone so there's not stress implied in the macro outlook. volatility index inching lower got below 17 16 would be relatively low naturally we have calm markets but on alert of a good headline 5% pullback several weeks ago and after echos of that are in the market, too. >> woe are looking at session lows first decline on the dow in seven sessions
4:00 pm
proctor and gamble is a drag on the market some winners -- some losers like disney adding to the declines. real estate the best performing group. the nasdaq down. wilfred? ♪ welcome to "closing bell. i'm wilfred frost along with sara eisen and mike santoli. coming up this hour, stealth tech plays the head of the jacob internet fund with the names he likes heading into 2022. plus could tesla's recall putt the brakes on the rally? let's bring in nadine to join
4:01 pm
the conversation i'll come to you first just on your take as we stand one trading day left of the year a little bit of a pullback and a resoundingly strong finish to the year, december up 5% for the dow and s&p. >> you're right. as i wrote in the notes this morning to the crew, if you had an up day today i thought of it as a gift. options attractively priced. we trimmed high beta positions yesterday i was buying treasuries today the was -- russ plus h having defensiveness in the portfolio. >> we don't get people coming on saying they buy treasuries everybody hates treasuries inflation is high. why are you adding
4:02 pm
>> sure. so what you have to look at is what's happening next year from the macroeconomic perspective. what will happen is growth of gdp to desell rate and we believe the math also shows that the growth of inflation will deaccelerate and the fed's not able to continue to hike up rates because it won't have a data behind it and treasuries do well more safety securities do well and might have a couple months where you can have tech run and other positions run but redding boo the new year we want defensiveness in the portfolio before everyone else figures that out. >> looking at the poierformance year to date.
4:03 pm
>> total returns of 10% last year after that big pullback around covid prior year to 30%. you push 30% this year you have doubled in three years. it is obviously a fairly rare streak of three conservative years of that level of return. sometimes you are going to have something that's more challenging of the pace and rhythm of how the market flows and obviously below the surface we talk about no index level correction almost every market had a rough patch out there and i think you could balance it out and say it's probably a little too aggressive to go up another 30% next year but it tends to be measure likely than you're up than down even after a nice run like this. >> nadine, of all the bond-like
4:04 pm
defensive sectors, utilities, consumer staples, all doing well this month and underperformed for 2021 what is your favorite for next year >> sure. you make me trade today i would say wait because a lot of things were bought today and we like real estate but pay attention to leverage you want companies maybe less leveraged or go with an etf like the xlre a month ago trading at a high volatility premium paying a ton for production. i would like to see it closer to the 4950 level our trading trang is that until 5225 and bullish short term and intermediate term and those posi positions tend to do when rates
4:05 pm
have decelerating growth they weren't winners but expect the gains to extend into 2022. >> people piling into energy at the moment with various crises pubbing oil prices higher. what are you doing there >> we trimmed this week so it's had a big bounce back after the omicron scare and see oil volatility ovx over 40. not over 50 anymore but over 40. you have to be careful it's got maybe 1.2 upside to downside that's a fair fight. if you made money it is prudent to take some off the table omicron may delay reopening a little bit but if you have secrets on energy prices we take it as a gift and say trim some
4:06 pm
positions. >> thank you for joining us. some contrarian calls there. we appreciate it and happy new year. >> thank you. cruise stocks sinking after the cdc increased the travel warning. after that recent surge in positive omicron cases on board cruise ships joining us now is patrick scholes. you can debate whether it's fair or not for the cruise industry which they are pushing back heavily. what do you think is the impact on bookings and the consumer >> it is unfortunate that the timing with what's called the wave season, especially for cruises for next summer in alaska and the immemediterranea.
4:07 pm
some investors hoping that next summer would be really the return to normalcy heightened risk that bookings may suffer. >> are you getting that from channel checks too short term notice? i feel the biggest challenge is people have come through and takes a big return to major infections on board to change sentiment. >> i have been hearing weakness for the winter season and that really unfortunate kicked off the day after thafnksgiving with the omicron announcement >> arnold donald of carnival was on last week with us and expects to be back to full capacity by i
4:08 pm
think june of next year. is that going to happen? >> oh, i think the capacity will be back. that's not the issue you have the ships sailing how many people are going on them and the price that means there's a lot of birt births or beds rooms to fill hopefully we'll get the customers at the right price the news doesn't help with the bookings, put it that way. >> will this group trade as one or do you have a clear preference between them? >> they have been historically trading pretty closely to each other. i don't have any buy ratings but it would be norwegian if i did certainly skews to an older clientele and more likely to be
4:09 pm
triple vaccinated. some luxury ships are smaller. people like that and tend to be on average a higher price point and that is doing well and taking one if i had to pick i have a neutral rating on norwegian and would pick it out of the three thank you. >> why don't you have a buy rating on them isn't there a big recovery play on the other side of omicron >> i thought things got ahead of themselves too quickly there is a deep recovery but as we see today everything kind of just keeps getting pushed out. i worry it is not a straight line recovery. had optimism and investors where hey that we are in the clear we see with omicron it is not great and maybe we shouldn't be attaching peak valuation
4:10 pm
multiples to next year's earnings given that risk and that's not something that i do so it's -- yeah. this industry is going to survive but i'm not going to put a peak valuation multiple on there to justify a buy rating. >> there's any long term potential damage being done here the longer this goes out now two years. ships were the poster children of how this was spreading. >> again depends on how long if covid issue lasts. i have found that consumers forget very bad news in two years. we need about two years in the clear where covid is behind us for travelers to forget this and with the cdc news the clock
4:11 pm
starts over again. eventually we get back to normalcy and takes two years of normalcy before people forget and we are not there. >> definitely. patrick, thank you for joining us. >> thank you. this is the second hour of "closing bell. we'll talk about the potential impacts to the energy market as president biden speaks today with vladimir putin. later shares of parent company of angie's list down about 30% and asking the ceo if he had plans to renovate the business w we are back in two minutes on "closing bell.
4:12 pm
every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required.
4:13 pm
see if you can save by switching today. comcast business. powering possibilities. president biden and russia's vladimir putin holding a call this afternoon after russ's request. ylan mui is here with the latest. >> the call is going on for 40 minutes. no word whether it's wrapped but
4:14 pm
we expect a detailed readout from the white house and the kremlin because as you said it was russia who requested this surprise conversation. the two presidents just spoke by video call a few weeks ago and top officials are scheduled to meet next month. a senior white house official said that president biden plans to emphasize that there is a diplomatic path to de-escalation and that the u.s. will respond if russia advances the u.s. is working on sanctions. biden threatened economic consequences like putin has never seen including blocking access to the financial system or measures against individual oligarchs. the world will be watching how the white house approaches these dell katd and difficult negotiations wilf, experts say china and iran could exploit a signal of
4:15 pm
weakness by the u.s. >> thank you we'll discuss what those tensions in the region could mean for the energy market pavil romanoff joins us. thank you. do you expect not just the tensions but do you expect europe's energy crunch to be worse before it gets better? >> there is a direct link between record nachltural gas prices in europe and the geo political conflict with russia there's a pipeline built and supposed to supply the german market the new german government that came to power a few weeks ago is adamantly opposed to starting the pipeline and assuming that that pipeline remains offline that will limit the -- russia's supply of gas to europe. even before that, there's already been a reduction in
4:16 pm
russian supply going into europe again as part of a broader sanctions tug of war between the two sides. but nord stream 2 is a key question by the way, this is not subject to any kind of veto or even decision by the u.s. administration this is entirely a matter between germany and the russians. >> is that therefore the key determining factor of energy prices in the u.s. and europe? >> to clarify, we are talking about natural gas and the price in europe is at record levels. that is not the case in the u.s. because we don't buy russian gas or anybody's gas the u.s. is an exporter of lng
4:17 pm
with oil price we watch omicron on the finance side. we are also watching needless to say what happens with the nuclear talks with iran. there's another geo political issue. nothing to do with russia, however. we are also -- we will be watching how opec and russia as part of the opec plus coalition are going to be bringing production back online towards the middle of next year. nothing to do with europe in a direct sense right? but for natural gas that nord stream 2 project is the key thing to watch. >> on oil prices, you are expectinging crude to finish next year at $80 it is impork to predict and seems like by the forecast you expect a boon to hold and higher
4:18 pm
prices is that? >> demand recovery is big one, yes. even with very strong postcrisis recovery there is still some covid impact particularly you just talked regarding the cruising industry. names well below prepandemic levels assuming the pandemic is largely in the rear-view mirror demand should be stronger than today. supply will also be higher because opec is normalizing its output levels but with a lot of capital discipline on the part of private sector oil companies all over the world we are going to need the barrels from opec to keep the market from remaining undersupplied because we have been undersupplied throughout the past year. >> let's get some stock picks, bloom energy is a favorite.
4:19 pm
>> yeah. going back to europe, europe is not only becoming less dependent on russian gas, europe's prying to phase all fossil fuels altogether it is more aggressive than anything biden will do in washington so bloom energy has a fantastic opportunity to play the green hydrogen story in the european market. europe has the most ambitious green hydrogen targets this is to say, hydrogen without using natural gas or any other fossil fuel but electrolysis >> it is down over a year. maybe an opportunity there thank you for joining with us the forecasts. up next tesla recalling nearly 500,000 models today. what it means for the stock straight ahead plus the tech sector seen
4:20 pm
significant gains over 2021. some underthe radar picks to watch heading into the new year. and the ceo of angi joins us when "closing bell" comes back today, business is a balancing act. you want your data to be protected and secured. and your customers want seamless and easy. with ibm, you can do both. your company can monitor threats across your clouds,
4:21 pm
address all those regulations, and still create all new experiences. trustworthy ai powered security. that's why so many businesses work with ibm. ♪♪ ♪♪ ♪♪ ("jingle bells")
4:22 pm
♪ (doors knocking and bells ringing to the music) ♪ - [announcer] this holiday season, give the gift of grubhub.
4:23 pm
tesla recalling hundreds of thousands of its model s and model 3 car just the company citing trunk issues saying there's risk of damaging the car's rear view camera joining us is laura cadalodni. help us understand the recall and what we are used to seeing across the industry. >> recalls are fairly common in the autos industry this win is pretty comprehensive for tesla. the recall effects about 360,000 of the model 3 vehicles and almost 120,000 of the model s vehicles and those model s cars
4:24 pm
produced back to 2014 and model 3 vehicles produced back to 2017 there are two separate issues here with the model 3 it's the trng harness issue that you raised which is opening and closing the trunk can impact this cable that cuts off the feed to the rear view camera. everyone used a backup cam all the time with the front trunk in the model s there's a latch issue and can pop up and block the visibility of the driver. >> how big of a problem is this for tesla? a factor the bulls citing today is it is not like they're looking into the self driving autopilot issue. it is not related to the software fix that the investigators are looking into playing video games while dri driving. what do you think is the impact? >> you have to take safety
4:25 pm
seriously why you don't want a risk of collision or injury. but it's already hard to get appointments, prompt service from tesla they own and operate their own service sectors and now they have to evaluate about 500,000 cars, determine if they have an issue and make a fix on tesla's dime and operationally complicated and creates a service burden i think again recalls are fairly common but this kind of thing you wonder why tesla didn't determine safety issues sooner than 2021 given how far back the issues might have gone they talk about back to 2014 and 2017 and surprising to me that it took so long to issue the service bulletins. >> are tesla customers more
4:26 pm
loyal and forgiving than traditional customers? >> absolutely. this is the envy of a brand. tesla customers love to driver fast and going green and kind of infinite patience it seems like for tesla and many don't rely on the tesla as an only vehicle maybe they -- actually a lot have more than tesla and i think tesla's very fortunate in that i -- a lot of prish repairs could be done with a software tweak. this one's going to require physical inspections and might be more frustrating to them but i think more cofocussed on fourth quarter delivery numbers. there's a lot the fans and owners are excited about as the news drops on a slow holiday
4:27 pm
week and doesn't seem like investors are really reacting. >> thank you for joining us. >> thank you. four internet stocks that sold off and could be a good buyin buying opportunity right now the names next click and collect, dominating the space and more growth could be on the horizon. which company it is and what it might mean for the stock earn ab,
4:28 pm
4:29 pm
the more questions we have. the biggest question now, what's next? what will covid bring in six months, a year? if you're feeling anxious about the future, you're not alone. calhope offers free covid-19 emotional support. call 833-317-4673, or live chat at calhope.org today.
4:30 pm
welcome back tech on pace to finish up a strong year with the nasdaq 100 up 27% among the biggest winners moderna, nvidia and marvel for where he's seeing under the radar picks let's bring in ryan jacob of jacob assess management thanks for joining us. why don't we get straight into the picks that the people haven't typically heard about?
4:31 pm
optimize. >> optimize rx is basically a digital advertising company through electronic health records where drug companies can deliver advertisements and messages directly to doctors when they're prescribing medicines. in covid a lot of drug companies had to take sales forces out of the field. they really spent more in digital advertising and saw firsthand the returns to get here and we think this is an example of a covid beneficiary to continue off that higher base of revenues. we owned teledoc last year understandably having a more difficult time building on the gains. >> but up already 95% this year. is it richly valued? >> ironically the company's not
4:32 pm
growing much slower than that. the fundamentals moved alock the share price. the stock's come down considerably you see pipeline growth over 50%. you see flush from the pharma company just we expect a strong fourth quarter and looking at this as a pretty good opportunity. >> what about zillow with a tough time of late >> so zillow's a name that we have owned for years really backed off the summer we are surprised as well as many others that they decided to exit this business completely and then once that happened we reengaged in the stock and made a larger position because zillow has no peer. they dominate the online real estate market, leadsing platte form by far. two third of all real estate
4:33 pm
transactions touch zillow and may have a better relationship and could see them coming out of this transition period stronger next year. >> let's go to digital turbine. >> sure. so digital turbine is app install company. they basically started with relationships with verizon and at&t subsequent to that t-mobile. and then a big agreement with samsung a few years ago starting to come to fruition. on top of that, they have also made three acquisitions in the last year that have really beefed up the revenue. given them more economics, the complete economics, so to give a publisher a one stop shop to advertise on nonapple mobile devices digital turbine
4:34 pm
established themselves by far the largest player and again it is a name that's weak over a month, month and a half with growth names and looks attractive the financials continue to improve all year. >> broadening out i wanted to ask you about the mega cap names and a simple way to put it the big four or five companies and whether the earnings multiple will be higher or lower. >> i think it's a great question we feel strongly that the multiples will probably be lower. looking at the top layer of the market in tech, apple, microsofts, trading around 40 times forward ebitda you can justify that that's not really what you would consider terribly expensive given the current interest rate levels but as rates rise there's
4:35 pm
risk of contraction. even though earnings go up nex year, it really makes them less attractive right now we have the smallest allocation to a large cap tech than i can remember. it is probably less than 5% in our funds. >> what about the flows that you have been sees we talk a lot about the ark set of funds and the way they peak earlier in the year in both share price terms and flows terms. is that similar to you >> not nearly extreme as ark or others we have benefited -- all funds are still positive for the year so we have held better over the last two or three quarters which are trickier than the start to
4:36 pm
the year a lot is repositioning from the names that had a sugar high when we had covid and lockdowns and work from home teledoc is an example of a name we exited early in the year and others in the names that not only maybe benefited from build on the success and the key to next year, as well. >> ryan, good to see you thank you for joining us. >> thank you. time now for a cnbc news update with kelly evans. >> thank you hi, everybody. many u.s. cities are scaling back the new year's eve celebrations, one of brazil's iconic places is busy. copa cabana beach is packed. they welcome in 2022 in new york they tested a key part of the celebrations in times squire organizers made sure the 6-ton
4:37 pm
ball is ready to drop. the ball is covered with 2,700 waterford triangle crystals. when that ball drops for real tomorrow night the world population is expected to be 7.8 billion people and earth will start with 74 million more people than it had at the beginning of 2021. on the news the supreme court's busy start to the new year the decisions on abortion. we have a full preview tonight i'll see you on "the news. sara, back to you. >> thank you. up next on this show, mike santoli back with a look at the jobless claims numbers came in very strong. plus shares of angi struggled this past year could a rebound be on the horizon as people ramp up spending at the homes again? we'll discuss with the ceo when "csi bl"om rhtaclongel cesig bk.
4:38 pm
4:39 pm
4:40 pm
stocks took a fall into the close today and finished off record high just let's check individual market movers today pfizer's booster reportedly set
4:41 pm
to be cleared for younger teenagers. "the new york times" saying the fda is preparing to grant emergency authorization for people 12 through 15 to receive the third shot shares of biogen sliding that move after samsung denied a report that it was in talks to buy biogen and combine it. the stock lost about 7%. teva pharmaceuticals dropped after a jury found that they fueled opioid abuse in new york. wilfred? mike, let's get to mike santoli for a closer look at the jobless claims data. mike >> yeah. you guys were talking with jared bernstein earlier about the big
4:42 pm
drop in initial claims if you look at the chart of continuing claims, a twin part of the report, it shows you just about back to prepandemic levels we're just above 1.7 million excellent trend. shows you a good degree of healing until job market and consumers in theory are in a good spot finding jobs and because of the some what of a cushion from the stimulus to spend and service debt that's a good macro input. look at the consumer finance companies with a run higher in this year and really all down kind of double digits or more from the highs capital one, discover financial. so clearly loss rates are not going to get better.
4:43 pm
it is interesting. these are some of the cheapest stocks in the market trading at four to five times earnings it's obviously a point of debate nobody's saying that all of a sudden credit is a big problem and spending to slow down that much a dichotomy there. >> i think the key to all of this next year is what happens with wages clearly the jobless claims number reflects how tight the labor market is. they get the higher wages. striking, quitting, empowered and means that companies are passing on the higher cost to offset the margin hit to take from the higher wages and feels like the wage question is really key to the whole inflation story and jobs picture next year. >> it is and not a consistent relationship of every company
4:44 pm
having that cost push behind it. it also together means a higher nominal growth real growth and inflation, real spending power and nominal spending power going up. back complaining about meager wage growth in the 2010s, 2%, we weren't saying but inflation is really low so consumers are in great shape. right? in theory you can have a higher energy type of economy. >> been that way this year that's been the -- how it all added up can we expect home impremovent to increase? we'll talk to the angi ceo after the break.
4:45 pm
when it comes to autism, finding the right words can be tough. finding understanding doesn't have to be. together, we can create a kinder, more inclusive world for the millions of people on the autism spectrum. go to autismspeaks.org.
4:46 pm
("jingle bells") ♪ (doors knocking and bells ringing to the music) ♪ - [announcer] this holiday season, give the gift of grubhub. small businesses like yours make gift-giving possible. now, comcast business has an exclusive gift for you. introducing the gift of savings sale. for a limited time, ask how to get a great deal for your business. and get up to a $500 prepaid card with select bundles when you switch to the network that can deliver gig speeds to the most businesses. or get started with internet and voice for $64.99 per month with a 2-year price guarantee.
4:47 pm
give your business the gift of savings today. comcast business. powering possibilities. home improvement booned in 2021 average spending on home improvement up 20% according to data from angi but not helping the stock down 30% joining us for an interview is ceo oshin hanrahan so what happened everybody's spending to finally
4:48 pm
repair and remodel why has your business fallen off? >> great question. we're really focused this year on making sure to build something over the long term so if you think about what's going on you have got homeowners coming to get measure work done in the home than ever before and we deliver services to the home own jer that business up 160% versus last year $117 million revenue in the queert and then the ads and leads business, if you think about what's going on there that business is so durable but also really challenged by the fact that the pros have the biggest order books ever think about the pros out there building the brand and a huge milestone to keep it flat year on year while providing services. >> basically the plumbers and contractors and the pros on the
4:49 pm
site don't need to advertise and that makes up a good chunk of revenue >> good chunk historically and now looking to really build the brand so before it was more focused on performance but now they build the brand with the product and built out payments, financing, video calling, remote quoting to make sure that we have got a real long term product to use to build the business. >> have you seen a dropoff in demand for the home services we have the spurts of reopening and not in one with omicron spreading. what are you seeing on the demand side there? >> what we are seeing is this shift towards the home being more central than ever before isn't going away and see that in terms of spend going on in the home and up 20% year on year
4:50 pm
we're also seeing it in the types of services that pros are leaning into and customers lean into think about this historically. it's about painting and bathroom remodels we have seen smart home project creep into the top three that means homeowners aren't just thinking about their homes as an equity investment anymore. they're thinking about it much more as the value of what the true intrinsic needs are so homeowners are really focusing on home as a functional item much more than an investment and that kind of speaks to this long term shift of home being much more central and much more thoughtful in terms of how people think about their lives and how they think about work/life balance and remote work and all that stuff comes together and really means that home is evolving and changing and people are going to have to spend to make their home fit for purpose. >> what are they spending on what are the top services?
4:51 pm
>> so they're spending on some of the traditional stuff like bathroom remodels, like interior painting, like decorating. then it's the stuff like getting home offices set up. we see that come through in smart home projects, in other kind of utility items that people are putting into their homes to make them more fit for this kind of hybrid work model where people spend some time in the office and some time at home then you think about the things that go alongside that to make sure that childcare works in the home, to make sure all the various components of life really fit neatly inside the home >> what about the pros, as you call them, the people that are contractors and that are plumbers, electricians we've seen this huge shift, the great resignation, workers are quitting their jobs, being paid more, and this tightness out there with companies struggling to hire. what does it mean for how many people are on your site looking for work >> look, i think short term the
4:52 pm
impact has been a contraction across the board the labor market is tighter than ever before. i think that trades, the broad trades, might actually be a long term beneficiary of the great resignation. you think about people going into the trades, it's an unbelievably lucrative career, unlimited earning upside huge job satisfaction, really great retention once people are in it and once they build a book of business. we'll see more and more people joining the trades as a result of this desire for more autonomy, more self-control. the average tradesperson, there's probably not a business out there that has more autonomy and self-direction and control than the average tradesperson. more and more people are looking to the trades ias a way to escae corporate america.
4:53 pm
>> but without benefits, though, right? >> it depends how people structure their employment obviously a lot of folks go out and buy their own benefits, buy their own insurance. we've long term invested in making sure we have a platform where we want to give more benefits and access to those benefits to our pros >> great to get an update on what you're seeing out there thank you very much for joining us wilfred? up next, cashing in on click and collect. dominating the pickup in-store category we'll tell you which store when "closing bell" comes back.
4:54 pm
4:55 pm
("jingle bells") ♪ (doors knocking and bells ringing to the music) ♪
4:56 pm
- [announcer] this holiday season, give the gift of grubhub. walmart is cashing in on click and collect in a major way this year. that's when you place the order online and pick it up either in-store or curbside new data from insider intelligence shows that one in every four dollars americans spent on click and collect purchases this year went to walmart. that's the largest share of any u.s. retailer. shares are expected to jump to $101 billion in 2022 for more on this story, head
4:57 pm
over to cnbc.com guys, i found it very interesting. walter robb is one of my go-tos on grocery data. not only does it show the scale of walmart which dominates grocery in a major way, but everyone expected the next wave digital grocery to be delivery, but this is a really long lasting, he thinks, and appealing option for consumers it's also economically sustainable, he made the point, because grocers doern't have to deal with that last mile headache it saves them on costs, it's more profitable, and consumers don't have to pay the delivery fees so for them it's more affordable as well this could show where it's all going, wilfred >> is it a net growth area or just sort of substituting for either in-store or delivery purchases? >> not sure exactly, but i think they consider this part of -- i think they consider it a net growth area as far as digital delivery and where it's going. it ups the pressure for anybody
4:58 pm
else in grocery to be able to offer this kind of solution. it also helps in the walmart -- it helps walmart in the walmart versus amazon battle for online grocery delivery because amazon only has 500 or so whole foods stores walmart has 5,000 stores so it gives them an edge in that battle, mike, which we know has been brewing for a long time >> yeah, i'm sure especially in grocery it makes a lot of sense. it leverages the huge installed base of walmart, like you said one thing i always wondered about, though, a lot of the premise of walmart being big in grocery was to have people walking around the stores buying things they didn't come there to buy. most of the merchandising over the years has been about that, getting products in people's way. maybe you lose a little bit of that but it's not significant relative to being able to grab market share in an efficient way. >> walmart has become a big
4:59 pm
online player and this is all about loyalty and building consumer connections if they can do it online as well, then they are competing with amazon certainly on that front. >> it's a bigger portion of the pie already, actually, in the uk and europe, click and collect. that's partly because full service e-commerce is a smaller part of the pie. interesting to see where it goes final thoughts, mike, a minute left, what a resoundingly positive year it's been. the month of december was almost more impressive. >> yeah, absolutely. i mean, we sprinted into, you know, this week from that low in early december, really even just five days coming into this week were very strong there is a little bit of a feel today of people kind of shifting things around, reallocating toward underloved areas, taking profits on the stuff that's come a long way so there has been a rebalancing. we're also a bit into bonds today. the last day of the trading day
5:00 pm
has been a little bit soft in recent years we'll see if that plays out this year >> wilfred, you've done such a good job this week, tonight i'll give it a go, hosting the cnbc special report, "your money 2022." we'll get expert picks in travel and health care. you will not want to miss it but for now that does it for us here on "closing bell. thanks for watching, everybody see you tomorrow "fast money" starts now. tonight on "fast," wall street's biggest ball is out why trouble could be brewing in 2022 traders are bringing the trades they nailed this year and the trades they got nailed by. and later, a picture is worth a thousand words but is this nft worth $91.8 million? how the market assigns real value in the wild west of nfts welcome to "fast money," i'm melissa lee.

91 Views

info Stream Only

Uploaded by TV Archive on