were already partnered on microsoft azure, onedrive and microsoft office and it sounds like they're going to continue building these partnerships as they expand into the metaverse what else, john, i know you're a skeptic. >> anybody else forget that facebook workplace was a thing i think they got 7 million paid subs while microsoft teams has around 150 million is this capitulation when i see, i don't know, we'll see how quickly they can grow from 7 to more than 10 and maybe upwards into 20. >> john was on your page, john, when it came to the use of the word metaverse. >> a lot of marketing dollars behind metaverse a lot of marketing dollars >>> check out shares if palantir downgrading the company to sell after revenue growth slowed those shares down5% today. but it's a stock that is down 40% since february still up, though, 150% since its ipo a year ago more "techcheck" is straight ahead. stay with us you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candid

clearly microsoft has done really well, up selling their office suite with the e3, e5 bundling and we think teams continues to get better over time so, you know, i think the competition in this market is picking up for sure. >> tyler, different industry sort of. but i remember when qualcomm didn't get nxp and people thought, oh well, how are they going to get into cars this is a major problem. the stock is down. zoom didn't get 5-9, but they still have this focus on enterprise, i imagine they have a build out more salesforce, more process along that but they have a product that's been not only business tested but consumer tested at this point. so at what point have investors underestimated zoom again? >> yeah. i think certainly as you point out the stock is down more than 50% from its highs and you know, still up from pre-pandemic levels. so we could potentially be getting closer there i mean, my target is 250 post this most recent quarter i think the thing that, you know, you need for a stock to turn around is when you start to kind of get some better news flow -- and the challenge i

stock surging post earnings as activision and zillow plunge later on, microsoft enters the metaverse. netflix launches its games >> we will start, though, with the massive melt up in tech stocks the nasdaq looking to continue its longest winning streak since august of last year. still hovering around the fly line at the moment mike santolli with us looking at whether stocks are too hot this is the question of the moment, mike >> it is i would argue we're in a reheating phase, maybe not yet to an overheating phase but it has been quite a month a munt ago tomorrow that we did bottom and the nasdaq 100 up 10%. a lot are moving even faster this is the five-day chart remember the buzz etf. the social sentiment basket of stocks that are really being talked about a lot online. tesla is top of the list and affirm and a lot of the other ev names apple, as well essentially a lot of those stocks that basically have a lot of carry on social media are running, as are small cap stocks this is important to note. this is the time of year where there is a grab for the riskier parts of the market and i

microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. >>> welcome back let's get a check on the morning with philip mena in new york >> good morning. the jury will continue deliberations today in the homicide trial of kyle rittenhouse. critics pointing out the unusual move to have the defendant randomly

we're talking about the microsofts, the facebooks of the world. they've done an amazing job in terms of the an execution standpoint they announced milan x, the mi-200, the gpu that goes against nvidia their next generation data center chip comes out next year. not only is it about the market share that has already been established but its investors will look to subscribe to that multiple i'm sure amd is not planning on stopping on 20%. their number one competitor is clearly wounded while amd is able to leverage and adapt ahead. everyone on this show has talked about bricks and mortar. you look at the entire supply chain, taiwan semiconductor is amd's largest producer these chaps aips are massive, wh we can get into. >> in terms of what the spend could be on metaverse chips, and how much of that is actual new spend or replace spend in other words, you know, no longer spending on whatever prior generation chips and shifting that spending forward >> for sure. so if you go back to facebook's announcement in terms of them increasing, they're up to $34

they call microsoft, the gold standard of the bunch. stocks up 50% year to date deutsche sees upside of further 20%. still ahead, dee. >> more dollars for that market cap. >>> meanwhile, regulation could be on the way for stable coins, popular type of crypto currency values peg two traditional currencies is like the dollar. president biden's working group on financial markets releasing report on the space calling on congress to, quote, act promptly to enact legislation so that stable koins and stable coin arrangements are subject to more oversights specifically the report recommends stablecoin i issuance to be limited to ensured banks giving regulators more control over the coins. one of the biggest stablecoin issuers circle releasing a report joining us now ceo and co-founder jeremy alair. walk us through a worst case scenario what are regulregulators and las worried on i realize circle has different transparency standards than tether which is twice the market cap of circle. what is the worst case scenario? >> well, i mean, there are a

microsoft from the tech side of things and then walmart. take us through why those three are your top picks >> so exxon oblviously related, we believe there's plenty ofup side in today's move by the administration to release reserves it's a temporary fix we're not producing enough oil and as a result, there's going to be price increases. it's a global commodity, but the opec plus group has no real impetus to increase their production as long as they're not losing share and right now, they're not. exxon mobil is incredibly cheap, a 5.8% dividend yield. microsoft is just a great story, executing on all cylinders we love the azure business we think they're taking share from amazon web services when we think about corporate america, if you're thinking about outsourcing to the cloud, microsoft is a trusted business partner. amazon is a potential competitor we can see their growth quarter by quarter they're gaining share. and ultimately walmart, which is executing incredibly well here mark talked about the supply chain dynamics clearly the big bo

and willing to buy oracle, you're buying software companies no difference in buying bitcoin than microsoft is my argument. it's a software. ethereum is a software people should take note. a lot of people don't know sitting around the dining table thanksgiving in the last 12 months, $3 trillion worth of economic transactions have happened on ethereum that's a lot of capital. and it's happening every second. ethereum is a little slow and i'm taking bets on other platforms and all software development. that's what this crypto thing is about. maybe you want to trade bitcoin. i buy these positions and hold them for the long term and leaving tonight to go to abu dhabi because all these leaders and development teams are going to be there and spend eight days talking to all of them this is going to be one of the largest gatherings of crypto in the world ever i have to be there >> okay. pete, no crypto for you or do i just not have it on my sheet >> i have some exposure, scott, but nuthing to the extend of what we're looking at when kevin is talking about some of these various names. i'm in specifi

but microsoft overtook apple in market cap which kind of happens every once in a while. one might argue arguably on the strength of its enterprise software and cloud business and, of course, we also had last week report such strong growth and that's a software enterprise collaboration and dev ops company. when you're moving bits and not atoms you don't have the same. >> it's a virtual chain. no physical chain to deal with john, you and i both watched this the market has been seeing this play out for a while now one of the reasons why you've seen a lot of the enterprise technology names really outperform some of the key parts of the hardware market not that investors have been kind of ignoring it. they have been the exact opposite they have been pouring money into many parts of those markets and they've been doing so especially in the mega cap-type names. the ones that provide the most safety cushion or perceived safety versus some of the smaller names out there. so, yes, enterprise software is key, but size is also a big part of that trade so far it has been those mega c

amd was downgraded today and its stock went up, what does that tell you microsoft for the azure salesforce goes higher all the time, adobe for creative i and throw in snowflake for analytics. these are the brothers and i leave the rest to others finally, let's do boring and basic for the people who haven't heard anything i said. we'll give you energy stocks even if oil and gas prices come down, they will buy these stocks i doubt crude will shrink to the 60s before the end of the year chevron, pioneer and devin are on a roll. and this won't be stopped by a president who wants to stop drilling here on federal land. less they drill, higher the prices and opec is begging them to clamp down more. bottom line, i'll give you more anointed teams as november goes on because this is one of my affluent, 16 years, the beginning of november is when i always do this and everybody really loves it. i want to give you my preliminary list early so you have time to do homework and take action on your own electric cars, alternative energy, the metaverse, cloud and old fashion oil and gasoline you want to see

i expect that to continue to work microsoft is in a land of its own, showing us 45% margins. expect to see margin pressure. google has given 1500 basis points of margin expansion since second quarter, 32% last quarter. when you talk about pricing power, what we're really talking about in this environment is ability to maintain margins. the market will be focused where we are seeing market degradation. >> let's back up for a second, talk about where you think inflation is going because you have been in the camp saying janet yellen said 3% this summer, you were saying more like 6 where do you think we'll be middle of next year? >> right i don't enjoy being right on this forecast. i was certainly not in august when i called for 6% cpi this year, and 5% pc this year, see if we get that later in the month. 5% cpi all the drivers are still in place. we still see shutdowns and disruptions at the manufacturing level, in some part due to low vaccination rates at some of the manufacturing companies like vietnam and indonesia. still see capacity constraints in terms of shipping with the

that big tech is still underowned as you suggest it's over owned and she said it's not that apple, microsoft and amazon's active portfolio weights are one to two points below the s&p 500 waiting indicating shares are still under owned. >> right >> so, i don't know what you do with that, but this seems to be a very interesting piece of research not to mention the fact that it's almost like you can't discuss apple and microsoft in the same way that you talk about other tech stocks because yes, there are valuations from a historical standpoint may be higher or the highest that they've ever been. they're still deemed by some to be cheap, if not value stocks and at the same time, defensive, and that's why money's going continue to go there >> well, you have to say free cash flow. >> microsoft is 6.4% of the s&p 500 and that's a big, big weighting. >> apple say 6% weighting and i still own a lot of apple, but i'm not going to be overweight i don't think that's a prudent thing to do as a portfolio manager. i don't want to become a faang portfolio. that's just not my style, so yes, i agree that they

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microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. >>> welcome back i'm rahel solomon. here's your cnbc news update at this hour. the justice department is charging two iranians with trying to create confusion by intimidating u.s. voters ahead of last year's presidential election the men are accused

microsoft's up 51.5% year to date and microsoft is the outperformer of the group, josh, at 69.5% rather than try to read into the minds of these big, famous investors, just what about the idea, as you view the market, josh, these stocks have gone up a lot this year. they've been the place to be in large respect. is it time to re-think these things when you look at a horizon where you see rates moving higher? >> so i don't -- i guess i don't look at it as a rates play up or down to own the best companies in the world, and i understand why you would see some money out of amazon and if you're running a hedge fund comp theetitively it's a lot of pressure in a large position in a mega-cap stock going nowhere. most people don't feel that pressure because they're not playing the same game. they shouldn't be reacting to filings of 45 days ago as though there is some requirement that they play along. a really great example of why this isn't important we would all agree that one of carl icahn's greatest trades of his whole career is apple. he correctly identified it was a way undervalued, mispric

netflix, microsoft, home depot, lowe's, among those companies making record highs in trading today. check them out we'll be right back. >>> welcome back vir biotechnology and glaxo smith klein announcing today they will sell $1 billion worth of their covid-19 antibody drug to the u.s. government vir stock is down nearly 40% in two months as merck and pfizer get ready to come out with their own anti-viral drugs to fight covid-19 so joining us now is george, the ceo of vir biotechnology along with our own meg tirrell meg, over to you. >> dom, thank. george, it is nice to see you. thank you for joining us today on news this billion dollars worth of contracts with the u.s. government dom mentioned the stock move over the last two months i think what a lot of investors are wondering about the antibody drugs now is as the anti-viral pills are working their way through the fda what role do your drugs play, the antibody drugs, when we have easier to take pills for covid >> that's a great question i think the important thing to remember is we had good data last week on an intramusk collar ap

the five-star morning fund has a blockbuster 2020, a total return of 88% top holdings, microsoft, alphabet, amazon and tesla and nvidia, all soaring, except amazon mike, good to have you >> thanks, kelly thank you for having me. >> a lot of those are -- this is the challenge with your sector right now, right you on-the bigwn the biggest sth country. do you let it ride do you see anything else that can move the middle for you guys for the next 12 months >> well, the answer is yes, of course when you see what is the top portfolio, we have significant investments in companies that are less household names whether it is a zoominfo, a hub spot, software that also really influence our long-term returns. >> can those companies ever get to the size and scale of the major players or was that a one-time 2010 phenomenon >> listen, i don't think it is a one-time phenomenon. when you are talking about a company reaching $1 trillion market cap or some now $2 trillion, it is very, very hard to do. but, you know, as long-term investors we try to find companies that can grow faster for longer, that they ha

we're buying some of the growth in megacap again we saw google and microsoft earlier last week and their earnings were strong on advertising in cloud and as you mentioned apple and amazon, which the market didn't responds r respond to positively with their earnings and different headwinds there. there's opportunities in those stocks when you look at apple and amazon i think ecommerce makes a comeback as we look toward the holiday season and you look at amazon's cloud business still growing really, really strong. i'm buying more of the growth and megacap still. but stronger, overweight on the mega cap brian. >> we have the graphic up next to you and it says meta platforms. hi to do a double take and remind myself it's facebook. i'm going to call google google, i'll never call them alphabet. meta platforms is facebook you say it's like survey says and the thing flipped. anything you don't like, in a police sta place you're avoiding putting money? >> a couple of areas investors want to make sure they're staying in their allocation there. i do still like facebook and that's are an area we're

microsoft is growing about 15% over this time google is at 23. netflix is at 27 amazon is at 28. and facebook, given all the discussion about the metaverse, they've grown revenues compounded at 34%. you can buy both facebook and google at a lower multiple than apple. and don't forget, apple is a massive pandemic beneficiary and so, for them, their iphone revenues over the last five years, fiscal 15 to fiscal 20 were down 11% over five years before you had this pandemic benefit. ipad, mac sales were also down year over year before the pandemic hit so, you know, for me, it's -- we like facebook a lot. we like google a lot they're growing 2 to 3 times faster and buy them at a lower multiple with faster growth rates in the future. and we haven't even gotten into the risks around privacy and what that does to their app store or take rates. >> right, dan. how much weight do you put into the services piece of the apple story? still a relatively small portion of revenue, but if you think that during the pandemic, they were a beneficiary and were able to grow that installed user base, cou

landscape i will happily take general motors at eight times earnings with the autonomous vehicle, that has microsoft as an investor walmart as an investor and oh, by the way, has a competing van in bright drop that has orders from fedex in this now huge space with a lot of competitors. i will take general mores over rivian any day of the month. >> this is a couple of days only after the infrastructure bill passes. >> sure. >> when you had all of the momentum post that vote and the money flowing into ev-related stocks >> you literally couldn't have timed this any better. >> fantastic timing and i don't know if you have the ability, scott, and there is a wall that we have created that shows the projected sales of electric vehicles in the united states. this gets to jim's comments about how much demand is out there. it is accelerating and it was expected originally by most that we would see 1 million in annual ev sales by 2025 take a look at the data now. the expectation is that we will hit 1 million in annual sales by 2023 2 million by 2025. so it is accelerating. that does not mean that rivian will b

google, amazon, microsoft, they are taking sort of different approaches here and eye on q is using ion technology some have completely different approaches here and there will be losers. even the vc investors say that's why it's so risky. everyone is investing in hardware but some approaches don't work if you think about silicon valley, the silicon days, people investing in other forms of technology in hardware and even some types of semiconductors that didn't end up working lost, but that is the venture model. the other thing on m&a, there is probably a musical chairs situation about to play out in terms of m&a there is only five or six companies out there that are not google or ibm. i will find this interest. a reporter that covers google and alphabet, they have done a lot in quantum and they are the most quiet and secretive in the space. others, ibm is outputting out different releases there are strategies in terms of signaling to other competitors what they are doing. >> eamon, i get a lot of inbound investor questions about quarantine, quantum. here is my take on it so far there i

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let's look back at the market cap just below the marquee level, the first time for google joining microsoft and apple, which those two are around $2.5 trillion stocks. it is the fifth straight day the stock is higher, an all-time high, of course, up 70% this year meanwhile, peloton continues its decline. it is the worst performer in the nasdaq today look at the shares, down 7.7%. they're now down 45% for the week peloton back around 51 over to tyler mathison for a cnbc update. >> i have to do a 45-minute hidden hills later today to get the stock back up. let's tell you the news at this hour police in missouri arrested a man they believe shot and killed six people across two states perez reid has been charged with two kountsd of first degree murder police sources say they recovered a pistol they believed tied to all six killings when reid was arrested. >>> on the news tonight, how police tracked him down and what similarities the cases share that's tonight at 7:00 eastern time, ""the news with shepard smith"." >>> covid infections in germany hit a record high on the same day that vaccinated

s&p grinding the way to the 60th record of the year but without the helptechnology, like alphabet, microsoft and apple, and what did work, check out moves in macy's kohl's and gap and nordstrom. energy posting the biggest gains let my oil so what do you make of this market action. dan? >> yeah, i think it is pretty fascinating. you mentioned the move or the lack of participation in mega cap tech you have to go back to the first quarter of the year with the ten year was trading 1.77% at its high up from 1%. what was lagging at that point it was mega cap tech there was a move into more gdp sensitive sorts of names and that is what we saw here today but i'll also tell what we saw here today is something i don't love so much the move into high valuation names that don't have a whole heck of a lot of profits and they just really squeezed the heck out of them today so to me i think there is a push and pull there, move out of that because of the expectation of rates but most important thing i'll say is where is the ten year right now it is not back at those highs right now. especially as we have eq

microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. >>> welcome back germany. est's new leaders are ready to take power they emerged from weeks of secret talks to announce they have an agreemtd on how to form a coalition government they will replace chancellor angela merkel. members of the three parties need to ratify the deal and that's expected to in the next week or two. >>> the jury in the ahmaud arbery trial came in the court room briefly to rewatch videos and asked to hear the 911 call that one of the defendants made the day ahmaud arbery was killed >>> and nasa announced a spacecraft that will smash into an asteroid. this target is not a threat to earth but nasa wants to know if it can divert an asteroid if it is heading to collide with the planet certainly hope so. >> that is a highly anticip

. >> in previous generations of technology, the identity systems came with the platform you got microsoft network, you got an active directory with the windows server what's different about this generation of technology is identity is so important and weaving this universal policy and security across all of your technology is so important. your can't trust it to one platform vendor. if they're selling you identity, they're going to guide your choices in what other applications and matt forms you consume. so by being the only neutral identity platform, we give customers choice we're integrated to over 7,000 systems. and that number of integrations is growing every day as more people integrate to us and they can choose what collaboration tool they want they can choose what developer they want to be successful >> and no one does that, which is why you're the leader and the best stock in this group i've said that a long time, because there isn't -- ythere's nobody else that does what okta does i want to congratulate you an amazing company amazing stock, too thank you. >> thanks, jim >>> comin

big companies are using microsoft teams and cisco. is there enough for all of these companies to kind of win and still make gains or are you convinced they will win at the expense of companies like cisco? do you make any bets, go long some and short cisco or the others >> well, we aren't, we're long only at least at the moment, and, yes, we do think it's at the expense of the old telecom equipment companies. and as i mentioned, this is a $1.5 trillion category we haven't ripped and replaced for 20, 30 years this is a very big replacement cycle. we are at the very beginning of it. >> real quick, because you said at the moment you are long only. do you have any plans or thoughts about adding short positions to some, one or more versions of your funds >> well, we have internally for employees only, we're testing out a portfolio, but it's really ark on steroids if you can believe that we want to test it out on ourselves first and make sure that everybody keeps their eye on that five-year investment time horizon which is our time horizon a

but i think roblox is probably, the more direct competitorsare the likes of minecraft, owned by microsoft the most similar comparable experience and platform, i think there are other higher end platforms that, you know, the creation engine, there is a number of those that are out there, some private, so i would look to those. it is going to be a long haul for facebook to do what roblox has been doing for almost 20 years. they coined the phrase metaverse about what they were going to do almost 20 years ago now. and you have to be able -- a lot of that trial and error and making mistakes and fixing sh that is experience that you can't replicate even if your facebook with all of the money that you got that is a tough experience to -- and how to scale it and all kinds of different ins and outs of it. it is already built, it is an eco-system already feeding itself so -- >> we like the stock 134 is your target john, thanks for joining us. >> thank you for having me. >> and tomorrow don't miss our interview with oak tree capitals howard marks and the ceo of chipotle right here on "closing bell"

that consumer sector and s&p and nasdaq facebook strong and amd and nvidia and weakness in google, microsoft and apple. small caps the big winners up 2.65% have not made a record high since march and a catch up day. investors are set for a big hour of earnings. results from nxp semiconductor, clorox, sichegg and avis budget with the numbers are out. on the record closing day, you general profit and chris varone are still with us. ali mccartney joins the conversation just give us a sense of how the met worth clients feel and how they're positioned after we see a very strong month of october a ann is how have wegotten through what usually is a super challenging month with the highs and the anxiety out of d.c. and high energy prices and last week revising down and the answer is the earnings and today demonstrates the excitement around cyclicality today we had a consumer discretionary outperforming day and what we are seeing is that there are more jabs going into arms we have 5-year-olds and up boosters people meet around the world to deliver vaccinations to the emerging world and not just the u

same thing with microsoft. obviously tesla has a deal with elon musk's tweets and his polls and occasional sales now, as well, but other than that, tech is just fine, scott, and i think we will continue to do just fine in fact, we just shot over to preshant and his team and the s&p 500 that just showed 73,000 calls being bought at the december 472 strike. that's only about 1.5, 1.7% out of the money right now certainly, we could get there like that, but that's a big $29 million bet because those were $4 options and they bought 73,000 of them and they're controlling $3.4 billion worth of stock for that purchase, so i would stack that up against some of the outflows perhaps that retail has taken versus a big institutional size trade like this that says we're going higher into december and like i say, that's a pretty big bet i want to ride with those big bets rather than people that are not dumb, but that are bakley balancing their positions, perhaps. this is the end of the year and i'll ride this thing higher and

microsoft teams pops up on a bc when ever you open it. nothing sells like systems that you can't get rid of when they down loaded right to your computer and some stealth upgrade that happen in the middle of the night that i can't stand. there's netflix. this is a nice story they did well in the lockdown and shockingly well in the roping how about alphabet did better than any fang stock wait after this run is too dice zi to pull the trigger facebook, meta platforms who else wins in the a slowdown. sometimes you can't over think it you have to say the utilities. we're so blessed to get the regularly quarter lowdown. when we spoke to the ceo a couple of weeks ago, he told the story. the stock is 83 bucks in the mid range between the high and low just as important the fed won't hit us with a rate hike. it's hard to go wrong with ap even though no one says jim thanks it's double and gives me a great yield the whole way through. what about the other winners you have some health care plays you have to get into let's get to the crux of what works

you are losing a lot of these darlings i think that's a problem microsoft at an all-time high and even google at all-time high is not bullish to me i know a lot that are trading down 27 or 28 times, i don't know this time is different, but it seems dangerous >> karen, i am surprised about the move up 7% since they reported earnings you usually don't see these big moves from home depot even with a blockbuster report what do you make of the have and have-nots? make sense to pile on or wait for the tide to turn >> i am in home depot and lowes, so i like to think i didn't pile on for a while i was surprised by the move. they had a nice run going in i think what dan is saying, this sort of -- everyoning ae aggreg into these names everyone wants blowout growth or it's not goodenough. i don't know what to do with homedepot to be honest i like the trend going into it, i can't say i was expecting more than this price so i am stuck to do with it. maybe sell calls with it and take money off the table it has had a nice run. >> tim, what are you going to do >> if you say the rich are getting richer

it's below a hundred right now it's even below 99 >> i was looking at microsoft and apple, both down session lows 1.5 to 2% it might be interest rates, might be something else. still, "closing bell's" got a lot to talk about. >> thanks for watching "power lunch," everybody. "closing bell" starts right now. >>> a lot to talk about. welcome, everyone, to "closing bell." i'm sara eisen here at the new york stock exchange. red hot inflation translating into red screens on wall street. losses are accelerating throughout the session the nasdaq seeing the sharpest declines as we head into this final hour of trade. down 2%, tech is getting crushed today. >> it is indeed. good afternoon, i'm wilfred frost. let's have a look at what is driving the action rising 6.2% in october versus last year. the fastest pace since 1990. fuel oil prices were up more than 12% for the month speaking of fuel, energy, the worst performing sector today as oil and natural gas pull back, tech also falling hard and evs are a bright spot. rivian surging on its first day of trade after pricing above its initial price

they will be microsoft, amazon, tesla, nvidia. these are the names you want to buy for growth if you go back 15 or 20 years, the performance is outsized. >> karen >> similar to steve. they have so much risk that one thing performance or physical health you have to diversify. i would go buy some spiders. >> mike? >> i would go with ivv which is another s&p variant, but has low fees, only 3 basis points. i like what karen is doing >>> and a man who played d-1 sports, sponsored by vidal sasoon back in the day >> i am such a huge fan of warren buffett you want to be in what you know. if you know apple and bank of america and you know these various different names that are the biggest components of what are in there, that's where warren buffett is strong >> that might need more than three tacos in a deal, but well diversified company. thank you all very much for playing. coming up, we are counting down to nvidia earnings this is elodia. she's a recording artist. 1 of 10 million people that comcast has connected to affordable internet i

microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. >>> well, my vision is to use disney plus as the platform for the metaverse. i think it really blends our physical beings with our digital beings and creates a three-dimensional canvas otherwise it's a park experience or a movie experience or it's a book experience. i think those all come together without boundaries, without borders, without constraints, and our creatives are just biting at the bit to get into the disney metaverse >> seems everybody's talking about the metaverse these days including disney's ceo bob chapek i want to find out to my committee members and find out if they're even thinking the metaverse. are you playing this yet >> of course i think first of all defining the metaverse is like defining transitory it's a different definit

the future cash flow is worth less, sforz, apple, microsoft, and nvidia all weaker. >> it might explain some of the selloffwe are seeing specifically in the nasdaq right now, bob >> now to the bond market overall, custom is grappling with the inflation number and a weak 30-ier bond auction rick santelli is tracking the action from the cme group. rick >> you talk about a tail wagging the dog, 5.5 basis point tail on a 30-year bond auction what does that mean, the auction went off at 1.94%. the when issued market was trading 1788 percent, 5.5 bassis points normally a tail at 1.5 is bad. 30 year bond auction was definitely not good. it reached a height of 196 big u-turn even at 191 it is up 11. why the u-turn you can see it in the two year note as well, right now at 48 basis points, up half a dozen. they were as high as 50. i will tell you why. stocks stocks buying treasury, that channel, is in a layup when stocks become a bit nervous or investors a bit nervous holding stocks that is why we see the u-turn. and remember, resteepening of the yield curve as you see, 30s minus twos it skyrocke

you have microsoft, mastercard and nvidia, but what do you mean in terms of the run we could see for diamond back and eog >> one of the transition problems in this next cycle is the fact that we've so cut back on the amount of oil and gas development sending we're doing that we're just going to need to price demand out meaning we're going to have to see oil over $100 a barrel before we can begin to touch the imbalances on the supply side. so that's going to lead a company like eog and diamond back, i mean, they're going to throw off 30% or more of their market cap in free cash over this next five years it's just so powerful. when you have a business that has that type of free cash generation, generally, you see it as share buybacks, dividends, and you have a great support for the stock throughout the entire phase. and so i think you're going to see a whole different view of these kinds of energy producers that have low cost space and high cash flow and it will be another example, like ford, of an old cyclical business that gets upgrades, if you want, into a much better valuation prof

where companies that are able to pass on some inflation, if you look at -- moves in netflix or crm, microsoft, these are all subscription models that have built-in inflation hedges and that runs across the gamut countries who don't -- and we're seeing that part of the market moves over the past six months it's why we would favor those types of stocks where you can be fairly sure that they can price more to their consumers, whether they're industrial or people in late positions or you have a subscription model where, you know, the price goes up and people take it >> okay. we're going to have to end it there. we have -- don't have a lot of time left. thank you. we're going to go. becky, andrew, happy thanksgiving make sure you -- we have "squawk on the street" coming up next. ♪ >>> good morning welcome to sid"squawk on the street." i'm carl quintanilla with jim cramer and david faber the white house announcing that spr release of crude oil, europe's covid wave intensifies and there's pain in specialty retail yields are up after the powell news and the vix is approaching 20 jim, we have a lot

the nvidias, microsoft higher. tesla, apple, amazon all lower facebook as well there's the bell looks like we are set for another quadruple closing high a quarter of 1%. another strong finish eight days in a row for the s&p >>> welcome to the "closing bell." i'm wilfred frost along with sara eisen and mike santoli. four record closes once again. only slight gains on the day but you can't complain when it's so consistent as it has been. s&p 500 up .1% dow up 0.3%. nasdaq up about 0.1% a couple of high profile decliners. tesla down 5% today. investors now set for an hour of earnings moments away from reporting the numbers. plus also breaking down results from thread up, real real and lemonade once they cross josh with us and another guest joins the conversation mike, yields of interest remarkable how low they in general have settled with that settle and lack of volatility there equities grind out the gains. >> especially because the lower yields is not taken as an economic flare being sent up it seems to be a lot of

thigh have a lot of coat tails to that deal you see this ramp, this is 8% tesla 4% nvidia, after that microsoft and other broader tech names so obviously getting all autos. taurlly, tesla a huge chunk. all car companies are doing well there is a pretty good excitement around that low splitting into two companies, obviously, the objective here among others is to get now what surprises j&j. here's how j&j breaks up and how it's performed relative to its component sectors, which will be pharmaceuticals and consumer staples. you see both have been major laggards basically, people want recovery plays. they're not considered to be beneficiaries, under performed the s&p significantly right there. you see pharma, s&p. we don't have staples but it has also under performed both of these right now. so down the road, maybe you got better evaluations it starts at a level they're not digging this >> johnson & johnson announcing it will be splitting into two public traded companies. alex gorsky is here. the company goes back to 1886. so this is a huge piece of news. why now? >> happy friday. i know it's the d

a new solicitation posted this morning online sees the pentagon asking amazon web services, google, microsoft and oracle to bid for this new cloud contract. the size of which remains unclear. but certainly it opens up the competition for at least these four companies seen as a major win for all of them to get a piece of a very lucrative government deal. now back to you. >> thanks so much, kayla interesting news there >>> shifting gears, vaneck launched bitcoin futures etf trading under the ticker shortly after the etf rejected vaneck etf that sought to track bitcoin directly joining us jan van eck let's start off with your response to the fact that sec continues to deny direct bitcoin etfs >> it was sad news last friday you know, we've been trying to get a bitcoin etf approved since 2017 the logic, it wasn't surprising decision the sec is very clear that they would like some more insight/surveillance into the cash bitcoin markets that just having a regulated bitcoin future's market isn't enough for them but we're happy to have a bitcoin fund in the market i think investors are dramatically un

bidders and replace a 10 year, $10 billion contract terminated in july amid a battle over it between microsoft and amazon so looks like maybe they're going to split the baby and give them all a chunk of it >> probably the best way to avoid, you know, companies complaining in your ear constantly or lawsuits, but still seems a little overly easy, i think, bertha. >> just not picking one of your favorite children, distributing it across them all >> that's right. marsha, jan, cindy, you all get an equal slice of pie. we'll see you in a few minutes. >> thank you. >>> now back to the markets and your money even after the fed finally announced the worst kept secret in the world, the bond buying would be scaled back later this month. but does it matter for the stock market it hasn't so far stocks keep running higher, some feared it could slow down the economy eventually let's bring in lee baker do you think this will ultimately impact rates and/or impact the overall american economy? >> i'm thinking no, i don't. at this point what we've got is what we've known for a long time markets don't like uncert

an operatin systems for vehicles it's at subsystem levels in the vehicle that looksing more like a microsoft window and a full system for the vehicle that's upgradable and layers applications on top of it. from that level aptiv is working with hyundai and bringing cars to market later this year that we think are best in class that's another way to get involved here is looking at some of the basic architecture of the vehicles. >> what about rivian this is a company with a $64 billion market cap, it doesn't have any manufacturing experience, doesn't have any sales, very expensive but also big backers in the likes of amazon and ford. does $64 billion make sense for you there? >> for us, we're not in there so i don't want to comment oval w - on valuation there's an opportunity for vehicles moving to electri electrification. there's a lot of enthusiasm left in the group, and work for startups making cars there's a big opportunity for them, but actually making these vehicles, you know, optimizing the designs and taking cost out is an awful lot of work. we've seen some of the established oems strug

so it reduced fossil emissions that are still happening all around us >> customers of charm include microsoft, shopify, square, and stripe brian is here meeting with industry and government leaders, like strike's head of climate. over the weekend, at a scottish sheep farm >> we're very focused on delivery and changing the narrative around the industry to one of delivery. but we do need to also scale up demand and supply and there's a lot to figure out. >> these companies use charm's removal as a credit to off set their own carbon emissions as the markets ramp up, it is industries like this that stand to make big green. >> it's interesting to see if that will work in the agricultural space when it comes to power plants, it's been more difficult for carbon capture to work >> we saw a company that uses these enormous fans to suck carbon out of the air and heat it then it can liquefy and they can put it into other things like coca-cola, use it as bubbles. it needs more money. it needs to scale much bigger than it is now to have a real impact z >> it is true. the big soda, anyone making carbonated

microsoft to me is the one that trades the most bond like of all of them seeming so predictable so look. without treasuries here it is like you don't have a quorum. >> the dollar is higher. >> and the commodity related stocks are higher. >> steph, are you reembracing any reopening sectors as travel is per mitted once again >> yeah. i own a whole bunch actually of the reopen names and been adding to them. after i heard several companies speak on cnbc about improving demand we have learned in the last week ual saw 100% load factors last weekend with the ban being lifted internationally we saw, heard from wynn yesterday that their ebitda beat by 45% in october actually all record highs in ebitda in las vegas. we heard from expedia and they said that summer the bookings in 2022 are higher than '21 because demand is so strong and even match group, i know bumble stumbled today but match beat and tindr is up 20% why there's demand for sure in terms of the reopen i have to watch inflation to see if that creates destruction. i don't think so in the near term but it is something to watch for 2022

you have tesla, microsoft, home depot doing a lot of the work. the average stock is middling. that doesn't really negate what is going on. quiet kind of uneventful strength is okay this wasn't much of a scoop lower. we are not blasting through. sometimes you have to pull the slingshot back for the rally after that but so far hard to find fault the bellwethers of the economy looking good looking at home builders compared to autos it is difficult to paint a real story about the economy when both near highs. this is a global auto etf and tesla is almost 10% which accounts for that recent pullback but gm, diamler, toyota big components and shows you the big ticket stuff home builders extremely strong let's not fight too hard in terms of the more racy pockets of the market, the more speck lative areas or ones buzzy for a while, lucent is a darling blasting to hundred billion dollars. rivian surpassed that. roblox has found much of a lift. you had the early year favorites. hitting new lows right now so it is not as if everything that is a buzzy app attacking a huge market is working