Reachable . Gus brown, pie in the sky forecast or is this legitimate tax liabilities a reduction are lead to Margin Expansion, share buybacks, 20. 5 times multiple as earnings go up and that gets you 3,000 on the s p. I mean, its not pie in the sky historically, but theres a decent probability that that could happen doesnt mean it will happen or anyone can actually foresee that happening. I think he makes a good case though i thought the note was fairly rational, but think about it, he could have written the same words on the same page and said 21 times or 19 times so the art of the p that goes into p e multiple is an art. Its not a science its not math. Its what you think sentiment will be, even if somebody agrees on all of the pieces that he sees fall in to place doesnt mean you arrive at the same sentiment level or pricetoearnings multiple. The point here is the rally is far from over and if you want to put 3,000 on that or whatever number he wants to be the top, hes going to be on the 5 00 show tonight, youll hear directly from him how he put together this note and came up with the target. I like him, heres what im going to tell you. We went into this year underweight u. S. Equities in january, worked out okay think well probably based on committee and these arent huge d divergences, i think my Management Committee probably wants to go into 2018 in the same condition doesnt mean sell u. S. Stock, doesnt mean get out, doesnt mean predicting a correction, but just this idea that theres more opportunity elsewhere just purely on valuation and trend and those are the things we think are important. He might be right, and those might not be things that matter to me. Yesterday when we were at that conference and we spoke to mark lazare and mark almost every person that we heard from expects, steve, stocks to continue going higher. Lets listen to what they told us about that. We can react on the other side part of it is all the news has been positive. Look at the economy, the economys doing well everybodys taking all that positive news and just continuing to buy equities so i think it could continue for another six months or a year because everythings good. I know with tech weve had quite a big run but i think we have another probably 10 or 15 ahead of us next year. The tax bill may give us a little more of a bump, but its still, i think you could get double digit returns out of the stock market. All right steve, what do you make of that . So im looking at a tenyear in u. S. Despite a great jobs number not above 240 its 238 im looking at 30 dips and japanese tenyear at negative. So where are you going to put money . And you take that in con juncture this is goldilocks, is it not . Wages pick up a little bit, below expectations, the biggest fear you hear from people and even Lee Cooperman mentioned it to us yesterday is relative to the tax hike the tax reform he used the word dangerous potentially because it could if you get this runaway inflation, you could spur the fed to have to act more quickly. Right. Not worried about that today. No, not at all. But if youve been looking at the downside of the market, concerns about inflation, missed a lot on the upside. So, look, everybodys got i would think, thats been in the market, has some coin in the deck, right . So theyve got those gains its prudent to always take something off the table. Right now still the only gain in town and arguably powell is more dovish than he is hawkish so youll see a measured increase, very measured. Thats the only thing people should worry about in a week where weve heard from some big investors and weve had some folks, jim, say, you know, youre pulling gains ahead. Right. Next years going to be more difficult to make money, jeremy siegel, hes bullish, but tougher 2018. I understand thats logic. Yeah, but miner 10 to 15 , thats pretty big. I think its reasonable i think its reasonable to expect that the s p 500 is going to be up next year now, thats nothing too insightful i think 15 is too much. And i think one of the things that you and i and you brought it up talked to Lee Cooperman yesterday about with John Templeton phases of a bull market and you mentioned the euphoria phase you know, as i watch analysts now come out and try to top each other and they are, somebody comes out 3,000 today, next week somebody will come out 3,050 doesnt matter if its the s p 500 or an individual stock you know, amazon, were watching people just continually set higher targets that is the early stages of euphoria now, i think that early stages early stages. Steve, i think it continues into 2018. But, look, at this point how much more good news can you actually be surprised by i dont think anything, even an Infrastructure Spending bill would not surprise many people right now. What would surprise people is negative news, Something Like inflation which we see no sign of a lot of people get surprised by growth being better than they even expect with the tax plan. You know something, scott, i think you get a higher i think they have reset higher. I mean, weve seen his forecast on multiple 20. 5. Lets talk about this for a second because i think most people have looked at the last three quarters including the Fourth Quarter gdp and they are saying we are now solidly stabilized above 3 gdp. You heard donald trump earlier this week saying maybe we could get 4, 5, 6 , his words. If you get 4, 5, 6 gdp growth, inflation will come. Im not saying something that will shake the world there the question is what gets you there. The wall street journal out with an article today value stocksover growth asking the question we have this rotation out of tech and into some of these other more valueoriented areas. Youve had three Straight Days of nasdaq bounceback, so maybe it was short lived their response to that question is fat chance. Forget about this value coming back it aint going to happen. I love these articles, right . Its a great contrarian indicator. Dont go to value, go to 30 Technology Every indicator for something that hasnt worked and theyre suggesting is it going to come back. I think if you look at Going Forward if the tax regulation, if it gets passed and international and Domestic Companies, whos going to really benefit a lot . The Domestic Companies with their tax rate thats going to put a floor on earnings and increase it going down the road. Thats going to provide value stocks based in our country here with a tailwind that i think will add to earnings and you could get that multiple expansion. What if the money just flows right back into tech its already starting to thats it . The rotation that we talked about, Bigger Picture questions as to whether it was a longer lasting phenomenon well, no. When i was on earlier in the week i said it was driven by the tax bill so that occurred and it occurred in a very compact period of time and violently. And now it seems to be over. So maybe some war when the actual its also an indication even sort of gary cohn seemed to allude to this in the interview this morning on squawk on the street about the state and the local problem that a lot of people have that theyre working on it. And i think he said something to the effect of, you know, were making progress on that issue even over this weekend its like for the individual whos an institution are huge i think when we gave short trip a moment well, it is, but its more the concept of it. Everybodys tilting one way. Then usually you should look the opposite direction im thinking the beginning of this year everyone said the dollar was going higher. Everyone okay what happened, the dollar weakened for fundamental reasons. There has to be fundamental reasons for a value to come back into mode. I think one of those reasons is if growth disappoints from what are being sequentially ratcheted higher expectations. You see the i dont think whats the reason to believe it will . Simply because expectations can i point out though a lot of the money, a lot of the money thats going into quote unquote passage strategies its not really going into an index. Its going into smart beta or whatever and a lot of the premise behind those products, and by the way theyve raised like half a trillion dollars, very, very big asset class, theyre doing something that i think is ghood its not always going to work. But value tilted for sure. But they are doing a value plus momentum tilt. So what theyre saying is we want to own the cheapest quadrant of the stock market, or however concentrated they want to be, we want to own the cheapest stocks but we want the cheapest stocks that concurrently have the best price action so theyre cheap and theyre going in the right direction and when you weigh the portfolio that way, again, its not guaranteed to work in every environment. But its a different approach than, oh, these stocks are cheap and thats why i want to buy them and ill wait for a catalyst to arrive and i think we have to delineate between different strategies within values. This whole debate will value outperform growth, i think for most investors its not a meaningful question because no ones doing one or the other right now. I think so much time is wasted on saying everybodys going this way so go that way. Yeah. Whenever theyre above the knee the market, to me thats all it means nothing. Like who wins next super bowl, nfc, it means nothing. Just do your fundamental work, take into account some of the macro factors and focus on that. Not of articles, not on supposedly, you know, old wooif tales. You dont need an article to come out asking about value versus growth. We know growth has led the way people say maybe theres a renaissance, but when the trend and other evidence would seriously suggest otherwise. Right but if you are high growth investor and a tech investor, you find value in alibaba because relative to its growth rate, the multiple is low. [ overlapping speakers ] will have the position and says its cheap. How do you know who the Growth Stocks are going to be . Youre investing with a timeline anything beyond like six months so growth stock today were saying microsoft is a growth stock, it wasnt a growth stock six years ago. Ten years ago the Growth Stocks were all Energy Companies to this idea that i buy value, i buy growth, thats fine. I have no problem with the style, but its not the same stocks not the same. Those arent real world investor. Little did lee know he was going to give us all this material, but were watching shares of amazon closely as well today following comments from Hedge Fund LegendLee Cooperman about a conversation he had with President Trump over the summer. Listen to this but amazon is a Class Company that is gaining strength they out execute everybody the major risk, i guess i can say this tell people at dinner, i was hosted by the president to the white house in midjuly and twice i was asked if i thought amazon was a monopoly. The president asked you yes i said, no, i dont think so they do a very good job. He says he has a relatively small position in amazon the only reason trump asked the question im going to suggest is because bezos owns the washington post. Otherwise the question wouldnt come up. The mere fact it did is important, does it make you sit back and say, okay, regulation increased regulation of any of these tech stocks, amazon, facebook, has to be considered as a potential risk. Well, yes, it has to. But i put it very low. Mere fact he asked the question. I put it very low because the antitrust laws are letting Companies Get together, right and ratchet up pricing to disadvantage the consumer. Amazon has done nothing but advantage the consumer by bringing prices down so whos going to stand up and say to consumers, their constituency that this is a monopoly. Ill tell you who the ceo of the Department Store goes to the senator in their state or maybe the attorney general and says heres the deal, i understand this has been good for consumers on balance, the problem is we have 10,000 jobs lost each year over the last three years and those jobs dont come back at an amazon facility in our state, they end up in seattle, washington, and a totally different Job Description and the person who codes sweaters doesnt end up coding for jeff bezos. And that is probably something that will happen at some point and i would actually be surprised if it was the federal government getting ahead of a state attorney general i wouldnt be shocked if you saw it soon. Are you surprised it hasnt happened already yes i think its moved very fast and i think nobody wants to be the one that brings the case that turns out to be a boondog embarrassment. And amazon is creating tons and tons of jobs, they just arent jobs as equally distributed as retail store clerk jobs are when you look state by state. I think to joshs point its a question of is amazon going to a different vertical and then does the government then say, hey, the clock is ticking. All of a sudden theyre going into every vertical direction. [ overlapping speakers ] exactly the issue if they get into one of these and all of a sudden this happens to another vertical, thats when you might see regulation come. Its just a caution to look at. What if they wakeup and say you know what, we looked at the Car Insurance market, we looked at Corporate Health trends, we think theyre atrocious, we can cut the cost for the consumer by 30 or 40 great news for the consumer. The industries will be in an absolute uproar. And its not like they just sit there and say, well, i guess we have to compete with jeff now. They make phone calls. Keep in mind amazons not manufacturing the stuff they sell with rare exceptions. So sure they own whole foods, but if you want to buy, you know, whatever thats not really true. What percentage of the products that they sell do they manufacture . Steve. What percentage of products thousands and thousands of skews on the amazon site please, please you asked me a question. Let me answer it thousands and thousands of skews on amazon sites. Right. And more every week for products that they see theyre selling a lot of from a third party, they make their own version in asia. Nobody here makes it and then they put it online and its 5 cheaper, 2 cheaper, whatever, and instantly ratchets up to the top of the category. You name a category. Name a category. My question, what percentage of the products that amazon sells on their site they manufacture . Im telling you thousands and thousands. They have millions and millions of skews. Thousands and thousands means nothing. No, no excuse me, a small come back from commercial oh, my gosh [ overlapping speakers ] ill give it to you at the commercial break youll be floored. Okay. You do the digging well take a break and in two minutes josh brown is going to give us the answer because were coming back on Halftime Report after this thats a lot of questions. Jon najarian, see what he found out about the rocketship of a ride coming up. Plus, the call of the day, weve all heard about apple becoming a trillion dollar company, find out about another company this Analyst Thinks is also set to break the barrier. Before the break, our data partners at kensho say put money in the msci world index this month. When its up big in december the data shows it keeps running to the new year up an average of 3. 22 in the final month of the year for more go to cnbc. Com kensho Halftime Report with scott wapner and the traders is back in two minutes feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. Let out your inner child at the lexus december to remember sales event. Lease the 2018 es 350 for 319 a month for 36 months. Experience amazing at your lexus dealer. The cnbc iq index beating the broader year on 19 . The laggards general mills, mattel and Johnson Controls. For more go to cnbc. Com iq100. Were back and were going to do the call of the day in just a second. But josh brown has some Research Results for us the percentage of things sold on amazon that are made by amazon im looking at data as related by tech crunch this august but theyre saying between the beginning of the year and prime day the percentage went from 2 to 12 Amazon Basics is pretty much at the top of every category when you shop for anything from School Supplies to bed sheets to whatever the clothing line, which is for kids, a lot of the shoppers dont even know amazon owns it, is up 542 this year so were not talking about a huge chunk of the overall sales, but by far the Fastest Growing within amazon. By the way, that screams out the echo and the fire and the things that they just make and no one else makes so i dont think its out of line to say that they are making more and more of their own products to sell up against third party companies. And i think, again, getting back to the whole point of this conversation, thats something that people are taking notice of and its not long before politicians do as well. Okay. Thank you for that. Thats fair. Totally fair. My wife has no rebuttal on that. Hey, i do small. Its my fourth all right i love when we all like get along and we agree i didnt know the answer. The important thing is i was right. Okay [ laughter ] mr. Weiss has trouble with that, but okay. I do. Okay. Lets talk about evercore raising price on microsoft were joined now by kirk materne, welcome to Halftime Report. Thanks for having me. Quite a call. Microsoft, which no one talks about in this conversation, its amazon, google, apple, how is microsoft going to get there good question i think youre right it doesnt come up quite as much as some of the other consumer companies, but when you look at microsofts business and this is the point of the report today, lets remind investors that this business has become much more of a radical Enterprise Software business a compounding annuity stream of revenue and cash flow at this point in time. So when you think about the assumptions that are needed to get to essentially drive a billion dollar sorry, trillion dollar market cap, theyre not as herculean as you might think. When you look at the kind of growth youre seeing in office 365 right now, you look at the kind of opportunity in front of azure in terms of public cloud offering, this is a Company Generating a lot of Revenue Growth for its size. Its throwing off incredible cash flow. And so i think what we want to do is we actually put that number out there for people to sort of digest, but when you run through the numbers i think its more realistic than people might think at off the top. More quickly as well, in your estimation and people may be giving credit for it by 2020 if not sooner, you say. Well, i think if you look at the compounding nature of the business and what really is required its only got a 15 in terms of share appreciation per year over the next three years if youre talking about a Company Generating revenue 9 on excuse me, cash flow growth roughly around 13 , youre not arguing for a huge amount of multiple expansion to get there. So, you know, were trying to show people is that when you look and start to dig under the covers of microsofts businesses, this business is incredibly durable in terms of building being able to grow at a very quick rate for a company this size and scale. And so we feel thats actually very reasonable assumption and, you know, obviously again a huge market cap, you know, the assumptions you need to assume to get there just arent that high. Weve seen too many opportunities for microsoft in the enterprise market, you say, expect the company will remain aggressive in a whole bunch of different areas, business apps, analytics, augmented reality, quantum computing, a. I. , et cetera so theyre going to be busy just to get to this market cap. I think if you look at the two key drivers its really going to be office 365 and then azure sort of scaling out from where they are today i think we threw that in there to really, you know, if you talk to bulls on the stock theyll tell you they think the Margin Expansion can be even ahead of where we are. Uhhuh. We just put that out there because if you talk to the company or you read the ceos book, you know, theyre going to be om any present in a lot of these growth areas we think theres a huge opportunity tr them in Business Applications over the next three or four years and whether they get there organically or through acquisitions remains to be seen. Dont forget that by 2020 we expect that theyll have roughly 100 billion in net cash on their balance sheet. So the optionalty that they have in terms of m a, in terms of returning cash to shareholders is pretty incredible. Yeah, kirk, thanks. We appreciate it interesting note. Thanks very much. All right well catch you soon evercore, i know theres ownership on the desk. I own competitors, well get to in a second which i find cheaper and compelling for that reason and intel, for instance, which is not a Software Company but should benefit from a lot of the things that microsoft should as well. But one thing i question about this is to put a threeyear target of 1 trillion, first off, we all know three years is a long time. I mean, we will probably have a recession some time within that period, hopefully at the end of that period. And that might skew the growth perceptions for microsoft down what im saying is why put a threeyear target out there . Why not focus on one year . I get it, why not take the overall point . I think its going higher for the next year. Im saying paint a trajectory though. I agree with the trajectory. Is this way. Yeah, for the next year, yes. Thats the most important thing. Not the one piece. Its the headline is one piece. I get it, headline is a headline but if you believe the stocks going to go higher ill give it to you for the next year. Im in agreement for the next year three years from now and the next year its not going to be 1 trillion. Weve owned the stock for a long time now. You talk about growth value, in 2010 the stock was 30 in 2015 it was 40 you went nowhere buying this stock. And all of a sudden you have an Inflection Point when you have a new ceo. These are the type of companies you want to own and keep we own it in size. I still like it. Im going to watch the growth rate if the growth rate slows down thats going to be a sign. Like the easiest stock on evere earth. This thing broke out in late july. It wasnt easy for five years. Yeah, but to you technicals you dont sit there for five years, you buy the breakout. Buy the breakout, pure up trend since then not even close to whatever you want to look at, weekly closes, fine, theres not been any indication that this stock is changing its trend and it isnt right now. In fact, just had its in the process of consolidating this is not that difficult if youre worried about the next Inflection Point thats downward, trail it with the stock, use the trend and get out when the market tells you things have changed. So, jim, if you dont want to listen to three years, 106 by target 12 months. I agree with that again, 12month price target i agree. What im saying headline out there 1 trillion, i think thats designed to draw attention to a oneyear target that is not that provocative. To jims point, look, i respect the analyst research, people say next driver might be quantum computing. Couple months ago interview to forbes asked him to explain, gave him Three Chances and he says i cant even explain it theres no reason for somebody whos riding microsoft stock up in one of the greatest bull markets of all time to think that they know what the drivers going to be three years from now. All right we take a look at the dow by the way. Plus 102, looks to me to be the highs of the day better than expected four years. 1 trillion. Four years. Didnt he say 30,000 i dont remember 50,000 i dont remember what he said. Shiller robert shiller. Really . Didnt he have were going to move on. To our trader blitz. Celgene shares are higher. Sorry are you with me no, i thought we were going to commercial. [ overlapping speakers ] well be right back we own celgene for a while, still down 11 for the year. Its great cash flow 11 times earnings. Keep going. Thats what you want to know. Coming down and cash not many acquisitions been washed out when compared to keep ongoing. Are you okay . This is why youre not a regular. He is a regular were good all right. Western digital, toshiba trying to settle their chip dispute next week. Western digital shares are rallying. Sure. First off theyve agreed in principle. Yeah, i mean, look, you dont get that sort of news unless its pretty near to being done that would be good for western digital. Removes a legal overhang the stock is cheap in terms of toshiba issue, thats not where the exciting part is. I frankly think that apple is the more exciting part there because its the winner in that pseudo auction for toshibas chip business. What about michael kors i bought some yesterday and today. I think the stock regains highs. I think youre right. What about micron i also add to micron. You did okay all right. Goldman sachs upgrades Ingersoll Rand to a buy today and downgrades Johnson Controls to a sell lets talk infrastructure, steve. So do we do that no, we didnt mention it. I dont know whats going on because we moved past that look, its a regional call. Johnson controls underperformed, financial metrics arent there so Free Cash Flow is not going to be enough to keep exciting. What i did today bought some granite construction, gva, im not so sure that will get infrastructure through because the country cant afford it. However, i think its going to be a play into january so the other ones you want to buy will be buying cat at some point but also buy Companies Like materials. Josh now of course please. Yeah, so this is a stock that is doubled in the last few months its just been on an unbelievable tear. Expectations got very low and then the company exceeded expectations a few times now and theyve had good guidance. Im not a buyer here this is now an rsi of 86, totally off the charts its been overbought for a few weeks now. Has it mattered . But the last two times it got this overbought, winter 2015 subsequently the stock got cut in half. Not what im saying is going to happen here, but if you have to be in this stock, i think it will cool off for a bit, wait for the rsi to come in a little bit, some of the momentum to come out of the name and thats a better opportunity. Jamie dimon once called bitcoin a fraud just started talking about it again hear what he said next plus, jon najarian just returned from europe. What he saw will amaze you Halftime Report is back. Well, its earnings season once again. Yeah. Lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. Your bbut as you get older,ing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley hello everyone im sue herera heres your cnbc news update at this hour. At least 65 structures have been destroyed by the wildfires in semirural north San Diego County the blaze now exceeding six square miles is zero percent contained. Strong winds which subsided overnight are expected to return later today. Aditi roy has more now on the devastation caused by the socal fire. Reporter im standing in the driveway of a home in one of the hardest hit neighborhoods in ventura county, california take a look at this car and a truck completely gutted by the fire and over this way this garage door is a mangled mess back over there is a washer and dryer thats also charred beyond recognition. Home after home in this neighborhood looks just like this, reduced to rubble. The European Unions chief brexit negotiator welcoming a breakthrough in negotiations on britains departure from the eu, but said there is still work to be done. The latest obstacle to be overcome, no hard border between Northern Ireland and the republic of ireland after the brexit former u. S. Womens soccer goalkeeper hope solo announcing she is a candidate for president of the u. S. Soccer federation. She made the announcement on her Facebook Page joining a crowded field of at least eight other candidates youre up to date, thats the news update this hour. Now to Brian Sullivan with whats ahead on power lunch. Hi, bri. Hi, sue. Thank you. Why jobs may be better than you think, we highlight one very positive sign, and will bitcoin ride continue next week and crucial moment Bitcoin Futures begin trading, well lay out what it may mean for bitcoin and explain the differences between all the bitcoin exchanges. Plus, the ttt hoesholiday toys this season, whats on the parents musthave list . Halftime report back right after this short break zar one of our investors was in his late 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. Win an uncertain world . K predictable income pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce warehouses. And private debt to finance transportation and infrastructure. Building blocks of strategies to pursue consistent returns over time from over 120 billion dollars in real assets. Partner with pgim. The Global Investment management businesses of prudential. We are the driven. The dedicated. The overachievers. We know our best investment is in ourselves. We dont take no for an answer. We fight for what we want. Even for the things that were once a given. Going to college. Buying a home. And not being in debt for it for the rest of our lives. But were only as strong as our community. Who inspires and pushes us to go further than we could ever go alone. Sofi. Get there sooner. Were back j. P. Morgan Ceo Jamie Dimon called bitcoin a, quote, fraud, last september last night he told cnbc, quote, im open minded to uses of crypt currency properly controlled and regulated, however, he says, i remain highly skeptical. Jon najarian returned from a bitcoin road show of sorts in europe hes back ahead of Bitcoin Futures trading which begins next week. There was bitcoin involved this weekend . Thats not how your instagram looked, doc . Yeah. There was a whole lot of red lines there i got it, i got it, i got it. Exactly you can buy it with bitcoin overseas by the way, judge, jamie is a friend j. P. Morgan is working on all kinds of technology they look to be along with microsoft and ibm perhaps some of the biggest people supporting block chain so even though jamie talks negatively at least some of the time against bitcoin, he is very positive on block chain and they have a huge initiative there, ibm, ak censure, j. P. Morgan, this is like a gold rush for microsoft in block chain. Why arent you giving an idea of what the conversation was like all throughout europe where you were at these conferences, doc, and the people you were talking it about what they think about not only bitcoin but other cryptocurrencies in general. Absolutely. Well, judge, in the United States i hear a lot from retail in particular, not as much from institutions and Family Offices about bitcoin, but overseas completely different big institutions and big Family Offices, i mean multibilliondollar Family Offices, london, geneva, paris, monaco, milan, paris i already mentioned i guess, zurich, i was doing two conferences a day, judge and the acceptance of cryptocurrency, the embracing behind the technology of the currency which is virtually block chain itself is amazing and extremely strong and the money thats chasing after education in the space chrks is one of the reasons i was over there, trading in the space another reason im over there because our heat Seeker Technology works the same on anything that trades, judge. So were trying to work with many of these banks and big Family Offices about that. And icos are so big, thats an initial Coin Offering of course, but i was over there exploring that for our investitue when i was overseas. Serious question, were you paid in cash or in bitcoin in some cases i was paid in cash in most, id say 95 of the cases, judge, i was paid in atheorem, why atheorem number one it triansacts very fast number two, bitcoin is so popular right now nobody wants to pay with it i mean, they all want to use light coin, atheorem or one of these other cryptocurrencies instead of bitcoin because when i went over it was 9200 on november 26, by the time i landed it was over 10,000, obviously went through 17,000 within the last 24 hours so people want to hold onto that bitcoin and not so much spend it theyre using it more and more like an asset, less and less like a currency. Yeah, interesting doc, give me some unusual activity before i let you run. Well, let me also tell you, judge, as you know, Bitcoin Futures do start trading here at cboe on sunday night 6 00 p. M. Eastern time just real quick. And thats on a single bitcoin future cme launches a week later with a five lot future. There will be a natural arbitrage between those products as well as of course maybe 200 online exchanges, judge. Its going to be wild. Let me jump in, let me ask you this, sorry, i should have asked before. Sure. What do you make of what we saw particularly yesterday with this incredible action in bitcoin where prices have reached in a very short period of time and how much you think that has to do with the fact that futures trading beginning this weekend i think it has almost nothing to do with that, judge. Really . My personal opinion. Why because 24 hours a day, 7 days a week bitcoins trade on like i say close to 200 different exchanges. Its great, but a big exchange with occ, thats the options corp. Behind it here at the cboe or the cftc product at the merck when that comes out, its great those will be there because institutions will be able to transact and be safer b this already trades all over the place. I think the bitcoin runup is mostly because people are just holding onto it and not so much you can short it of course, you can buy puts on it already online, but people dont do that people generally are just hoarding this thing, as you know, the feeding frenzy has driven this thing straight up. So i think thats more behind the runup weve seen. We heard questions, you know, beginning to be asked especially yesterday as to whether somehow this marketplace was being manipulated in some way ahead of going into the weekend where you could start shorting it. Well, again, whoever says you cant is wrong already because you can and you get paid to short this thing. Because if you lend your bitcoins, judge, you can get paid by any of these online exchanges. You can trade puts, which is of course a bet on the downside Order Protection against your bitcoin. That already exists. So theres a lot of misinformation about why this its just a Risk Transfer vehicle. When these things come online, its just going to transfer from one to the other these people are going to get hedge. Let me give you that unusual real quick. Real quick. Real quick. Intel 44 call. January 5 expiration, thats it. Okay. We appreciate it tweet it out as well, doc, with a lit l more information on it for us well forward to folks who want to know. Have a good weekend. Well see you back here. I will. Thank you. Were going to futures pits for trades next. Have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. The moment a fish is pulled out from the water, its a race against time. And keeping it in the right conditions is the best way to get that fish to your plate safely. Bacteria can multiply to high enough levels that even cooking it will not destroy all of them. Its definitely the most important thing in my business. How fresh is the fish . Where it comes from . How it gets here. The more i know, the better. Sometimes the product arrives and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. We took our world Class Network and we developed devices to track environmental conditions. This device allows people to understand whats happening not only with the location of that asset, but also if its too hot, if its too cold, if its been dropped. Its completely unique. We ship fish, beef, poultry, vaccines, insulin. This is about monitoring and protecting everything we ship. I catch all this amazing, beautiful fish and then once its out of my hands, i have no control over what happens to it. If you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. Its really all about the network. You are looking at trillions of transactions a year. Not too Many Companies in the world can even scale to that type of volume. Who knew a tiny sensor could help keep the food chain safe . Food has to be fresh. Its that simple. Welcome back to the Halftime Report we are watching crude oil catching a bit of about 1 today. Wti still on pace, though, for its worst week since early october. Whats the outlook here . I think that sounds a little bit worse than it actually is. You saw the china data yesterday. Second largest month on record for china imports. Little over 9 Million Barrels a day. This year theyre going to take over the Largest Crude Oil importer from the u. S. When you look at the weekly charge, definitely a bad week. But were coming up off those lows into friday i think its a Good Environment to go Higher Crude Oil trading just above 57 a barrel some people are saying 60s are in the card by the year end. You think maybe we go lower . I do, jackie. Were looking at a low range of 56, 59 on the up side roughly. What bob is saying is right. In the middle east tensions have been high. But seasonal factors theres been a drop in gasoline demand and also the dollar is a little stronger so i think we test those lows one more time before we try to hit the 60 mark all right thanks, guys meantime, back with a live show on tuesday 1 00 p. M. Eastern scott, back to you thanks so much. Final trades coming up next. Plus well look to earnings next week this is where i trade andrs. Manage my portfolio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access 24 7. 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Welcome back Credit Suisse identifying their top stock picks for each sector moving into 2018 lets trade some of these names. Home depots on the list jpmorgan is on the list. Halliburton, vertex, walgreens what do you think of these picks . Microsoft, oracle, facebook . I like they said jpmorgan it might not be the bank stock that has the most upside because its almost a premium valuation to some extent so its not going to move as much as a regional at a bank rally but if theres a correction at some point last year, if they havent been outlawed forever, this is the kind of thing that holds up better than some of the higher bank stocks. And i like oracle theyve got earnings next week thats a stock youd want to own. What about mondelez depot . Halliburton . Depot is safe one name i really like is ten core everything weve been talking about autonomous driving, its going to make sense. And klatencor goes into manufacturing chips. They should be in the drivers seat in 2018. Paypal. Paypal has been one of the qu t quietest monsters of this year and i think continues. I mean, venmo, everybody is using it its the most convenient way to pay. And not monetized venmo yet as soon as you start monetizing that it will add to the bottom line how about j j i dont see it as a barn burner steady eddy i like deere. Im in deere. I dont think its other interactive is on there they own tinder and match. Are we looking at the sam list i dont see klatencor it should be on there lets do final trades delphi spun off you can only do so much i got the report right here only a ball of clay to mold go ahead. I like both those stocks. Spinoffs are good to own i bought j. D. Yesterday i like it. I didnt want to buy more baba shack is up, i am not a seller all right power lunch starts right now im melissa lee, happy friday heres whats on the menu. The American Economic engine humming along nicely unemployment at a 17year low. Wages rising whos hiring what impact will tax reform have on jobs and how will the fed react . Well debate that. Plus a wild week for bitcoin soaring thousands of dollars and then coming back again Bitcoin Futures will begin trading. Will it make the cryptocurrency more stable and respectable . And the ildfires ravaging los angeles intensifying hundreds o