I dont know what that is. Wow. Santa claus is coming down the chimney early. Its not me maybe they signed that bill its an alert. Lets begin with this debate on shares of facebook, okay. Up 50 , as we said they are down just a little bit today. Moffat nathanson conclude in all things media they wonder whether theres much left in this stock. Sorry i think there is a lot left. Thats me, judge i think there are potential bumps in the road and we know what most of those are european concerns about security and privacy. I think thats among the biggest concerns youd have. Regulatory . Yes. Regulatory out of europe. Look, they say the bear case has become clear they say core facebook may have run out of room to increase its ad load and losing users from young demos. And yet they will see Revenue Growth of 30 and margins go higher they have instagram so they are actually addressing the younger crowd. Havent even monetized oculus or wha tsa pp i dont think it repeats 50 year over year i still think its a secular winner i would not get off. You could substitute facebooks name with so many other names in the mark, especially in tech, given what technology has done this year as to whether its simply time to take some profits. Absolutely not. You dont get out of facebook and i 21,000 agree with you one of the negatives that they posted throne was about the lack of monetization on the messaging platform i look at that as a positive they are signature on whastapp, a gold mine, something you communicate with for those who dont know globally, whether you have an iphone or not or holding a samsung or other device you can use the app and they have not touched the surface on this monetization i would not touch this. Even up 55 . It does take into hi count the Global Expansion as long as you have the synchronized Global Growth story youll vint National Expansion they talked about that the last couple of quarters on the conference call. Its important to them thats the one that drives is going forward. Judge, i think this is a very extensive note, right . One of the things that they are going to do, scott, is they are going to, as facebook has announced. They have got tools now to let you notice when you are in the background, for instance, of a photograph, before somebody else even tags you. Yeah. So that you can hopefully then manage some of those issues that i spoke of, so, in other words, they are trying to get out in front of this trying to get out in front of those. Its not as if these people, Michael Nathanson who wrote the note, hes not bearish they have their buy rate on the stock. Their price is 205 which is why i think its even more credible perhaps is that they just raised some serious issues while acknowledging the bull case that all of you have made and openly wondering whether theres still a tremendous amount of upside, at least in the near term cycle. Yeah. Youve got to resnaekt. You do wonder if its going to be capped at some point in time 200 a share, when is it going to hit 200 a share . Look at the fundamental story on top of Everything Else they still have video growth and to stefs points, where are the younger folks going . Two places, snap and instagram well, instagram is the one that shows continued unbelievable growth, and meanwhile you look over at snap their growth is not unbelievable, been decelerating ever since they came out as an ipo but look at also zero debt and 38 billion in cash what can they do with some of the money and the cash flows that they have maybe if theres an area that they have to, whether its r d or acquisition, they are still in a great spot. I also want to throw out one thing. They actually set guidance very low in the last quarter because they are front loading the expenses to deal with the Security Issues that they have had to deal with this year so i think that the setup is actually pretty good i think its the least own phang name out there so the riskreward is pretty attractive somebody is asking if you should get out and trim some apple. Apple had a rare downgrade to neutral in part on worries about the iphone why why would you do that in front of the cycle thats absurd. The isps are going higher. The company is not expensive a nice run and the secular growth story is still there. A very sticky user base there, too. The retention levels is off the chart, and katie huberity is the one that points this out if you want to know what is going on in apple you listen to her because shes been right and listened to her for a decade still focus on the phone the phone is not the entire story any longer in apple, and the story is the growth. Its a services serbs and by the way, this fresh in the rest of the world, particularly in china, that will be something that surprises people still. I think maybe the Biggest Issue with this downgrade in all, you know, fair disclosure, we asked the analyst to come on and discuss this note, and he declined, is is if you think a market itself is going to go up into 2018 because of taxes and picking up growth. Dont you think apple is going to join the party or be right there, too how is the market going to go up and apple wont go up . Though theres been times when apple lagged the market and weve said we cant go up without apple. Weve seen the market is going up and apple has lagged. Everybody is whats wrong with apple . Why isnt apple part of this time pauses in the market and talk about it all the time in sectors and specifically even in apple where youve got this monster, this behemoth and theres always cat lifts in front of why a s l going to move. Doc i love it i was in there doing my channel checks, judge, and checking out the apple watch. Apple store this time of year, they are all packed. You cant get the x right new. Youre waiting a while for the x. I dont know if thats the most realistic channel check. I agree. Tongue in cheek. What about everyone shopping online right. But when you take a look at the watch and, you know, for instance, you want the gps version of the watch where its still somewhat tethered to this or to a hot spot, thats not what everybody wants right now, so its a 100 upgrade to get to the one that has the data plan and so forth and connects to your cell. Youve got unlimited data with whatever youre use right now. Only costs you another 10 a month then so they are totally into expanding this universe. This Third Generation watch, judge, is going to blow it out for apple. As much as i wasnt a fan of the first, this is the one that will. This brings me to dubrovko. Everybody is bullish on tech, facebook,apples, others. You say no way, not from the individual stock standpoint but tech is going to be a loser in 2018 why . You know, so i cant disagree on fundamentals. I fully agree on the fundamental story for tech i think it remains intact and will remain that way over the coming quarters. The part that concerns us is a little more when you look at positioning and relative valuations in the market, sector versus sector. Keep in mind that, again, the secular growth names, tech, he can father there as we will have been the key leaders so far this year were basically getting closer and loesser to the finish line is an important trigger point for rotation in the market that weve been arguing for the last few months weve already seen pretty violent moves in the market in the second half of november, early parts of december and money flowing out of tech. Its not a concern on the fundamental sided. You think if theres a sell on the news of a tax plan like this one that tech is the most vulnerable place because its not going to get the biggest benefit. Right. Combined with the run that its had. Exactly. Its more on a relative basis where we see tech underperforming or lagging some of the other sectors i do think that as you go into late january, early february, q4 Earnings Release thats a period where some of the growth names start to go but with the my crow news as you call it, i think the growth areas are vulnerable and a lot of value areas that lag likely continue to catch up. You think the s p is going to hit 3000 next year thats your pace case . So the 3000 for us fully incorporates tax going through and become effective starting january 2018 we think tax in itself brings about 10 in edpfs which could translate in the multia to 200, 250 points and more upset on the tax side and then on top of that you have a relatively decent organic and fundamental story globally and everything remains intact. Think of where sentiment is ful market is going to go up another 300 points in the s p, dont you believe that the f. A. N. G. Names and apples of the world and other big fames in tech are going to be right there. Im not disagreeing the sector positioning is morrelltive. Theres an interesting opportunity now to be underweight tech tactically speaking you revisit that in the coming sort of month or two, but, yes, i would agree that growth in general is a style and performs in line with the market, so im not saying growth in general lags, it performs in line with the market but doesnt give much upside. Do you think the Value Technology stocks can actually outperform and the Growth Technology stocks. Yes i think you have to get a rotation, and whats really interesting is when i talk to a lot of investors in the u. S. And globally, many people are still not positioned for tax many people have come back telling us i want to see this thing going into law and only then am i going to position, so i think theres an entire catchup trade the writing is on the wall though it seems at this point, barring something totally unforeseen. But many people didnt want to stick their neck out ahead of time, guessing will it go through. Will it not. Let me wait and get it and ill revisit. Earnings revisions havent even started. All right what about the idea somebody put forth this thought earlier on one of the other programs that you could get an ugly january just because people are waiting for taxrelated selling. They are just waiting to get into the new year and then they will sell some of the big winners. Any belief on your end that that happens . I think theres too many positive cat lifts to see a big pullback right now i think we could get a bigger pullback getting into q2 and q3, q1 is relatively well supported and january we could get a pretty outsized rotation still in the market. One thing i havent mentioned, theres a lot of money sitting in the autopilot programs that are momentum chasers they tend to basically chase with a lag very little of that has kicked in we think that kicks in january and february. So the the spread between and sector weighting between tech and financials has obviously been as wide as its been in nearly a decade. If youre suggesting technology is kind of in line with the s p and maybe underperforms, are you therefore suggesting that tech financials play the catchup and closes that gap . Yes. We still like financials as a sector weve been long the space for two and a half years, and i would still say its the highest conviction overweight, and i see financials as a value play that has more sustainability, unlike certain other parts of the market, also value plays like retail that are challenged but not sustainable. When i think tactical i think short term thats essentially what youre saying about tech. Yes. Are you speaking with the same kind of time frame for financials, or do you think that they actually have this rebirth, you know, rates 2 hadn. 43 today. I think financials is more sustainable, so financials i would call less tactical and call it more strategic. Thats what i was getting at. Scott wren, by the way, has one of the lowest s p targets on the street, the senior Global Equity strategist at wells fargo and joins us from st. Louis. Welcome. Hey, guys. I wanted to join you because dubrovko to my left has one of the highest targets at 3000 and youre at 2700 im wondering why a 300point gap between two strategists who look at some of the very same things in the market but but come to a very different conclusion why do you think next year is limited . Well, you know, actually, ill tell you what, weve put pencil to paper. When we put that target out there 2700, we were basing that on just 50 expensing of Capital Expenditures and a 23 tax rate. Now that its 21 and 100 expensive expensing, you know, thats going to push our number up which i think well be out with a new number here in the next few days probably, Something Like that, so, you know, we were not expecting, you know, we were not expecting the magnitude of the tax program that is almost undoubtedly going to be signed today by the house and tomorrow by the senate to become law we underestimated what what the final result would likely be. So youre underestimating it. Yeah. So i think what youre going to see, you know, theres pressure upside to our 1 hadnt 45 earnings number and pressure many upside to that 2700 number. When we take the new parameters into account, youre going to see some upside to those numbers. Sounds to me like youre get closer to where dubrovko is. Well be closer, but i dont think well that be high. Youre at 153 on earnings, so that sort of speaks to the kind of push that you think tax reform is going to give the earnings picture. For us, next year we have 143 excluding the tax benefit and were modeling about 10 fro tax based on the latest details. That brings us to 153, and, now, theres going to be a number of unknowns that we basically have to see as earnings get released and companies provide guidance one thing that we dont always know is Pricing Power of Certain Companies so not all the benefit will flow through to earnings but passed on to users another aspect is the consumer side so low to middle income i do think will likely get a relief they start to spend and i are underestimating someof the positives on that side so give give or take 10 bucks on eps. Sounds like the case is being made on the desk and dubravko and scott hours away from raising his own s p targets, that next year is a lay jump everybody is saying its a layup. Theres nothing to be worried about . Theres no belief that stocks are going to do anything but go straight up from here . You know, the market is never a layup, and once you think that, and i hope that not a lot of people think that, but, you know, were going to be in 2018, we as strategists i think, no matter what youre target, is i think well have to be on our toes because i think well see more volatility, and were going to see more opportunity. I mean, this thing is just not going to keep marching straight up you need to have a plan, whether its pullback or whether the market runs up meaningfully higher than whatever, you know, the target is. I think well have some opportunities to do some things in 2018 which really in 2017 we didnt because it was just a oneway street the whole time. But im still hearing, courtney, if you get a pullback it will be bought faster than a new york minute. People wont wait around people who arent in or want to get more exposed will use the advantage of a pullback to continue to buy stocks. I think they will as well, but theres two sides to the trade, right somebody is buying and somebody is selling and they are buying and selling for different reasons. I think there are a number of things that pole tensionally do cause for something catastrophic next year, but if youre thinking about just the earnings and where we see Earnings Growth, where we see Consumer Sentiment and the potential growth in the fundamentals of the economy, i think you will consistently see a slow meltup, scott, in the words that you like to use most definitely so i absolutely agree 3,000 is definitely in the realm of possibility by the end of next year. Catastrophe, barring any sort of catastrophic event going on next year. Steph, how do you see it . Well, i think were close to 3 gdp Growth Without tax. You look at the retail Sales Numbers from last week and look at some of the manufacturing data that weve seen for the past couple of quarters. Housing permits are at cycle highs. This is without the tax. Im actually curious to see what you both of you believe gdp will get to with a tax plan i dont know that i would pay a tax plan with 4 gdp growth. 3 is good enough for Earnings Growth so im sort of curious where you fall out on that. Judge, meese go with that because i had a question. Jpm, were basically calling for low 2 . Gdp and then were seeing the tax itself could add an additional. 1 or. 2 on top but then, again, some of these things why so modest well, because i think, again, a lot of people are waiting for more clarity to see what kind of effect the tax bill up leashes not just on the corporate but i think on very importantly on the individual consumer side, and i wouldnt be surprised if you get some of these numbers getting revised a little bit. You dont think that the corporate boost from 21 from 35, even the effective rates you can argue who pays what, isnt going to be a boon in and of itself yes, i do think it will drive positive revisions i think some of the numbers are catching up but slow in the process. And to scott wren as well as well as courtney and dubravk sglo why dont you just ssay to everybody. I know where these four are. In particular for broad market strategists like myself, i wonder if its being modeled in enough in other words, people say, well, its priced in or its not priced in. The point that cramer was making yesterday that numbers are still too low. Thats my point exactly. And in the low 2s gdp thats all hes saying. Im not saying youre wrompingt im just saying theres a very not pessimistic but not optimistic view of how much of an impact this could actually have. Are you pricing in were positive. Youre not pricing in infrastructure at all. Right, and the possibility does exist youll get an infrastructure bill. Back on the gdp numbers, earnings numbers i had many discussions with stock analysts they are still not revising their numbers. They are doing analysis but thats what im saying earnings revision also only start to kick in in the coming weeks thats my point. And they are underpriced. With or without any on the gdp story, you know, without any tax reform, we were at 2. 3 the assumptions that i mention that had we made earlier which were not aggressive enough, we were at 2. 6, and i think its rational to think because were putting pens dwroil papil to pax bill getting passed is worth a couple tenths more to gdp so were inching up there may be towards that 2. 8 number so, you know, were were optimistic in terms of Economic Growth with this with what this final package looks like. Courtney, why dont you make your point as well. Were in the exact same position what youre seeing though is the conservative optimism. You cant kind of price everything in, so we would love to see an florida from a package come down. Thats icing on the cake at the end of the day if you look at what the market is doing, you cant price in every single thing so you kind of play with the models and figure out where you want to come in. I think the numbers are accurate and you revise as time goes on, but you still get to that optimistic level its just how optimistic do you want to be, and i think everyone is playing kind of conservatively and probably rightfully so. Appreciate you coming on, scott. Have a good afternoon when are you going to revisit the number something out of us in the next couple of days. Give us a heads up. Well look out for it. Scott wren, wells fargo. The house set to vote on the tax bill as we said a few hours from now ylan mui following the money for us on capitol Hill Reporter that volt in the housing is expected to come at about 1 30 or 2 00 or so, and the only real block of opposition within the house gop is coming from republican lawmakers representing those hightax states, new york, new jersey, california, who are still unhappy with the limits to the state and local Tax Deduction but they are not expected to sink this bill so assuming that it passes the house, the senate is going to go right afterward. They have up to ten hours of debate in the senate, though senators are not expected to use that entire time and Majority Leader Mitch Mcconnell does expect a final vote in the senate on this bill later this evening. Now, a question mark still hangs over the vote of jeff flake of arizona. Last time we reached out to his office, he said that he was still undecided, but the gop has the votes to pass this, even without him. Still, Vice President mike pence is coming to capitol hill to have lunch with republican senators hell be presiding over the vote in the chamber later on this afternoon so hell be there just in case he needs to break any ties. I wonder if you get at all the feeling that senator flake has waited or is waiting until he knows that there are in fact enough republican votes to get it passed and then it wouldnt surprise me one bit if he came out opposed to it because he has the cover of knowing that its going to pass no matter what. I think that it was clear on friday or actually yesterday, my dates are all smooshing tagge together, clear were collins and coaching came on with the bill and mike lee of utah that republicans would have the votes. Jeff flakes concern is what is going to happen with a deal that he struck with leadership to find a permanent fix for the children of undocumented immigrants so a separate issue all together that could weigh on his decision whether or not to support the tax bill. Well see what the senator does ylan mui live on capitol hill and dubravko, thanks to you as well. 3000 is right up there with the most optimistic of forecasts. Have a good holiday. Thanks for having me. Halftime report just getting started. Next up, one analyst call. Game on for Dicks Sporting Goods. Loves dicks bats and balls. Now is the time to jump in the call of the day is next. Before the break, our data partners at kensho on the etfs that have scored the best in the last two weeks of the year over the last five years. Topping the list, telecoms, materials and ilieutits. The Halftime Report is back in two minutes. Another day of work. Why do you do it . Its not just a pay check, you actually like what you do. Even love it. And today, you can do things you never could before. Youre developing ai applications on the cloud. Finding insights hidden in decades of medical documents. And securing millions of iot sensors. So get back to it. And do the best work of your life. Traders theyre always looking for advantages. The smart ones look to fidelity to find them. We give you research and datavisualization tools to help identify potential opportunities. So, you can do it this way. Or get everything you need to help capture investment ideas and make smarter trading decisions with fidelity for just 4. 95 per online u. S. Equity trade. Fidelity. Open an account today. All right. Were back on the Halftime ReportDicks Sporting Goods is higher 35 price target better sales margin from cold weather. Yeah. Industry working inventory. Look at the valuation level as well. Like the exposure to adidas what do you think . I think at this point in time it makes sense on why they would decide that this is a buy with a 35 target when you look at the fundamental story right now and this is a good season, as you mentioned. Part of that did include, hey, cold weather which means we get a little better margins. Because of that, scott, the most difficult thing that they run into obviously inventorywise and if they are efficient and doing things right, which i believe they probably are at this stage after going through a very difficult time and the stock getting absolutely hammered to the downside, i think that this is probably an opportunity. Trades only ten times. Yeah, but earnings are going to be down 20 in 2018. Well, they say sales could be a surprise to the upside. Only down 18 year over year. I think that earnings are really i think they will be spending a ton of money on investments so margins dont have an opportunity to go higher quite frankly they go lower, and on top that have you still have problems with the top line growth they are stale distributor, full, and they are having problems these Big Box Stores are not going to go out. They are not going to go out of business, but they are going to continue to have problems and thats why you want to be with the name brand and producers of the product, if you will. Rather be with the nike or under armour or pbh. Maybe working against the story as well as the stock has had a nearterm bump of almost 12 in three months in it has. Its recovered from a lot of the dismal performance still down 45 year to date. Yeah, and, sure clearly can pop above looks like it will go 30 and no disrespect to the city an limits would i rather hear from the company itself, far more confident Earnings Call than weve heard over the last couple of quarters. When you get that, then theres a reason on a longer term fundamental basis to go and buy the strong this is more of a trade. A trading call. Beat, they are realistic about what may go wrong that sales dont recover and multiple doesnt get rerated. Right. So, you know, really what its come down to and you look at the names that have been outperforming as of late, give you a great exam if you have a strong ecommerce than you actually can still be bricks and mortar but youve got to be strong there look at walmart. Its been fairly flat lined because it already made that move its been a 97 and 99 stock. I think its the same analyst upgraded walmart, by the way, to a buy today. Right. Now you could obviously say is that a little bit late. Prescient. A little late. But not late if you believe if you believe in the story. And you also have to understand one thing about walmart in this case, 60 of the revenues comes from grocery. Whats the lowest margin of sales that you have out there, in grocery because of that youve got to keep that in mind when you look at walmart and why it trades where it trades versus the competitors, a target or if you want to go bigger box like costco. Would you have both walmart and costco. You can do both you know what target has done recently they did a whole acquisition as well and did the whole thing they are getting bigger and already growing at a 20 clip on their ecommerce so when you look at those two, not the same stock. So different in so many different ways of the target 54 to 64 thats a good move. If walmart was based in cheboygan, would that be too much i like bentonville. Its awesome but take a look at the chart of walmart in the last month. Done nothing before that it had a big run is it pausing to start to pull back once again . All the companies that supposedly amazon was putting out of business, thats happened to hit a brand new high yesterday, best buy. Target has done pretty well and walmart has done well. Krogers, a lot of names you can bring up right now these were all done and cooked because amazon was cooking everybody and lock at them right new. Maybe kroger has been bit up because i think a deal is going to happen somewhere. Possibly, but just real quick, seasonally understand a lot of the lag yard lines like a Dicks Sporting Goods. At the end of december they generally try and come back somewhat a little bit so i think that thats important to keep in mind that the fundamental story doesnt change very much its more about pumping up the portfolios so to speak a little. Security . Its the fundamentals and when you speak of the names that have come through many amazoned, if you will, think about best buy, weve been bullish on it. I bought it, and remember when it dipped significantly. She gets it, scott. Im up 26 in the name in a very short amount of time. Why though they are thinking about how it is that they remain competitive. Im not going to walk out of best buy if best buy is going to match the price that amazon has, right, at the end of the day the same thing with walmart. People arent buying online as much at walmart as they are with amazon but who knows where the growth will go how are you adapting to be able to compete id take costco with a 10. 7 stock. You dont have to pick one. You can hold both. I guess you can but i follow like in retail you want to own the companies with a Good Business model, and they have a proven amazing model with recurring revenue an they just but up a crazy doubledigit comp number that walmart and target would die for. They would. You choose costco over walmart. I do. Its expensive so i wouldnt buy it right here, but youll get a pullback this company is doing all the right things, and they have a lot of opportunity they just started in ecommerce. They havent been there for a while, and some people are negative about that, but i would just say that theres a lot of opportunity there, so i like that story. I have both of them and i might buy target i might have all three. You should buy target that would be a good move. All right, pete cornell. Thats my brother. Apparently. Beating top and bottom line, navistar. Beating revenues and margins across the board guidance for 2018 was conservative i like cummings and its lagged so thats the one i raised darden raised guidance, beat earnings and revenue estimates as well. Sure d. A name you want to be in theres still room to grow none downtown chicago. We want an olive garden, darden, in downtown chicago. They have one this times square. I mean, come on. I want the bread sticks. Fair point. Needham initiating coverage on michael kors with a buy. Pete they made acquisitions and look at the promotional, less of that and innovative side, they have done that and for all the reasons, michael kors, look at the valuation, not like this thing has absolutely screamed to the upside and youre look at the valuation that gets scary in the middle tones i like this move. You sure theres no olive garden in downtown chicago. Positively. I guarantee you shes not been eating at olive garden. Not three months after having that little beautiful baby girl. I get an extra 500 to 900 calories a day. All right thank you, doc. Well move on. Sure. I love you, security. Rbc, i think they are spot on with the call, judge, but they only move it up a but, you know, from what, 51 to 52 or Something Like that. I still like ford better i like this marketplace idea that gm is working on as well where you can order things from places while youre driving. I think thats kind of cool. Well have to see whether it distracts investors as well as drivers though. Joe, yesterday with francesa here you talked energy, and you talk a lot about pxd, coverageo and a few other names. A lot of names that go back to the conversation with Jeffrey Gundlach and getting exposed to commodities in 2018. I agree with that. Just from a stand point, not so much fundamentally we think its going to go up, but diversification, getting the exposure is good youre going to try to pick the winners so expect in january these four names to come out very strong just on money flow alone. I totally agree, but i dont think its just those four names. Which are the ones you want to add. Anadarko. Peter, you go got the ibrows going. Staying away from energy. Got hurt this year. Oh, my god. We all have. Sue herera has the headlines for us. Hello, scott. Hi, everybody. Heres whats happening at this hour the u. S. Calling out for north korea for directing the lunch and worldwide spread of mal wear the Wannacry Ransomwear affected thousands of computers back in may and the u. S. Spent months sifting through the evidence. As attribution becomes part of our Accountability Pillar we cant do it wrong, cant get it wrong and cant try to rush it i think ultimately at this point if we had gotten it wrong it would have been more of a damage to our represent owtation in National Security than it would have been a boon for us to do it quicker. Saudi arabia says it intercepted a missile fired over riyadh that the huthi rebels of yemen say target the the royal palace the rebelcontrolled tv station referred to the missile strike saying the poll as i was within the range of its missiles. A trio of american, japanese and russian astronauts arriving at the International Space station today. They join three other astronauts who have been aboard the station since september. And we wish them good luck thael thats the cnbc news update. Scott, back to you the najarians both found stocks that options traders are set to soar they will tell you about a tech name and fast food play come up next, and the stock they disagree on. It is a family feud over nike. Halimrertisacinwo minutes. Bk t for your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Welcome back to the Halftime Report. Jon and pete at the telestrator, talking fast food and semis. Doc, youre up first Applied Materials it is. Different kind of chips, not the kind you eat Applied Materials, amat. Take a look at this one, 52. 49 right now. They bought the week little calls, the ones that expired on petes birthday friday for everybody who want to send him sglg there you go. The 22nd of december. They bought these calls. About 5,500. Very quickly ill probably be in these two or three days im not going to hold them until friday and like the upside, 53. 50. This is somebody who already made money they were selling out of the 51 calls that they bought a couple of weeks ago and rolled it up into this. A smart disciplined play pete ill give you a little wendys. Dont talk about that name very often. Mcdonalds comes up all the time. I like it. The 22nd, the 28th, the 1st and now again today, unusual activity and today they are buying the january 17 strike calls. They have been buying this stock and the options in this stock since this stock was under 14 and then in the 14s and now here it is trading a little over 16 now. They are buying the january 17 calls. 6,100 of these were bought earlier today between 5 and 25 cents. I point that out so youre not overreaching if people are looking at this thinking where things might be right now. As the stock moves to the upside once again, you can see its capped here before if it gets through there, i think its ready for a breakout going through 17 and then the options really start to movement ill probably be in this about a month, scott. All right nike is set to report Second Quarter earnings on thursday which means you guys will go head to head on this stock. Yeah. Its a brother versus brother debate. Look at that chart, bro i like it but its moved about 20 some odd percent, judge, since that low that pete just talked about i think it trades back down towards that low because people have been dumping inventories and keeping prices down. We already know that their year over year numbers wont be stellar. At least thats what the street thinks that it knows i think they might even be underestimating it a little bit, so if that pulls back, pete, thats when im a buyer. In other words, im not a buyer ahead of the earnings, im going to be like in stephanies camp where im nervous about the run to the upside, and i think it pulls back, and thats when i buy it. Im not as nervous about the upside and heres why. Okay. I bought this stock on the dip last time as you saw that chart earlier, and because when you looked at the numbers that they reported last quarter, everybody was all concerned about north america and sales were down and thats a big portion, but you know whats a big portion the international. By the way, china was up 9 so im looking for growth if im getting the growth that i want, this reminds me very reminiscent of microsoft, intel, everybody is focused on the old line business. The new line business for nike is innovation and its growth internationally. Thats exactly what they are do, so i like the fundamental story. I think parker is one of the better ceos out there right now so youve got that in your back pocket as well this name potentially, if the International Growth is the what i think it is and the ecommerce, the direct to consumer which has been their focus continues to grow the way its been. This stock is going to 75. This is what i worry about though, pete down 18 thats not my new. I didnt just pull that out of air. Thats the consensus on the street right now estimatewise if it comes out at that number, i think we trade back to there take a look at where that is i think it takes you back to about 60 i think you shave 4 bucks by waiting. Well settle it right here. Security i sold it back down below 60 and may get back in for the long term, but short term right now, im not im not betting on the quarter. Im waiting for earnings to come out and i know stephanie is right there with me. Its up 28 since the analyst day and its been a miserable performer up until then. Thats the thing we were waiting, and waiting and waiting, a fabulous 2018 story i just think its a little ahead of itself so im going to hold on one of my largest positions actually for all the reasons. Nice. You hear that shes holding on. Im holding on. Just not adding into the quarter. Scott, you remember Michael Spinks pete, look across from me, thats Michael Spinks and youre mike tyson. 990 seconds the fight lasted. Pete showed up for dinner, absolutely, pete, 100 nike is going higher. Cant blame you, joe. Sorry. Were tracking stephanie link hes new position in a bellwether tech stock ashe s dumps another big name thats coming up next. music plays throughout okay were back stephanie link making some most of the in her portfolio. Im buying intel. The stock has done recently but lagged the Semiconductor Industry the last couple of years. Trades at 14 times earnings. This is in your tiaa portfolio, right yes, it is. Its so its trading. We were talking vtia. One of many portfolios at tiaa, but its in mine. How many billions in there . Its a lot. Okay just making sure people know. This is not your personal portfolio. This is the v, yes, v. Its valuation and also the stock has lag and its also the Free Cash Flow generation. They will generate 10 billion in Free Cash Flow this year it could go up to 17 billion the next couple of years which is what real ly attracted me to it. A new cfo that comes from ebay, a costcutter and a lot to do in terms of costcutting. Buy intel and sell . General dynamics, trading at 0 times earnings done really nicely for us the last couple of years and i think its not a tax beneficiary were starting to hear they may have groom mix issues and took some money off the table and put it in intel. Thanks. The gang is talking bitcoin next what else. Thats when the Halftime Report comes 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. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Another day at the office. Why do you put up with it . Believe it or not you actually like what you do. Even love it. And today, you can do things you never could before. Youre working in millions of places at once with iot sensors. Analyzing social data on the cloud to create new designs. And using blockchain to help prevent fraud. So get back to it and do the best work of your life. Welcome back to the half time report. Bitcoin futures on the exchanges are in the red today jeff, what do you make of the volume of contracts trading here we dont have a long history, of course, but what do you think is going on well, courtney, lets keep in mind, a lot of people are still gaining access to these futures market it takes a long time to get set up and some of these platforms are not offering bitcoin so by and large im impressed. And lets remember, bitcoin was trading 7,000 when they announced here at the cme group they were coming out with this futures contract that was halloween so its been a sensational move but were in price discovery, you have to give it time its only two weeks old, courtney. From 17,000 to 18,700 jim, how about key levels investors should be watching since weve had this big run how do you figure out the levels you should be watching well, you know, the data we have in the futures contracts is obviously in its infant stages but you can look at the shorter term charts and that can fit in with your longer term view point. I think below 18,000 looks weak to me. Im also a little bit of a bitcoin bear in that the validation of the two futures contract its a lowelly trade. I think its buy the rumor sell the fact so we could have a pullback. A very lonely trade. But you need two sides right, all the time amen. Well talk about that and more coming up, thanks, guys, on the live show well talk about the bitcoin futures, trade them live plus we have former u. S. Representative ron paul to join us to take on the cryptocurrency and one of wall streets biggest bulls, jonathan golug joins us toalk markets. Final trades from the half time crew coming up next, stick around 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. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. You myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. When the moon hits your eye like a big pizza pie, thats amore there are at least a dozen olive gardens, none of which are in the loop however smith in minnesota tweets its only 15 minutes on the blue line you have to get on the el but you can do that. Really, scott just saying salad and bread sticks alfredo sauce and dip you know you like that final trade . We didnt get to talk about it yesterday but i like what paul singer at elliot management is doing here, a stake in akamai, hes been successful with citrics. Pinnacle foods, down 15 . Mna synergies come in next year. I like the stock. Is that in the tiaa. It is. Jd, peoples republic of china but excommerce i think a lot of business going through this upside call activity. Ive been in this for a long time just sold it friday. I see activity in there today. Snacks frommor east coa ofrom o. Disney. We cover the name at luke capital. We have a hold on it, courtney has a buy on it. I think the fox deal will be huge. Thanks for watching power lunch starts right now. The biggest change to your taxes and corporate taxes in 30 years about to happen in minutes. The house on the clock the vote that could redefine the tax code for the next decade well bring it live with full Market Reaction within minutes l will that tax vote give it the green light . Well debate and its not just your portfolio. How will that tax bill impact some of the most crucial parts of the American Economy from retail to real estate . We break it down for you i im brian sullivan