Dow tracking up nine months in a row. Unbelieveable First Time Since 1959 s p same, First Time Since 1983. Nasdaq tracking six months in a row. Is next year going to be anywhere near as good as this has been thats a really good question, and a think a real financial adviser, somebody thats serious about what they do, take a year like this talking to their clients around this time of the year, the whole job is expectations management thats really the big picture so were having this conversation and telling people that this was a year you could not have afforded to miss because there arent going to be a lot of them and its very rare you would get two or three of them back to back, an amazing year of no volatility, never got near the never got near the 200day moving market and now were thinking about next year and were seeing whats the appropriate Asset Allocation, and we came into this year overweight international stocks. Were going to do the same thing going into next year on fixed income we are concerned about the yield curve and inflation. Were overweighting tips relative to the traditional fixed income basket, and then when you think about what could be the sleeper theme that nobody is really talking about this year which is a fun game to play but it also could have a lot of profit potential as well, were thinking about commodities take a look at the xle finally youve got some semblance of a chart that seems to want to bottom on an absolute basis. Scott, when you look at it versus the s p, much the same signal and you take a look at the bloomberg commodities index. Thats down six out of the last seven years. Nobody wants to look at it or talk about it. If we stop getting hotter inflation, these are the areas of the market that i think money is to be made and this is the kind of thing were looking at right now. J. J. , people are going on their t. D. Accounts and have seen they are getting 25 out of the dow and 20 well call it on the s p and its probably the prevailing question. J. J. , how do you think next year is going to be how is it going to go . Is it going to be as good as it was . Is the getting still as good as its been . What do you tell them . Anybody who comes in and thinks this is the norm is fooling themselves theres plenty of Historical Information to put things into the right perspective. What i think may happen next year because of this tax bill, we have such an interesting end of an amazing year, starting a new year with the biggest taxi are form weve seen in 40 years, im nervous for the First Six Months of the year because i think a lot of people are pushing their Capital Gains into next year. Normally we come back after the holiday break and people are anxious to buy i think you may see the exact opposite this year people anxious to sell, to take some of their profits and do so ata lower tax rate so although the earnings continue to be good, and i think eventually earnings always driest market and will do so in the last half of next year, i really feel the first half of next year we can have a lot of selling pressure do you agree with that you know i do. The january effect is going to be a selling effect. Yes you sound surprised. Ive been consistent on this for several weeks, but i want to add to it something that you and probably josh will agree with as ale, im only excluding you because youre not so much the asset allocator, but Asset Allocations are out of whack. I think he wholeheartedly disagrees with you, but thats fine Asset Allocations have gotten out of whack because of the asset rally and people are generally going to be trimming their equity allocations rather than adding to them, generally and not everyone if you look at your Asset Allocation in november and december, youre saying, look, lets bridge it into 2018. For me im taking advantage of it on both sides as a Portfolio Manager, ive got stocks above their sell target no ways in the next four and a half days of trading that im going to sell them and give Capital Gains to my investors who will flambe. Trinity, nike, stocks that have done very well and above their sell targets for me. Has soon as they start to roll over in the new year im out that doesnt mean i rush back in and invest that money to j. J. s point. If you have clients saying, okay, farmer jim, wheres the s p going to be . Can you imagine at the end of the year. As you ride in the tractor and taking the call on the cell phone. Which is where i get some of my best thoughts. What do you tell them i tell them exactly what i told you, nothing different. I expect volatility and particularly to the downside to crop up in january, in the First Quarter. Now, im not saying head for the hills, but im saying if youve got highpriced stocks in your portfolio, again, im a Portfolio Manager and i play an asset allocator as well. Im primarily a Portfolio Manager. You have a tax plan signed by the president. And youll end 2018 as a higher level than right now, and i said this on wednesday i think there will be a point in the First Quarter where the s p 500 is below where it is today. Dont you feel like the normal sector rotation is slowed this year compared to last years also as you head through december, i feel like they have slowed down on a lot of sector rotation because its not only the individual Retail Investors because managers like themselves havent done what they normally do in december. I think, judge, when you look at november home sales, best in a decade, okay i look at polti and lennar, both stocks up 17 . Possibilityi is a much smaller stock and lennar is 57 to 64 in the last couple of months and a big part of whats going on in the tax program and so forth to your point with jim, i didnt see them cut Capital Gains faction. Can i feed you on this. Yeah. On shortterm gains you pay the ordinary income tax rate which has been cut. True. But not for the longterm holdings in other words, i dont really see that rush of folks to sell into next year. So i feel like this is selling happening, and its just not in the popular stocks. Take a look at the yield plays in the last week they have been absolutely hammered down 3 and 4 in five trading days iyr, the reits, tlt hammered. You have to go up by a heck of a lot more. Utilities. To upset the whole market im making the point its not that there isnt tax law selling or taxrelated selling. Theres probably been taxrelated selling in forecast. Just not in apple i dont think its as pronounced in the big winners of this year, and theres not been a change in cap gains tax rates. Do you think its not going to be as good in 2018 . It wont be the same playbook at a 16 and 17. Thats okay. If you have a diversified portfolio, you dont need every component going up together which is what happened what you need is some not working out, some working out very well and the ability in a rulesbased way to say, okay this is where im taking assets from to add to what has not been working, and if you do that not one year but repeatedly over enough time, you beat everyone nobody else can do that. How much danger is there in getting out now . Danger for for what . If you get out now, when do you get back in. To me you did have an up here in 2018 and i agree with j. J for some reason or no reason you can get off to a very rocky start and i point to the way 2016 started from january 1st to february you had an 11 rout in the s p hand much, much worse in the nasdaq and small caps and it didnt end up matter by the end of the year it was traumatic to see a lot of your gains from 15 get wiped away nobody should go into 2018 thinking that thats not had a possibility. Do you think earnings are too conservative going into 18 . Yes. I do, and i want to go back jon made one important point about the Capital Gains. Longer term it hasnt affected and shorter term it also, and i think a lot of people actually got into this market as the year went on. I think theres more shortterm Capital Gains than you would see in a normal year saw people very hesitant think about the First Quarter and even through most of the Second Quarter, people were very hesitant to get into this market and they started to rush in a lot more as the year went on. Right. So i think they are more inclined to want to get out as soon as things turn a little bit. I think there were more shortterm players and thats the reason you make a great point. Your longterm points are good, too, paced often, that and i think the fear of missing out, the wash sale rowley which means they cant get back in for 30 days of anything they are selling right now. They cant get back in next year, they can get into a like, you know, something in a similar sector and they can get into an etf or whatever, but if they sell something, for instance, thats run up. Take apple for instance. Cant get back into apple for 30 days because otherwise the wash sale rule says they dont get to take that. Scott, youre right on one very big point, okay cash drag is a real risk thats fear of mission out but in a more technical term and anyone who has had cash this year in any degree if youvehad 45 . The risk of professionals thats exactly right. Thats exactly right. Those are the people who have closed their funds this year. Well, way let me follow on with the point that im trying to make which is that if youre 50 cash youre taking career risk and frankly thats dumb, okay . Youre trying to be a here, o. You dont need to do that. If i sell a couple of stocks in jer and end up with 10 cash and lets say i sit on that for six month and the s p funded rallies of 8 in the First Six Months of the year, ive given up 80 basis points my career is not at ring am i going to take a lot of grief from clients sure they are going to say why are you sitting on 10 cash . The rest will do a very, very simple question if not point of view or combination of both. You just got a potentially gamechanging tax bill signed into law, the first time this level of tax reform or tax cuts have been done in a generation how is that going to be anything but positive for the stock market because the stock market doesnt wake up on january 1st and say how is it priced in if you are saying earnings estimates are two low. 200 basis points in multiple expansion since the economy. Lets say the s p earns 150 a share. Hold on a second. Youve made the argument consistently for month after month after month that tax reform was not priced into the market. And i was dead right. Look at the rally after they actually went if its not priced in, it wasnt in the market. Okay. How is 2018 going to be. Let me ask you a question. A rough year then i dont know theres going to be no impact to the stock market . I think there will be an impact to earnings and sentiment. I dont think that i can divine the difference between the two maybe somebody is good enough to do that. A positive impact on earnings, a positive impact on sentiment combined with where rates are, not only here but around the world, isnt that a recipe for success in the market i think its more supportive of further upside than further downside but once again i think you have to acknowledge the fact that weve got take a look mat what Retail Stocks have done over the last two or three weeks. What started out as a short squeeze, dead cat bounce for most of these charts, when the tax legislation hit the floor, these stocks went bananas, and the sell side will point to, oh, yeah, because earnings no, no, no, no, no these are Companies Paying an average of 30 in in taxes, the highest out of all sectors all of a sudden their future looks a little bit brighter in terms of what the earnings will be next year it has nothing to do with they were smart to display the red sweaters versus the gray sweaters thats note what is going on youve had huge moves in a lot of stocks and a lot of it is because of whats happened in the last two weeks with tax reforges so the question is does this just continue do we reprice in tax reform every month for 2018 i dont think thats how its going to turn out. Never has in the mast. Scott, one thing i would like to add, goes back to why the First Six Months might be rough and then we have a good last six month. As josh said, were not going to wake up on january 2nd and tax reform share and everybody gets the benefit. Youll start to see it in the first two quarters of earnings and by the Second Quarter well see the bar being raised ceos talking much more about growth and the u. S. And worldwide and repatriating some of that money and using it in a better way and that why the second half turns out to be lets not forget the new fed chair jay powell doesnt preside over his first meeting until march, right chair yellen still has another meeting. Do we think shes going to raise Interest Rates in her last meeting after justration in december, a week or so ago we dont know what the data will look like. They say they are data dependant, so shes not i dont think that they are like at a Decision Point right now. So much can happen like weve had weve had years recently where weve had contracting gdp in the First Quarter. Now, it was stormrelated or inventories were pulled forward or whatever. Didnt end up mattering, but i think on a monthtomonth basis they are way too early to be thinking about that. I think they can think about it but deciding that between now and march. Yeah. Nike is under pressure today despite beating on the top and bottom line. Pete najarian joins us from minneapolis. You and your brother had this battle earlier in the week on nike. Tuesday. You were a buyer. Jon said wait. Its going to go lower it appears hes right based on what the stock is doing today. You actually bought more, and whats so interesting, and well get to it in a second is your brother bought some today so apparently the shares fell far enough for your brother to get in whats your take on the quarter, pete my take is that it was an absolutely ridiculous reaction, but we see this all the time after earnings they are oftentimes misinterpreted and because of that its created opportunity. Target, last september, we talked about this with nike. Nike offered an ninth on those earnings as well heres the way my biggest takeaway so when you look at Revenue Growth for north america, down 5 i think that thats why people pushed the sell button thats a foolish reaction, and heres y. 43 of the revenue for nike comes from north america, so that i acknowledge. They are there losing, right but if you look at the International Side, china being up 16 and europe and africa being up 19 in those revenues so 57 of the revenue in nike right now is coming from international. You look at the direct to consumer, thats very strong i look at the management team. I think thats very strong i think this croats opportunity. Stocks are about a dollar lower right now than when jon and i debated it on tuesday. Jon was looking at the same kind of numbers that i was, that this is creating opportunity. I think theres much more upside coming to nike. Doc, youve got to help me how the here. Sure. You have this battle with pete the other day and say, im not going to buy the stock got these issues im going to wait for the stock to come down youre telling me a dollar, a dollar was enough . Pete just said it was a dollar, judge, from when we talked about it on monday. This morning i was buying it under 60. 350. It bottomed at 60. 17 this morning. As soon as the numbers hit, 60. 17. Fair point. You look tat on the chart, and josh is looking at it, august, the august level is right at 60. Hes skewing the news. You can draw a line right across. 60 was resistance for a year. It should be pretty reliable support, and if youre long i mean, this is a nobrainer from a riskreward standpoint if you want to be in nike, just below 60 is where youre setting your stop use a weekly closing chart so you dont get whipsawed and if it breaks below on good volume, the trade is over, no big deal could have a lot of support there. The tide has turned then. It was 5 lower. Wait a minute. The stock is up 20 in two months, and im in it, right the Earnings Report, and pete eel come to you in a sec the Earnings Report were fine, beat on revenues and earnings. The margins were not good, and the guidance was mr. Eh, but heres the question. You get adidas for cheaper with better growth. Why shouldnt we be getting that and rotating out of nike and into adidas, and im calling it adidas enough of this adidas. Oh, no. Hes in minnesota so i can get away with it. Ill give you my answer, jim. Nike nike can beat them hand heres why. When you look at the International Side and the strength internationally, we already talked about the revenue strengths, but how about the fact of the sheer mass of what can happen there for nike and the fact that they are getting into other areas of the athleisure world i think theres a lot of innovative factors somebody a while back said they are not innovating anymore i disagree with that they are innovating. They have the number one highpriced shoe on the market, so theres a lot of things that they are still doing right, even though they get knocked around a little bit here and there, and i think people, unfortunately, are focusing at the wrong thing. I love the fact that adidas is coming to north america and they are starting to win more and more thats great thats great for adidas. That is, thats fantastic. I love adidas, what i wear, but it doesnt mean nike is not going to win even more so because of the international growth. Hand heres the other reason. Its a good thing i provoked you because thats a good answer, man. Another reap. The Corporate Tax rate in germany, even though it was cut from 06 when it was up around where ours was is 29. Something in germany when you look at that tax rate versus nikes new tax rate, 21 and a 14 repatriation rate, jim, i think those are two other reasons you want to buy nike over adidas. Last point. Asia is where you want i mean, thats where you want to see growth theres a much bigger market there, so, yes, they missed on north america, but i think the asian part has been so downplayed on that earnings. Pete, stay with us. Were just getting warmed up on the Halftime Report. Next up, shake it up. One analysts call has investors thinking twice about shake shack. Also today, the call of the year if you listened to this analyst, you would have scored big on one of this years highest flying tech stocks. See what he likes next year. Pn a t tde ibareport with scott waerndherarss ck in two minutes 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. Were back shares of shake shack are lower today after a downgrade to underperform at jeffreys. The firm calling for a 20 decline after the stocks recent runup and weve made it the call of the day. Must be blasphemy. Im not even looking up danny meyer himself called into this program on your birthday and sent you burgers. Let me tell you something its not blasphemy and i actually like it because there was a stock that was the most shorted stock in the Restaurant Group going into thanksgiving, and in the last three weeks it is absolutely exploded trading from 32 up to like 46 or 47 a huge percentage return in a short period of time, and the only ray Something Like that happens is when you have enough money on the other side, in this case the wrong side, so what they are saying is they are bullish on the company longterm. They think theres a ton of growth and they are saying the next couple of quarters could be tough and ill tell you why they are saying it and if youre a long Term Investor you dont care at all. The company has the stores in new york and boston and d. C. High volume and 7 million per location and then they open up in the midwest and only make 4. 5 million because you dont have as much foot traffic and what that ends up doing is when they wait out all the stores, it makes it look like the comps arent great if thats the bear case, be my guest, sell, it short it this is 100 stores in the United States that even the bearish analysts concede could be 400 Stores Within a reasonable amount of time and that doesnt even count what they are doing internationally. Im long and have been long. Added to it in the low 30s not selling it love the downgrade well keep collecting your money. To downgrade the stock with the equivalent of a sell and for it to only be down. Because nobody cares. The longs understand what the real story is, which is that people are looking for lower cost options, casual dining and dont want to eat factually food this is a generational thing hand even mcdonalds get that when you look at how they have revamped the food and found a now way to go. Its like a tiny company, billion dollar market cap, its nothing. If they get anywhere near 400 stores the stocks will not be in the 40s. Well take that a tough day for bitcoin. As you know, seema mody has an update on the largest Trading Platform coin base whats happening there ongoing issues on coinbase. It says due to hightraffic buy and sell orders may be temporarily offline. They said that they are working to restore full availability of being able to transact with bitcoin. Separately there is a report from bloomberg that the former hedge fun manager of fortress, hes shelving his plans to launch a crypto hedge fund, this according to bloomberg, as you know, hes been a long time bull in bitcoin saying it will reach 40,000 in 2018. Seema mody with that update what do you guys bake of in . Doc, it will go to 8,000, the coin base issue, and the fact that bitcoinwent down 25 in 2 hours, right is this the rollover they got hit with so much bad news this week, they being cryptos in generally coinbase got accused of Insider Trading and so forth on when they added bitcoin cash. Thats still under investigation. Caused a lot of nokes to try to get out of that at much higher prices as bitcoin cash iran and hit 9,000 on some exchanges. The founder of lightcoin lick gated his entire holdings. I talked about this on the blog last week. I didnt expect this to happen so soon, but the bear case on crypto is not is not is it real or are people going to use block chain . Every company in the fortune 500 will find a place where that makes them money it doesnt necessarily translate into an upside trade in the coin itself, number up, and number two, you have to wonder if there are four currencies on coin base which is where all the retail money is and the gdax exchange what if there were ten coins, wouldnt they all be less . When you have more options as an investors and some are lower priced and thats the extent of the Research People are doing, like would coinbase ever be 19,000 if there were ten other competitors that people could put money into, so when they put bitcoin cash on which is a shock on tuesday morning, all of a sudden bitcoin starts to sell off. Its not a coincidence its because competing coins are not good for higher prices in the asset class. Charlie munger calls it total insanity for whats been happening with bitcoin Jeffrey Gundlach on the 13th with me out in l. A. On the 13th. Kept his mom out of it. Said you could make a significant amount of money shorting it right there. Said it was not legit. You guys are doing business related to bitcoin now. Yeah. Whats whats your take here well, there are a couple of things about it, so, first ever all, we are allowing futures trading so im glad it became standardized to be honest with you, scott, because you can understand people who like risks or Something Like this, and the biggest fear for us and for all of us in this market should be particularly younger people have never been involved in the market, and if it ends poorly its bad for everybody. The other thing, josh, you being a chart guy, if you look at a cart of the bitcoin itself, it was down 8,000 at thanksgiving this has been a hyperbolic move to the upside. But from that point of view j. J. , im curious what you think. Mungers specific take is dont tell me theres a finite amount of bitcoin it can only be 21 million. Like the whole case of store value is that its finite and somebody in japan orchestrates a fork where they essentially copy the code but for one new future and all of a sudden thats worth a fraction of what bit moneyer is saying this can be intimidated and there can be other versions whats your take on that it seems that anything can be imitated and particularly something with such great demand and bitcoin itself isnt going to be there, there will be someone else to take their place. Right. Bitcoin is the one that we know best, that people tend to talk about, but they talk about bitcoin i think just like some people say cocacola. Its a again rick its a generic term at this point. Doesnt mean that bitcoin itself is actually the winner that being said, i do think having the futures has helped. Obviously you say, well, hold on, its added way more volatility because weve seen a 20,000 to an 11,000 range so far this week in bitcoin, but overall i do think the more professionals who are involved in a market like this, hopefully that gives it more stability i dont think anybody wants all the volatility to go away, but more stability is probable. This is the price where the value guys like jim tend to step in and and support it. Judge, they have got six different etfs launching at the cboe thats where they Just Announced today, so the nyse, to suprem spreckers credit, well have inverse and regular in multiple different offerings and to j. J. s point, people that arent familiar with cold storage and private wallets and all the rest can trade the futures. Soon they will be able to trade the etfs that will be much bigger than the futures are because, obviously, theres a lot more securities accounts. What about the Coinbase News that were sort of digesting now. Obviously its an unlisted product so when youre going into Something Like that youre taking that risk whenever you trade atc, and thats the part that the average person doesnt understand, youre taking an added level of risk that many people arent understanding and suggest themselves to, and i knew this would be an issue a week ago when i got in my cab. They are not ready for primetime yet. Its like 13 million retail accounts, not huge atowns. Right. But theres no way that they have the same staff and operations that a t. D. Ameritrade has backing up to make sure that everything works. Like, you just cant expect it it would be incredible to expect that, but they do have backers, the new york stock exchange. They have like Big Companies behind it. Behind this also is i think were a little nationalistic when we look at bitcoin. This is driven primarily by asia and for us to say its all u. S. , et cetera, its not really looking at this in the right way. You saw huge values last night overnight, so, again. Korea, japan. And this weekend, while many people are celebrating the holidays, bitcoin is not going to stop trading. People have to keep that in mind. Well make that the last word. What may be the call of the year, the analyst that nailed this years highest flier joins us coming up, pl, usjon and pete at it again, this time in a steel stock. Halftime back in two minutes. When you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. We call that the golden hour. Theres nothing worse than when were responding to the hospital, and the hospital doesnt have the right specialist. Evaluating patients remotely, by an expert, is where i think we have a potential to make a difference. Robots can do a lot in medicine these days, but they cant think. Theyre still machines. For nuanced decision making, we still need humans. We would save a lot of lives if we could bring the doctor to the patient. Verizon is racing to build the first and most powerful 5g network that will enable Breakthrough Innovations to take place. As we get faster and faster wireless connections, itll be possible to bring those capabilities to more remote sites, and be able to operate on a patient in a way that was just not possible before. When you think about underserved areas, you tend to think of remote locations. But the reality is, an underserved area is anywhere where the person that you need, who has the expertise for the problem that you have, is nowhere near you. Low latency is crucial for things like surgery, because the Response Time has to be immediate, it has to be real. I could put on vr goggles like these, and when i move my hand, the robot on the other side will mimic the movement, with almost no delay. Who knew a scalpel could work thousands of miles away . dr. Vasquez its going to be lifechanging, and lifesaving. 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. Welcome back to the Halftime Report. Im sue her rara heres whats happening. President trump signing the gops mavis 1. 5 trillion tax overhaul into law. The first major legislative win of his first year in office. The president finalizing the tax plan along with a shortterm Government Spending bill before departing for maralago for the christmas holidays. Two palestinians were killed along the gaza border protests after President Trump recognized jerusalem as the capital of israel. Some of the passengers died in the fatal bus crush in mexico earlier this week. 12 people died in the crash and eight from the United States. And a bus took to the streets of tokyo today but without a driver the electric bus was on a oneday trial one. It navigated a predetermined route traveling at a top speed nearly 30 Miles Per Hour thanks so much. Doc, youre up first and you are watching tech. Yeah. Watching some tech today, judge. We saw some pretty good money flying into ebay they were buying the 39 strike calls and bought a lot of them today very quickly i like the action in there and lost stock so i added this one to the portfolio along with nike today. Judge. Pete what, have you got for us peep an eye on nucor, nue its hit eight times with bullish activity adding to somewhere where it already hit in the money the january 70 calls, pretty aggressive buying, already had an open interest of 16,000 they are adding to that paying 20 to 30 cents for those calls really aggressive, scott, because when i look back and see it hitting time, time and time again and the stock has been moving up steadily from 60 to 64, this tells me that somebody really does believe in whats going on and so far they have been right im in this and will stay in this for at least a month. Thanks. Just ahead, the analysts behind what could be the call of the year on halftime plus, the trades on papa johns and cintas, macys and Pioneer Resources all in the blitz were back in a flash. A wealth of opportunities. Thats the clarity you get from fidelity wealth management. Straightforward advice, tailored recommendations, taxefficient investing strategies, and a dedicated advisor to help you grow and protect your wealth. Fidelity wealth management. Their leadership is instinctive. And protect your wealth. Theyre experts in things you havent heard of researchers of technologies that one day, you will. Some call them the best of the best. Some call them veterans. We call them our team. Welcome back to our blitz. Cintas is falling despite an earnings beat. Why is the stock down 3. 5 i think its just profittaking. The stock has been a horse all year and frankly longer than a year they did everything right. The guidance was god they beat on both earnings and revenues i wouldnt worry about this. Some people are stepping out we saw this in winnebago earlier this week. They had great earnings and the stock was down its been up since then. Cintas will bounce back monday, tuesday, wednesday dont worry about it. Papa johns, the founder and ceo stepping down and got a lot of backlash after he criticized the nfl. Yeah. I dont know if thats really the reason why they have had the slumping samestore sales, a stock thats lost a third of its value and a lot of times when theres a controversial ceo and they step down, the stock bounces. In this case were selling off which leads me to believe weve not seen the lows on the stock yet. I dont see any rush to jump into it. The chart looks like had a mess. For a name thats down 33 year to date. Yeah. You know, i looked at dominos which i think is the best operator in the group and had the best chart for a being lo time and thats broken bloat 200day for the first time in years this week, and i think the whole group is a little bit challenged and i dont want to earn the worst one so im just for that reason im out. Okay. All right. Mike drop. Doc, pioneer, up again . Yeah. Pickup lately. You bet. Joe, kudos to you, joe terranova. He was talking about it again yesterday, that he had it earlier in the week. Pete cited the activity in xle thats again today hitting xle as that one continues to break out. This one is onner end of its band, judge, breaks out from here, nothing stopping it to get to 200. Jjk, gold over the last six or seven days. The last month. And whats interesting its been up even with the strength of the dollar. Did hit a low recently, but it thats momentum and looking at the call buyers at 1,300, an area i would be looking at talk to me about celgene, disappointing data from two cancer drugs, unfortunately, obviously. Yeah. Right. Thats the biggest problem, scott, i mean the street seems to be getting a little tired of the fact that they have had so many difficulty in terms of the drugs in the pipeline that they had high emt pecks agents far. Its not performed in the last quarter. Its actually down about 25 , 26 , and i love the name and seems like right now management needs a shakeup because they are not executing properly at celgene. I would look somewhere else in the biotech space. Happy birthday, pete. Appreciate it. Hope you have big plans this weekend heading into the holiday. I do, thanks, man take care. Enjoy the analyst behind what could be the call of the year joins us next if you listened to him back in february, youd be up 70 on the trade he told you about. Halftime report is back after this shes nationally recognized for her compassion and care. He spent decades fighting to give families a second chance. But to help others, they first had to protect themselves. I have afib. Even for a nurse, its complicated. And it puts me at higher risk of stroke. That would be devastating. I had to learn all i could to help protect myself. Once i got the facts, my doctor and i chose xarelto®. Xarelto®. To help keep me protected. Oncedaily xarelto®, a latestgeneration blood thinner. Significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. It has similar effectiveness to warfarin. Xarelto® works differently. Warfarin interferes with at least 6 bloodclotting factors. Xarelto® is selective, targeting just one critical factor interacting with less of your bodys natural bloodclotting function. For afib patients wellmanaged on warfarin, there is limited information on how xarelto® compares in reducing the risk of stroke. Dont stop taking xarelto® without talking to your doctor, as this may increase risk of stroke. While taking, you may bruise more easily, or take longer for bleeding to stop. It may increase your risk of bleeding if you take certain medicines. Xarelto® can cause serious, and in rare cases, fatal bleeding. Get help right away for unexpected bleeding, unusual bruising, or tingling. If youve had spinal anesthesia, watch for back pain or any nerve or musclerelated signs or symptoms. Do not take xarelto® if you have an artificial heart valve or abnormal bleeding. Tell your doctor before all planned medical or dental procedures. And before starting xarelto®about any conditions, such as kidney, liver, or bleeding problems. Its important to learn all you can. To help protect yourself from a stroke. Talk to your doctor about xarelto®. Theres more to know™. Welcome back we continue to highlight the best analyst calls of 2017 today we focus on nvidia its one of the best performing stocks in the s p 500. Rosenblatt securities, Hans Mosesman initiated on that name with a buy rating in february after the stock had already had a 200 plus return in 2016 joining us live from tampa hans, welcome. Thank you what gave you the conviction after a 200plus gain in the prior year that this stock could continue to the level that it has this year . The number one issue is that were in a transitional period n. 2016 we saw nvidia do well because of their core graphics business which seals into the pc gaming market. What were seeing here over the ten years is a transition to computing in Artificial Intelligence an of the deployment of Artificial Intelligence architectures into the data center. Significant tube could be as much has 30 billion in terms of the total available market in the next ten years. Its interesting. You know, i can foresee if youve been on our show when you upgraded this stock, you know, back in february of this year after 200 plus, we would have told you this sounds a little late and yet it turns out that it was early the stock at that time was 111. We know where it is now. We will throw up a chart so well see. How much runway is left, do you think in. Well, i think that this is the best name in semiconductors for the next ten years theres substantial upside the Data Center Business it is growing triple digits for the past six quarters, maybe eight quarters, and we think that thats just the beginning. The important thing to watch and why theres a secular component here and why theres legs is that the data center is shifting away from the microprocessor, from intel to the gpu for computing so youre seeing hybrid or accelerated types of environments and this is at the earl el stages of a 10 or 15year trend so significant upside my favorite idea. I have josh brown who you may know, one of our panelists, and hes loved this name as well and would love to introduce him to the conversation josh. Hi, hans. Hey had i want to talk about the kuto platform because a lot of people with talking about nvidia in semiconductor terms which is part of the story. And people read your research and they dont go to page 2 or page 3, and i think the idea that all of the developments that could take place in ai, even the things that nvidia has nothing to do with, are starting to standardize on nvidias intellectual property. Could you talk a little bit about why that could be a much bigger leg to the story than people maybe understand at this point. The soft weigh platform that nvidia launched ten years ago has become the de facto standard in how you deal with accelerated computing environments, and what has happened its become the standard in academia so to the degree that there are University Works thats being done on accelerated computing, its being done on being done o the architecture thats tremendous investment, billions and billions of investment it is impossible to replicate the next year by anybody and i include intel in that conversation that train has left and i think kuda is one reason why this is going to be a secular component. The bears will say, well, you think intel was just sitting around theyre going to get into these things i have no doubt. They want to be in all this stuff, but they dont have the platform that the world is standardizing. I think maybe it is a high multiple stock, but i dont think most people have thought about what that could mean for ten years to come. Youre absolutely right just one follow through on that. If intel had the technology, they wouldnt buy chips from amd. You have a platform advantage and doesnt have the capabilities at the moment it will take them five years this is where i think nvidia doesnt have any predators in the wild to worry about, in my opinion. Congrats on the call. Well see you in the new year. Thank you final trades ahead just final trades ahead just after this ok, so with the awardwinning geico mobile app, final trades ahead just after this our customers have 24 7 access, digital id cards, they can even pay their bill beep bill has joined the call. Hey bill, were just phone hi guys, bill here. Do we have julia on the line too . Phone so what i was thinking ok well well phone yeah lets just go ahead phone oh alright the awardwinning geico app. Download it today. 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. [vo] progress is an unstoppable force. The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. 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. Were back on the Halftime Report j. J. , before we go, it is going to be debated for a while who wins the most out of this new tax plan but what we do know is that investors win big time because we talked about so often on this show and you took a lead role in from a wall street standpoint, was out. Thats a nice Christmas Gift to keep the Retail Investor at a level playing firm with everybody else so we can continue with the same Tax Accounting you had letting the average person pick which shares they sell. It is amazing that most people hadnt heard of the issue, including probably all of us until it started to get into the forefront and investors really started to get a handle on what this potentially was going to mean. It was universally maybe the strongest comments coming from larry saying the dumbest thing he had ever seen. You really led the way in terms of publicizing this. We had 18,000 people go and write to their congressmen, senators, et cetera. It hit a nerve among the Retail Investing community. Good to have you here, again. Happy new year, happy holidays well come around for final trades and well meet you at the end. Jimmy, what have you got apple in the news i find this hilarious, frankly people are actually suing apple because, apparently, they slowed down the operating system so the batteries would last longer. It shows a complete disregard or lack of knowledge of how the legal system works you have to have damages and you have to have intent. I dont know how you could prove damages on this. Nevertheless, apple is on here, im going to hold this probably through 2018 how is the stock going to do in 18 crests through a billion im sorry, thank you very much from 900 billion through a trillion and then gather steam from there i think its up another 20 in 2018 been up 51 so, 20 is why am i throwing shade on it. I think it goes up another 20 you must have good hopes for the overall market somebody expecting volatility, yet, youre telling me apple is going to go up 20 that connects with what i also said measured from december 31 and i think it will be up, but down in between. Fair enough so, like this is not going to be like this obscure, brilliant thing. But i just think google which has had a good year this year, i think theres even more coming for next year. And i think about things like what theyre doing and how out of the way it is from the investors consciousness these days if that was a stand alone thing, it could be worth as much as uber i dont know how much that is priced into google so many initiatives theyre involved with. I think it has a lot going for it and it deserves the run its had this year and fundamentally speaking, growth will continue chart looks phenomenal cheap stock the cheapest of a very expensive group. Momo bought it today. Good holidays, again. Happy new year same to all of you watching. Thank you so very much that does it for us. Power lunch starts now bitcoin tanking double digits at this hour. Falling 40 with record high a wild and volatile week is the bubble already bursting final countdown, two full days to christmas how are the likes of u. P. S. And fedex dealing with the dulluge of holiday joy the cost of living forcing many to pack their bag s and wve goodbye to the golden state