Whats at stake for them and tech investing the Halftime Report starts right now. Welcome good to have you with us on this tuesday. Our Investment Committee with us lets start with the markets theyve been up for three straight quarters. The s ps largest gain over that period since 97 the question is what comes next . You tell me what comes next, pete the economy doesnt look good. Looks like it slowed down more and slowing more. No doubt about it. I think the interesting thing is tony dwyer had a nice note out talking about the mini recessions hes talking about this one continuing to be a mini recession and looking for opportunities. Saying it looks like maybe this is an opportunity in terms of buying after this selloff today. Have we had a nice start in terms of September September was absolutely fantastic. Financials were rocketing to the upside technology continues to be a strong spot except f. A. N. G some of those f. A. N. G. Names, especially netflix leading to the down side. But you have to be slelective we have to navigate these difficult times whether you are talking impeachment, trade wars, fed, whatever. Some of the slowdown is something that stands out today. Steph, market was up more than 100, dow was, then this nasty ism manufacturing number market reversed. This is what were talking about. Weak economy getting weaker, at least on the manufacturing side. You have a recession in manufacturing, no question ab t manufacturing. No question about it. Honestly, the manufacturing numbers were ugly. But we have been seeing a slowdown since last january in manufacturing. So its not really a surprise. My biggest question is when does it stabilize we have not seen it stabilize here its not stabilizing in the eurozone it is stabilizing in brazil and in china so its something to watch in the meantime, yes, consumer is still strong. Thats where you want to be for sure i think you want to pick at some of these cyclicals that get beaten down. I like the financials. Housing is quietly making a huge comeback you had pending home stales, the best in 32 months. Permits up 8 . The consumer is doing just fine. Doc, if the data gets worse on the manufacturing front, but the consumer remains okay, can the stock market go up in the Fourth Quarter if that is the dynamic . Well, 70 of the economy is the consumer so were going to focus on the 30 that isnt not me also, judge, i would say look at thor industries. What do these guys make . Air stream rvs or whatever, trailers that you tow behind you. A lot of steel in those things yesterday they came out with earnings the earnings with blowout earnings, the stock jumped from 48ish to 57 still hanging in here over 56 today. Thats both consumer side and impact of the tariffs. Steel prices went up, input costs went up. Yet thor beat all metrics when it came to posting up year over year and what they expected for the quarter. So my answer to you after that longwinded explanation is, yes,s the cyes, the consumer can carry this and most businesses can. Joe, is that true you have 90 days tell me what the next 90 days will hold from stocks. What is the most important thing in that . Sentiment Consumer Sentiment . Business sentiment is no good. Investment sentiment is different from this time last year this time last year we walked into the Fourth Quarter. Everyone had the overattraction to the f. A. N. G. S, tech, growth, what happened . The s p reversed it was up 9 by the end of the Fourth Quarter of 2018 you were down 6 for the year from a sentiment standpoint there is this fear, this caution, that the same thing will happen once again now you walk in this morning, you have an ism manufacturing report that highlights two conditions number one, export orders come in at 41 thats the lowest level since march of 2009. That tells you the value of the u. S. Dollar is too high. Secondarily the employment component of this is awful it suggests on friday the labor report could be weak that ties it back to the consumer. You walk into the Fourth Quarter. You get this you ugly employment report what do you need . The Federal Reserve once again no chatter about whether theyre going to cut or not cut. They have to come in, give the market the cut and liliquidity theres another gentleman who agrees with you. He happens to reside at 1600 pennsylvania avenue. He was tweeting today about the dollar and the fed which has no clue from. The fed has to give liquidity. They have securities, they need to reinvest them that has to be given in the form of a commitment on october 29th. Whatever the number might be, they need to throw out an actual number and tell the market heres what were committing to. Jim, you told me everything matters, begins, middle, end on a trade deal if i dont get a trade deal any time soon, are the next three months in the market shot . Lets define any time soon. You are correct in summarizing how i feel i think its by the end of the year that doesnt mean a signed deal. It means you have to have clearly a road path to resolving this situation its not just the ism. The regional fed surveys have been terrible for the last few months fedex numbers, truck orders. There are cracks forming, albeit in the manufacturing part of our economy, but those cracks will take hold. They are a more coincident indicator. What turns it around the only thing i can see that turns it around is a trade war resolution we will not talk about earnings coming up having an effect its not its all about trade war you have to have a path to it. When . You have 90 days yeah. You just answered the question 90 days. What happens between now and then you need to set a path in place. When does that start it starts next week. Both sides are meeting we knew there wouldnt be a resolution this week, not with the 70th anniversary of the communist party, blah, blah, blah next month theyre meeting we dont need a tweet at the end of next week saying im putting on more tariffs, im getting into a trade war with europe we need our president to have a strategy to end this thing if he doesnt, we will be in recession next year andhe won get reelected you have to get on the path now. Steph, if youre not pessimistic, if you think the consumer will hold up enough to carry the market higher, where are you buying d. R. Horton is a fairly new position for me. I like housing thats the heem theme on housing i think some auto parts sectors, that group has gotten hammered, hammered hard. I like aptive, they are the electronification story within auto and auto parts. I like that theme. I like a lot in consumer like under armour nike had a great quarter i have been trimming mcdonalds, its had an enormous run there was a cautious note on mcdonalds yeah. I dont know if that was warranted. Even home depot. Ive been adding to it, but im holding it mcdonalds, expectations have gotten high. You know who sold mcdonalds . Two seats to your right. I did weve been talking about that for a while. Unfortunately i didnt listen to you when it was 217 and 218, you said trim some up here, now i had to sell some at 209. Too negative on mcdonalds now . No. No lets not say too negativement you sold it,s not me. Neutral there are other places to be in the market that look better. I have not sold lululemon or dunki dunkin. Mcdonalds, certainly the rate of appreciation has slowed down. I will give you anotherppointedy disney is trading. Its universally loved i dont know many have sat on this desk and said no. Why the weakness . Maybe numbers are coming down its competition. The whole sector, if you look at the media sector in general. People want to lump netflix in there and should, but theres competition for the content being distributed, even as everybody comes out with apple tv and disney plus and cbs over the top streaming. No kidding. We knew that thats why the stocks are down you think it was too much euphoria around the new service, pricing. And around the catalog. Its a fabulous catalog, but whats the under knoknown in th . Nothing. We know how popular these disney titles are for kids with disney plus, will parents be subscribing . Of course. But theres a lot of other places that people can go for content. Disney, if you dont have a lot of kids in the house, you dont want to just watch comic book characters in marvel movies if youre not in disney, netflix is not going up at disneys expense netflix was getting hammered we classified disney as best in breed we paid the premium for it im guilty i jumped in like everyone else on that story. Theres some that had you had disney for a long time long time a lot of us got in later on the announcement but we all got in on the theory it was best in breed it was the jpmorgan of the media segmentment what do you think mcdonalds is a great name. But some of these names do get stretched. Mcdonalds is in that category the huge run at disney, it didnt do anything for a long period of time, traded around 100 a bit towards 110, then shot up towards 140 this is the september effect. Theres been a definite rotation we talk about it all the time. The rotation from this area to this area. September, great month for financials maybe it pushed some of these stocks too far not the financials home depot, i love that name im not in it now. Why . I feel its been getting stretched. Ive been selling on those calls to get dividend and create my own dividend yield by selling calls against it there are names out there, one name joe likes a lot but i wonder when this thing slips. It will take one news headline in chipotle. A great name we know they had a fabulous run to the upside. We all love the ceo. Done a magnificent job at some point someone will look at that pe and go hold on. Look at that now . You wonder. They havent done it yet im not in this name are you . Im not heres the problem with the pe, you were nerve buyiver buyi stock. This was a huge stretch from the day that ceo the right ceo, but that pe is stretched. You look across this table who could look at that and not say this stock should be trading 600, not 830. At the same time you cant fight it do you own it back again . I do not. I think the even larger conversation goes back to when did disney peak . Disney peaked july 24th with the rest of these s p growth names scott, you could lump in there mcdonalds, you could lum americlump American Express in there. Walmart might be a little rich i think it is if youre worried about the dollar, youre worried about some multinationals, why did you sell the small caps . Small caps are largely financial orientation. Okay. On that ism best group in september it was, but you have to acknowledge that ism report was bad. Hold on i want to make sure i understand you sold the small caps today based on ism reports absolutely. Tenyear goes from 175 to 161, 14 basis points in one day the lift that the Financial Institutions got in the Third Quarter was largely on the back up in yields from 144 up to 1. 90 ill acknowledge that. Im holding a lot of financials, usb, jpmorgan, added wells fargo, American Express, mastercard, kkr, which is another nightmare in the last couple of days you have to take a look then when you get an ism reading like that and say i have too much exposure now Everybody Loves wells fargo. I like it its a special story i bought it you bought it. Joe bought it. A lot of people said they didnt want to buy it its a very large name in the s p 500 benchmark. A lot of people are underweight. They might own a bit, but theyre underweight. If this new ceo can deliver on anything, on anything, i think the stock can work its almost like a selfhelp story. I realize it will trade with rates, but its a special situation. Its trading 11 times forward. 1. 2 times book its not extreme to me, i think theres more room there. And i actually sold blackstone for it which whaell talk about lat on hold that thought. You want another reason to be optimistic even though the ism number was bad the Market Manufacturing pmi number was great best in five months. So, you know, am i just trying to parse and fine the one thing thats germany. It was good for the first time in five months i mean, we worry about the largest economy in europe, right . We talk about it all the time. But im saying the market pmi was like i say making a turn and it seems to have made that turn rather than just keeping to the down side. In china, numbers were better than expected. In brazil they were better than expected pockets in the world are seeing stabilization. When will we see stabilization i dont know how can we see manufacturing stabilization without a trade deal im not sure you can. The president today again tweets about the fed and the dollar causing weakness for the manufacturing conveniently doesnt mention the trade deal remember that china put in over 100 stimulus programs for the last year and a half eventually you have to think that stimulus will kick in and help thats why youre seeing stabilization. You need a trade war resolution or detente or something for it to start to see growth im looking for stabilization at this point i want to point out, we have a tentative economy. I will call it tentative there is strength in the consumer, its tentative it could crack like it did last Fourth Quarter so im looking for those companies and sectors currently returning cash to shareholders that leads us to the financials and the industrials. Im looking at you, steph, we quite often march in lockstep on this if you can get citi group and Goldman Sachs buying shares back below book value, thats accretive on the Balance Sheet it doesnt mean stocks wont go down Marathon Petroleum is buying shares back at book value, but theyre returning wash cash to s i want to get to the financials again before we bust out to a new topic. Youre telling me they had a great month, so that now the story has turned financials are back. No. I said there was a rotation. The rotation was financials were one of the leadership roles, they were up 7 in september had a nice run across the board. Is it lasting yesterday we had a debate she says you throw out berkshire. Throw it out wells fargo with the new ceo is up 8 . Did you have a nice move out of the financials you sure did. If you look yeartodate many names performed far better than what it sounds like for people at whom who say geez, the financials cant get out of their own way. Fullyear, theyre right its all Interest Rates right now. Sure. You can see it today. I mentioned citigroup and Goldman Sachs earlier. They were both up a per scent earlier today. You get the ism, tenyear yield plummets who will pull back . After you have gone up 7 , 8 across the board, people will say well take some of this off. Yes, youre right it doesnt mean its a bad investment because these companies are generating so much cash and returning it to you its not a great trade its a good investment but not a great trade. Lets talk about the big news today that will impact the way you trade stocks schwab announcing it will end commissions for online trading in u. S. Stocks and etfs beginning october 7th. Options will continue to cost 65 cents per contract there are the major broej rajke getting crushed. Great for the trader great for the person who is doing the trading. You can see what the impact is likely for those companies no surprise by this at all. Interactive brokerages made a move like this last week sofi, merrill its like a race to the bottom its a competitive situation. Whats the shakeout on the other side you have to look at it in terms of trading revenue exposure. Schwab is the ightest, less than 10 the reason Td Ameritrade is down, they are higher, around 25 revenue exposure etrade comes in around 17 . I think the resolution is if you look at etrade and Td Ameritrade, it begets the question is it time for these two companies to merge thats a possibility thats an interesting thought. This sort of thing causes, doc, companies to have a little marriage and if they did, they would have a huge headcount cut. When you look at these versus the competitors, these are the legacy brokers so, people might think they bought this. They bought our old company. Etrade bought trade monster and so forth most of these guys technology, scott, is legacy it causes them to have to have i looked up schwab today, 19,000 employees. Its an awful lot of people moving paper and Everything Else that are going to be, you know none of us are ever happy when someone loses their job. Theres a lot of folks that will be pushed out with this price compression that you just cited. A lot of folks will be hurt by that lets not forget, these are Asset Managers as well thats really their business this is affecting them, but this has been going on for a while now. Zero this. Zero that. Everybody is going to the same spot of zero with options, it might be different. But the rest of it in terms of etfs, vanguard, they have gone to no fee. So is that the biggest deal in the world . No, these guys are Asset Managers they are accumulating assets those with the wiggest tra biggg exposure, theyre getting hammered but you need a steep yield curve. Youre right. I wonder if morgan get beaten up enough to try to diversify away thats something im watching. Well step away for a quick break. Heres whats else is coming up on the Halftime Report. Blackstone shares surging 60 this year. Wells fargo thinks its going higher our desk debates it and the rest of the finals in our call of the day. Plus Venture Capitals now not so secret meeting to warn startups on how they plan to go public Investment Committee is ready to discuss. Plus well be joined by Venture Capitalist Richard Heitzman for farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Wells fargo getting bullish on blackstone. They have initiated coverage outperform is the rating 60 bucks is the price target they say its a marquee stock in the financial group. Its our call of the day it may have stephanie rethinking that sale. Not much. They have size, stalcale, great management team. I thought i should take some profits being up as much as i was. I still own apollo the liquidity event was the reason i owned blackstone. Its past us i sought to take profits joe, you mentioned this one or you mentioned kkr kkr was above 30, and it has fallen back on the conversation surrounding Elizabeth Warren going after regulation and private equity thats a concern there kkr does have significant exposure along with carlyle, if you listen to what senator warren is talking about. That would directly impact their revenue. Black tostone and apollo are mo diversified and less in the cross hairs on that regulation the pullback has to do with that private equity regulation. Im staying with kkr, but im not happy. Fabulous gains this year. Blackstone, 60 year to date gain. Venture capitals meeting with startups. Venture capitalist Rick Heitzmann joins us next. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Its how we bring hope to our patients like viola. Her team treated her cancer and strengthened her spirit. So viola could focus on their future. Cancer Treatment Centers of america. Appointments available now. Welcome back, everyone im sue herera heres your cnbc news update a white former Dallas Police officer who said she fatally shot her unarmed black neighbor after mistaking his apartment for his own has been found guilty of murder Hong Kong Police sprayed a liquid on to a female protester sending her falling to the ground the intensity of antigovernment demonstrations spread across hong kong as tens of thousands marched as communist leaders in beijing celebrated 70 years in power. Former special prosecutor Robert Mueller is rejoining his old law firm he will focus on highprofile investigations and Crisis Management similar to the work he performed at a firm before he left former president jimmy carter is celebrating his 95th birthday today. It makes him the first u. S. President to reach that milestone. He continues his humanitarian work with his wife rosalyn building houses for habitat for humanity we wish him a very happy birthday thats the news update at this hour scott, back to you new at noon, the recent blowups of bigname ipos leading some to question the Way Companies go public in the future according to sources today out in San Francisco several of the valleys leading Venture Capital firms are gathering at the Palace Hotels with around 100 private companies to address that issue im told that bill gurley helped to organize that meeting several hundred people are expected to attend along with the new york stock exchanges president stacey cunningham. Direct listings and ipos deon the agenda after this comment two weeks ago on the Halftime Report. I think Silicon Valley has been on the bad end of a bad joke for about four decades now in terms of the way traditional ipo process works. Over 39 years, theres been 171 billion for Silicon Valley companies. Its been increasing lately. Yeartodate were at 6 billion in under pricing deirdre bosa jones us now. Do you think this will have lasting staying power . Seems to be a groundswell developing now weve been talking about it for a long time about how this ipo model is broken. You pay between 3. 5 to 7 in fees to the investment bank, then you see this first day pop which could have gone to the company. So its interesting. When you look at a recent ipo deemed a disaster, smile direct club, you saw that share price come down the first day, some vcs done think that was not a disaster, because some of the money on the first day went to the companys pocket what theyll talk about today at the palace hotel is how direct listings give these startups more flexibility and more leverage when it comes to the investment banks i mentioned youll have about 100 privates in attendance at that conference. Im wondering how you think some of these latestage private companies are going to be thinking about all of this going public in the future and whether they will be swayed by the argument that some vcs will make today. A direct listing doesnt work for every company. Spotify and slack had enough money on their Balance Sheets. Whats interesting about them, slack in particular, they raised so much money in the private markets. Private markets are flush with cash you have the vision fund, companies raising hundreds of millions of dollars and some Institutional Investors investing. Their businesses were better understood by the public you think about some other companies that are not as well understood the cloud fairs, data dogs, could they do this model that is unclear. You can do a direct listing and then raise money a week later and avoid the road show and some of those enormous fees theres an argument to be made thats what you will hear at the palace hotel today from these vcs, theres a different way of doing things you dont need to do a traditional ipo which we have been moving away from. You can do a direct listing and choose the aspects of a traditional ipo that you would like to bring in its a good argument for a lot of these companies you have a big name like airbnb looking to go public next year they have enough cash on their Balance Sheets they just need a way for employees to cash out. It could be appealing for a number of companies. Im glad you mentioned that lets welcome in a Venture Capitalist, Rick Heitzmann of first mark joins us from new york city. Good it have you on. Good to see you direct listings the way to go i think its more and more so becoming the way to go as companies are more profitable, they have a greater path to profitability in the current world. The discount that companies have taken on the ipo is just too much so banker fees aside, i think the discount is better off in the employees and founders and shareholders hands would you advice airbnb, which you are an investor n would you advise them to do a direct listing as opposed to an ipo . Airbnb has a lot of criteria that you look for in a direct listing. It has a great brand people know about the company. Its profitable. Theres no financing risk. It is a Big Enough Company it can draw Research Coverage regardless and theres been enough float and enough secondary trading so theres a price december kovry out there. So you have a good sense of what the companys values will be when it starts its potential direct listing do you think we would have this conversation if we didnt have the high profile blowups of late . I think we would. The conversation probably started over a year ago. Spotify and barry mccarthy, their cfo, has been a leader in discussing the change. Slack continued the conversation i think a lot of companies have gone public the last 12 months and have taken it seriously. But now theres a groundswell among founders, investors and employees who would benefit from this part of this, deirdre, on bill gurleys part, just try to blow up the status quo trying of seeing things done the way they have been done and wanting to do something about it he has the capital political and financially to make a difference i think its about two major things i mentioned it, leverage and flexibility. Hes trying to tell startups you have more of a voice in this you dont need to do what the Investment Bankers take the traditional route that has been done for many years. I think the turning point this year was slack if it was just spotify that had done it, it might have been a oneoff. The fact that slack did it and i would argue successfully yes, when you look at the share price up on the screen, its tumbled since the direct listing, but remember, its valuation right now is billions. Its 12 12. 5 billion. Its last private market valuation was 7 billion it has been an effective way to let their employees and early Investors Cash out while getting them public and saving on a lot of those fees. Yeah. Rick, you want to opine on what she just said . I think its less about fees and more the discount and missing that pop you had bill talk about in the previous segment, its billions of dollars this year alone thats money out of the founders pockets, employees pockets and existing investors theres better ways for price discovery rather than just doing it by hand manually. The other interesting point, gurley was highly critical of Goldman Sachs and Morgan Stanley specifically in the interview that we did out in San Francisco. Now ive learned that goldman is having a conference on wednesday in las vegas around Innovative Private companies, and heavy on the docket and the agenda there, direct listings versus ipos. So goldman and these others are being forced to deal with this issue. Its hitting them head on. It is you know, goldman conference happens every year its already set in stone. I think folks are trying to they see the ground swell, theyre trying to justify whats going on you know, part of the issue in direct listings is oftentimes when a company or an entrepreneur goes public, thats their one time interfacing with the investment bank. So the other customer the bank would have is the Institutional Investors on the other side, they would see the same underwriters almost weekly during ipo seasons its the who is the requuring customer in that structure thats the other kind of interesting dynamic to watch in the business rick, its joe. I guess the other angle on this is maturity. If i think about airbnb, i think about a company thats been around at least ten years. The direct listing, doesnt that give an airbnb a lost opportunity for uber to kind of avoid opening some of the cultural challenges that if they have the traditional road show they have to go out and reveal airbnb has regulatory battles. If they go direct listing they dont have to get involved in that once again. I think uber made that same mistake where they had to rehash history. You have go through the same s1 process the same level of disclosures. The same level of disclosure of risk factors you dont have to maybe face the Institutional Investors head to head to address any concerns they might have. But i always think companies are better off addressing risk factors, addressing issues which might be out there and so i think airbnb could avoid that with large Institutional Investors, but many of those folks will sit down regardless and the key risk factors as part of your s1 is something you should address head on. Should airbnb already gone public did they wait too long i dont think so. I think that business is so strong they have increasing motes in their marketplace. I think youll see a Public Financing of some sort from them in the next 6 to 12 months i think theyll be on schedule appreciate your time. Thank you, guys bullish options activity coming up in gaming and mining jon and pete have the ostrades next in unusual activity. Driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Activision blizzard has bee going up jon and pete think theres more to go. The stock was lower earlier today. It was trading around 52. 30. We saw all kinds of buying october 11th expiring. A week and a half out. Buying of calls. They bought some big sizes 15,000 when this initially hit of these october 55 calls. Aggressive push. They have a bit of time in front of them, not a lot i like when we see Something Like this. This is a name, weve seen this nice move, rapid move to the upside they enjoyed a nice september. We were talking about that with the financials is this ready to break out to the upside sure looks like it somebody is betting on that. I have a second one. We talk about freeport all the time, fcx, today freeport once again. What is this play upon you look at this chart its had these little bit of recoveries, little bit of recovery there almost right back down to where it was before. Is this thing going to get back up into the tens and 11s once again, somebody is out there. Rolling from october to december on the 11 strike calls, buying 5,000 of those only 22 creents inexpensive shot is this a trade deal type of thing . October 10th, we know that date. Out to december 15th as well all kinds of dates out there talking about the trade. Is this one of these stocks that could react . Absolutely i bought these calls i added to them today. Doc two quick ones. First one is masco. These guys make Kitchen Cabinets shares are up 85 cents, about 2 on a day when the market is down over 200 points. They came in, they were buying october 44 calls, love that. I bought these ill probably be in them two to three weeks. Second one quickly, take a look at pcg this one, of course, the big utility one. Its been in the news for all kinds of bad reasons maybe it will be in for good reasons again. Look at that, scott. Back in june when the stock was up at 24 that might be making another move i dont need it to go to 24 though because they were buying the 11 calls in october. So only a little over a buck out of the money love that. I put a lot on this one. Ill probably be in it two, three weeks. Quickly, i should have done this when we had this initial conversation this schwab news no fee stocks. Options still 65 cents a contract whats your take we have news coming for you on that soon, scott. Love to be able to tell you now. Would love to tell you now. You have to wait for the press release. People will be addressing that i think this is a real opportunity going forward. Its the growth area of the market, scott. The options world. Were averaging almost 21 million contracts per day right now in terms of option contracts. Think about that when you contrast that with whats going on at the nyse and other places where volumes are going lower. This is going higher this is going well ill look for the press release. Thank you. The desk is ready to answer your questions. Come back over, you can still reach us, cnbc. Com halftime. Tweet us, the Halftime Report back in two minutes. Plants capture co2. What if other kinds of plants captured it too . If these industrial plants had technology that captured carbon like trees we could help lower emissions. Carbon capture is Important Technology and experts agree. Thats why were working on ways to improve it. So plants. Can be a little more. Like plants. This is the family who wanted to connect. To go where they could explore and experience adventure in unexpected places. Who were inspired by different cultures and found that the past can create new memories. Leading them to discover were woven together by the moments we share. For everywhere you go, expedia has everything you need, all in one place. It is time to answer your questions. Joe, coming to you verizon from verizon from mike in new york city he wants to know where it goes from here. I think it takes out the 6168 high from last november. They made a nice acquisition picking up augmented reality. Molly in connecticut, ragin and General Dynamics defense stocks are. Raytheon is in the box that nobody likes the takeover with united technologies. A couple stocks i like are Northrop Grumman and they are seeing the biggest he growth, missiles and satellites. Youve been around a missile or two in your day. I have, Lockheed Martin and Northrop Grumman i like those town hawks, raytheon. Stephanie from lee in washington, d. C. , united health. Its been painful. What do you think its best in show in that space. Its 13 times estimate and yielding 2 but its in the political crosshairs right now you have to be patient im tolding on to my position but you have to be patient. Doc from mark in orlando, oxy. Mike, its still right here at this level, and i think you can see this stock be a 60 handle by the end of the year. Theyre doing a lot of divestitures right now and that will help. The ceo is pushing hard. Theyve already done 10 billion of those asset sales theyre on track. Last but certainly not least, pete, from leslie in florida the fxi. Last time we had unusual activity was last week and that stock was trading around where the fxi is now and they are buying november 40 1 2 calls, hedging on the three 30 1 2 calls. Even if you just bought them naked,m i holding on to that stock. Coming up, your final trades are straight ahead i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. In the human brain, billions of nefor people with parkinsons, some neurons change their tune, causing uncontrollable tremors. Now, abbott technology can target those exact neurons. Restoring control and harmony, once thought to belost forever. The most personal technology is technology with the power to change your life. Online now, one chart suggesting Earnings Growth is about to pop go to tradingnation. Cnbc. Now you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. You mighyour joints. Ng 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 discovered in jellyfish, prevagen has been shown in Clinical Trials to improve shortterm memory. Prevagen. Healthier brain. Better life. While october tends to be a strong month for stocks, not all sectors participate in the bullish prime. According to our data partners, octobers lagging sectors since 2010 are energy, health care and telecom. For more go to cnbc. Com kensho were back we mentioned some of the moves stephanie link has been making in her portfolio and you have another and that is emerson electric. I have owned it before. I like david carr very much, the ceo. I think theres a chance they will split up this company i always thought that. Now theres speculation theres an activist in the name than might put pressure on them to do something soon in the meantime theyre lagged by tay group of 1,000 basis points and gives you a great yield. Im back in. You dropped football analysis on you. I did. Did you catch that . I did step was on top of that, no doubt. David i know youre a football fan joe, you bought apple. We talked about it yesterday on the show and i gave it as a final take its just a replacement. I told iwmi i know, you werent here iwm, mcdonalds, sold out of those. Apple is the place to be i think it takes out the alltime high. Final trades, pete . Wells fargo, i love the new ceo. I think he will make new changes. I know you bought it and joe bought it. But weve seen stock option activity in there as well. I think this will be a longterm hold for me. Warren buffett still loves it. I got to love it. Iq, Online Entertainment in china but theyre buying puts. Theyre not buying upside, folks, theyre buying puts i bought puts during the show. Stephanie the consume were talking about earlier, vf corp. Is on my short list, very bull irn. 15 Earnings Growth, 8 revenue growth, great brand. This is on my shopping list. Winnebago, judge. The beginning of this year i said i think this is the year for win bega broth bro brother john mentioned this at the top of the show. Theyve been stealing share from thor but i doubt it. Winnebago has a great product lineup they should have a great quarter when they announce in two weeks and chris Craft Division thats the one to own. Keyside technology, i screwed this one up, got out way too soon had unusual activity and hanging in well at 96. 50. I think you stay with it long time. Good stuff, thank you, everybody. The exchange starts now. Thank you, scott. Hi, everybody, heres whats ahead, west coast versus east coast. A battle is brewing between silicone valley and wall street as they point the finger at each other for the slumping i know market we will explore where the blame should lie and one company that could be at the center of the larger unraveling of the new York Real Estate market chxt cities and companies have the most to lose from that. The Justice Department could get involved with californias move to allow student athletes to get paid. We will look at how that can play out with the former act of Michael Jordan but we