Capitol Hill Facebook hashares down 10 in te past three months. The risks facing the stock all in on apple. Two big price hikes. One, a new street high its our call of the day microsoft earnings after the bell the stock outperforming all the fangs over the past one year the traders take their positions. Halftime report starts right now. Good to have you with us on this wednesday our investment committee, joe, stephanie, the brothers najarian were going to monofacebook. A hearing going on on the hill there mr. Zuckerberg another big dayfor earnings steph, you own caterpillar missed they cut guidance. China story. This is b about weak demand in china . Well, it is, but nothing theyve said today was surprising and if you look at the sell and buy side, earnings estimates, theyre around 11 so the midpoint rath eer is about 10 48 so its not that much off. They destock 1. 2 billion of invenntory in a years time. I like the risk reward and the stock reaction is telling you everything you need to know. You hear cramer this morning . Hear jim say its a tough stock to own it is its not easy. When numbers are coming down and you have, its a you know, its all about china and the global dprout and that has been slowing down but thats not surprising. The stock is trading on the new numbers at 11 u times forward estimates. Giving you a 2. 8 dividend yield. A Quality Company with a good Balance Sheet so again, the stock reaction is telling you bad news is already priced in. No one else owns it, that says a lot i dont own it, but i thought they had a lot of good things to say on the call so to stephs point, i think it looks brighter on the horizon than it has look ing back over the last six months what i heard them say was that stimulus that china is now applying is going to manifest itself next year in 2020 that was a very positive projection and something i think that with sales in china down 8 , year over year because thats what the numbers showed, they made up for that with a lot of big sales in north america. In latin america and brazil and so forth but if china does come back because of the stimulus being offered, judge, thats very bullish for these guys retail sale s numbers for september accelerated 200 basis points and thats very positive. At least the moment it was going in the right direction when youre looking at this one, caterpillar, obviously the stimulus youre talking about makes total sense. Why dont i own it right nowrfo. Why im not in a hurry is i think itsweook at the asian nus a pretty easy read through, but the reality is if you believe that the trade war will get at some point or another, well see some sort of an a i agreement here, then this is one of those stocks that i think absolutely has unblooelievable upside i think its further out this stock is going to be 20 points higher. But i dont think in the next couple of week, maybe not the next couple of months. Why hasnt the move in this stock reflected the overall optimism about even if its incremental in trade has pushed the market within its highs. Caterpillar hasnt done anything its a class colossusal disappointment there are points and pockets in time when you want to own this thing and i think august, it got way oversold and a ik basted on where the numbers are headaching out right now, youre talk iing about a r very, very cheap stock. You have to own some hard stocks to make money. You dont want to be all in where everybodys at i know. There are others you own you dont want to pull all your hair out, right doc, look like us ge is like im fine with ge. Now cat some point i actually have my cost basis is right here. I know. What about boeing . How coyou read boeing, which you own as well . Obviously the max is the story the stock chart suggests keeping the timeline in tact they get this in the air, the stock is going to be a lot higher its not as cheap at caterpillar, but cash flow is the key and 2020 it sets up for a better cash flow year. Like 32 a year in Free Cash Flow next year is what im expegting and thats attractive. How about honeywell ceo, double digit bookings gains in china, middle east, latin america. Europe was up nearly double digits im reading what the ceo said. Up in germany and the u. K. One of your favorite very strong message, but yes, i did sell the stock last week and im fine that i did sell it. 178 was the high in july a stock right now pricing around 169. 5. I think this industrial conversation is a very interest ing conversation as it relates to the overall marketplace ive used the term i believe the eck quities market is a coiled spring ch i think the industrials market and names like caterpillar and boeing is giving evidence to that. Nothing changed in caterpillars report inventory glut asias bad mining, oil and gas is lousy we knew that in july with caterpillar, but yet the response to the stock, its telling you that bad news is now priced in in the industrial space. You think about buying it back then . Even with boing im not going to buy caterpillar or honeywell because there are opportunities im finding in the industrial sector that was that i was not able to find six to 12 months ago so i love the housing theme how about an industrial contributor to the housing theme which is masco thaifr going to report ive been in cintas. You want to buy a stock thats strong take a look at waste management. Get it at 116. Thats been a stock over the last year thats been incredibly e resilient in the industrial space so theres other areas of the industrials finally where i think you could find opportunity. I think that lends a very positive message overall for the market and i think it offers you a little bit of distinction to wait for the caterpillars and boeings to rightfully come back. They will. Let me lock at another stock that missed and guided well below estimates, too, thats Texas Instruments. Pete, i want to come to you first on this. On pace for its worst day in a year yep its a little bit off the worst of the session, too. But its getting ripped. Really what is down to is the guidance they gave was awful. That was it. But look at where their exposure there ar to be in Texas Instruments because of their exposure and times you dont want to be got autos, industrial, all of that that is something theyve got to deal with and theyve got to be b able to navigate that themselves and i think people are looking at that thinking again this is another one of f those with the industrials, we were just talking about that any kind of deal any kind of movement to the positive this is going to be very bullish for tex. Ill give you a teaser if you want i got a name in the semi space im going to be doing for unusual activity thats not texas instrument, but has a lot more different ways that its exposed and its much more towards what people are doing with themselves, with phones and everything else. So pete makes a good point and one cramer was making, too, was that dont look at texan as a read through for whats happening in the chip space. Theyre in difficult businesses. Yes and too often, we do that last week, fedex last week everybody said hey, oh, boy, thats a prbarometer of everythn going on ups came out, didnt seem like they had the same deal completely different its how youre navigating and sometimes we overread these and say you know what, this is a barometer for everything out there. That was a great example this is a company thats much more focused theyve done a better job of the transition, where they are ups, versus their competitor just take a look at those charts jim said look at terror dine. A name like that theyre the ones that are up sharply today and you can go ahead and sell some of the names, you can sell on semi. You can sell nxpi if dont like what texan delivered i bought more nxpi. But the idea of terra dine. Ive owned it gave it away way too soon, but thats the equipment story and what the semis right now are about. I think weve talked about in the last couple of months that we wanted the exposure to sesem semi equipments. Its about the logistics its been a masterful winner youre going to get another semi equipment name, which i am long youre going to get the report for lam research thats front end semi equipment, but id expect youll see continued d strength jim said dont sell amd, if you do, shame on you theres maybe a thought you look at a Texas Instruments and say okay, im going to take that name out take that name out hes like whoa just to do that pete said about you know, dont throw the baby out with the bath water more or less. This one, terror dine did exactly the opposite of Texas Instruments. They both beat on the profit side then they cut it by 20 those are two Companies Going in opposite directions. Doesnt mean its a no touch means youre going to see a few days of pressure on this this one. So cramers point about the nx prk i, steph, tell me why you bought it today. They made an an wii sigs. You have synergies from that theres upside to margins given their cost structure it trades at 12 times forr ward estimates and i think those have been for the most part derisked. I think part of Texas Instruments issue is that it was kind of a safe haven and a lot of people were hiding in the name yeah, they have auto and industrial exposure, but a lot of other end markets that are doing fine they never took down the write down from huawei they actually built inventory over the last four quarters instead of reducing it like some of their competitors, so ipg there are some specifics that you dont want to extrapolate as saying auto and industrial are hosh i think there are pockets where you can make some money. Smh up 30 year to date even with this follow through on the bad news from texan and the other movers still like chips i do. There are certain names that obviously today were talking ab it very specific names. Aside from individual names, would you buy the smh . No. I want the equipment names there was a time i owned the smh and that was the time to buy it. You want to be selective and specmi is a big component but id rather just own tsm the actual smh we told you we were monitoring the hearing on capitol hill. Mark zuckerberg continues to testify there. Elon is in washington and with us right now hi, elon the hearing is in a brief recess after zuckerberg testified for about two hours. Election security, privacy, competition, political speech, housing, diversity. All of these issues are front and center now on the main topic of the day, libre area. Lawmakers on both sides of the aisle sounded skeptical and didnt trust facebook could get this right here is republican congresswoman ann wagner why are they deported scores of stable partners have dropped out. Why . Congresswoman, i think youd have to ask them specifically. What do you think they dropped out . Because its a risky project and theres been a lot of scrutiny yes, its a risky project zuckerberg said later that he would be willing to leave the Libra Association if it did not get clearance from u. S. Regulators, but he said he hoped the crypt o currency would be able to move forward and framed this as a race with china. He said if facebook and libra delays, china will move ahead and america could potentially lose its place at the Global Financial innovator. Im told Mark Zuckerberg has noy is now continuing. Thank you outside the hearing room in d. C. Lets stay with fang trade because might have bumped up apple. 289. Katy huberty did that today. Another all time high today. She talks about apple tv plus and going into that whole word Going Forward, not anytime immediately, yes, 2020, into 21, up to 25 shes got a great vision and its the same she had when we talked ab services and growing and theyre taking a bigger and bigger piece of the pie with a lot better margins for apple so thats going to be good but then you bring up the wearables, which is another 10 of what their revenues are when you look at what apple doing, its the verticals and this plays in. The tv will add that much more and you know what, they can spend the money. We know about the cash flows one of the things i thought was interesting. Ive never looked at the stock in this way, but when you add the dividend with the buybacks, youre looking at an 8 yielder on apple a pret thety big number when you look at what were looking at now, we talk b about the ten year all these different bonds, all this stuff, thats something thats significant and theyre going to continue to do that theyre going to continue to buyback and eventually i would guess theyd raise up the dividend how about the deal with roku . It was on its backside and slipped here and there since then but that deal with roku basically distribution of apple and its products through the roku platform. This is going to be huge i think. And i think it will be very positive for both xacompanies. Thats what both stocks are telling me so i really like what they did there much like i dont know exactly how much because its not been expressed how much the verizon deal with disney will end up costing to give 12 months away to all these verizon users, but i like the roku move a lot have you been to the 5th avenue store yet its all about customer attention and the service. I was in there yesterday afternoon. Sat there loork ed at all the products ill be this, that, every product is offered i looked at the watch. To me, what apple is is about. Its ability to retain its customer i believe the retention rate is around 92 okay maybe youre not going to innovate if thats what steven weiss thinks about the company we all disagree. He going to call in we may disagree, but ill tell you what. While theyre waiting to innovate, the rest of us will sit there and wait wee not going to leave and xwo somewhere else thats the remarkable story about this company. 289 is not to jean muster she hasnt you know naileded it the whole time. No, but shes been pretty good and not jumped off the ship, either, scott. When shes shifted off, shes run it down mildly this is a big jump from where she was to this 289 level. Too optimistic . Especially if you want to, people will eventually start pricing this company differently and i know you brought this up many times a lot of people talked about this one is it a Hardware Company r or what is apple . Where do you categorize apple Going Forward and i think that changes the dynamic a lot. Thats why 289 isnt that high bernstein goes to 225 reiterates the market. Other fangs. Alphabet price target goes to 1700 from 1500 at credit swees recently have been trimming twitter and also facebook. I just like the risk reward into the quarter. Theyve got a great product that we know so i think i dont have to get much right for the stock to continue to work. You mentioned twitter let me jump to, we ready if r julia . Lets go to julia on twitter she has something then well talk on the other side hey, julia. Yes, twitter fall uing to session lows ahead of earnings tomorrow before the bell now twitters move lower continuing its downward trend this month comes after social media stocks are very much in focus. Mark zuckerberg testifying on capitol hill about facebooks efforts to launch its crypto currency, but hes been pressed on a number of issues that would also affect twitter. Said the responsibility for content on the platform and Election Security as well as political advertising. Snap shares its worth noting, theyre also down about 5. 5 this morning after yesterday they reported better results, but the move low er reflects th fact that snaps guidance for the Fourth Quarter was lower than analysts anticipated. Come up tomorrow when twitter reporting before the bell, not only will their user growth be this focus, but there will be questions about what they have to say about all of the you know, political scrutiny of twitter and whether or not any of these talks about regular lace will be impacting the company. So thats an area to watch guys, back to you. Proeshuate that were talking about alphabet steph had mentioned twitter. What about alphabet . 1700 doesnt seem out of reach not one ive owned 500 bucks not one that ive owned for a long time. Theres a paradigm shift. Theyre finally doing what many have called for them to do which is the apple model of going back and aggressively buying back their stock. Its something that over the last couple of years, alphabet has been deficient in that strategy relative to an apple, but now theyre getting aggressive with it and if that works, theyll Gain Momentum both technically and fundamentally. It has. Really has. 20 year to date actually on the screen now to my point. What about amazon price target you know bufferin add litt bumped a little bit. 30 bucks at bmo. Just to finish the fang trade. I still like it i trimmed it but i still thind on fire and so im holding it as a longterm secular story. But its a small position for me relative to where it has been. Doc, amazon ive not been there enough so i kick myself for that all the time scott, but ive never been a guy the whole deal because i look at it as aws, but the e commerce side sh, the margins arent there. So often time, ive taken advantage of the fact that when they go into someone elses category, theyll push it down and i think thats always ended up being buy reporting tomorrow. Its remarkable to me how out of the headline the business headline now is is in terms of stock performance. I dont think the expectations are there. Its market cap is below a trillion kodollars and the prio four quarters, the stock has not responded positively its as if we dismissed amazon from a conversation when it was preimminent in all conversations. Thats not going to, thats the interesting thing will be if microsoft and see what microsoft says theyre doing versus them in terms of wars theyve got going on there because if they start eating away more and more, scott, thats the margin business thats the only margin Business Amazon has so because of that, thats something to keep very close eye on we are going to take a quick break. Heres what else is coming up on the Halftime Report. Just hours after under armour, nike also announcing a major shake up at the top, naming a new ceo what it means for the stock from here plus, we want to hear from you. Send us your questions at cnbc. Com halftime. Or tweet us using ask halftime the desk is answering them straight ahead the Halftime Report with scott wapner and the traders is back in two minutes welcome back President Trump making a statement from the white house on what hes calling the big success along the turkey syria border he says he is lifting economic sanctions against turkey after an cara informed the u. S. It will make the five day cease fire in syriapermanent zpl by the moves that weve made, were achieving a much more peaceful and stable area between turkey and syria including a 20 mile wide safe zone laura cooper, the acting deputy secretary of defense, arriving on capitol hill this morning for her closed door testimony. The New York Times reporting ukraine officials knew about the u. S. Aid freed before it became public, undermining a key argument in President Trumps impeach. Defense. And walmart says christmas sales are starting earlier than ever this year theyll begin october 25th it will sell 500 exclusive toys, 20 more than a year ago and they have free, next day delivery and its not even thanksgivi thanksgiving back the you october 25th . October 25th. I know no pressure. No pressure. Guess not thanks sue herera our next next isnt quite ready to get bullish on stocks despite an earnings season which hasnt been as bad as feared. Mike wilson is Morgan Stanleys chief equity strategist. Is that accurate youre not ready to feel so good yet . Not yet whats the problem . You admit were not as bad as feared, right . Thats where well probably have a debate. The earnings story is clear. Lets go through some numbers, which is s p 500 earnings will be down 4 or 5 third quarter. Maybe better, down three down less than three now. Say three. Whatever, three, fine but the bigger story is in the s p and 1000 mid small caps are down almost double digits throw quarters in a row. We can agree that a the engine of jobs growth is Small Businesses is that fair can we agree our call has been that the risk of a recession is a labor cycle and my concern continues to be if thi improve theyre going to have to start laying people off. I think to say that risk is behind us is premature first of all, the market has rallied a lot in the last couple of months. Weve had the fed cutting rates, a lot of monetary stimulus, which is good. A brexit progress. Trade deal progress. So i dont see any reason why were going to break out here. Same set up weve had this summer theres mixed ed earpings out there. Sure. Zpl an until that mid small cap area starts to show improvement, i think the risk of a employment cycle is el rated. I want dwrou listen to what josh brown said the other day about the market as a whole. And i want to react to it on the other side i think its relevant to this conversation small cap stocks, they were the fly in the ointment just a month ago. Up 4. 5 in seven trading sessions transports on a massive tear since the lower end of the banks. And now the banks. Absolute wildebeest. Take a look at bank of america at the upper end of its range ch when you have banks working, more new highs for the home build eers. You have all these things happening. I know the rhetoric is negative, but price is not paying attention to those things. Price wants higher small caps working, transports working, banks working these were the things we said we needed now you have them. What are you going to tell me now, tough guy hes not speaking to you directly as tough guy, but to people like you who are thoughing shade on this market what were seeing is the risk reward isnt great hey, josh, 20 year Treasury Bonds have destroyed stocks ore the last year and a half small caps have understood performed. Long utilities, staples an financials and our equity portfolio has outperformed the s p 500 by 13 basis points in the last year. Dont tell me being set up that way has been the wrong way until i see evidence beyond just a few weeks, i think its premature. Youve largely been right weve given you props on tkaus youve made, but i want to borrow a loin frine from you any maybe the time to still be negative, this is not the time to be negative that was many months ago that was the time now is the time to say okay, maybe this is evidence things that trough and we are back working our way back up maybe a brexit resolution. More optimism on china trade we know about all the negatives that are out there maybe now is the time to get more bullish i think the time to get bullish was in august because you were at the low end of the range so were not that bearish ch its not like last year where the fed was toiighten rates thats the low end of the range now so we are more constructive on potential recovery next year. Once again, i still think its premature to think we can break out of this range in a meaningful way and its going to be led by cyclical stocks in a sustainable fashion. So i respect the market more than anybody i agree with josh in a sense that you have to listen to the market he picked out u a few things that were positive and i could pick out some negative if things r were b to be the to gear up, youll see things accelerating. Not a great outlook r for growth but relatiative to where the were of course thats why were at 3,000 thats why we have traded to the top end of the range so i dont want to get boxed into a corner. I didnt say you were always negative thats the genera that we have to break out now we have to digest these gains. Lets see the evidence come in through the earnings season. Lets see if theres a deal, not just a phase one agreement lets see if we have more evidence that we have enough to punch through into 2020. Thats fair with good reason to be skeptical. Weve asked the question week after week after week, whats going to get stocks to break out of their hang range. No able ility to do that what that i thinks it to get somebody like mike wilson to change his viewview i would focus on Profit Margins. What would be your outlook there and do you think that continued resilience and even an acceleration which would prizing the all of us maybe takes your scenario higher. Yeah i think thats what were looking for so on the earnings side, the reason theyve been disappointing is because they have negative operating leverage they have positive sales growth still in the economy we have Small Companies delivering 3, 4, 5 top line but seeing 10 negative Earnings Growth so until we start to see Companies Get ahead of the cost issue and to be honest, if i saw Companies Start firing people, i would get more positive because thats whats going to protect Profit Margins into next year. Thats the thing im looking for, right in other words, im rooting for r a recession in some ways because thats what will get the flush in terms of expectation, it still has to happen, then we can have a cyclical recovery what do you think about the isms of course were closer because weve had such a decline. All leading indicators suggest we could still go lower. Once again, im still r very focused on the labor market. Thats the only thing thats separating us from the isms going lower or not. I dont have enough evidence to shay things are going to accelerate so suggest things are going to get as bad as you say they might. Zpl i. Im saying thats not whats priced anymore at 2700 when cyclicals are falling out of bed, that was some of the stuff i was looking to buy i said we should be selling software then. Happened thats good. The market is taking out some high flyers, but i think the stocks are starting the price in a better recovery. I do think at 3,000, the s p where we are today, is no longer pricing in a continued deacceleration of the pmis its anticipating some recovery. Thats all im saying. You got to look at price and fundamentals i got you but if theyre looking for a recovery rates are moving up why stay with the staples trade and utilities an these bond proxies which have been so in favor that would like ly fall ou under that scenario . Thats why we have financials on the other side. We are putting a leg into one group which is financials. A, because i think the earnings situation is better there and in other cases, they have a handle on cost and the second thing is i think rates will make a move higher so i think its premature for things like materials and nrnl and some of the Industrial Areas just from what we heard from the companies overnight. So and by the way, im still not sold on the whole trade deal argument as a firm, were still not sold that theres meaningful progress i want to see more progress were going to roll back nobodys going to fault you r for having that view, where weve been over the last year. Pete its about the time frame that was something i brought up earlier. I dont expect it to happen anytime soon i think this is something that probably gets pushed off how do we navigate through that time frame thats the difficult part. Say its six months out. Navigating, you brought up the fro categories where youre looking. Is that where youd stay or is this anything out there x were pret theri close on this world tech or semis. Weve been buying japan and europe so we allocate globally. Japan and europe has been outperforming the u. S. Because we think and this is people have been making the call growth to value. We made that call year ago but with a twist our goal was not going to be o b the cyclical parts of value, but the defensive parts and that now what were getting is is growth is underperforming value t not that value is outperforming growth its that the Growth Stocks are getting clicked. Thats why value is starting to outperform on a relative basis i think this is really important. We are secular bulls we think global inflation is going to make a return next year once we have a further slowdown. We get past the election rates recover because the fed cuts a few more times. We think the leverage, the real value opportunity in the world is in japan, europe and part of the emerging markets thats stuff thats been thrown away that would include the cyclical parts of the United States not the darlings that have kind of led so the thing weve got to be careful about getting too bearish is not so much that were underweight growth, cyclicals and too much exposure in defenses because rates will make a move higher thats what i mean. We have both were fully invested across the equity market. We have to skew in certain areas. Im say iing what you said. The risk is you got to be careful playing that trade the way that its going to continue to work the way it has agree last question to you the fed. What if the fed does pause what if they pause dont cut rates. Well i think if they, that means somethings changed. For the better, right i think if they pause, that means theyve got better data on the isms in early november or have evidence theres going to be better data there or Employment Data of some kind i think the meetings before this came out but something would have had to have changed that would make them feel better and will change at that point. We havent seen it yet so were all years on that. Were not, no heads in the sand on the data points didnt think you were good having you here thanks. Mike wilson all right. First under armour, now nike mark parker stepping down as ceo. On the same day. Well talk about what that means for the stocks s p sectors. S p is up 4. Were back right after this. Servicenow put our workflows in the cloud. This changes everything. Youre right sir. Everything. No not everything, 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. 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Nike shares lower on news the ceo is stepping down hes going to be replaced by the man who ran ebay he has been a nike board member. Stephanie, you own nike and what i find so interesting is that you say you trimmed the stock because of this news not because necessarily just mark parker, but because donahoe is the guy i think great on data and technology and e commerce. Thats where your story works if he can get it right. But what does he know about nike, fashion . I dont know how great of a fit it is on the merchandise side. Maybe they have a great bench. I think they do. And parkers going to be there r for a while so i dont think theres going to be drastic change but i just kind of feel like at 30 times estimate, i just feel like this is really rich and the risk reward just isnt there. So its up 28 year to date. Had a nice run i prefer under armour as you know thats the one ive been add in to on down days. Looking at it now because its down sxwl i think this could be more upside i know we b probably disagree. I think the stock could get above 100. The fact parker is going to be there, he could focus on market and product. I think donahue coming in is about digital. The same playbook that starbucks utilized its about getting your online sales which are around 15 for nike the its getting it up to 50 target hes the right person to do that, to reach that goal and going to be one of the reasons why this stock is going to continue to trade with such a rich premium jon i own calls and i like the stock over all, scott, but i just havent been able to get my head around the valuation. So instead of going into the stock and writing calls, which would have been one of the normal things i do, im in call spreads. I own one call, sell calls above it not saying the its a home run hit, but its just a steady performerer and i dont know why it stocks. Its blake and parker on the same day it is surprising. Back to the trade though under armour for me, its just the valuation is so high that its a trade absolutely a a trade not something im looking at holding for any period of time nikes gotten to that same point. When you look at the multiple of it haves the growth then lulu with their growth, its not even compare bable. So i think the lulu. The reason i own that and not nike because of the growth and all the different ways they can grow a lot faster than nike ever will when we come back, options bulls, so say the brothers are finding opportunity in financials and tech. Jon anpe hd teave the trades coming up next in unusual activity man can i find an Investment Firm that has a truly longterm view . It begins by being privately owned. With more than 85 years of experience over multiple market cycles. With Portfolio Managers who are encouraged to do whats right over whats popular. Focused on helping me achieve my investors unique goals. Can i find an Investment Firm that gets long term the way i do . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Hi, everybody. Heres whats coming up on the exchange today were going to take a choloser look at these earnings plus chipoltle is the best performing stock of the yearment the company just delivered another big speech, there are some challenges ahead. Well speak about it with the ceo ahead and weworks rescue deal is comeing not a minute too soon a look at how close this company was to running out of money. Scott, well see you then. Thank you very much all right, morgue b ben stanley shares are up more than 6 o traders think the run is going to continue. Jon . Mike wilson was blocked from buying these, but we did see unusual activity in microsoft. Are you guys doing the exchange with kelly . We arement shes got two bags of them. Focus, focus. Theyre buying upside calls, scott. December 46 calls, so not a lot of out of the money, but a great trade can get you into this one for a buck 25. 5,000 of those have traded today. Second one, tal. This on the put side education and is something about to fall out of bed thats what theyre betting on in in case, scott. Stocks 37 or it was 37 right there. Theyre buy iing the 36 puts. Those puts basically november 36 puts, i bought those puts, this is a downside play not upside not calls. This is downside lastly, zoom media the stock came here, ran to the upside, sold back off to 62. Now theyre coming in on the upside take a look at the november 65 calls with the stock basically 63 theyre buying those calls in really big numbers im in that as well. Probably be in that one about a month. Got a quickie for you hold on a second. What in the world are you wearing . So glad you said something. I wanted to Say Something so bad. No, its not. What the heck is that you know, i said kelly has all these m and ms i keep the spare ones right here in this pack along with my phone. I dont know what to tell you. Real quick, scott. I know. Back to you, scott. So in the financial world, take a look at fidelity november, 125 calls. Those are already in the money calls. Thats when they started buying them, scott. They actually sold the 130s against them but some very, very large buying in there thats an expensive trade. So thats a lot of money that somebodys putting down expecting this thing to move to the upside in a very short time frame. About a month call it i guess right now. Real quick, i already teased it once micron, the november 8 calls, they are buying those calls today. Not huge numbers november 8 to the 45 calls just out of the money so in other words, its just above where the stocks trading right now. Those are trading for about a dollar we bought some of those. I love that trade, as well as the other one. I will b ill be in both these trades in a very, very short timeframe. I know. That makes a fanny pack look fashionable. Come on, scott. This is so much better you need it when youre on your motorcycle and cant reach into your pocket. Hey, im out of here. Im going over with kelly. You and buzz light year, come back over here. Buzz light year. All right coming up. Were answering your questions next cnbc. Com halftime tweet us were back right after this. When you look at the world, what do you see . We see patterns. Relationships. When you use location technology, you can see where things happen, before they happen. With esri location technology, you can see what others cant. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Takin it off road station ted goiwagon, eh . Ip, huh . You know its an suv your family is duckin and rollin. While we stowin and goin but thats cool, i know for a fact your suv does not suck. And why is that . It aint got that vacuum in the back, whoo sucking stuff up what else are we gonna find . We got to go. Vacuum in the back, hallelujah get 0 financing for 60 months plus 2,250 total bonus cash on the 2019 chrysler pacifica. Is that pgim, we see alpha emerging in the trendsete . Driving specific sectors of outperformance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Every day, our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. All right. Lets answer your questions now. Joe, you first ricky in new york. Oxy. Down 30 year to date. Report earnings on november 4th. There is a chance oil could rally because positioning is very light i like hess and one oak better. Gerald in massachusetts wants to know about crm. Got into salesforce at 161. Average down. Definitely its a great longterm secular growth story and dream force is a big conference they do in a month and the stock usually acts quite well so i would actually add here the valuation is the only thing that kind of bothers me. Okay. John, for the record, i meant woody. Okay yes. Woody not buzz. Either way. Anything but late for dinner you can call me. Casino stocks from daniel in new jersey. Yep i own several. Weve had unusual activity in mgm. Also, had unusual activity i believe in lvs Las Vegas Sands so i like them both. I think over the last couple weeks, theyve done okay theyre going to do better going into the Fourth Quarter here. Pete, david north carolina. What do you think about pfizer love pfizer, david. Ive owned this for a very long time now multiple years and i just continue to create my own dividend stream. I think they have a great pipeline, im holding on to it. Were going to take a quick break. Come back. Do final trades straight ahead obvious. Sometimes, they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. But she wanted someone who loves with the cats. Ng. So, we got griswalda. Dinners almost ready. But one thing we could both agree on was getting geico to help with our renters insurance. Yeah, switching and saving was really easy drink it all up. Good could have used a little salt. Visit geico. Com and see how easy saving on renters insurance can be. So servicenow put your workflows immhm. Cloud, huh . Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. Trades in a minute but we do want to get an outlook ahead of microsofts earnings everybody owns it. Yeah all hands are in the air hhuh. Wave them like you just dont care thank god the camera was still on the wall. Be quick. I think the execution when he first became the ceo is just continuing to play out and the real storys going to be are they digging into amazon in terms of are they going after number one and making some progress and i think they are. Doc yep i agree and i think microsofts going to win we had unusual upside call activity yesterday im buying at a lower strike because i think it was way too optimistic but i think they beat tonight. If a bar could be high, could it be any higher than it would be for microsoft given the run i mean, i kind of think so at this valuation but i think if they do 60 or 60 plus minus one or two, that actually is going to be very good for the stock so i like it small position, though, for me. High expectations hope it misses ill buy ill buy more. Lets do finals steph, youre up first. So johnson and johnson. I know ive been preaching this for a while. I bought more. I still like the stock the fundamentals are very strong. Pete, what do you got for me . Mastercard. Some call buying very, very shortterm but i believe in this stock and im going to probably buy some. You believe in it more than visa not more than like them both. You own them both i do not. I do not. Crm salesforce. Com, judge i like it. I know its not an earnings play because this is shortterm option buying. Earnings arent until late november really. But i like this one and i think benioffs going to light it up. Last couple years, ive talked about avoiding the political rhetoric by being in medical devices. Ihi. Its a medical device etf. Im already long pki but i want more exposure to medical devices. This is going to give it to you. This is Intuitive SurgicalEdward Life Sciences good etf. All right you see theres the medical devices having a very big day. To your point, cramer was talking about this earlier today. Dow right now. Got our eye on facebook in d. C. As well. Zuckerberg still there the exchange starts now. Thank you, scott hi, everybody. Heres whats ahead of us. From libra to china to the elections and privacy. Facebook ceo Mark Zuckerberg is facing tough questions from regulators right now is he fighting a battle he cant win . And is the stock now stuck in purgatory . Well debate that. Plus, boeings bounce back why are they so bullish today and should they be well di plus, an exclusive interview with chipotle ceo brian nickel were going to talk about the stock