Facebook, is there still too much risk in the stock and differ devidend darling. Ten stocks making big gains. The Halftime Report starts right now. Welcome, good to have you with us on this thursday our vichlt committee, joe turn know, Jim Leventhal and pimco portfolio manager. Nice to have you back. Lets start with the selloff of stocks, it was the worst day for the s p. Chicago pmi number going cold water on things may be bottoming. Josh, about to come in today, apple good, facebook good, earnings pretty good wow that pm movement, 43. 3 versus an estimate of 48. 5, the worst since 15. Are we reassessing now once again . No, because we had a rate cut yesterday. Well it may pause now the s p 500 hit an alltime high yesterday its down marginally today if the stock market went a point a day, no matter what, wed number a bubble. So we backfill perfectly natural. I think there are those that hit prior levels one could be the kre, regional banks down today double sfs on the session. They just hit previous resistance yesterday same thing with industrials. Take a look at the xli, previous resistance couldnt get through back them off a little bit okay, its not catastrophic, everyone should calm down, happy halloween. But recently, it was a pretty good backdrop for stocks still is. All of these things that we see. We had a new alltime high yesterday. Less than 24 hours. Here the narrative of a would you back, the feds called wrong from the beginning wall street journal editorial board, did you all see that . Yeah. They dont blame powell, they blame trade. Youre exactly right. President trump and some of the white house blame the fed and europe for the slump but neither holds up quote, the strong evidence is that trade policy is the main growth culprit until trade remains unsettled can we truly take the next leg, erin, that i had asked about a couple weeks ago yes, the questions that were getting a lot of is the worst over are we seen an inflict in growth over the last couple of months, i argue that the weight of trade is going to put down more pressure on growth however, that notwithstanding, it doesnt mean that equities necessarily need to do poorly. Emean, weve already seen the last five months, trade with wait on Global Growth and u. S. Growth at the same time, as david just said, stocks are at a record high i think what youre going to see is more of this divergence where the strong consumer cyclicals those that leverage the strength of the economy, like consumer cyclicals like housing those are going to continue to do well energy is terrible materials and mining, those sectors are going to underperform fortunately, theyre tiny in relationship to the s p now. Exactly i think the two of them are less than 25 of the s p. Much less than that weve had a good month, right . Yeah. We had a good month, now were going to the final two months which are historically pretty good. You usually dont turn back now. How do we factor that into the equati equation we dont turn back now for the s p 500. If theres any change that you want to consider, its in the strategy theres more of a favoritism towards the valuetype names health care up 5 in october. The leader, consumer services, 3, Financial Services up 2 to joshs point so i think the strategy potentially carries what carries the baton to the end of the marathon and one that i think comes in very strongly with positive returns for the s p i think now it shifts a little bit back towards growth when you have the tenyear yield pulling back and the messaging from chairman powell from yesterday, everyone is focusing in on the end of the rate cuts i think more importantly, yes, chairman powell told you that the bar is very high for him to go for a fourth rate cut but he also today you that the bar to begin raising rates is even higher. And i think youre going to be in an environment where youve got tremendous liquidity, low weights for a longer period of time and growth comes back and unless the chicago number just lowered the bar a bit thats more why growth will be favored over value. If theres economic weakness, i want growth over value did you have something . Yeah, what the market is saying, they dont believe chair powell yesterday rate cuts thats come in and pulled lower so the markets telling you right now that they actually think that the fed is going to have to cut again and its likely going to have to cut, you know, probably in the first or Second Quarter of next year. But definitely, the curve flattening and the rally until duration the last few days is disagreeing with chairman powell last time i heard from you on this desk, i recall that you were underweight stocks, right yeah. Weve been overweight in cycl cyclical and overweight in Residential Housing sector and overweight tech but underwater cyclical and you remain that today yes, weve gotten a little more risk on mutual equities now. Where were positioned is long Consumer Discretionary tech sector, underweight the more global. Is that because you dont think weve seen a trough in growth and in earnearnings i mean, im not going to fault you for thinking that when you throw a pmi number on the board like you did today yeah. We actually think over the next couple of quarters that were entering this window of weakness where growth is going to continue to carry. We dont believe and i dont believe were going to see any real fix with respect to the trade tensions existing trade tariffs are going to remain in place and thats going to put pressure on growth. What does that do, jim, for tech nasdaq is up 4. 5 . Ibb is up 8 this month. What do we do with those trades now . Lets talk individually, ibb, i look at that and say thats a bounceback frommen oversold position where botha and the pharma sector has been laboring under the potential for price controls you mentioned tech, look, wherever tech goes, the market goes so lets answer that question, where does the market go frankly, were stuck here, scott. You know ive been looking for trade tensions to ease over the last few months, weve had trade tensions ease. I dont think theyre going to ease any more. They could get worse but the market expects it to be signed and then we ask whats next. What the chinese are clearly saying dont get your hope up, fellows. Taking things like intellectual property and putting that on the table aint going to happen anytime soon the market has got all its going to get out of trade. Tech is an area, to answer your question, where there are things that are working and were seeing it with facebook and apple. So, the big cap rally in tech in october apple up by 9, by far the outperformer, facebook up 6, microsoft, alphabet and amazon also having good runs. Its interesting to wonder whether money as crammer was talking about has come out of names like grub and shopify, and younger growth, moneys coming out of them and back into the faangs it is, what hes saying, im going to pay for growth. These ones you mentioned grub and others, the earnings arent there. Were still cloudy as to trade or cloudy as to where the rates are going to go. Were not sure where the industrial world is going to go. The Consumer World is strong go to the Tech Companies that are proven with cash flow. For ones, for lack of a better word, legit theyre real companies. There was a sea change in the last few weeks yes, it is. And its not a fundamental sea change sderot was right, it went almost overnight. Uber was the starting gun and then cemented. Almost overnight, large pools ever allocation decided, the game that we pet on users and how much revenue and market share is not as much fun as it used to be whats the old game . Why do you think apple added 90 billion of market cap in month of october because they have a third camera no there was an absolute shift away from growth and any costs and back to who are the companies that are able to do it all spend on r d, spend on buyback, spend on dividends, employ people, and thats apple. At the expense of those names that i mentioned along with your winner of last year, twilio which is now a disaster, right yeah. Stocks down more than 30 in three months names like etsy and all of these growth names throw twitter in there. Twitter beat on daus, daily m monetizable whatever alphabet assume, slight missed on earnings, demolished from a micro standpoint, what the market is also telling you, they dont want the indebtedness, and they want cashrun companies and large and if you look at companies that responded price after the earnings, its showing growth in margin Margin Expansion is so important. Those companies that youre identifying, exalt, those are companies that are growing their margins. Youre not seeing that in the ipo markets. Faangs are back faangs are the places to be. Im going to call it Large Cap Technology because there are some components of faang that i dont believe are back but there are other largecap Technology Names that absolutely i believe you want to allocate towards like an intuit or adobe. I have my apple. I believe in that. Amazon, i wish it would come around and start trading well. Its not responding the way you like it to alphabet is coming back. I dont know if its specifically all faang i think its broader. Let me throw out two names one i own. One an opportunity to get in and teledec on the show. Earnings report slightly ahead not able to get above 70 month after month after month. Once it gets through, you see what happens, the buying pressure all of a sudden shows up thats one put that aside the other one is shopify which falls into the category, scott, that you were talking about, these kind of growth at any price names so shopify has been punished, shopify comes out and report what looks like a good earnings corner and then they make an announcement that theyre investing more than people thought look at the bludgeoning. This stock is viable they lost 20 or 30 of market cap already really for no good reason, other than that sentimentship that were describing i woe go uld go until here, use0 agency my stop the upside, if it gets anywhere near those highs, the fundamentals re, the growth ar still there. Now youre just buying it much cheaper. Everybody earns apple, right . You all have to be happy with the price action of apple today. The bar was so high after a move of more than 50 and now you got a 2 jump right now. Its pushing up against another 52 sderot, ill give you the first crack at this one . I think what everybody was pleased about, it was just not gent on its dependent on the iphone. There are other things driving this stock in terms of growth. Chinas improving. That gives the market the ability to say its not just the iphone Services Setting a drop in iphone sales yum beat performance and 11 for a very small part of it. If you look at the rotation cycle its actually better than what most people think so i think the stock is reflecting that. Also to the point we talked about. Look at the Balance Sheet of this company youre getting growth and a strong lead. They as released new phones at new price points which were very well received people thought apple wouldnt do that thats part of the story, the other part of the story is tim cook said by 2051, they want 50 billion in revenue theyre almost at that goal. Another thing that people thought wouldnt happen. We talk about season ality, that is going to raise apple share prices over the next few months and weeks people arent going to sell if theyre in taxable accounts and take the taxes and if youre looking at performance and you say how do i catch up, you got to show apple . Webb bush and davidson and Morgan Stanley raises to 295 before we get to 400, i think by the end of november, were going to see this at 260 you may say its only 4 , but for a onemonth return, thats pretty easy. Then you actually get into holiday selling season and all of the inventory channel stuffing thats going on which is legitimate im not say its not legitimate, but it has to convert to actual end users. The beat and raise. The guidance was fantastic concerned about inventory, would there be channel stuffing back into the u. S the concern was alleviated and ahead of the chinese tariffs that question is slowly answered but you have to feel better about that the launch of apple card, apple incade the impact on that, to joshs point, so this was a quality, quality beat and raise with strong guidance. Now you have fundamental guidance on this performance that you had going on, aligned to jimmys point on the calendar and that should easily take you into q1 of 2020. Our next guest also raised his shares of apple. Tony saakcsackonagh hi any, toni. Youve been a chaser of apple. In ten days, youve raised it a second time, 205, on october 23rd, 225, today, to 250 so theyre exceeding your expectations why . Look, i think the company is executing well and i think you have all noted there is a market rotation towards quality and quality is fortress Balance Sheets and quality is predictability of earnings and margins and apple exemplifies that so i think a combination of good broadbased execution at apple, kudos to them. As well as market receptivity, for high quality you know, highquality names in general. But in the tech space as well. Has lots of real strength in the name youve been a doubter, though, at least to some respects because you refused to raise your rating on the stock from a market perform where you had it for many months im trying to figure out what more you want, a breakout in the stock, highest revenue ever, accelerating growth from all of the areas other than the iphone. And thats offset some of the weakness in growth and iphone. Their returning brinks trucks worth of money to Shareholders Services revenue alltime high, toni, what more do you want . Well, look, i think there are two things at play here. One is, if you look at the valuation of apple, its comfortably at a fiveyear high on all relative metrics. If you look at the last five years which has sort of been the posthyper growth period for apple. It trades at. 8 times the market multiple right now its trading at 1. 85 times the market marketable. Its 25 more expensive than it has been on average. And thats pretty similar whether you look at it on a cash flow basis or an earnings basis, relative to the market so, theyre doing good things but the stocks being rewarded for that and i think one needs to be careful when valuation more careful when valuations are at elevated levels. Thats a fair statement the stock has already had multiple expansion if you were to, lets say, downgrade it today from a buy to a market perform for all of the reasons you just said, id say, okay, thats fair. Multiple expansion, getting a little high in the air but were not talking about a move that was made today all of the move from then until now it seems youve missed yeah. And, look, i mean, im not going to im not going to suggest that i havent i think your assessment that weve been a chaser has been correct. And i think that, again, is kudos to Strong Performance from apple. I think its also, you know, a reflection of kind of how investors are looking at the marketplace. I think the second thing that we have been anxious about and are still not 100 out of the woods on, scott, is the strength of this iphone cycle. And you say well, does iphone really matter . And i think its important to rewind to a year ago where the stock was on a relative basis at similar levels on a relative basis apple hasnt outperformed over the last 12 months its perfectly in line with the market so, a year ago, apple was farrelli ifaring really well. The rhetoric there is services was doing great, apple doesnt matter as much and what happened we had a weak iphone cycle and the stock was punished at least for me, i dont think were out of the woods that we know this might not be a weak cycle. And the reason why theres more risk in this cycle for apple is, unlike previous years where average selling prices were going up this year, average selling prices will be down 5 to 10 . So, even if your units are kind of okay, your iphone revenue could be down 5 to 10 which is well below where the street is weve been looking for one or two things one, confirmation that the cycle will be strong i dont think anybody knows that at this point. We do worry about the asp headwind or looking for a valuation break. And we havent gotten any either maybe well be wrong on the cycle in which case well be the chaser toni, its josh brown, wouldnt it be worthwhile to acknowledge the fact that throughout the last ten years since the iphones come along and become what it has in just this short period of time, we have seen a multiple on apple stock, ping from 20 times earnings, back to 10, now currently 16, 17, and everything in between and really, thats been as big of a driver as the fundamentals. So, as an analyst, even if you get the earnings per share right there is so much more that moves this stock, whether were talking about activists pushing for buybacks or were talk about the companys president da election for raising its dividends, whatever the case may be isnt that an important component for the investors to listen to you that the fundamentals only tell part of the story of whats happened to the share price . No, absolutely. Right now, the stock is trading at 19 per earning. The stocks at 250 about 19 times were at the high end of the range. If you were to narrow that to the last five years, josh, because prior to five years, apple is growing at a much more elevated rate. The last five years it hasnt been growing very robustly right if you look at the last five years, youre really, really at the highest point weve been and, hence, a little bit more caution on that point. Last question to you, toni is from Jim Leventhal yeah, toni, this question about the iphone cycle, knowing that youre not going to get an answer on that until how robust the cycle is until middecember, why not ride this thing into the end of november . It just seems like the path is so clear and very rarely do the skies part the way it has, it seems to me, the way it has, on the stock . Yeah, look, i think well start to get indications in towards the end of november, beginning of december. Thats typically where we start to hear supply chain noise you also get a flavor for supply command balance on iphones so we maybe have three or four weeks where youre likely to get material news flow, either one way or another and then the question becomes did inertia continue to carry it up and it very well may be given the dynamic afoot that you guys had mentioned before but, you know, look, we tend to move our ratings, you know, every couple of years. And we try and and our framework for apple is that its less of a growth stock and its much more valuation and cyclesensitive. And so right now, if thats our framework, we dont think we have valuation uniquely on our side and were uncertain about this cycle. We feel pretty good about next year but were uncertain about this cycle. And so, you know, we may be splitting hairs, on the other hand, to i cant disagree with what youre saying for the next month. But i you know, i tend to look at things on a longer basis. We know we appreciate your time, toni. And we certainly appreciate your willingness to engage in a thoughtful debate with us. Well, thanks for having me as always, scott. Well talk to you soon. I think he brings up very really valid points. It reminds me that if you own the stock make sure that its not too big of a position in your portfolio and if youre going to chase apple today, i think you want to wait a little bit if you dont have any capital in there because you might get an opportunity 19 times other thing is, in the holistic sense, luyou look at yr portfolio, you probably have a target invested in funds, you may have an apple that you dont realize, its just not called apple in every holding you have. Heres what else is coming up on the Halftime Report. Home improvement stock lowes up 10 in three months. And the run may not be done. Our experts debate whether its a good play for your portfolio in call of the day. Plus, ask halftime, you can reach us cnbc. Com halftime or tweet us the Halftime Report with scott wapner and the traders is back in two minutes annoepidemic fueled by juul use with their kidfriendly flavors. San francisco voters stopped the sale of flavored ecigarettes. But then juul, backed by big tobacco, wrote prop c to weaken ecigarette protections. The San Francisco chronicle reports prop c is an audacious overreach, threatening to overturn the ban on flavored products approved by voters. Prop c means more kids vaping. Thats a dangerous idea. Vote no on juul. No on big tobacco. No on prop c. Welcome back, everyone im sue herera heres your cnbc news update the democrats pushing through a pack avenue of ground rules for the impeachment inquiry of president trump. The vote was 232 to 196, with all republicans against the resolution and two democrats joining them before the vote, House Speaker nancy pelosi defended the impeachment rules plans. We are legislating and yes, were moving down the path by putting forth our procedures which are transparent and open, and frankly, more transparent, more open, giving more privileges to the president and his argument than was given in the past mandatory evacuations are now in effect for those living in you uruba valley, california its destroyed three homes and the Kansas City Royals have a new manager they announce they had have hired former st. Louis cardinals skimmer mike ma thathenmatheny. He made the playoffs in four years. That is the news update, scotty. Back to you. Lets talk facebook. Shares higher, social network reporting better than expected results on the top of the bottom line, as well as beating forecast you own it, you must be a happy man today . The stocks had another applelike run it has, and it has come back from kind of the bottom where they announce they had were going to spend a lot more money and kind of like with shopify. The margins are better than expected with the regulatory, if they do split it up, its worth a lot more separately. So, right now, i like the way its going if they do, i have option value of a much bigger pie i would say thank goodness in 2012 they bought instagram, because if they didnt, facebook would not be in the position they are now call me one of the people i will not buy it, because i have a bias against the company because i dont believe in what theyre doing right now. So im not going to buy. But this company would not be in the position that theyre in and i do think theres a sentiment hurtle that the company has to get over its weird, this company hasnt had a new high in 15 months i think its the only faang with that much distance between a prior high and now its the one with the biggest regulatory its 7 ill just say again, look, you want to own all of the fak stocks, some people want all of them i own google and apple facebook, the cross hairs are them with cambridge analytica, and all of those other things. I do think its attractive. They have 1. 6 billion active daily users. Thats a great point. Much of the market expected they didnt have upside in u. S. And canada active daily users and subscribers in both u. S. And canada increase 39 year over year in terms of active daily use. Can we use that, judge, as a segue to twitter because its the exact opposite. Love that thank you for asking thank you for asking 300 million users and josh will know better than i. But i think only 100 million daily active users i think thats what dau stands for. You compared that to the number, 1. 6 billion. If ive got to own a social media stock, its facebook over twitter. One is worth 6 and another is worth 19 i think that differential is fairly accounted for i dont think 300 million total users, i dont think twitter has the oomph certainly not growing, as the active using count i dont think its the user size thats the issue. Theyre not executing. And they actually admitted that. So they actually were able to grow active usage on, of course, almost every metric. Unfortunately the street is now hyper focused on profitability, as we talked about already and theyre not executing. Theyre not doing it one thing they really cant to the extent that facebook can, so much of the platform is casual, anonymous, pseudo. Facebook know what is you had for breakfast. It almost doesnt matter what zuckerberg says in front of congress until the advertisers say we dont want this, theyre going to keep doing it and the advertisers exactly right. Its an google, facebook, every other property that you could conceivably invest in. Did not change will not change. The politics might be ugly, but the reach that the advertisers have directly into the thoughts of the consumer is unpalpable twitter is nowhere close you made the point, i think your exact words, i dont care if the stock facebook goes to 500 yeah, im not owning it im not owning it. Yeah, it disgusts me. Do you want to opine on twitter what jack announced yesterday . Yeah, and twitter has its flaws. Believe me, everyone does, lets just put that out there. I think what jack is trying to do, i think he woke up sitting crosslegged on a mountain in nepal and had this realization that it might actual little be good for business longterm if his platform doesnt become the most vehemently despiiespised be the upper and middle class in countries. It may be a point where it affects your business. Its not in 2019 so i think what twitter is saying, were not going to take money from politicians we wont take money from campaigns. We wont even take money from issue campaigns. The only money theyll take are things like go register to vote. I think what hes trying to make the case for, he may end up being wrong, is that by being supportive of Democratic Values and the truth and not allowing people to buy influence, making them earn it through their messaging the oldfashioned way that it might be better for the health of the platform long term and therefore more profitable. Its a big bet every single piece of evidence is against that. If you look at facebook versus twitter yesterday, the universe is telling jack, no, its the opposite kill them all. Jack didnt believe that i hope he ends up being right. Like for mankind that would be good i wanted to get your take on that straight ahead, dividend darlings, five stocks, also beating the maetrk our guests will give us their best dividend plays when the Halftime Report comes back after this 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. Ladies and gentlemen mini is a different kind of car. For a different kind of drive. Ladies and gentlemen for the drive to create a new kind of family car, that became a new kind of race car. For the drive to rebel, zag. For the drive thats inside you. And inside us. Thats the drive under the hood of every mini. Because every mini is. For the drive. 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Welcom welcome back well check out names, xerox, target, tyson foods, kla, all of them beating the dividend yield than the benchmark treasury note we also want to point out our new and improved data on our charts youll now be able to see realtime ratios, market caps, dif densd dividends. More data than weve had before. Were decided about that we want to talk about some from our trader as relates to dividends. Jimmy, your best play right now. Its not the size the dividend its whether they can increase the dividend in the future, my three, general motors, cvs and Marathon Petroleum going through transition in gm its the electronic and autonomous unit. And cvs. And marathon, theyre going to break up their company whats being hidden the degree of cash flow generation which theyre creating which is going to allow their already high dividends, 3 to 4 yields to increase in the next months. Thats not priced into the stocks thank you for those erin brown my top one is the vanguard sector i think the real estate sector generally speaking right now is really positive from mental dynamics undergoing the apartment reit space, as well as the office space and industrial space as well. The fundamental underlying of property sales, transactions are almost up double digits. In addition to that, price gains in the 8 to 9 range. Underlying that building sector very strong fundamentals when they remain at low levels, these tend to be leveraged plays its a great operating requirement for reits right now. Thank you for those joe. I have a similar strategy, and that is Dividend Growth. What happens to dividends in a recessionary environment even with a weak economy youll see the dividend retract Dividend Growth is on the decline over the next couple of years and its expected to decelerate about 2 . I Want Companies that are going to grow their dividends. I want Sectors Health care, 2020 is going to grow give deividends by 11 . Three names to focus on, jpmorgan, expected dividend 11 . How about microsoft which has a dividend yield less than the overall dividend yield 8 lastly, 4 for home depot. I want that Dividend Growth thats so important on the Economic Cycle right now sderot to what will you just said, i like the financials, the health care and the Home Building cycle in there if you look at the three companies if you look at the dividend payout ratio, thats the percentage of cash flow that theyre using. 33 or less. It has room to grow the dividends. All of these stocks have grown their dividends double digits. Look at the earnings trajectories, theyre going to be double digits for the next three years or 18 months these are dividend growers jpmorgan, massco as well. United health. Josh yeah, i agree with everything erin said about real estate. Not a lot of people realize they broke out real estate as its own s p sector last year its the second best performing sector in 2019 just behind tech, up 20 total return phenomenal place to have been and nothing is really changing i agree with what she said in that vein, im in store capital, one of my favorite names, started talking about it at 23 or 24. Today, it got a 4 handle for the first time congratulations to everybody at store. The story here is amazing. The boomers are retiring, 74 million of them. Many of them own Small Businesses what that means they usually own the real estate that the business is housed in. Store says unlock the value, well take your real estate. Well be the new land board. That way you can invest that capital in growing the business or the environment this is a secular trend. I dont care what the fed does tomorrow or the next day im staying with this trade. I do believe with everyone Dividend Growth is important i also own in the reits invitation home. This is another story of people wanting to live in Single Family homes but not having the money to own them. This company owns 82,000 of them and theyre renting them were answering your question on shake shack and blackstone and more. Go to cnbc. Com halftime or tweet us were back in just about two minutes. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. Some farms grow food. This one grows fuel. Exxonmobil is growing algae for biofuels. That could one day power planes, propel ships, and fuel trucks. And cut their Greenhouse Gas emissions in half. Algae. Its potential just keeps growing. 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. Hi, everybody, im kelly evans and heres whats coming up on the exchange. Are bad trade deadlines losing their power for stocks plus, weaker iphone sales, the First Quarter shows its no longer a onetrick pony. And how big does have to be . Plus, with wildfires, theres a new initiative to prevent wildfires before they start. And comes from investors well explain that and more on the exchange. Scott, back to you kelly, thank you. First up, joe, you get the first one, pnc or axp from chuck in mississippi. Two quality financial companies, however, i dont want to have to perform specifically on Net Interest Margin and loan growth i think dont want those to be the metrics on which my company grows. American express provides more, thats why i own it. Thats why its better jimmy, wheres it going nowhere is the answer this stock has been a disaster we know that heres the bottom line, its not really budging nobody is using slumber day services in a degree that would merit the stock going up this is just too hard. Theres easier ways to make money. Leave it alone josh, ron in washington, shake shake, are you still bullish . Oh, yeah. Well, stocks has been in since december of 2018, its pulled back slightly from a high, along with a lot of other companies but really for no from the high along with a lot of other companies, but really for no reason and remember, this is the part i never want you fo forget. This is still a company thats infancy. Only a few hundred locations only a 2. 79 billion enterprise value. Its peanuts the potential over the next ten years is dramatic so im not a seller i dont care if they miss earnings emerging markets, etf emerging markets have been the quiet outperformer over the last three months. Where we are today sh its likely to take a pause fundamentals underpinning it weaker dollar. Dollar starting to roll over and the fact the fed has cut rates again certainly positive, but november is typically a weak month so id wait for a pullback but going into next year, i think its going to perform well sarat, should mike in texas continue to hold blackstone . Continue. Over 400 billion under management main focus is and real estate two areas i like a lot and a dividend over 4 i would hold it for a long time. Dominos pizza making gains this month options traders say theres more upside ahead pete joins us from minneapolis to tell us, pete yeah, you want to talk about a very volatile stock, scott this was in july 282 stock down to 222 and now back up towards this 270 number and today theyre rolling up this is somebody who had a successful trade earlier they owned november 260s they sold those today. I bought along some of those calls as well. I like when i see this thing where somebodys won and they want to be in the trade so im in here. Probably be for about two months Something Like that. Im going to give you another name ive talked about time and type again Marathon Petroleum i know jimmy loves this name we have had hits in there since the stock was 46 a share. Weve had 15 ever since and they continue to come after this one, scott. The january 70 calls, 30,000 were bought for around 1. 83 they were sell iing them against january 175s so theyre spreading off a little risk. I love when i see this kind of trade. I own the stock, the calls i think the stock has b potential to burst up through that 70 number in a hurry or at least in the next couple of months. Good stuff. Pete, thank you. What are you dressing up as tonight . Hey, im going to go as my neighbor, jesse. Not going to be that hard. Me and the governor, man just a normal day, actually, for us well talk to you soon, pete, thank you. 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A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Lowes has rallied raise the price target to 125. Sarat, you own it. Been a volatile stock we like this whole area. Kind of created a basket of it with lows. Masco fortune brands and Stanley Black and decker i think it has a lot more money coming in. You own depot, too. Dont chose lowes because theres more multiple expansion. Theyre working on their technology i feel its a great company, but fully priced theres a year to date performance on both. Final trades i really like the Retail Sector here its underlying, broadly speaking because of the death of the u. S. Shopping mall i think that given fact that the retail earnings were really strong for the third quarter, its a good place to be ined consumer holds up in your mind absolutely. Josh brown. If you think the consumer holds up, j. P. Morgue chase holds up fbi its going higher from here. Up nicely today bopeete and i have mentioned it, but Marathon Petroleum they reported earnings today and it was really, really a good Earnings Report theyre going t split up the company and i think its just profit taking. Duncan brands good Earnings Report espresso, digital, doing well. Tough day for the dow down 230 the change starts now. Thank you. The president insists the phase one deal with china will be signed soon but chinas reportedly saying that might be all the u. S. Is getting. That plus bad manufacturing data spook iing the market today also apple delivering some strong results despite weaker iphone sales is the company proving the critics that it is no longer a one trick pony plus whos getting it right on politicads. We begin with dom chu with the numbers