Later, stop trading. Thats the message to the aging generation well tell you why it could be a warning sign power lunch starts right now i feel so good being part of the aging generation yo boomers out there im standing tall with you all here is where we stand stocks are taking a breather from record highs. The company gave a grim out look saying its facing increased economic pressure. We dive right in now with walmart. The retail giant and d ow component hitting all time highs. Same store sales strong. Online sales surge 41 and they are seeing strong growth in snacks and beverages and fresh food digital and grocery Growth Drivers are the key. Does the stock still have room to run lets talk about that. Groceries have been a big driver theyre the largest grocer in the country and not by a small margin now they are going to orders and delivery and they will put it in your refrigerator. Sure. 56 of walmart sales in the u. S. Come from grocery. Just to put that into p perspecti perspective. They have been scaling up their infrastructure on the back end for years now. It got the point you can pick up groceries from 3100 stores in the u. S. They will deliver your order from 1400 stores earlier this month they launched an unlimited grocery delivery option where you pay 98 a year which is a little bit less than an amazon prime subscription but you can have as many grocery orders delivered as you want clearly stepping ahead within that category. They have been a disrupter not just in grocery but in digital. Yes digital is a big part of their grocery business they called that out continuously this quarter. That 41 growth online a lot of that is thanks to grocery which is a low margin business to be in. I think thats the one area that investors are kind of looking at is margins thank you very much hang around as we bring in joe feldman. He has a bullish rating on walmart and increased his price target from 125 to 130 joe, welcome good to have you with us as luck would have it, at an ve event on tuesday, we have the ceo, Doug Mcmillan of walmart. Hes our lead off guest. Becky will interview him what would you asking him . Your first question if testifies hitting right there. First thing id want to know is how he will continue to integrate the digital side of the business with the physical side and how does he expand beyond grocery to capture more wallet funds what will be the key to that . He mentioned increase of sale of general merchandise. Do they not have the right mix there in general merchandise how do they need to change that business to attract consumers . I think they have the right mix. Its matter of getting the product in front of consumers. Maybe doing a better job when doing an Online Grocery order of presenting more general merchandise or things that might be topical or seasonal at the time they are starting to do that with grocery i know they are doing things like moms going to pick up the groceries, her child has a party to attend, why not buy the toy and have it at the car at the same time. I was going to ask you, joe, if you went back and dialed back the clock six years ago, its very risky to bet against the biggest guy in the room but would you have guessed that walmart would have made the kind of transformation, the kind of evolution that it has from where it was six years ago to where it is today, what do you think . Candidly, the makings were there but i dont think a lot of people would have guessed that i dont either. You see a lot of retailers dealing with it. Its tough for them to turn things around as quickly as they have and become a much more nimble company, to think like a digital company, these guys have been a very good job. Really strong management just throughout not just Doug Mcmillan but all the way down i think thats the quality of kwau walmart. Thank you very much we appreciate your time today. You have an out perform on walmart with 130. Thank you as well. Dont forget to visit cnbc. Com disney plus having a strong debut. More than 10 Million People have signed up despite some hiccups, its been magical. Plenty of unknowns remain. Subscriber loyalty disney may be at the top of the world but could this turn out to be disney. Great to have you both. I think the question for a lot of investors is given the run we have seen since they announced the pricing plan we have seen a huge gain in market capitalization how much of that is warranted at this point ten million is a great number but this is baking in a lot we can put multiples on the traditional business we know its probably a work around investors are describing Something Like 80 million. Clearly a lot from the valuation side is being put on disney plus service. Do you agree with that . It remains to be seen how large lit be netflix has 150 million still using cash flow per year and you have a whole new suite coming in. You have amazon and disney who just entered hbo max, peacock which is comcast streaming Service Coming out next year. It seems so far were not seeing a lot of profit. Its om going nly going get more competitive. Were not going to see profit for i dont know how long. Five years. He said dont look for profits until 2024 and they are looking for 60 million by that point. Thats basically a million subscribers they are signing up. Thats the number of subscribers that netflix has in the United States currently and they are not profitable. They dont have a pay one window disney has that component. For everything it green lights for, disney, pixar, marvel, they get paid for that and it continue on their service and they continue to get paid. Its slightly a different structure for them disney has a tremendous content infrastructure in make sure, they make it netflix has to go buy it and build it the content between the two is very large. That being said, disney has these brands in which content exists they have the existing library that is there and its deep as the ocean is they have come in at a very attractive price point i think we would all gree. Its hard to say no to whatever it is its hard to say no to an incremental 7 a month if you have two kids and thats the last retail price. She laughs im guessing by 2024, its not 6. 99 i think in two years youll see pricing power. Netflix raises its price every two months its just the way the marketplace is going before you know it you have your streaming bundi inles rivals wh you paid for cable before. For every regular subscriber they are losing on the declining legacy business. Thats more money they are pulling in they still generate 8 from the eco system those faced all the same secular head winds much more than the streaming subscriber but its grown. That base is growing how much are they willing to wait through that hand off with this kind of valuation already in the stock thats the question question youre buying into the idea theres start up at disney you want to value that its trading at a high multiple. How much of it do i want my dollars to go there versus the traditional business the only other thing i point out is for netflix and the u. S. The coast to generate a new subscriber is increased substantially. It used to be 30 there a 30. Today it costs them 200 plus marketing per net subscriber thats what cable costs were going to have to leave it there thank you so much. Coming up, fidelity warns baby boomers theyre stock portfolios are too risky how should they invest Elizabeth Warren out with a new campaign ad. It will air on cnbc taking on billionaire who is oppose her wealth tax two of the billionaire mentioned in that ad are firing back power lunch will be right back this piece is talking to me. Yeah . So what do you see . I see an unbelievable opportunity. I see bestinclass platforms and education. I see awardwinning service, and a trade desk full of experts, available to answer your toughest questions. And i see it with zero commissions on online trades. I like what youre seeing. Its beautiful, isnt it . Yeah. Td ameritrade now offers zero commissions on online trades. Mplgt welcome back now is the time to stop trading stocks hi, bob. Very interesting. Some baby boomers may be too heavily invested in stocks fidelity found that many 401 k account holders had stock allocations higher than those recommended for their age group. 23 have a higher percentage of equity than recommended and among baby boomers its higher 37 have too much in equity. What does all of this mean it mean a small subset of investors might want to Pay Attention and rebalance their portfol portfolio. It may mean that fidelity and other Fund Companies need to reexamine the way the funds allocate between stocks and bonds. Fidelity recommends a maximum allocation of 70 of stocks. If you retire at 65, you live another 20 years, having a higher allocation to stocks may make perfect sense longer life spans mean investors could hold riskier assets a lot longer all right, bob, stick around for us is it really a warning that this long live bull market may be running out of steam or is that the code in here at all. Lets bring in chief investment strategist what do you think of this suggestion that boomers are over invested in equities it does surprise me a bit. It surprises me, tyler. I have to think they are talking about diy, do it yourself inv s investo investors. We find our investors generally are pair portfolios are designed in context of their risks, risk tolerance. Their objectives and goals and way under 100 of their portfolios and objectives. In this particular point in time with Interest Rates as low as they are, if you can get 2 and achieve that on an annual basis over the years, the lucky thing is youll double your money in 36 years on the other hand if you can get 6 on average over the years, you can double your money in approximately 12 years the average return, price return of the s p 500 since the end of 1997 up until last weekend including the tech bubble, the housing bubble, all that kind of stuff, the financial crisis. Average return of the s p 500 is 6 thats before dividends are considered we have to think that stocks are important. Its important to consider their goals and objectives we would consider the professional experience adviser to help them make their decision bob, im curious here im more heavily invested in equities perhaps than the models would suggest. I do think the returns, you m r never go wrong if you bet on america. Thats kind of my thinking there. Im curious if you look at fund flows as i know you do and to etfs and mutual funds its been heavily into fixed income. Not just for a little while. I think that is certainly there. I think the problem is people are very concerned about future and that what they see is a lot of uncertainty they trend is to put more money into bonds dont kid yourself theres still a lot of money in stocks much more than fidelity thinks people should have the bottom line is it makes perfect sense. Stocks that out perform bonds dramatically in ten years. Why shouldnt people put more money in stocks than bonds remember the age thing remember invest in bonds what your age is. 60 years old, you should have 60 in bonds thats crazy if youll live to 85 or 95 years old a the numbers are all wrong. Vanguard should go back to the drawing board and start redoing the recommends recommendations. How does that jibe with the old saying theres cash on the side line still . I think theres a tremendous amount of cash on the sidelines. As bob and tyler were saying, a lot of people have been putting money into fixed income as opposed and taking money out of the equity market. Im not really sure what fidelity is looking at i have not read the report i dont have access to it but from what i can tell from the very well vetted news services, including yours and others, it would appear theres some other thing they are looking at. We suggest on the broadest basis, for the beginning of a consideration 68 global connects overweight the u. S. With the balance of that portion in equities, in international, developed and emerging markets. All of that in coordination with the individuals tolerance to risk and goals and objectives. The real risk we would see here today we think theres more risk in the bond market than there is in the broad stock market as the s p 500 at this point. Based on technology and globalization in creating opportunity. You have to make your judgment from there all right thank you very much. Thank you coming up, why ibm is making a big push into Weather Forecasting. Can big data warn us about big storms chips have been hot lately thats next on power lunch through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. But when i started seeing things, i didnt know what was happening. So i kept it in. He started believing things that werent true. I knew something was wrong. But i didnt say a word. During the course of their disease around 50 of people with parkinsons may experience hallucinations or delusions. But now, doctors are prescribing nuplazid. The only fda approved medicine. Proven to significantly reduce hallucinations and delusions related to parkinsons. Dont take nuplazid if you are allergic to its ingredients. Nuplazid can increase the risk of death in elderly people with dementiarelated psychosis and is not for treating symptoms unrelated to parkinsons disease. Nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. Tell your doctor about any changes in medicines youre taking. The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. Welcome back one och of our next guests saysa different chip maker could hold the key to the semi stocks next move matt, whats your bellwether chip stock right now we dont want to lose sight of whats been going on in micron technology. The stock really hasnt been acting well lately historically it wasnt correlated to the smh. Over the last four years its been incredibly correlated especially in a directional basis. When the smh made a new high in november and held that high, micon made a lower high and start over a little bit. It seems to be forming a classic head and shoulders pattern if you see a further break down in micron, it will be a lot more discriminating on which stocks in the sector. Definitely need to stay on alert. Our focus is on those companies in the higher Growth Markets that we want to be in. Gaming, data center, ai, Autonomous Vehicle gaming and ai continue to be the key Growth Drivers and looking really strong there. Theres a growing number of blockbuster games that are coming out on the market that are embracing their tracing technology that has a incredible amount of realism. The stock was almost at 300 bucks last year. Now it is strongly moved back above 200. Its out performing the broad semiindex by 20 i think theres more room to run. All right well see those results later today have to say about that thanks a lot more more trading nation head to our website or follow us on twitter. Melissa, back to you ahead, Elizabeth Warren bringing her fight against american billionaires right here to cnbc. His response next. We have details and wework losses ballooning. The company shedsing more a Million Dollars in the Third Quarter. Well speak to one expert who says wework cannot be fixed. It was sophies big day. By the way, shes the next mozart. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Platform in the cloud age. When we started datadog nine years ago, our mission was to break down silos and bring teams together. Nearly 9,000 of the worlds most Innovative Companies rely on our platform daily to run their business and delight their own customers. We see a massive opportunity in the years to come, and as we celebrate todays milestone, we are even more excited about the future. Congratulations datadog. Wheeveryone is different. Ta, which is why Xfinity Mobile is a different kind of Wireless Network that lets you design your own data. Choose unlimited, shared data, or mix lines of each and switch any line, anytime. Giving you more choice and control compared to other top wireless carriers. Save up to 400 a year when you switch. Plus, get 50 off when you buy any new lg phone. Xfinity mobile. Click, call or visit a store today. Welcome back on capitol hill senator Lindsey Graham says neither he nor President Trump watched the impeachment hearing stressing he believes the president will not be impeached this whole thing is a joke. Im not persuaded by the quid pro quo argument Nothing Happened here. Were not going to impeach this president over this. Were not going to legitimize a hearing where you can only call democratic witnesses its over. Mpl supporters blocked highway across pakistan in a effort to pressure their president to resign their ended their sit in in the capital. China inviting International Observers to a test of its mars lander as it pushes for inclusion in global space projects it was conducted at a site outside of beijing china plans to launch to mars next year. Youre up to date. Thats the news update back to you. Thank you very much. Lets take a check on the markets. The dow is up be 12 points the s p 500, that index has been 13 points. Were unchanged. We have the nasdaq and the russell down time for todays power movers we begin with canopy growth. The company losing more money than expected an dispiappointing on revenue as well other marijuana stocks getting burned the chicken producers are rising u. S. Trade representative confirm that china will lift its ban on u. S. Poultry. It estimates that could be worth a billion tldollars in sales per year Elizabeth Warren is out with a new campaign ad running right here on cnbc the ad targets billionaires. It is time for a wealth tax in america ive heard there are some billionaires who dont support this plan. The vilification of billionaires makes no sense to me its bull. Its warrens latest shot at her war of words with leon cooperman. He joined Halftime Report earlier today. He respopnded by highlighting hs film he did double down on his prediction the market would drop more than 25 if warren head to the oval office and said if this lady wins, were in big trouble. Welcome to the show. Bryan schwartz she went after four different billionaires thats right. Its the latest salvo. This is going to be war. Some of them on wall street, some of them not it seems every time she puts out an ad, a tweet, many of them feel like they have to respond there are others on wall street who are trying to say the these guys, dont go there because youre playing right into her hands. Clearly theyre not they will keep responding in kiebnd as we talk today you think the ad is effective. She has come out and said business should not be afraid of a warren prez den sidency. Do you believe that . I dont i think its effective as a Political Tool on the substance i think its deceptive and disingenious. This really energizes the base. Where does the disingenious comes . I dont think she tells what it means to pay your fair share. I would argue shes not presenting the facts that they are. Her 2017 income, the top 1 accounted for about 19 of all income they paid over 35 , i believe, of all income taxes if you expand that out to the top 5 , they account for about 35 of income and they pay almost three fifths of all income taxes when you look at the data and professor warren is a Harvard Law School professor that believes in data it says the rich are doing more than paying their fair share its not just income its not real estate taxes thats only at federal level its not what they are paying on their Real Estate Holdings at the state and local level. She is being disingenious about certain portions of the population paying their fair share. She never defines what the fair share is its how this episode tieing together the idea that all politics in this country are very tribal. They are very us versus them it can be the deplorables versus the elite and this time its the billionaires very issues the people Elizabeth Warren is trying to win a primary. Were not at the point, at least from her perspective to win a general election she wants to get to that base voter. She thinks this is working for her right now. On the one hand they are probably concerned if she became president but theres the other piece of this which is other administration s have been business friendly look at President Trump. Even look at president obama they may not be happy. If she does win the primary and becomes the democratic nominee, does she pivot. Does she become more moderate . Thats a tough one for her. One of the attractive qualities of her is she comes off as authentic. Once you impressipivot, you los authenticity at a practical matter, she needs to pivot back to the center. She has to want to attract to suburban voters who are turned off and africanamerican voters. I think she has her work cut out for her. Doubling down on this message in the short term its fine longer term she could regret it. Shes coming out with ads against billionaires its difficult for her shes made it so clear not hedging anything she has been very, very clear as to what she wants to be as a candidate and the next president could go onto be president who knows. This debate leon cooperman inspiring new merchandise to the Warren Campaign her newest addition, a billionaire tears mug it favors a warm salty beverage. That was one of the fastest selling items that they had coming off of their website since last night 25 for a mug fastest selling item since they started the campaign. This really played into her hands opinion i thi hands. They would have been better off served not taking the bait shes strolli introlling them as highly effective he was crying over the divisiveness of politics in this country. Both bryan, our appreciation to you. To the bond market we go and rick skrchecking the action. Its been soft in terms of Interest Rates the last several days you look at today you can see its been sliding off session. If you look at the three day chart, we have been three days straight we have gone from the low 20s into the 30. When you think about the movement and the context of where it started, its aggressive if you put a july 1st chart together with boon yields and u. S. 10, you could see the patterns are identical and we seem to have run out of gas. Some of the issues have plagued the german car industry. Some of the numbers coming out from japan its apparent that many are looking for them to continue to melt away and finally the dollar index which really recouped a lot of its negative october stocks seems to have lost its mojo as it slowly moves lower. You can see how it was moving nice sideways. Back to you. Thank you. Wework multibillion dollar rescue package from softbank might not be enough to save the company. One expert says theres nothing left to save woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. I wouldnt be here if i thought reverse mortgages, took advantage of any american senior, or worse, that it was some way to take your home. Learn how homeowners are strategically using a reverse Mortgage Loan to cover expenses, pay for healthcare, preserve your portfolio and so much more. A reverse Mortgage Loan isnt some kind of trick to take your home. Its a loan, like any other. Big difference is how you pay it back. Find out how reverse mortgages really work with aags free, noobligation reverse mortgage guide. With a reverse mortgage, you can pay whatever you can, when it works for you, or, you can wait, and pay it off in one lump sum when you leave your home. Discover the option thats best for you. Call today and find out more. Im proud to be a part of aag, i trust em, i think you can too. In developing countries like the United States our smartphones warn us up looming storms, bitter cold or seering heat billions lack basic forecasts making the world a much more chaotic and dangerous place. In a historic marriage of big data and computer, ibm is launching graph today. It will provide accurate Weather Forecast not for a few places around the world but for the entire world what youre hearing is the sound as the ibm super computer that runs the new Global Weather model. Its named after an ancient god that ruled the sky it consists of nine cabinets and has 84 nods in it. The super computer is so fast, this massive model provides new forecasts every hour instead of every six hours. Were getting down to kind of the Cellular Level of the thunderstorms now where we werent able to do that before with that information we can now provide better support through criminal Decision Makers its big potential business because Big Companies increasingly need accurate weather data any business that doesnt have a weather strategy is missing out on returns be able to predict the weather in advance for retailers, energy company, government transportation businesses is all we do. Reporter Better InternationalWeather Forecast can mean more comfortable flights for passengers who are routed around turbulence and even shorter flights if we can do a more fuel efficient flight we can save money on fuel. Theres a variety of ways that operating on time and efficient manner improves the American Bottom line. No matter how good the tech and weather model has to prove i itself, americans will wait several months ibm plan continues to upgrades the model. It can take in realtime weather data from airports and smart phones because one of the reasons why there is good International Weather data is because theres not good data from the weather its weird and out of the way locations. Once they get that in there the model will improve over time for a lot of people they dont know if it will rain in 12 hours. Have you seen that video of venice with the flooding now its more essential now. They were talking about a flight going over the amazon. They are not sure where the weather disturbance will be. They route the planes all the way around it to make sure it doesnt get close to it. Maybe even being able the shave an hour off a flight thats big money. Some of it will be held publicly it will go on your weather app all right thank you very much. Pleasure. You have a future as a meteorologist. Low pressure system coming in on top of all the other problems, wework employees are facing, the big boss may swing by the office for a visit. The information reporting that ceo is expected to meet with top wework executives right here in the Company San Francisco offices. Thats where we are. We have some key numbers out as t ll nolooking good for the reality company. Well have more on that after the break. Only one things more exciting than getting a lexus. Wow giving one. How did you guys. . Dont ask. The lexus december to rembember sales event get 0 percent apr for 60 months on all 2019 models. Experience amazing at your lexus dealer. Sometimes, they just drop in. Obvious. 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. A more secure diaper closure. There were babies involved. And they werent saying much. Thats what we do at 3m, we listen to people, even those who dont have a voice. We are people helping people. The problems are mounting for wework the company lost 1. 3 million in the latest quarter more layoffs could be coming reporter wework updating investors in a call yesterday disclosing 1. 3 billion in losses in the Third Quarter alone. Thats more than double the total from this time last year around 500 million in 2019 so far theyve seen about 2. 1 billion worth of losses also reporting negative gross profit margin. One bright spot for wework, net new desks. Occupancy a key metric for wework is down 5 . Now averaging 79 there south bank owning around 80 of the company is working on a turn around plan. They are divesting some of those noncore assets among other things looking for a new ceo after Adam Neumanns exit on that list, john legere is on that list. Information reporting today that softbank, masa son is expected to come here to talk about layoffs. There could be as many as thousands of layoff for wework employees and talking about the companys financials and the plan Going Forward thank you very much so softbank went all in with its rescuepackage is there anything to say our next guest doesnt the think so here to explain is eric gordon, professor the university of Michigan School of business. Nice to see you again, sir great to have you with us. You know, people can go in and save turn around companies that have Good Business models but your u is that this one doesnt and basically cant be saved yeah. You know, if you own wework, if they delivered wework to your office in a box and you opened the box, what do you see inside . You see over 30 billion in obligations, lease obligations hanging over your head what are the asset the assets are these leases. They are actually obligations. You know the premise we have this Business Model that we will grow out of the losses kate was talking about into profits, doesnt seem it just seems to be words things are actually getting worse. So even if you use weworks own favorite metric, wework says wait a minute only look at offices that are mature. Over two years old occupancy at those offices went down 87 versus 90 wework came up with a custommade metric they cooked this up themselves they call it location contribution margin. They use that in their Registration Statement they said Pay Attention to that. That method, their own favorite metric fell 25 . There is no Business Model here. They say they are is going to rent space for im sorry. Go ahead and finish your thought and then ill jump in. The Business Model is we rent space station for 45 asquarefoot. Well relet it for 1 a square foot that doesnt make much sense sort of the sucker Born Every Minute theory. They have leases on the space, but are they able to fill those leases with customers . Thats where the rubber meets the road they may couldnt them as an asset but more an obligation will john legere be crazy to take this job . I think he would be crazy because, you know, hes going to need a job if the sprint tmobile thing merges but there are a lot of jobs he could feel at companies with more upside thats a good fit for his aggressive personality this is one that could change his reputation for the guy who took tmobile not an also ran to really the dominant partner buying spring this could change his reputation i doesnt need to jump at this one. I think its a little Wishful Thinking these rumors that are being floated. Professor gordon, always good to see you, sir. My pleasure check please is next. Check please go walmart ill do it quickly walmart hit a 52 week high in today session but now going close to session loss. Thats not a good sign for this stock which has had quite a run going into earnings. Its been on fire really has been. I dont know about you but ive been watching our favorite billionaires basketball team. Houston rockets play the l. A. Clippers one thing that was funny was the son here Austin Rivers calling for a technical foul on his father the opposing coach doc rivers of the clippers the real thing that tickled me was what youre going see in just a minute. He gets ticked out of the game what really tickled me was who said billionaires are not fun. Look at steve balmer he gets passionate about basketball billion injuries having fun with their toys high energybalmer thanks for watching power lunch closing bell right now. Good afternoon. Welcome to the closing bell. Im wilfred frost. Walmart that stock hit a fresh high earlier in the session but it slipped now down a fuel percent. Broader market they are essentially flat with 59 minutes left to trade. Of course hovering around their own fresh record highs im morgan brennan. Lets look at whats driving the action trade concerns remain in focus Chinas Ministry of commerce said both countries are Still Holding in depth discussions new data showed the biggest rise in Producer Prices in six months and a mixed bag fo