2020 the Investment Committee is ready to go. Halftime report starts right now. Welcome good to have you with us our Investment Committee with us today. Jim, the brothers, megan and cnbcs jim cramer. He, the host of mad money. Stocks up for the first time in four days. Trade headlines again the stories, still the worst week for the dow in four months investors getting whip saw ed b the deal no deal drama jim, just call me when a deal and im done okay i cant deal with this day in, day out. Theres a deal, theres no deal. May not wait, may not have one before the election. Were close, were not close i was a judge on the apprentice for many years. There are always two sides i have to tell you, many time, sworn about what happened in the actual room, but we wanted these guys to be pitted against each other. The ratings wouldnt go down if it was just resolve like this. We had to kind of have an eliminati elimination. You got kudlow schwartzm schwartzman, navarro perhaps. So what happens is this has become a saga. In the meantime, the chinese keep change iing the goal posts that was a Kudlow Mnuchin deal then the navarro side was the same way as soon as you may your hand like that, theyre going to backtrack and sure, they did they said listen, we dont want december 15 stay, we want roll back they wanted to buy the pork on the cheap. They need it they need the pork so what do they do when they tell the president , hey, were not spending 50 billion on the pork. How about 40 billion the president says wait a second, you need this stuff. Its not like soy. Makes my point in a way as well its like okay, were talking about which wing of the trade negotiation is winning we should be talk iing about december being the best month of the year stocks are traditionally up about 3 we came in with a ton of momentum and here we are talking about the sausage making process of the trade talks can we get through past this stuff and have a rally were going to talk about what stocks are value versus, should not be at 100 parker should be at 100. United technologies, hold to sell the stocks that are doing great with a china stocks, maybe we should put this whole china thing in a box stop talking a about it and Start Talking about companies that are doing well. Thank you but you did say we did get too complacent well, we did in the sales forces and in the workdays the stocks that we just decided they dont have earnings, but theyve got revs were fine thats not what this market wants right now. It wants dividends because rates came down. It wants buyback it doesnt want no dividend. The complacency on the highest multiple, good job crowd strike z scaler these are companies i own all the time because i want to introduce people i want people to know. But now what they are, stocks that go lower. The numbers are horrible its awful buy back stock, dividend what is the Railroad Union pacific. And the meantime, z scale, crowd strike, doesnt matter good because if chinas hacking, you hire them. So pete, couple of down days to start the month you now weve got a big up day slooes at this moment. Up 200 on the dow. Whats in store as we said at top . Calling it the final days of the decade whats going to happen with your money . Sfwl were going to trade off everything President Trump says about the trade war. Thats just something. A given. But to jims point, what hes pointing out is people are going for quality. These are the names that are moving to the upside when were going to the downside, theres still quality names being bought yesterday, the one thing i think got in this sell off, were down 400 points, pharmaceutical names were trading well. Bio tech was trailing well you know what im talking about. So yes, there are quality names though out there, scott. Those are the names youre going after. If theyre getting hit on the down days, those are the best opportunities out there. Youre looking for the names that have dividend yield theyre buying back stock and oh, by the way, theyre quality names where theyre e showing you where their growth is and theyre not complaining about the trade war. Theyre embracing what they have to do to make themselves bet rer. Can i have people look at that right now aller began gwan and very inexpensive so at this point, ill make this point, the value trade we were looking at after labor day got really hot backed off in mid november backed off at the exact moment that china said we want tariffs rolled back and truch said, nope, not going to do it i see that starting to gain speed as roll backs are back on the b table and maybe we get this phase one, but i got to be clear. Im a value guy. I own some apple, google, thats fine youre doubting whether values got the momentum to carry itself into next year . Without phase one, it doesnt work really . Just doesnt work a stock that you and i are on opposite sides of is caterpil r caterpillar. As you look at it as you b probably have, i dont want to own it flipped it at 140 they missed the quarter so badly. The ceo was like hey, i did badly. The streets, hey, i did well the stocks up b about 20 in three months not on fundamentals. On the basis of a phase one deal gets done. Maybe we get the belt and cooking. Maybe germany starts priming to pump with fiscal stimulus. Why its up. So if you look at that as a classic value play right now and you dont get phase one, caterpillar goes from 141 back to 119 not going to disagree, but i would tell you r there are others that seem to be impervious to this thing honeywell. Just, its a winner. No matter what day i find that you dont have to, and we dont have to overthink this missed this quarter, missed the quarter. What does it do each time . Goes higher. Well thats, i mean a little counterintuitive its because wepg were getting phase one. Not really a lot of china i had ppg yesterday. Michael. They had an unbelievable quarter. Why . China. Making a lot of cars and also cans. People dont like plastic anymore. I know you like plastic. Forget it. Forget it. Megan you were right in the middle of that conversation. Where are you . Well, i think youre going to have a tough u stock stomach with the trade back and forth. I think were going to continue to have some back and forth. I think there was perhaps a little bit of a consensus that a deals going to get done it has to get done the Trump Administration dont want that to be the narrative. They want to have some negotiating room so i think what weve heard in the past couple of days is some posturing. Our base case is still that we get a phase one deal more importantly, is what happens with not necessarily the stub stan sub tans stance of the deal, but the tariffs. So the idea that you gt a lot of your gains from multiple expansion because earnings were jouyou know next to no, that earnings better come back in 2020 to carry the market higher because its gone as far as it can go on multiple expansion you buy that argument, this side of the table if you buy a bit of a recovery happening you know, you better think that things are going to recover you better get some level of growth if you think you can get earnings growth. Oh, i like that brexit. If youre looking, i mean look at where the british pound has gone, scott, as the brexit talks continue forward and as the conservative Party Continues to gain strength which is favoring Boris Johnson and his policy so when you look at that and the british pound moving up versus the dollar, thats showing you that there could be some recovery out of for instance, the United Kingdom it could be out of germany and the rest of europe thats a very strong thing for the companies that have 50, 60, 70 of their sales overseas. So to jims point, when you see workday and z scale and ill slow slack in, which is going to have earnings tonight, these are all stocks with revenue, but not profits. I think theres an awful u lot of them like microsoft, like facebook, like apple like a lot of these stocks that have both revenue and pretty substantial bottom line profits. And we have to love them. We cant throw them away and their numbers are going to be up. Did anyone look at the trends they had this morning . The most important thing r what are they in 5g data sisters. Electric vehicles. Ai machine learning. Micro chip ive got people selling some of the chips if not the smh because its had a great year . Who are they . Are they disciples of Nathan Johnson . Maybe an art. You think the chips are still a good place to be yeah. Theyre not even that eck pxpene they raised numbers. Collect grass. Look, ive got to tell you, when i see companies preannouncing higher than expected numbers, i get positive i know Union Pacific bad numbers they get positive, too, but the semiconductors, but Texas Instruments isnt as expensive and the banks. So jpmorgan. Micron. Micron is too cheap im seeing unusual option activity in my brain on micron thats a dangerous place b b to be its a great place to be. Just mention the financials cheap up to six months ago, there was an 18 month period that every time we talked about the financials, like everybodys faces turned green because awful. So we want to go to where the puck is going. Going to use that phrase where do we think were going to be saying the same thing six months from now . Energy no. He did yesterday. Im the guy who was on slumber jay is moving up are you going to give me an aram ko thing to heck with that if you like apache, im leaving. He likes marathon why do we have to make this hrd. Bigger picture here numbers are going up. Fine. Why not play it easy with the chevron, roifl dutch got these great dividend yields. Because it sucks. Im allowed to say that. The same thing b about citigroup, wells fargo, all the financials, up until six months ago a. Im putting a stake in the ground those are fossil feels and a youpg man, they think fossil fuels, theyd rather im sure youve read the articles pointing out the amount of fossil fuels that have to go into batteries yes, eventually, there will be a pay c payoff, but right now, theres demand for fossil fuels to build the Renewable Energy sources yesterday, scott and i were talk iing about unusual activity scotts over there and he goes wow, you got two of these things bp sold today. And marathon. Its gone from 46. Its run up and now up through 60. Been higher. But been bouncing around in between call at 58 and 62. I agree. Bp wasnt performing maybe thats the catch up snok now at this point in time because when you u look at energy, yesterday, about 50 of the unusual option activity we had was somewhere in energy. Multiple big names, some of the names that kicked around, but also some of the big names like a bp, royal dutch u, some names that dont get talked about often. We always talk about chevron, exxon. Those are names rarely talked about on tv. Energy right now, we are seeing more and more that flow back into the energy space. And i would like to combine something john said earlier and something jim said about where the pockets going so john was talking about those companies that get a lot of revenue overseas i would take that one step further saying were seeing opportunity outside of the u. S. In international equities, so anytime you get signs of a bottoming of growth which i would say were getting some mixed data, but i think bottoming is a process so thats okay we expect a recovery in 2020 and so the higher cyclicality of international equities, the more export dependent, points to better opportunities, specifically in internationals were seaing that value is going to outperform or is going to at least i didnt say that i thought it was clear if you get phase one, if you dont r, were dead in the water. No. Were not dead in the water. A lot of companies doing great talking about value ooip talking about everything you just made the case for energy i did, but the whole time and for months, ive predicated this on phase one getting done. Theres nothing new in what im saying caterpillar trading with zero eps growth trades at ten times earnings ugly yeah, i dont know that we would say we expect value to strongly outperform, but i would say be careful betting against value. Its been the right move ft. Past few years but to have value work, you need things like a steeper yield curve. Positive growth surprises. And so i think we could see that to a degree, but i wouldnt be you know, were not expecting a massive steepening of the yield curve that generally helps value. The other strategy, buybacks, dividends. So ubs has 20 plus buy rated stocks with attractive dividend characteri characterics, they say citigroup. 2. 5 yield own it. Lily. Molson coors darden, Restaurant Brands. Young brands monday lease dupont comcast. Parent Company Every one of those expect huge buying on that one yesterday. Comcast really. We can say it now unusual. Look, i think that ef one of those stocks is terrific citi, i was debating china has done nothing 10 of the company back. Its incredibly inexpensive. Then the stock goes higher what are you going to do downgraded a wells fargo. Was a piece of research. You know whos downgrading it . Tell me that how much has wells gone up since sharf was named ceo . Yeah but hes going to do a House Cleaning hes mr. Technology. Hes a grim reaper kind of fellow now in business, hes vicious. I think sharfs going to go in there with sake l. N sickle. Going to take time to fix no. I think easily, you get phase one done by the way, phase one is the dumbest deal why were even having a negotiate about this phase one is steve schwar schwartzman opening banks to china. You think djgs by the way, jimny, not sure that gets done i think all of it gets done if we sell them some agriculture products and walk back some restrictions on huawei if we get tariffs, great, but really the meat of the trade negotiations is going to be the next phase is when ever they come we be wasting time as a country, as a globe, on this phase one. We should get it done. Get the yield curve steepened. Maybe i should just wait until the end of 2020. Why not . Some of these candidates are saying that because of coal, theyre going to shut down china. I think that xi, everyone thinks xi is a genius mainstream immediate yarks loves xi 100 Million People in concentration camps, we love xi. Xis major miscalculation, because if hes looked at the democrats, first of all, do you need 67 guys to find a guy guilty because in 2020 and you get warren, i know she peaked. They hate coal so much that they will hate xi more than trump i want you to, i dont want you to say phase one u for the rest of the time youre war barred from phase one. Yeah. We overdid it on phase one. Would you rather talk about eli manning or phase one. Were on phrase three, my dividend stocks. Eli lilly. Manning ill give you a quick answer because i know you want to get focus back id rather be in merck pfizer eli lily is fine, but i think the pipelines in some of whats going on at the highend of the management of those two, theyre going to deliver disney is another name great dividend, buy back the stock. I could go through the list of the stocks i own, scott, when im looking at them. Pepsi, coke. Theyre eququality names that g you a dividend yield that are buying back stock. Thats why i own those and on down days like yesterday when you get a bit of a volatility, the its a better chance that i might buy a stock but otherwise with this low volatility, ive been more of using that because the calls are cheaper. Because its calmed down. Merck, 17 times earnings. Phenomenal. 17 times. For merck . What are we crazy . The biggest drug ever. Scott , ive got a high dividend payer for unusual activity might be somewhere in the Jpmorgan Health care conference and i think you guys are going to like that no, no, dont guess of these restaurant stock, darden, young, Restaurant Brands younghurt the most by the willynilly activity in delivery Restaurant Management is a good quarter but i think darden is due to a bounce. I got one killer killer froms i like the stock i like quick serve but my favorite is wendys its going to be amazing ive had a preview scott, ive got a twofer for you. One stock but two sides. Shopi fy oh my god, i love shopify take a look at this after black friday, people said maybe 900 million. Now a couple days later, theyve upped that target but a billion five on that e Commerce Cloud based platform for these relatively small merchants the real big guys are going it elsewhere, but for the rest of them, this is a huge tell as far as Consumer Spending and as far as technology because this is the cloud. And thats how theyre getting it done through e commerce and the cloud. Everybody wants to buy that company. I talked to two. They want it but u theyre a rigorous Canadian Company that doesnt want to be taken over by an american pirate. But there are more than, at least two companies in Silicon Valley who want to buy both bigger than 70 billion yeah but they dont want to sell because they represent empowerment. Empowerment. If those are the two, they think i would have to start looking for market. Im in there. Okay. Im trying to get, to guess what you would give me coming out. Coming up over there i think its going to be bristol myers. Why not . The stocks about to fly without name iing the names, this sounds like news to me. Shopify has been approached by these companies. Theyve said on air to me, listen, were not for sale everybody wants to buy us. If you have a Small Business the stocks rise ong this reporting. The numbers are great its rising on news of a possible down the road sometime. Its 42, 43 billion today its huge. Well keep our eye on it based on jims reporting just got back from Silicon Valley all week. Zwl let. Let me do this. What . I want to get to apple before we take a quick break. The gentlemen who said it was no dogood maintain sell. At maxim one of only, hes not the only seller i know. Six sellings on the street. So its a tiny minority. Reiterated sell, 190 price target stocks had an incredible year right . If theyre put on the unreliables list, i think i have to tell tonight sh, i think they got a toy call ed the unreliables. Honestly, the chinese, if they decide to do something that you would gone to apple, then apple gets hit and the guy would be right over did you ever read the gambler . This guy is playing double zero. Maybe he gets lucky. Double zero does not come up often. Good analysis the china thing, theyd be shooting themselves in the foot if they weaponized apple they know that so many things going right for apple. New iphones are selling. Supply chain is reporting in theyre getting a lot of orders. Air pods are fan ttastic services are going i cant get them. I do not. Theres four in new york that they claim they have and by the way, the momentum in this stock, this stock just does not quit. I mean yes, off b about 3 from a high that seems to be setting week after week. I just dont know how you shoot against it here. Cant even use the valuation its not even that ridiculous. Plus the cash and theyre buying back stock. Doing all the right things financially, scott, but also the fact that this guy is still focused so closely on the phones, right now supply chains are indicating Something Different than this particular analyst is talking about, but even so, scott, the fact they went under 50 on that being the revenue source, that to me is huge because the stock is still going higher why . Because the Analyst Community finally decided hey, services are growing rapidly. Its a big portion of what theyre doing. Adding the wearables and youre at a decent percentage of whats coming in. Youve still got the phone. But the phone is going to, that is going to deaccelerate its the razor. This is doll already shave club. I got them to break out the service revenue. Now on every call i do with josh lipton, i say the same thing luca, give me the of a guy who wants. 99 customer satisfaction. Jim, were working on it they give you that number with apple plus, with cloud how Many Services do you pay coming out at 2 30 a. M you just paid r for this the lifetime value of person who buys an apple phone is maybe the greatest subscription in the world. Just stop right there that was just dramatic and its all good sh hr shh. A little like the irishman. They were 40 years too old jimmy hoffa, if he lived that long, hed have a great run. The analyst who made that call is going to be on squawk tomorrow morning the maxim man. Right there. Hell be right tonight. Good luck to you all right coming up u on the half. Hitting the bulls eye. Target up 90 this year. And its just been named best idea for 2020. Some of our experts own it the debate is straight ahead in call of the day. Plus, jim cramer and the Investment Committee are ready to answer your questions to reach us, go to cnbc. Com halftime or tweet us using the hashtag, ask halftime. The Halftime Report is back in two minutes. Welcome back im sue herera heres your cnbc news update nato chief says theres always been disagreements within nato saying there are 29 Different Countries from both sides of the atlantic with different hsryes and geography, but he said in the end, they all stand together disagreements will always attract more attention than when we agree thats in how our open freedom societies work do dont complain about that thats just a fact and second, there has been disagreepts in nato as long as this alliance has existed. Netanyahu departing israel for a meeting with mike pompeo in portugal. He says he will bring up iran and a u. S. Israeli defense treaty with the secretary of state, this as he fights for his political survival the vatican announcing that pope francis has accepted the resignation of buffalos bishop, malone he ignored repeated calls to step down over the past two years amid criticism of how he handled allegations of clergy abuse. Back to you. Appreciate it thank you. Target is on a tear up nearly 90 since january says the rally will continue into the new year. Named target the best idea r for 2020 profitable r, innovative also on cramers watch list. Yeah. Weve made it our call of the day. I suggest ed the oh day that in the conversation of ceos of f the year, that youve got to put cornell in the conversation just r for what theyve been able to do i love oliver chen how did this hes been in, the only thing i left out, he left out is how many people can manage five different r formats . Thats how much he does. I went to the inner city most beautiful store here. First floor, hes got the starbucks and cvs. Second floor, housewares top floor, uniforms for the area built soccer fields when he puts up new stores. I said list belisten, i shook hl you Start Talking about yourself as being a great guy doesnt have to pees hes got pete to do that. Oh, yeah. No, i love the guy. Hes done an amazing job b since he took over transformation he made at target he went to digital he was in front of everybody else he learned. When he bought shipt, it was a 550 million purchase. Hes doing it sufficiently, smart. Hes got a lot of private labels and you know what wrou did not hear on his call and its the most important thing about the last earnings cycle weve had. He didnt mention tariffs. It never came up however many hour, he didnt go well, it would have been a little better if the tariffs, bla, bla, bla. Let me ask what i think is a fair question among the accolades you think he deserve, should get stocks up 80 . The stores are beautiful. What happens if the stock slips . Walmart, when you look at the p, e, its much higher costco, much higher. This is still a very inexpensive stock. We get the adp number. I lookeded at profits. Oliver does some of the most quality oriented work. The best in the business youll meet him. I was waiting for my wife for our anniversary. Birthday, whatever at bernadette and hes there work lisa into every story. Why not ill work her in later listen, maybe things arent so god at home. This is my chance. Just kidding been there okay so no. I mean so i see him at bernadette i got a guy. We all love the guy there. He goes hey, jim, real, real hi, oliver goes to 80 hows cowen. How about target he is more of a stock junkie than any of us all i wanted him to do was so how are you. Jims talk ed about the store presence its store of the investment that target made over multiple years when the stock didnt really do much during those years. But the investment in the brands, delivery their footprint is extremely helpful in making that very profitable for him just one quick one that pete has hit on a lot that is they dont waste a lot of floor space on groceries. They put just enough there now theyre going to expand a little so on the way home when youre picking up stuff. Exactly you need the milk, the tide, whatever it is, theyre going to have that for you, but theyre not wasting nearly as much Square Footage as some of the other folks who want to get you to come in and do the curb side pick up or any of that stuff thats a problem for some of those big retailers. A move that target has not made. In the wrong space how about inner city . Everybody says you cant when you get people who work hard in this country, they are, they would like to have their own store, but these big chains, hes bringing back b neighborhoods. This guy is incredible hes from whitestone he doesnt have an ounce of bragging thats why i have to stand up for him. Hes a bruin wears too mawhite shirts target color. We got it now good one. We got it what have we got . On cornell. Tell you that. I think Everybody Knows where you stand. Why dont you have best buy, i know it doesnt ring with the watch list, but home depot, best buy . Problematic i know the company wasnt happy that i said the stock did not perform as well given the fact it did have better numbers than lows when a stock goes from 230 to 217, i dont think like that as much call me odd. Now look, home depot did not do badly. And i think the stock supply here, but there was a lot of fluff they were going to blow off the numbers. They didnt. They had a problem, execution problem. I dont want to hear that and carol was not on that call shes retireded. So no one instead, i had someone using the saw. Stanley black and decker are up. Lets do this take a quick break why we have to. Oh, give me a break trust me. How much in tech take a break . How much did it cost, Norfolk Southern up 2. 5. The rest of us need to gather offic ourselves. Airline, health care, jon and pete, unusual activity is up next s p sectors though were back after this. Is the monolithic view of emerging markets obsolete . At pgim, we see alpha in the trends 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. When i lost my sight, my biggest fear was losing my independence. 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. Zblncht sha. Shares of o Tech Resources have lost roughly a third. Jon and pete have that unusual activity and more. Doc, you go first. All right stocks 15. 63 right now and theyre buying upside calls. Looking for more even though its moves 4. today take a look at what theyre buying theyre buying aggressively upside calls tat 15 a clnt 50 strike so weve moved through that level today and theyre still buying these calls. Im in them. Probably be in them all the way through december expiration. Second one, real quick, i prommed this guy, jim krcramer, 3. 8 dividend. Theyre going to have the Jpmorgan Health care conference. We love them. We love them we love. I wish nestles had a health thing. When is that conference the 14th of january theyre buying january calls im glad you let me into that, scott. Thank you. Give me a phone book, will you . They bought a ton of these calls. I am in these and i will be through that Jpmorgan Health care conference. I asked that question because youre betting on news coming out of the conference. Yep also got another issue, i think just a week or so from now, scott. A Capital Markets conference, but the big one, the granddaddy is the health care conference. The first one every year and its a big one this ones going to be fabulous thats going to be great, too. Yep going b to be great, too the risk is you u better get the news out of either conference to make that move continue by in january 48 calls. Not that far out of the money as you saw stocks 46. Buy smile direct club might be. Didnt see anything in there im going to jump in real quick. Jet blue, we talk about a lot of different stocks in the airline world. Oftentimes, this one gets pushed back its moving to the upside today and theyre coming after the d 20 calls up here, nice size very inexpensive when they started boying these today, they were approximately 20 cents so theyve probably risen a little bit but theyre playing on a breakout. Im in these calls this ones call, i like what were seeing there buffett kind of likes this can you go back to the chart, jet blue david faber taught me this says this is a are verse head and shoulders. Hes good i got one more. Nuance, real quick this has hit twice on two different occasions, theyve been buying in the stock its pretty interesting to see when you see it twice in the same day the bigger of the two was the april 18 calls paying about a doll already 15 about 2500, somewhere in there i like it because its always been a carl icahn favorite maybe some day he looks at it more than it is. Ill be pulling these for a while now because ive got multiu principle months to be able to hold on. I got a couple of updates. These didnt work out. Foot locker. This one unfortunately hasnt worked out then the guy on negative down boat but you know the nice part about this is i had options in there. 95 cents the next day, give or take on this huge drop, work out, so trade iing at a nickel. Im not going to sell this why im going to sell a nickel, you never sell a nickel option maybe something good happens probably not theyre out to january i got one more cap capri. Week in the holiday week on monday, we had huge call buy you better do something right because the apple watch is killing them youre right but theyve got a will the of other different ones they do i happen to like the guy i mean hes not hes good but they have missed quarter, missed quarter, misseded quarter. So maybe this is the one that he doesnt. It was 50 cents they went up over a doll r lar expired last friday, but a big run in just two days any possibility on the tariffs . Mibght be a tariff. Good call come on back over on our way. Thats joe. Looks good over there. How you feeling. China democracy versus the totalitarian u. S. Government i read that. Zero body fat between these guys im sitting here just feeling bad about myself thank you thats not true thank you very much zero body fat row hair, too take a commercial going to go crazy. Sorry, scott. Okay. Joe, why dont you just dgo ahed and tease while youre there i might as well thanks realtor. Com in its realtor, not realtor. That sounds like nuclear remember the guy who used to say that out with its 20 forecast and its not looking great the economist behind the report joins us with how bad it could get. Plus googles ceo now in charge of the bir company why one of our guests says he just got the worst job in Silicon Valley and is the answer to winning the shipping wars, what is it . Thats ahead when rapid fire ill see you then. Halftime report back right aer th isft change healthcare is the leading independent Healthcare Technology company that provides data and Analytics Driven Solutions and services. Change healthcare is thrilled to be joining the nasdaq family. Every day we are working on behalf of those who expect more from the Healthcare System. Our customers and partners push us, inspire us, and make us better. Together, we make the Healthcare System better for all. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Shares of expedia are rallying today following a massive shake up the companys ceo resigning after clashing with the board. Expedia saying the chairman will manage daytoday operations while the board focuses on longterm leadership brad gesh ner is an investor in expedia. Gave me this statement ill read it to you. Jim, id like your reaction. Im in the john malone camp that this is a franchise that has misexecuted and underearned. It seems the board is taking this seriously but the litmus test will be the plan they deliver in 2020. I see no reason this business cant earn in 2020 and continue to grow earnings at double digits for years to come so okay. Sounds like. I mean, he wants to see results. I think hes right. The google algorithm changed so then they decided to screw their own clients by raising the rates for everybody. And for all the little ins and stuff, i was a victim of that myself i was shocked. I mean, they really have mistreated everybody they need these new guys in. Theres a good move by diller. Good move. No one else is in the name, right . No one else is in the name okay by the way, brad gesh nevers going to join me next week were going out west going to San Francisco we got some good guests. Cant wait. Great city. When you go out there, you always do. I cant wait. Well leave some surprises for you. But were going to do a lot out there. Were going to go on to l. A. And well talk to jeffrey gunlock for our end of year conversation on the markets lets talk about this. After founding google, larry paige bowing out stocks up 50 since going public in 2004. What does that shakeup mean for investors . Jim . I dont know. I googled sex discrimination in google and i came up with way too much and theres theres an investigation, the top level, they cant be bought maybe they needed a little cleanup at the top. I think hes exactly right, scott. And this is one of the best ways to do it and, you know, i think basically do as i say, not as i do that has been a problem at google for a while. Sure has. And now, theyre going to address it i think the new person in charge is going to address that so look for some significant changes. You mean the new person in charge yeah. I think youre going to see them clean house over there not with the engineers and so forth that are critical to their success. But a lot of the folks up at the higher level that are part of those reports jim just held up i think a lot of those people will be gone and this gives them more free reign to do that. What does it mean for the stock . Its a buy. Is it a buy yeah. Look, they have a lot of disenchanted employees they have thousands of women protesting i mean, this thing is terrible. Because theyre marching against their own company because of some of the abuses by the execs. So i think having them, many of those execs might take early retirements or just decide to leave. Go do Something Else i think the people that replace them will make this a much Better Company going forward. Dont you think its interesting november 6th, there was a story in the times. The board formed a special Litigation Committee of independent records. Its too that story is very close to when these two gentlemen decided to hang up their hat. Yeah. I dont think its a coincidence. And its not talked about enough maybe because people are fearful. I dont know i think its a good move. Okay. Well take a quick break well come back. Well do fin tdealras. Um houston, weve had a problem its human nature to hate problems. But why is that . Problems inspire us to rewrite the rule books. The history books and future books. Thats why so many people work with ibm on everything from city traffic to ocean plastic. From flight delays to food safety. Problems even got us to the moon and back on one tank of gas. And who knows where theyll take us next. Were looking at what you got tonight on mad tell us about it. Okay. Can spray skin for a burn. That burn actually graft actually so horrible this is very interesting hes turned around m at tattel. Then one might have Favorite Companies in the whole world, robin hood the company i think spawned a merger the Ameritrade Schwab merger and theyre going to announce some nobodies umbers on this sh. I cant wait. Good stuff. Lets do ask halftime we got questions coming in from gene in florida, any updates on Cleveland Cliffs . Good question so theyre buying ak steel look, i think bhas going on here first, you got to understand the story behind Cleveland Cliffs. The ceo. This is as dynamic a business youre ever going to find. He tried to give Share Holders an extra dividend back in september. The market for the stock went down 15 he said to heck with it. Im not returning share holder capital anymore if thats how youre going to treat me i got to be honest i dont generally by steel companies. Gutsy aks bad. He can handle it. Did you see what he did with Cleveland Cliffs this thing was headed for the dustbin of history. I like the guy. Im not coming at you im just saying. No. No you know when im coming at you. Dont worry about it. Youll know okay jon from mitch in new york on slack. This is one of those, scott, thats its an awful lot like uber and lyft as far as its something that we many of us use every day or use an awful lot. But it doesnt make any money. They have revenue. But they dont make profit i would not buy it ahead of these earnings, scott. I still see downside to maybe 18 or 17 bucks. Wow. So id lay off and then you can pull the trigger thats 4 or 5 lower than where it is right now. Ceo stuart butterfields going to be on squawkbox tomorrow check that out tomorrow. Pete, for you from shay in new york, lucken coffee. Love the name i was lucky to get into this name i have no plans to get out of this name because i think theyre showing they can attack. Now, theyre going to have to show they can make money sooner or later because right now theyre still not making money but i think they will in the future. Did you just add to starbucks or buy it . Yeah. 83 Kevin Johnsons doing a fgreat job. Hes buying back stock hand over fist okay. We have a question for you from johnny in ohio what financial stocks are a buy right now. Its j. P. Morgan, which is still the best but mastercard announced 8 billion buyback yesterday. You have to have both fintech and just regular bank. Okay. Megan from new york. Home builders for 2020. Theyve had a good run. Theyre up about 15 this year but if you elongate that and look over a twoyear horizon, we think theres opportunity. Housing made a positive contribution to gdp for the first time in about six quarters so i think we still have further to run Mortgage Rates are a big help there. Okay. Final trade time jim cramer, youre up first. This morning, citi puts out a piece theyve got a sell on tesla. What are they doing . Theyre raising the price target stock seems im going to use a term never used before in tesla. Inexpensive on the out years how do you like that cramer on tesla pete im going to give you twitter. I see some buy inning there. Its been a great trading stock. I dont own it but i love trarding in this name. Last week, Canadian Pacific unusual call activity in there today. Woo the industrial sector so weve been seeing some positive data out of china still a little bit choppy but we like what were seeing there. Farmer jim. I told you roku was by the dip on monday. Im repeating it again today. The exchange starts now all right. Thanks, scott. Welcome to the exchange. Im joe kernen heres whats ahead. A dire outlook for housing 2020 its supposed to be recovering by now from one of the top real estate sites in the country, well speak about why lates this low, why theres a downturn plus, when yields were near 3 this year, one strategist went against the crowd and said this wont last 1 as a handle is here to stay well, he was right hell join us with his next prediction and canada gooses stock has been grounded this past year the ceo is going to tell us his plan to goose the stock