Traitered take their positions. Plus the best stock ideas for 2020 the Investment Committee is ready to go. Halftime report starts right now. Welcome. Good to have you with us on this tuesday. Our Investment Committee joe, stephanie, john, courtney, president of Capital Markets private wealth management. One of forbes top 100 advisers lets begin with that new milestone for stocks as s p sits within 2 of its best year since 1997 joe terranova, s p, nasdaq 100 new high russell 2,000, 52week high. Emerging markets, 52week high. Left our europe. Pretty good nikkei 25, 52week high. World is rallying. Risk back on. High bet, take exposure is what near term investors want from the market laggards are really rallying right now. I would argue when you look at the laggers, the ones that have limited Growth Opportunities and thats why it has not been a premium paid for them during the year, i want to look at the laggards from early in the year that began to recover early in the quarter. I think thats financial i think that is health care. I think theres nor sustainability going into 2020 in their performance im not sure these recent laggards, but lets focus on health care. Boeing obviously is a help on that why are we rallying . Because money, as bank of america says today, the bulls are alive, cash now is at lowest level since march 2013 this long awaited money is coming off the sidelines and going into equities. At luke capital were seeing the flow, not just in the u. S. Where weve seen rallies this year, we are seeing it globally. Were seeing tremendous buying in japan you talked about the nikkei being up were seeing tremendous buying in europe as well. You saw what happened, you talk about financials, joe, with deutsche bank, they came in and looked at the plan and said, hey, these guys are turning the ship properly. I think were seeing some Global Growth and thats what weve been looking to see here, this rally coming globally. Were seeing it across sectors and across the globe. Where is the money going, nike, back to the ipo in 1980, lows, alltime high back to the ipo in october of 1961 its going into marriott, its going into alphabet, its going to apple, allergan, amgen. What did i just say there you go take a shot. New highs. Money coming in a lot of diverse places in the market and sectors. Thats very healthy, very broadbased. Thats what you want to see. Cutting through a lot of unknowns in terms of trade and brexit and fed and the budget. Ive said before i think we are priced at this multiple at about 18 times we are pricing in a lot of good news however, i do think now we shift to growth and Global Growth, like kourtney was just talking about. You are seeing brother growth. Not great but improving. By the way, the data points today we got was very encouraging with regards to housing, Industrial Production i know Industrial Production was benefited from the gm coming back, but i do think youre seeing business cap ex within Industrial Production actually showing improvement. So thats encouraging. Thats a good point speaking of encouraging, sorry to jump in Fourth Quarter gdp a few weeks ago was expected to be pretty lousy. Now its tracking the average forecast at 1. 9 . So youre probably going to do 1. 92 in 4q but im more so looking 2020 im thinking ism globally have bottomed were going to see an acceleration in 2020 therefore youre going to see earnings i thought youd see better earnings by the Third Quarter of this year but in 2020 especially on comps. I think thats important have you to have Earnings Growth because weve had multiple expansion. I dont expect a lot of multiple expansion in 2020. Where am i going a couple of names you talked about. Im looking at i took profits in d. R. Horton today and actually putting it into home depot because its down 10 . Nvidia, ive never been involved in that name and i added it last week still down 20 from its high schwab, thats an opportunity because of m a im looking at pieces in the market that arent at alltime highs because thats where i see value. What are you seeing somewhat cautious, maybe has gotten a little more adventurous, gotten some of the head winds out of the way. Tensions have eased a bit. Fed meetings behind us runway seems good. I think i like the way joe is playing, focused on the laggards its tough to chase everything fully priced in the u. S. I think thats really hard one of the things weve done, take a little out of fixed income and added to emerging markets. Emerging markets has been a big laggard to markets, valuations are chooef cheeap there. We could enter the point on multiple expansion i think thats important in this Interest Rate environment especially if you get into a super goldilocks scenario. By that you have growth reaccelerate without inflation the fed has been clear, what they are focused on is inflation. A lot you have the heart of stephanies point. But youve got that for one very important reason. We entered the year expecting the fed to hike rates and we got three cuts that is a very different environment. So you add an enormous headwind with a lot of risk on the dashboard that didnt play out as those negatives are removed, markets accelerated. That was the reason to be cautious was the headlines to be optimistic you dont think if earnings are a disappointment the market is sustainable to go up, do you . Earnings just have some good Earnings Growth now. No. You have to have better than feared earnings. Thats what you need thats what we had in the Third Quarter. If you go into next year and get 5 Earnings Growth, i think that could be fine when you have these other capitalizers there where i worry is as you get later in the year and comps get more difficult and under the circumstances into kind of the election cycle and you get spot possible Regulatory Environment where you could see financials getting regulated again, health care, whatever, technology even, right, i think thats where risk can manifest itself. But right now i think its a little safer to go in. The other thing i would mention is last year was very precarious because there was a lot of opportunity for tax loss selling. This year, everything is up. You threw the paper at us. Maybe mlps have given some back and theres an opportunity to take some losses there versus these gains but theres no place that is take losses. Then when you get into next year and think if im a capital allocator, where do i allocate money, well, theres no alternative to stocks. Its really hard. That may be a fair point. Theres no alternative to stocks, but there is an alternative to u. S. Stocks. Yes i agree with that. Relative value trade looks pretty enticing outside the u. S. Thats why we added thats exactly right. I want to chime in. We cover Institutional Investors. What were seeing, scott, is what youre talking about. When you think about the globe and the ability to invest in stocks global, were seeing two to one selling in the u. S. Taking some of the profits off and reallocating into just as you said, emerging markets when you talk about asset allocators and large Institutional Investors that used to be 7030 u. S. Stocks, its now the reverse. You can own multinational cyclical in the u. S. Have lagged materially im talking about energy, industrials, materials the positioning is that no one is in those spaces. A lot of pure play. If you dont have the conviction and you dont want to put a big allocation overseas, because it is a little bit more volatile, you have plenty of opportunity here to buy and have that exposure. We are global. Scott, Economic Optimism came out this morning, and it was better than expected to stephs point about factory utilization and so forth and capacities, running right up there at 77 plus percent, i think, those are all positives as far as the rotations and laggards and things like that, yeah, theres a lot of that going on its almost like were in the fifth or sixth round of graft where, you know, youre not getting folks they cant pick apple anymore because they have already picked apple everybody has overpicked apple its like, you know give me the mid round graft choice thats going to be a standout this rounder is going to make the pro bowl next year. Macys. I dont know about pro bowl but ill tell you where im seeing a lot of these folks, a lot of the stocks, personification a lot of these stocks that are catching some investors eyes here are ones that they think still have upside but have just been slammed. Now as you guys know, im involved in a cannabis etf its one of the few areas like rob said when youre looking at something tax loss sold this is that sector. Cannabis from till ray to growth they have all been sold. To your point tupperware today, big poppout of tupperware today. Too small of a stock to mention in certain categories on the show but this one is making a nice big pop its just off the 52week low. If you look at multi, multiyears you see people grabbing stocks like this one. Using your sports analogy just to carry it a little further, everybody is drafting the great athletes the everybodys the etfs if markets go up those athletes are going to continue to get the support and continue to perform. Theres one thats sitting out there and everybody is like, it sure runs a fast 40yard dash, sure runs high. Antonio brown. Its lagged thats amazon, one of jpmorgans best internet ideas for 2020. Youre right. Its behind the market overall, but its still double digits on the year. Yeah. But its substantially behind the market. Because its an investment year for amazon. The stock never outperforms when they are in investment year but it does tend to perform the year after investment year because thats when you see the benefits and operating leverage this could set up nicely for 2020 i do own it but much smaller ive been trimming it along the way. Some good money. Ive been putting it into alphabet its cheaper more opportunity in the crowd. Why have you been trimming it. Profit taking, like we talked the other week about apple trimming its still an overweight position for me but the valuation is pretty high again, its an investment year i would love for this thing to pull back and for 2020 load up again because i do believe you will see a good year out of the stock. Some of these other names are peculiar on the list, joe, best internet ideas as we segue into an idea where do you want to be positioned, if technology is that spot, facebook, lyft, peloton, snap. All those have an overweight rating by jpmorgan analysts. You know, lofty targets in some cases. Lofty targets in some cases facebook and amazon in a year where a class size really seemed to matter, large cap and megacap in 2019. You asked before where is the opportunity going to be for those middle round potential pro bowl players i think you have to look in the small cap world, in the Technology Names and some of the emerging software names. Docusi. Amer price, amb, globe life, life insurance, aon, thats where you find the opportunity if i look at these five names obviously i say to myself facebook and amazon thats where im going to get more sustainability and Earnings Growth and more reliability in terms of performance but then when i think about it in terms of size class, i would look towards peloton, lyft, snap i believe in 2020 the environment will be conducive for performance you dont think were late cycle, then. Late cycle there is a gravitational pull thats pow powerful to large growth if the cycle continues small caps from valuation perspective relatively attractive. A huge display of catchup. If youre late cycle, a totally different playbook thats a great description. I agree with you are we late cycle, scott mentioned gdp growth, generally in late cycle you get that acceleration in growth and you reach that euphoria moment we are seeing right now growth thats not recessionary but not suggestive goldilocks. The Federal Reserve just sits back and waits for the next move i dont think they know. What do we think of these picks. Look, a lot of people like facebook thats not very you forget, it was down to 150 bucks early this year. A lot of people got scared. But it had a great year im sorry, scott. Some of these outliers that are in some cases hated, certainly underowned lyft, peloton, snap. I personally believe i wouldnt go lyft, im uber, brand recognition, diversification of that business, potential for strong execution in some of the things they are implementing, they are to me going to win that battle its a longer trail but i personally would take them over lyft sort of like not to say you have to own one or the other sort of like i would not own snap, i would own facebook if im in there i want the power player. Would you own twitter would i own twitter its been a dog of dogs. It would. I dont own twitter and i dont own it because of other reasons. I think jack does a great job and the president is helping and keeping it afloat. Is this the one that gets caught smoking dope two weeks before the combine and they dont even invite it to the combine because its that bad . Look at the horrible performance. I dont understand. Snap is up 180 this is down 7 . They havent fixed it, they dont know when they are going to fix it. I agree they dont even realize the problems they are making for themselves. Valuation have you to be disciplined on valuation. I dont go for high flyers amazon is the exception for me i dont support. Theres no way to support it. With the facebook when you think about execution strategy, management team, can you disagree with how they think about things, the ability to monetize the way they have the way they have grown via acquisition and the way they know how to make money. Its 20 times growing 25 . There you go. Thats a great risk reward. Scott, theres my answer, longwind longwinded. Another name, netflix, soaring in europe, asia, middle east, up in the past two months up 17 this year its another laggard do we disney gets so much love of late netflix gets passed over in most of the conversations you have these days. No, they dont. People are overly zealous thinking someone is going to sell it. People are still going to netflix and chill. When they put 90 of their growth out of the United States what they are trying to do i dont mean to speak for the coe. What they are trying to do, look, guys not only are we going to see growth,some growth here even though its on the decline in the u. S. , we have tremendous growth outside of the u. S. I was at dinner last night when half the table didnt have netflix until recently like last week. Generationally i think didnt subscribe to netflix until last week. The irishman literally brought them on the platform if you havent seen the movie its henomenal. A fun group youre hanging out with. Let me explain. A millennial, gen exer, boomers. They did not have netflix. Like facebook, grandma gets on facebook, mom is on facebook now mom is starting to get on instagram. Youre going to see these generational shifts and thats going to continue to grow. But you dont own netflix anymore . I dont i made triple the money on it and i took the profits off the table but i firmly believe in this company. Do you have confidence they have Pricing Power i do. I dont know anyone they have continued to raise the prices. I got them, i think they were 7. Thats disneys big push. I think you can have both. The question on Pricing Power. Americans, think where the consumer is now, steph think where they are and where sentiment is i dont know anyone canceling their netflix to get disney, they are just adding it on i think they are going to get them i love that play they want both. They need the Pricing Power they have in the u. S. For a subscription in the u. S. , i believe they are ringing the register on 13 is the number. In europe its about 10 it lessens as you look at asiapacific and latin america, down to 8 internally. Hook them and raise the prices the way they did here. Hang on you think netflix is going to raise prices how can they raise overseas. Im very specifically talking about overseas even if its a quarter, 50 cents, im going to raise a dollar here, raise a dollar here im putting my consumer hat on as you continue to see emerging markets, get that growth back. Their consumer starts to come back. So many choices its not just disney. No. Theres plenty of choice but theres also a secular shift in how we consume this. This is a very powerful demographic shift. With five competitors, youre just not. You are they dont have the same things, stephanie. The same things when they pull away from flixz. Here is the thing. More original content. Can i make a point. Sorry. The reason people are excited about disney or any old line company that is able to make a pivot to a new direction, whether it be target and their online sales is because they successfully injured and executed a transition. That is why they are excited about disney it does not invalidate anything that happened at netflix with recurring revenue stream they have created, which might get under some Pricing Power unless they are able to come up with great content, which they have been able to do. Theres room for multiple players in many industries. Scott, the thing is the international netflix, we talked about it with you when we were all discussing this data we had over at battle fin, international is flat. Thats two quarters ago. This Quarter International was going through the roof they said today when they released their first regional report of where subs are, 90 of the growth is coming from international. That continues to kourts point. At some point they raised the price on that, scott the fact youve got 90 growth offshore outside the u. S. Is huge for these guys. Huge and underappreciated lets pivot and talk about boeing for a moment. Temporarily suspending production of its grounded max jet. The stock rebounding today still in danger, first negative year since 2015. Our fill lebeau joins us now what do we do with this Going Forward as investors. I think the big question a lot of people have is how quickly will the rebound happen. I think an overestimate how quickly it comes back. With boeing, faa, in terms of when these planes are recertified and they start going through the inventory in terms of, okay, how do we start the deliveries the delivery cadence is not going to be Second Quarter were good, 400 get delivered. Just not its going to be a lot slower and more extended. I think what were seeing here with the stock moving higher is people are saying, okay, i can live with that i think someday its going to get back to levels people are touting for whether its 2021 or 2022 by the way, almost every analyst agrees 2020 is a mess. Its underperformed the group 18 in the Fourth Quarter alone. So a lot of this is already factored into the stock. Absolutely. The fact they didnt furlough or fire anyone is a good sign. They think a month or two delay. I would say long are than a month or two. Okay. We can disagree on that you could be right. I think furloughed if it was more than three months i think they would have taken action on that front the fact they are not building inventory is a positive in my view actually this whole situation helps their Free Cash Flow burn a little better, the fact they are not producing. They are halting a couple of things look at a glass half full, half empty. I can make either case as an investor, longterm investor, this is a duopoly. Youre 100 right. I just think its very rare you get a Quality Company on sale for that long of a time period this has been going on for a year. Can we just say, the question is when do you see the rebound i know were seeing a little bit today. I think if you get recertification in the next two or three months, one, two, three months, i think the stock flies. I was going to say when do you think you see the rebound. I was going to ask what happens if the stock trades down to 300 like cramer suggested. Youre at 329. If it goes to 300 youre going to Start Talking what if it goes to 270. If you think its on sale would you be more of a buyer at 3. I certainly would cash yield thats astounding i know theres a lot of uncertainty. Im not saying it shouldnt around here at this point in time i kind of like to buy stuff when fear is out there. Its a widely held name. I dont know if its widely held, to be honest with you. Remember when the ceo started talking a month ago he they were going to get recertification by december and the stock really did well then all of a sudden these cracks came out and the stock then tanked. I dont think it takes much for this stock to rebound. In terms of Free Cash Flow and that story its a 2022 story im not buying it today for that i do think this extreme level at this price makes sense for longterm investment. The trigger is recertification. No doubt. What is this announcement, if anything, mean for muhlenbergs future do you have any sense on that . Well, the fact that you did not hear from him in that statement says a lot i was talking with somebody from the company and they said the statement says what the samt says the fact we dont hear from Dennis Muilenburg, does that mean hes going to be fired . I dont think so. You just kind of we have not heard from Dennis Muilenburg in a meaningful way since he was on capitol hill and they put out the guidance on november 11th. And thats it. Now read into that what you will. What is your reaction as the investor at the table going to be i dont think they will fire him. They dont need that headache on top of everything. Would you care if he was ceo over the longterm or not as an investor. I think hes botched this up pretty good for sure the chairman is supportive of him. Im not sure its a layup. They just need to get it in the air and you can deal with the ramifications. They will get on plane. If its safe, they will get on the plane. Thats fill lebeau in the house. Nice to have you here for a change. Here is whats coming up on halftime report. Johnson johnson shares up 10 in the past three months Morgan Stanley think its got room to run. Our experts debate it and the Health Care Space in call of the day. Plus john nanhas unusual activiy latest trades based on movement in the sto mket ckarahead. Scott wapner and the traders are back in two minutes. At fidelity, online u. S. Stocks and etfs are commissionfree. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk pa. Im ra hel solomon, cnbc update. Rejecting a request to call witnesses including Mick Mulvaney and john bolton in the expected impeachment trial of president trump. The house chose this road its their duty to investigate. If they fail, they fail. Its not the senates job to leap into the breach and search desperately for ways to get the guilty that would hardly be impartial justice. Southwest airlines is announcing that it will cancel thousands more 737 max flights through april 13th, 2020 a southwest spokesperson says the move was in the works before boeing said yesterday they would suspend production of the plane. And pepsi will launch pepsi cafe in 2020, it will blend the taste of coffee with pembroke pinpsi , blend coffee and vanilla, and have double the caffeine of a normal drink send it back to you. Appreciate it j j rallying in the last three months Morgan Stanley thinks you should buy, upgraded increasing price target to 170. Stephanie you join j j i do. Do you like the call. I do because i own it. A lot of uncertainty. Its trading at a 10 ai year discount historical average to the s p, 10 discount to the s p. I think underneath the surface the fundamentals are just fine youve got this legal issue and you have to decide this little legal issue. They also generate 30 billion in cash a year they are going to peel all of these things there is a legal issue thats why the stock trades where it is. Under the surface, pharmaceutical business is on fire growing upper single digits, med tech, consumer, er, okay i think m a in med tech and growth will improve. Getting through this legal staff will be a battle its lagged so i like the call. Im wondering if youre watching the program and you dont own the stock, and you know about the talc legal issues and overhang with all that, if you say its worth a risk to buy the stock here based on this call of the day, as we say, or too much risk to put new money to work. I understand if you have money working youre not going to give up on it what about the person who doesnt own it. I think the valuation is discounting a lot of the bad news trading at a tenyear historical average low relative to the s p its a big number, right if i didnt think underneath the surface fundamentals werent as strong as i do, then i wouldnt be buying it fundamentals are doing very well great pharmaceutical pipeline that i dont think gets the respect. Youre yielding 2. 6 , great quality management, awesome balance sheet. As i said, they generate 30 billion cash a year. They have plenty of money to pay for a lot of these settlements i dont think youll see any settlements my time soon in a huge number. You know, i generally dont talk about stocks on this show years ago james grant, you may have read it, wrote a story in his letter that said there will always be j j, it is a fantastic company. Weve owned it for a long time we own it in our dividend portfolio, because of the quality, consistency, transparency, that dividend they continue to provide and they are diversified across pharma, med device, consumer products. If you had infinite time and resources you couldnt replicate what they have they will be able to my great through it and ultimately it will be a stock we own in our portfolio. I agree with everything rob said i agree with what stephanie said if you dont own the stock, though, the problem is the visibility the fact they are taking a litigation position of appealing. Its working. The appeals are working. Think about it in terms of stock performance. Not are the appeals working in a court of law if you dont own the stock, the position litigation wise they have taken they are going to appeal, thats going to impede the stock from having the ability to Gain Momentum i agree with you its a Quality Company i love medical devices component. Across the board. I think those are good points. I think they are. California jury yesterday dismissed claims in that particular trial not all claims, of course. But in that trial they dismissed those claims in that yesterday as far as the talc and cancer issue and all that thats a california jury. Opioid overhang, too. Yes, there is teva and a bunch of others bear that responsibility as well. I think collectively the opioid these firms collectively get and do that big deal. You dont own these either. I dont own this one but i dont own a lot of big drug stocks pete does, i dont im a trader, not an investor. I dont own it for that reason. Thats a good point im an investor. I have 2. 6 dividend yield. Momentum when they do settle or if they do settle, when you get some sort of closure on this, the stock is going to do very, very well i dont have the timing. I dont know that. In the meantime it makes sense its a quality staple like company at a reasonable price relative to steph is a collector, theres brokers and traders out there. I think being a collector when something presents itself you hang it on the wall and let it. Coming up, option bulls in the energy space jon najarian in the unusual activity first check s p sectors today. Or not the s p up nearly 4. 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. 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. I cowe can do theyour screening at her house. Hi. This is the man thats going to check your eyes grandma. Cognizant ai solutions are helping Healthcare Companies advance diagnostics and prevent blindness in patients with diabetes. Everything looks good. You have beautiful eyes. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk bulls making big bets on midstream player jon najarian has that in unusual activity. Scott, dcp. Top of the show were talking fifth round picks and things like that, i think this fits that category. Why . Because look at it right now its down a little over 4 yeartodate thats after popping almost 6 today. Thats why i have right here that thats a fifth round pick now, when you look at where it had come from, it was up here at 32 and so forth. I think that is where it could be going back to, scott. So kinder morgan, thats probably your first or secondround pick but this one dcp i think has a lot of room to the upside somebody else thinks so, too thats the paper were following. 5,000 contracts traded pretty quickly at the january 25 strike its not a big reach for this thing to keep on chugging through there. I bought these probably second week in january. If i look at that point, maybe i extend out and roll it into perhaps april options at that point. Come on back over good stuff the desk is ready to answer questions. Semi, acto aszblksnend more. Well do that in two minutes everything your trip needs for everyone you love. Expedia. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk all right. Welcome back lets do some questions now. First one, jeff in boca raton, where youre going to do yes boca baby. Jeff can ask again. Lets talk medical devices etf ahi. Too expensive to buy now thats what he wants to know. Valuations for medical device high based on five and tenyear, medical devices tax on hiatus. Expect as are it does not return in 2020. In the last five years seven of the top ten s p 500 health care performers they have been medical Device Companies its almost a way to play against a recession, low growth, and the political narrative right now that seems to be holding back performance in a lot of health care names. All right people of boca look out for you later today. Michael in charlotte, north carolina, for jon. On semiconductor, what do you do, hold it or sell it Im Still Holding it. Ive taken profits, thats one thing i do if it doubles and so forth. Were talking about this one i think on halftime back in the middle of september. It was under 20 a share its pushing towards 24 right now. I like it. I think they are doing just about everything right and they gave us positive guidance just in their last report recently. All right steph. Mary in canada wants to know about Emerson Electric its not about buying it its sell it or hold it. Dont sell it definitely hold it a catalyst coming up restructuring on valentines day. They are going to make announcements reinstruct urgs operations, a catalyst into the meeting. Maybe trim some after but i like it into that meeting. Kourt, lu from the great state of new jersey. Blackstone, should i buy it now . Absolutely you should buy it now i think its a name i bought structure of blackstone. The reason you can buy it now as much as it is is where the inflows are going from Institutional Investors right now into the space they are alltime highs. Blackstone is highly diversified, very well run and poised ins position to continue to grow in the future. Its a name if youre allocating financials, i love asset manager particularly with electronics, this is one i love. Rod for you, par in boston. Any thoughts on biotech m a surge in recent weeks . Yes, i do one thing i would say backing up, biotech is a space you own pipelines in litigation. We owned it on selloff, 25 price appreciation gave all of it back. Its come to the foreagain because of drug price baiting also m a bristol and celgene m a happens from strength also stagnation in the pipeline very idiosyncratic, very specific to the company and you just want to be careful. I think youll see more and more as long as you dont see a lot of this reform jump to the front burner again. Thank you for that. Very detailed answers. We appreciate that rob, ubs roku taking a hit ongoing shares the ceo is stepping down who he else but jim, ask him what hes doing about shares he reports after this. Each day our planet awakens with signs of opportunity. But with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. Cme group when we were looking he wanted someone super quiet. Yeah, and he wanted someone to help out with chores. So, we got jeanpierre. But one thing we could both agree on was getting geico to help with renters insurance. Yeah, geico did make it easy to switch and save. Oh no. Theres a wall there now. Thats too bad. Visit geico. Com and see how easy saving on renters insurance can be. Roku shares are falling after the Company Announced its cfo is stepping down jim owns it, i think he still does jim, i thought of you right away how could you not. Thank you, brother scott. Whats the reaction. This is a big nothing berger. If you look at the details fundamentals of the cfo leaving, hes been there four years hes increased the valuation of the company twenty fold. Hes commuting from seattle to san jose every week, which is a bit of a beast more to the point hes got about 100 million of in the money options. Hes ringing the bell, going to take time off and i expect hell pop up as a ceo somewhere. Outside of that the Company Seems fine they are expanding internationally, which is the next Growth Opportunity for them. This, scott, this is a technical story not a fundamental story. This is all about momentum so im sticking with it for now, the next 5 move determines where we go with it. If it goes down we have to get out, if it goes up its clear sail than this, the next 5 determines what we do. Wow, if it foes down even close to 5 youre out i mean, i ask you this because i hope there are new people tuning in, you know, one way not know what your positions are week to week on roku and its a trading vehicle for you and a high momentum name thats up better than 300 year to date. Thats exactly right. I think my feet should be held to the fire for deviating from my core competency. No. No youre allowed to have fun the farmer is allowed to play, too. Its all good. Ride a motorcycle instead of a tractor, is that what youre saying yeah. Why not . Live a little, jimmy. As long as into break my neck riding the motorcycle which means if it goes down 5 at 16 times price to sales you have to know when youre beat. Right now its working so lets just let it work, but 5 down from here and you have to get out. Good stuff. We will leave it there just wanted to hear your voice on the stock today because its in the news and we talk about it often. Be well. Well see you soon. Thank you, judge. Thats jim labor that will the farmer joining us. 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. Announcer online now, more record highs, read stephanie lansmans article of where strategists e eiarseng new opportunities. Go to tradingnation. Cnbc. Com now. Of outperformance. Rs 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. Theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. Ugh, another electronic signature. You have to print, walk, sign, scan, recycle, walk, email yourself. Really . More walking, try again, waiting, recycle, walk, email yourself, then get back to your day. Or not. This isnt working. Introducing samsung paperless workflow solutions. With the galaxy tab s6, you can sign Digital Documents onscreen, with a finger or your s pen. Samsung business solutions. Welcome back all right. Courtney, we have to talk. Oh, boy. Because youre buying a retail stock and it is not walmart, which is up 33 year to date. Of course not. Target, up double best buy is up 65 . I told you guy about best buy a long time ago. Told you about best buy a long time ago, too. Its macys it is it is. I mean, because right now those other names, which i love and ive aukd about on the show, i dont do a ton of retail in my own portfolio but this name is so close to the 52week low. For a reason. Well, i mean, you could say that about a lot of things, right . Lets talk about especially this one, though. Im playing value today, you know im a growth girl 9 dividend yield, right 9 dividend yield. Okay. Okay . Fair point. There is my down side, all right . Some people might say, oh, they should cut that because of where the stock is, reinvest it in bad leases and fibsing stores. I had a rather depend on as an investing that guaranteed money and then allow macys to recreate their playbook as it relates to how theyre going to run this business Going Forward. What if there is no playbook . There is a playbook what are you talking about what if their playbook has walmart, target, best buy and target in it thats like llama mar jackson, tom brady, Patrick Mahomes what am i going to do . Mahomes. At the end of the day, right, it is a staple name that has the ability, brand recognition, real estate to move forward i honestly believe if macys can do better with an app, if they can make other changes there is nothing but and i hate to say this, but theres nothing but upside from that point and your down side is 9 . Im not saying your down side is zero 9 right now. We like contrarians plays. And i dont do them often. Thats fair thank you. Its up a couple percent since i bought it. I bought is 15. 16 so you can hold me to it. The stock is moving on up. This morning. We dont have that much time. Give me 20 seconds or why youre adding to freeport. Its a china trade stock, they are focusing on cost cutting, supply and demand in copper gets better in 2020 as gloebl growth accelerates. Adding to nvidia. I am. I think its going to be a great 2020 for nvidia. And schwab as well. Joe, start us off, please, with final trades. I think its important when looking at your portfolio to find something that is completely out of consensus, thats why last week i bought tip, jeffy gunlock mentioned inflation, no one is thinking about inflation moving forward i hope im wrong in putting this in the portfolio but its a good thing to do, out of consensus play. Stephanie. Im going to reiterate nvidia, data Center Gaming all set up well, they should see a recovery next auto year, 7. 8 billion in cash they will deploy. Courtney. Im sticking with boeing. Awesome. I would put it in the portfolio and someone just told me dont bet against dennis. No. Im with joe on the laggards, we added emerging markets, i think everybody should buy emg. Planes, pagp, another infrastructure play for energy. Thanks for watching the exchange starts right now. Welcome, everybody, to the exchange, boeing shares dropped since the grounding of the 737 max. So recertification get pushed out even more and some investors are beginning to ask why is ceo Dennis Muilenburg still in charge we will explore. Plus, will the china trade truce bring back ceo confidence and lead to more spending . The head of the Conference Board says the deal doesnt mean much to them but he will tell you what does. And from electric cars to cigarettes to, at