Investment committee is ready to go Halftime Report starts right now. Welcome good to have you with us on this thursday, the first trading day of 2020. Our Investment Committee here today. Lets begin with the markets its the first day another record setting day for the major averages there you go right now dow off its best levels, not by much new record high, 28720 nasdaq back above 9000 s p 500 positive as well the russell is a drag. But for the most part, its the same story semis hitting fresh new highs. Apple extending its record high. The beat goes on. What im particularly excited about are the International Charts i know a lot of american investors say what do i have to Pay Attention to that for . Its note worjnoteworthy were g with countries in europe up around 1 , looking better than our markets. Germany is up over 1 . European banks this morning as a group are up 2 . European Technology Names as a group are up 2 . This is noteworthy emerging markets is up double what the s p is up on the day. You are starting off the year right. Not just here with our semi and Software Names you are starting off with 52week highs in the all country world index. Its acwx. Thats what i would Pay Attention to its encouraging. You are paying attention to it you bought the eem today seems like a good day to do so. First of all, we have significant exposure to the emerging markets im always invested there. In the last couple of months i talked about the optimism, the change in sentiment we have seen in the marketplace it bled into financials. It bled into energy. Now its going to spread outside the u. S. I thought last night, you got some strong physical measures from the chinese that took me to the nchi, Technology Exposure to chinese equity josh is talking about europe theres opportunities in the ewg. Thats the next etf that im looking at thats direct exposure to germany. You can look at the ewu. Then the traditional emerging markets, etf scott, the eem, i went into that i want to increase exposure outside the u. S. I did sell some things i sold msi, Motorola Solutions i sold tjx, which has gone nowhere. Can i ask one favor swap out the eem for iemg. They are based on the same index. Eem is 67. If you make this an investment, thats more than you need to pay. Buy iemg for same exposure, 14 basis points the reason eem is popular is because its big and liquid enough im guessing you dont have to worry as much about that like my new years tip for you. Thats awesome. I like the trade. Thats free Investment Advice on the first trading day of the year im going to take him up on that. Make money and save money absolutely. This leads me then are the best opportunities this year going to be outside the u. S. Or in they might be outside we manage an international portfolio. For almost two years when i had clients come in with fresh money ive been getting them what i would consider by historical standards to be High International locations. This morning i was reviewing the jp morgan guide to the market. Theres a stunning chart in the back of it you see that since the low in 2009, s p is up 370 i think msec is up 124 . Its trading at a four point discount to the s p 500. Theres some really Great Companies in there should ford and gm trade at premiums to toyota and honda because theyre in the u. S. . I dont think so go down the list and do that over and over. I think theres a big opportunity. Im thrilled were talking about it at the same point, its not like people are dialing back their expectations for the s p this year. You have oppenheimer, technical analysis, the road to 3600, btig 3440 you have 3500. There is still optimism that the trend here is going to remain your friend. I agree with that im not saying that the eem or any derivatives country specific of that arent going to outperform potentially but i still like the liquidity here i think the recovery thats happening in europe is real. I think a lot of the stimulus thats been applied for years i dont want to say coiled spring, necessarily, but when you have a situation like china as they put all that money into it last year to fight off the trade war, europe instead had cut their rates into negative territory for years. I think a lot of that has really pushed equities to the point where they are rtd eady to makea big move overseas. Is it bigger than our move it could be. Im concentrating in the United States although, i did take a lot of profits today in a lot of stocks what kind the calendar turned over. In lvs, took profit. I took those because of china. That reserve requirement going down in china. As everybody has said, huya, be a beaba, all of those stocks are up between 9 and 13 today. I was taking those off. E a baba, all of those stocks are up between 9 and 13 today i was taking those off. A baba, all of those stocks are up between 9 and 13 today i was taking those off. A baba, all of those stocks are up between 9 and 13 today i was taking those off. Baba, all of those stocks are up between 9 and 13 today i was taking those off. Baba, alu between 9 and 13 today i was taking those off i was taking money off the table in those and i was lightening up in apple, in facebook, in a host of these, nike and snapchat and a little in tesla. Didnt mean im getting out. Im not liquidating completely i sold all of any calls in those stocks i described instead, im in the stocks and protecting it with puts. Do you think some of the names have gotten into nose bleed territory . The biggest gainers are the ones that continue to gain as we you said you took profits in apple. But not the stock i still own 100 of my apple shares its just this far from 300 right now. I still think a lot of these stocks look great. One of these days, we could see exactly people doing what i did today and that is i rolled off my taxes and dont have to pay those until april of 2021. Not april of 2020, 2021 because i took the profits now those are what i was concentrating on. Its interesting to see that the conversation is going to really get hot and heavy around earnings coming up now its speculation what are they going to be . Whats Earnings Growth you are going to get numbers in the very near future you will find out if its put up or shut up for some of the names. They deliver, they justify where their stock prices are or whether they are cause for a pu pullback most of the Earnings Growth is coming from a handful of sectors, technology, health care, financials if you understand the earnings picture there, you can i hate to say this. People get upset you could probably ignore the earnings revisions upward and downward in segments like industrial and energy and materials, because they just dont have the same impact on the overall s p 500 picture. Of course, they will matter to the individual stocks. Thats the reality when we think about that reality, what are s p 500 earnings going to be we read the same notes were seeing the same 8 to 10 , which is standard. Whether we get there will be a function of a lot of things beyond how companies are forming individually, consumer demand has to hold up, international is going to have to get better as we think it will if those thing comes through and you can get something approaching 7 , 8 , then the question is, what multiple are we paying on them . Tell me what wages are doing tell me what real estate is doing. Is the fed in the second half going to be thinking about, things are overheating we dont know now. That is a legitimate concern the fed would become more engaged on that side of the equation heading into an election you get more noise in the back half of the year. Thats not supposed to Pay Attention to that. I know. Whatever they are not supposed to do, the fact they would do their thing, whether they would raise or cut rates months ahead of an election seems unlikely. You never know until you see it. I think thats why its a market risk. Its unlikely. If they were to hint or communicate that maybe they are seeing something in the economy that would suggest a little bit of an early return to normalizing rates, i think the market has to begin to price that in. Thats a market risk i think similar to what john is saying, a lot of the names that i look at and i own, earnings will be important to me this month to see the reaction of the stocks after they report earnings do they report strong earnings, meet expectations . You dont see the Stock Performance. I think thats a point when you want to give a fair analysis to maybe i get out. I think growth is important this year growth didnt matter in 2019 it was about the Federal Reserve and multiple expansion i dont know if you are going to be able to get away with those in 2020. Its all about the guide. The numbers are rear view, guides fully looking ahead ceos are concerned about what may be on the horizon. Wall street journal with a story out today, conference board, number one risk, the fear of recession that crept up from three. I dont place that much weight on the ceos i feel that is their job their job is to expect the worst Case Scenario and make sure or plan for the worst Case Scenario and make sure their businesses can withstand whatever comes their way. That doesnt worry me. Its about the response to the earnings everyone out there right now is expecting 8 to 9 Earnings Growth as long as we get that and expectations are in line with what we see, then it could be a healthy response i dont think people are expecting to shoot the lights out. I are said said this before. Hahe said this before. Haave said this before hae said this before ha we should be able to hold the levels. Do you think Jerome Powell is worried about wage and employment employmentrelated inflation . One of the biggest stories of 2019 is rank and file, not managers, not ceos, saw their wage growth twice as fast as the people that oversee them its getting harder to find talented people given how late we are in the cycle. You have to pay them more. There are 7 million unfilled jobs in the country. This is something we were not worried about five years ago im telling you that in 2020, it will be a discussion 26 states in the last few years voluntarily raised their minimum wage 21 states, including some of those 26, will do it again in the year 2020. Wage cost inflation is going to be an issue for small businessowners, for the s p 500 companies as well. The question becomes, what does the fed do as those numbers heat up what is the fed is powell somebody that remembers the 70s and is worried about inflation are they willing to tolerate more inflation i think thats going to come to the fore at the midpoint of this year. If i could return the advice, it goes back to your conversation with jeffrey, get your client exposure to tips which you have done. Its important this year. Its not a consensus call by any means in terms of Asset Allocation i think its important from a Risk Management standpoint. Talk about Asset Allocation issues scott, last week as you were enjoying a couple days after, we were talking about Consumer Electronics show and 5g. Steve is pounding the table. 5g is going to be huge thats why you see moves out of amd, apple there are companies from broadcom on up that are exposed to this. Is it here in january . No it will be at Consumer Electronics show next week, 7 through 10th thats why i want to be exposed right now. I mentioned amd is up 4 today apple and a host of others are moving up. More than the market i think that continues in the Consumer Electronics show. Then after but i think there will be profit taking after Consumer Electronics show starts. You think this runway for technology has some legs i do. Yeah, i do. I think also when we talk about technology, its important to remember that we dont need to necessarily be referring to the biggest, swankiest companies that have the huge multiples im reminded that technology includes the laggards that have low multiples but huge returns last year like Western Digital technology can boom. It doesnt need to be last years leaders who drag the index you think you do a little barbell. Its a good point. You can have exposure to tech, but you dont have to have the five best performing names of 2019 be the totality of your exposure my favorite is google. Google broke out substantially in october i think this move is you could see 1,500 without any stretch in the valuation relative to its peers. I love the story its diversified it has got quality earnings. The Balance Sheet is a fortress. Less controversial than the facebooks of the world nobody really talks about this name quietly making they finally are. You are right. They finally are its making the top of several lists. Not only yours top pick to start the year alphabet, it remains the top pick, which offers relative stability with continued business diversification and the attractive valuation right at the top of the list is alphabet its a 100 billion in cash on the Balance Sheet they could be doing a lot more than they have you know what the dividend yield is 0. 0 bi the buyback is not egregious its 826 billion for a company that arguably is in a duopoly. Its tilted in favor of web advertising and aways from television and all of the other mediums. They have this Competitive Position has not changed. They are serious in terms of the Financial Condition of the company, having brought on a cfo from Morgan Stanley. Pursuing Growth Opportunities with return in capital to shareholders, they are balancing. To your point of the top ten internet surprises for 2020, you get another internet dividend payer. He throws out google as oneof the possibilities. Why not along with facebook and booking. He talks about 2019s ipos coming back. I think theres some validity in that obviously, zoom video was a name of purchased recently on that belief i think they talk about chewy coming back and pinterest and etsy some of the 2019 ipos that we believe will under dperform, i disagree with that i think you can find opportunity there. In particular, for Technology Ipos he talks uber and lyft. No way. Very optimistic. He said it would be a surprise me losing 50 pounds will be a surprise, too. I would tell you if thats your thesis on uber i have seen your instagram feed it would not going to happen im in uber. I dont expect profitability this year. I think sentiment for the name heading into year end is pretty much as poisonous as you can imagine for a newly public company. I think theres room for some of the that pessimism to lift they are not out of the woods. They are not profitable this year they have gone after california for the law that was passed and turns with the calendar right here. To the extent that they can delay that, much like when they were kicked out of london but where they were blocked but they got to continue to operate while they appealed, thats going on here if they lose this fight in california, this is big across the board for uber and postmates. In ubers favor, and a lot of these Delivery Companies that are facing down the specter of having to reclassify thousands of people as employees and contractors, in their favor this will not change consumers absolutely love these services if the prices for these services were to double overnight, because of a politician, that politician is now threatened we should all keep in mind, its not like uber is jamming its service down peoples throat people love it could it do a better job with its employees or contractors yes. So could everyone. I do think this is not a situation where we have seen the resolution it could be years of litigation. In the meanwhile, people continue to take ubers, continue to order in food lets kick around another stock that obviously gets a lot of conversation. Its not going to be a shock we bring up amazon. Its on his list he think the surprise its profitability would plummet in 2020 this yas twas the year that was supposed to be the spend the stock had a fine year. Yet it underperformed the s p 500. Theres no two ways about that what is 2020 going to hold for the company that everybody seemingly loves to use and the debate is whether its a good stock to own. The interesting story is that other companies in retail were able to survive in an amazon world that we didnt think would survive. Thats where the opportunity was. Looking forward for 2020, i have said this, above 1,900 technically, it looks as though amazon is finally coming out of the malaise it has been in as far as its ability to show a profit in the past, it has not shown that profit. Yet the price has moved higher we have this that experience. Investors havent cared they are spending. They are spending. They are spending. This year, well, they have been spending at some point do they have to stop spending . Focus on profitability. But also 5g, back to that, in your house as well as on your devices. Streaming is huge as far as retaining and or bringing in new customers. Thats why amazon is doing it. To get those customers, to get that loyalty up and so forth the better that streaming is for folks, the more likely they are to stay with those prime memberships and all that that is manna from heaven. Theres three things that will make consumers spend less or change their habits the first is an Energy Price Spike that sticks around most households in america are not in the top 10 of income earn earners. When energy spikes, that 20 of their monthly spending becomes 25 . Then all of a sudden they get nervous. Number two, a negative wealth affect the stock market is leading spending 401 k has never been more central to life. We have Energy Prices remaining low and the wealth affect, house prices and the stock market. The third thing is permanent increase in permanent decrease in compensation as i mentioned earlier, we are seeing the opposite. Earnings are accelerating for the portion of the population thats not in the stock market at all you have those three conditions. If you present a scenario where all of a sudden one or two of those three stops on a dime and goes the other way, then i will say, we should probably worry about consumer spending. Right now, that is not the reality that were in. Its worth keeping an eye on those three factors. Those are the things that have definitively been proven to change the way consumers are acting in the economy. Yet, given all that is the case, do you need to broaden your retail exposure into 2020 to some of the laggards rather than the big five of the walmart, costco vacations, streaming services, theres a lot of things dental you dont just have to buy stores in the mall to make money from the improving consumer situation. They are spending on a host of other things i cant envision any runway or pathway where amazons profitability would plummet. I think josh is bringing up something interesting. As we think about retail going into the next decade, we need to realize that retail in and of itself is a totally changed definition now we think about the digital retailers like chewy or cruises. Thats where the money is spent. Traditional ones that have gotten digital right. Target. Theres push and pull. To participate in retail, im not sure that you have to own the laggards i think you could own new things that are coming up that we arent as familiar with. You mentioned nordstrom you are not recommending nordstrom stock. Im not im not buying it. Looking at that versus macys thats another dud. They have divergdivergent strategies is it time to look at macys of the world im not uying im looking but im not buying maybe theres time. It will be Company Specific it wont be lets buy beaten up retailers. Best buy came out of nowhere it was a five to tenyear story for them to get it right the stock price appreciation happened fast. Its going to be case by case. There will be companies that figure things out. It will happen at a different pace i dont think you can say, what are the ten cheapest retailers, take a i want to come back go ahead. Wrap it up one of the things josh was saying were on both sides of the fence. Wage growth. Josh is saying the fed needs to watch for wage growth because that could increase capital costs. On the other hand, i look at wage growth as strengthening the consumer i think thats positive for amazon, target, walmart. To me that could be something thats really positive and really powerful as we look at retail in the coming year. I would say this. You look at the four stocks that have been troubled macys, gap, kohls, they are down theres some exhaustion in Consumer Discretionary thats the one area of the market that needs a pullback so you can reenter. I think part is Investor Sentiment is why bother. Some of the brands are l brands is a casualty of the me too movement its not about did they get digital right. They sell a ton of stuff digitally. The brand is dead. Gap has been dead for 20 years i feel that they are case by case, not a sector good or bad situation. We will leave this conversation right there take a quick break here is whats coming up a downgrade for wells fargo why a second bank analyst in two weeks says to sell the Investment Committee is ready to debate it unusual activity the latest trades based on moves in the Options Markets is straight ahead keep your questions coming the desk is ready to answer them in ask halftime. To reach us go to cnbcomalim. C hfte or tweet us. The Halftime Report is back in two minutes. A whole new range of emotions like. The relaxing feeling of knowing youre getting the best price. Thesell work. The utter delight of free wifi. Oh man this is the best part. Isnt that you . Yeah. And the magic power of unlocking your room with your phone. I can read minds too. Really . Book at hilton. Com. If you find a lower rate, we match it and give you 25 off that stay. Expect better. Expect hilton. And now for their service to the community, we present limu emu doug with this key to the city. 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Prosecutors in japan searching the tokyo residence of former nissan Ceo Carlos Ghosn after he fled for lebanon the Justice Minister says tripoli has received an International Wanted notice from interpol for him Authorities Say that he entered the country legally via turkey on a french passport Bernie Sanders raised more than 34. 5 million in the last quarter. That is still less than the 46 million trump raised over the same time period a lawsuit accusing kevin spacey of Sexual Battery has been dismissed that suit was filed by a massage therapist alleging the actor groped him during a private massage in california in 2016. The therapist died in september and the suit was being handled by his estate. The sale of marijuana for recreation in now legal in illinois it took affect new years day to the delight of many pot fans many began lining up hours early at dispensaries. Illinois is the 11th state to allow marijuana use. You are up to date thats the news update this hour back downtown to you appreciate that thank you. Wells fargo downgraded to underperform today thats our call of the day for obvious reasons. Its not the first for wells in recent history. Lets get the debate going joe, you own it. Jenny, you sold it in december not that long ago. Lets go to you first. Why did you sell it in december . It was pretty straightforward. We basically agree with what baird is saying. Its likely to get worse before it gets better we had something new we wanted to buy, American Express we repurposed the proceeds and bought American Express. We thought we would have more upside there wells at 13 times, American Express about 14 times we thought that American Express had significantly more growth, 10 Earnings Growth for two years. No management issues, no regulatory issues, no litigation issues, no trust issues. We thought that was a better investment. Why is this wrong better usage of money why is it wrong . Its consistent with calls for everyone else that dont believe he will be to navigate a turnaround. No, no, no. They like him. They believe they believe in him. They believe he will do a turnaround they believe it will take longer than people think. A lot of the calls are suggesting that the personality is an excellent one, but he has not defined what the strategy is going to be. A month ago, we had that debate. I suggested that the cfo go to Goldman Sacks and represented wells fargo was enough you challenged me say, where was he he should have been there. He is behind the scenes figuring out how he is going to deal with regulators and how he is going to make the Consumer Experience better he has not identified what the plan is going to be. I acknowledge that thats where a lot of the trepidation from analysts is coming for 2020. Its not like he is not they believe that he is going to turn it around they just these are their words. An extended timetable for improving operating leverage its going to take a long time. I suspect once he unfolds what the plan is going to be, that most importantly, the Federal Reserve will lift the cap on assets a lot quicker than the Analyst Community believes it will. The Analyst Community is a 12month target thats 2 1 2 below the stock. He hired former white house chief of staff bill daily to rep wells fargo in the conversation with regulators. They seem more amenable to accepting the culpability in management missteps of the last couple years. That says it all. Wells has been bogged down with all the political stuff its not political. They brought it on themselves. Of course they did. They have been bogged down with having to deal with it its new management now they paid fines. They paid settlements. If any other company besides wells fargo had done what they had done, they would be a shutdown company sometimes size is your friend. Its good to be too big to fail. You think about wells fargo as an investment. This is one of the reasons why Berkshire Hathaway spent the last deck decade underperforming. The xlf at the same period of time is up closer to 70 think about a stock thats underperformed this long i dont hate the setup going into a new year with a new ceo wouldnt charlie be smart to lower expectations now at the start of the year and at the start of his tenure . Wouldnt it be wiser to sendbag a little bit if and when they do that, use that as your entry point im not saying you will get 10 lower. It aint going up. One of the reasons that we sold well fas fargo. Everyone was looking forward all the questions were forward looking and forward thinking except wells wells, there was a very dramatic malaise, to me everything was about the past, digging out from past sins that made us think it will be worse than better. The company itself dug a deep hole for itself. They have no choice but to deal with all the ramifications of that they are still digging baird thinks its going to take longer to get back to solid ground good news is, they are not the first bank in history to have let down their sharehow olde olders, banks and customers. Others have done it. I dont think its hard to have a similar comeback if you are a shareholder, likely you have seen all of the ramifications. The question is, when do people get excited about investing in this company when they had issues many months ago, you were a buyer you said it then. I did not now not now i dont hate it here at all. I think the note is pretty much as everyone has said, exactly right. It takes a long time before this thing makes its up side move could happen right away. I could be wrong i think i have calls in jp morgan i love the management over at u. S. Bank corps. Jp morgan, jamie is a friend i love him i know to joshs point about too big to fail, my god, these guys its almost impossible to imagine a better run bank than jp morgan. The bets in the consumer space and energy jon has the trades coming up in unusual activity lets give you a check on the s p sectors. Stocks have been Holding Steady with the sizable gains today s p is up 10 points, call it 11. Thats a third of a percent. Its 3241. Tech and iusia andtrlsre leading the way. Halftime is back right after this welcome back spotting some unusual activity in shares of the Restaurant Company darden stock is up. Jon, what do you got theres a lot of unusual activity in darden as you can see, in september, shares were around 130 just recently, they were right around 120 now they are betting it goes back to 120, because thats what they were buying, february 120 calls with the stock right here, just over 110, pushing towards 111. What did i do . Went in here and bought these calls. Almost 9,000 have traded these were a cheap shot. Only about 40 cents. I will probably be in a month, month and a half really like the setup. What a cheap shot. 40 cents to control that 110 stock. Second trade, xle. This is, of course, the energy play people are betting that this one also goes higher im looking at a march trade here 6121 strike. I know those are weird numbers as far as you used to 60 or 65 6121. These traded for 1. 80 to 1. 95. Bought these 12,000 have traded love that action i will be in these probably for a month and a half to two months good stuff. Give me a comment on energy. This seems to be the place where you will get a battle as to whether its a good place to put your money or not. Pete and jon have done a great job talking about it i think the opportunity is in the refiners i mentioned that i think high yield debt, if you have the opportunity to allocate toertd towards that, thats where you find a high data exposure trade. One of these articles today, im not sure if it was in the journal or where, questioning whether big oil is the new tobacco in terms of the way that investors are going to view these companies. The laws that are changing and regulations and movements that are happening in various states across the country as to whether these stocks are going to be viewed differently in the years ahead. I think they are. I think they already have been viewed differently if you take the fact that oil prices were up 35 last year and exxon and chevron were flat, i think investors are looking at them and dinosaurs that arent going anywhere i think we need to be careful when we say energy to not be thinking that were saying oil energy doesnt mean just oil natural gas, gas liquids, wind, solar, everything. We need to expand the definition to get it right. The desk is ready to answer your questions in two minutes. 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Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Lets answer some of your questions. Spud 13567184, thats the twitter handle its a russian bot. Akr for 2020 staying with it. Cash on hand for private equity. Above a trillion dollars m and a will flow. If you think about what hedge funds, thats what private equity is becoming. What do you think about Virgin Galactic . Love it you know it. We did an unusual activity on it Morgan Stanley says this one could have almost that biotech sort of move in other words, fantastic to the upside but could be bad if something happens against them as it did a few years ago. Right now, it looks very strong. I like it. I think it goes over 14. Jenny, iron mountain, good long term . Absolutely. With an 8 dividend. Big yield. Thats consistent. They have grown the regular dividend every year. They should continue to grow it, trading at 14 times price to ffo. Its an indirect play on data centers. Its been consistent if you can grow that over time, 8 plus a little Capital Appreciation over the longterm, you will have a fantastic total return. Fred in new jersey wants to know about Canopy Growth. I own it. Its the worst stock i own it might be the worst stock on earth. It might have a comeback. After last years destruction in weed stocks, its the largest publically traded marijuana play or hemp play or whatever they call it, which is like being named the leper with the most fingers left congratulations on that. Here is why im staying with it. Constellation brantd brands in billion into this pig. They are sticking with it. The former cfo when are you getting to the point . A hugely successful consumer business, wine, beer, they make corona, they just i think installed their former cfo as the new ceo of Canopy Growth for me, thats a little vote of confidence, i guess. Stock went from 13 to 20 in the last week of the year for no reason its volatile. I will see what happens. I do not recommend anyone else do something as stupid as i did and take a flier in stocks like this good stuff. Two big upgrades to kick off the new year were back right after this. Im sorry. Tell us whats coming up on the exchange. No worries. I was hearing about canopy and marijuana stock. Im fascinated about that. Thank you very much. Stocks right now might be marching to new highs. Could this be the time to bank gains from a banner year last year we will look at that from the Stock Performance to social stances, walmarts o had a breakout year in 2019. Why this year could be even bigger for him if you are thinking about jumping into the housing market, you may want to do it now. Thats right, now. That and more ahead on the exchange. The Halftime Report is back after this youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. With unrivaled pricing, real time tracking ship skis delivers, hassle free. Ship ahead and go catch those first tracks on fresh snow. Ship skis. Your skis. Delivered. Its almost like a mywchallenge everyday to seeey. How well i can eat and still enjoy myself all day long. I wake up every morning to see how much weight ive lost and how much better i look. Myww join for free lose 10 lbs. On us. I am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Welcome back we are tracking a few other calls and some stocks that are making news today. Lets kick around a couple of stocks from the medical device area, jenny, medtronic upgraded at guggenheim abbott downgraded. You got both. We got both i think the call is half right, half wrong so the medtronic part, this is a pretty small position for us and its not a really, really High Conviction position. We think theres Earnings Growth of 7 to 8 a year for the next couple of years. Theyre the experts in medical devices for like spine, brain, that kind of stuff the abbott side, analysts keep thinking theyre not going to make the earnings that growth is going to slow. Right we think with the combination of celgene, we think a lot of analysts have this really wrong and earnings can really accelerate and its a nice home run next year. Joe, you own abbotttoo. I have ihi which has sig significant exposure to medtronic. Youve probably picked more medical device names than anybody on the show. Hes getting old, now, scott. Doing the show with you, im looking at your health. Allocate accordingly. Abbott labs, jenny, i think is a little bit more of an International Story as well. Good point. If you look at the exposure outside of the u. S. For s p 500 health care companies, its only 37 . Abbott has 66 revenue exposure outside of the u. S. , so it goes back to the top of the show, having that exposure beyond just the u. S. , abbott gives you that. Up next, tesla, price target on the street, 515 from 375 at canaccord. The trend toward electrification will only accelerate in the coming year. Now, there are some other best case price targets out there this is up there, 515. Yeah. You got out of your calls. Yeah, i did got out of half of them last week, scott, got out of the rest of them today. Im still in tesla stock itself and i have puts against it, much like the apple position i talked about top of the show. But i sold out all of these calls. The stock is up from 185 last may to 430 bucks a share. Ill stop you right there okay. You said at the top of the show, full circle here, you said at the top of the show that you were trimming some of your big performers. Yep. These stocks that have run a lot. Exactly. But youre Holding Tesla even though its run a lot. Because both tesla and apple, i still own those two stocks i own a put and ive paid for that by selling a call to the upside i only had call spreads and stock previous thats like naked long now im somewhat hedged to the downside i could experience maybe a 3 or 4 drawdown on the position, but i still love tesla going up. I think the squeeze continues. 427 right now, the stock is up 2 . 515 the way this stock moves, its not its obviously not all that far away. 420 seems so last year be sure to catch the analyst behind this tesla call on closing bell today at 3 00 p. M. Eastern time so hell give you the rundown on why hthkse in thats the upside there. Final trades are straight ahead. Welcome back highs of the day for stocks. Lets do some final trades josh brown, the what and the why. Teledop it is now challenging the september 2018 high in the mid80s. Well see what happens if we can get through this time. Im pretty bullish about the prospects for virtual medicine going forward. I think its a mega trending and this is the only publicly traded pure play. Jenny. Target resources. 9 yield this is in the natural gas liquid space theyre increasing ebitda, all of their ratios should improve next year. John najarian. Kmx, knight swift this is a transportation company, full truckloads and so forth, logistics as far as delivery a lot of upside activity and the 40 strike calls with the stock around 36 today so i bought it during the show. During the show. All right, joe. Wingstop. Ticker symbol wing, 30 revenue grower. Why are you looking at me i thought he was looking at me. Coo stemmed dopped down. Let me just stop you for a second when we had that list up there, who do you he had eye contact with me. Who do you think america thought was most likely picking that for their final trade tough but fair. Have you been to a wingstop and do you endorse it . You said goldman put it on its conviction buy list. Goldman sachs conviction buy list. They must have opened near me. Out on long island. Lets finish today nice being with you happy new year winner y wish you happy and healthy in the year ahead the dow is right at a 200point gain, 0. 75 of 1 happy new year to all of you as well the exchange starts now. Thanks, scott, happy new year to you and the gang as well welcome to the exchange. Im dominic chu. The record rally rolls on. Could this be the time to bank some of the profits from the last year . Plus call it the catchup trade. After a rough start to 2019, Energy Closes out the year with a big surge, but can that comeback last . And here come those gift returns. Berkshire doesnt put a ring on it and new year, new drug prices. Thats all ahead in rapi
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