Ready to go. Halftime report starts now. Welcome good to have you with us on this monday our Investment Committee is here with us. Chief Investment Officer at boston private wealth. Begin with stocks battling back heightened tensions in the middle east continue to drive trading. Watching gold, oil hit highest level. Weis, happy new year, havent heard from you in a few weeks. The question we have today, are the risks becoming too big to overcome this rally . I dont think so. I dont regard happening in iran as geopolitical risk a factor. Weve seen it so many times before markets have gone through it if oil has a sustained rally and moves higher, that will impact the economic picture particularly in europe i dont see that happening either were the large zest producer. We can measure demand to meet prices to me a bigger risk that just came out is bolton testifying in congress in the impeachment hearing. Youre reading news its literally just crossing the tape we might as well tell everybody about it since youre talking about it its on twitter, being reported by many he said if subpoenaed he would be willing to testify. Its out there since youre referencing it. The biggest risk to me continues to be what mark is not forecasting, which is a warren presidency or Bernie Sanders presidency absent that, i think were still on a nice path forward on the factors before valuation at some point will become an issue. But right now we continue to show by europes their manufacturing not really picking up steam as people hoped, the u. S. Is still the best market in the world. I dont see reasons to really go elsewhere. So i remain with pretty high exposure not really changing anything at all. You look at geopolitical tensions yes, they are racheted up. A oneday selloff. Today is not much of a selloff markets battled back you do have the question of valuation, though. As you get closer to earning season and start getting into earning season, youre going to have that front and center loud and clear. Either earnings are going to justify the valuations of stocks or they are not. I totally agree, scott. Theres two things going on here one is longer term than the other. The longer term is what youre talking about with earnings. Were expecting, depending on who you talk to, 7 to 9 earnings per share growth in s p 500. I said all along that requires cap ex to start picking up, which i expected in the conclusion of phase one u. S. China trade deal. Problem is i look at fridays ism number, and i am disappointed im getting a little worried im waiting too long for cap ex and manufacturing starting to pick up so to your point i need to hear in these Earnings Calls companies, i dont care what the Fourth Quarter is reported as, i need to hear they are on the balls of their feet and ready to look forward and start expanding again. Here is where the shortterm problem comes in youre right we know this we see the snap back today and a little bit on friday to the geopolitical risk, which is reminiscent of the oil attacks on saudi arabia. Thats what is expected. What is also expected, frankly, is more attacks. This isnt because im a military expert, its because ive had 51 years an ive seen this. Does this put a cap on the rally. Doesnt put a cap on it all it does is increase volatility it does increase volatility. You have to have dry powder when the attacks come to buy those dips like people on friday come. Ultimately what caps the rally is if you dont get cap ex expansion which is what im looking for in Fourth QuarterEarnings Call how is cap ex going. See, i look at the First Quarter as a gimme, a throwaway. I think youve got to see ramp up in second half. To me the runway is fine for the First Quarter. After the First Quarter you get the election, have to start seeing cap ex. Here is what tony dwyer is saying hold off adding exposure into recent strength before we had news out of the middle east and pullback to end last week. We have the market potential hit an air pocket as an unexpected event a risk to fundamental outlook. Kind of what were talking about. Ie volatility have a little bit of dry powder, okay you know i sold some roku the other day. I did by northrop grumman. I have like 7 cash. If theres a little pullback on what unfortunately is inevitable that theres fog to be a tax, thats where ill put it to work i hate saying that but there are going to be attacks. Shannon. I think if we go back and look at what we saw when there was escalation of north korea situation a couple of years ago, the market had much more concern around that particular situation than they do about the middle east, and i think that goes to the accommodative environment in which we sit you think about things that havent changed. The fed hasnt changed weve gotten a little progress in china strength in energy and defense companies. When weve been talking about this cyclical rotation, weve been talking about those names getting strength overall, as much as i would say that from a political perspective and from a country perspective, this would be a negative for us to engage in higher tensions in the middle east i think from a stock perspective i dont consider this being upending of momentum weve had over the course of the last few weeks. The market to cramers point this morning by virtue of the activity, it doesnt think theres fog to be some massive escalation of tensions that devolve into a fullfledged conflict. The market would be down more than what it was following last week. Prices certainly not reflective of what we read and watched over the weekend i would agree with jims assertion on that. I also think to tony dwyers point, hes referencing something not consensus at all coming into 2020 i think sentiment is where i personal begin i think of 2019, i think of a dramatic shift in sentiment. I think of the events of the last couple of days. I think about the moderation of what was a very bullish sentiment for equities walking into 2020. What do i do with that personally i know steven, you suggested maybe stay inside the u. S. For me i want to rebalance, i want to reallocate, i want to question myself and say did i have too much exposure to the u. S. Yes, maybe i did did i have too much exposure to financials to jimmys point on manufacturing, seeing the number we did, thats a reflection or reflected in lower yields. Thats a problem for net interest margins am i overexposed i look at today and the conversation weve had in the last couple of days. My Megacap Technology exposure its Apple Microsoft while in 2020, guess what, so far microsoft and apple underperforming relative to an amazon is it time to take those positions. If there are other areas of the market that look vulnerable, which ones are they . Semiconductors are down today. You bought the dip. Yes i had a position in semis, smash, sky works, qualcomm recently they are looking for a hockey stick return to semiconductor growth, particularly memory in the second half of 2020. Im so bulled up on the technological advances were going to see with 5g that youve got to be there. Now is the time. Thats true but you can also have the view i agree with everything you just said but the stocks have had such a run, smh has had such a good run. I think its fundamentals also. Both. Right. Is it vulnerable. In a sense never where stocks have come from, otherwise nobody would own apple. I get it. If you do believe a correction is imminent or theres going to be a burst in volatility because of whats happening in the middle east, that those are ground zero, so to speak, for areas that money would be pulled off the table quicker that others. Absolutely. I never equate volatility with risk, i equate with opportunity to sell or buy volatility is not risk but you manage different book than i do. I dont worry when stocks go down. Also semis. Ive said it before, they arent alike, beta of three, beta of one in intel the direction is going to go wait, i think the point youre making is the direction is going to be the same for all of them i agree. If you have new money to put to work today and youre worried about the things were talking about. Scott, you brought up valuation in regards to tony, geopolitical risk if youre worried about that, a smaller beta in intel. If you are hell bent for leather and you think its going to go higher by nvidia and intel. They will be three times shannon is right on the money. If youre worried about valuation and looking at Energy Stocks that have 3, 4, 5 dividend yields trade to value, what youre saying, thats an easy call as well. I wouldnt equate determining whether semiconductor exposure or other names last year i wouldnt equate whether we have to have risk off move. To joes point you could be seeing better opportunities outside of the United States particularly against this dollar environment were seeing, batch of stable dollar to do reallocation i dont think we have to call for risk off move to see reallocation out of names that performed really well over the last year. One of the big areas of risk, no the a big area, are airlines. If you see sustained moves in oil prices, they dont hedge anymore. That was a first area to see a pullback hours after the attack. So i recently added to united i havent changed, havent sold any based upon this. Im actually thinking of buying more try and book a flight. Ive booked some flights you cant get on them. The prices are out of sight. The airlines have gotten so efficient in pricing. How do we feel about small caps mike wilson with interesting commentary, small caps look vulnerable, too early with margin pressures is he right . Thats a tough call i dont know the answer to that in terms of equity class size, small, midcap, large, its very difficult to predict i will tell you fundamentally, scott, you still want to be allocated most towards large cap. That is where the momentum has been. Then your money is suggesting that he is right, if thats where you want your strategy. If you want to call him correct, well call him correct. Again, my assertion would be based on fundamentals right now youre pointed towards large cap. If you believe in a melt up which we were calling for just one week ago, then hes going to be wrong, because small cups, semiconductors, thats exactly where the market is going to pivot towards. I think the melt up has been somewhat postponed because youre seeing other places right now where the market is finding opportunity. Back to semis, nvidia. Why is nvidia higher because the money wasnt in nvidia if you look at ipos from 2019, they were abysmal. Nvidia had late move, not a consistent move through 2019. Where recently the money is going to nvidia. I agree on that. It wasnt through 2019 if you look at ipos from 2019, they are abysmal look at all the ipo names today, 4, 5, 6 higher. The market is reallocating and not looking so much at the melt up story from 2019 and trying to find opportunities elsewhere. More broadly he wouldnt be surprised to see a modest correction in the s p but weve talked a lot about liquidity and joe has certainly, it would be modest liquidity would keep any correction to less than 5 . Tony dwyer, mike wilson, quote tony dwyer saying, quote mike wilson, both guys have done well both are talking about history. What they are saying is the dip would be bought. I would im not fully invested, heavily invested like jimmy keep the pattern. I think theres a danger joe talked about microsoft and apple this year, they have underperformed this year. Were talking about not even a weeks full of trading days. Whats the difference . When im saying apple the best of the year actually. Steve, think about it this way. Im long apple, im long microsoft. You question yourself and say, okay, do i replace those two market cap behemoths with names that underperformed in 2019 like an alphabet like an amazon not saying im doing it but you have to give consideration to it i think the market early in the year is going to do that. If you look at fundamentals, they have different fundamentals. Im going to tell you what im looking at the most as were discussing this, sentiment Consumer Sentiment, ceo sentiment, Investor Sentiment. As long as those hold up, we can have fun with semis, small caps, airlines but if those sentiments break down, youre going to see people not flying, if Consumer Sentiment goes down, say in response to attacks that are unexpectedly large or frequent youre going to see flows dry up despite liquidity if you see Investor Sentiment come down and you see cap ex not appear if ceo sentiment comes down for me what are you going to do . Sit on your hands until you get a bead on that no. Thank you. Thank you for asking the question. Youre welcome. I love it those sentiments right now are on the uptrend, okay they are on the uptrend so watch them. Youve been in the business for a long time as we all have have you ever had a suss taped period of time, even sixmonth period, where middle east concerns werent a factor . The market ignores them and doesnt care i disagree. There are times, and i think you know this as well, like the lead into both of the iraq wars, gulf one and gulf two. Right. Those were serious conflicts. Those were deployments of hundreds of thousands of tlooro. Im not saying thats going to happen. No expectations that is going to happen. You are correct im answering his question. Thats coloring enough of your vision of strategy in the market no. Im answering his question his question was have i ever seen middle east tensions have a sustained impact on the market. None of those periods did by the way. Sixmonth opportunities. Look, they were a long time ago but they ended up being opportunities but six months of not so good ebit returns, Rising Oil Prices that impacted the economy. Scott, thank you again for bringing this up no, that is not my base case to the question of what would it take to knock sentiment down, something where were talking about drawing up reserves and sending them overseas. Lets deal with the here and now. We can deal with hypotheticals. He brought it up. Thats fine but were going to move on from that now, okay im going to talk about the banks because there are a number of interesting calls on the bank citi added to conviction buy list citi and Morgan Stanley downgraded at Deutsche Bank. Those are two to kick around bank of america overweight at barclays and wells down to equal weight over at barclays as well. Wells downgraded to a sell the last couple of weeks lets take citi. Conviction buy at goldman and downgraded at deutsche which call is better target is 81 at deutsche and target is 88 at goldman. 88 at deutsche, a little global inflation will benefit citi with significant exposure to the global economy. 88 was goldman conviction buy list 81 getting the firm straight. You do that, confusing enough. What do you think about citi i think this is a question given relative strength in financials coming to the end of the year and concerns about just where the yield curve is going, i think to joes point, i think that looking at these companies, company by company on more of a fundamental basis, you have to factor in the exposure outside of the u. S. Yield curve. Thats why names like jpmorgan have done well because they have a lot of in common revenue coming in. I think for citi, this is an execution story. So i think they have all of the tools to execute well against this environment but i think that there has been a lack of, you know, enthusiasm about the stock over the last couple of years because of the execution problem. We know on this particular desk owns citi. I do. Im sorry im just reading the sheet, jim says, jim, gs, Goldman Sachs. Talk about it all the time. What do you want to talk about, scott. Take it up with someone else. Citi, you believe in the call, conviction target 88. Its yield curve. If you think were on the precipice of a recession, i dont, you dont want to own these. I think were coming off of phase one. I think weve got at president who wants to see the economy do wellheading into an election the forces are aligned for the yield curve to be a little steeper and higher than it is right now. It benefits everybody. Why citi instead of jpmorgan it simply comes down the price to book is simply too low. Its too low. Here is what i want to do now. I want to mention a mike mayo call i want to get to a couple of down grades by mayo on region alwa regionales before wets to price those are interesting. Comerica, Deutsche Bank downgraded by mayo. One of the first financials i will further pare back allocations if they disappoint needs to be a little prove me story. The valuation has gotten rich. So mayo is right . That being said he is not right yet. That being said margins have remained strong. You would need to see a deterioration in the margins to be convinced hes right and for me to get out of my position. Is it time to reevaluate some of the regional banks im looking at taking a position, i hope it does sell off. Ancillary business so id be looking at that one. I think with the big cap banks, its sort of like you can pick any one and tradeoff the yield curve. Ive added to gold maj, an Analyst Meeting coming up David Soloman has done great things. Go through the division so analysts understand it that stock lagged, count them out ever so to me thats my financial choice. You know what, mayo has a positive outlook on all of the big banks you know hes talking about a golden age for banks. He thinks goldman in the near term he favors that the most. Citibank of America Jpmorgan have upside in three years for favorite names those stocks appreciate 50 . Once again, citi, bank of america, jpmorgan though favors goldman especially in the near term. I like the goldman call the best of those. Im not panning the others 50 is a provocative headline from our friend mike known for provocative headlines. Why couldnt that happen . Three years, 50 . 15 per year. Largely viewed as undervalued even given the run they have had. Im in citi and i can see it with citi. I know jpmorgan is creme de la creme of the industry it makes it harder to get there i like citi and Goldman Sachs. Thats why im in them Goldman Sachs was held back so long because of the 1 mdb scandal. Its sound like thats getting behind them. Not yet but getting behind them. Great franchise, capital markets, Investment Banking are crown jewels i think goldman and citi both on valuation goldman is close to book value still those are the two top particulars. You own jpmorgan. I do. I think its a great stock i want to point out what jim said i think jpmorgan has done a great job on management business and Goldman Sachs with the recent purchase of united captain being able to expand the reach of their Wealth Management business, i actually think that could afford greater upside despite the fact jpmorgan is sophisticated silver going to be the highest quality stock in that particular basket. I just dont think you can really at this point, other than public persona distinguish between Brian Monahan and jamie dimon in terms of excellence of running a back they are both excellent. To me bank of america is dark horse without that high visibility jpmorgan has. You go back ten years ago banks routinely traded 1. 4, 1. 6 times book im not talking about jpmorgan going into deluge just straight Money Center Banks i look at stock value and say this is 40 under value. Particularly you point out nonu. S. Markets. I think thats why you can make the argument about regionals versus large banks so much greater tied to the yield curve. I think thats why youre seeing that downgrade now because of the uncertainty where the yield curve is going. Trading revenue should be strong on banks maintained overweight allocation to financials, i maintain that going forward. Jimmy i think banks go up 50 . Next five years, jpmorgan, trillion dollar market cap. The other call youve got today, not so much a call but Deutsche Bank put out a list of 38 stocks, most of the ones they like for fresh money list. Youre betting fresh money to work since were talking soft financials we can continue american express, goldman is on their list and store capital, joe owns, original josh brown name you still own that i do. I know josh added to that, pulled back secondary offering good time to get into the name i maintain ownership. Gm on industrial list, delta air lines, theres a bunch im not going to read every, gm, fortune, delta, baker hughes. Yeah, a good smattering of value stocks in there. If i look at auto sector, i said last week 2013 saying 17 a million a year for the last four years. Thats not a peak where we fell off a cliff, a peak we stepped down to a nice, high plateau these guys are making a lot of money. Everyone sees impact of tesla, electric vehicles and Autonomous Vehicles but these guys, all of them, are making money foreseeable future and valuations so attractive. Tm 2. Tech media tell confacebook, micron, viacom, cbs, among others like way fair, names we dont talk about. I bought micron, i added to micron look, youve got three manufacturers there. If you look, and you should look at the press coming out, digiti times. In asia youre seeing they are increasing pricing and not increasing production. Thats panacea. Pulled back to 99, on a name of pullback to add to great longterm play. Royal caribbean, they have a sell on Dominos Pizza by the way. General mills in terms of consumer, monster beverage, wholesale, eldorado resorts. Obscure names. We dont talk about a lot of them obvious maybe thats where the value lies and maybe we should talk more often. We think given the changing lifestyle, the seeking of experiences, i think that cruises offer that and Royal Caribbean has done a great job managing capacity to continue to drive profitability. Well take a break. Whats up next on halftime report. Betting on the cloud. Sales force top pick at rbc. One of our experts owns the stock. Well debate it in call of the day. Plus the Investment Committee is ready to answer your question and ask halftime to reach us go to cnbc halftime or tweet us. Halftime report with scott wapner and the traders is back in two minutes our Retirement Plan with voya gives us confidence. So we can spend a bit today, knowing were prepared for tomorrow. Wow, do you think you overdid it maybe . Overdid what . Well planned, well invested, well protected. Voya. Be confident to and through retirement. Some things are too important to do yourself. 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. All right. Sales force rallying after rbc raised price targets, a new street high, upgrading Software Company to top pick. From outperform call of the day, shannon, you own it. They say we see significant upside potential, meaningful margin expansion, which will unlock share appreciation. Yeah. I mean, i think sales force has been focused over the last several years in several key acquisitions to help monday ties and use Data Analytics weve already seen that p kind of core user of the crm. They are really trying to make sure as they bring more and more customers onto their platform they are able to better use that data and turn that into Better Service and sales for the core business this is still a top name for us, very High Conviction despite valuation. I like the call here. Otherwise no one else owns it. Microsoft adobe, microsoft adobe. They do in the know talk about microsoft as being the more disruptive competitor in that space. For me its a question of how much beta can i own in the portfolio in the same space, so im sticking with portfolio construction so i stick with adobe, got too big. Stock had nice bounceback in microsofts core holding so i love to me this is perfect esg holding. Esg is the biggest investment, i dont know if you call it discipline, that we see in the market state. You see that because of exactly they have gone to fairness across the board hes been extraordinary. The ceo. Big performer microsoft and adobe, performance is half at least of what the others are is that where the opportunity lies i think thats kudos for shannon to be in the name. Ive totally missed this one price momentum has a way of getting the investors attention. Sales force began the year trading at 142 october 23rd, sales force was 142, the same place. It did nothing for the better part of literally 11 months. Now youre witnessing finally strong earnings, hearing about the integration of tableau, reaching targets in 2021 now here it is, front and center on everyones radar. Its a name im going to look at we give consideration to it. We had forgotten about it. One question and concern, talk about the phenomenal ceo, hes been a serial acquirer thats been a little bit of a problem for the company. Thais going to pause. The tableau acquisition was expensive. We looked at it prior to the acquisition and felt it was expensive and felt they paid a premium to buy that. Certainly there needs to be a monetization but i think its queued up to do so. Are they going to stop making big acquisitions i dont think so. If they are expecting the pace over the last few years it can slow incrementally, their share of that part of the business and the fact Companies Across the business, across specters need to have better management of their data, i still think theres a huge opportunity here. Lets jump over to sue herera and get the headlines. Hi, sue. Hello, scott. Hello, everyone. Here is whats happening this hour former National Security adviser john bolton said if hes subpoenaed he is prepared to testify. Bolton who left the white house in september said he has weighed the issues of executive privilege and after careful consideration would, indeed, comply with the senate subpoena. Court has been adjourned in the Harvey Weinstein trial jury selection will begin tomorrow morning weinstein accused of Sexual Assault has pleaded not guilty to charges earlier weinstein accuser Rosanna Arquette speaks out. As one of the silence breakers i standard in solidarity against brave survivors standing against Harvey Weinstein in this trial i join the other women also harmed by Harvey Weinstein to say we havent going anywhere. In sports news the Dallas Cowboys have hired Mike Mccarthy to be this next head coach the long time Green Bay Packers coach won a super bowl with the packers. He did not coach this year after being fired 12 games into the 2017 season. You are up to date thats the news update this hour scott, back to you. Sue, thank you. Transport on pace for worst day in a month the edge on finding opportunities in that space through etf. On power lunch julia rsr o boorstin sits down with Gwyneth Paltrow at 2 30 today. Halftime is back after this. 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. The unparalleled landscape of park city, or the famed peaks of whistler, 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. I can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Princely life on other peoples millions im bob pisani, time for etf edge as Trading Community returns in force what etf sectors are likely to outperform in 2020 joining us founder and ceo of astoria portfolio managers, head of ishares, largest etf provider in the world. The man in charge is with us john, were looking at weakness in the transports today. Notable weakness in transports, bernstein downgraded j. B. Hunt and threats about a slowdown in trucking business. We see some of those big names down, j. B. Hunt and logistic names like land star yet youre very big on commodities which they transport in 2020 you think commodities are going to be up can you explain why . I think they are cheap. Its a play on inflation on days like friday and today. What happened stocks go down, oil goes up, gold goes up, nice diversifier to have. You run ishares, biggest china, great year after years of underperforming, up about 30 last year. Did you see inflows investors interest in china now that theres a little more clarity on the trade front. Theres interest in china its always a good play to have china in your portfolio. That said for 2020 i would pivot to emerging markets. Theres more room for growth with pick up in growth global. You have the benefit of availability to make changes in monetary policy. They still have room to move, especially emerging markets. Why do you think emerging markets will do better currently an Interest Rate play, dollar a bit weaker . Whats the primary rational. A couple of things. We do believe a pick up in Global Growth first half of 2020 we do think markets, emerging markets have room to lower rates. They will benefit from a more stable trading environment from the back of what we saw last year. China, mch. Is one of your top picks for 2020 as well do you share his ideas. I do. For em to work china has to work youre looking at 20 eps. Klein injecting liquidity, we use mchi. Thats the broadest china, hong kong stocks, stocks that trade here in the u. S. Like alibaba behind me as well as Mainland China stock thats why theres so much interest, a broad mover for etf business in china. So where do we go from here . Do you think there is a broad multiyear move in china weve seen emerging markets underperform for many, many years now, john. Do you think its time for emerging markets in general to perform. I think on multiyear basis you have more upside overseas than here in the u. S. The trade of the decade has been large cap, u. S. Stocks, large cap growth ultimately capital gets allocated to look for the highest return per unit of risk. I think theres a lot of risk in the u. S. Large cap Growth Market id look overseas investing multiyear. A call for 2010s, lets put more money into europe, emargining markets we had a debate last year, we didnt see money movement, nobody put money in esg. Is there time china emerging markets are getting more money flow. Youre beginning to see more money flowing into emerging markets. That began last year the other market we havent mentioned is japan i dont know what you think, john, thats another market well see a benefit in pick up in growth and more stable trading n and more investing in growth and manufacturing. China, of course, a big supplier of commodities. Im curious because you really bucked the trend that commodities are going to do better for the next several years. China obviously would be an impact on that is that part of the story . Partially i think alibaba more domestic plays, consumer discretionary, those two stocks make up 30 of mchi if you get uptick in global trade manufacturing china will do well. Finally modest impact this would have been 15 years ago, the event would have happened with iran 15 years ago, oil up 10, 15 very different world, correct . 70 a barrel, key level again, home commodities. Any sort of conflict commodities go up, so positive skew is what they call it. Thanks, guys. John and armando a pleasure talking to you for more etf sit tight our live online show stars 1 00 eastern time sharp, the edge cnbc talk esg, environmental, social governance with luke oliver for dws group. Back to you. Coming up, answer your questions on zoom video, anthem, crown castle and more straight 1 2 in ask halftime in just 30 seconds. Lets answer some of your questions. Joe, you get the first one from san francisco. Zoom media, is it a buy at its current price . Yes, it is. It had 85 Revenue Growth in its latest earnings. That got the stock going found a little bottom around 62 after that Earnings Report in early december pushing towards 70 right now ive talked about this name in the last several weeks ive taken a small position in it i like it, one of my favorite names. Up next rollinger in oshkosh, wisconsin for jimmy. Greenbrier, how is it going to do i really like 2020 for greenbrier look, this is a stock that got held back by trade tensions. You saw railcar loadings do way down this Company Makes an refurbishes railcars not good trading of tensions, brexit should come and go lets say trade tensions get worse. The valuation is so for giving theres an asymmetric risk for upside one of my core holds for this year. Trade seems so last year. Lets keep it last year. I hope. Adam in atlanta for shannon on anthem, is it the bottom end and are we going to see an upward trajectory. We believe so. We have a price target on the stock of 350 or so. I think if you look at the risk of the stock right now probably inherent in 2020 election scenario but we think they can continue to grow eps 10 to 15 they are insourcing pbm business which should provide efficiencies we like the stock and its one of the higher names in the space. Thank you for the answer. Ste steve weisz, how about crown castle. Im still there, havent sold any. You cant get away from a couple of things, yield proxy volatility not risk just trade limit. The other issue is, one positive, one negative 5g is deployed, deployed not in big towers but in apparatuses that are small as a suit case. However, they scarcely affect, cloud traffic continues to increase thats good for crown castle they own the rightofway and have the political local connections where you just cant avoid going through them so i think its going to be a great stock. Good stuff. Thanks for the questions as always coming up, straight ahead Home Builders, they have surged 35 lynn ar, best day in months. Brian sullivan tells us whats on the exchange. Thank you very much war of words between u. S. And iran heating up. The question is what actions might come next. Well take a look. Teflon market, you guys on halftime have been hitting it. Why arent stocks seeing bigger moves . What would it really take to rattle investors this, stock soaring 20 . The company sinking its teeth into the americas biggest retailer the name and why its viging stocks a big boost more on the halftime exchange. More after this. Thats why fidelity leads the industry in value while our competition continues to talk. 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Act now, and get 1 year free of wifi pro. Call today. Comcast business. Beyond fast. Were back Home Builders lennar and kb home expect to report earnings, the construction etf coming off a big year and nearly 50 gain and seventh positive lennar up on wednesday this is what cramer said of the industry, Home Builders dont get enough respect, lennar incredibly well run, margin expansion, i think its in great position now yada, yada. Jim is correct, it doesnt get enough respect i havent respected it what i missed products commodities so constrained in terms of land of 200 that the daemsd there, margins there, i hope for a major correction because i dont think that stops any time soon its up 40 over a year kb home is up 72 hortons up 47 hsb, 35. Itbs, 43 and pulte, performed, lower rates, about full employment, about paper asset wealth thats been created it aeps about strong comps, incredibly good comps in the second half of 2019 that rolls forward into the first half of 2020 you still like the Materials Companies better yes its been the Second Derivative trade, and were kind of late in that comp story. In the second half of 2020, the comps for the lennars are going to get more difficult. Thats why i like to be in the Second Derivative. Im in masco, i was in fortune brand home and security. Surat, a favorite name of his, i got out too quick. That was the better trade versus masco. You could look at whirlpool, or ticker somebody door, d. O. O. R. Ever court has upgraded horton and downgraded toll among other names. Tolls been challenged just with the properties that theyve been building. You know, from as far as trying to hit that kind of middle of the road, you know, not too nice, you know, giving some, you know, some you know, bells and whistles to the properties but arent overpriced. I think tolls been hit hard by that i think from an overall demographic trend, whether youre looking at investing in homebuilders in the Public Sector or the private sector through debt on singlefamily rentals or Something Like that, i think that theres going to continue to be a lot of momentum over the next year or so in this space. I think that you can play it a myriad of different ways because i think the supply is still lower than it needs to be, particularly in those areas where people are moving off the coast and into those secondary markets. Theyre going to stay there this time because theyre seeking lifestyle. So we think this is a good trade overall across the board this is essentially throwing in the towel on toll the stocks been a dud dramatically outperformed everybody else its only up 17 by far the worst of the group. The question is, is the risk now, you know, rewarding because its underperformed, or is it too high because its been such a dramatic underperformer . You look at it both ways such a favorable fundamental environment. So i look at it that way its to me, theres sustainability in a story when theres a favorable fundamental environment and a stock can outperform i dont buy a stock because its underperformed and i especially dont buy a stock because its underperformed in an environment that it should have performed. Thats kind of my point, too. The other ones, not only have they performed, they performed really well. This one has stunk, and its been a real stinker. You know, heres my observation when that happened they are high end which has hurt them the high end is more sensitive to the salt deduction than the lower end. I think thats given people pause as to where theyre living and where theyre buying their more expensive homes all right well take a quick break so what are you working on . Im searching for info on options trading, and look, it feels like im just wasting time. Wasted time is wasted opportunity. Exactly. Thats why Td Ameritrade designed a firstofitskind, personalized education center. See, you just oh, this is easy. Yeah, and thats oh, just what i need. Courses on options trading, webcasts, tutorials. Yeah. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well exactly. Well except now, youre binge learning. Oh, i like that. Thank you, i just came up with that. Youre funny. 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Were back, a couple of orders of business you talked about wing stop last week yes and i said, well, you dont own it, you didnt buy it. You said no. But now you did. Yeah, i bought it after the show on friday im in the name i think i mentioned, its on the Goldman Sachs buy list i like the growth. Charlie morrison, the ceo, is doing a fantastic job using technology, transforming the company, delivering chicken across the country, across the world. Theyre in multiple countries. Eventually theyll end up in china. Great story. Okay. And alphabet, new high look, this is not a scientific statement but i noticed for 18, 20 months, it was doing nothing. We were like whats wrong with google two months ago it broke out to a new high it seems like it just every day sets a new high. I love this. A quiet new high every day do it. I love this stock, too. Give me a final trade my final trade is baba im going to sell my trading position and keep my core position good stuff. Still like home depot hd. Via comcbs. That was on the list we talked about earlier reiterate sun corps which we talked about last week we continue to see the market come off the lows of the day. Dow down 50 or thereabouts thats it for us the exchange starts now. Yes it does. Thank you. Welcome to the exchange. I am brian sullivan. Heres whats on top the u. S. And iran battling out in a war of words with both countries making big threats will the war of words become a war of war well look at the most likely scenarios. The market seems to think it will stay just talk, maybe call this the teflon market no matter how tense the geopolitical situation is getting, investors, they dont seem phased. Were going to explore why and holy schnitzel could europe be the best moneymaking opportunity in the world right now . Thats ahead rapid fire, as well