What is behind this a rally . Can it continue . Good morning, gentlemen. Paul, ill start with you. Valuations getting stretched here im a little bit worried about the valuations in tech, and ive been at this game a long, long time. Fundamentals are okay. Fundamentals might even be accelerating a tad from last year but when you take a look at the valuations of some of the marquee names that you mentioned in the teaser, particularly tesla and apple, im worried interesting okay joel, how about you . Given some of the names we just mentioned, in your coverage universe, what do you like the most at these levels good morning. Thanks for having me on. Obviously with tech you want to be a lot more selective and who the winners and losers are going to be. I think apple is to the upside, but 13 times to 24 times the span of 12 months is getting a little rich. I think the 5g hype could get a little ahead of itself, especially 5g as a utility is limited in the foreseeable future i look for names in the large cap leadership like alphabet, salesforce. Com has underperformed parts of 2019 i think youll see a mix fundamentals are solid but were still in the midst of the Fourth Industrial Revolution and tech is at the forefront. Paul, how much do you think google cloud matters to alphabets valuation from here you know, as we go through time, i think its going to matter more, and it looks under its most recent leadership that the company is finally putting some pretty aggressive sales and marketing behind it. You know, right now its not that big as long as they continue to gain some share, i think in future years theyll have to gain more shares to keep the valuation going. But as of now, we do know that aws is huge and theyre still about two times the size of everybody else, and microsoft i expect to be the biggest share gainer in that cloud space, at least in 2020. Paul, today Credit Suisse goes to 180 on microsoft, they see cloud revenue going to 100 billion in five ears explain to viewers who has pole position in cloud and do you see that changing over the next say two years . I think what happens is in this particular space within technology that the strong get stronger so as we go through time, i expect aws to continue to lose share but because they were the pioneer in the space they have a lot of share to give its a weshgs section, its microsoft, its google, not necessarily today but form, and also, believe it or not, on the worldwide stage, its alibaba. Those companies will continue to take share for some of the yesteryear, 80s, 90s styles like oracle. You have this big feature story in the wall street journal about googles ongoing push into health care as well. How big is the opportunity there . In terms of the different Tech Companies that are pushing into it, whos in the lead . Yeah, i mean, theres no secret apple is apple and tim cook made a big push and focus on health care as part of some of their surveillances. Google will be at the forefront as well. We know the leaders in china have done similar. Under the hood, i look at a name like nuance. They spin out their Auto Division back on october 1st theyre pretty much a pure play on Health Care Trends and theyve chosen some really good momentum heading into 2020 nuance is a midcap name which i love and expect it to continue i think Morgan Stanley upgraded them this morning. Under the hood you want midcap names that still have legs to go this their trade and nuance sticks out to me joel, lets say youre queasy about tech at these heights but you still like it. Where do you hide . What stable, perhaps not super high growth, but something you think if things turn down it will turn down less or even continue to hold up stockwise . Yeah. Names with more defensive characteristics. For 5g, thats a theme thats been prevalent the last 12 months look to the testing side of things a company out tf tof the uk this morning had an uptick. You have to towers as well more 5g devices lead to more data usage leading to site identification so names like american tower, sbac, crown castle, those are names you can sleep at night as far as cloud, largecap tech, paul mentioned microsoft if you want to sleep well at night, microsoft is a core holding for the next decadeplus. Easy as that paul, just looking at your Portfolio Holdings here, its a mix of internet and semiconductors and hardware. Have the best gains already been had in semis given the year we just had semiconductors have been huge, but i actually think if i peel back the onion within technology and even though i am queasy about the valuations overall in the sector, i do think theres some upside in not all the Semiconductor Names but a kascattered few, specifically Micron Technology and Applied Materials have a lot of upside also look at lam research and Taiwan Semiconductor they should be, particularly as we roll out 5g infrastructure, good names for a number of years. Does the space want a deal with china that is poised to get inked on wednesday, does that do anything to add to the bold case for tech, paul i think its much to do about nothing. The key will be what comes over time with phase two and later dealings with the chinese pertaining to the purported theft of u. S. I. T. , intellectual property as far as whats going on in phase one maybe gives, some signs we can expect to have a better relationship with the chinese. Maybe phase one does lead to phase two with some certainty now. But as far as whats going to be inked this week, its really not a big deal joel, same question to you before we wrap up. Paul mentioned micron within tech as well im in the Campaign Finance reform the bulk of the chinese noise is kind of in the rear view and with trump needing to focus on the election, hopefully that noise pulls back a little bit. Within the semiconductor world, western dig, memory prices are inflicting a lot quicker than people expected. And the semi caps, the dealers for 5g and ai ramping up and china will continue to focus on being a lot less dependent o western silicon. The equipment guys are to supply the gear the arms dealers. All right. Gentlemen, thanks for joining us today, joel and paul take care thank you when we return, the one and only kara swisher joins us at post 9 and a reminder, you can always watch us live on the go on the cnbc app. Download it today. And meanwhile, dont go anywhere quk le rur itwo. 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. Learn fast with the Td Ameritrade education center. Call 8662967451 or visit tdameritrade. Com learn. Get started today, and for a limited time, get up to 800 when you open and fund an account. Thats 8662967451, or tdameritrade. Com learn. 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. A very special moment. Elon musk over the weekend tweeting, teasing a talking tesla, and during whats been an unbelievable runup for the stock in recent weeks, doubling in the last three months, the highest valued automaker in the country, up over 2 , 5 today, crossing the 500 mark earlier kara swisher is with us at post 9 to talk about whats going on at Tesla Bob Lutz has turned. Oppenheimer goes to 612. Are you shaking your head . Theres a lot of momentum because hes gotten past the problems he had and theres a natural recovery period. Working on the batteries, the truck, an exciting rollout hes nothing if not a showman and what hes doing is directionally so correct and hes so far ahead of everyone else in terms of sort of like netflix kind of around the track, way past other e people i think there is sort of an enthusiasm what do you want to invest in in this area . You can buy a big piece of ford or mercedesbenz, but none of them are sort of breaking out the way he does every day, essentially. I think some of the crazy stuff seems to be behind him, so thats always good you think its legit and deserved you know, economics are still the economics. You just look at the numbers its like looking at uber and anything else. It doesnt pencil out when you look at it the shish is how well can we execute and get those cars made and maybe get help i always think someone will come in and help them take it to the next level hes always one of those people, on the razor edge of breaking out or falling off he talked about it in our podcast last year, that idea of like hes got to push it through. He makes everything dramatic but i think its an exciting story and wall street likes that china manufacturing seems like the big thing, the game changer. Its hard to do. Hes doing it. There are some measurable benchmarks, said to be a downfall, hitting that line. Yes, it is. Hes good at math, by the way. So i dont know hes also good at dreaming so that has downsides do you think this changes is way weve got to measure elon mus snk is he starting to move into that applelike category of perhaps changing the Business Model of autos yoeb more vertically integrated . Potential for profit is higher but he has to sell and make a lot more cars. Its all about scale all the time you could be seeing a jobslike story here he is the natural inheriter of jobs gates is the inheriter of gates, not quite as dramatic. But you could see that, yes. You could see him do that. Its the issue of making more cars its hard to make cars theres always kinds of players in his way when youre making a physical object. But he keeps delighting people with things like talking cars. Cool you dont say that about anybody else even if he deploys it, eve an karaoke thing or this or that, there are dozens of these findings and that was a stev jobs regular hed always pop out and the next thing, one more thing. This whole idea of talking teslas goes back towards this idea of, a, a selfautomated robo taxi fleet, and if youre an investor, the debate seems to be with tesla as the valuation continues to expand here, is this an auto company or is this a tech company auto company. An auto company. Whats the joke that the cars are the original mobile device, you know what i mean all Car Companies are Tech Companies but the making of them is a an an log, very difficult, regulations are still not clear on automation across the globe either so its a very difficult business, which means he can succeed so money doesnt necessarily mean success or a lot of capital you need a lot of capital, but at the same time just because youre ford doesnt mean youre going to win just because youre mercedesbenz you may not have the capabilities in software the marriage of the two has to come together. Years ago one of the top uber executives said to me that making a car was trivial i was like youre an idiot its a difficult p endeavor. If you can figure ot the analog and the creativity and the software, its difficult hes managing to pull it off again, with these kind of things, whether he has the truck, even if he throws a baseball, whatever, through what did he throw, a grapefruit . A steel ball. Steel ball. You know, its fun and kind of funny and he takes it in sprid. Stri Larry Allison looking like an oracle putting a billion dollars into this before it sank and now its above put a billion dollars in does he care . Hes probably got one in his drawer like isnt he one of the richest people on earth . I dont know but its smart i ran into one of his Board Members and they were pretty happy with where elon was going after a very rocky period. While were talking ellison, pompeo, the secretary of state, is in San Francisco today planning to hold a private dinner later tonight with several tech leaders including ellison and venture capitalist mark andreassen. Whats going on here tech is continuing to have these sideways relationships with the Trump Administration. It makes sense all kinds of issues that the secretary of state has to deal with it makes sense pompeo is essentially running the Defense Department it feels like or seems to be the top adviser to the president it makes sense for ellison and others i think open door is there, you know, they have to sort of start to have discussions. I think it will be funny because Larry Ellison doesnt care what anybody thinks and hell say what he thinks he often surprises you what side of the aisle hes on hes often on different sides with different issues. Cloud adoption and the conversation weve had on this set will be in the forefront but also cybersecurity, especially with everything with iran. Probably china. I would imagine lots of issues theres tons of issues i think what happened in iran will probably be an issue, how we keep markets stable and Government Investment probably and regulation Digital Service taxes and antitrust domestically theres a ton. Or just maybe architecture. He loves architecture. One time i had a whole meeting with him about Coconut Water and i wanted to talk about something else, but he loves Coconut Water. Fascinating. Why is Mark Andreessen so quiet lately i dont know. Ive heard different things. I think he just doesnt feel like talking mark goes into those phases. I think he is quietly ben horowitz, his partner, is talking a lot. Mark is like that. You know that. He just goes in and out. Hell come back when he has something to say we miss him, at least on social do you . One of the great accounts kara, good to see you. Thank you have a good week. Kara swisher all the major averages back in the green led in part by tech stocks the dow is up 61 points, near session highs, and the s p 500 is up about 0. 40 . Make fitness routine with pure protein. High protein low sugar tastes great high protein low sugar so good high protein low sugar mmmm, birthday cake and try pure protein delicious protein shakes when i see obstacles, i create opportunities. soft music when i see adversity, i find a way. When i hear never, i say now. [announcer] Southern New Hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. cheering so when i face barriers, i can break through. [announcer] breakthrough at snhu. Edu. Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. European market is going to close in a few moments seema mody has a breakdown earnings season doesnt start till next week stocks moving loewer the exception of the uk, where we are seeing the pound come under pressure weaker than expected data out of the uk, including a decline in november gdp, manufacturing and Industrial Production falling more than 1 thats increasing expectations that the bank of england will cut rates. If they do, that will be the First Time Since 2016. Auto is one of the worst performing sectors the New York Times say senior managers at nissan have sped up discussions over a potential split. Aston martin reversing gains from friday even as a variety of companies are reported in working together a story worth watching this week, we are awaiting a decision from the uk and germany on whether they will allow firms to use equipment from Chinas Huawei the German Government was divided late last year as companies warn lawmakers shutting out huawei could delay 5g networks for years. Theyll meet today ahead of the decision the u. S. Has warned both countries what it sees as a big risk of using huaweis commit m. Back to you. Big story for this year, seema. Thanks after the break, my sitdown with the head of google cloud how Thomas Kurian and rivals are pitching retailers to upend amazon make fitness routine with pure protein. High protein low sugar tastes great high protein low sugar so good high protein low sugar mmmm, birthday cake and try pure protein delicious protein shakes 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 while our competition continues to talk. Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Welcome back, everybody. Im sue herera heres your cnbc news update at this hour. The Trump Administration is planning to permanently halt its civilian Drone Program because the devices are made at least in part in china. Thats according to a report in the financial times. The interior department is said to be considering halting about 1,000 drones after deciding the risk of those drones being used by beijing for spying was too high Warner Brothers joker leading the pack with 11 Oscar Nominations today including best picture and best actor for joaquin phoenix. Netflix titles picked up 24 nominations including for the irishman. A sixalarm fire at an apartment construction site in new jersey spread to at least five other buildings and it forced more than 100 residents to evacuate and it shut down power to half of that town and former Dallas Cowboys and Miami Dolphins head coach Jimmy Johnson has been elected to the pro football hall of fame he was emotional when surprised with that news on the fox halftime telecast yesterday. The full list of inductees will be revealed a bit later this week it is a big football week too. That is the news update this hour jon, back to you sue, thank you. No matter the industry or sector, Cloud Computing is a top concern for tech leaders according to our most recent survey of the cnbc Technology Executive council. That council is made up of nearly 150 tech decisionmakers from some of the Worlds Largest companies and organizations. More than 70 of members who responded to the survey last month told us cloud is critically important to their companys tech strategy in 2020. Machine learning was a distant second and less than half said Artificial Intelligence more broadly is critically important to their companies this year speaking of cloud, i sat down exclusively with the ceo of google cloud earlier this morning, Thomas Kurian hes here in new york city to speak at the National Retail federations annual big show Cloud Companies like google and microsoft making their pitch to retailers who are reluctant to give their Cloud Business to their biggest competitor, amazon kurian spoke about market share within the cloud i asked him whether google can climb to number one or two in cloud in the next five years take a listen. A very strong start to winning large customers in a number of other industries, not just retail, butfinancial services, telecommunications, et cetera. Just as an example, at retail, 7 of the 10 largest retailers in the world are customers of google cloud so were very confident in the progress weve made. The being number one or number two a goal . Of course how should that be measured everybody seems to measure what gets defined as cloud revenue a little bit differently, especially legacy players like your ibms, oracles, where you used to be how do you think investors should be keeping score . You know, were very early in this cloud transformation. What cloud will look like five years from now is not what cloud looks like today and what cloud looks like today is not the way it looked like ten years ago as an example, if you went back to 2000, 2005, and asked people whats cloud, they would say, well it doesnt exist. It did exist sales force, enjoy, a number of companies there. 2006 to 2015, 2016, was really about infrastructure put your stock in my data center i can run it cheaper for you its mostly about efficiency, cost optimization. Where we see cloud going in the future is about differentiating capability how do you help a retailer reach customers better, a market market better . And delivering unique solutions for Different Industries we see that as a big future for cloud and we see google having a number of advantages because we understand consumers and we can use our ai Machine Learning advantages there to deliver Solutions Others cant i also asked kurian about leadership change at google, particularly larry page step back from the ceo role and operating role at the company, also what sindars expanded role at the Company Means for cloud sindar has been our executive ceo in charge. It was a Natural Evolution of our organization they continue to be involved as technical advisers to us and have great product ideas they share with us. What about customers who might be wondering about the core highlevel commitment to becoming a True Enterprise organization does that intensify with this move or is it surely, you must have been asking these questions more than a year ago when you were figuring out whether this was a place you wanted to land i would not have joined goog fl there was not a deepseated commitment all the way from the top of the organization to being a great Enterprise Company weve made a lot of steps this last year and continue to remain focused on that going forward. Finally, we talked data, specifically concerns over how Companies Like google utilize it and share it if they get the cloud data, are they going to use it to target advertising take a listen to kurians a answer our goal is to allow customers to using their data securely using our technology to become more efficient as retailers and trusting that google will not use their data in any way a similar question, with google, some people worry that google will use the cloud data and mingle it in a way to target advertising eventually to consumers. Whats your message to people who are concerned about that specifically when it comes to things like health so, very specifically, when you put data in a cloud, your data is your data. Google provilds you technology to understand the data and use it in new ways we absolutely do not use it for any other purpose than delivering you that capability and not only that, we commit to that the contractually its written in the contract we asked him what happens to margins when hes scaling up the sales force the way he is. He plans to triple it within the next couple of years amazon also said theyre investing heavily in sales force. You can bet microsoft is too does do the margins get squeezed as they look for better times down the road when somebody gets pushed out he said they are investing in the long term. Sounds like they do get squeezed interesting that you sat down with him at this conference, which is very telling in and of itself, at a time so many retailers are expected about the other big player in cloud, amazon it seems like its an opportunity for google to come and make its presence known. Satya nadella was speaking last night making a similar pitch. I talked to thomas also about what he thinks is going to matter over the next few years as he plans to gain share. He is talking about big customer wins he thinks thats whats going to move the needle. Look for one of those badges to come with. Thats the enterprise playbook look who we got, a big player, you ought to do it too microsoft is riding high post jedi highprofile customer wins. Good for the enterprise and by extension to consumers, you know could well be all right great stuff, jon speaking of another name, netflix shares up almost 3 . Julia has more of that morgan, thats right. More no, maam nax nominations from the academy than ever before 24 for netflix in total. Thats up from 15 nominations l. A. Year. Next is in line was disney, which grabbed 22 nominations, including its fox search Light Division netflixs biggest winner today, the irishman, drawing ten nominations including best picture. Its Marriage Story also winning. The question is whether netflix will lose out to a traditional studio for the top best picture award as it did last year when roma drew a ton of nominations and awards but did not win best pictures the other leading contenders, the joker with 11 nominations, and once upon a time in hollywood and 1917 drew ten nominations each, including best picture. Netflix will use all these nominations to promote its service, try to draw subscribers and hold onto them back to you. Nominations for the obamas and looks like were going to get another year of oscars so white outrage, julia yes a lot of backlash already. This is a year there were no female nominees for director, even though greta was considered going to be a shooin to be nominated for best director for little women. She was not. Of the 20 actors nominated between men and women, best actor and supporting actor, only one africanamerican for the movie harriet. A lot of backlash, oscar so white and so male. It will be interesting to see how they handle those issues the Award Ceremony is much earlier this year, february 9th. Julia, thank you. As far as the rally today goes, its not just netflix. Tesla, microsoft, apple leading the day. Our next guest says judgment side is possible for both alphabet and facebook as well. He joins us here at post 9 good to have you we talked a lot about cloud, but Digital Advertising, ecommerce. What is the market not understanding about the overall space . I think a couple things im seeing overall the first is kind of across the board theres healthy growth but not that robust 30 , 40 , you know, topline growth taking place anymore. What were seeing, earlier from the cloud, everyone is getting into each others space, compete for dollars but theyre all in that 15 to 25 annual growth range, so thats why advertise is getting into ecommerce and vice versa on your list of outperforms, facebook, google, uber, snap twit we are a sell then amazon left pins in between. What are the threads i think one of the most interesting calls on there is amazon at a market perform with peers going with a byside rating part of that is the natural ebbings in their core business one thing theyre great at is buying products. But when we start thinking about shopping and inspiration, theyre not the brand you think about. Thats where facebook and instagram and others are coming on with a very different sales proposition to attract where ecommerce is going. Around cloud, thats a spot were seeing increased margin competition as we think about used to be a singular player getting the business, now three players all with really comparative offerings in place jon, digital ad dollars, in addition to facebook and google, the two dominant players, what are the other names to watch i didnt really hear the question could you repeat that . In addition to facebook and google, what are the names that could actually emerge to meaningfully take market share where Digital Advertising is concerned . Yeah. Thats a great question. We just ran our eighth annual u. S. Ad buyer survey we published the results last thursday and we surveyed 50 u. S. Ad buyer, about 13 billion of u. S. Ad spend they were more bullish on u. S. Advertising heading into 2020 than the last few years. But we asked a new question this year, which platforms could emerge or is emerging outside of facebook and Google Properties which on our math account for for 67 of global Digital Advertising exchina and 40 amazon which dovetails nicely with our forecast we have amazon share of global Digital Advertising rising from about 6 this year to about 9 by 2025. Its highmargin business for the Company Coupled with aws margins. One of our calls on amazon this year, our top pick, is that margins start to accelerate, particularly the Second Quarter and back half of the year as they start to comp the prime oneday cost mark, speaking of margins, how concerned should investors be about this rampup in cloud sales force spend weg oar seeing across different names like google and amazon . Yeah, we should be looking at that in that cloud space as we talk about the very different go to markets that took place, a lot of it was inbound requests so i knew what i wanted to do, could set up my cloud with workloads. Now i have to show up with a sales force. I have to hire up a Customer Relations manager. Everyone is doing the exact same thing at the same time we should watch it closely because aside from staffing up youre not competing on price. Is it downside because of squeezed margins or are investors going to be looking for growth on the top line and thats going to overshadow any spending that might have to take place as they jockey for market share . We should be looking at top line first as long as that top line looks healthy and steady, were able to convince the Legacy Companies to move the next work load to the cloud and feel comfortable and confident in skirt of ecuri. Thats the first thing we should be looking at. Keep looking down at the margins. We shouldnt underestimate what this business will look like and margins will look like in five years. We spent all of twooi2019 tag about antitrust and scrutiny yet stocks rallied are these concerns from an investor standpoint to be put on hold for the Election Year yeah. I mean, if you look at the big three amazon, facebook, and google we would rank order in terms of Regulatory Risk this tier over facebook and google. A little Less Headline risk. But ultimately, and ultimately for facebook and google, theyre both up about 5 this year for further moves up we think it will have to be estimate revisions up because the Regulatory Risk for those companies could kind of cap their multiples. So, again, dovetailing back to amazon, a little less on regulatory scrutiny. I noticed we mentioned twitter as an underperform for you. It sounds like jon isnt all that thrilled with it either its an Election Year, being lit up by Oscar Nominations. Seems like that bug in the ad product is haunting them months later. Absolutely. A couple things weve noted in the past is other Election Years, other olympics, we havent seen that bumpup in users globally youd expect to see from a company like twitter. Around that ad product, it hasnt improved at the rate of which their peers, snap, facebook, and gook l, have improved theirs. What we look for is we look at their underperform rating and to increase that velocity of ship shipping product weve soon it on the consumer side we want to see it on the advertising side why uber over lyft . We like a couple things recently the market has gotten focused on margins i think softbank had a lot to do with that. We care about where the new growth will come from and uber is participating in it theyre playing and investing in new ideas and opportunities to leverage the platform. Thats like we like them nice to have you on the scene. Talk to you soon thank you still more ahead on todays largest tech movers next but first, Rick Santelli, what are you watching today parallel shift in the kufsh s curves elngrgan is recommending sli long bonds because its so rich. Well talk about that after the break. When you look at the world, what do you see . We see patterns. Relationships. When you use location technology, you can see where things happen, before they happen. With esri location technology, you can see what others cant. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein bars. Try lemon cake. Pure protein bars. [narrator] at Southern New Hampshire university were committed to making college more accessible by making it more affordable. Thats why were keeping our tuition the same for all online and campus programs through the year 2021. [woman] i knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look we can do this [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. Heres whats coming up at the top of the hour. Judgment week for stocks earnings under way tomorrow. The Investment Community taking positions in the market ahead of the numbers. And the names that are selling today and there are several. Well discuss whether it is time to take profits in your own portfolios and a big downgrade for one popular media stock that made our call of the day. That and more coming up at noon. Less than 15 minute as away jon fortt, see you soon. The cme, Rick Santelli is there with the santelli exchange. Thanks, jon something is rich or its cheap. Sounds easy. But rich and cheap are two woords often used but difficult to quantify. First of all, whose eyes are we measuring this Financial Products richness or cheapness by an example, 30year bonds. Jpmorgan is basically issuing a sell because they think that the metrics for the long bonds are just too rich. And i totally understand, and i cant say that i necessarily disagree but if you take the viewpoint of a global overseas investor whos swimming in a pond of negative and lowyielding instruments, all of a sudden, 30year bond looks different to that investor lets go through it. A 30year bond street that started before the fourth of july, ended today, hovering at 231 as you see right here. But heres the interesting part. You know how much technicals can give you good guidelines i always like to do highlow perpendicular midpoint, so if you do it herer,we get some nice tops. We do it here, more nice tops. Look at this giant top that occurred right at the beginning of july last year. You have 266, 195. Add them together, divide it by two. Guess what it comes out too . Pretty darn good close to 231. If you look at this level it does give you lots of granular positives to Pay Attention to. We seem to be circumventing it, going towards it, getting very compact. What do you do with this chart lets break it down first of all, we know primary dealers for most of 2018 and 2019 were heavily long we also know recent activity in 30year bonds has that shorts building to the point we now see in 2020 dealers have gotten much less long and long in definition of dealer parlance is cash minus futures. So what we really have is a market that seems to want to go higher in yields, but the point of the matter is we have so many people on that side of the ship, they say, that its going to be difficult. But i say if you look at the 30year bond from a global perspective and you look it aat from a Company Assets to liabilities scenario, this will continue to trade lower in yield, higher in price than it should why . Because what would you rather have a boon at the highest yield right now minus 16 since may or 231 in your pock wet soet with e Security Risk . Thats the question to ask yourselves morgan after the break, the ceo of a waumsly and jim cramer the nasdaq hits a fresh record intraday high. Stay with us of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Some things are too important to do yourself. Natures nty. 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. Jim cramer sat down with the ceo of dplakso a few moments ago at the jpm Health Conference in San Francisco. Jim joins us with more from that interview. We are goc to work you hard today jim . Work me harder than you think. You can. You cant outwork me lets go to work all right lum in a is offering tell us i want to go to lum in a for a second down badly thats what this conference is about. Breaking news. Emma walmsley talking about the idea there is tremendous innovation, not giving me the number bump that i wanted but she has done it twice in 2019. Bristolmye bristolmyers. It is a brandnew bristolmyers. They are doing extraordinary things everyone knows cvs has health hubs, maybe more than 1,000 by year end i am trying to get everybody who matters here, pull them in may doing a remarkable job moved eli lily kraumtly. Which is this is the place where you have to be innovation is the first of our three priorities innovation, and trust. I am pleased with the momentum and the progress we have been able to make over the last couple of years. We have had a lot of positive data for patients whether that be on the tesoaro acquisition. We have a lot of data coming through for hiv patients, in terms the pioneering two drug regiments. We hope this data amongst others is going to give us at least six approvals on new merchandise or new indications in 2020. And that we are Building Confidence in our ability to execute that innovation. This is about approvals, recall ka. It is about new drugs, about the consumer finding out about these drugs. Thats something that has just never been talked about. Its the year of the consumer. Thats what we are talking about at the Jp Morgan Health care. Do you think thats going to supplant all the worries we normally get about drug pricing going into an election boy, what a great question. I think all of these people are sensitive to pricing, particularly what we hear when we talk about iowa cause caucus, when we talk about new hampshire, one of the things i think you are going to hear is Bernie Sanders is doing quite well he doesnt like these companies. They can talk about innovation all they want. He doesnt care. He thinks they overcharge, that they make too much money it is obvious to me when you are out here you could curtail innovation if you let these companies, lets just say make far less machines. If you are going to treat them like a utility you are not going to get the drugs we need in this country. Thats a great way to frame the debate we are in for over the next ten months. Jim, obviously coverage from you all day long and tonight mad money at 6 00 p. M. For the rest of the enter and for the ceo of zoetis, tune in this afternoon dow is up 60 having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. To take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. As we are now getting word that the United States will lift china out of the currency manipulator status ahead of the trade deal we expect to get signed on wednesday. If you recall, the treasury secretary back in august farmally labored china a currency manipulator well see if that is a way to build good will. All of the major averages in the good looks like we are moving towards fresh session highs. Given this headline, something to watch n. Case you missed it japanese billionaire mizawa is looking for love he will be the first private customer to ride aboard spacexs rocket system around the moon, a trip slated to take place in 23. Full moon lovers set to air in japan is open to single women over the age of 20 that deadline to apply is this friday. The down payment for that ticket is something helping spacex to develop this particular rocket. Different kind of down payment here streaming to a new level. Reality series to a new level. In the mo, citi p. M. , wells lets get to the judge. The moment of truth for your money. Earnings season about to get hot and heavy. The big question, will the reports carry stocks higher or rain on this recordsetting rally . It is 12 00 noon, and this is the halftime report. The big banks, set to kick off a crucial earnings season. Are fears about profits overblown . Tech on a irat that. A number of big cap names getting their price targets raised to new highs. We will break them down. Shares of regeneron, up more than 25 ith