The pharma giants ceo joins us live and a big downgrade for one of the big streaming stocks we will debate in call of the day. The Investment Committee is ready to go. The Halftime Report starts right now. Welcome. Good to have you with us on this monday our Investment Committee, joe tear nova, josh brawn, steve wise brand and rob seechin. Lets begin with the markets stocks at session highs. Dow going for its close above 29,000 all this in what is a critical we can expectations are high. Positioning is pull bullish. The numbers better live up dont you think . Numbers i think will in certain instances have to meet high expectation i agree with that, scott but it seems we have rolled into 2020 and not much changed from 2019 you have been able to disburse allocations a little bit outside the u. S. Chinese equities are off to a strong start the iem both of those performing well. We are in earnings season. I think the pressure is on Financial Institutions more than any other sector i agree with what jim cramer said last week as far as the setup as never really never looked that worse. The pressure is on for financial decisions. Technology, where up in of the gains is coming from right now, any form of continued favorable news, i think it is not going to change the outlook and the desire to own the tech names. Does this feel like this is the moment of truth right after you have had the big run up into the numbers on expectations earnings are going to be good, growth is going to rebound it doesnt feel like we are overstating that the youth looks better sound good or you are going to have people saying that the move in the market is not justified. I think as mark twain said, whenever you find yourself on the side of the majority, it is time to pause and reflect. I feel like that with all of the annests upgrades everyone is bullish. There is no chance of recession people are saying. I think definitely this quarter is going to be so important. I think as you are big individual names, those companies that beat have good guyance will do well i think look for the companies that come in subpar. Five below today came out and announced and the stock has gotten hammered. I think as an investor know what you own. Once again, sign good, the feds none qeqe continues. Good time the talking about positions. Deutsche bank says it is stretched. The ideas that there are a lot of people on the same side of the boat consensus is things are going to be good. Money has been put to work in the market consensus is high. Goldman sachs gets another bump. It feels like its 20th in the last few weeks going right into the numbers, which begin in earnest tomorrow. Yeah. I think we have to look at beyond you how well the markets have done in the last three or four months and keep in mind we had 18 months of zero progress for the s p throughout all of 2018 and most of 2019. And even small caps still havent made a new high. It is not as though it has been going on and on and on and on. We did pay for the earnings recession of 19 throughout the course of 18. If you do get a little bit of a reacceleration of earnings you dont need a lot, i wouldnt say it would justifily further multiple expansion but it could keep the overall market where it is joe mentioned emerging markets i have been hitting that note all year relative strength for emerging moorkts right now is at the highest level we have seen since june of 2018 russian stocks, the rsx is how you can track. Highest since june of 14, six years ago. Then we have names we havent been able at that talk about for a long time. Freeport mcmarin is one of the most sensitive names in the market fcx, making a huge move. When was the last time anyone could say anything positive about fcx on the network transports, also economically sensitive, hanging at the higher end of the range that could be a breakout stall to come. I think we have got to look at more than just is the s p stretched . What is the overall environment, global stocks, economically sensitive stocks nice things are happening in price. We will see if the fundamentals end up confirming that three or six mondays from now. Lets bring it down a little bit to the earnings level to the banks specifically, right . They are going to start it off em to, wells and jp morgan get things going, and citi tomorrow. Your long goldman. Yep like it seems almost everybody is given where the can census is and sentiment. I have made reference to the upgrades which steamingly are coming every day and josh alluded to or joe did to cramers point last week of the set up being bad because the sentiment has been so good the set up is so bad because they better live up to the hype or else. I think the sentiment is worse for the big cap tech because they have had such a major move if you look i was doing a lot of work on the market this morning and over the weekend we are look at negative Earnings Growth for the Fourth Quarter. Just under 10 for the year and just over 5 in revenues for the year in terms of the bank. The banks and energy are leading in terms of optimism in forecasts Going Forward. So you say, say, so if they dont do well its the going to take the market down i dont think thats the case. I think what investors will look through, regardless of the Bank Earnings is loan growth and talk about how loan growth is going and if it is helping the economy move forward 678 you warrant to see that in terms of my positions, look i agree with you, when the market has moved like it has moved you have got take a look at it but i also see opportunities out there with the caveat that valuations are very high on your views josh i am not looking for a major move i am looking for actually earnings to move up that level, maybe 10 , maybe less. For me, this quarter is a throw away it doesnt matter. I dont see major changes in guidance for 2020. I see pretty much that the same dialogue Going Forward thats going to be enough to keep the market going. You will have hits and misses like today you always have those. In general, if you look at analyst ratings 50 buy ratings on the s p 43 holtz holds, and 7 sells. I dont get tremendous optimism from that sfwha what ramps up the pressure, word you could use is stocks are running into the numbers. This has not been a wait and see market it has been a figure out you think earnings are going to be pretty good. We are going to run right up into and it now they have to live up to the hype. They have to live up to it. We are below consensus on our forecasts for earnings when you look at the last two years, between joshs point, is that 18 you really had a lot of Earnings Growth, no Price Performance on stocks. 19, you had really no Earnings Growth and you had a lot of Price Performance on stocks. When you look at that in the aggregate, they were up 20 . Earnings are up 20 . The markets are up 2 across the same period. Earnings have to do reasonably well there is another factor thats a little bit more macro than that. Thats in the manufacturing day. If you want to believe in this cyclical recovery, and we are starting to see some of these sectors, emerging markets, very cyclical if you are going the see the cyclical recovery, you need ism to start to corroborate that some of the Economic Data so it is not just a story of earnings. I think it is a story of economic recovery. The consumer has been incredibly strong and been a very supportive force in this market advance. What lacked a little bit is Business Confidence, for offense reasons. If you see manufacturing come back, i think that corroborates Business Confidence and you can get markets to continue to move higher at a major pace. Which bank is most susceptible to a disappointment or a pullback of their stock price this week . I look at goldman . Isnt the answer always citi . I dont know. They have had a meteor snik wells fargo. Yeah. I think with goldman you have to be discrete when you are looking at the bank this year. Gold plan is in a transformational stage, they are you no going to be the Third Largest private equity firm out there. A third of their authorities are Software Engineers acquisition of United Capital in the rna space s. Who knows what happened with the apple credit card thats the consumer based side but the federal looks at loan growth to deposits the deposits is the denominator, the deposits at the bank with loan growth. Thats at an alltime throw since 199 1995 ipgs thats a i think thats a point of optionality i think they are most susceptible to i have been buying the stock it is not at full position. I would actually buy that to your point. I missed it. I saw the breakout, i talked about it on the air, i just didnt buy it because i suck i agree with you this is a story about what the next five years look like under the transformation it is not about what was Free Cash Flow in the Fourth Quarter of 19 nobody really cares. I would be surprised if there was an opportunity to get in on a pullback from goldman sachs. Thats generally not how the market works stop ruining my dream. I think trading vechb going the look better than it has looked in recent quarters. The s p hits a new record intraday high as we speak. It goes to the point of the optimism and the run up into earnings season. The other point i think to keep an eye on beyond the banks is one that we have been talking about you know daily, the upgrades in sectors that outperformed the market. Like technology. Another good example is today. Apples price target goes to 375 we said apple is the proxy on the market to 375, a new street high. At d. V. Davidson facebook again called a top pick up to 280. Go down the list nvidia, which we mentioned last week price targets, up, up, up, and away tesla tops 500 for the officers time ever today. I think we have to look at these names individually though and not say it is a melt up. They are just buying anything. In many respects some of the large mega cap growth tech banks, it has been a group thing again. They are part of that group for a reason it is not a hereditary title these companies became what they became lets look at apple. Apple is going to sell 85 million pairs of air pods this year i will buy three of them because i keep losing mine put me down for three. This is a category for apple that didnt exist just a couple years ago. They sold 85 million pairs this year if they do that again in 2021, it will become the third best selling product line that the entire company has they are going to do 15 billion in sales just of air pods next year there is reason. There is a reason the sell side is raising after apple to upgrade it i am not getting into the watch and the 11 and on and on i think thats indicative of, we could do the same thing with alphabet. They are on the doorstep of a trillion dollar market cap going to join the club momentarily. There has been an index fiction of markets tech has been a part of i. A lot of the push up in tech has to do with investors are buying indexes, and the sector is the beneficiary of that. The sector is trading a of the a huge premium to the market multiple the highest in 11 years relative to the market multiple i also think the gains have been there, and it is really tough for investors to take money off the table because the gains are so significant and the tax bite is so large. Anybody going to take pause if you have four of these stocks at a trillion dollars in market cap . Isnt that a conscious. No. Thats not a valuation indicator. To you point i think this is general optimism among all the analysts it is an optimism indicator, isnt it it is you have got the price targets raised they make a decision when it goes close to the price target do i go to a hold or up crease my price target and justify staying on here. Everybody has been choosing choice b. Exactly to me, thats trouble. All of these analysts missed their price targets . They missed that dramatically . Is that why you think goldan maxx faces the highest pressure after earnings. Yes two of the names are not tech stocks google, alpha is in the communications sector. It is not included in xlk. Facebook also. Facebook wasnt up there. What was the other one that was up there. Facebook is up there. Facebook, not tech stock, amazon not a tech stock. It is consumer discretionary. Look at adobe, when they missed 260. New high by the way for that name, alltime high. Analysts came out and said we are ground 2k3wr5iding it because their growth is going to slow company came out and said you are wrong. That was at 300 a share. Now it is up 10 with no new news. I think what is interesting about the trillion dollars, i think it is a just a headline. When you talk about adobe and how powerful apple has become. Apple and head sets from their air pods, which i also have probably five because my kids keep losing theirs, will do 12 billion in revenues from their ear pods more than adobe makes in a year. An incredible amount of revenue. Apple, you look at their multiple to the s p, apple was under a multiple of the s p from 2012 up until last year. People are saying is it too expensive . It traded below the multiple since 2012 right and how many people were saying when it was trending doordthe higher end of the multiple, how many were take this company is about to pull a rabbit out of the hat and invent a new heara. Even if you put a Consumer Electronics multiple on that, it would be worth money that what it is valued the company would really be off to the races but you are looking at it in a vacuum the other side, their iphone business is still 40, 50 and their still biggest contributor to urge mos. It is their bottom line. You cant just say wearables or hearables, you have to look at it all and they have down earnings and down revenue thats not typically if you took the name apple off that company it would be selling at half the multiple it is selling. Returning hundreds of billions of dollars to shareholders it is a very big part of the equation whats interesting about the discussion around tech it reminds me of something 20 years ago in march of 2000, there is almost nothing that can derail the positive energy and complacency thats built around this sector. I think valuation, regulation, and some other things are challenges to this sector. Sure, but it helps that the growth at any price stocks have already been popped. Thats the first crack. Exploded. They have exploded. Thats a good thing, though apple and Microsoft Companies earnings billions of dollars there is no comparison to 2000. I agree. There was a lot of Companies Earning above the pie in the sky numbers in 2000 that also got brought down with nasdaq they just werent sisco it still got taken out of the wood shed okay you cannot avoid the sector yes, you can do slightly better but when a sector breaks down, a sector breaks down i am not calling for in a. You were going to Say Something earlier. You said you are underweight something . Our firm is officially underweight tech valuation. Okay. For how long . Probably since december i am not sure i am giving you the right date. Our condolences. We have not been able to participate in that and have chosen not because of the enormous gains our clients have in those positions we think the secular trends are powerful. Why are you getting off the train. For valuation reasons it is a tactical call, it is a trade. For me, i am long term a secular bull in technology i think over time owl of the powerful trends remain in place and earnings ultimately catch up with some of the valuations. But i think you have got to mix in some of the cyclical exposures which have been laggards to allow your portfolios to work if that doesnt. Somebody want to take a stab at tesla, above 500. I was going to say, what is interesting about tesla is that, you know, take aside their factory in china, take aside what they are doing with their cars when you look at them as an autonomous player you know tesla started creating their own chips in april of last year. They stopped using nvidias, they have samsung manufacture them. They are in every single car that comes off the manufacturing line and tesla now has over two billion hours of drive time that goes up into their system that when you get a little bit more 5g Adoption Across the United States a little bit more Software Enhancements their biggest competitor would be waymo which answer has 16 million hours of drive time. When you want to talk about autonomous driving it is partially in the, is to. I think this company is innovative but i have never seen a sector where somebody has a price target of 10 and 500s teslas drive hours are human, and waymos are actual autonomous they are nowhere near the exact same drive time models how do we explain the price target have you ever seen anything like this a price target that goes at oppenheimer from 385 obvious leap thats in the rear view, the analogy there, but to 612 . From 385 to 612. Sometimes the explanation is not the fundamentals of the company. Listen, maybe euphoria in 2020 looks different than euphoria was described in prior decades as indicating a top of the market i think there is something going on positionally. In tesla it extends further. Think about coop, twillo, z scaleio. Up 20 year to date. Has something fundamentally changed . No look at all the ipo names. Beyond meat. Up 10 again today i think euphoria looks at momentum and price and the way people are positioned. I think right now wait. It is also more created amongst fewer investors. In 2000. Yes. 55 52 of american households had some kind of stocks exposure. Either mutual funds or individual stocks. Now it is 55 ask. The population is so much bigger than it was 20 years ago you have way less people involved you dont see euphoria until people that havent invested in 15 or 20 years come back into the market and they are actually doing the opposite they are buying bond funds every chance they get. Euphoria, you call it what you want, mike santoli is looking at whether it is peak happiness. He is at the New York Stock Exchange go back two years actually, one year and 50 weeks ago is the moment, late january of 2018 that i a couple of months after that called peak happiness. What was that . The level of maximum valuation to that point, investor optimism and momentum in the market all three of those things seemed to have peeked for the cycle in that moment. I was quick to say even in the absence of those things the cycle can grind on and you actually have higher index levels would the those things getting to their prior peeks however, what we are seeing right now is resembling those conditions we have the highest forward valuation for the s p since we had then thats an observable number we are keeping an eye on right now. It was lower in 2018 because most analysts had not incorporated the tax cut benefit to earnings in 2019. Arguably we are at peek valuation. Optimism is getting there. I think a lot of the options based trading and position indicators are telling us we are pretty much he stretched on that level. What is different is the cadence. It has been a more orderly rally. We have only been making alltime highs really since october in a distinct way. Back then, 2017 was super strong and very calm. Then we extended it in a huge head long rush higher and it was a very unstable market also we had a couple of triggers back then. The Volatility Fund implowing was not something that had to happen because of where the market was sitting i think what i see in the market right now largely is a bull market acting like a bull market only more so you are seeing the extension of valuations you are she go credit markets super super strong and all the crash flow names leading the nasdaq they are getting revalued in line with a crazy strong credit market right now because people are looking for the durable cash flows all of that stuff on the table you are obviously more susceptible to a jolt from a direction you didnt see coming. It is probably not going to be one or two earnings disappointments down the road. I dont think it is necessarily at a limit right now you can also have more extremes. I think right now people are raising price targets because the market left their targets in the dust. Thats right. And the index targets are really not aggressive whatsoever right now in terms of strategists. Good jumping off point for the last part of our discussion. What do we think about all of this it is not just tesla. Look at which i potly. 81 times this years earnings. It is a restaurant their hightech is they make brown rice come on. The market does have some excesses. We will step away we will do a quick break i mentioned some of our traders are making big moves we will get to those after the break. Heres what else is coming up on the hoff. The health care trade. Dont miss a halftime exclusive interview with regenerons ceo, that stock jumping 25 in the past three months. Plus, spotify downgraded we debate the music streaming stock in our call of the day. The Investment Committee is getting ready to answer your questions in ask half time go to cnbc. Com halftime. Everything your trip needs for everyone you love. Expedia. For everyone you love. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Welcome back, everyone im sue herera here is your cnbc news update. Queen Elizabeth Beth ii says she will grant opinions harry and meghan their wish to move parttime to canada and live a more independent life n. A statement, the queen said it had been agreed there would be a transition in which the duke and duchess of success cess will spend time in canada and in the uk here at home, u. S. Senator cory booker has dropped out of the race for president n. A statement to supporters, the democrat from new jersey said that failure to make the debate stage has made it harder to raise the money necessary for victory. The white house hayes President Trump and german chancellor Angela Merkel spoke by phone yesterday both leaders discussed ongoing Regional Security matters in the middle east and libya as well as other bilateral issues. And what a mess this mornings rush hour commute in new york city was disrupted by massive water main break on manhattans upper west side, flooding the streets and subways right near lincoln center. Officials say repairs could take days it was nice mayghtmare commute s morning. Thats sue herera. The Biggest Health care investing event kicking off today in San Francisco meg tirrell is there live at the Jp Morgan Health care conference with the ceo of regeneron. It is all yours. Scott thank you so much dr. Lynch lifer thank you for joining us today. Great to be here. Want to talk about your trug for age related Macular Degeneration you have gotten new competition from novartis. Some folks are trying to decifer what thats going to mean. Somebody said that could take half the market from you tell us about the future of that drug. We announced that the drug had a great quarter. It did 1. 22 billion in the United States. That was no impact of inventory. That was the First Quarter which this new product was competing with us. That represented year over year growth, double digits of 13 or 14 for the year, which is pretty remarkable for a drug of that size. So we see a lot of opportunity for that drug to continue to grow there is always going to be competition. We have faced competition from many companies, on this dug. But we have a safety profile that i think is remarkable we have an efficacy profile. We have all the indications. We are pushing hard now to make a difference in diabetic drug disease. It is doing great. That drug is taken primarily by older folks many of whom are covered by Medicare Part b President Trump talked about changing the way those drugs are paid for and pricing how they do it in other countries. What would that do to your business i think a lot of the plans that have been circulating around, coming and going, are symptomatic that there is a problem out there. This is the United States. Seniors have to be able to afford their drugs and they have to be able to get the drugs that can prevent them from being blind there is no two ways about it. We have taken the step in the seven years we have not raised the price this drug once so there are solutions which we hope are market based. We are in favor of some of the solutions that might be coming out of washington. There was a compromise bill that came out of the Senate Committee when the democrats and the republicans can agree on something, that probably means it is pretty good. That was limited seniors out of pocket to a few thousand dollars for the year period for their drugs. Something like that is the kind of thing we need to do but we dont believe that some of the more radical solutions will take hold so regeneron is also competing in the immunooncology space. Merck and brings cole myers have a massive lead but you could be in the market in lung cancer sometime soon tell us about that path forward. How do you catch up . Yeah. So a year ago when we spoke at this conference we said that immuno oncology was huge focus for the company. We have delivered on that. Our pd1 drug is the leading drug in the United States for cutaneous squamous cell carcinoma. We did that within a year. We got interesting daton lung cancer in terms of the objective response rate. We hope that rate will translate to a survival benefit. We will be looking an interim look during this year. If thats positive we hope we can be able to file and compete. Beyond even one thing, we think this immunooncology field is a meat of having a whole portfolio approach we have a drug in which we are a partner on but we have cb 20, and 23, which is showing exciting data on imfoamas and we have biospecifics a new class of by know specifics published last week which could change the whole field i dont think this is anywhere close to being the time story being written here. A let more to discuss, len, thank you for joining us great to be here. Lots more coming up from the Jp Morgan Health care conference including the gilead ceo in power lunch. Thats meg tirrell at the jp Morgan Conference about health care what are you doing with the things you own i own zoe jennics, which i owned for a while. The data has been good i expect more data i also open the xpi. But quhil i have done well i am looking for an exit point. The drug stocks they buy up in expectation of the jp Morgan Conference and start selling off as the conference starts and you dont have big announcements i suspect they will bounceback in the next couple of weeks and thats where i will get out. You were taking profits in some names joe you have three names you are taking profits in walmart . Completely out, i dont hold on to stocks that underperform offer a period of time relative to where the market is walmart seemed to have flattened out. I would reestablish walmart if the provides was to fall towards 100 thats a more reasonable valuation. Hess. Thats a high correlation to the price of oil oil has fallen back to 58 i added suncorp. I dont want to be overexposed in energy. It only represent sends cents 4. 5 of the s p. What about u. S. Bank corps . It was difficult to let go. But i have too much financial exposure i think i began the year discussing with you the concern that i had where yields were what is surprising to me is that we are ceiling this overall enthusiast particular sentiment for risque sets but yet the u. S. Tenyear treasury is still at 185. Thats the same place it was back in september bhachlt is the messaging there . For me, it is my exposure in Financial Institutions is too much, i have jp morgan, i have wells to, where i am looking for the turn around story. I had to get rid of usb. You sold out of united rentals. The stock hasnt been acting well they have missed in the past it is not expensive but the stock never is expensive i looking to take some profits on economically sensitive names. I dont own many of them fdx is the other one of them i thought look it has been a great investment, let me get out and have some cash. A new year, new record high phosphor the market. Where is your money going right. Thats next in etf edge watch us live onhe t go on the cnbc app halftime is back right after this theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. Cool. Our Retirement Plan with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo well planned, well invested, well protected. Voya. Be confident to and through retirement. We believe in education built for all people. , [woman] snhu was the best experience of my life. [man] without snhu, i wouldnt be the leader i am today. [woman] i graduated high school 19 years ago. I still finished. [man] in the military, you feel that sense of accomplishment. Thats what snhu is. You will march from this arena and say to the world. I did it. [woman] you did it. I love you. [graduate] i love you too. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Welcome back to fast money Halftime Report. Time now for etf edge. Markets are at new highs but the new money for 2020 is not evenly distributed. Lets talk to two people i know. Tom lighten, steve grasso. Tom, lets break this down a few trends stick out to me inflow into growth and emerging markets. Outfolds from gold funds precious metal more than 540 million in outflows in two weeks for gold right. What is going on. The stock market equity starkt has maken off even more so there has been less love. Gld was up almost 20 last year. Gdx was up almost guys that. Definite moment numb the gold area i wouldnt bet against night what does it mean for the miners gold miners outperform two or three times whatever the underlying commodity does. Thats both up and down. If gold underperforms and trades down the gold mine remembers going to go down two or three times more. It is anomaly that always happens. You have to be aware of it when you are investing around the metal. Growth versus value growth etfs have had inflows after outflows in 2019. Everyone bet against that right. Everyone thought this was the time where value was going outperform growth. You have done a great job of covering this, the fix names responsible for the rally for the last ten years, the last year, last three months. People want growth they are not finding that in value just yet. Lets move on tom. Emerging markets still Strong Influence heres a trend continuing. We saw inflows last year, new emerging markets dollar we cannened better global situation. Is that going to be helpful. As china trade continues to improve thats going to help emerging markets also you look at the big emerging market etfs, kweb, thats in china. It is booming. He had over to etf dauj. Cnbc. Com. And today at 1 00 wiehl talk about how to navigate behavioral investing with dan egan. Fast money Halftime Report returns. Dont go away. And today at 1 00 wiehl talk welcome back shares of spotify under some pressure today because the stock was downgraded to underperform at ever corps. They call the Music Streaming Service a pure play on a loss leader category. We made it our call of the day we see it as a tool for tactical trading w. The stock back near 160 our risk reward is tilted back in favor of rewarding the shorts. To their point it has been bouncing back and target between 100 and 150. That range seems to be likt mat. It is at the higher end of the range. If the tactical call ends up being wrong you could have a legitimate breakout. I would wait for it to fail prior to saying it is going to fail just from a tactical perspective. Fundamentalsly, it is interesting, between this and slack, the two most highprofile direct listings on the New York Stock Exchange it is like nobody made money from these companies coming public, there were no underwriters they dont have any champions. I dont know if thats something that Silicon Valley look at for the next three or four direct listings it might be a negative. Thats an interesting point. It is a great point back to spotify, i dont see any difference between this and the thesis we heard on sissious xm which now owns pandora. Their commodity company, the profitability is out there maybe. The title is going to fade and i think apple music runs away with the whole thing. I wonder if joshs point needs to be delved into, the lack of a support structure is something you need to keep an eye on. You still have bankers going after them. But you still i never thought another wrinkle a major wrinkle. We all understand the ecosystem of the Investment Banking model. We all see thats there. I think it is interesting, if do a broader study to see the correlation of those stocks and future returns but definitely you need those companies to champion from an i. B. Standpoint those stocks. Right lets say you are like i am just making up this name. Lets say you are Morgan Stanley and you brought spotify public and you see the stock trading in a range and now it is at the upper end of the range like your name is on the stock still. You could come out and say hey we think third time is a charm at 150 it has had trouble you could get it going maybe not forever but they dont have a firm thats got their name plate attached. And follow through. Then you do a nondeal road show and you have the salespeople at Morgan Stanley say come see these people i am not seeing it. You have nothing to give me. I think it is a great observation. I think spotify is challenged in terms of the business. Think about the competition her facing their competition could lose money at will in the music business. Amazon, apple. They are making so much money in other categories they dont care they are talking about pot casts. That tells you the financial situations they are facing. We have more after this beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Welcome back lets answer your questions. Joe, you go first. Ken started a position at paypal at 92. Add or hold . Add add. Free cash flow will increase 1 billion each year over the coming three years stock has plenty of room to go to the previous alltime high. I would add. Josh, from joseph in Brooklyn Disney is not participating in the rally. Where does it go from here joe was talking about maybe this is you how badly it has been are you trading questions at me you could just text me would you answer it no. This is the story of the market right now maybe i dont know im loling all the disney commentary the stock broke out to 143 last july thats the high. Thats acting as resistance. It bounced off that level twice. I understand its not been going up with google and apple every day. Youll watch how quickly the negative commentary turns positive as the stock price bounces and works back towards 150. Then people will be excited about it again i will stick around. Im not worried its not keeping up in the last two weeks the stock longterm is a big winner has so many levers to pull for as far as the eye can see. 143 support, not resistance thats how it became support. Prior it was resistance. We bounced off 143 twice im not saying thats the floor, it will never go below, but the stock is acting fine its not a f. A. N. G. Stock. Let it go. All right what is your outlook on cisco longterm, is the current down trend anything to worry about . I think Chuck Robbins is a great ceo. They have been an underperformer in 2019 versus tech and the hardware theyre right in the middle of switching between hardware to their Software Subscription model. Theyre going through an upgrade cycle with their switching and routers. I see theres opportunity. If youre doing it for a 5g play, you have to look to 2021 before that becomes something meaningful it has a great ceo good Balance Sheet robby, thoughts on gold and silver for a trade. Usually dont love it if you were to own it, now is the time to love it. Even with the run in gold even with the run in gold the possibilities of extreme outcomes are endless having some gold in your portfolio makes sense. The upside absent that is minimal. If you have some type of event, youll be glad you owned it. For you, broader picture question from david westman. I believe the ice were walking on is getting thinner. When the pullback happens, where should i put new cash to work . Into the quality names. I would say microsoft, i would say alphabet, apple. Just the same names the market leaders here they will reemerge as leaders any selloff will be a function of tech shocks elsewhere not in those names thanks for the questions. Thank you all for the answers. Coming up, lululemon hitting an alltime high today. Our instntveme committee will trade that and give you final trades on the Halftime Report. Ill get that later. 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By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com welcome back lets talk lululemon that stock is hitting a new record high today. They raised their guidance thats got to be a good sign to come for earnings. For lulu specifically for everybody no, theyre defying the retail story which for the macys and jcpenney has been awful. They have momentum they have a story. They raised guidance 12 im staying with the name. Final trades. Conocophillips, a best in class trade. If you want to track investor capital, you need balanced books. Qualcomm fits all those. Qualcomm, they own 5g i think it goes lie h. Hihigher i think iemg, trade resolution, you can own it for a while. Mchi, the china currency trade, positive. Good stuff. Thanks, all. Thanks for watching. The exchange starts now. Thank you happy monday, everybody. Welcome to the exchange. Im Brian Sullivan here come earnings the future of this rally may hang in the balance as Corporate America opens up its books what to expect and if its time to get defensive plus no money, no problem. The amount of money losing Public Companies the past year at the highest level since the late 1990s more on this incredible story ahead. And fridays jobs number looked pretty good on the surface but if you dig down a bit deeper you may find some red flags. Well have that, all that and more on the