Halftime report starts right now. Welcome. Its good to have you with us on our wednesday. Jim lebenthal, Pete Najarian and from naples, florida, lizann sonders. Highs of the day, approaching big numbers, dow 30,000, nasdaq 10k, not that far away and cooperman weighing in on the state of stocks, telling us its not time to worry, yet. I would say were in the early stages of knocking on the door of euphoria but not quite euphoria certain parts of the market, like tesla, are in euphoria. Other parts, like energy, are in pessimism. These big numbers not all that far away, pete. All good, the market depends on what were focusing on. Are we focused on the coronavirus . If so, we go down. Generally were focused on earnings and we go higher. Thats where the market has been trading. Yesterday was interesting because apples with a little bit of both, right you look at apple. It was getting pushed down because of their guidance about what they were facing right now, what they were seeing Going Forward and they were being very forthright because of that, you had a push down in apple. It was down a little lower in the premarket but it absolutely rallied toward the end of the day along with the rest of the Technology Names nasdaq, we were down early it rallyed back to finish in positive territory that said a lot, i hink, about the appetite that we all have in the markets and people are willing to say, you know what . Yes, temporarily, well focus on this coronavirus right now the economy is doing really, really well. Knocking on the door of euphoria, words from Lee Cooperman. Not there yet. What do you think about what he said one thing thats interesting about this sentiment environment, for much of this bull market there was nothing but skepticism you couldnt get any sentiment issue on the attitude or behavioral side to anything approaching extremes that changed heading into 2018 you did start to see some extremes in the beginning of 2018, which perfectly set up the shortfall implosion, same thing happened into september, which set up the near bear market in the Fourth Quarter more recently when youve gotten these spikes in optimism heading into midjanuary, you were seeing recordalide. Then you have corona virus step in in and of itself when it gets excessive, it sets up vulnerable to the extent there was a catalyst all it took was a 3. 3 drop in the s p and most of those sentiment markets moved down at worse into territory skittishness comes back much more quickly relative to the late 1990s era. As Ricky Sandler told us, bifurcated market. Its like euphoria versus pessimism. Tesla today, Virgin Galactic today, energy today playing off one another. You could make a case for euphoria and then Lee Cooperman says theres pessimism and good value to be had in energy. Im going to parse those words a bit. He was talking about sector on one hand, and on the other a stock, two stocks, virgin. I dont see knocking on the door of euphoria in any real sectors. Sure the semis have done quite well theyre getting a rerating because theyre not what they were theyre not pure commodities they go into virtually every walk of life from cars to tvs, everywhere i dont see it knocking on the door of euphoria those are isolated instances. You can do that, keep that as isolated, boxed up on one side of the market and then look at Everything Else as a whole i dont know why we leave chipotle out there weve had chipotle thats been at unbelievable valuation levels since we got a new ceo there you can box those if it gets widespread like we saw in 2000, which i dont think well get to, thats euphoria. Cooperman said go up 5, 6 from here in a short period of time then youre not knocking on the door you broke the door down. Then maybe thats the time to worry. Between now and then these round numbers waiting for you, dow 30, nasdaq 10,000. Up 5 or 6 in a short period of time when i hear that, scott, i think a short time ago we were 5 or 6 below where we are now i heard him say that yesterday i understand what hes saying. Hes looking for the opposite of what hes saying, going from isolated incidents of mania into the Broader Market im not sure that looking at the overall market is where youre going to gauge that. What i would like to see before you get to euphoria, is some spreading out of enthusiasm that lizann is talking about. Its not just energy its financials. Its industrials, its health care that woefully have underperformed the hot sectors of the markets, software, social media semi conductors, et cetera we talk about and question the narrowness of this market. All i will say is there are wide swaths i just named four huge sector who havent really performed. Is it time to play the pessimism trades, that jim cramer said are uninvestable one says great, one says dont touch. I heard jimmys comments. This is one of those cases where ive got to say it is investable, energy, that is. Its not tradeable i look for in an investment, and most investors look for, is return on their capital. Free cash flow you look at energy and see dividends going up, share buybacks that are shrinking the share count, roich touch shell, buying back gobs of their own shares the point being those are investments. They return capital on what is invested what they are not, scott, is tradeable. I cant tell you when they start to perform we thought they would start to perform as at the end of the quarter. They are, as kramer said, uninvestable who cares about the dividend and the buyback . Eventually those lead them to you cant say when that happens. At end of the Fourth Quarter i thought we would start rallying. Then you have this corps own cameravirus and oil demand is negative on this year. Those are the things you cant predict. Investment means youre in for a while. And ill take those dividends along the way. Lizann, what do you make of that do you think its time to buy some of these, quote, unquote, pessimism trade,rs, stocks in the case of energy i would keep an eye n the inverse coordination between the dollar and oil prices and, of course, the continued move up in the dollar if it starts to get year to year appreciation and depreciation, like what happened in the second half of 2014 into the beginning of 2015, that sets up a fairly negative earnings outlook, not just for the energy sector, but more broadly i think currency is important in that overall trade you talked about bifucation. Theres been a lot of focus on technology as leadership year to date, and in particular since the coronavirus, tech is still at or near the top so thats a very unique pair, leading the market right now and i think it points back to some of what i talked about. There is that momentum dollar that is chasing the names that have done well theres also a combination of an interest in having a bit of a defensive offset and or money that is chasing yield, which were seeing in other segments of the market, too that is a very unique environment were in right now. This notion of playing this tech its not like cooperman says go all in on, you know, deep value, pessimism. Look at the big names theyre all high growth stocks. Alphabet, amazon, microsoft, facebook. Yeah. Big money is still there. Temper adding to micron, amazon in the Fourth Quarter. We talked to him yesterday in the we talked about his new intel play i spoke to him on the phone about that big money is still going where lizann said, the top heavy part of the market, the performers. I think its explainable. Its an unusual pair but its unusual to have free money and low Interest Rates you have virtually no inflation, high ppi number today. So youre going to want to go to companies that can still get Pricing Power and still grow in a noninflationary environment. I own crown castle i love it. Now i think those valuations are stretched but im not selling them the coronavirus was not a big deal yesterday apple barely budged. It did nothing, down less than 2 the lows. You could say, well, i saw that coming. Right. Its not like it was unexpected. Exactly but what it masked is the debate in the white house about not selling to huawei. To me, that will be a much bigger issue for the leadership in the market. Its not aif this desk is overwhelmed with pete, i lock at your holdings, those, quote, unquet, uninvestable stocks, chevron. Why, why, why why . Because theyre trades. What am i trading with options and what am i doing with stocks . Stocks are investments and options are trades, truly trades i look for beta trades. You have chevron stock. Ive been selling calls against that one its held in there well. Its down about 7 yeah, stock is down about 7 thats not that big of a worry for me im selling calls against it in the energy space you can find, the at times but i will tell you this when youve got oil going under 50, i look for those beta names and when do i see unusual activity into slumberje or names that i consider to be the beta names . Those can be trades, fast rushes and then i can get out and move on in terms of longer term holds, absolutely take a look at i look at technology yesterday, sitting on this desk, market is going down everybody is focused on apple to the downside in apple, in facebook and i brought those up yesterday im already out of that particular trade. You have a completely different view of energy jim says yes, you can invest in these things in the long term. Youre saying heck, no cramer says theyre uninvestable. Hes saying theyre untradeable. Reporter i think theyre tradeable zblun investable. For the long term yes. Obviously for the long term. You have sea change and younger investors are not going to buy those stock. Because of esg. Right. Okay, so wait lets talk about this, because that is overhanging these stocks, esg, and the push away from fossil fuels. Wait, scott, this is important number one, esg has been with us this has been building for more than a year, the effect of esg on these stockholdings Pension Plans divesting from fossil fuels thats been going on for over a year here is the reality of the world, folks we still drive gasguzzling cars we still fly by the way, when youre building a giga factory for batteries, you have to build those factories. The fossil fuel Energy Intensity in building Renewable Energies is intense bottom line, fossil fuels are not going away you can continue to Different Things here, okay no one is saying that those companies arent going to make money because, as you said, fossil fuels arent going away that is completely different than investors shuning the stocks regardless of whether the Balance Sheet looks great. They may not want to buy the stocks, thats the bigger point that theyre making, that they are uninvestable because of that. Thats one issue. I would say theyre uninvestable for a couple of years, because theyre unanalyzable a huge, speculative market that underlies the commodity and we have some of the allegedly Smartest Energy investors of the last decade that cant get money and factor out of business so the yield has been no protection unless theres a yield of 21 in these stocks, youve lost money with 3 and 4 yields. Ill give you a name that does work in the energy space and obviously were talking about a lot of oily stocks right now. How about kmi . How about looking at the pipeline i continue to own it. And i appreciate that because its been an absolute monster. Richard kiter continues to tell us, when it gets too cheap, im buying more. Last year he increased his position by an incredible amount when he bought Something Like 180,000 more 180 million more shares added to his position so this is the stock again, today, 52week highs. This is a name that i think you can own. You get a dividend yield and not have to worry as much. Youre not buying it for the yield. Thats the bonus on top. But the reality is 4. 5 dividend yield its going to be close to 6 steve, you just said it. I hear you 6 dividend yield doesnt make up for a stock that declines 7 . Weve got to escape to where the puck is. The damage is already in, in these sectors. If you look, kinder morgan, Marathon Petroleum trades at book value i dont think its going down further from here. I think its going up. It could easily trade and should trade at 1. 2 times. Lizann, back to big tech conversation, does it bother you at all that you have such a top heavy market you have six stocks, maybe less than that, that account for such a huge percentage of the s p gains for the year. The concentration does bother me a little bit. I think the comparisons to 1999 and 2000 are a bit off because these are legitimate companies with revenue and earning streams. In addition, you havent seen either their multiples get to the same kind of extreme nor have the overall multiples for the s p 500 reached anywhere near those extremes. I think in a momentumdriven market youre going to continue to see money move in that direction. Large caps still have hands down the better positioning, relative to small caps on a fundamental basis. Youve got financial conditions still incredibly loose, which represent still a bit of a tail wind under multiples but in a Perfect World i would like to see, you know, broader breath. But weve had this environment for some time now and it hasnt prevented the market from continuing to go up. I think rebalancing, pairing back gains, its a real simple ph philosophy its not terribly exciting to talk about, but man it saves investors at the end of the day. Jim, thats the gospel to you right now. Thats what youre doing with google and others . Lizann well try to talk some excitement into what you consider unexciting. It is exciting winners get much too big i trimmed google stock has been great i own a big position in it but its prudent management. I did this earlier in the year with apple corgos. Youve been doing this for weeks now. You recycle them. This is Portfolio Management i added to green briar i started a position in disney you buy low and you sell high. Thats all the Portfolio Management is. Trim your winners, add to the ones who havent done as well but you still believe in. Why do you have a new position at disney i bought it after the initial coronavirus, the stock got down to 135 picked it up there as the news came out that they closed disney shanghai my belief is that the coronavirus will have an effect in the first quarter, second quarter. After that, youre off to the races and youre getting disney plus, the creme de la creme in the space. Micron in the Fourth Quarter. You bought micron today. Not today. You bought micron you own micron yes. When did you buy micron just last week. Talk to me. Weve been looking at it for a really long time forget the inexpensive side of it or whatever where do you think micron is going from here . Youre friends with david temper, big advocate of this name for a long time we know the name very well i looked at it and said were seeing this unusual buying to the upside so that tells me a lot about what the perception of it is Going Forward. Why wouldnt i want to continue to own this stock, scott, be able to tell calls against my position when i buy stocks im looking for opportunity to sell calls against it, absorb that cost i got into it for and continue to roll on to that. I like where micron is going from here. I like the chip space. Ive been an intel buyer forever. Speaking of the chips pete just talked about, youve been a proponent of that space, even though you like individual names in it. Micron, i had a long conversation with the company. I got involved with micron a while ago. Major consolidation, capacity responsibility thats why its going higher in terms of the smh, if you recall i said i bought a position over and above what would be a normal as a trading position i was looking for an opportunity to get out of it frankly, i got a little worried when the tweet when the conversation came out in politico a week ago and friday in the journal about the white house limiting whats going to happ happen, what they can sell to huawei and to other foreign manufacturers. We tend to talk about some of these apple suppliers as a group. We dont necessarily separate them in the way we all talk about them but you buy a small position in corvo. Right. But you trim part of sky works. Right. Explain. I trimmed sky works i actually got out of it and went back in after have iing a conversation with corvo, after speaking to a taiwan company, media tech, that partners with them they sell the qualcomm chips to lower end phones in asia so the story on im still really worried about what the white house does i take no comfort in the tweets yesterday. Here is the story on the rf companies, qorvo and sky works the content they had in the 4g phone was roughly 9 per phone content on the 5g phone which may be delayed is 19 per phone. Thats a very powerful story so youve taken estimates down, media tech took estimates down to 5g phones in 2020 to a range of 170, 200 on february 7th when they announced, before apple got there. So thats why i like those i think the stocks will pull back a little more trimmed at 1. Youre picking it up at 104, thats fine. My advice to you, not that youre asking for it but ill give it to you anyway. Stick to your qualcomms. Those guys are going to get squeezed like heck by apple and samsung. Qualcomm has Pricing Power, renegotiated as of less than a year ago with apple. Thats where your Pricing Power is thats where your margins are. Well, ill disagree about the getting squeezed because you need to get the phones out there. Theres only three companies that do what they do broadcom is unsteady we dont know what their business is going to do. Sky works, in fact, might buy their business im fine with where i am qualcomm stands as much danger as getting squeezed because everybody hates doing business with qualcomm. Thats been true for 25 years. It has been. Lizann, whats the most attractive or under appreciated sector in the market today i think you could probably, within tech, maybe move down from some of the hot stocks and find some opportunities. We still an outperform rating on health care. In political season youre probably provided some opportunities there. And think if it moved down, near term it puts pressure on financials if we exit this environment you get more traction on the upside on the long end, i think financials are pretty well positioned. Utility trade suggests bank trade wont work any time soon as you said earlier, one is chasing yoeld and the other one is running from the fact that you have low rate has dont appear to be going up any time soon. Except the move down in yields has a heck of a lot to do with coronavirus unless this turns into a much more protractive economic impact, that move down may be relatively short lived i dont know any more than those who dont know what the timeframe is associated with that but i think thats sort of a nearterm issue, not indicative of a longer term problem with the u. S. Economy. Actually a good we to ask you as a followup, you dont think theres too much complacency in the market regarding the coronavirus . Lee cooperman said the same thing yesterday. I dont know. My point is i dont know if its a shortterm issue if the medical professionals who are studying the virus cant get you anything seam see sembling the vie us, the rest of us are just guessing in terms of the supply chain of the its correct to do comps to sars but whats missing in that analysis is how different the Global Economy is since then chinas weight in global gdp, the emphasis in the Global Economy of their consumer, purposes on china. What it represents is stark will he than 2003 is the rerating weve seen on earnings estimates for the first half of theier sufficient or is there more to come we got expansion last year without any benefit from e you have loose financial conditions supportive of aboveaverage multiples. But at some point e will have to step up to the plate here. You dont get multiple expansion and perpendiculituity. You have this happening on the back side of a protracted trade war that was pretty brutal on the chinese economy as well. Thats right. And the supply chain adjustments are sort of comingled as well and we dont know the ultimate timeframe there either. You could say maybe one of the i dont know if its a Silver Lining or whatever, but because you forced companies to rework their supply chains, thats maybe a positive in having to deal with this issue out of china some supply chains have already gone elsewhere and companies are able to deal around it theres just so many unknowns. Great to talk to you today, lizann talk to you soon. Thanks for having me. Here is what else is coming up on the halftime report. Nvidia up 30 this year just got its price target raised to the highest on the street the analyst makes his case plus, winning like a warrior, american Ninja Warrior host revealing his winning Financial Game plan. He joins us on the desk. Halftime report with scott wapner and the traders is back in two minutes like your cloud. Its a problem. But the ibm cloud is different. Its the most open and secure public cloud for business. It can manage all your apps and data from anywhere. So it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. Without getting in your way. Saving for avas college. Being able to retire on our terms. Taking care of dad. Why Ameriprise Financial . My advisor cares about my personal goals. He gives us comprehensive advice. I feel prepared for whats expected in life and even whats not. She helps us feel confident. We know our financial future is secure. With the right financial advice, life can be brilliant. Ameriprise financial. Welcome back nvidia and number one analyst has upgraded shares to outperform. Its our call of the day behind the call is stacy rasgon. Good to talk to you today. Good to be here, thanks. Youre pretty contrite in this note today, not growing positive sooner was an error, you say, you missed 90 or so of this move. Why today for the upgrade . Why is it finally time in your mind to do this . Absolutely. Youre right we covered the stock for a number of years and were bullish for most of that time. We downgraded at the beginning of last year on cryptocurrency and hyper scale phase. And the downgrade was fine again, obviously not growing more constructive sooner, that would have been a better thing to do, and we didnt so why today if you look at the stock, at least as it was yesterday, was almost dead on the prior beat, october of 2018. You look at what drove the stock, though, when it got to that prior peak, built on the house of cards, right . Gaming and cryptocurrency. Its proven to be a bit of a dud, at least at fir cloud guys were about to digest. You look where were standing today, though, with the stock again back to that peak. Things are much more stable. Theres no cryptocurrency in the gaming trajectory. Weve got a new gaming cycle coming that looks stronger hyper scales, this has all been true at the prior peak 16 months ago, i dont think the stock would have gone down if this was the story, it would have worked. We just pushed it out by 15 months and thats where we are today. Fundamentally driven call and not necessarily the technical one because the stock is where you said it was . Absolutely. Everything we do is try to make it fundamental theres fundamental drivers that are here theyve been delayed because of some of the situation that we had a year and a half ago. I think its been delayed. We seem to be back on the right trajectory. Momentum in and of itself continues to lead the market and the nasdaq, which hit another record high today, even higher for stocks like this to continue to progress higher, correct . Well, that would be true if you were only betting on multiples. Were hoping it can hold the multiple at the same time, there is a massive amount of earnings power that is here if the revenue trajectory can stay on the path that it seems to be on right now. Its not a matter of just hoping that multiples need to keep marching higher. Its if it can hold the multiple and i think it can it has a great revenue that can take it higher. 360 is your price target, 15, 16 from here. One of my Investment Committee members holds intel and would love to ask you about that stock because apparently you dont jim lebenthal. Stacy i got your note from january 24th after the recent earnings in front of me. You just dont like this company, i think im generous in saying. Its not personal its never i got it. Were on the other side of the trade. I want to hear your thought process. Youre assigning it ten times multiple at your target price. Th this, to a company that has really great scale, is starting to grow earnings again actually, has been growing earnings, is shrinking its count. So help me out and i mean it. Help me out. Why do you hate this company its not personal theyre a behemoth they always are. Tremendous amount of resources to deploy when theyre in a situation. They are in a situation right now. Obviously, we are in a period where, you know, its undeniable that theyre lose iing. Its how much and how quickly . Supporting earnings on the back of cost cuts and buybacks and theyve been benefiting. A lot of that has been due to the windows refresh, coming to an end if there was any pullback on tariffs, its coming to an end nvidia has been benefiting as well coronavirus aside. Well see what that may do to this they have a very strong first half, the second half looks quite weak the only time that happened is in 2008. Just going to get worse and worse as the increase the situation gets worse from here well see what coronavirus and everything does. Fundamentals are getting worse meantime whether its buybacks and this sort of thing. Stacy, we have to continue the conversation after the second quarter. Ill be there. Appreciate your time. Talk to you again soon just to reiterate just so youre all clear, stacy has an underperform on that stock and 50 price stock. He does hate it its not personal. I think he hates you, thats personal. Courtney reagan hi, scott how are you . At this hour secretary of state mike pompeo arriving in saudi arabia for talks with the king and crown prince iran and economic issues, and human rights saudiamerican doctor in detention for nearly two years and on trial for unspecified charges. Fast food chain wendys will settle charges wendys violated two laws, allowing 16 and 17yearolds to wrk past 10 00 p. M. And letting them work more than a ninehour day. Diamond princess cruise ship in japan after the end of a muchcriticized twoweek quarantine getting everyone off the boat is expected to take several days. Vice president pence marking the 75th anniversary of iwo jima he and wife karen visiting, Vice President pence laying a wreath. How investors are getting in on the space race action with etfs live on the go with the cnbc app. The half is back after this. Oke, 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. woman no matter what business you are in, Digital Transformation never stops. Verizon keeps business ready for whats next. man we weave security into their business. second man virtualize their operations. third man and could even build ai into their customer experiences. We also keep them ready for the next big opportunity. Like 5g. woman where machines could talk to each other and expertise could go anywhere. woman when it comes to Digital Transformation, verizon keeps business ready. Every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. I am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Welcome back to the halftime report. Im bob pisani space is the place Tourism CompanyVirgin Galactic has seen its stock sky rocket. Whats up with that and Everything Else in this space . The symbol ufo get it tom lyden is also with us and andrew, give us 20 seconds whats going on with Virgin Galactic temporary thing, are there fundamentals behind this a few things. One, more institutions are picking up coverage on this. Its getting more attention from the banks, two potential short squeeze and three, scarcity factor, investor exposure to space tourism. There is a huge interest in space all of a sudden. Not just Virgin Galactic but communication stocks, iridium, maxar, loral theyve been moving up as well whats behind the move in the satellite space . Large belief that the next wave of growth in the space industry will be coming from broadband. With data generated ashd the world with technologies, its bringing these names back in play. Tom, the interest level is suddenly there and its reached a critical mass, in interest with the general investing public. More than just star wars rides for rich people for sure everything from gps to your xm sirius radio to recent reports of looking down in china and seeing co2 levels go through the roof it really does help us you picked out the Key Companies that will grow in that area. All different types of space companies, satellite imagery that can detect things go iing n on planet earth. Not all of them are winners intel sat and global star havent done anything. Intelsat had a big drop in november whats going on there . Great point the government and the u. S. Came out, talking about the spectrum option for 5g and said were not going to allow any Foreign Companies from other countries to get involved and intelsat being one of those, took a big hit. So government regulations can influence these companies . Certainly can. Actionpacked show ahead. Cnbc. Com for our live webcast 1 00 p. M. Eastern time sharp innovator bruce bond about etfs and john davi about the esp explosion. Dont miss that. Want to know how to invest like a Ninja Warrior host Akbar Gbajabiamila is here. He will introduce his game plan in 30 seconds. Welcome back cnbc has partnered with acorns called invest in you ready, set, grow Akbar Gbajabiamila is host of american Ninja Warrior. And this saturday american Ninja Warrior jr. Good to be back good day to be here. Everything is on the up and up. You caught us on a good day its a great book. I wanted to talk to you a little bit about it, as you try to teach people how to succeed like a ninja. My biggest takeaway from here is believe in yourself is the first key step. Yes. You write its easy to see greatness in others, hard to see it in ourselves. Too many of us never see it at all. But its what we see in ourselves that often determines what we do we see what we want in others but when we look at ourselves we see frailties and insecurities. Because were trapped into our own circumstances and sometimes you can just focus on that and i think its very important to refocus on the things that you do well. And i say this you know this, too, pete in sports you can see other people doing well and youre constantly being maybe too critical of yourself in the part where it can paralyze your ability to focus on the good things so i think the same thing applies in finances as well. And when youre looking at your overall financial health, being able to see what are the things i do well, being able to be honest and critical and the things you need to do better for me, professionally, as a football player, going into the hosting these are things that i was really paralyzed by my own insecurities, things i didnt do well and it made it hard for me to focus on the things i did well its okay to recognize the things that you do well. I was thinking of ways to translate this into whatever profession youre in, on the football field or as a disciplined trader you use that word discipline all the time. Yeah. You may look at others and admire sort of what they do and how they do it more than you believe in yourself, that youre able to do it like they do. Yeah. You and i talk about this type of stuff we met together a couple of times in the past. Thats right. You have to be disciplined, create habits and youve got to figure out how to leave your ego at the door. Football, sports in general really does train a lot of people because you get broken down and in youre in front of crowds in the market often times youre by yourself, where you are, in your office. If you translate those former days into today, its something that actually makes it feel a lot better that you can react and you dont let your ego run wild. Right. And have to be disciplined. You check that ego at the door. If you know thyself you shall never fear a thousand battles. My former line coach used to quote that and knowing that both sides knowing thyself is knowing both sides that allows you to make the proper steps forward. Like the Obstacle Course that you are in front of all the time as a metaphor for life itself. It is its such a metaphor going into my eighth season hosting american Ninja Warrior its truly been a classroom for me, being able to see these ninjas overcome physical obstacles but knowing theyve had their personal obstacles that theyve had to overcome thats inspired me to be able to assist people, motivate people to overcome the obstacles in their Life American thing wra warrior has been a true, true platform for that i embrace that, being able to overcome obstacles we see that in the marketplace thats always going to happen. How do you overcome those obstacles . What weve known, whats always true is patience, right . Being able to ride it for the longterm plan, the long haul. I agree with that i wrote a book billion dollar mistake because i think you can learn from your mistake and the mistakes of others and dont do the bad things they do learning from those mistakes are much more positive for me than focusing on what im doing well. So its a somewhat different perspective but a shared perspective in terms of your difficulties and your strength. This is so true in the nfl locker room. Theres nothing worse than going nothing worse but better than going monday morning. You know monday morning after a sunday football game, you have to go watch film on monday morning and the coach is going to step out in the front of that meeting room, in front of the whole team and call out what you did bad. This is horrible this is bad. And youre sitting there, especially when its your time to be called out oh, my goodness, i cant believe i didnt make this tackle, didnt make that sack and youre feeling embarrassed in front of your team but you learn from that billion dollar mistake. I love that. Its from that point you get better. My kids already loved american Ninja Warrior. Now they can see their peers, 9 and 10yearolds, 11 and 12, 13 and 14yearolds american thing gentleman warrior jr. I cant wait for it it is going to be epic to see these kids fly around on american Ninja Warrior jr. , given them a platform to succeed in what they love. Cant wait to see that. Thanks for having me. Good luck with the book here it is yet again for more invest in you go to cnbc. Com invest in you one last note, we should note Nbc Universal and Comcast Ventures are investors in acorns record highs, another unusual rally has taken hold well tell you about that. First, kelly evans, whats coming up on the exchange is this. I love akbar, by the way. I watch a lot of Ninja Warrior. Take big tech out of earnings and the growth is at zero. Are investors missing major warning signs . From sin city to spin city, next democratic president ial debate is tonight with Mike Bloomberg debate is tonight with Michael Bloomberg making the much anticipated debut. Well hear from his campaign cochair of what to expect, a lot of questions for mike nutter today. The 13 cereal an to infinity and beyond it is all ahead in rapid fire. I will see you then. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk while our competition continues to talk. When yowhat do you see . Itical issues facing our world, we see breakthrough medicines getting to patients in record time. We see harnessing natural gas unleashing the promise of clean energy. We see engineers simulating the future to improve today. 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Options almost as high as the underlying stocks, the highest level in at least 14 years. It is unbelievable, scott you think thank goodness that we have this relationship because this is something that we have been talking about for years and started in the financial crisis and going back, a quick thing of a chart, 1992 i started in the options business we traded 8,000 contracts a day. With cnbc, 11 million a day. 20 million in 18 and in 2020, 24. 5 million yesterday yesterday 25. 5 million end of january, 33 million contracts. It gives you some insight into where volumes have gone. Bob pisani hits on it all the time the New York Stock Exchange volumes lower. Ever since the financial crisis the acceleration in the world, leverage and thats where we are. Im lucky to have been there im in the derivatives world every day and talk about trading versus investing im generally in the stock itself but when its trading and trading time, im trading the options and especially when the volumes get lower, this is something people lose track of when you look at the implied volatility, excuse me, getting that going lower, the volumes go higher that means less premium to those options and that gives you even more flows into that world. No big surprise, tesla, amazon, google, microsoft hit the highest volumes in january call buying dominating the rise in activity. No big shock. I will also say this. In a name like tesla it is almost impossible to trade the stock. You look at these moves day in and day out, ups an downs, up 7. 5 you have got to be in the options there. You want to be in the options because thats where youre going to make your money the options move faster than the stock. Its not like theyre super cheap. No. As a matter of fact when i talk about implied volatilities, most are low. Teslas not one of those nesam thats a high torque but risk reward, the place to be. Quick break final trades are next. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk while our competition continues to talk. 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. Try to win by attacking, it is already working now, we know the trump strategy distorting, dividing. Mr. President it. Wont. Work. Newspapers report bloomberg is the democrat trump fears most. As president , universal healthcare that lets people keep their coverage if they like it. A record on job creation. A doable plan to combat climate change. I led a complex, diverse city through 911 and i have common sense plans to move america away from chaos to progress im Mike Bloomberg and i approve this message. Want to remind you tonight 7 00 eastern cnbc, special report on the coronavirus. It is called outbreak coronavirus. 7 00 p. M. Eastern here on cnbc a couple of things before finals gilead and right. New buys . New buys. Calls or stocks calls in gilead i have gotten out of some calls and own some i have a position in both. Utx, i like the name because theres a variety of reasons but i think greg hayes is doing the right things its pulled back a little bit. Its in the channel. It breaks down i might be concerned but i think it is holding up. And the xlf. I bought it on the print, ppi. Pretty hot number and sold down yesterday. So its a trade. Wont be there forever lets do final trades farmer jim not just doubling down on intel but that is my final trade. It is funny. Ever since last Quarterly Report it jumped to you did it yourself go ahead, jimmy give you auditory gold here. Consolidated. Ready to break out. Go find your Obstacle Course, jimmy. Im going with sonos. I like this one and im in it. T readyne. Good stuff. Thank you for watching the exchange starts now. Thank you, scott. Hi, everybody. Welcome to the exchange. Im kely evans zero, the Earnings Growth this season excludeing the Big Five Tech Companies is this market too top heavy what happens in vegas . Michael bloomberg hits the debate stage for the first time. And purchase particulalysis ande Bloomberg Business and coming up today but we begin wit