Not to mention the fact that sentiment appears lower than its been in years. Blame it on slowing iphone sales or the watch, which hasnt been as big a blockbuster as some people had hoped. Ceo tim cook asked about it on 60 minutes sunday night. When we launch a product, were already working on the next one. Possibly even the next next one. So josh, you got cook on tax policy, you have sentiment negative. You have apple consistently defending the pipeline. You own the stock. Whats wrong with apple . Why are we talking about it over one month, a year, since the high is being down double digits . People forget, this is a stock thats prone to the sale cycle of new products like any other in history. When they do have a cycle, the stock acts very well. In the back half of a cycle, theyre just iterating old products, doesnt act quite as well. 2012 is a great year to re re reference. Were talking about this concept. 2013, rather. The russell 3,000 was up 40 and apple was flat to down the entire year. So this does happen. If youre a longer term investor, you look at the cash flows. And then you think about the prospects of some of these new industries that apple hasnt even left its mark on yet, like television, like automobiles. You say to yourself its okay if i underperform for a few months, a few quarters, because i have the big picture in mind. Thats what ive done with apple for a few,000 person now. It feels like investors are just tired of the big picture. They want to show me whats next and show me well, what the street is doing, is theyre lowering its not just traders who have been selling the stock, by the way. One of the reasons why theyre lowering the estimates is when you look at the smart phone unit growth, as josh accurately points out, were late cycle. The comps are very difficult right now. The december and march comps in terms of year on year unit growth, youre looking at 46 . So wheres the bottom going to be in terms of unit growth and the camps thats probably in the march quarter . Second half of the year, youll get the iphone 7. But i think the most important thing, scott, why you hold apple, is because apple is in the transition mode. We are now focusing away from smart phone unit growth. Were focusing on the user base and monetizing the user base. The fact that user base comes back at a 90 repeatable rate to purchase apple products is what is going to drive recurring revenue, not transactional revenue, over the next couple of years. Apple has a great 2016 because because the expectations are actually a lot better than what the media would have you believe. Joe just mentioned that analyst sentiment is really negative. Analysts say the sell sign is overwhelmingly bullish. Let me finish. I was getting there. There have been a lot of downgrades over the last three weeks. Earnings estimates have come down from villagists about iphone sales in particular. I just looked at the analysts who cover this. Its come down for the next two years. Yet the stock, 20 off its highs, 10 , what did you say, over the last week . This month. This month. 17 since being added to the dow, maybe that was the first mistake. There actually is a correlation between that. Basically what im saying is its getting a lot of negative press. Overall, the sentiment is actually quite positive. One other important fact is the p. E. G. Ratio, point to earnings to growth. Ill finish your sentence. April shall have a good year in 2016 because in january this is a company thats going to announce record profits yet again. Theyre in the process of returning a number to shareholders that is absolutely inconceivable outside of talking about this company, close to 100 billion. At the end of the day, we dont know what their next killer product is going to be or what segment theyll tackle, but they have yet to have a misstep. I think its a really, really bad idea. No, no, no, theyve had a lot of missteps. It hasnt cost them a lot but theyve had a lot of missteps. Major mistakes. Can you think of one . The watch is a major misstep. The boom box was a major misstep. Hold on, hold on the battery is a complete got. The battery is terrible. Let me just stop you. They make Something Like 90 of all the profits in the smart phone sector. They are the only Computer Company thats actually growing the amount of computers they sell. And at the end of the day, the watch was never a major category. Its an oddon to the phone. Its supposed to be. No, it doesnt work without the phone. By definition, its an accessory. The first iteration didnt work without the phone, exactly right. Keep in mind, judge, ted williams hits. 400 and people still idolize the guy, right. Apples hitting a lot better than. 400. Hitting more like. 800. To joshs points, he said they dont have missteps, which is why i disagree. When steven jobs brought out that stupid boom box when they came out with the ipod and everybody else already had them on the street. He said, this is what you need. And everybody said, no, its not. Same thing with this stupid battery. Why apple thinks they have to have you dont own apple anymore or you do . I dont, but im going to be buying it and hes got the iphone i love the products they make. This guy who tim cook talked about last night on 60 minutes, he heads 800 engineers. These guys are taking out you dont even know how big of a, in your words, got, the watch is. But who cares . But i know that everybody matters. All the retailers were discounting it like crazy. The watch. It doesnt matter. It doesnt change the user base. The user base remains constant. Thats the most important thing. Hes right about that. We introduced six products. What about when we introduce a car at some point . Strategic missteps. They might have a product that doesnt fly off the shelves. Thats why it hit 775 billion in market cap this year. No other Company Comes close to having two decades of success continuing to reinvent categories. It would really be silly to make a bet that they wont with what they tackle next. Tim long is with bmo capital markets. Put out a note today. Joins us live from new york city. I know youve listened. After reading your note, it doesnt sound like somebody who says the street has gotten too negative. Youve cut your price target, albeit by only a few bucks. Yeah, we took our numbers down a little bit. We were in asia last week meeting with suppliers and customers. We were a little bit high for the march quarter. So we took the numbers down a little. Were still pretty meaningfully above what ive seen other analysts cut to. So i think, you know, our view is the supply chain is not nearly as negative as people think. We are believes that theres still as someone said, there are tough compares, these two quarters. But looking out several years, we still see midhigh single digit growth in iphone. Were still pretty optimistic on the long term. The near term is too negative on some of the reads on the supply chain. Last week, we were talking on this very program about this note from katie over at Morgan Stanley who says iphone sales are going to turn negative for the First Time Ever in 2016. You agree . For the year, no, we do not agree. For the march quart, were down. We see midsingle growth next year. One of the things you guys talked about there was the subscriber base. We think thats incredibly important. Were looking at that going to 480. We think they can grow that iphone. How theyre doing that is were all familiar with the galaxy s and note in the high end. Theres a few hundred million users in the high end category that do not use apple products but theres another 2 billion in the low and midtier of the smart phone market that are going to become available as those economies improve and people upgrade to higherend devices. I walked into verizon and got my newest iphone and i paid for it, basically broken out over whatever amount of months, as opposed to getting it allin subsidy up front from the carrier. What is the impact of that Going Forward on apple sales in north america . Are we too pessimistic because maybe the way theyre accounting for their sales cycle is a little bit different than what people expect going back to 07 . Theres a lot of changes in middle, in the model. It got easier when everyone was on a twoyear contract and we figured there would be upgrades then. Now with these new leasing and finance programs, it gets a little more tricky for us. So that will be more frequently. The flip side, which were going to have to learn about over the next few years, is what happens with the residual market. You may have traded in your old phone. That old phone will not be thrown away. It will be refurbished. Maybe shipped to another market. So thats going to be one of the tricky parts of this. We do think these new models for selling these devices is going to, number one, create a good upgrade rate, and number two, keep people with the higher end devices. So apple will be able to maintain their history of having very stable, if not growing, average selling prices. So lastly, youre looking for basically 40 upside within 12 months. So lets end with you answering the question, if you wouldnt mind, that i asked the folks in front of me. And that is is apple has a great 2016 because what . Well, i think it relates to some of the answers. I think since the sentiment is low, once we start to see those year over year growth comparisons get better and we get a glimpse into the new product, i think were going to be back at a point where the number numbers will be getting beaten. Certainly an interesting conversation. Thank you so much. Tim long, bmo. Wrap it up. I think were where we were exactly three years ago. Stocks bottomed out. Were off that cycle by about three months which would put us right around now to start the rally again. It was the same causes. Worries about iphone sales. I think its way overdone. You say youre going to buy the stock here . No, i think youre going to see somewhere in the neighborhood of 99 to 103 as a range where you buy it, judge. 103 was the 25th of august low. 103. 50 or thereabouts. I think you get a chance to reload around that level. Theres not a compelling product or anything else until the earnings that josh spoke of. So id say wait. You dont have to rush into this one right here. Microsoft shares have surged under that ceo. The traders debate where mr. Softy has more room to run. Star wars may be breaking records at the box office but disney is selling off yet again today. Were looking at trouble at the mouse house. And john rogers joins us. Find out how hes changing strategy now that the fed is starting to hike interest rates. Conquer the weather. Dont let it conquer you. With the capability and adaptability of lexus allweather drive. This is the pursuit of perfection. Welcome back to the halftime report. This weekend was all about star wars the force awakens. The movie breaking records left and right. How some companies tied to the movie are doing. The Box Office Bonanza really not helping disney stock which owns the franchise at the moment. The stock is moving down lower as the market momentum is weighing here. Similar stories for imax theaters. Down 3 . This despite the biggest ever domestic weekend for an imax movie. Then look at toymaker hasbro which could get a windfall off sales of star wars toys this holiday season. Electronic arts which has the star wars battle front game franchise. Also losing some steam as well. Anybody see it over the weekend . Not yet. Dont spoil it for me, scott. Its all good all of star wars good in disney stock obviously . You look at the imax don just spoke to and the peripheral trades. Theyre down as much or more than disney with the reaction to this. So i guess it speaks to the idea that maybe they got a little frothy going into it. What about issues of espn, what everybody including rich greenfield, maybe most vo vociferously seems to be talking about . To me, espn is so valuable. Youre not going to, you know, youre not going to subscribe to espn . Just from a logic standpoint, i disagree with the note. Is there fundamental value in the sense of that potentially that could happen . Yes, but i dont think its a reason not to own disney. Remember you clocked out at disney i think at like 120, is that right . Well, i did for the purpose of the contest. In hindsight, it looks like good timing, but in actuality, lets just remember, this is 180 billion market cap stock thats gone up 25 over the last year. Guess what, nothing else did either. I think it would be a mistake to make too much of shortterm issues with espn while all of the cable and content companies try to figure out what the new consumer wants. Theyll figure it out. They always do, every generation. Its never the death nell for great content. Disney is the best at content in the world. Im not overly worried about it. If youve got a longterm time horizon, youre better off being a buyer than a seller. Saying shares could rally another 30 from here. Its our call of the day. Dr. J. Love microsoft. Love what he has been doing here, judge. I think that the cloud the only people that are really in the way right now of the success that amazon has had with aws is microsoft. I think they are the cloud play, microsoft. If you want to break it out and say, okay, im willing to own the retailer that also does the web services, in other words, amazon, fine, but i like microsoft as the play in this space. I look at microsoft as one of the horsemen of the first original i. T. Revolution in the late 90s. Along with a lot of its brethren, its gotten very cheap. There are others find a lot more compelling. Cisco for one. More cash on the balance sheet. More attractive multiple. Intel, same reason. Microsoft will probably go higher here. I do think those two names are better picks. Three months, 24 i think the real headline, it is growing faster than amazon web services. Grew 135 last quarter. 1 billionplus business. We dont get it broken out, facts about cash flow and that. Because its not a standalone company. I think you have to be willing to say the relating is going to stick. Stock is up since adela took over. For the right reasons, too sure, it hasnt even reentered that monster gap from when they beat earnings. Stock can be up 40 for the right or the wrong reasons. See yahoo . Well, the my crow kro micro. The executive Management Strategy is something thats been well known. I think whats important is the technical formation for the stock. The stock finally got above 50. Thats a very compelling technical formation that gives you an easy point of reference. Yeah, down below 50. That was the existence for a long time. Yes, it can go to 60. Ultimately, it could go to 70. Coming up, gas below 2 bucks a gallon. It is good for consumers. What about companies . Which ones benefit . The cheap gas trade just ahead. Take a look at the sector heat map today. S ps up three points. Theres a look at whats leading the way. Tech and health care. Lagging. Utilities and energy. Were back right after this. Want to show you shares of twitter. The stock is trading below its all time closing low. Youre laughing. I am laughing. I still dont think you buy it. Whats the problem here . Whats the problem . How are they monetizing the user base . Have they yet told us how theyre going to monetize the user base . They have not. Thats the issue. No reason to buy it still. Theyre trying to grow their user base, thats the problem, right, not monetize it. You cant monetize what you dont grow, right . So lets grow it and then monetize it. But you own it. I dont know whats going on. I have some. Thank god i also have netflix and facebook. I think, look, now theyre going to show ads to people who are not logged in, im not sure how that works . Maybe come to your house . To dead people. If today it was announced that dorsey was only going to run square, and get another ceo who was focused solely on that company alone, what would have to happen to the stock . If anything . Wow. Im not trying to suggest something. Pretty imaginative. I dont know. I dont think its the ceo is the issue. Because the downtrend really started in april. I dont think investors the board might. The board might think he can run both. I dont think investors believe that. I really dont think thats the issue. If you look at there are many issues but thats probably among them. The big issue is the thing theyre trying to solve with product. Its a weird small group of users compared to facebook which is everybody. And its really hard to convince the street that this is going to graduate from a weird small group of hardcore users. Where does twitter want to be 18 months from now . Not at 22 bucks. Right. But have they told us in their Business Strategy where they want to be, what they want to do . They want to be an autonomous unit within google. To your point, scott, if they had made some big announcement that after careful consideration and after jack really decided he needed to focus on square, which he does need to focus on square, rather than splitting his time morning, twitter, afternoon, square how can you possibly do that . How can you possibly when either one of them is not doing well . I dont think thats it is issue. Martin shkreli was ceo of two different bio firms. It can be done. The bigger issue is you need much bigger scale to play this game. Facebook is playing it better as far as user growth. That doesnt mean it cant be fexed. Means the company hasnt figured out how to fix it. Once you stop growing, thats the big problem. How do you get the user growth going again . I dont know. And neither does twitter right now. Obviously, nobody there has really come up with a solution. Im beating it up, but the reality is, is theyre excellent at one thing and thats distributing realtime news and sports information. Now figure out how its news feed. And facilitating anonymous nastiness, they crush facebook in that regard. Consumers will be feeling some relief at the pump. Gas prices below 2 a gallon on average. Hey, jackie. The 2 range such an important psychological level for gas price. We havent seen it since 2009. Its 17 less gas prices are than they were at this time last year. Scott, looking at the futures, about 1. 20 now. If they continue to drop, how quickly does that translate to the retail price continuing to fall . It should translate relatively quickly. Why the difference between what i pay at the pump and what i see for the rbob . It should be about 50 cents to 80 cents. The big difference is distribution and taxes. But that means that rbob is really what you want to be paying attention to. Theres still all that other stuff out. Its the measure of the strength of the Energy Sector and how much Energy People are using. Its really the best way to look at the sector. All right, the street consensus obviously has been oil prices are going to stay lower for longer. How low do you think gas prices can go . How long will they stay under two bucks . This is the holiday gift that will keep on giving. We could go 10 to 30 cents lower. I dont think prices to rise. Right now, were focused on the winter gasoline contract. I dont expect prices to rise until we start focusing on the summer gasoline contract and that happens in march or april. So every dime less spent on gasoline is a billion a year in consumers pockets. March and april seems very, very long time away at this point. All right, gentlemen, thank you. Scott will be back with the live show 1 00 p. M. Tomorrow. All right, jackie, thanks. We will be there. Who will benefit from it . You have a couple names . Valero. Why . Because last year at this time crude oil was in the 50s. Crude oil is now in the low to mid30s. Guess what, gasoline is still 2 or just under 2 a gallon. These guys are killing it. They will continue to kill it because of the oversupply. Jimmy. I think the bargain retailers are the beneficiaries here. Weve been wondering where the consumer is after this socalled tax cut from lower energy prices. Weve been thinking theyve been spending on experiences. I think that comes to an end soon. Where do they first start shopping . At the discount retailers. Were talk walmarts, dollar stores, even jcpenneys. What hes been buying on the heels of the fed rate hike. Plus, john goes dumpster diving. For stocks this time. More half up next. Instead of those hasbro dolls. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. So wi got a job ews . Ill be programming at ge. Oh i got a job too, at zazzies. friends gasp the app where you put fruit hats on animals . I love that guys, ill be writing code that helps machines communicate. interrupting i just zazzied you. phone vibrates look at it friends giggle i can do dogs, hamsters, guinea pigs. You name it. Im going to transform the way the world works. proudly i programmed that hat. And i can do casaba melons. Ill be helping turbines power cities. I put a turbine on a cat. friends ooh and ahh i can make hospitals run more efficiently. This isnt a competition im sharon epperson. Heres your cnbc news update. A missing person report has been fewed for tonya couch, the mother of a texas teenager who appeared to have fled after apparently violating his probation for killing four people in a 2013 drunken driving wreck. Ethan couch was given probation after his lawyer evoked an affluenza argument that his wealthy parents coddled him into a sense of irresponsibility. Rescuers in china are searching for at least 991 people missing after a landslide. A mountain of soil and construction waste buried dozens of buildings at an industrial park. Rescuers in indonesia are searching for dozens missing from a ferry that sank off the coast over the weekend. So far, theyve pulled out 39 survivors and three dead from the water. 110 passengers and 12 crew members were on board. The faa is now requiring Drone Operators to register their aircraft on its website. To receive a certificate that will include an i. D. Number which must be marked on the aircraft. Thats the cnbc news update at this hour. Back to you, scott. One of the countrys most followed Value Investors is out with his 2016 forecast. Joining us now to discuss it and the likely winners he sees is john rogers. He is the ceo of ariel investments. Good to see you before this year wraps up. Hope youve been well. Yeah, great to be back. The fed moved. What does it mean . I think this is such a modest increase that it really doesnt mean much. Warren buffett has said if the rates go much higher over time, that would have a negative impact on stocks. If they stay within this reasonable range it sets up a terrific 2016. Even if the fed moves three, four times, as you know some people do expect, and have been certainly voicing . I think thats within a reasonable range. I wouldnt worry about two, three or four moves. Of course if you start to get much beyond that, it would have to be something you have to worry about higher rates and the ability to get deals done. The kind of things i think are the bedrock of this recovery. I wonder how you view energy. Whether it looks attractive to a value investor. Whether you think the stock market itself can divorce itself from the price of crude oil. I think its been such a negative sentiment around oil for so long. It feels to me its bottoming. And as a true contrariacontrari looking for opportunities to take advantage of oil prices own though we dont want to be involved in pure commodity. Were trying to find companies that can benefit from the inevitable increase in oil prices over time. Is there one thats popped on your screen youve added to the portfolio in recent days or weeks . The one weve been adding is bristo. They control the helicopters that help people get to offshore riggings. They also do search and rescue around the world. But its something thats so important if you want to be able to get your folks safely from one part of the world to another part of the world and have them work on those offshore rigs. Bristols the best positioned. Selling around book value. Discount to all the value of all the helicopters. But pure play energy is not yet within the range that youd say i think we should take a little bit of a risk here maybe . Thats a little too risky for our strategy and philosophy. The closest one we would probably talk about would be a company like u. S. Sillica that is big in the sand for the fracing industry. A lot of people coming ought with buy recommendations on it recently because more and more people are using more and more sand when they do those wells. So we love u. S. Silica at these values. You continue to like some Financial Services names, correct . We do. Our favorite, you know, weve talked a lot about has been kkr. We think they can double assets over the next five years. Selling at about a 50 discount of what we think the private market value is. We were out to visit the company a week or so ago and came away with a lot of confidence in the future of kkr. One stock we havent talked as much about, we continue to think Northern Trust will do really well here in our backyard. We think higher rates will continue to be a real benefit for them. And they have such a great franchise in the assess management area, the custody area, really well managed. We think its a terrific, terrific brand. On financials in general, why do the banks and Insurance Companies and Asset Managers drop like stones within 48 hours of ostensibly the first hike in the next higher rate cycle . I just think theres been so Much Negative sentiment around the economic recovery and whats happening in Financial Services. Theres still a lot of bearishness out there. A lot of people who dont believe in this economic recovery. I think thats why the Financial Services get hit when people are down on the overall economy. But rates didnt go up either. The 10year treasury yield is where it was in january. I understand that. I think its still i think ultimately rates will move up. Not only because of the fed but because of the economy recovering, automatically labor prices going up. Inevitably, prices have to go up also. We think the strong brand will do well in this environment. Media general i understand is a stock youve added to your portfolio. We dont talk about it on this show often, if ever. Tell us about it. Well, you know, they have about 71 television stations around the country. In great, great cities. Great communities. Television broadcasting continues to do very well. Advertising recently has been higher than expectations. We think with all the political advertising going on, its really going to have a terrific wind in its sails. Theyre involved with the transaction, trying to buy narrative. We think next star will come in and top the reasonable bid out there from media general. Weve been adding to it, really terrifically well priced today. Will benefit however these transactions work their way out. I hope youll oblige me a couple of questions. I was looking moments ago before you came on that there was a report out of japan mcdonalds is considering selling part of its japanese unit. As a director, i couldnt comment on any current things that are going on within the company. Just as we know the momentum around the world is just continuing to build. Things have been going extremely well. All Day Breakfast is very, very popular. I was talking to a franchisee who says its so wonderful to see this new momentum throughout the restaurants. You reported your First Quarter of u. S. Comp sales growth in a while. Are you surprised all Day Breakfast has been a hit as quickly as it appeared to be . I know theres a lot of opinions on that. Its been a pleasant its been very pleasant to see how well its been received, both within the stores and within the consumer base. To see customers coming in, enjoying the all Day Breakfast and then sampling other products that are there that are of course terrific. The momentum is just wonderful. Steve easter brook has done a great job in building the momentum here for mcdonalds. I appreciate it very much. Well talk to you soon. Have a healthy and happy new year. John rogers from ariel investment. Speaking of finding value, john has his eye on some beaten down stocks and what hes calling the dash for trash trade. A couple down huge. Many of you have heard pete say famously now this year that hes been riding a big short in freeport. Covered it friday. Stock is not making a huge move today. Its making an up move. The stocks down 72 year to date. Its catching some momentum today along with oneok. Down about 58 year to date. Those jumped out for the volumes. Im not sure if its because people are exhausted on the tax loss harvesting but theyre down on those two stocks today. Getting upgrades today, those trades are just ahead. Plus, they say it takes money to make money so what stocks are millionaires buying now . Our wealth editor with the results of his exclusive survey. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Sup jj . Working hard . Here at the Td Ameritrade trader group, they work all the time. Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. Coming up at the top of the hour, Record Box Office sales, but is the force fading with disney . Shares down again. Its becoming a battleground stock. Should you be buying it or should you be staying away . Plus, losses for the dow and the s p this year. The nasdaq still high. The misfit stocks. Will list them all for you. Chipotle shares down more than 25 . Mcdonalds up 25 . Whats ahead for the food sector next year . Back over to you. Well be there, thanks so much. Lets do our trader blitz now. First up is joy global. Yeah, they took the price target from 14 to 10. Thats really a heck of an upgrade. They cut the dividend. The market guidance is lousy. Avoid the stock. Exactly, exactly. 1410. What is that . I dont know. Tiffany, upgraded to buy at jeffe jefferies. Powerful story unfolding. 2015. I think more than anything, this is about the multiple. The stock has usually traded in the 20 to 22 types range. Thats a premium it deserves. Right now, its trading at 16 times next years earnings. Nice target. They think its going to earn 5 a share two years from now. If thats the case, 20 times that, 100. Look, i dont think you have to have that. Thats a great return. Its 20 . Do it. Okay. So i ripped up the last one. You made it rain. I did. Keep this one, okay. That one stays. Ross stores upgraded. Cowan saying the off price business is unamazonable. Amazingly. Thank god i said that, not you. Thank god. This and tj max are two of the stocks they like because of dressing for less. I certainly like the stock. You take a look. Theyre up year to date. Almost every other retailer would sell their soul to be up where these guys are year to date. Ross stores. Like it. Pep boys. Saying carl icahns accusation bid, a superior proposal. This so old school. Icahn is going this is like full sir larry. Can you do it in his voice please . Yeah, i think its undervalued. Im going to pay 16. 50. Its a no brainer. All right. Coming up, the stock that was good though, right . That was good. Stock picking with the super rich. Cant even read this now. Find out what millionaires are buying. All right. Only 7 1 2 trading days left in 2016. Take a look at the leaderboard. We know that stephanie sold out of Zions Bank Corp today trying to make a last weak push. Her portfolio up nearly 3 , but josh brown continues to lead the way up nearly 9 . Joe terranova in second, 4. 9 . Jon najarian is up 2 . Jimmy, you have some work to do. Going to try to throw some hail marys . Why wouldnt i . Listen, twitter. I heard a little bird told me, a little blue bird. A little blue bird. Thank you for that. Juke follow all the action at cnbc. Com. We really are in the final stretch here. A couple weeks to go before we find out who the winner is going to be. See if you can make a little bit of a move here, pete. And the three of us will be here all week to talk about it every day. The results are in for cnbcs exclusive 2016 millionaire survey. Where are the rich putting their money to work . The new year . Cnbcs robert frank has the story. Hey, robert. Thank you, scott. Millionaires own more than 85 of the individually held stocks in the u. S. , so their moves can have a big impact. The survey showing theyre fairly bullish but with major sector changes. Overall millionaires looking for the market to do between 5 to 10 next year but compared to the spring, millionaires are a little more likely to call for a plat market and the wealthier you are, the more bullish you also are. Among those worth 5 million or more, almost half are calling for an up market, up ten points from the spring. When it comes to asset classes, 47 will put new money to work in equities in 2016 followed by fixed income, then cash, and only 2 going into alternatives like hedge funds and private equity. If you drill down into which sectors they plan to invest in, theres a big move out of financials and energy and into tech and health care. Tech is the top sector for millionaires in 2016 replacing financials which had been their favorite in the spring and their least favorite is energy. But as josh would say, that is a nobrainer. Guys, back over to you. Robert, thank you. Josh . Yes. Millionaires are optimistic, i cant believe it. Im surprised that well, look what was the number, rocket, on real estate, 5 . Exactly. Invested real estate. Not primary residence approximates. Dont you think thats kind of low . Well they already have so much. If you look at the wealth composition of multimillionaires, the majority of their wealth if theyre not Public Company executives is already in real estate so they dont need that much more. Robert, thank you. Thank you. Coming up, what a jim up to when hes not trading . The answer may surprise you. We go off the desk with jimmy after the break. Ashley bryant, you are a teacher of small children. Thats right. I have read it is the hardest job in the world. Thats why im here. Can you. I can offer advice from the accumulated knowledge of other educators. Thats wonderful but. I can tailor a curriculum for each student by crossreferencing aptitude, development, geography. Sorry to interrupt. But i just have one question how do i keep them quiet . pause watson . There is no known solution. They are. Do i look smarter . Yeah, a little. Youre making money now, are you investing . Well, ive been doing some research. Let me introduce you to our broker. How much does he charge . I dont know. Okay. Uh, do you get your fees back if youre not happy . dad laughs wow, youre laughing. Thats not the way the world works. Well, the worlds changing. Are you asking enough questions about the way your wealth is managed . Wealth management, at charles schwab. You think you may know the Halftime Team but you only know half the story. Were going off the desk now and into jims world in todays trade off. Take a look. What i love about trading is finding an undervalued stock. A lot of mixed results or a lot of mixed indicators this week. My passion outside of my trade something my family and being out on the farm. On a farm. Okay. I did not know that he lived on a farm. Does he lifer in the barn . Where does he live in the born. We both basically live on the farm. Hes eddie albert and hes moved away from the city and so have i. This is green acres. This home with our weekend home for three months and then he said, oh, no, no, no, this is going to be our fulltime home. Im married to james. I married a city boy, born and raised in the city, always in the city. I grew up in new york city on the Upper West Side of manhattan. But i have to tell you, its such a great life for the kids. All the opportunities theyve had out here. I like living up here a lot. As a family we usually we will watch movies together or play board games. One of our favorite games is settlers of gitan. What i do is make sure that when im home, im really with the kids and with cheryl. My dad and i both love to play soccer together. I play fullback. My dad will play goalie, striker, halfback, pretty much anything that he needs to be. Are you okay . Its the sort of thing i like to do on the land that involves taking down trees. It involves clearing underbrush. Digging up stumps, things like that. Hold on, jim has a chain saw . Who even knew that about jim . Okay. I might change my demeanor when im on the show with him then. I know jimmy is a family man, and he has two children, and he talks about them quite a bit, so obviously its very important to jim. I love jim for that. I think hes one of the class acts i have met on waum street. Thanks for being a great dad. All right. Proving a city slicker can make it down on the farm. Exactly. Thanks for being a great dad and tripping me. I cant believe they included that. Im not too happy about that. I give you a yellow card for that. That was nice stuff. Thanks for sharing that. Lets end on a serious note. Im looking at another note, i want to talk about sop stocks. Airlines will remain the best of the transports says oppenheimer in 2016. Delta is their top pick. Do we agree . Jimmy, youre first . Look, i have owned airlines before, and its such a painful trade even when you make money, everybody hates you. The employees of these companies hate you, the regulators hate you, the passengers hate you. I dont like being in trades where everything goes against you and you might just make money. Im not in this trade. I think the airlines are smart if they make it about the experience. What are they giving the affluent flyer. Thats the next leg of what could be another move higher. Maybe it doesnt even have to be the affluent flyer. Maybe the airlines after making money hand over fist with these sort of ancillary costs are listening to some of the complaints about service. United is bringing back i think its an economics call at this point. By the way, airlines already outperform the whole transport sector this past year. So thats kind of consensus theyll continue to look better than the rails, but youre making a call on the economy. Good stuff. See you tomorrow. All of you as well. That does it for us. Power lunch begins right now. Scott, gentlemen, thank you very much. Welcome, everybody, to power lunch along with mandy drury. Im tyler mathisen. Forget star wars, were talking about disney wars. The stock has become a big fight, the center of one, with analysts who cover the company. Should you buy disney or stay away . With seven trading sessions left before the end of 2015, will the bulls make a comeback after a pretty rough month . And the dow showing signs of life before pulling back just a bit. Nevertheless, it is higher by 49 points. Lets take a look at the other indexes that we follow for you. The s p 500 up about aal