Legendary radio host great to have you here. My pleasure to be here. I should be getting ready for a show but thrilled to be here i watch you guys every day as i said for years and years as a guy who likes to dabble in this stuff, but i watch you experts all the time and yell at the screen, especially cramer. I was going to say thank you for spending the first day of the rest of your life for us. Looking forward to it for months pleasure to be here. You love sports but you love the market really into stocks. I had a guy who used to handle all my stuff and now i do a lot of it myself and i learn a lot by watching you guys and i watch religiously. I watch at 7 00 in the morning and him when he first comes on and at 12 00 when im getting red for the show every day we watch you guys. Certainly appreciate it a pleasure to have you. My pleasure. Jimmy, everybody wants to know as we hit new records across the port, another 200point gain, were a little bit off that how high can we go look, i look at that market as, again, from the bottom up, and we get these earnings that bump, and i am sitting here putting together a list of Companies Whose earnings get bumped by tax reform im telling you, guys. You can just you can just have an analyst come out raising numbers, raising numbers, raising numbers, so the answer is substantially higher because the amount of stock from the companies that you can raise numbers for, and were talking about companies that have been buying back stock for years, e 3m, okay. You can imagine theres no supply of a honeywell. Theres no supply of a caterpillar so the answer is the industrials themselves, scotty, much higher. Look, the industrials, transports today new high, alltime high since december 4th. First time but long time for the transports. Very nice. You were waiting to say that. I love you too much to have that be me first goal. I cant do that ive got to do first time. The point youve made, jimmy, on the air and that the point youre making again is numbers arent high enough. Exactly look, we still trade on earnings estimates. You know, lets say youve got a Wood Products company, a k chemical cap, domestic company, tax rate way too high. Next thing you know youve got a 92 stock and people are saying why didnt i buy at 868 and the answer is because they cant buy at 76 and thats a pretty crummy reason why not to pull the trigger. Pete . I agree with jimmy. First of all, we heard so many poem talk about the idea that this is all priced in. Tax reform is completely priced in hand meanwhile were up another 3,000, 4,000 points. Its hard to tell because the market has gone up so much and continued to go up. But we know the facts and fundamentals we note the earnings have been strong we know weve seen that growing and we also know that if, but it was still an if, and its still quite frankly an if though its getting a lot closer finally, but if home depot is paying 35 and suddenly it goes to 21 . How does that look for home depot and some of these companies that are paying 30 plus and it goes down to 21, scott . I mean, we already have the fundamental story, its there. If you can compete and youre anywhere in the retail world, if you can compete online and youve got growth and you see whats going on around you and youre smart enough to be able to navigate it, thats a win. Yeah. Josh, you know, im sure we all have people, i know ive had people ask me where do you think the market can go from here. Yeah. Its hard to not be in the camp of cramer and najarian just given how the thing looks right now, right its interesting. We take two different paths to get there but we arrive in the same place im not a bottoms up im a top down, and what im really looking for is confirmation when you see the s p have an amazing year in, you know, 2015, 2016, the rest of the world kind of lagging behind you say to yourself, this might be a little bit tenuous, but then when you see the breadth of the market beneath the surface pick up and to cramers point, look, we cant even fill the wilshere 5,000 with stocks anymore. 6 up publicly traded companies. I know. And theres more demand than supply. Some shortage. And what are corporations doing in response . Goldman sachs says the s p 500 companies are going to buy another 500 billion worth of their own shares next year adding 2 to earnings, so corporations competing with people, competing with Pension Funds to own the same asset, and the Earnings Growth is obviously an important part of the story but multiple growth is happening as well and i think partially explained birks and i know this sounds ridiculous, theres a shortage of stocks contrast this with the rig rally we had at the turn of the century. We had the opposite of a shortage of stocks we had 700 ipos in a year swamping the demand. The ducks were quacking and the Investment Bank said, well, lets feet the ducks thats not taking place. In fact, its the opposite combined about the Global Economy and all country index hitting a new alltime high. What i hear its almost pointless to have a debate whether you should be in small caps versus large caps the way the market is acting now and the way it could act in the months ahead, just be in the s p and a lot of other areas dont get so granular and say do i need to own small caps pause they will get a bigger bump because Big Companies will pay less in corporate taxes and that will filter down to their stock prices whether they put money in Capital Investments or they buy back their own shares. All boats will probably rise in this environment. I agree with everything everyone said and to me the markets right now are the greatest potential to go parapublic and thats the beginning of what is about to happen but i still believe in selecting stocks pete and i have been talking financials over the last couple of weeks and thats where a tremendous opportunity is right now in the financials themselves and in some of the value plays coming back. Jack talks all the time about the russell. Look at the move that the russell has had over the last couple of days, and, jim, you pointed this out this morning. A lot of the losing names out of nowhere. At the end of december, they are back in favor. Everyone wants the losing names and the last thing is we did price in yet the infrastructure bill because thats going to be the conversation in january. People will say it is. Well hear it. Lets turn the tables. 30 years you sit there and you take questions from people. Yeah. The floor is yours. I mean, im sure you want to know things about market or stocks. I have two big questions. Number one, this is the one i think Everyone Wants you guys to answer everyone has made money, no matter who it is unless youre a total dummy. Even ive made money the question is Everyone Wants to hold on to their money but how much should they chase whats going on . Should they be fully invested or take some of their prest go up every day . Is it like am i missing the boat on more substantial gains versus what ive already made and how do i Probate Court it whats the risk owe reward . My answer is you always want to be in the market, in 2017 going are into 18 these markets are more liquid than they ever have been and i laugh when they say its analogous to 2007 because the leverage in 2007 is nowhere near the leverage in 2017 the leverage is in the Options Market which is a good thing which means you have controlled risk to me until leverage gets out of control, mikehour not really looking at ringing the register, youre staying with something thats working because it can work way longer than you ever expected mike, the biggest point i would say is youve got to educate yourself more in the derivatives market, into the options world, and the reason i say that is forever ive talked about when volatility gets to a point you have to protect yourself that way you can still go to sleep at night and you can sleep well knowing that the fact that at a 9 volatility which is where we are for the vix for the s p 500 is extremely low that means, in other words, your insurance on your stocks is as cheap as it can get to it could get a little cheaper but its dang cheap right now. I dont do options. To protect your portfolio. Thats a good point. Im we dont talk about options on mad money because im concerned about the average guy. Right. And that by no means to denigrate the average guy. I think that you are on the field. A lot of people i see are in the stands, and in the stands people are never going to be as informed. No question. Its just not right but as to your point, im in your camp. Listen to all these sports metaphors. Got a whole bunch right here on the script. Were taught like that, but i dont mind this idea im looking at a lot of the Nasdaq Companies and they have had big runs and they are not moving, why . Because they issue stock as quickly as the industrials take stocks back, so on the idea that there are things to sell and we do catch downdrafts and wed be foolish to think that at some point we wont get a couple percent decline and well get into ones that are much more attractive. I think mike is asking a different question i think hes talking Asset Allocation and not just what the market will do so let if youre a guy thats investing, should you be 50 in, all in so i think from a Wealth Management perspective which is my day job, the way and we get that kind of question every single day, every day. Right. The way to answer that question has to its got to be a personal answer because nobody really knows, show the last two years you have 17 annualized returns for the s p historically that is that is not an aberration but its not probable, and the idea that were going to have another two years of 17 annual return, like nobody would look at the history of the market and say, yeah, its very likely that thats going to happen so the answer has to be how much money do i need to spend over the next 20 years . Let hope 30 years, right, but reasonably whats my cost of living what is my best shot at earning that return, and the answer cannot be just s p 500 at current multiples. The answers got to be emerging markets, got to be european stocks youre paying less for the cash flow that those assets are going to deliver, but u. S. Stocks should be part of the picture, so its an allocation question. Yeah, but but a timing question. Not enough cash in that look, im a big believer that were all going to live longer i hope that. Yes. But i do know theres a lot of people in terms of knowing yourself im a guy who says, listen, can you have 15 stocks when youre when youre 70 because of how long people live, but i im conscious of the fact that people dont hear the first thing you said which is if you need the money. Well, of course. If you need the money and they have to understand that that you are i towed totally agree. The nasdaq just crossed 7,00 to mikes question. Its a runaway train. Exactly i think with respect some of your answers are trying to be a little too cute. I think that jimmy is on to it in that youre asking simply do you let it ride . Let it ride. Or do you cash some of your chips how the . Im a cash some chips guy my mom used to gamble, okay. She loved gambling and when she hit it she said lets take that money and go buy a cashmere sweater. I can give you the answer to your question. I agree with jim. Mr. And mrs. America by and large are not wellversed on options maybe. Right. They are not invested wholly if through options. Right. They lock at their statement and look at the nasdaq cross 7000 today, another high and look at the dow getting closer to 25,000 and say, oh, my god is this thing going to really explode or do i need to take something off the table . Well have a roll in the options world. If i have an option that doubles i take half off. Bingo. Because the rest is money thats sitting there thats a discipline and if it gets cut in half im going to be out. Ive said that millions of times over at that telestrator over there for you. But to answer your question more clearly. What are the best areas, scott, and we talk about this all the time whats the Management Team whats the valuation, and is there growth you know which Companies Come into that, intel, you look at the banks, you look at microsoft. If youve got growth and youve got a low pe and youre and youre buying back shares and youre getting a dividend and all of those things come together and you like the Management Team, you own those stocks you dont get rid of those. You can have all those things in place and have a 20 in the market and doesnt negate any of the truths you can say intel is a Great Company in january of 2016 and by midfebruary youre off 19 for no reason so mike is asking what do i do now . Stocks keep going up ive made all this money. Youve got to be fundamentally in the right area. Youve got to fight greed. Depends on your risk tolerance. Let me ask the question that everyone is asking if youve missed the boat on this, is it too late to jump in . Am i going to get cult off at the knees or can i still jump in the a dollar cost average, dont take everything that you have in cash and throw it by the way, we are 10 above the 50week moving average in the s p. If anyone looks at a chart anyone looks at the plots, what that looks like, almost every instance is a pullback thats how extended this rally has become. Thats what we have to worry about. Ill say this, too. There is opportunity in this market almost every single day and oil give a great couple examples if wells fargo gets sold off for the wrong reasons, great opportunity, and best buy, if they have growth in the right spots and you can go through a whole list home depot two months ago got sold off in a great number and thats an opportunity in a market going straight up that gives you the opportunity to get in. You dont want to be too granular. Theres not an absolute answer. A guy wants to invest and not in the market, what does he do small smart. Add over time and be optimistic. Optimism is key you are iconic and ironic. When you listen to us do you feel what an irony where are these guys now where were they in 2008 . Ive watched you as you come along. Things change. This thing changes day to day. Every day is a new day for you guys. Thats right. Something could happen tonight, something could happen around the world tonight and the market could be down 20 tomorrow morning. And we could change our minds. Every given monday night, thursday. It is a perfect segue to our next conversation because our allamerica survey is showing record levels of optimism and participation in this stock market cnbcs senior economics reporter Steve Liesman has the numbers, steve . Scott, thanks very much really buoyant attitude of the general public, by the way, when it comes to the stock market for the first time in the ten or 11 years weve been doing this survey, 50 of the public says now is a good time to invest you can see whats happened to the percentage who say its a bad time 29 . Let go all the way back through the boom market. They didnt cotton to the stock and now they are lets lock at attitude of stock market by portfolio size, those with no investment, just 31 say now is a good time a less than 50,000 in stocks, 61 . Those with the most money in stocks, and when i look at the change, folks, the biggest change is right here in the middle and then another record to tell you about. We average this for the four quarters 53. 5 of the public now owning stocks, up a couple points in a year and those who favor the gop tax bill, 70 say its a good time to invest whereas 43 who oppose it say its a good time to invest. All of this taking place in context of much better attitudes on the economy again, for the first time. 51 saying the economy is good or excellent and 41 , second or third record here saying that the outlook for the economy is good, and thats the context for the stock market and scott, of course, being on with you and josh and joe is great, but being on with mike mike, first time long time, man. Thats all i can tell you. First time long time. And i dont agree with anything that he said. That data illustrates why Retail Investors over time kill themselves in this game. That is every single bias. That is every single bias that works against us the higher the stock market goes, the more people are optimistic about it. Yeah. So thats called the recency bias where we look right now everyone thinks the patriots are invincible forever the same kind of thing. And the giants cant do anything forever. They need to take a look at the availability bias. So the information most easy to israel right now is the information we weight the most people should be optimistic when no one else is. One other thing to add to that, what bothers me is when people make decisions based on politics because people for political reasons we saw sat out the earlier bull market and now they are in when we separate it by party, scott, josh, we find people that are much more into it because they are republicans versus democrats thats working now, but it didnt work back then. They said george w. Bush was the business president , has an mba, ran corporations. We had a lost deng aid for the s p and nobody made any money. Obama was antibusiness, s p triples. So many other variables that come in that who is the president or what is the congress makeup, its probably the worst thing that you can pick other this astrology to make like as et allocation decisions. Back in the dotcom days everybody talked about stocks and now i dont go anywhere where poem talk about stocks bitcoin. It is what it is more than anything else. Poem havent jumped into this market the way they did back then. The exuberance is not there youre asking an interesting look, all four of us here, we define, we know who we are i know my roots, who i am. Jimmys roots were as a trader, if im correct, trade. Petes as a trader josh, a trader the question you have to ask yourself what does mike want out of the market and what do you want snob do you want to be a longterm investor or trader i want to be a longterm investor but you dont want to get in at the top and every day you feel like you missed the boat. Does that information that liesman gave you make you more optimist snik. Im confused about all the surveys and money on the sidelines. Supposed to be a record amount on the sidelines i see people in cds and earning the cash because they are scared, and i think the way to deal with scared is to start small. For those of us, my daughter, 26 how much should she be in stock . The answer is all, but if when someone is now past uniform and well talk to her about it tonight, but i do believe that the average person who has say 10 to 20 , that person has to wait for a decline and im not talking about a big decline. Im talking about a decline of 3 to 4 so they dont feel like they came in at the top. I dont think that as many people are out of the market as some people like, i think you dont think so. Heres how i see it it. Mike made the really important point. It felt like fun in 2000 it was the national pastime. What people are doing now, if you look at 401 k balances, trillions and trillions coming in but they are not investing. They are in the missionary position its etfs, vanguard, all the flows are going up. Not a reference im a chart guy. Its a chart formation. No one is fetishizing nvidia. Look at the gains in the stock. Nvidia, isnt that a fet strategic defense initiative. People arent talking on the street corner. Nobody knows my talks name is nvidia and i said nvidia, come here. People look at me like im strange. Nasdaq 7000, its close to dow 25,000 if thats not euphoria, and im not saying it, what is euphoria going to look like since were talking about what 2000 and even though well, we lived through it. Does it feel like it . I stood on the Trading Floor when cisco was trading at a couple hundred pe. Thats what those things lock like this is a different market all together so whenever everybody wanted to compare the nasdaq. Euphoria is happening in San Francisco when uber is worth 70 billion. Of euphoria is happening away from mom and pop mom and pop have been excluded from it to their detriment so far, but if that blows up and thats real the real nut job valuations are, i dont think mom manned pop get hurt. The key is know who you are, and if you know youre a trader. Im still a trade, but if you look at my portfolio right now, scott, and you look at the stocks that i have versus the optionles that i have, its almost a dead heat im getting older, mid50s ill still a trader and unless something changes, ive owned apple forever and microsoft since satya came in there. Theres names im willing to hold on to for extended periods of times, even though im a trader and some of these are five, tenyear type things. Its amazing. There was a time when 2000 when i didnt want to go to a ball game what do you think about akamai, apple . Yesterday at the eagles giants game and no one asked me a stock and people would ask me about foles. Foles, i would try to hit it up. Fole doesnt come out its amazing its irrelevant. They are irrelevant, and before it would be foles was reduced to the pink sheets and now hes back he trades on the nasdaq and he rang the opening bell this morning. And back then everyone was trading, jim everyone was trading they were doing it themselves. Qualcomm on earnings would go from 450 to 550. And now the money goes to ishares and vanguard i agree. Let focus on taxes for a moment the house could vote as early as tomorrow on the tax bill it would be followed by the senate ylan mui live in washington on what to expect over the next couple of days from a calendar standpoint it looks like republicans do have this locked down. Well hear that the house will vote early tomorrow afternoon, though that time line is fluid the senate could also start its process which takes a little bit longer that could begin as early as tomorrow as well republicans in the senate do appear to have enough votes to pass this even without john mccain he haves back in arizona after spending several days last week in the hospital for side effects of his Cancer Treatment and he said thanks to everyone for your support and words of encouragement. Im feeling well and looking forward returning to work after the holidays now another senator who harps been bottling Health Issues is thad cochran and he is in washington and plans to vote for the tax bill we still dont have confirmed positions for a handful of senators who have about on the fence. Senator flakes office says hes still undecided and mike lee worked with senator marco rubio to expand the Child Tax Credit he treated that that increase was a big win and is reading the final bill and will hopefully vote for it and Susan Collins applauded several changes, including expanding the state deductions and getting rid of the first in first out provision. So, scott, they sound supportive and to give you an idea of how confident the white house, is they are still hoping to sign this bill into law by the end of the week. See how it all plays out. Back to you. Were just Getting Started here. Heres what else is coming up on the Halftime Report. The tweet storm, stock is jumping bigtime after one analyst says its time to pile in the call of the day is next. Before the break, our data partners at kensho say buy europe after the euro stocks 50 underperform the s p for the hear t Halftime Report with scott wapner and the traders is back in two minute. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. Let out your inner child at the lexus december to remember sales event. Lease the 2018 es 350 for 319 a month for 36 months. Experience amazing at your lexus dealer. Another day of work. Why do you do it . Its not just a pay check, you actually like what you do. Even love it. And today, you can do things you never could before. Youre developing ai applications on the cloud. Finding insights hidden in decades of medical documents. And securing millions of iot sensors. So get back to it. And do the best work of your life. Hello, everyone. Im sue herera heres whats happening at this hour were going to show you live photos because we have breaking news south of seattle. This is from the nbc affiliate in olimpia, washington that is the train, an amtrak train number 501 derailing on that highway overpass. It fell on to cars below there are reports of multiple injuries there are reports of multiple fatalities the derail president occurred about 7 40 a. M. Local time we do understand from the sheriff who just held a News Conference youre seeing those two cars hanging over ide i5 southbound there are three other cars reportedly on the other side of the overpass that went into the woods, so we are expecting another update in about an hour. Thats a look at the injury staging area just off of that overpass, but we expect multiple fatalities and we know theres been multiple injuries. The worlds Busiest Airport is coping with the fallout of a massive power outage more than 400 flights at atlantas hartz hartsfieldjackson airport yesterday. 11,000 passengers were stranded. Espn president john skipper is resigning citing a substops bows problem former espn president George Bodenheimer will return until a pefrmnent replacement is found and sarah palins oldest son in trouble with the law he was arrested for felony assault and burglary the incident happened on saturday two years ago he was charged with assault well keep you posted on that developing story south of seattle in olympia, washington they will hold another press briefing in half an hour. Im sure you would address the skipper thing if you were on the air but what do you make of whats going on at espn . Ive had a lot of battles at espn through the years and things have changed tremendously they were once the most powerful entity because they had an advantage that no one else did they got paid per month and were able to sell spots so they were able to double dip and had an amazing war chest. They could have owned everything at one point that day is over completely different viewing patterns and everyone is breaking the way they did it cable is dead, you know that so they will never be the powerful force they will just be a regular player now, but they will never be the force they were ever again. Do you think that there ultimately will be pressure on rights fees . We know the sort of problem. They paid a lot of money for a lot of properties that they have. I think the leagues know that their future is with apple and google and amazon, and they have all the money and thats where they will go, and the way we distribute it is about the signal where you watch is up to you you can watch it on a little screen or on a huge screen but its going to still be the rights fees will still be enormous for sports because its live and its unscripted its the most important content that you can have on television so it will always draw enormous amounts of money. Twitter among the companies doing deals in the big leagues. One of the things, i go out west four times a year, people with the companies, facebook and apple, they dont follow sport i literally thinks thats why they havent gotten in yet when you troy to talk to them about sports they lock at you like youre some sort of dumby they havent needed it. Its going to happen am soviet republic and google will get involved. They will bid next time around for the nfl. The i go who is in charge of all of the tv and media efforts for apple is eddie queue with courtside seats at the warriors. It will happen. Its the best content there is because its live and unscripted and you cant get that anywhere. One of the reasons we segued to twitter, anthony noda was the first guy that told me. Throw that twitter chart up. He played football at army, okay he worked for the nfl, amend hes actually in the stock business, and thats what they need more of out there. Twitter is our call of the day. Jpmorgan upgrades it to overweight the stock has exploded recently, and i dont know why. Shortage. What else are we going to do . It finally came out ill make a bet with you i bet you snap crosses twitter on the way down. How many we dont have that many winners in social media, and i think the door is closing. I dont think you can start up a social media we used to think twitter would be myspace none of these upgrades, including dougs excellent one, havy with talked about the fact that politicians use this thing to reach people. Its working. The stock had run into earnings and fell off a little bit and i had been full disclosure, added more twitter last week, but i said so now they return to mau growth and now they are forecasting this coming year which will be the first full year of gap profitability, so if not going away then they force the street to Pay Attention to them if they were going to fade no oblivion like groupon and zynga, thats a different story, but if they are not going away and growth has resumed on all the important metrix, youre forced to Pay Attention to the fact that they havent disappeared, and ialso have said, and i still think this, that advertising firms dont want the duopoly. They dont love this idea that they can only go to google or facebook to reach 85 of the web, so if snatch and twitter are going to be real alternatives, advertisers would prefer to spread their bets rather than be beholden. Everybody knows that in every vertical twitter for that reason deserves our attention. Whereas people were buying the stock because they thought it was a takeout candidate, are people buying it on fundamentals, fundamental improvement. One of the great things about your show is ordinary people call, and twitter is ordinary people being tough on us at what point do the people who get tweeted at and harassed just say the hell with it, im not going there. Everyone goes there dewitt fwher o twitter in our business, everybody uses it. You have to weed out whats real and whats not the different categories for me, different ones have businesses there, but from the standpoint of this, i always felt this stock was the worst run stock in america because they should be indispensable. In sports and Business People would pay anything a month for twitter because you need it. Everybody follows it every middle of the day so its like a running 24hour news stream of information. What they couldnt figure out you dont own it . I dont im not own it im a twitter subject. I dont ever go on twitter. I think what they did wrong and they have now really come a long way to fixing to your point, they never made money with this and facebook is making that you will money. The big difference is on facebook most people are themselves and have a lot of personal information on there. Twitter is like hit and run stuff and it turned people off, so today they just instituted for the first time rules where twitler kick you off based on your activities off of the site. If youre a neonazi and youre involved in some of these hate groups or terror groups, twitter will look at that and decide that you cant be on their platform. It costs money for them how do they do it what is the cost of Kim Kardashian say i will no longer post there, its all filth being directed at me or lebron james. They allow the fake account they alou there to be ten fake accounts in my name and everybody has had that and theres so much nonsense our produce remembers on there all day. Moy producers are on there all day. Im not, but he is where everything is happening. You get a lot of information. Can you boy the stock do the stories really change. Im buying some fabulous meat for the holiday, canning root ive got python. Bison, all these things that you never thought about eating, right, and i take a picture of it and my wife grabs the phone and she goes enough, enough cant you just enough and be in the present and i said listen, im completely mindful this is ridiculous why am i attacked im mindful as all get out, so i think that theres going to be some sort of compromise. Oh, my god. Social media is having no impact on the social fabric. Im just saying. Got to be able to take it. I know. There owes up more element to why you can buy this stock last week we talked about this i bought the stock and the reason is this has not been a qq quant name this is now a quant name roku, someone is in my ear. Im calling you roku. Mike is not in the stock. Mike is not on twitter mike doesnt even own the stock. Should he be in the stock today . Look, i think facebook theres a lot of mike out there who said this thing is the worst thing ever who are now living at 30 in three months saying okay, maybe the story has changed. Not 330 Million People on twitter. Market cap on facebook is 500 million. To mikes point theres at least 30 or more fake you a counts on twitter just think about that for a moment in determines of when you see growth and the rest of that. At least 30 have got to be fake. On facebook, none. They had thats blankets. Looking at my wife, what would Virginia Woolf do . I dont know what she would do but she ordered a lot of oil of olay and heavy blankets. They put the ads in. What would Virginia Woolf do, wrinkle cream . I havent thought about it that much. That surprises me up next, pete follows bullish options moves on a teen retailer up 20 in a month. Alimrertisacin hfte po bk two minutes. Feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. You myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Im not really a, i thought wall street guy. Ns. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade [lagale force winds,s absolute chaos out here accumulations up to 8 inches. Dont know if you can hear me, but [monica] whats he doing . [lance] can we get a shot of this cold front, right here. Winter has arrived. Whooo hahaha [vo] progress is an unstoppable force. Brace yourself for the season of audi sales event. Audi will cover your first months lease payment on select models during the season of audi sales event. Oh, were pack on the Halftime Report. Jon and pete are tracking unusual options activity at the telestrator today. What have you got for us today, pete . Im got jim with me. Im nvidia period im changing my dogs name to mining we dont talk retailers very often. Target is up over 10 in the last month and best boy up 16 and home depot up 16 . Gives you a little idea. Retail is not getting killed by amazon even thought the world wants to tell you they are heres another name. American eagle take a look at this. See this chart when all of retail was basically getting bashed and then it started to make a huge move since november i think this thing is ready to break out. The options are telling meet same exact thing the may 20s, going all the way out to may, jimmy. Buying a little bit of time. 10,200ch these were bought for about a dollar so pretty aggressive not a name that comes up very often for us we dont get a lot of retail names and get some in a while. A lot of people like to dabble in names like macys and some of these other ones and American Eagle. Fundamental Balance Sheet unbelievable. And survivor. And survivor with some yield at well. And people have to recognize, childrens place, when you get the survivor, people buy there, and by the way, you go into this place. The stuff is not expensive, okay they are in a good position in the mall, and remember gap is a fraction of the mindset of millenials that American Eagle is im a buyer. I think youve got a great one here. Jimmy, let me ask you quickly. Has this turn in retail that weve seen recently . Anything more than seasonal . It got cold i keep thinking about what macys has been telling me and others are telling me. Theres people who have jobs there are people who want to spend. People are going out, and you know what, this is a changed place. Our countrys got a level of optimism that i just love, and when he wither optimistic in this country, what do we do . We shop. We shop by the way, real quick brands are so important because brands make you. Target, part of the reason that i think this stock has been moving it lately has been the fact that within the stores their own brand, scott, thats been something big. These guys, by the way, this last chart when we had American Eagle up there, had a lingerie brand up there absolutely growing off the charts and thats killing it right now. How about l brands, can they come back . Got competition finally. Thanks for calling me jimmy, scott. That was great you didnt call me jon you didnt call me nothing an dont call me late for dinner. Come on back over here im calling you over here. I want to go through your portfolio a little bit, mike. Okay. How long have you owned amazon long time, years. Apple even longer, very long time, but ive added a lot i like apple a lot Going Forward. Amazon, the only thing that i think can stop them is the Justice Department apple amazed me. The stores are packed and my kid always want to go there and the only place where no one cares what the price is so thats an amazing quality think of and then nvidia, those three are moy biggest by far. Biggest by far. And that has had a technological moat Going Forward and those are my three biggest and i have a lot after that that you can put in and out but those are by far the biggest we joke a lot about nvidia and jims dog name and all that. What should people do with nvidia what happened is they had the better chip, better Artificial Intelligence chip and take two interactive, one of my favorite companies, they actually held back red redemption which the big game because they wanted to wait for the chip. I just think that people do not understand how brilliant the ceo is thats the chip the whole world thats the going to do ai is standardizing the eke vent of windows. Its going to be enormous. If youre working in that area. I think its going to take a long time for everybodys car to go with no driver. I dont i want to see how they are going to insure things. I dont think its possible. How do you think its going to work on the lie i dont think it will work at all. Lie not bad in the city the car has to choose between, you know let get a thought on another stock. Salesforce. Like salesforce a lot i think its underrated. I think it could go up a lot and the i like vail resorts. Ive been to beaver creek and like their company and mtn is a company that i like a lot, too, Going Forward. More experiental company. Where people go to rebrand themselves. Beaver creek is unbelievable. Yeah, it is wanted to rebrand and went to the different canyons around america. Poem thought that she was someone thats delicate. Rappelling down cliffs you guys are laughing. Its true. On instagram, some of these guys are lonely, admittedly, but, you know, but but im totally with you on Salesforce Mark Benioff is a visionary. Iveseen him on your show about 100 times . About 107. But benioff, can i just say, benioff has children owes hospitals, two of them done more to help children in this country. Very nice. I dont want to say god because thats not fair. But hes godgiven in the sense that what he wants to do is help children. We want to make mike feel more comfortable so well take your phone calls to do that. Love if. Caller taylor here. First time caller, long time listener i have a question about the semis. Is the momentum over or is it truly different this time and we ear looking at some secular growth in these stocks, particularly micron. Given what is going on with the chips lately. You guys take interest away. Mike rcron is low. They have got flash thats actually rolling over a little bi, but they have derams that are good they have the opportunity this is a call option play. Yes, it is. Which one would you do. I would just out of the money calls, give yourself a great opportunity if this explodes to the upside and intel hitting new highs. The chip space isnt dead. Very selective but not dead by any means. Josh, one thats hard and done terrible with is trying to figure out energy. Every time ive tried to get into energy i get killed i dont understand the energy part of it. I think thats fossil fuel going away. Theres going to be survoifrs. You need to see consolidation, there hose names like coverageo and diamondback and names like pioneers, enbe ron to a certain extent they will be survivors of a muchneeded consolidation in shale. Thats a commodity so its booms and busts. You pay higher prices during the boom but you have a higher likelihood that the stock doesnt kill you what about the idea that gundlach was telling me last week when i was in l. A. I like commodities . I see feeport breaking out. He was talking metals. And partly a dollar play, too. Expect the didary after moving had a little bit higher to have a move lower. Ive got an important question though. How was taylor as a questioner, but a i know that there are people that call in that should i would say very weak call. Yes see, i mean, it was a sleeper call, right . Right . Hes got to disagree. What do you think of the hey, you know, and the chips . We have a question on verizon. Lets see how this caller does. Caller jeff straus, manhattan beach, california, what do you think about verizon, the near term price prediction with the great dividends, the tax reform and Net Neutrality in the news all right jimmy, give me vz i would have hung up on him [ laughter ] i like these things i like income. But where is would monzo let that call go through he would but i would get rid of it. This is hallhey, what do yout the 30 years treasury . Do you like the treasury im sorry. Give me a quick one on verizon. Verizon, i like the income and no, i dont mean to be mean to jeff i worship you. On cbs . I think they should but i dont think they will. Somebody should. Because the market cap is too small. I didnt mean to make fun of you. Theyre both great guys and they can call tonight yeah youll get them in . Yeah. Okay. Good there you go jeff, do that. Straight ahead, final trades inudg m desk clinji cramer your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. A wealth of information. A wealth of perspective. A wealth of opportunities. Thats the clarity you get from fidelity Wealth Management. Straightforward advice, tailored recommendations, taxefficient investing strategies, and a dedicated advisor to help you grow and protect your wealth. Fidelity Wealth Management. Their leadership is instinctive. And protect your wealth. Theyre experts in things you havent heard of researchers of technologies that one day, you will. Some call them the best of the best. Some call them veterans. We call them our team. I thwell wait. What did you meetthink about her . Its definitely a new idea, but theres no business track record. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading companies see it and see it throughwith digital. Back on the Halftime Report. United reynolds mr. Butler, i know that sounds boring but one time walmart was only in arkansas we look forward to that tonight 6 00 p. M good stuff lets talk sports for a second the ending of the pat steelers game they got the call right but the rule is stupid. The rule is terrible. Its got to change if you go to extend the football, you saw it with dez bryant and yesterday, you have got to make sure you have control of the ball when you go to the ground. If it rolls youre going to lose it the call was proper by what they consider a catch which is a terrible rule. They should change it. You saw when carr extended the ball but what was unbelievable. That shallow cross from their own 20 inside the ten was terrible defense. But once the second play happened and they came to the line to spike he yells spike and changes his mind if you notice when they say spike, the other receivers dont move because they dont want to be off sides one receiver broke for him to go to the middle of the field was a terrible move. If youre going to go in the corner out of bounds fine. To go where it could get tipped was a disaster once theyre scrambled he should have spiked it and taken the field. He didntbecause brady is on the other side. I figure you probably talked about that commissioner and his new deal he got his money he probably emerges a little bit dinged from the whole process. More than dinged. Well, give me your thoughts on that. I think first of all, hes a pit bull great against the players, good with the networks. Hes the worst commissioner in the history of sports and you cannot argue with, its his way or the highway he is a guy who is a bully and i think hes done a terrible job. Hes done a decent job for the owners. That is his job he works for the owners but as far as being a face of the nfl and with the fans and players, they detest him. The owners love him. The fans and players cant stand him. Who is the amazon of the commissioner set who would you place your bets with the most . I think adam silver is the guy who forward thinking is going to be the smartest as gambling comes forward which is going to happen next five to ten years. Hes the most progressive. Can you believe where evaluations of the nba have gone there was a lot of time where you could buy a ton of franchises its a nice way to triple your money in a couple years and ten times your money in ten years. When are you going to tell the world what youre doing next maybe at least a month. We look forward to that. And thanks for having me. Because i love watching you every day and its nice to be here. Its been a absolute thrill for us an honor. Thrill for me to be here with you guys i watch you guys every day you guys have made me a lot of money. Schwab for 30 years of franjelica. Can the eagles do it . You have the rams instead of the seahawks you have the vikings instead of the packers. A different nfc and young and inexperienced quarterbacks its wide open. Are you still on that yes thanks to him. And schwab, too i would stick with both i would stick with both. All right i wanted to ask you about that because you said you bought it because of joshs recommendation. I did and schwab too. 51, 52, i think its got room its amazing. He moves the market. As for you lets do some final trades. We got about 90 seconds or so. Joe, go ahead. Marriott up to 133. Might even buy more. You like their call i love that group okay. Josh . Twitter is up a lot a temptation to want to take it off. Gone up in the last couple of weeks substantially. I am not selling any i added to it and let it ride. I got to tell you freeport is a name i love. I just took it off on friday i plan on getting back in again and i want to roll up and out. Im going to the january options. Jim cramer . I think cisco should by akamy. It has been one of the worst performing stocks out there. Buy. We gave you a final trade. You did i took the bread and butter one. Apple will have a great next six months have a big run. This is their holiday season. When they make a lot of dough. Nasdaq 7,000 jim. I dont want to be so but theres brady and theres the nasdaq. A stunning rise for what the nasdaq has done this year and it sounds like you think its doing its doing it with rapid earnings and revenue growth. So important to point out. Thank you so much again. My pleasure thank you guys power line starts right now. Im melissa lee a lot of optimism on wall street as investors wait for the tax vote in d. C. Averages hitting record highs. Now 25,000 in the crosshairs where this record breaking run goes from here the tax loophole games have begun. The tricks the wealthy are getting ready to play. A breaking news story this hour. An amtrak train derailing in Washington State dangling over a highway. Multiple injuries and fatalities are reported power lunch starts right now