Holding stronach bank of america reports tomorrow one of the biggest shareholders is getting more bullish. Ber shire seeking permission from the fed to boost stake in the bank beyond the 10 threshold. Did jamie and warren give the okay to ride the rally to new record highs why not those are the two. If knows two say its okay, who am i to argue with those two. Back to you. Back to you, mel. The jp morgan was quarter was fine and well talk about banks but put going in perspective and tangible book in jp morgan stock 120. Even i in my lame man can do the math and tell you tangible book its two times tangible book right now. That is a pretty big premium in this environment, i think. In erms it of mr. Buffett, he is actually sitting on a record amount of cash as well maybe thats why he wants to deploy to more banks but the indicator he mass looked at his entire career, the wilshire 5,000 over gdp in the united states. I mean that is flashing as red as maybe it has ever flashed ive been skeptical. Ive been wrong. And the vix below 14 to me is madness. With that said that, the market seems to be full speed ahead. Thats a vix down 40 peppers in eight sessions. Telling what you investors its been a roller coast are i think the sentiment is this tug of war back to what jp morgan, jamie dimon what banks could be telling us the biggest money center at a bank tells you the consumer is health and shending the Balance Sheet never better the bore oh or oing so high into the number and beat it thats impress guy talks about where the valuation is i dont think its expensive at all especially best in class but itsen easy to push back on banks and say theyre not all trading luke this. But looking at jp morgan on one year or twoyear basis has outperformed the s p, that tells you that banks nar run bell, efficient in capital and even when fees are in their face and there is compression in a lot of banking areas, efficiencies and cost savings and giving capital back to investors is something that works. Thats a narrow argument because you are talk about jp morgan the the investment banks morgan and foamed are down. Theyre not money center banks. Theyre trying to be like them the regional banks theyre down 13, 14 from the 2018 highs. Stuck in a range in thedown trend. Im saying i dont disagree with about jp morgan. You guys have heard me say frequently and you know like why jp morgan have a ball. Made the new alltime high. Its a good time im feeling good about it. But most of the other banks in the u. S. Dont act irk particularly well and dont shapiro the characteristics you just said that jp does relative to s p fiechd. Its a bad sign. Im saying its not a okay let me counter to that because i dont think goemd or Morgan Stanley are playing better or worships its different. But bank ever america and citi bank we can have a similar conversation i dont think those banks kept pace with jp but those, the diversified both exposure to the u. S. And Global Economy. Banking consumeren leans mortgages i like them both as well. I mean, i agree jp morgan there is a lot to like the netted interest marlanaen did come in a little bit as you would expect during pressure on rates that we saw. Loans better spread. The thing that really stood out here and in citi bank was how strong credit cards were the business was up huge for both of them appear is a tells you the consumer is really spending. Whether or not, you know you always talk about the Balance Sheet not being in as good shape. The worst in decade. Still out there spending and feeling comfortable. Thats interesting to me that hopefully reads well for retail we wont see that for a while. Jp morgan even jamie dimon as you know i love. Iris you first named him. I can do de la. He doesnt need to answer he talked about return on tangible common equity 18 . A really really excellent number but he also said look this is peak these are peak numbers yeah were not seeing forever Something Like the environment thats perfect par phrasing but there is a lot to like but i think there is a little bit of caution in there as well. And on the flipside, i actually Goldman Sachs wasnt that bad went that bad it opened down a few dollars. There was a lot ump lumpy in there marking do you know uber and private equity thats lumpy, doesnt it should be sort of ignored. I would ignore on the upside with a big gain. But thats getting interesting but so jp morgan, bank of america and citi im with tim i like bank of america and citi as well would i own them all. I dont know if Warren Buffett will buy more stock in this has been a longstanding 10 has been the threshold a rung time doo but in terms of the particular banks the arbor broadest businesses touching the consumer and the globe, these businesses doing well. In terms of Warren Buffett wanting to buy more of bank of america regardless whether or not he is allowed to. Right. Can we extrapolate this is good news for the markets sitting at 1 from record highs . I endo he no know in him wanting to buy more baepg of america is more value. I dont know im happy as a bank of america shareholder. I want to drop todays earnings weve been waiting for earning season i want not talking about woman up stories even if were talking about the top down, about bottom up but the trade deal on trds friday is not something im doing cart wheels about tp i dont understand phase one and dont nifrpg we want it but its not about us and them. Its about where is the mcgee . And is it all in right now no its not all in and in fact you could say that jamie dimons assessment of the u. S. Consumer is at peak labor i want not that cfs appear krechlt ceos are terribly kwft the economy right now. We know they are not for the stock market i want to be clear being cautious on the economy being cautious on the trade deal, does not mean that certain stocks cant continue to go higher thats what we see. I got to make the point, we were in midjuly, q 2 earnings, q 2 Earnings Period then back to you know late april, early may, that was q 1 Earnings Period, the same sort of vibe, the markets were at highs. Kind of what are we going to discount, break out to new high sns thats how i started the conversation, mel. It sets up almost identical to the prior two periods. Now back for all intents and purposes at a new alltime high we will be there in a couple of days the question you have to ask is what are we discounting, right expect aches were low into earnings we no that weve been talk bag that a couple weeks. Lets say you come in above that the early beats. Stocks manufacture move. As we make the new high, then what in . To your point i dont think ever at weekend we had time to think about the trade pl its a lot of nothing. Native an 29. 07 its a muj promise. Built up over brexit is something thats a little weird. I agree with you about can i. The only point is the last two times when we had the new high at the back end of earnings season what did we got . 7 drawdowns right afterwards usually corresponding with disappointment about trade whats different is this time we have a fed thats been easing over the tame same time. Semi conductors making alltime highs 10 . Total outliar. Isnt the automatic sign of the cyclicality and Global Economy . Weve been hearing you cant get higher but thats a great looking chart right now. Im not telling you i feel greet o great about the wrmd im telling you some of the things in the face of not good news go higher on the banks. Jp morgan two times normal volume traded closing where the previous alltime high was which i think was march much 2018 or so so much like apple who by the way apple blue right through you have a potential for a bit of a double top here it would make sense if you trade this on a day like today to take profits. But i would understand if you want to continue to ride the jpm train. But o would boy i think the restraining order is over youre good torg with jd. Our next guest has three names he says are driving to new highs. Chris vern eu a at stra teg as. I want to put in this in conteng. Back to the 2016 lows jpm was 50 it goes 50 to 120 then hits a wall in january of 2018 at about 120. And we get just two yeerps of dead money now, where was the s p two years ago . Roughry the same level 2,900. 2950 lets zoom in here to the two years of inderns lets see if we can learn where it goes next january of 18, 120 another failure at 120 another failure at 120 four or five times okanu along the way weve been unable to overcome the pry hires why do i think this different in for one the moving averages are upward sloping again, 50 back above the 200. I think importantly the yield curving is steepening. It was flattening this move and now steepening this is a change in character in this chart when we look at this range, 120, to about 90. 30 and point remaining you get a break out above 120 youre talking about a 150 stock. Ultimately thats where we think its going one of our favorite big cap bank plays second nim in terms of bellwether, deere, industrial, been at the krerpt of the storm the entire china strayed stuck here ner 170 been here before, failed in the past whats different this time the bears had every opportunity to finish this thing off four or five six weeks ago and couldnt. It on the ropes but couldnt deliver the fatal punch. Book back at the highs 170. About a 30point range you look at 202, 205 stock with a break out. 50 back above the 200. Held support 250 li 200 day upward sleeping the technical improves even though not much priegt price progress made here bank, industrials and tech this is alphabet i think this is another skpafrm process. This is a sl 800 billion Company Another megacap bellwether acting better than the sken us gives credit for 0 drawdown in spring of 18 another 20 drawndown last year opinion and another drawdown earliery this year tree bear markets in this chart over the last two years. I dont think we get a fourth. The technical improve. 50 back above the 200 held support the other day. 1240, 1250 where we trade today. Talk bag three to point range. You are looking at 1500 stock alphabet, between jp morgan, between deere these are bellwethers sending a powerful message about the market that we think its going up. Come on over, chris. Bring him over. Well bring the chair in. Come on, will. Will does an amazing job. He is a harvard grad like yourself. I know that. He went to the Actual University not the online academy. Ill leave that where it is sfl into terms of three stocks are the three stocks outliars compared to peers or representative of sectors. I think whats remarkable here is the market knows a lot more than i know or you know or you know when you look at some of the bellwethers over the last couple of weeks, across all different sectors, right, industrial, deere, jp morgan waengs. Evencity taiwan semis process the semis be samsung, big glebl belt werth breaking out of twoyear ranges now how many more of these do we need to before directionally up become the kbas case i love that the imf downgraded growing. Just as things look better, the impf wants to take the oer. For every deere there is cat. Google azmodan jp morgan there is the regional. They balance each other. I dont see these are good looking charts. Yeah. They are. And the companies probably have decent fundamentals, good valuation. But i can find another one id id argue that amaze isnt almost important than goog i dont know. You know, thats a god point. But lets rewind the clock back 12 months. Sitting here october of 2018, there was only one place in the world to make any money. Fast f. A. A. N. G. , the only game that worked. Today you have other parts of the world. Europe trading great even parts of em where the industrials for the first time in two years show signs of life. Whats notable about the sector if you look at equally rated its broken out. The average industrial is trading better than cat or bogey. There are signs under the surface that hey maybe directionally up which is the least populated call is the right one. Implicit to all of these charts, though, chris is your brought broader call that the markets will hit new record highs and well beyond a higher or. I think that is a directional move we have combination of Bear Sentiment and kwood seasonal thats a powerful or potent contextle for the market to valuey in the back half of the year. Chris veren of stra teg as. Looks like a. M. A couple weeks a, the deere 170 is the same level trading i think in january of 2018. Valuation, yoeptd, 16 times in this environment i think its a little rich they report on november 17th well see. Again if if you trade and you enjoy the run up and it has been deeson you take profits here in d. E. Coming up, the united taking flight after reporting results break count what is fueling the gains. Plus, you know from the big short, steve iceman back ready to give the next best idea live from new york city in sometimes square much more fast money right after this crowd cheering stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. The world in which we live equally distributes talent, but it doesnt equally distribute opportunity, and paths are not always the same. Im so proud of you dad. [man] i will tell you this, Southern New Hampshire university can change the whole trajectory of your life. uplifting music here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Welcome back to whipping time for earnings whiff. United and Interactive Brokers reported we begin with phil lebeau on united one reason the stock moves higher is because this is a company that beat the street by 10 cents earning 4. 07 a share the consensus for 3. 97. Revenue come in at 11. 38 billion, just shy the expectations but when you go with the numbers within the numbers, generally speaking this was an encouraging Third Quarter. A first off with passenger per available seat mile. Passenger revenue per available seat mile. Up 1. 7 in the midrange of gadeens. Pretax marj j better nan expected at 12. 1 and you know it cost slightly higher than the guidance of 2 but keep in mind, they had issues in terms of pulling back flights to china and hong kong which meant fewer seats to that part of the world. They have raised their fullyear dividedens its now in the range of 11. 25 to 12. 25 a share it was in the range of 10. 50 to 12 shares not only that they are saying they are ahead of pace to meet or exceed expectations for next years full year earnings of between 11 and 13 a share. Remember tomorrow morning life and squawk box, exclusive verify were oscar munoz ceo of untsd. We will talk about the Third Quarter and more importantly about the outlook in terms of demands on the leisure and corporate said and what they expect with the 737 max. Remember its been pulled off the schedule until early next year but already we hear rumbling with the from the aerial industry saying do we really think the plane will be back at the beginning of next year is it more likely its pushed further into the First Quarter well talk about that with obvious or munoz. Phil, is it safe to say that united guidance is usually conservative. Yeah, not wildly conservative but relative to other airlines they are considered more conservative companies when it comes to guide zbloons phil, thaengs. Phil low bow in chicago which makes the raise guidance even better look sfloog i think thats deeson. They raised the bottom of the end of the range they kbif and you a sense where the business is and visibility into 2020 which is excellent showing that they can be more efficient with their core business, which is what people are always worried about with airlines its how costs and capacity tend to spiral out of control its why they trade at multiples that bee lie the profitability of the companies over the last four or five years i Like Airlines ner cyclical as well near the middle to the bottom part of the range. Own them here. I agree i Like Airlines. Delta reporting the oer da i, not great. Sort of overdone, wasnt terrible but interesting about the 737 max thats a mixed bag when it comes back for some who dont have big exposure theyve been able to pick up extra revenue but its been expensive for delta all the time. Right its a double edged sword. I dont know how that shakes out ultimately if you are in the multiples are cheap as a Airline Multiples should be given how cyclical the business is. I like them here still long. United has been okay with the 737. Dan as a great chart up im cheating. Ha it has been in the uptrend for some time and that guidance makes united cheaper than delta against a well defined stop at this point i think ual is interesting. Lets move to Interactive Brokers that stock in the he had red in the off the lows eric chemy at the headquarters. Thats right, melissa the stock down 3 right away and now come back to flat. The real story is that Interactive Brokers down 10 since announcing eliminating fees on september 26th the company on the Conference Call a few minutes ago saying we are trieding to create the best platform for customers meaning zero commissions but theyre making money off this because with a zero commission account youre going to get your order routed to a liquidity provider the liquidity providers will may Interactive Brokers thats how the Company Makes up that money. The quarter that we just got, that ended september 30th. Announced september 26th its almost like it doesnt matter because the stock was year to date flat, basically flat now. Whats happening now starting this quarter when these changes take effect . You can compare to their competitors, schwab is up 12 since its announced fee cuts td up 7 interactive traders down theyre down its not so much what they said in the Third Quarter but what theyre doing here in the fourth quarter. Back to you. Eric, thank you eric chemy it can be argued that some of thes other businesses that ha