Power lunch starts right now welcome to power lunch kelly, come on over and deliver, the news power lunch, that is welcome everybody. Check out the rally. Its a big one today the dow and other marks kind of taking a pass yesterday on halloween. Today up about a percentage point. The dow more than 200 points higher s p back in record territory the nasdaq launching a record high as well its first since july take a look at apple which we were talking about with josh as it launches its streaming service today. The shares are up 60 . 6 60 . A strong jobs report and some encouraging manufacturing data pushing stocks back to record territory today lets get to bob who is following the action at the new york stock exchange. Kelly, we have gone from fears of a recession in 2020 to a belief the Global Economy would be a little bit slower in 2020 but todays data has taken the edge off of that slow down narrative we have been talking about. The october jobs number better than expected. China manufacturing was better than expected. As a result we are seeing break outs not just the s p but overseas europe is at a new high. Thats a surprise. Japan also 52week high. New highs in the nasdaq. Semiconductor, etf, health care, etf, Communication Services breaking out what would move the markets up significantly. 10 maybe . Higher bond yields would move money out of bonds and into stocks trade, we need to get to december 15th tariffs. The slow growth narrative positions 2020 personings, flat to up mid single digits. If we get better global data it would force traders to reevaluate Earnings Growth for 2020 it means we could argue for a higher multiple for the s p. That would help the markets as well bob, thank you very much. The jobs number sent stocks higher and put investors minds at ease. With the market at record highs the s p and nasdaq are recession fears off the table. To discuss lets bring in former mayor of new orleans, ceo of the urban league and ron lsu is doing well. They might be number one the jobs market is doing pretty well, mayor im glad to be with you today. Lot of reports on the jobs numbers being good i wanted to out line a few areas of concern think relevant right now the trade issue, you look at the farm economy, 40 of the farm economy is being supported by t these subsidies that were put in place to counter the effect of the trade, if you will, the trade barriers that were place eplace ed up, ne number two, theres report with twothirds, twothirds of the chief Financial Officers of American Cities with more than 10,000 people. That includes small towns predict a slowdown or recession in 2020. I think thirdly, while the jobs numbers are good, ty, we see a little bit oflessening of the pace that weve had for the last, better part of the last decade those are areas of concern i think what is smart is we need to be thinking about the future. Thinking about whether these are signs of at least, a slowing economy. We continue to grow, growth is down and whether, i think, the impact of trade, the impact of the trade tax, trade barriers has not yet been fully felt. Lets go to ron the Buffalo Bills are doing well too. They are playing washington they are playing my team, the redskins talk to what mayor just described here i think it does reflect a bit of a consensus growing but slow ng the economy. Certainly slowing in the Manufacturing Sector probably largely trade related but part of a global slow down what is the possible impact on the market this economy would be firing on all cylinders im upgrading from growth recession to soft landing. Labor markets is holding recently well. Devised upward. Not the way the president described it this morning. If theres some resolution and that pressure begins to lift then maybe the growth recession, below 1. 5 is off the table and maybe 1. 5 to 2. Maybe a little better and bond markets are telling us slow growth i feel like there could be a case to be made this is sort of a goldilocks environment for stocks because we are seeing some growth, albeit slow rates remain slow for this long. We have slow and growth and we have the potential upside of any trade breakthrough thats not bad right it doesnt change much with respect to an investment outlook. Youre still buying quality and those names that will do well in any environment. You talk about apple, disney, mcdonalds, starbucks, theyre all doing fine they are all hitting new highs a little increase off the bottom in growth would be a net benefit. If the dollar should weaken a bit, if we see some trade related movement there, that could be a large plus. I think you could get small trade movement but i think a large breakthrough wont happen until after the election i think the chinese are going t hold, keep their powder dry and make their determination based on long term my major concern is whether the chinese seen this environment are going to development other long term source, other long term places where they can be agriculture products those which are critical to the trade relationship within the United States and china. Our ports, agriculture sector. Theres a lot of things to be, i think, concerned act in the face of where we are now. You cant say the one thing you can say that the job market is not in good place. The job market has been consistently good for better than a decade. The growth has been tremendous as we talked about before, the challenges i see with the communities that we work in had more to do with stagnant wages housing the depressed housing market. The increase in rents and mortgages. Underlying economic structural issues the jobs market has been consistently good. We got about a minute left. Yesterday i guess e lez beth warren came out with medicare for all. It would be a radical change in the way americans are ensured and paid for their insurance what do you think . 20 trillion over a decade she responded to her critics who said put not only your plan on the table but how youre going to pay for it. Here is my concern the needs of the country are in health care. They are in education. They are in infrastructure, housing. If were going to do any sort of revenue enenhancement, the deba is when and how how the money be allocated. This would allocate almost all of it and the question is and the debate is can you improve the system without such a radical change let me turn to you. You know what Lee Cooperman has said about Elizabeth Warren that if she becomes president the market goes down 25 most long term investors have suggested if the market goes down 25 , you find more opportunity to buy good stocks that you like. If he was going to say down 50, 70, 80 , i think it would be a more consistent argument about the threat to a market based economy. Having said that, it does seem if a progress became president and ran the table in congress, raised taxes by 20 trillion over a period of time, i didnt see anything in senator warrens proposal that would deal with the million plus people who would be unemployed if you shut down the private insuranuld have to be rectified as well. Anything that is that earth shaking is going to be problematic. If somebody will tell me the market will go down 25 and rebound, do i really care when were trained to say that a 25 pull back is relatively normal and it represents a buying opportunity. If youre talking about a secular bear market thats a different conversation to be had. You could make that argument but look at it in stock market terms doesnt make it. We have to leave it there lsu over at alabama t alabama the saints deserve a break the date is february. Buy your tickets now thank you very much coming up, shares of tiffany continuing to rise well take a look at the stock move before the offer was made public a rough week for boeing and now its not you passengers worried about flying on the 737 max when it nafilly gets back in the air. Power lunch will be right back as a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. Shares of boeing are higher but new issues are cropping up related to the 737 and efforts to get the plane back in the air. Phil has the details for us. Phil this is all about whether or not crews will want to be on the plane when its once again certified which everybody expects to happen in the Fourth Quarter or early next year in this case its the American AirlinesFlight Attendants the union that represents them, are saying we are not entirely sure the Flight Attendants will be comfortable getting on this plane. They sent a letter to dennis saying the 28,000 Flight Attendants working for American Airlines refuse to walk onto a plane that may not be safe they dont have to make that decision here for a little bit in terms of were absolutely not going to be on this plane. American, for its part, have pulled it from the schedule of january 16th if it starts the fly then and the Flight Attendants still wont get on the plane then you have a completely different story, a much larger story you look at shares of boeing they have set aside a 5. 6 billion for compensation to airlines, Flight Attendant unions, pilot unions that all needs to be worked out once they get this plane back into service one other note about boeing. The issue is not only extend to the max that we reported on but this 737 ng. Thats the previous version of the 737. Tlp a there are a number of planes grounded due to cracks deep within the wings they will ground three 737 ng models because they have discovered cracks. The planes will have to be if i canned as will the other models. This letter sent by the Flight Attendants was sent to the ceo of boeing as opposed to the ceo of American Airlines this calls into question their faith in the faa sure. Theyre not alone. You hear this from pilot unions and pilots they are like why were all of these issues just now coming up. Shouldnt they have been covered during the certification process. Theres a lot of people not happy with the faa theres no doubt about that. Thank you the Flight Attendants still skeptical about stepping on the 737 max, how soon could this plane get back in the air . Lets bring in former chair of the National Safety transportation board great to have you with us. Thank you the faa seems to have a credibility problem. What should it do . Well, it has a great credibility problem, not only in our country but worldwide by congress and the faa moving towards selfcertification which is resulted in decisions being made internally in boeing that were not answered in congressional hearings this week i think the hearings only added to the concern among the members of congress as well as the flight unions and the pilots that wanted to fly the aircraft. Are you saying then that boeing had too much control over the process of certifying these 737 max and was able basically to make decisions that to present information or not present information that might have changed the way the process went, is that what youre saying im saying 2013 i wrote an edtorial in the New York Times expressing my concerns about the changes of the system that moved to what i felt was selfcertification der is what what is that designated engineering representatives who had formally reported to the faa, reported to boeing that process as something that boeing is very large lobbying arm had worked for for years now we see the fruits of that. First the 787 was grounded after its introduction now the problems with the 737 max and the problems with other aircraft at the same time all this happened, we see that again a boeing lobbyist is trying to have an influence over the questions asked at these recent hearings you know its time for a change. Jim, dennis really took it from congress this past week in terms of how much blame he was personally accused or was hoisted upon him by people in congress im wondering if from your standpoint if the government should share an equal amount of blame . I believe they should we need to have accountability introduced back in our system. In the Aviation System a lot of that is being delegated in other parts of the government to the manufacturer without the oversight, what are the American People paying for the American People pay the flight for their flights over 3 billion a year that goes into adding safe airports and Aviation System to that boeing and others can utilize it. The system is broken jim, the wall street journal highlighted that this week they talked about the missteps taken at the faa how they had some concerns about the systems. They could have warned the world about it and they chose not to they reminded the pilots how to deal with problems that might crop up. What are you suggesting would be a better way to structure the faa entirely or this relationship between them and boeing from now on i have a concern for the individuals that work for boeing there are a lot of fine individuals i met in my time at the ntsb but leadership and safety starts at the top i am sure hes a nice man but the man wo created the culture that caused these problems is not the individual that will solve it we have heard from boeing for almost a year that they own this problem. That they were working on a fix on this problem. Today, a year later, they is still no fix certainly theres not going be a fix to this aircraft until there is one presented is work its way through faa and world wide regulators very strong opinions, well informed thank you. I want to follow with one question about the wing cracks that have been discovered on some of the other versions of the 737. I think maybe the publics view is maybe this whole fleet of 737s of whatever series are dangerous aircraft how common are wind cracks that have been described here they come from met cal fatigue d take offs and landings put that in a context for us obviously they are of concern and being addressed but that requires some close inspections and transparency for from the manufacturer so if their problems one of the biggest problems with this is there was no transparency in terms of the m cast no information provided to pilots or others going to fly this aircraft and the senators were for sale. That type of culture is of concern when there is problems with this aircraft the boeing, i remind you, sir, was First Certified in the 1960s. There were problems, if you remember the hawaiian accident if you remember the 737 accidents in Colorado Springs and pittsburg. Those have been addressed. I think it was a different faa dealing with those problems. This aircraft goes back to the 1960s and so several others. Thank you very much. Thank you infamous china short seller carson says lebron james and the nba needs to stand up for hong kong by taking a knee. Other american businesses should do the same. Thats coming up should you stay away from chinese stocks are is now the right time the buy our traders will answer that question next as we look at some chinese stocks all higher today. Each day our planet awakens with signs of opportunity. But with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. Its the idea that if our mothers were diagnosed with cancer, how would we want them to be treated . Thats exactly how we care for you. With answers and actions. 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Dont get mad, get e trade and start trading today. Welcome back to power lunch. Chinese stocks are on the rise after alibaba topped earnings estimates. Baidu ten cent is it safe to get back into this group . Lets bring in your trading nation team. What are the charts telling you . The charts have definitely seen some notable strength but i dont know if they are just out of the woods yet lets take a look at alibaba you do see a series of higher lows in place. Thats definitely positive but theres still a series of lower highs. Until that breaks, until we see alibaba break above 185 that will create a new high im a little cautious here we get positive above that 185 level. Above 185 we think theres a clear shot to the 218 highs. That why it turned more positive first got do watch 185 and see where we go from there from your point of view, what are the f