Thats right, scott take a look at the chart behind me it shows the trading days between 5 drops going back to 1950 in the s p 500 an if you discount what happened here in the 70s dont worry about that. The patterns were right here around 2,000 trading days since the 5 drop and that happened a few years ago and it happened a few years ago, and it happened many decades ago in the 1950s, so this pattern happens over and over and over again, and were due for a big drop its very different than the markets weve seen so far. We are due for a 5 drop but if you look at the flipside, the other side of this chart were due for a 5 move in the positive direction its the same thing i can delete these circles start again, but here you go, right here, almost 3,000 trading days since the 5 rise in the market and thats a pattern again and again and again that you see its like a earthquake seismograph, the behavioral patterns in the markets repeat themselves and here we are again, kind of due for a big move it could be the end of this volume volatility year that weve seen eric thanks so much pete, which way . Weve been waiting for a long time i dont know that we can crack above it, unless we see some significant pullback today we wake up and the market gets pounded to the downside the nikkei is getting pounded, down 1 , the dak and kak and now up 20 points on the dow. The s p in positive territory. Its been in there since september 1st, 10 to 12 on the vix. Were right at 12 today, a little bit above that 12 range but that vix starting to pull back until we have any you know what when we do see that vix spike over 12, i think it will be very, very short term, and then return back to where weve been. Jim, which way is it going to be tony dwyer said put us in the correction camp, internal deterioration in transports and the small caps to see whats happening, percentage of stocks above their 50day moving average, indices at record high, excessive bullishness. They look for a 3 to 5 pullback it could go up 5, down 5 i dont think we should invest being worried about a 3 to 5 move in any direction. Its a direct question, i dont think youll get that correction this year. Were certainly due for a move to the downside. Its been almost two years since we had the last correction as defined by a more than 10 drawdown seasonally its working against the correction most stocks are in a gain position right now and while not all investors are taxable, a lot of them are, and a lot of those folks are going to say look, i can hold onto these stocks for seven more weeks and break into 2018, delay paying taxes for a year, maybe get a lower pax rate thats one factor at work. Every time youve seen a dip for the last six months youve seen money come in and support it youre seeing it today after two modest days of decline you saw it two weeks ago after the Mueller Investigation nabs a few scalps 2018, weve talked about low volatility all year. 2007 was an exceptionally low volatility year and that led to 2008 history may not repeat itself but it does rhyme. Steph youll tell me growth is good, i know youll tell me earnings are good. It is, it is, they are. However, what is the message of the tenyear and whats happening in the high yield market and i want to you listen to what David Rosenberg said earlier on cnbc and react to it on the other side. My point is what is the bond market telling you, not to back up to 24 but why is it low . Spreads are widening out if you look at where there was a bubble its probably in the high yield market not just here but globally thats the canary in the mine. If theres a problem in the Corporate Bond or high yield market that will show its way through the financials it the financials been outperforming or underperforming . Underperforming, small caps the same, widening high yield spreads and flattening yield curve is telling you to be a little cautious. What side are you going to go with a flat yield is not great, not good for financials but a glad yield curve doesnt necessarily mean that its armageddon for the stock market as a whole small caps arent participating lately small caps have had a nice rally off of the lows. Making note of that small caps have had a nice rally off of the lows, so have financials im not saying you dont want to be nerve bus a flat yield curve. I dont see a recession in the next 12 months maybe in 2019, maybe 2020, and lets see what happens on the fiscal policy side of things but i dont think this flat yield curve is saying were going to get a recession in the next six months thats where i would be nervous and i point to Global Growth i think people agree with you. I dont think people see recession within the next six to 12 months. Thats what people would assume a flat yield curve means. Is it time to be more cautious than people are i think as long as earnings are really good into the end of the year i think this market continues to work higher jim is right seasonally this market, this is the time when you want to own stocks and i think youre going to continue to see the winners win into the end of the year. 2018 is a different story and it all depends on the Economic Growth thats why i always say i focus on earnings and i focus on the global economies because theyre part and parcel of each other and i just dont see any kind of massive slowdown are we going to see china grow as fast, probably not but probably an offset from india and probably a little bit better in south america, probably a kn continuation in growth in europe and offerry. Well see what happens here. If i dont see a recession i think stocks continue to work. Earnings are reliant on tax reform at this point, are they not, to get another leg up to take the multiple the market even higher . Can earnings continue to improve . Unless you get tax reform considering where we are in the cycle and where the stock market has gone i think earnings have been very strong. I think the expectation for earnings moving forward into 2018 are that they will continue to be strong, a lot of that has to do with this overused term which is cinch nilesed Global Growth what if we dont get to eight to ten bucks people think get added because of tax reform . Thats a problem three or four months from now and i think the focus right now depose back to what we talked about on friday and what youre talking about right now and thats the high yield market. Youll get 10 Earnings Growth this year without tax you got better Revenue Growth this year without tax so yeah, maybe we see a stumble if you dont get tax. Theres no doubt about that in my opinion but i dont think that means youre going to sell the whole market whats been going on the last couple of days is a direct result of the high yield market, and sometimes the best investment is the one that you dont make i said on friday i dont believe youre going into your portfolio and beginning to, you know, sell out of stocks or Asset Classes because of whats going on but you have to Pay Attention to whats going on right now because its affecting high yields, its now affecting emerging market debt and its beginning to also affect Investment Grade if i said stocks have to either go up 5 or down 5 , withcy going to happen which is more likely to happen are we going to go up, the next 5 going to be up or is the next 5 going to be down . Thats you have a quarter . Eight not a coin flip it is tell me whats going to go on. What are the conditions existing what is likely to happen given where we are everything stays equal, the high yield market calms down, you get your tax reform Going Forward and earnings stays the way they are, you probably go up 5 ill put it on tax reform if you want to answer that question more than a coin flip which usually is exactly the answer, its tax reform. You get tax reform you get the next leg higher. If you dont, you go down 4 had is not crisis. Back to july when the obama kair repeal acts both failed and nobody thought the Republican Administration could get anything done including tax reform the s p 500 was 4 lower thats the decider, tax reform happens in the time frame that we think it will or stocks are going down 4 to 5 . I dont think 5 by the way, because of what were talking about. It could be a positive catalyst i dont know if well know the market will be upset if it doesnt get tax reform. I dont know if you know between now and the end of the year if you get tax reform if its 209 its a problem for the market thats with sernlt last week the market sold off,le reason we mentioned 2019 because of whats going on in the high yield market you have to Pay Attention to it. You have to have an understanding of whats going on the debt side of the market. David rosenberg says the canary in the coal mine. It wasnt across the board selling. It was telecom and health care telecom may have problems if you look at the big debt borrowers its about money flow the two biggest etfs friday on a share basis traded over 5 billion worth of shares thats bigger than any single stock you cant dismiss it im not saying that you are. Im not you cant dismiss whats going on this morning the envishment in the high yield market is better. Im saying Pay Attention what are the catalysts . We got through the biggest portions of earnings season. What is our next catalyst . More likely than down up would be my opinion. To answer straight out, down for 3 to 5 then it creates an Incredible Opportunity because the next catalyst is when we get to earnings season, tax reform or whatever, i know steph gave you a look when you started talking about it, so did i the earnings are fine without it thats just a little cher country on top it doesnt mean well not continue to grow the earnings. If we get a 3 to 5 pullback, great opportunity. Ge, for only the third time in its storied history the company cutting its dividend, slashing the payout by 50 Morgan Brennan is live in new york where the company has been holding its investor and analyst day today. Morgan reporter water this meeting just wrapped up heard a number of folks say they were to put it mildly underwhelmed by this meeting and actually could you see that from some of the notes coming from analysts so far as well. Its not the dividend cut thats driving the stock lower. Stocks down about 5. 5 , heavy volume the reason is the guidance 2018 eps guidance 1 to 1. 07 cut in half and less than street expectations 6 to 7 billion Free Cash Flow. The new Ceo John Flannery talked about the numbers extensively in the meeting. Nonetheless he said the base upon which ge is going to grow earnings and cash flow Going Forward. His vision, a simpler more focused ge he says they have to focus on creating value and do that with a critical analytical dispassionate eye. Three big takeaways from this meeting. The dividend cut, obviously with the nearly 40 Retail Investor based folks that are invested in ge stock for that income, flannery saying that he acknowledges that this is extremely painful move but the reduction is a reflection of where ge is as a company right now. Second focus on the core businesses, businesses he considers to be power, despite its challenges, aviation and health care, and the offloading of about 20 billion in divestitures including transportation, Industrial Solutions and lighting also potentially over the next couple of years, ges majority stake in oil field services, baker hughes, they might be exiting that lastly a streamlining of Company Culture and management compensation, going to be much more tied to performance the board is shrinking to 12 seats from 18. The company, the new cfo jamie miller also just saying that the boston based headquarters, the workforce there is going to shrink by about 25 and lastly for those of us that report ges earnings, their earnings methodology will change for quarterly reports as well, moving forward so again, shares of ge are lower on this but at least we have some more clarity on the new ceos strategy moving forward. Morgan thanks so much, Morgan Brennan live in new york city. Here is how jim cramer summed up whether all of this would be enough and theres a lot. Heres jim here it is, warts and all the problem is, theres a lot of warts. I mean, like a huge number of warts, like get me to a dermatologist now or maybe like a plastic surgeon, maybe something more serious heres what else cramer said, theres no magic here. This is just the beginning its not a Great Company will trade closer to 17. There are many better industrials being run like honeywell and danneher and the turnaround of ge could take two and a half to three years. Agree . 100 . Yes, 100 yes its that bad no one is buying the stock today . The problem the Earnings Guidance you have no visibility and the reason is because powergen is in secular decline they say theyll fix this in two years. You dont know if youve at the trough yet the dividend cut is an 85 payout to Free Cash Flow if you look at emerson, utx, honeywell, they have a payout of 50 so theyve got room to grow the dividend, theyve got room to invest and to grow their underlying businesses. We dont get a lot of room from ge, even with the new cuts from a stock point of view, ill make this quick, joe, you dont have everybody who is going to get out of the stock getting out today. Some people are shell shocked by this some people are frozen theyve already gotten out . No, they have not we know that were not going to name names but we know people who have been on the show and said when the dividend cut happens thats when the stock will rally there has been a they were right, for about five minutes im still going to make my point. Theres a state of denial that will take several weeks to unravel, 15 to 17 is where the stock finds a floor. I dont know 15 to 17, implying a 15 multiple, why when you play a 12 multiple on cat . That was the crux, sorry, of cramers point this morning. Why are you paying a high multiple for ge when you could pay a lower multiple for companies he said or suggested and others have suggested are Better Companies at the here and now. Totally agree 100 . What about the ones he named . Honeywell, danneher, you say cat. In that space, in like the multi dpsh. Im with you on emerson its down 7 since they reported a good number because theyre going after rockwell but their underlying business is going well honeywell great, fabulous company, not as cheap but great story, too i dont think you can go wrong im staying with my honeywell its been a great place. Debris with jim, theres other places to go in the industrial space. Back to ge for a second, yeah, okay, so its 19, it could go to 22 and could you jump up and down i made three bucks on it, but tell me where this company is going to be 6, 12 months from now. Is this going to be a 25, 30 stock, thats where you look at the secular challenges that they have cramer tried to make the point this morning is like this is the time for industrial conglco conglomera conglomerates. Many are doing well and ge is taking bad tasting medicine at a time so many others are surfing and running on all cylinder. Goes back to not the present ceo but what happened over the last five or ten years and emerson i agree with you, steph. You look at the underlying growth they had and look at where they decided to get energy, on the lows, where did ge get them, over 100 on oil. So theres a difference, it why we always talk about you dont buy anything ever for dividends. Somebody on twitter was asking me, what do you think, twitter you dont do it for dividends. If management is smart thats the first thing. Fundamentals are great and you have growth. You fit all of those when youre talking about emerson. You have growth, youve got great management and the fundamental story is there thats what youre looking for i dont know which leg ge has, they have the dividend they have health and aviation they have some good things but the bulk of their business is power gen. Thats the problem so what id like to do in industrials is look at the end markets. Mining, mine something a bottom. Thats why cat started to do better base they have a restructuring so you get the operating leverage trucks, thats why i like cummines, the truck business is getter better, engines Getting Better uri you have energy. There are may many other individuals. Stanley black decker. Love them they had a almost said a bad work, kick butt quarter. The reason the two to three years is not crazy is this is a cultural problem no one suggested crazy you could ask the question whether you think its long enough i think that is long enough but look, what needs to happen is the culture needs to change and cramer nailed this when he called it a country club culture. You see that when you find out an empty jet trailing jeff immelt everywhere he went. That drives shareholders crazy and needs to change. In order to get your margins competitive with everyone else ges chairman and Ceo John Flannery will be on squawk on the street exclusively tomorrow 9 30 a. M. Eastern. Lots of questions for mr. Flannery ill look forward to that. Meantime theres new developments in the controversy over the candidacy of roy moore, for Alabama Senate seat. John harwood joins us from washington on whether this could impact tax reform. What it all meenans . Scott, cramer is talking about warts on the ge situation right now. Roy moore is getting to be a larger and larger wart on both the Republican Senate caucus and the prospects for tax reform thats because he got a special election coming up in four weeks. Youve got the allegations roy moore engaged in inappropriate activity with young girls when he was a 30something. Mitch mcconnell the Senate Republican leader last week said if the allegations are true he should step aside. Mitch mcconnell took it up a notch by saying i believe the women and that roy moore should step aside now, he does not have the power to force roy moore off the ballot even if roy moore pulled out, his name would still appear on the ballot because were too far along in the process it may be that republicans have simply decided that he would be so toxic in the senate that its worth doing without his senate seat because what youre going to be faced with if theres a writein campaign as a divided republican vote, thats god for doug jones, the democratic candidate. Why is this so crucial republicans have a 5248 seat advantage in the United States senate what that means is they can lose two votes and still pass it with mike pence breaking the tie. If doug jones the democrat wins, its 5149 and they can only lose one vote and youve got more than one senator on the Republican Caucus who is raising questions about this tax reform on distribution grounds, on deficit grounds and others, so theyve got big problems, and Mitch Mcconnell took a step today to try to deal with it whether or not it shrinks his majority or not. John thanks so much, john harwood on the hill. I know you guys are paying attention to how this shakes out for tax reform, whether it happens at all in calendar year 17 or 18 jimmy . Look, the momentum is definitely swinging to the Democratic Party you saw it in last weeks elections. This news that has been going on for longer than today about roy moore is certainly more fuel to that fire. Republicans need to get this tax bill done now. They need to change the momentum they need to do it now all righty. Were just Getting Started here is what else is coming up on the Halftime Report. Goldman sachs making a big move on u. P. S. And fedex the call of the day is next. Before the break, ge by the numbers. According to our data partners, after a 20 drop from the stock in a threemonth period, it continues to fall in the next month, along with the dow and s p. The hfte po bk alimrertisacin two minutes. Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Goldman sachs initiating on the transport sector calling the shippers atractive, the rails cautious its our call of the day number of those calls within here to get through. U. P. S. Conviction buy list, who wants it agreed on that u. P. S. And fedex and xpo, you could add that to the list positive momentum is going around and in the Goldman Sachs note they talk about the Global Economy and they reference the fact that with the rails on making a specific call on the economy or on the logistics side, this is about companies that are really hitting on the Business Model jim you say theyve misexecuted talking about u. P. S. Yes the numbers speak for themselves they have not been anywhere near as profitable as fedex, and when you look at the multiple, im not taking shots at you, joe, just reporting the facts on the ground were having a debate thats what were doing. You can take a shot any way referee, i dont think we need to go to our corpsers just yet. Were sparring a little bit, all right. No disclaimers needed continue okay. When you look at the relative multiples right now fedex looks cheaper and more profitable. Why wouldnt you own fedex over u. P. S. I would say you would own them both because i think theres enough secular momentum, theres enough secular momentum for both of these names, okay, and if you want you play punter in college . If you want a relative performance no, but listen, youre talking about a Business Model im talking about fedex or u. P. S. I own u. P. S oh were picking one . Yes, thats what he was asking try to pick one or are the other. He was trying to position me against jim. You said they were hitting on all cylinders of the Business Model. Jim says and i quote, u. P. S. Has misexecuted. That tells me you disagree on whether that stock is a buy or not. Call me crazy. U. P. S. Has an inferior Business Model to fedex. Thats clear they have significantly underperformed however, there is enough overall momentum in the Logistics Business that i think both of them will benefit in 2018. If youre looking for mean reversion, theres a pretty good chance u. P. S. Could outperform fedex in 2018 but im not going to tell either, any of our viewers to move away from owning both of these names even though u. P. S. Has it. I own fedex, i have owned u. P. S. In the past and gotten burned on u. P. S. Because peak season, peak season is the Holiday Season the stocks both tend to trade well in december because of the holidays and better volume is expected but then, what happens is the volume is overwhelming and some of the companies can execute and some of them cant, and over the years, u. P. S. Has had more of a challenge in executing on peak, and so what i have found is you dont want to own these maybe to the end of the year you own them both and i think it can own fedex again because they have a different Business Model through peak but you want to take your profits at the end of this year and wait for them to report the fourth quarter, because thats when they report higher costs usually, because the peak season has been overwheloverwhelming. Its a tactical thing but for the big picture i think fed ek has the restructuring, theyre more profitable and the stock is cheaper. Last thing, consumers remember two years ago, may have been three years ago, u. P. S. Killed it didnt get christmas presents to the kids on time. Thats like death. Too many employees or they dont have enough. Thats the swing the last couple of years which is a kill per i knew hed get this right. Csx, youre my guy, csx, sell, Union Pacific sell thats what they say i own both so i would say buy and buy and id buy Norfolk Southern i think all the rails are winning because of whats going on the scenes with the Trucking Industry because of that i think the rails will surprise and the traffic numbers will come up and it will surprise some people totally disagree with that side of the call. Ill take the other side. Sure. First off these stocks trade at multiples, if you go back five, seven, ten years ago unheard of these used to be single digit multiples. These companies do you like the growth rate no. Ill tell you the part that i dont like about the growth. This is what the analyst is pointing out, is the big parts of their business are things like coal, grain, aggregates, and youre not seeing the growth rate in there. Youre seeing single digit growth rates maybe coal gets a bump from trump but after that its anybodys guess. You have a lot of other variables. How has this analyst been in the past what if energy comes back then the stocks really take off. Pipelines have been built for the last five years to take the crude by rail story away that story is miniscule in terms of the grand scheme. Stephanie is right. You brought it up you said what if energy comes back they have a diversified business mix youre saying yes but we know coal stinks and it has for many, many years its a chemical business that has driven a lot of this theres a combination of things ill go back to one last thing we talk about analysts who are right and analysts who are wrong all the time on this show. Thats who i follow. You know who is right, Deutsche Bank, they have a completely different view than this upgrade. I thought you were going to say katie huberty. Netflix, amazon, huberty and apple, you got somebody everywhere Deutsche Bank and the rails, giddyap, big dog pete is tracking our options activity in a consumer stock that surged 250 over a year well get his play on it next. Plus were tracking the traders latest moves as well the tech stock that joe is buying, stephanies been in it for a while. Joes joining the party. Plus a food stock, hes getting back into, Halftime Report is back in two minutes every day, on every street, in every town, across america. Small businesses show their love to you. With some friendly advice, a genuine smile and a warm welcome they make your town. Well, your town. Thats why American Express is proud to be the Founding Partner of Small Business saturday. A day where you get to return that love, because shopping small makes a big difference. So, on november 25th get up, get out, and shop small. 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. 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. Your kids go to college and you start trading. Yeah, 5 years already. 5 years, hmm. You ever call your broker for help . Once, when volatility spiked. And . By the time they got me an answer, it was too late. Td ameritrades elite service team can handle your toughest questions right away with volatility, its all about your risk distribution. Good to know. Thanks, mike. We got your back kate. Does he do that all the time . Oh yeah, sometimes he pops out of the couch. Help from real traders. Only with td ameritrade. Ge is down 7 . I was just noticing, get that pizza later. Pete najarian with unusual activity sorry i was noticing ge there picking up the rear in the market now down 7 . I couldnt help but notice it. Especially because of the fact it was trading higher in the premarket before this turnaround and pressing down to the downside are right to point that out you want to know who the best activist investor is not all the names we bring up each and every day on the show its Oprah Winfrey great example, this level exactly right there, trading at about 6. 39, oprah bought a 10 stake in Weight Watchers for the most part shes never had a concern since she made that buy had the big pop, flattened out during most of 2016, and you can see what its done in 2017, absolutely unbelievable. What else is unbelievable today is the call buying were seeing. Somebodys going way out to april and going way up theyre buying the 60 strike call, 2018 aprils, and they bought 10,000 of these today, scott. Thats a huge number they paid about 1, stock was a little bit lower than it is about 20 cents lower than it is now. These options probably havent moved way too far, too fast or anything but trading about 1 when that was bought im in these, ill be in these probably all the way through into april because i like what were seeing here and whats going on with the stock and oprah has been spectacular one more for you okay. General motors, very aggressive im already in this, ive been in the stock, jimmy this is one of his names as well look at this move weve seen recently and a decent pullback stock was trading at 43 at the time of this trade and somebody came in, bought the february 48 calls so 5 out of the money the february 48 calls you can see a nice big chunk just a little less than 7,000 theyre selling the downside put to finance the buying of these calls. Forget about that side of it im giving you the entire trade. The calls werent expensive, 64 cents, that gives you upside im in the stock, i am not in the options right now. I was already in the stock not surprisingly jimmy has a comment. Oh yeah, two comments first off the chart is looking a lot like boeing earlier this year when it shot to 190 and pulled back and that was the ultimate head fake the fundamental reason later this november theyre going to have a whole Conference Day about autonomous vehicles. Thats why i think your call buyer is in there, anticipating good news and Stock Movement from that. Good stuff. Pete come on back over here. Will do sue herrera has the headlines for us hello, scott. Heres whats happening, everyone Senate Majority leader Mitch Mcconnell says gop Senate Candidate roy moore of alabama should step aside in light of allegations he had sexual contact with a 14yearold girl decades ago. Mcconnell adding that a writein effort by another candidate was a possibility. Las vegas officials have started putting in permanent steel barriers along the las vegas strip. The barriers will protect pedestrians as they walk along las vegas boulevard. They plan to have the entire strip protected by new years eve. Russian president Vladimir Putin hosting his turkish counterpart for talks focusing on the situation in syria. He says relations between moscow and ankara have been restored practically in full. According to j. D. Powers latest study on rental car satisfaction, enterprise comes out on top for the fourth consecutive year, rounding out the top three, national and alamo. Rental car prices dropped 11 per day this year alone. Thats the cnbc news update this is hour. Back to you. Sue, thank you so much. Mattel, hasbro, alibaba, jd com com and ggp, chipotle are in the blitz. First brian sullivan, whats coming up from naples, florida, today, power lunch. Another tough assignment. Thank you very much. If you care about stocks, if you care about politics, if you care bitcoin or media consolidation power lunch is the show for you. We have the cme ceo terry duffy talking about Bitcoin Futures and launching, former governor jeb bush, talking about the gop, where we stand, whats going to happen, jacob frankle, ian bremer and barry diller, with Julia Boorstin on media consolidation, a big couple of hours mi ucongp on power lunch. Take a short break and Halftime Report returns right after this another day at the office. Why do you put up with it . Believe it or not you actually like what you do. Even love it. And today, you can do things you never could before. Youre working in millions of places at once with iot sensors. Analyzing social data on the cloud to create new designs. And using blockchain to help prevent fraud. So get back to it and do the best work of your life. Allow you to take advantage of growth opportunities. And using blockchain to help prevent fraud. With a level of protection in down markets. So you can head into retirement with confidence. Brighthouse financial established by metlife. The cnbc iq 100 index, meeting the Broader Market over one year todays leaders mattel, qualcomm, procter gamble, the laggards for more go to cnbc. Com iq 100. Welcome back to the Halftime Report. Dxc technology also in the iq 100 is up more than 60 this year and joe thinks theres more upside ahead you bought it on friday. I did buy it and full disclosure i had purchased some before the Earnings Report and added to it on friday. This is a name quietly has flown under the radar from most investors except the one sitting next to me who did a phenomenal job buying it earlier. Did a fan fak job on it. I think stephanie would agree with me its not a popular name in the Tech Industry many talk about. It first came towards a position of buying for me on a quantitative basis looking at the momentum its doing and the double purchases, you show me a company that hits on martins, on earnings, and on cash flow i have software exposure, i wanted something in the services side, i needed that. This is appealing to me and a company i think you will see north of 100 very soon. Its at 96. 80 and up 1 . The guy is good. Just kidding its up sorry, had to do that lets qualify that further. Once it gets above 100, easily toward 110, 115 you like that . There we go youre missing josh and steve today, arent you, scott steph yes drop some more knowledge. My target is 130 to 140 i think they have earnings power of 10 a share the really reason i started to own this stock way back when, the combination i thought theyd have synergies, cost and revenue. The story for most of the year cost synergies weve seen better margins. Fast forward the last two quarters theyve beat on revenue as well as margins so Going Forward i think that continues to be the story and thats how you get 10 in earnings power the stock trades at very cheap multiple, put a 13 multiple on this thing and get 130. Great, great management team, and theyre incentivized what their stock price does so i like it you bought another name dominos ive been waiting for the pullback, finally got it got into that friday morning stocks up 9 yeartodate but down almost 10 , if not more, over one, three, six months looking for north of 00 on that one its 174 so a little bit better than 96. You like it over 175 . Its going way out there. Only if theres unusual activity all right, lets do our trader blitz mattel is on pace for its best day in 30 years, after a report it received to take over offer from hasbro. Steph you previously owned mattel i saw that, that was an amazing buy. This stock is miserable. Unfortunately they havent been able to execute and kind of behind the eight ball on the product set. That said a hasbro msh mattel combination would be synergistic if they could get it improved. Regulation that might be a struggle but if they get it together, wow, a great powerhouse on the product side pete, j. D. . Ecommerce is unbelievable. Singles day smashed it, it rocked you look at j. D. Up 50 and they had a good Earnings Call im in both names, in the calls in alibaba and calls in j. D. I took them off last week after it popped and i said i got to stay in. Ridiculous and today theyre buying im glad im back in here. I think the stock goes north of 45 quickly joe, chipotle, down 1 , apparently the star of supergirl, jeremy jordan, said he went to the hospital after eating at one of the companys restaurants. Yes, i think he put on instagram a picture being in the hospital he said he almost died from eating the food. The company came out today and obviously has said theres no connection between his apparent illness and the food he ate, i believe at a houston restaurant. The stock has recovered intraday that doesnt mean very much for an overall challenging environment, certainly that we saw after earnings we know mr. Atkin has the stock. Maybe this is the type of thing that flushes out a bottom but i dont think its a place you want to put your money speaking of mr. Ackman, ggp is one of his greatest trades of alltime yep they get a takeover offer from Brookfield Property partners, according to the wall street journal. Yes well look, this is a company that has some serious secular challenges and weve talked about it a lot they are mall operators. So frankly, i think this buyout offer is a lifeline, its not a huge premium but i think its the right deal for them because brookfield has been pretty savvy in diversifying their portfolio. Yes theyre in retail and also in office and multifamily units so it gives some diversity to the overall portfolio. Theyre good at turning around Distressed Companies and property i like this deal all right, just ahead we are going to set you up here, earnings game plan for the rest of the week, a lot of big names are on the calendar, as you can see. The traders are going to take their positions on home depot, ten cent, l banques, walmart, target, footlocker, buckle buckle . Gap maybe. Best buy o, ohyeah were back in two minutes thats Management 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. Work keeps me busy. So ive asked chase sapphire reserve cardmembers to find my next vacation. Rome, show me something. Im having breakfast at the pantheon. What an amazing view. Of your finger. Look at this view. Your finger isnt that incredible. Your finger and check this one out oh its so amazing move your finger three times points on travel and restaurants on every continent. Sapphire reserve, from chase. Make more of whats yours. Orspredictable income in an uncertain world . Pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce warehouses. And private debt to finance transportation and infrastructure. Building blocks of strategies to pursue consistent returns over time from over 120 billion dollars in real assets. Partner with pgim. The Global Investment management businesses of prudential. Another busy week of earnings pete, i start with you tuesday, depot and tjx yeah. Of those two, the one i like, i am in, home depot. Youre not in tjx not in it i love the company but not in it seen other opportunities home depot i like. They fully embraced the online world. Up 23 last quarter. I like the management there and for all these reasons, i think this stock does well. Wednesday target. Crickets says it all . No, does not. Walmart, everybody expects a good quarter thats not where the interesting stuff is look at things beaten down, really beaten down, might be turning around l brands im sorry, i dont know what that phase is, dont hold me accountable. See if they have the momentum going. There are others like dicks, abercrombie fitch, which are flat on their back see if they can Say Something positive about the Holiday Season and get going again i didnt say anything on target i want to be sure all costco shareholders are okay with recovery yes best buy thursday i like best buy pete loves it. Love them they figured out how to beat up on amazon and win when they go head to head if that continues, which it has been, thats why the stock is headed toward 60, i am not in it very little retail exposure. Home depot is one. Buckle. Dont miss cisco systems. Thats because my daughter is the model for buckle online. Caused me to look into the company, liked the company, i bought stock. Congratulations to you. Thank you foot locker . I dont think anybody expects a good number, given all the things going on in the space i am more concerned how nike trades around it i think it is well telegraphed i thought last weeks adidas missed, revenue miss it was telling maybe seen the peak of adidas being the great story, gaining share and nike feeling it on the low end. I feel nike is a good buy. What about gap . They had a little recovery after the august earnings. Pulling back now. What about buckle buckle all right final trades are next on half time i think that shes a very nice girl. You never got the brakes looked at . Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. Your bbut as you get older,ing. 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. Time for final trades. Monster beverages. Cocacola new ceo is show casing restructuring. I like the stock qualcomm. Seeing the drama play out exactly how it should in a hostile takeover qualcomm rejects broadcoms bid. They have to raise it. They didnt lead with the best offer, theyre going to raise it, stock goes higher from here. Alli baba did you see that nike and adidas, couple names were top seller going after brands, and brands sell and theyre killing. That was record numbers. We talked about jd a little. Record numbers for baba. When they set records, thats real. 20 seconds left cisco. Forgot cisco earnings. Jimmy. The stock is poised to break out on a 15 year high. All it needs is one good Earnings Report. The secret is in acquisitions. They make small acquisitions, not big. They should start to show up. Thanks for covering that. Thanks for watching. Power lunch starts now i am melissa lee reimagining ge, the industrial giants flashing its dividend, largest cut ever by a u. S. Company outside a financial crisis all part of the overall effort the stock getting whacked. Inside the turnaround plan. Republicans face a critical week for tax reform. Where we stand, and why many of the top millionaires and billionaires are calling on congress to raise their taxes, not cut them. Media mergers, regulating social media and Sexual Harassment scandals in hollywood. Barr