Facing another grilling from lawmakers about the safety of the 737 max. Risks facing the stock Halftime Report starts right now. All right. Good to have you with us on this wednesday from post 9. Our Investment Committee here. Lets begin with the markets the count down to the fed. Investors expecting a cut, but it is the what comes next that matters most of all. And for that we bring in Steve Liesman, who is at the fed today. Thats what everybody wants to know, right . Everybody knows a cut is coming. Its whats next. What i think will happen is powell and the committee will carve out flexibility to react more to the data i think the issue, the way that powell probably not going to put it this way, but simply to understand it is we may cut next time we may not cut next time but were definitely not going to cut were not definitely going to cut is a good way to think about it in other words, the market is building in automatic cuts from meeting to meeting and i think powell will want to back off of that because they put a lot of stimulus in already. The cut in the Balance Sheet they got away from hikes they were going to do and then they cut what would be after today we believe three times. And it takes time for that stuff to work its way through the economy. I think the fed wants to see how well thats working. Plus there is a divided company there. I think powell will want to give that a little time to fester right there. Yeah. Hes going to have to watch his language carefully, steve. Dont you think . Yeah. Hes stumbled in the past in the way he articulated where we were in terms of what the fed was doing. Got to be careful today. Right, right. I think thats right i think there is a difference here, scott. Other times i think powell has tried to carve out flexibility when the market wasnt priced into the market. If you look at possibilities today, were at 97 for a rate cut today. That falls down to 26 or 27 for december, and there isnt really a rate cut on the other side of the 50 probability until march, until some time into next year so powell may well have the flexibility to give this message because its priced into the market here. The market is not in disagreement it is those other times that powell has tried to do that. Hes had the market against him and he got that violent reaction from the market and hes had to walk it back. Were waiting and were watching the stocks arent doing that much because they know the big event less than two hours from now. Steve, youll be in the room thats Steve Liesman at the fed. Gang is all here what do you think . I think he has to be very careful in his language. He does not want to do what greenspan did in 98 no, you cannot do that why . Because you have to be careful you have got what you wanted you have the yield curve finally steepening tin version is out of the curve. You cannot flatten the yield curve by signaling finality in terms of what the cut is so i dont know in terms of the language how he walks a fine line i suspect he does it by talking about job creation has eased and expectations have been lowered he may have to mark down his assessment of the economy. Lindsey cut and then data dependant, is that okay . Markets cool with that no. I think the market right now is really expecting this to be a cut with a dubbish tone afterwards anything you get, were in a wait and see mode. I dont think the market will like that. They dont want the spigots to be turned off there. Pause no good joe brought it up thats what it really comes down to, is the message afterwards. The cut at 97 , thats there and thats a likely priced in. What about december . Thats a big difference now. Going around the table though, every day, i asked last week, what is your cool with cut and pause . Everybody put their hand up. I still think thats the case, right . Cut and pause im good. Im still raising my hand for that. The only person maybe not happy with that is president trump. Hes been arguing for more cuts. He will absolutely not be happy. The market seems to be in an uptrend again most recently, hit these new highs. I think it is all noise once we get past the press conference, whatever happens happens. Maybe it is a knee jerk down or a knee jerk up and then we will come right back down to where we were yesterday or the day before. Is that a good thing . I think its a good thing for two reasons. The first is that powells pretty much overstayed his welcome in terms of what the market is thinking in terms of what he says because hes been such a poor communicator they dont know what to read out of what he says. Yeah, i think there is a general consensus. I dont know if its entirely warranted, that the economy has bottomed, that europe has bottomed and now it is moving to the upside maybe slow and like always were coming out of an earnings season meeting or slightly better than expectations but were seeing this 2 growth out of earnings, you know, which are still down from where they were last year i dont know anybody is looking for reacceleration. You could say, well, thats better than expected though, it is confirmation of a slowing economy and whats been happening in the manufacturing and the business side of the economy. You got to have the consumer hold up. The number yesterday, eh, nothing good but not great. It is about the consumer, and to steves point, what you want to hear from the fed today is that they are not going to be communicating about the direction of rates until 2021. This is it give us the cut, move on and lets not talk about this until youre raising rates in 2021 so to your point, i think they are expecting Business Investment is going to return. I think thats beginning to be priced in once again i understand the apex summit was canceled today, so there is hesitancy in the market whether phase one will get signed or not. But i still believe the market expectation is that Business Investment is going to return over the next six months. You know what, even if it doesnt pick up, as long as lindsey, the consumer, remains strong, does it really matter . Yes the consumer has been the engine of the economy weve seen that happen in the past where Business Investment was cut but the consumer still remained strong in spending. I think there is two different ways to look at this, though there is a shortterm and a longterm reaction longer term, if we look back at the other times there were three initial rate cuts before the fed moved again in the positive direction or took a pause you saw the market up 10 six months later. Most recently it felt like, steve, we may be at the cusp of that next leg of the rally after being, you know, sort of spinning our wheels for a while. Tony was with us yesterday very optimistic target for stocks jp morgan with us earlier, said you could reach some of his targeting earlier. You could pull that forward. There is more optimism it seems than there has been of late. Really focussed on china and trade to get you to the next level. I agree with that. Without that, youre going to have an issue. So i think there are two major events coming on i dont think the fed is one of them i dont think apple and facebook reporting is another those are very shortterm issues the two major events coming up are signing phase one, which will happen regardless of whether it is gets an indication somewhere else and then christmas shopping. Were going to need to see that spending really pick up. Right now you have got healthy forecasts for Consumer Spending over the christmas, you know, for christmasgiving, we need to see that come through. So where you were caution and maybe there was other caution out there you got the smh. You added to the smh i asked you yesterday if that was representative of a maybe changing view, a little skewed, more positive by doing that. Pete, you like the semis. Specific, though. I dont want to be in etfs i want to be in the individual names. I think there is a big difference between many of the names. But technology, we see that in software we see it everywhere. Intel, amd. I dont necessarily want amd now. I know we will be talking about that later, so ill save that. But i absolutely take intel 10 out of 10 because i do think there are stocks out there right now that individually have a story behind them and the management in front of them that can lead them to the next level. So i think each one of those stories is different the smh obviously will go up if we see the big names going up. But what will go up faster the individual names. Let me go down to d. C were at the White White House there is a news alert for us on the topic we were having a conversation about what do we know now . Reporter the white house now putting out a statement on the china piece of that. Theyre saying we look forward to finalizing phase one of the historic trade deal with china within the same time frame of that apec summit that was canceled and when we have an announcement, well let you know so no knowledge as to where or when the president will sign that deal. That had been expected to be possible at apec in chili. The white house saying it occurs apec will not occur in chili and the organization does not have a secondary site prepared. So no information coming out of the white house in terms of where they might meet with president xi and you can imagine the tensions around where to do that, the similwhether that take in the united states, china, all of that being worked out behind closed doors now. Appreciate the update there. You bet. So is that the only thing that turns, lindsey, positioning in the market from more negative and caution to much more positive you get money coming into the market and you try truly have t next leg we talk about. I think thats a huge risk to the market now i think concerns around the world. There is brexit, a little bit of uncertainty there as well. But you are starting to see some of these International Markets turn around a little bit the lower Interest Rates here in the u. S. I think thats certainly a positive and we have some positive momentum going into the seasonally strong period of the year. In terms of positioning with the market, industrials new high this week. Financials new 52week high this week financials is somewhere you want to be, specifically if you are going to see the shape of the yield curve continue to steepen. The industrial story, i think thats obviously being advanced this morning by whats going on with ge. It is a Free Cash Flow story the industrial story is a Free Cash Flow story. What ge is telling you, that marks what was perceived to be the worst of the industrial story, and now it blends into a mow s Free Cash Flow. The next part of my issue with the market, i dont see huge upsides i see some upside, maybe a few percent above new highs. But i think youre paying it forward already with what you are seeing with industrials. The market is assuming that you are going to get this spended earnings cap im not so convinced thats there. So thats my issue thats why i dont own i sold my skyworks and im trying not to be in the individual stocks there because to me there is much more risking going into individual stocks at this point than owning the smh. Let me ask you this, though if you have gotten and exceeded highin hig highs, right, set new records and done it in a backdrop of this trade war and slowed down in cap ex and business spending, why do you need it to continue to go higher because the market is not assuming that were slowing. The market is assuming that we have already accelerated so it is not trade bidding up the industrials to new high because things are terrible. Its bidding them up because they think things will get a lot better a lot quicker so they also believe that we had all this talk about negative rates in the u. S not even a month ago, right . Now we got a steepening yield curve. The question is, is that also warranted . Why do we have that . Are we going to wake up and find out that china sold massive amounts of bonds to steepen the curve . But arent you basically when you are saying all industrials are rallying right now on the belief there is going to be an increase in capital spending, there is specific stories in the industrial space, aviation, housing. Very specific. Very specific stories where these companies are actually working for you. Even though the airlines are in the industrials, when im looking at them, im not really looking at them, right im breaking them up you have others that missed that are telling not as great a story. Sure, defense as done well when you look at the nuts and bolts of the economy, take a look at cat. It shouldnt be higher than it was in reported earnings its not on fundamentals its on hope and prayer. Market goes up 85 of the time im not looking to be short the market the last stock i shared was softbank, which, you know, i shouldnt have covered maybe but, you know, it is also a corporate stock. Lets talk about the other big event. And its going to happen four hours from now or so apples earnings the stock has been surging this year did you know it is the best year since 09 . Pretty impressive, yeah. And thats with last quarter actually dipping underneath 50 for the iphone the reality is thats not a negative you are getting growth in the areas we said thats where you get your next drivers. When we talk about services in 2018 that was 14 . 2019, 21 of the revenues. Thats a huge area to grow now throw in by far accelerating faster than any segment. And you have five new devices theyre coming out with there. There is a lot of Different Reasons to be excited going this number a lot of the different items we talk about every day, we talk about apple tv plus, all that kind of thing. Thats all starting. But at some point in time, those are the pipelines you are seeing for the next level of growth for apple. Depending on what category, we talked about this before, what category do you want to put apple in take your pick what you want to categorize them as but when you look at what they do with their Balance Sheet no doubt about it thats what im saying is its moving, though, thereto hardware as thats dipping and moving them somewhere else, right so thats exactly the point. So what should the proper valuation be for apple especially given the kind of growth that were talking about in those other two segments. I mentioned how good the year has been apple getting ahead of itself a little bit in stock . I am long apple, not as long as peter, even steven. But i have been long apple on the belief that there is going to be a chase for performance and also there is a pull forward from the trade dispute from the potential tariffs in december, from chinese demand. And i think thats relevant in this quarter now, the question becomes what happens with the march quarter if there was a pull forward of demand from the chinese, if there is going to be inventory stuffing back in the united states, what does that create for a march quarter . Thats where looking ahead, i think, the guidance is going to be important and thats where your concern is for apple. I need to alleviate that concern to stay in the stock thats the only issue i have with it. Its really a nonevent quarter, right its going to be in quarter. They will talk back the new airpods. But moving the stock has amped it up a little bit where they have to deliver something more than just ho hum. Agreed because they have gotten ahead of themselves everybody is raising numbers and price targeting attributing to the 11 when you dont have enough sales to see whether that matters or not. Well, the production numbers that have come out or the reports of lead you to believe that you are going to have the end demand to justify the increase in production. Right. Obviously it has to pan out that way. Here is the biggest news on apple today. There are news stories they have told their suppliers to gear up for 5g production. Thats the biggest news. That will be the mother of all upgrade cycles in my view, and thats why i own the stock now. Well, to that point, i would just add that the iphone 11 has had Strong Demand out of the gate and it always does really early on. Right. The question is going to go into that march quarter. Are you going to see that drop off sharply as consumers anticipate that 5g device in the latter part of the year . I think you do. But they will be with apple. So it is the anticipation of the next device. Such a major upgrade, im not sure it matters. I think it is a relatively safe stock. It trades down. Who is not going to say to buy it there well all say. When you talk about the company, their earnings are down year over year, right . The multiple has gone through the roof relative to where it used to be so it is purely momentum on the future of what it is. And thats the perspective you would get from a tony s. Who is not, even though may be bumping up his price target isnt breaking down the door to raise price on his stock. Theyre giving it away. That 60 a subscriber for streaming. They have to i a count for that somewhere. Of course they will take it out of phones, right so you will see those margins come down. But thats not going to make money for them for a long time. Were looking forward to catching up with him well figure out what hes doing going forward. Facebook, lets kick that around best month since june. Thats after the bell. Weiss, you own facebook. I do. Give me the read here. I would say that everybody is looking at the regulatory over hang, thats the big story, and much growth can they still have . And we compile all that together and you say, well, their average movement so far in the last two years per earnings is 7 so are they going to get that kind of a move i think they will get a move of that sort of movement, but i actually think it will be on the Positive Side because of the fact that less about facebook, more about all the other product lines. Again, the focus going away from the biggie iphone, go away from iphone and go to the other areas. In facebook, go away from facebook for a second. They have 2. 1 billion whatever the numbers are, 2. 7 billion depending on what metrics you want to go with. But the story is instagram, messenger, where are they getting how about ecommerce . They have all these verticals. At some point in time, we know there is possibility out there that somebody might say, you know what, you got to break these guys up. If you break them up, the value is even higher because thats that breakup value. If theyre up 43 on the year as at least in some corners, public enemy number one in terms of tech, right, if you can do 43 in that backdrop, what can you do when it comes to the realization that either somebody is not going to be elected president or that this whole regulatory overhang is a whole lot of noise and nothing else . I just think its symptomatic of the market thats not tremendously discerning on one hand or it is very discerning. I decided my new strategy is to buy any company that appears in front of congress. After that it goes up. Boeing yesterday was up 3 , 4 facebook was up after the hearings thats the best advice you can get. And facebook, i sold my twitter. Just remind me how stupid i was for buying it in the first place. Do you blame josh no, im not blaming josh. I make my own decisions. But here is the point, twitter had growth that slowed while google was still pretty good who is picking that up to me you have amazon thats picking some of it up, right but its going to be instagram it is going to be facebook, so im looking forward like you are to a good quarter. And they have continued to innovate and come out with new products and more reasons to go on. Lets wrap our first block with ge. Pete, you got put in ge. Stock surging. Yes. Best day since the beginning of the year. At one point it was the best day since march of 09 forecast was raised. We love that ceo. Hes come in and done a fantastic job. They still have 100 billion plus in debt did they have a great quarter . Yes. He talks about the Free Cash Flows going into 20, 21 and beyond but dont forget we were just over 10 not that many months ago. They could hit up 2014 or Something Like that and get pulled back again. Is it in a range 8 to a little over 10, id say thats the range right now for ge i still think there is enough headaches for them that they have got to deal with that there still is the possibility of downsizing im not aggressive with what i own. I ruled them all the way back from the six puts long ago into the four puts. Thats basically just looking at, hey, look, if this thing comes crashing down, these work but they dont cost me very much and gives me a great opportunity. Isnt it more likely now that this stock is going higher rather than lower . Off of these numbers today, i would say those numbers were pretty good, so yes thats a possibility. Id like to look to see what he thinks now easternings or what his read is going forward. No smoking gun in the numbers was part of the note he put out today. I think hes sticking with his guns right now. The debt perspective on this Company Looks a lot better than it did six months ago. You are seeing pricing in the debt markets, spreads are tightening ge bonds are trading with strength thats something we have not seen in a while. I think thats indicative in a chase performance environment where the equity probably leans to the upside here. What do you guys do for a living you look at possibilitiy probabf things and whatever else could impact it the probability has changed on this, has it not let me ask you that. Has it yes. I shouldnt be saying it has. Has it if you want to own the stock, it is an easier stock to own you cant do any work on the fundamentals the only work is do i believe in him or dont i if thats how you buy stocks by just voting on the ceo, which is a good strategy for some its not my strategy then own it. Okay because you continue discern whats going on until he tells you. So it is a quarter to quarter situation. Yeah, so a swing with momentum of the narrative right now the narrative is positive but its way today. Exactly the Balance Sheet way too in a pinch. But nobody cares about the dip there either that stock has moved it is not the world i grew up in where you have to Balance Sheet and income statement analysis. I agree with you. It is not the world we grew up in from a fundamental analysis perspective. The market is definitely giving the stock a pass today the cash flow guidance improvement was about all financial maneuvering, right we havent seen any change in the fundamentals i think this is one you have to be careful with. Amd surging over 70 this year and one firm thinks it has more room to run. We debate that and is the semis straight ahead. Pete is following the unusual activity in the options mark stay tuned for his new trades based on those moves coming up the Halftime Report is back in two minutes. Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. Annoepidemic fueled by juul use with their kidfriendly flavors. San francisco voters stopped the sale of flavored ecigarettes. But then juul, backed by big tobacco, wrote prop c to weaken ecigarette protections. The San Francisco chronicle reports prop c is an audacious overreach, threatening to overturn the ban on flavored products approved by voters. Prop c means more kids vaping. Thats a dangerous idea. Vote no on juul. No on big tobacco. No on prop c. Welcome back New York Stock Exchange on halftime those gains are going to continue through 2020. The Firm Upgrades the stock today to buy from hold it is our call of the day. So, pete, im coming to you on this. All right. Kramer was raving about such a big fan that they do stocks validated her performance. The question is do you need a better entry point if you are looking at this stock at this point in time . Is now the time to go buy on it . Obviously the analysts have a different opinion than me because they all went on buys on it they moved their prices. I would say yes. One of the things they mentioned was a little bit of weakness here and there some of the guidance wasnt as strong as they expected. We heard their guidance was strong they talked about data center and the strength there i think there is something going on here where maybe, maybe intel is winning in that game so far because they did show some of those growths. Now, does it mean amd is not a buy . No i think you want to find a pullback i think its running 33 yeah, close to 33 today, so a little bit different. I still look at intel. Look at the valuation there and the growth they showed this last quarter. I dont think those two compare to each other right now. Some of these gains are just down right sick. I mean, i gave you the amd here today. Ill give you 52 on nvidia. 52 on micron and even Texas Instruments is up. Ride that . I am. Thats why im riding smh. Nvidia bounced back 50 without any fundamental reason for doing so thats just money coming into the momentum sector. Its been such a big trade despite some money coming out recently maybe they will prove themselves okay on the reported earnings, but thats why im doing the smh. Im spreading my risk. Lets do this another day on the hot seat for the boeing ceo hes on capitol hill for the second day in a row. Phil is there as well with the very latest. How is he fairing today, phil . Fewer fireworks today they have just taken a ten minute break after two hours of this hearing they will begin questioning in just a little bit. And while there have been fewer fireworks, there have been a few representatives who are trying to figure out how this entire thing happened with boeing ive talked to a lot of pissed off pilots. They said, we were the backup system how can we go backup if we dont know something is going to take over our plane . They are there is quite a bit of discontent out in the Aviation Community about that. Does that make this an organizational or a cultural problem as opposed to an individual problem that led to these mistakes congressman, i think it is important from an accountability standpoint of my company and i are accountable. That accountability starts with me. Playing off of that question, representative steve cohen from tennessee just a few minutes ago in a rather loud and Heated Exchange with dennis m. Said how are you accountability when you were paid 30 million last year . Actually it was 23 million. He said, are you giving up your salary have you lost your job where is the accountability . We caught up with the representative outside the hearing. He basically said hes disgusted with the entire situation. We have reached out to boeing to see if the board has a comment regarding his compensation we have not heard any comment from the company but, guys, this is a theme that i wouldnt be surprised you hear more of the representatives hitting on since he has said time and again, im accountable for this entire situation with the 737 max and by extension so is the boeing board and boeing as a company overall. Let me ask you a quick question does the day that the max get back in the air, does he start packing his desk that day or does he wait a few days after . There is no way to know what the board is thinking right now. I know a lot of people have speculating there is no way following this grilling, following whats happened over the year that he can keep his job. We have no indication that the board is planning to fire Dennis Mullenberg we have no indication theyre planning on doing that, period having said that, there is this drumbeat that you hear of people asking more and more, what is his future at boeing does it extend into just getting the plane back into service . Or does it go beyond that . Frankly, we havent heard much from the board we have had a couple of comments from the new chairman of the board, but we havent heard from the companies the directors who are overseeing this company. This has completely been Dennis Mullenberg yesterday and today on capitol hill. The reason i ask you the question the way i do is because we posed it to you in a few different ways over the last 24 hours. Yes. And you have said that there is no way that theyre not going to do anything about his position now, given all the flux in the max. Sure, right. They have to get the max back in the air first thats why i ask you the way you do once it gets back in the air, you can have a serious conversation about whether this gentleman can run this company or not. Youre absolutely right and in regards to that conversation we had yesterday, scott, i have been asked by people, do you think Dennis Mullenberg will get fired . I have no indication that he is going to be fired. But i can tell you this, they do not want to add more uncertainty into the mix of everything thats going on. Look, they just replaced the head of commercial airplanes last week. They have got so many balls in the air and so much uncertainty they have got investigations and the doj investigating that changing the ceo just to change the ceo, while i know there will be some people that will look at Dennis Mullenberg over the last coupling of days and say, yeah, he should be gone, doing it just to do it and so much uncertainty right now, i dont think boeing would look at that as advantageous immediately. Lets be clear, though, it wouldnt be replacing the ceo, phil, just to replace the ceo. You listened to senator cruz yesterday and he gets to the heart of where im going with this if mr. Mullenberg knew about, you know, through the Text Messages and Everything Else there were possible issues with that plane. Right. After the air crash and before the second deadly one and didnt, as ted cruz suggested, run with your hair on fire to say whats going on here, this isnt just replacing somebody to make yourself feel better. I understand what you are saying but what you are getting at there is a broader question that has been swirling around this company from the very first 737 max. Who is going to be held accountable . Who has either lost their job or being cull ecalle eed publicly. So far Kevin Mccalister is the only person who has been replaced, who has been moved out of a job and even if that replacement, you know, nobody came out and said, well, hes responsible for what happened here with the max. There are a number of issues with commercial airplanes. But you get to a clear point here will he see executives publically held accountable by the company where they say, look, this is whats happened. These are the mistakes made by these individuals and there will be some fallout from this. All right thanks, phil Dennis Mullenberg is being grilled, i think its fair to say, for a second consecutive day before lawmakers lets get a comment here on the desk from someone who owns the stock. So, look, i personally think he should be replaced and i own the shares this is a breakdown every front. I do think they have got a look at how they approve planes also the faa is responsible. But for boeing not to ground those planes after the first incident is unforgivable as we saw. So there is enough here, there is enough smoke where you got to hold them accountable. I agree. How are you accountable . So hopefully this year they zero on his bonus but you cant give it back youre not calling it back so putting all that aside, airbus is still behind in their production, behind in their deliveries theyre the number one producer of aircrafts in the world, so they have over taken boeing. But there is no place else to go if you look out a year, you will still see a stock price thats higher. He was contrite yesterday he was emotional at times yesterday. You could see it you could feel it. Unsettled for sure. In his core you could certainly feel that. It doesnt change the potential magnitude of whatever breakdowns happened along the way and whatever the ramifications are going to be now by virtue of these two horrific accidents and all of the fallout as a result of it. Whatever his fate will be, i think a lot of his fate when we look back on it is that he made a mistake as a ceo he managed the stock price in the crisis, rather than managing the crisis and the business itself and i think a lot of the missteps are represented as evidence thats exactly what they did. Here is the smoking gun, if its accurate, that he knew about the test pilots complaints about the max before the second crash then how do you keep him in his job, right we will see how it all develops we may not get those answers for some months ahead. Lets get the headlines now from sue. Hello, everyone here is whats happening at this sour Saudi Arabias Energy minister says a planned Stock Offering of a small part of the staterun oil giant is on the horizon. And that the direction of the kingdoms crown prince he spoke at an investment conference. Its going to come soon, as the asset was saying but it will come with the right approach and definitely with the right decision and it will be a saudi decision, first and foremost specifically, the princes decision. Turkish president says he will not recognize a nonbinding House Resolution to recognize the centuries old killing of armenians as genecide. Here at home, a new study from Johns Hopkins says that fetal exposure to tylenol may have harmful effects on the child later in life. It found children in the womb were more hikely to be diagnosed with adhd or alwaystiutism. Who else but pete has those trades coming up for you when we come back. And the count down to the fed decision continues you are looking live who is that, pete . That was great. Who was that . I dont know. Geez. That was not keith jackson. Were back after this thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. I cantwhat . Ve it. That our new house is haunted by casper the friendly ghost . Hey jill hey kurt movies . Ill get snacks no, i cant believe how easy it was to save hundreds of dollars on our Car Insurance with geico. I got snacks ohhh, i got popcorn, i got caramel corn, i got kettle corn. Am i chewing too loud . Believe it geico could save you fifteen percent or more on Car Insurance. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. When i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. Shares have fallen more than 14 in the last month, but options traders think the brewer c could be set to pop. Pete is here. It did take that big fall, scott. But ill tell you whats really interesting. You can see that right here. But stock was trading just a little over 80. 5 at the time they were buying these the 81s theyre buying, they expire friday. This is not a full expiration cycle. These expire in a couple days, so it either has to move or its not. I got another real quick one for you. Kre, when you take a look at the financeables, this is the regionals. Take a look at this move is it ready to break out to the upside they were owning the november 534 ca553 calls. Theyre selling december those are trading for 1. 20 right now. It gives them a little time. Ill be in these through that december expiration cycle. But i like what were seeing in the financials and now maybe we got a chance for these regionals to bust up to the upside. Thank you come on back over. Leslie picker joins us now with the market flash on green light capital. Scott, wanted to share with you all the highlights from green light capitals Third Quarter letter out just a short while ago. Devoted quite a bit of time in his letter to netflix, that the firm actually converted into a put position during the quarter. He took aim at netflixs Business Model and the companys accounting while also writing at a time when the market appears to be reevaluating companies that demonstrated poor economics, we think netflix, like many of its shows, is in the process of being derated. Greenlight also exited its position at caterpillar at a loss while closing the short position in nvidia at a profit. It returned 5. 6 at the quarter at 24 thats outpacing the s p 500 over both time frames. Continues to have what you can call a bit of a comeback. In his short position specifically he did say he had a material loss in tesla and noted that his quote in this letter is the accepted reality appears to be that elan musk is above the law. Thats been something hes been watching for a while it will be interesting to see if the Fourth Quarter is any different than that. Thank you desk is ready to answer your questions next fitbit and more. But first kelly tells us whats coming up on the exchange in just less than 15 minutes from now. Yeah were going to talk about the next fed decision on deck with trade once again front and center the event that was supposed to be the setting to sign a trade deal getting canceled. Plus, coming to Mark Zuckerbergs defense what he said facebook is getting right versus the competition. And the battle for your ears who has the better product, apple or amazon . Well have a live review see you then the Halftime Report is back right after this when you look at the world, what do you see . Where others see chaos, we see patterns. Connections. Relationships. When you use location technology, you can see where things happen, before they happen. With esri location technology, you can see what others cant. This piece is talking yeah . So what do you see . I see an unbelievable opportunity. I see bestinclass platforms and education. I see awardwinning service, and a trade desk full of experts, available to answer your toughest questions. And i see it with zero commissions on online trades. I like what youre seeing. Its beautiful, isnt it . Yeah. Td ameritrade now offers zero commissions on online trades. All right. Ask halftime time for that. Joe, you are up first. From joe in florida, what happened to wells fargo . I purchased wells on friday morning. It got up to 50. 71 its recovered now it is back towards 52 and i love the Technology Inclusion that hes Technology Inclusion hes going to bring so im staying along. Steve weiss, to you you still in xpo no, i sold it way too early. You sold it but you think its too early i sold it too early because its now about 20 , 15 of where i bought it. Thats what i mean. No, i would it may but ill tell you whats going to go a lot higher fedex. Fedex is ten times next years number were already looking at 2020 earnings this is a lot more expensive than that. Its about 50 premium pe basis. So why not own fedex they kicked out amazon theyre focused on profitability. Everybody downgraded after the Earnings Report. To me, this is a layup trade. Pete, to you from shaun in singapore. Wow. Is there still upside in fitbit . I think there is. That makes a lot of sense because of the watch and the success with apple there and obviously they want to go here in health. So it makes a lot of sense to me the other day, they bought about 25,000 calls in this stock so im in it so, yes, i think there is upside thats why i bought the calls. Lindsey, to you from terry in atlanta. Good time to get into the xly discretionary ahead of the holidays. Exactly the Fourth Quarter is the strongest quarter for consumer discretionary. So its a great time to get into xly. Consumers feeling confident with Interest Rates going lower. Like joe said, refinancing is going to help them spending through the Fourth Quarter so i would dchbefinitely get in now. Thanks. Final trades coming up fred michkin, kelly, and jon bell lows. E cion ithdesis just over an hour away. Theres the lineup were back in two minutes. Servicenow put our workflows in the cloud. This changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. Whether youre or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. Switch now and see how you could save up to 400 a year. And get 50 off when you buy any new lg phone. Xfinity mobile. Click, call or visit a store today. Go to adg trin nation. Cnbc. Com. Listening and observing are Critical Skills for scientists at 3m. One of the products i helped develop was a softer, more secure diaper closure. As a mom, i knew it had to work. There were babies involved. And they werent saying much. I envisioned what its like for babies to have diapers around them. Thats what we do at 3m, we listen to people, even those who dont have a voice. At the end of the day, we are people helping people. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Apple reports after the bell according to our data partners at ken show, over the past eight quarters, the stock tends to move higher 75 of the time after earnings with an average gain of 2 for more, go to cnbc. Com kensho. All right welcome back want to check shares of at t which we havent talked about, guys, yet. The stocks a little bit of a mover today. Up a third of a percent. Im sorry, threequarters of one percent. The new hbo max, right their streaming offering 15 bucks. Theyre into the fray now along with everybody else. Seemingly. Youve been a verizon guy. I have. Does this change your perspective on which is the better stock to own from here . Stephanie link off air changed my perspective and she got out of verizon and into at t i think both work. Ive been in verizon for quite some time and im trying to stay disciplined to stay with it. But i think the story for at t is one that has changed and i would not be surprised at all if at t outperforms verizon. Great interview today and far reaching out in hollywood. All right. Final thought from lindsey bell, thank you for being here whats your final thought for us well, ive been watching the j. P. Morgan Global Manufacturing index. Its ticked up for two months in a row. It seems to be indicating there is a bottoming in the manufacturing economy coming that along with a steepening yield curve, this is something we need to be watching because if we get a trade deal, then it could be off to the races for the industrials. Okay. So we got about a minute left. Lets do some final trades pete, why dont you kick us off . This budweiser paper really caught my attention. The fact its so shortterm and the big pul back its had. So budweiser. Big shot. If it was molson coors, would you be excited well, you know how i roll what do you got masco strong margins on this Earnings Report today staying with it. Okay. Steve weiss. Alumina it should be up because reimbursement is actually picking up for gene mapping, which is critical to so many different diseases and cancer. So i take this as an opportunity to buy it. All right lindsey, Home Builders been a good trade does it continue up 40 year to date look, were going to get a rate cut this today. And weve seen the last two rate cuts with that affordability we saw that in the gdp report this morning residential investment up 5. 1 . Thank you for being here. The exchange begins right now. Thank you, scott hi, everybody. Heres whats ahead. The countdown is on. Its an hour they got the goldy locks Economic Data theyve been waiting for but the cancellation of next months apex summit in chile. Plus, weve got the mother of all earnings expectations for apples report after the bell are pretty high with the stock hitting new record day after day and with will we get any more color on the launch of apple tv plus . We will ask. Plus, flat sales are forcing one company to change its name how garmin