The final techs, and the Trump Administration places new sanctions on iran putting the middle east back in the headlines. Were down 90 appoints or so down about ten basis points. Joining us for the shore is dan nathan from risk reversal advisers wassail pullback warranted when you think about how we closed the year out, the fact that were kind of up a percent, the s p 500, a couple in the nasdaq more of the same, similar outperformance that we saw, tech stocks in particular the market is digesting a bit. A lot of news, volatility. 29,000, of course, where were below that level we did have three record closes, with the ten basis points of declines 58 1 2 minutes left. The dow hitting 29k earlier in the session. Were on watch to see if it makes it above that level. Bob pisani Steve Liesman is wrapping up the jobs report, and sean darby from jeffries is here with his outlook. Two strong updates. Valuations are very my s p 500, of course a new high. Earlier today, i just want to point out from 28 to 29,000, was only the beginning of middle of november at this point lets show you where weve gone. Apple, unitedhealth, Goldman Sachs, theyre two third of the gain since november 15th four other names, theyre the other 35 or so of the move there. So we have seven stocks. Thats what we talk about when we say the yearsall advance has narrowed significantly weve had new highs, though, most of the bigger sectors are new highs. Industrials, consumers discretionary, and communication services, all 52week highs, all of them off theory highs earlier in the day. Thank you lets turn to the jobs report. Steve liesman has the details. Good afternoon, roughly inline jobs report closing on 2019 shows a modest cooling here avrng hourly ranges disappointing, maybe because of the manufacturing job losses in there. Leisure, hospital almost the same maybe the result of trade problems, Transportation Warehousing also down some of the commentary that has come in, with an interesting note here, people not at work due to illness 1. 119 million, the highest for december in over a decade its been a particularly different flu season, but good advice to get your flu shot. The labor mark is not so tight the absence of wage pressure, enduring mystery, just maybe the labor market isnt as tight as the headline numbers make them seem steve, the ties to the week, i wonder how closely tied softening in terms of wage growth is, given the fact that those tend to be higherpaying jobs so theres two forces at work, morgan, you lice manufacturing, which are higher paying jobs. Those are lower paying jobs, that would also depress the wage those two factors could be playing a role the more enduring, since the beginning of the year, wage pressure has come down amid a very tight labor market. 3 1 2 steve, thanks for that mike well, if were going to start out with what im calling a semisweet memory, that memory of about two years ago, the market rally is recement belichick sort of a twoyear plus threemonth chart we get you this leadup up into jag wear were right here, about january 10th, here we go, going up to that point, its a roughly similar advance. This was, i think 13 , thats 15 . That was a market that legitimately merited the label every meltdown we had a much more high momentum move. Wasnt quite as much it is the lowest investment agreed level of corporate here were, on a 3. 9 , so obviously with the same equity valuation, it seems as if right now, obviously lower treasury yields, it seems as if thats your explanation for why especially the large Growth Stocks are working right now. It seems like its a very familiar setup, but im not suggesting were heading up like we did pretty similar. Most of the difference is in the treasury yield, so it is about the same. Mike san tolli, thank you does it feel like jack 28th to you . If you think about it now, year over year, its being cut in half from the highs or where people were expecting it to be tess end of 2018 what we didnt know, we couldnt quantify, the similarity is we could quantify this trade war i thought the commentary was about as clear as mud, the president is already walking about one of face two, if youre telling me it means 10, 20 billion more in ag purchases, that doesnt do it when you think about the manufacturing number, thats the thing i would focus on for 2020. That plays into what youre talking about. The boeing situation continues to get worse so theres a lot of knockon effect i would argue that we dont have the clarity, you know, half a percent from an alltime high is suggesting that we have. Also cant help but think the contraction were starting to see, all red counts coming down we have seen a correlation between mining and manufacturing as well. Listen, lets put it all together what also is really different is that the fed cud Interest Rates last year, three times for the first time in ten years. It will be about half a trillion, so at this pace well be back at alltime highs. All right. A bit more on lets bring in sean darby welcomes what are your thoughts . I think the big difference is the fed has locked down the short end of the yield curve, and sort of all about the yield curve shifting up in one go, and taking a very big hit on the cost of capital. So in many ways up until q2, the fed has your back. Its the long end of the curve we have to think about and you will compares to where we are 12, 18 months ago, the dollar has weakening youve almost had a double, triple easing compared to 12, 18 months ago essentially were unwinding in terms of whether or not youre constructive or not, what is your view of Earnings Growth the sense, where we are around its going to be something between 8 to 10 Earnings Growth. The thing for me is this judgment about the trade dispute can all be reflected in infantries we saw the day to day, wholesale infantries that should mean sometimes from q2, it does tart to kick in and start to rebilled inventory. I look at the crb, rind index, and theyve just been starting to pick up and break through some of the longterm moves averaging. How much hinges on the dollar and the next move there . A lot i think even today, still money is going into money market funds. It was a record year to government bonds, fixed income in 2019. Dan, do you careful about the dollar i do, and this 96 to 100 range is kind of where its been for the last 18 months, it hasnt had much of an effect quarter to quarter, but i will say that thats what happens when we entered q. E. , thats what they did again, right so i guess i worry about everything that sean just said in the context of this is a midcycle adjustment, right . But where is the cap ex . The inventories might have been building because of double ordering because of the trade war. I take your point coming into an election year, a lot of uncertainty going out and building Huge Investment projects i think the one thing, again, just about the dollar is anytime the u. S. Federal reserve has done q. E. , the dollar has always weak end sean, in terms of where you perhaps could be wrong, im looking through your notes, your 2020 outlook, you are modestly bullish on every single country. We try to keep things reasonably equal. Youre not bearish on any country . Not we think every equity market the irony is a weaker is incredibly reflationary for emerging markets and europe. As i said, most of the Central Banks in the g7 have real Interest Rates negative, generally a great backdrop for equity markets whether they wentz positive it was a disaster i think we may be in a regime shift where Interest Rates remain negative for a lot longer now. Do emerging markets look more atrachive than, say the u. S. They do i think you could a big kick especially on the signing of the trade dispute so, yes, you could get some really very big moves in the end markets. Sean, thanks for joining us sean darby. Still to come here on the closing bell, boeing involved in another messaging mess after new documents show that the 737 max was, quote, designed by clowns, who are in turn supervised by monkey the potentially fall joy, straight ahead. Has l brands been so bad that now its good well get the details on closing bell. Keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Because its tailored to you . Take the personal assessment and get matched with a proven weight loss plan. Find out which customized plan can make losing weight easier for you myww join today with the ww triple play and when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk we have just under 45 minute to say go. Shares of kb falling, the company said orders came in above estimates but that the average sales price was lower. That stock is down about 3. 5 . Shares of Urban Outfitters falling as well. Companies said sales at the Flagship Store declined due to increased promotions that stock is also down about 5 . Boeing releasing internal messages today, that had harsh phil lebeau has the story for you. Hey, wilf, this is an embarrassing set of emails and memos from 2013 all the way up to 2018 revolving around the 737mablgs development we wont go through all of these. One of them is i still havent been forgiven by god are regarding the covering up, then theres this one this airplane is designed by clowns who, in turn, are supervised by monkeys. Whats been the reaction of this first of all, the faa says no smoking gun near Spirit Alliance announcing it would lay oaf 2800 workers starting on january 22nd spirit builds the fuselages for the 737 maxes, they have not done production since the beginning of this year they have a big backlog, and its unclear what would be the repurr kiss for that . Criminal charges, another could be visit criminal charges, deposition on what the doj investigation comes up with, or clearly charges against boeing you could see boeing when this doj investigation is over, reached some kind of deferred settlement, where they say, okay, were going to agree to x amount of fine then were going to maybe have some oversight you know, whatever the doj believes is appropriate there. Thats assuming the doj ultimately says, look, theres enough for us to bring some charg charges. You mentioned spirit air systems, that stock is down 3 , but quite a number of the major 737max suppliers are trading lower today as well. Allegheny, ge, triumph for name a few. Is there an expectation to see more of these layoffs as we get into earnings division. Im not sure well see layoffs at the size of spirit. They get half the revenue from the max program. It has a much bigger connection that other Aerospace Suppliers it will hurt all of them to some degree, the First Quarter maybe into the Second Quarter as well, but spirit is the moexposed to e max. We have 40 minutes about the bell right now the dow is during this timing lower towards lows of the session earlier today, down about 117 points s p 500 down about a quarter of a percent as is the nasdaq up next, word on the street, find out which stock was downgraded not once, but twice by the same analyst in less than 12 hours find out what to expect and what the results will signal about corporate profits later, here on closing bell. What a time to be alive. The world is customized to you. Built for you. So why isnt it all about you, when it comes to your money . So. Whats on your mind . We are edward jones, a 97yearold firm built for right now. With one Financial Advisor per office, were all about knowing whats important to you the one who matters. Edward jones. Its time for investing to feel individual. Welcome back to closing bell. It is time now to get to the word on the street Deutsche Bank upgrading the l brands, says the holidays sales of victorias secret tips the scales more toward a split also noting that the opportunity for action is fairly limited. Wells fargo down grading six flags not one, but twice yesterday equal weight rate, and down today to underweight. Bullish, saying while weak necessary is record discounts, this decline wont last softbank continues to lead i think this is an interested note from Public Market sales and research analysts, china enticed people into what is sort of a private market investment vehicle. I think thats why i still have the biggest disconnect with what theyre trying to argue, it may by the discounts are there as part of the valuation, but its pretty debatable you can get some for companies, so i still think theres a massive gap in any numbers thats undefinable at this stage. I dont now how it benefits a investor here. Then we work, and theres been no shortage of large investments that they have made where you see that theyre suretying businesses or employees. I just dont know how you express those views. I think just in the last two days alone and or pursuing layoffs. Anything that really got my attention is Berkshire Hathaway, given the fact that Berkshire Hathaway does have a massive insurance float, with a big focus on cash flow, when it comes to investing in the companies that are not insurance related. So interesting. Interesting its unique in terms of the assessments, but one of the arguments they make is its like the s p 500, if you want exposure, this is one of the only ways you can do it. But it might well be those types to the next decade. I dont think it all adds up for that. One other point, public investors at least here in the u. S. So im not sure, to get some fairly pickedover private investments makes sense. Up next the result of a new poll by Goldman Sachs. Plus weve got your lastchance play and as he we had to break, heres a check on bonds, where yields are lower across the board. At fidelity, online u. S. Stocks and etfs are commissionfree. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk welcome back to closing bell. We have 30 minutes left to go. The major averages are lower here are the three things driving action the overall market remains solid. The signing of the china deal appears to be on track for next week and the Trump Administration places new sanctions on iran, putting the middle east back in the headlines. It is time now, though for the cn. News update. Heres whats happening at this hour, everyone. As the Senate Impeachment trial draws near, amy klobuchar, campaigning in iowa, said it would be a sham if witnesses were not called. I think we should and must have more witnesses. It would make no sense to me and onwe would get any airing that the American People expect. Dozens of protesters gathering outside the new york courthouse where jury selection in the Harvey WeinsteinSexual Assault trial is taking place. They say they said to raise awaysness for Legal Systems that do not work for rape victims the flu is widespread in 46 states, from the cdc, 87,000 people have been hospitalized. You are up to date thats the new update this hour. Wilf, back down to you. See you again next how mike wilf, this is about candied fruit. You can imagine which stock this will address apple has been the story, this is the setup for analyst sentiment. You can see the number of buys has just inched up, the stock has forced the street to become incrementally more optimistic as its blown through the valuation range. So you see here, the symptom price still is kind of going very steeply upward. The price target is creeping higher, but really youre not having that kind of capitulation that you might otherwise expect. Now, another look at the valuation, not just about pricetoearnings ratio, this is the free cash flowed yield apple is on track, according to analysts this fiscal year to have about 60, 65 billion of free cash floup. Thats roughly what it had in fiscal to 18 the market is incredibly willing to seize on steady cash flow streams. So the cash flow is just the inversion. Look how cheap this looked up here with roughly a 10 free cash flow. Now its bled to down to about 4 1 2 its basically just gotten to the same level as the broad s p 500. This is the cash flow yield versus of market so essentially theyre saying its worth as the broad s p 500. Can it last, is the market right . We dont know, but that really is whats been happening its more confidence that you can rely on this, not as much about people saying, hey, were going to see a huge growth spurt necessarily in sales or in the top line for apple. Plenty of cash on hand, and either way they do, wilf, but the market cap has gone up so much, the net cash that apple has really is not as material as it used to be, like 20 or 25 per share in net cash right now it used to be, thats a much bigger percentage. But still quite a lot of scope with the cash flow for buybacks. Without a doubt despite the massive runup. Well, thats whats interesting. Well see what they say about their appetite with they valuation levels. Mike, as always, thank you. The dow hitting session lows moments ago off hitting record highs earlier in the session, which also took it above 29k were just under half an hour left in the session, down about half a percent. Institutional investors are split, according to the latest results of the Goldman Sachs marquee poll joins is Tony Pascarella thank you for joining us great to be back the broad one in terms of outlook on the s p 500 was still more bearish than bullish, but less pronounced than last month. Thats exactly correct. I think what we find is that couple times in the context of remarkably good returns. A 31 total return s p, and yet on net a very balanced bull versus bear skew so when we look for signs of excessive risk taking or irrational exuberance, to coin an old phrase, we just dont see it you also asked the question about which major equity market do you expect to form the best it still continues to be the s p. Exactly correct in the postcrisis per its now returned over 500 . So its been the best game in town at times the only game in town internationally, and our franchise flow and survey work reflected that what is interesting if youre month to month, period to period, clients are starting to shift more chips into other buckets. The one that stick out was europe and the uk. I also think it part ly this is a very clear takeaway of bulls to bears it just broke out to a sixyear eye. We say theres two features that seem to be appealing right now one is in the context of its called gee on political attention, he and lower real rates. Tony, is it pocket that that irrational exuberance is just stuck in a handful of stocks we think of microsoft, apple, up 60 , 100 is that where the exuberance is . What i find remarkable is there are moments of radio station, moments of cyclicals versus defensive painful rotations at times just continue to say make a higher high. You wonder about the narrows in of leadership it would have been very clearly geopolitics. If we were serving day, people would feel better. And in terms of the view of how that the gold price has gone up. Any takeaways there . A 3 to is ratio of bulls to bears. Buyers of gold, bonds, and shot throu through. We have 23 minutes, at or around the session lows. Down at 45 points, half a percent, a little less than that with the s p and nasdaq. Coming up well like at the larkcap names that they say could be big winners. First we come back with your lastchance trade. Dan is looking at one ipo that has fallen over 20 in the last three months stay tuned well be right back. Dont get mad. Get e trade, dawg. Now you can, with shipsticks. Com no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. 19 minutes left to go. On the top those three major averages trading lower, theres also a look at some of the big tech stocks trading at alltime highs. Adobe, salesforce and microsoft. Theres a mixed picture for those names. Dan, what do you got for us we were talking about some of the recent ipos. One that traded well one of the things why in 2020 this could be an interest names, one of the things that differentiates it from some of the other tech ipos, theyre nearly profitable and expected to profitable in 2020. It is an ad model, so when you think about who is the monopoly there, theres a whole host of issue that is facebook and google you are facing. Amazon is growing that advertising pace where pinterest does well is in that space i think you could see walmart make a bid as a twopronged approach they already bot jet. Com. You see it as a takeover target i seek the jet. Com founder may be looking for an exit Ben Silverman would be a great new ceo of walmarts ecommerce, and customers can start pinning stuff all over the place exactly. I like that i like that. Thank you here we go. This is the last commercial we are going to take before the close up next well bring you uninterrupted coverage of the final minutes of trade when we take you inside the market zone. As we head to break, here is a check on the major averages. You can watch us live, on the go, on the cnbc app. Look at that the dow is down about half a percent, similar move lower for the s p. Closing bell will be right back find the best instructors in the world, and tie it all together with a worldclass software experience. We ended up creating, as you all know, so much more. Peloton is truly a category of one and were just getting started. Now, lets do this. Together, we are going further than we ever thought possible. Actions speak louder than words. She was a school teacher. My dad joined the navy and helped prosecute the nazis in nuremberg. Their values are why i walked away from my business, took the giving pledge to give my money to good causes, and why i spent the last ten years fighting corporate insiders who put profits over people. Im tom steyer, and i approve this message. Because, right now, America Needs more than words. We need action. You should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. With 123 minutes left in the trading day, majors are lower. Were now in the closing bell market zone, commercialfree coverage of all the action going into the zone. Keep an eye on where its at over on the right side of your screen. Mike santoli is here to break gown the crucial moments, and we have nathan heres well. Lets kick things off with the december jobs report, which was out earlier. It showed the u. S. Economy added 145,000 jobs expectation of 3. 1 , but michael, in all, this wasnt bad enough or off the market enough to justify big intraday pullback oh, for sure, yeah. This was obviously out at 8 30, the i think is more or let fits in with the general view. If you were looking for the economy to show signs it was truly accelerating, this wont actually give you the evidence i think it was roughly as expected anyway already looking for, i guess further reasons to say sidelined. This certainly didnt change anything. Which is exactly the point i was about to are you kudlow and cramer they were echoing the fact that though gives ammo to beat up on the fed and ease again josh, here is your 2020 playbook highlighting the top pick, there are are tougher comps, but its also like salesforce on pace theyve had crm delivering margin it is higher end of guidian. Adobe also as a fresh high today. Into it, moving into the fast lane, they write whats interesting about these names, theyre all enterprisefacing companies. What does it say about the expectation you could see increased cap ex, maybe better consumers sentiment . Intuit has not fally caught the wave of the mania, even though its off to the side a bit dan, where do you stand broadly on the tech space . Do you think it continues as apple i think people cant find a reason and usually what that means is youll find a pullback for a reason that you just cant expect one we can expect is earnings, and a trend we have seen is nice runups in some of the strongest names into earnings, or actually whole groups weve seen selloff, digestion in the weeks after earnings. When you think about it here, as we head into q4, what people are mostly focused on is 2020. Correspondent managements i speekt will not be that aggressive theyre really the same headwinds from 2019. Tesla getting a bullish call, upping their target to 553 thats a new high on the street. Pipe irpoints to the exclusive, saying if tesla can replicate that, it will be weak for tesla, if the stock is up 10 send monday it feels like theres a narrative shift. It seems like the narrative is being fitted to the stock chart. If these can replicate this success. This note did have some fundamental upgrades as well, though whether its tesla or tech stocks, theyre catching up. But either way, this isnt going to its slightly irrelevant, but it was more than just playing catchup upgrade. Is it a tech company or. Listen, what i struggle with most is this is a company that delivered maybe 373,000 car. North america about 16 million a year the average selling price for a car in america is 35,000 that model 3 is much above 35,000. The average price in a car in china is 15,000 you can build all the factories in want in china, but you wont be able to sell a lot of 35,000. Unless their costs are lower. Listen, i just dont know, this is one of the biggest manias i have seen in my 23 years of business. You can been really wrong and really right in the same year. Im offsides go look at twitter on it, but if youre buying it now for the china things, you kind of missed it on a shortdetermine basis. We are down 121 points on the dow, just recovered a bit from the low of the session. Shares of grubhub sliding after smacking down rumors of a potential sale hi, dee. After no small speculation, grubhub unequivocally denying the report heres where the food delivery doors stan doordash still with 37 . Grubhub close behind uber and postmates trailing in third and fourth this is a crowded feel despite some consolidation we could see it further consolidate as they burn through cash to compete. Back to you. As well as the other competition you just listed, where does amazon now stand . Good question last year amazon actually shut down the food Delivery Business here in the u. S. , but as you know, it led a more than half a billion investment into deliveroo in the uk at whats speculated to be potentially one of the logical buyers of grubhub were it up for sale dee, thanks so much. Shares rallying around 20 indicate rogers has more beyond meat is soaring, pacing for the best week since july 26th. Thats thanks to a slew of headlines. The partner established its partnership with mcdonalds and announced its launch, both of those in canada only right now it also got a pop, impossible food said that company was in and out currently going after a partnership. They said it could reach 130 if a broad are partnership materializes here in the future. The stock is up just under 300 from the ipo price, back over to you. Kate, is a meatball not just a different shaped burger . Sure. That wasnt the followup i was expecting, wilf. [ laughter ] to each his own, i guess im not an expert on that. [ laughter ] do that rather than thats what i mean. So sort of surprised this is a new launch canada has been a test market for all these plantbased alternative. Beyond meats is no exception well have to see when theyre in the u. S. With a big player like mcdonalds. Beautifully pivoted to make it relevant from my ridiculous question. Thank you very much. Thank you mike has more on the market, just off the lows, but clearly close to the lows. Yeah, a bit of soft footing underneath the market. The advancing volume well below defining volumes this has been a relatively weak, staticy indicator. Hour, if you look at new 52week lies versus lows, very, very lopsided then just to get into the character and style of the recent stretch, the nasdaq versus the 100 equal weighted s p. You see its almost a percent and a half for outperformance. We have two minutes left to go over to rick san telle for a check on the bonds as well. It wasnt a spectacular numbers for jobs this morning. 140s isnt bad, but we lost average hourly workweek time none of this was good news, and it was reflected in the intraday were still up three basis points on the day. And if you open the chart up to september, weve been closing a lot lately between 180 and 190 fwerta, even with a down day in the nasdaq, were still up a whopping 160 points on the week. A reason why . Apple. Contributed to more than dwight its two next biggest stocks this week for the nasdaq. Apple up 15 of the last 16 weeks. But in terms of sectors, were seeing a bit of a rotation here. Software is starting to outperform up more than semis they were among the biggest gamers chips meantime selling off a bit, bobble. Yeah, its about time, birth ha we two strong up days, and its no surprise, weve been talking about skyhigh valuations for a while. Theres a weekly chart of the s p. We are up about 1 for the week, though, just off the lows for the day. This will be remembered as the brief oil rally of the end of december, finally ran out of steam. Companies like diamond offshore, all the big drillers notably theres the closing bell for this friday. Just off the lows, s p 500, theyll hit a record high earlier on, but closing near the lows. If youre just joining us, welcome to closing bell. Im wilfred frost. And im Morgan Brennan in for sara not far from the session lows, which meant down a third of 1 for the s p, the dow down a bit more than that we did have a few down sectors in what has been a turbocharged week for news, geopoliti geopolitics, data, all the major averaging closed the week higher joining us to talk about the market is Courtney Gibson, president , and dan nathan is still with us. First, we go to mike santoli the fact the dow did close down near session lows, what does that tell you . Obviously minor for a teak is the way i would characterize it. And its due for some kind of breather im not seeing very much and obviously we still did have the nasdaq outperformance. Is that justified in your eyes do you think earning season could be a concern i think a lot of the teams have learned that are lesson candidly guidance had been brought down pretty substantially, so i think the bar is set low as long as these companies are meeting and achieving these objectives, and gives Forward Guidance thats positive, as long as those things are happening, well continue to see a strong meltup. I think stability from a global perspective, stability on trade and geopolitical issues will definitely assist this earnings season to continue the rally higher dan, i realize we ended up closing down triple digits, but the fact that the dow did cross that 29,000 level earlier in the session, one of the points thats been made, its just been a small hand offul names that powered gains. What does that tell you about the narrowing of leadership. Mike has probably dock a lot of market flashes on the narrative. It makes me nervous when you see fewer and fewer stocks doing more and more. A couple points. You started out by talking about the russell 2000 we know that Russell Companies are back to one of your other market charts, much more exposed to the fluctuation, much more exposed to some of the issues. Led see the sort of guidance we have there courtney is correct, as long as they Companies Keep putting up conservative guidance, the market should continue to move higher last year activity earnings earnings expectations were going to close basically flat to up a cup 8 right now everyone is expected 8 , 9 , so at some point if that doesnt look likely, were not going to close up double digits in 2020 last month of the year, 2019, you saw the small caps, russell 2000 finally start to pull ahead. That seems to to have come off is that a who irright now . The russell has no magical predictive power, but there was an attempt at a bigger rotation. Into small financials, into deep cyclicals, into value stocks that has basically flatlined but growth is certainly outperforming, certainly been contributing the margin of up side that weve gotten in the last, say, 20 days. The deep cyclical things didnt just flatline its about to make new lows. What im saying is these are americana, these are some of the companies that were supposed to be, you know, benefiting from this trade war. And if youre an index fund, you dont care or worry. Unfortunately. Right im saying as wee trying to read the tea leaves, the beta trade failed, the deep cyclical failed and its gotten narrow. Courtney your thoughts on this call me an optimist, morgan. 82 of the companies in the s p 500 are above that moving day average. 82 . So this rally is not as narrow as its being purported to be. Numerically, when you think about how many points theyre controlling, yes, but 82 are above their 200day moving average. Im incredibly optimistic, and again, i think we will continue to move forward as long as these companies do what theyre supposed to do the percentage of companies in the red have reached the thats the highest level ipos doesnt surprise us. 40 sounds massive, only a few like ge and tesla are bigmarket so as a matter of routine, a very High Percentage its smaller companies. Also, yes, there has been a toll rants of companies about not even being run for profit. Plus youll have some slips below the surface. The Earnings Quality question is something that will grow as the bug mark returns, all the ways we massage the numbers, and having it diversion. They talk about the dash for trash in relationship to ge and some of the other names. Ge was an interesting one, at one point it was a hat size, and it closed up 100 from the lows. Companies that lose money that have a lot of leverage, right . So when you can get an inflection point, then you get big, big gains it doesnt matter. Back to mikes point, ugetting big gains. Apple was up 86 last year its a winner take most world in a lot of industries if you want to complain about the market being narrow, its narrow in some of the most profitable businesses that have ever been on the planet. Its been a wild week for the market bob pisani is wrapping up the week with the weeks biggest movers big movers and shakers. Mcdonalds had a great week, expanding their tests with beyond meat. Thats a great one there goldman was up they had a restructuring announcement but the rest of the bankses not so much. It was the week oil and oil stocks reversed after that very brief rally. Chevron down every single day this week. Certainly did not help their stock price. Guys, back to you. Courtney, as we look for the year ahead, where is your preference for sectors, particularly with earnings season im incredibly excited. You can bet against jamey dimon, and i think its down about a percent or so today, but im very curious to see the returns. I think theyll be pleasantly surprising, and not just in the u. S. , but as we continue to look across the globe in financials and investment banks businesses, so although that ipo market has had somewhat fizzled a business. Theres still a ton of m a, and a ton of assets being managed by a lot of these large moneycenter banks im incredibly excited, and tech is going to continue to boom thank you so much Courtney Gibson and dan nathan up next, well dive into 2020 predictions, and why one market insider says blackrock is wall streets object of desire back in 45 seconds rds whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. A daimler deal, and blackrock, and asian buyout all in 2020, perhaps, those are all part of rob coxs prediction and prediction 2020, turning up the heat he joins us now. Theres tasty deals hoar lets start with the lets talk on blackrock Goldman Sachs. If you red steven schwartzmans book this year, he said one of his heroic mistakes was letting blackrock go so we thought, as you see blackstones market cap has come up to closer to 60 billion you could reeye unite the two. Lar larry fink is obvious name as a possible treasury secretary, maybe this could work, you could we calling it the Rolling Stones we thought t. Wait a minute, if blackrock is up for grabs, one of the ones we came up with Goldman Sachs. Its tried to get further into the assetgathering business. Theres a lot of argument for why this mike not work im just the editor, my team, theyre the ones who do the work we always make that he provocative. The Goldman Sachs points, they make at any point in the last decade. But so theyre an 85 billion Market Cap Company i think blackrock is about 10 to 15 billion less. The only way it works is if you structure it essential as you pay a bit of a premium a merger of equals theyre particularly different in the Financial Service business, but its not inconceivable. Daimler, mercedes and bmw. One of them that came out of our thinking, a couple years ago, this whole idea of Climate Change we thought was a pr stunt, then a marketing then, then an assertgating mechanism. Now its become a bit more real. Investors feel they need to do something about it western lukie i we were lookt the pupegot deal, as well as autonomous driving you look at the cap ex involved in this, its massive. So we thought, wait a minute what about bmw and daimler theyre not in the same town, but in the same country. But at a time when theyre swooping in and buying ought european auto manufacturers, that could be also be a reason take some advice from carlos ghosn. One of the issues there the fee at family have Something Like 27 they are still going to have the largest vote and largest share, and the family behind bmw would still have that even in a deal with the chinese regional politics i think makes it a tough one, but one of your other predictions is about a massive leveraged buyout taking place in asia yeah an 11digit buyout theres only been two in asia. Theyre about to close one of the biggest funds ever for the region, and its bigger than the u. S. Fund. So we ran the numbers. It looks like theres a possibility, we sort of point to a couple names, mainly japanese. Thats partly where you have companies, and you have a real change over the past few years in the way that the japanese view private equities. There have been a couple deals, and were out of time, alas. Hey, thanks for having me very interesting, instead. Well worth reading the full writeup we have a news alert. Two faa fines are being proposed, one against boeing, one against Southwest Airlines faa is proposing a 5. 4 million civil penalty against boeing for installings nonconfirming slat tracks in. This is in addition to a previous fine or civil penalty of 3. 9 billion. Just as a reminder the slant trags are located on the leading edge of the wings used to move the panels, also known as the slats. The second fine, a proposed simple are civil penalty of 3. 92 million against Southwest Airlines for allegedly operating multiple aircraft on commercial flights with incorrect calculations of weight and balance data this is a story that first came out in the middle of 2018, so again two fines there, one against boeing for 5. 4 million, one against southwest for 3. 92 billion. Both million, i should say. Both being proposed by the faa guys, back to you. The faa has no teeth to holding them to this. They would say its commence rad with the violation there its not like this is something that boeing and southwest can ignore its 5394 million going to break the bank no, but it is nonetheless a civil penalty of some note those in addition to 3. 9 million on a previous issue with slat drabs on 737mg model, this doesnt have to do with the actual max grounding. Correct correct. Phil lebeau, thank you. Up next, we will break down charts to see if the nasdaq will continue to outperform the other major aenchs, and where the biotech stocks will keep booming. A reminder, you can always watch you live on the app. Closing bell is back in a few minutes. Modern utility for modern obstacles. Lease the 2020 nx 300 for 359 a month for 36 months. Experience amazing at your lexus dealer. Looking to get your business off to a fast start in the new year . Its go time switch to comcast business and get fast internet on the nations largest gigspeed network. Plus, complete reliability with 4g lte backup. And, cloudbased security to help protect the devices on your network. Greenlight your business in 2020 with fast internet and voice for 64. 90 per month. Switch now and get a 100 prepaid card when you add comcast business securityedge. Call today. Comcast business. Beyond fast. Welcome back mike by that, i mean going for the fun, fastmoving popular nasdaq stocks over the more basic s p 500 stocks which is a chart going back ten years. You could dre a steady straightline up here although whaunz interesting here is we just poked this is the kind of stocks with the winner take all kind of markets the top five stocks in the nasdaq are also the top five in the s p. Thats only a recent thing that was not the case all the time however, when somebody says this environment is just like 1999. This is the 21years version of the same chart what i pointed was this nice trend here. Look at that. This was y2k. Massive outperformance it doubled in less than a year, 99 into 2000. Here you go 20 years ago of the merger almost to the day, and then it collapsed. So this is more of a healthy pace of outperformance that we have seen more recently. I dont know if this makes the compares are its purely not tech, and yet the nasdaq almost all the Nasdaq Market value, to speak of overlaps. Though it is more growth i would say its certainty more growth, and now with apple and microsoft being such massive portions of the nasdaq, they are also both almost 5 each of the s p 500, but youre absolutely right about that its not as if its either or. Mike, thank you. Not partying like its 1999. Not yet up next Morgan Stanley chief economist will tell us whether the weaker than expected jobs report is a warning sign. Later, we will look ahead to next weeks signing offed phase one trade deal with cha. In and when an agreement on phase two may be reached whatever monday has in store and tackle four things at once. So when her car got hit, she didnt worry. She simply filed a claim on her usaa app and said. I got this. Usaa insurance is made the way kate needs it easy. She can even pick her payment plan so its easy on her budget and her life. Usaa. What youre made of, were made for. Usaa this rounds on me. Eat. Hey, can you spot me . Come on in. Find your place today, with silversneakers. Included in most Medicare Advantage plans. Enroll today by calling the number on your screen or visit getsilversneakers. Com 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. Heres a look at the closing bell big board all three averages finishing the day lower. Boeing, travelers, dow, united technologies, jpmorgan and chevron were the worst performers in todays session. Time for a cnbc news update. Hi, sue. Hello, everybody. House members remain sharply divided about the process while they wait po Speaker Pelosi to take the next steps in the impeachment of President Trump pelosi is saying she will send the articles of impeachment to the senate next week. I think her strategy is 100 correct. Put the pressure on the senate to have a fair trial shine a light on the fact that senator mcconnell is not being it is not the job of the senate to try to fix the completely faulty and flawed process that the House Democrats conducted over here. And in sports news, red sox and outfielder mookie betts have reached a record deal. Betts agreeing to a oneyear 27 million deal with the club to avoid arbitration. Big money in that sport. Thats the news update this hour morgan, back to you. I have a feeling mike santoli will watch that one closely. I think he will. This basically prevented a massive red sox fan revolt sue, have a great weekend. You too, guys. U. S. Job growth, does th it signal a decline . Welcome. My pleasure tore here. To get to get your shots on the jobs report today. And yesterday i realize it was expected, but hirlg continues. And the number is not so bad. If youlook at the fact that th growth is now supposed to be slowing down we think its consistent with the gdp growth which we expect over the next 12 months. Its not really bad. Inch it still remains a big important point. Do want to have that investment growth come back into if you look at the investment, we want that number to come back into positive territory, to support the growth, which is going to happen this quarter, probably in the coming quarters, too, so we indeed need that support to sustain that number of ahn 1. 8, 1. 9 gdp growth when you look at developed economies, clearly the u. S. Has more flexibility left it neededd but they have perhaps more flexibility how do you think about the likely impact of either of those two, and what that means for relative growth rate so as i mentioned were expecting u. S. Growth to land around 1. 9, 1. 9. And three reasons. One, you mentioned there would be a divergent in the policy we think u. S. Will be relatively flood, and at the same time, the other thing that is changing are the trade tensions are aging youre going to see a pickup in Global Manufacturing in a meaningful manner. While the u. S. Will benefit coming back, u. S. Straight to gdp is much lower than the other parts of the world thats a different factor. And the third one is the u. S. Is actually pretty much in late cycle. You mentioned there were a more early psych the wield afternoonly these many manufacturing cycle globally there are two things were watching or if you sigh latecycle dynamics emerging to inflation picks up and come back out to say we are going to probably hype earlier, those are what can pull back the cycle. By manufacturing trade, given this global picture, how much of the attention is on china . China is that one important part, but its all the rest of the world, and emerging markets, exchina is also a contributor, so its confide broadbased with emerging markets. Are there any relatively significantly sized economies out there that you are concerned about . At this point in time, no, i in the not from an economic standpoint i think that will come from the factor that i mentioned. Either geopolitics or trade tensions. Thank you very much for joining us today. My pleasure to be here. Still ahead, barry diller predicting yesterday on closing bell that the quality of tv programs has peaked. We will discuss the impact that could have. And from curing hangovers to losing weight. Injectable vitamins have been a growing trend. We have a closer look when we return turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. One of the newest trends is vitamins via iv drip we have that story for us. Hi, wilf. You say vittaminus, i say vitamins so here at nutridrip, the treatments cost to from 1 to as much as 600 a pop we know equinox offers it now at the Hudson Yards Hotel and theyre planning to slowly roll it out at some gyms there are critics for these that said nutridrip tells you its working, because the clients key coming back. Thats why we continue to grow, the proof is kind of in the puddle we know that theyre as early as q2 in 2020. Is the main reason to do it is because it gets into the system quicker, or there are some things that have to be taken in this way that you couldnt take orally i think thats how its the doctor telling me the best way to treat any vitamin deficiency these services are more aimed at antiaging, boosting weight loss, so there are some purposes this is becoming more of a beauty and wellness trend. Those that i spoke though, they say it works and can feel the difference almost immediately. Rahel, i was going to ask ask you what the clients have said it seems like a commitment youre gut going to put a needle in your arm, sit for a period of time, and wait. And some of the services are advertised as long as four hours. So its a time commitment, a financial commitment one of the customers i spoke with earlier, he tells me hes been doing this for eight years, which predates even this company. He said initially he was hanging out, have having a great time and he needed something to pick it up. Now he works in a hospital and sometimes wants to help boost his immune system. He told me he comes every few weeks, so this is a very regular part of his health and wellness motto, sort of what he does. He got an immunity booster, he said he had already been feeling good, but when he left he felt more hydrated. So the commitment, the people who use it well, they think its worth it wow, fascinating. Rahel, thanks so much. By banks on deck a rundown of what to watch ahead. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. As of 12pm today, i am debt free welcome back to closing bell. Lets send it over to mike santoli for the final dashboard of the day. Were going to focus on some payday pressure. We look at different angles of the monthly job report, talking about hourly wages, this is average weekly earnings. Along with the average workweek, number of hours worked what you see is obviously its above 2 1 2 . It seems like its moving in the right direction. Its one think to keep an eye on the force, it could also be somewhat some manufacturing workweeks curtailed, so that also could come back its one of the longerterm dynamics that doesnt move very fast and were figuring out exactly how tight the market is into meantime we have another news alert on boeing. Phil lebeau this is an 8k filing, having to do with the compensation for the incoming ceo and the previous ceo Dennis Mullenburg, no severance, no incentive bonus he also forfeits roughly 93,000 in stock units, which obviously vest at Different Levels we wont go into all the details. Most of that was preexisting he will receive an annual salary of 1. 4 million, a longterm incentive, and restricted up to 10 million. So theres the executive compensation for dave calhoun and what Dennis Mullenburg got, which is no severance. Guys, back to you. You get this filing today, all of those messages between employees that were released as well, is this happening because dave calhoun is taking the helm on monday, so its almost like a flush. Yeah, thats exactly what this is. This started right before christmas when they made the transition, a big part of his move is lets get this all out there. Get this all out there, to focus on the task at hand. When will the bbbule burst well discuss which closing bell returns. Legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. With unrivaled pricing, real time tracking ship skis delivers, hassle free. Ship ahead and go catch those first tracks on fresh snow. Ship skis. Your skis. Delivered. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. The annual Jp Morgan Health care conference kicks off monday. Meg tyrrell here is with a look at how important it is to the industry and investors mega. Thats right, wilf important oh more than just investors. Its the biggest hinvesting event of the year where thousands of investors convene to network make deals and look to raise money well we talked with one attendee there owner a personal Mission Twins maxwell and riley freed came into the world together. Did you have a good sleep. As they grew parents amber and mark notice add difference maxwell wasnt developing the same way as his sister after six months of genetic testing he was diagnosed with a rare disease. It was known by the genetic location slc 6 a 1. And i just remember thinking that that wasnt the name of a disease. It was the name of a flight number its a rare neurological condition that can cause severe movement and speech disorders and intellectual disability. Between ages 3 and 4 maxwell is expected to develop a did he with bill tating formof epilepsy. It was in that moment tfs there was no future for my most prize the possession in the world, that i was not going to accept that answer for little maxwell. And i decided to fight like a mother freed started calling researchers became expert in the biology of the decease are disease founded a nonprofit and ten months raised 1 million working a team at the university of texas southwestern to advance aen gene replace president therapy hoping to help maxwell and oerps she says its ready to start clinical trials. But she needs more funding and connections in the drug industry she is joining the thousands of Health Industry investors and executives flying to San Francisco for the Jp Morgan Health care conference what these companies are doing will help the greater good they are creating miracles for my family, for my little maxwell freed and so many generations to come. And guys with was medicining get more personalized parents like amber are navigating the world of Drug Development to help kids. There is no place ever with a denser concentration of the people funding Drug Development than the conference. Its certainly in the next place next week. Meg, this particular disability, again etic condition that maxwell has, was it already on the executives radar or is the work she has done raised the profile of it and given it a greater hope than it had before the find the solution. Amber really raised the protective profile of the disease. She said it didnt have a real nim just named by the again etic location she is putting it on the radar screens. She did identify scientists working in the space or similar. She said she sent uber eats snacks and found one at a conference he turned to her and said hi, amber she is tireless and so many parents are twieg tro develop the drugs. And the drug industry could be interested in this thing and they are doing gene therapy in spades appear hopes to get their attention. Fighting like a mother. We talk about the financial and Business Impact of the sector but its important to realize its something that changes human lives on a daily basis thank you for remining us. Thank you, morgan. Meg tier. Dont miss a huge lineup much big guests from the summit including ceo of eli lilly plus the lumina ceo here on closing bell on monday. On tuesday well hear from ceo of cigna pfizer and more the novartis ceo up here at 3 00 p. M a look at what else is coming up next we can. A lack at the rundown of the thb things every investor needs to watch straight ahead what do advisors look for in an etf . I tell clients, etfs can follow an index, but which ones target your goals . Its not about quantity. Its about quality. No trendy stuff. I want etfs backed by research. Is it built for the longterm . My reputation depends on it. Flexshares etfs are designed and managed around investor objectives. So you can advise with confidence. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Its almost like a mywchallenge everyday to seeey. How well i can eat and still enjoy myself all day long. I wake up every morning to see how much weight ive lost and how much better i look. Myww join today with the ww triple play i can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. If youre starting to feel like there is more tv shows to watch than ever, there is data to back that up. The number of original scripted shows cross the fiefd for the first time in history. In 2019 according to data from fx representing a 7 increase over 2018 and culmination a zeep leakedlong claim barry diller joined closing bell yesterday and said tv hit a peak but not for the reasons we usually discuss. There is so much pressure on what is relatively small Creativity Community that the pressure on that and just the just the drain of pushing it to the extent its been pushed is going to reduce quality. We have had kind of a peak of people saying at different times golden ages of television. We have had a peak of that i think its going down from here. Those are great interview julia did with diller yesterday. When he said that it hit a spot. I couldnt agree more we peaked two or three years ago in terms of quality just by the gist of what you watching. Peaked in terms of average kwult. Doesnt it suggest there is a tier most of us dont have time to get through that maintains its quality, right its not as if the good folks are gg away. It speaks increasingly how the use of data and being able to target all the different types of offerings as there is more of them to the right audiencen on places like netflix becomes. I dont know, i think that if the all the new streaming services didnt have to fill a whole library sihak they could focus like hbo used to do make ten good shows as opposed to to 30. Like. Like what i was potentially doing. Half of them not great. I just mean the idea of smaller stable. Anyway, i think fewer better quality would be a more adeal scenario but thats not what we got. We have to switch focus. Big bank starts reporting results on attitudes and Kayla Tausche with a look at the trade deal next jeek. The white house officials holding what they zrib as a cap stone ceremony for the trade deal with china. Senior official says the roughly 200 seat capacity of the east room will be standing room only with republican lawmakers and lawmakers attending. Ceos advising the white house throughout the process will be in the audience as the white house places the feather in the campaign cap watch for democrats and industries who didnt get the tariff really to wellway weigh in. The a hugely significant moment, whether its more ceremonial than actual in the details, its a big step it certainly is and they are expected to celebrate it on wednesday. Kayla, thanks so much for that the celebration for kayla too after reporting all the finer details of it over the last year or so. We are out of time here. That does it for closing bell. Bell. Fast money begins now. Thanks very much. Live from the Nasdaq Market site over looking just the absolutely spotless people free times square this is fast money. Im Brian Sullivan your traders on the devg tim seymour brian kelly, steve grasso and guy adami tonight adele marking a milestone hitting 29,000 we hit 30 k by the ended of the month we make bull and bear case carter says its the perfect time to charge into the financial stock. He will tell you which later a beyond belief week the incredible run this week for fake