Investors, whether u. S. Stocks are really still the place to be and lets waek in jeremy with us once again live from philadelphia. Professor, welcome back. Good afternoon, scott. Professor schiller at the beginning of the week saying stocks could go up another 50 from here. What do you say . I said are you bullish . It could go up 50 . It could go down 50 . The word could does not really mean that thats what he expects. But you know, the momentum is there. The earnings momentum is is there. I think actually its very, the dollar being down is very positive. Especially for the s p 500. Thats why you see the strength in those stocks. Yields, two and a quarter for the ten year. Can you do any better than that . No competition. And we talk about overheating, we talk b about the tech sector. The, i just looked up the pe ratio of the tech sector. On estimated 2017 earnings. Of the s p 500. Its still under 20. 19. 3. We have amazon, netflix, we have a few of those that are really you know, in over 1100, but look at apple. Apples still under 20. The most value babable equity i world. In 1999, the tech sector of the s p 500 had a pe ratio of 90. So, you know, are we in danger of overheating, theres always that danger, but are we in a danger zone yet . I dont think so. You know, professor, i could throw out and you really are focusing on something that i want ed to talk about and that is the narrowness of part of this move. And our good friends sending around a note today pointing out that five stocks are accounting for nearly half of the s p 500s gains. Apple, facebook, amazon, microsoft and google. S p on the year is up 8 . If you take those five stocks out, the s p is up only 4. 5 . Are we too top heavy . Well, you know, i was told by someone else that isnt that unusual. There have been other times when you know, you take out some of the biggest techs that do, not just techs, any stocks that do well. You get a very different picture. They say if you take out like the ten or 15 best performances daily on the stock market, that overall returns go down 2 and 3 , so you could always pick those big winners. That being said, there are a lot of momentum players. In this market. You know, ive been in ak deem area for almost 50 years now. We used to talk b about fakctor, small stocks, value stocks. Momentum is surging as a fok tor. Theres a lot of players out there. They go with the trend. They have their stocks under those trends. If it falls off, theyre off and i do think some stocks are perhaps subject to these momentum players that are riding the train and ready to jump off if theres any sign of trouble. So, yeah, there is some momentum in there. But usually, overall, i dont think the stock market has the overwrought momentum we saw before. I still hear people, even somebody today on this Network Earlier in the day saying this rally is not based on fund m fundamentals. This is still the sugar high. Of Central Banks take a look at what yields around the world with doing, that is evidence of that. Then youve got elliot managements paul singer with a note of a real dire warning down the road about what stocks could do. I want to read you his quote and get you to react. We think its a good time to build a significant amount of dry powder. We think the low amount of volatility will exist until the disenchanting moment when it does not, then all hell will break loose. What do you think of that . Well, you know, the implication obviously is this is going to end badly. I mean, the s p reached 30 times earnings in 1999, were in a much lower Interest Rate volume. Created by the Central Banks. I think the low Interest Rates are due t at a fundamental factors in this economy. Low productivity growth. Low gd p p. A lot of risk aversion. Still out there from the crash of 09. An older investor class that is naturally risk diverse. Regulatory demands for liquidity. All those things are if it was only the central bank, it would be the tenyear. It would be at 5, 6 if it thought there was artificial stimulation from the central bank on short side. Those bond vigilantes out there say guys, this low Interest Rate environment is going to be in place for many years to come. Its not just a central bank phenomenon. You told us the dow was going to go to 20,000 and a lot of people said hes way out over his skees, hes going to tumble down the mountain. Now that we are where we are, where is the dow going to go from here . How high do you think the dow is is going to go . Short run, its unpredictable. Given this Interest Rate environment and even the perspective tightening and you know, a negative tapering i guess you would say, release some securities, i think stocks are very fairly valued. I think theyre valued for a gain of around 7 . 2. 5 in the long bond. Thereats a long margin. Back in 2000, you were getting Something Like 6, 7 on treasuries. That was crazy. This is not crazy. Not saying it for every stock, but overall in the market given the Interest Rate environment, and perspective Interest Rate environme environment, i think stocks are still the place to be for investors. Its josh brown. So, when you think about, talking about schiller, which i think you probably more than anyone have done a lot to get into the nuance why its not quite so important or ak as maybe it could have been because of accounting changes or anything like that. But just broadly speaking, lets accept that it is a decent way to think about the next ten years returns. So you have a u. S. Cape ratio of 30 times. Look around the world, substantially lower. Smart investors are allocating outside of the u. S. At least a portion of their portfolio. Foolish investors think it goes up, its the only game in town and theyre all in. So, when you think in terms of that, is there an argument to be made that the 0 t 9 losses, they roll off in like 18 months. What is the new cape ratio like . Much lower. Is that in favor of keeping allocation to stocks even if you accept that simple ratio has some Predictive Power . I think youre right on. For overweighting europe and especially merging market frs quite a while. Europe was 13 pe for a long time until this recent rise. I guess its up to around 15 times this years earnings. 16, maybe. Were 20. Emerging market is still about 15. Sill under the u. S. You could buy euro for i think the biggest argument now for u. S. Stocks to stay there is the dollar going down. This is going to help the s p 500, the multinationals. The euro is worth more in translation into dollars, so theyre going to get double pumped. 40 to 45 of the profits of s p 500 come from aboard. Were getting to a more even allocation than we were a year ago. Right now, about half the worlds equity valuation, you know, i would maybe put 40 , 45. So jeremy, the average investor, vanguard says the average investor portfolio is 80 u. S. Stocks in the equities side of those portfolios, so if you assume half of the other 20 is europe, people are substantially underweight the best performing market they could be in this year. And even though flows have now gone positive into europe, its like six or seven years of net flows being negative. Might serve as the catalyst. People just feel uncomfortable investing aboard and by the way, that thats true around the world. So, europeans you know, theyre invested in u. S. Stocks. Its been around for a long time, part is psychological. It doesnt and part of it is just, but youre right. U. S. Citizens are underinvested abroad. You made a few references, its curious to me, because i go back there, bernstein had some very hard times, now, at the same time, 2000, the s p 500 went down and investors had great returns. I look at todays environment, weve had ten years, also 1,000. 14 . T the russell 1,000 was up 3 . P if this market breaks, will they look and say wait a second, maybe i should look at a stock trading at 12 times earnings. That was my point so many momentum players. If a stock is on a trend, make the trend youre friend. Theyre jumping on. They have stocks underneath and they will go to those value stocks. One also has to remember, tech has done extraordinary this year, but over ten years, what really one of the factors that really heard the value stocks was financials were mostly in the value stocks just before the financial crisis. And the energy, so those two factors have really been i think more than 100 of why value has underperformed. Energy, we can argue what the price of oil is going to be, but financials are still selling at what, 13, 14 times earnings. In this environment. So, i agree with you. I think when it breaks, if the trend breaks, you will see a Movement Towards value and away fr growth. Professor, thanks so much for being here today. Enjoy the long weekend. Doc, just play it the way you think about where the markets going to go . It can does. If were overheat, theres steam out there. Things are boiling, theres steam. In 99, 2000, tenyear was 6. 6. Were at 2. 55 for the tenyear mortgages rates are four. I dont see that same sort of steam or overheat ng this market. I think we can keep making these. 4 of a percent, thats the seven vix. Just keep kroul to the upide. It doesnt give you pause though that these five massive stocks are accounting for such a large portion of f the s p 500 . Its always like that. Looking at returns since 1994, top wreten are roughly part of return. If you want to pull these out, you want to say that were leading the market. Cant you dont know absent tech. What if crude oil were 80 right now. Do you think google would be outperforming the exploration stocks. Youre going to have a bull market, stocks that come to the emblematic of the era. Sometimes, tech, sometimes, its not. It could just asly be a health care market. Why isnt celgene and amgen leading the market . This is a forever thing. This is how bull markets manifest. They revolve around big winning, large cap blue chip stocks. Thats true, but we have to talk about its not always the same five stocks. You know this and i know that. So the question is, when do you get off the train of the bellwethers running this thing higher. Its faang and other stocks, nvidia, great call on your part. But youve got to look and say, okay, when this breaks and t going to be technical, something youre seeing in the charts, josh. T not going to be valuation that knocks amazon off the pedestal we know that. Just reached a technical level that was resistance of 2400 on the s p and north america people feeling more bullish now. If you look at let me finish this quickly. You have to be aware that at some point, it will break and if amazon is down, you know, two, three, four days in a row, all of a sudden, people are going to get queasy. What is your sell signal on one of these bell weather stocks and if you sell, where are you going to put your money . It could be cash. I dont think thats the case and i was alluding to this with professor siegel. Thats when people are going to look at hey, valuation matters. So, heres the thing. There could be a big gap between when those attractively priced value stocks start to help you. After a complete market pique and you cited value coming back into favor, post the dot com meltdown. Not for a little while though. In fact, the only benefit to being in the value socks during the dot com meltdown was not that they made you money, they lost you less then started to turn. Youre right about being patient. Thats not the example you want to use. Just because value stocks did go up in a year 2000 that the s p 500 was down 9 , but regardless how did they do in 01, o 2. Theres a gap. What i just said was when you make, when you see that break, which is going to come. Weve been doing this for decades. Here valuations are in high dividend high cash paying stocks. The ciscos of the world. Theres a third option. Its you get a stagnant market p for a few years and we just had it. You had a stagnant market. It wasnt a crash. We had some corrections that were bigger than 5 dips. They resolved relatively quickly. Nobody really panicked about the individual events that caused the slowdown like the oil crash et cetera, but you dont have to be going up or down. You can be consolidating. We had a consolidation period, then another 50 return in tech for example. And dividends will matter in that period. They will. 3 to 4 dividend yield in a 2 tenyear environment is pretty good. We are going to leave it there. However, were going to continue that conversation on the market. This coming tuesday with investing legend, leon cooper ma cooperman, his first interview since his settlement with the sec. Halftime report just getting started. Next up, a big downgrade for an oil giant. See why the analyst behind our call of the day says get away from chevron as soon as possible. Plus, with google and amazon near 1,000 bucks a share, were look at another tech titan hitting a major milestone today. Microsoft. The traders are back in two minutes. Theres nothing traditional about my Small Business so when it comes to technology, i need someone that understands my unique needs. My dell Small Business advisor has gotten to know our business so well that is feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. Hey ron theyre finally taking down that schwab billboard. Oh, not so fast, carl. Oh no. Schwab, again . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. Schwab has lowered the cost of investing again. Introducing the lowest cost index funds in the industry with no minimums. I bet theyre calling about the schwab news. Schwab. A modern approach to wealth management. Chevron shares down 10 this year. Now, one firm is calling for more downside. A 100 price target. Our call of the day. It is the only sell rating on this stock according to fact set. You got 16 buys, 13 hold, now, one sell. Doc. I wouldnt go to sell on it. I think there are better stocks that are going to move faster than some 200 billion monster like chevron. A lot of the stocks petes talk add b about. Neighbors or natural gas. Theres nrng plays that i would rather be in, but i wouldnt be as cautious on chevron as this analyst is. Which names woulder be in . Neighbors yesterday, i talked about that one. Ive got one now for unusual activity in about 20 minutes ill mention. Thats seeing fast money flows. Thats a tease. Yeah. Those are the types that id be in. This is a battleship. Its perfectly correlated since the beginning of the year. That tells me if a play on oil, i know theyve got big projects out there. Borg nn australia, and these things will matter, but wont overweigh its time to oil. I think oil is stuck in a trading range here. Every time it goes higher, you see the recount up higher and knock the price back down. I dont see us breaking out of that. I think like this gets to the heart of our are you a trader or investor. If youre an investor, and own xle, which chevron is a big component of. This is the type of sector where d the hold and own it. Here, you have the stock thats below a flat 200 day. You have a yield of you know call it 3 or 4 . If yu nood to be long, put a stop there. Were in the Market Making new all time highs. Why are we looking at losers. Focus on the stocks going hire. Taking it to 100. Jon is tracking unusual and bullish ak tifttivity in a chip stock. Hell take us through that coming up. Plus, deere, mcdonalds, boeing, microsoft and cognizant. Thats coming up in the blitz. Thats next on the Halftime Report. I joined the army in july of 98. I did active duty 11 years. And two in the reserves. Our 18 year old was in an accident. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. It actually helped to know that somebody else cared and wanted make sure that i was okay. That was really great. Were the rivera family, and we will be with usaa for life. Usaa. We know what it means to serve. Call today to talk about your insurance needs. Deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced, our senses awake, our hearts racing as one. I know this is sudden, but they say if you love something. Set it free. See you around, giulia im dr. Kelsey mcneely and some day you might be calling me an energy farmer. Energy lives here. We sent jon tracks the Options Market to the telestrator. You got a couple for us today. Whats first . Friday two for. First one, chip stock, take a look at the nice rise weve seen out of micron. They were buying the june 31 calls. Very aggressively today. Stocks over 29. As you can see, average volume the pretty small. I got right in there with them. Probably be in this for two to three weeks. Then an energy name. Because you were talking energy. Range resources, again, 1. 5 move on a small move out of the energy complex, but they were in here buying the a call spread, the 24s. Which is right tat the money. The 24 strike call, they were selling the theyre looking for a quick bounce and could turn a small investment into about four times their money in the next several weeks if we see more climb out of range resources. Im in that one as well. I was going to ask you if youre along for the ride. All right. Doc, back over here. Over to sue. I do. Thank you very much. Heres whats happening at the hour, everyone. Bmw is recalling more than 45,000 older cars because the doors can open unexpectedly. Covers certain 7 series vehicles from 2005 through 2008. Excuse me. It is still working to find a cause and develop a fix for that. A federal marshall says a a man opened the gallys service door of an American Airlines flight and jumped on to the tarmac at Charlotte International airport. When a Flight Attendant and two passengers tried to stop him, he bit the attendant. He was arrested. A michigan sports doctor accused of sexually assaulting female gymnasts was in court this morning. He is accused of molesting girls at his clinic while we horked for Michigan State university. And Melania Trump and four other first ladies toured a bit of sicily. They took a helicopter ride to see mt. Aetna and aetna is also europes tallest and most active volcano. The it has been very ak thif year. Thats the news update this hour, now to brian with whats coming up on power lunch. Hi, brian. Thank you very much. Coming up at the top of the hour, it is a friday face off on power lunch. Weve got amazon versus google, nike versus adidas and mcdonalds versus shake shack. Mark zuckerberg making the case for universal basic income. Is it a good idea . Well debate. And flight delays and long layovers. What would you pay for a little peace and privacy. The Halftime Report is back. Power lunch with jons tie on is coming up at the top of the hour. So you miss the big city . I dont miss much. Definitely not the traffic. Excuse me, doctor. The genomic data came in. Thank you. You can do that kind of analysis . Yeah, watson. I can quickly analyze millions of clinical and scientific reports to help you tailor Treatment Options for the patients genomic profile. You can do that . Even way out here . Yes. Even way out here. Even way out here . Its not just a car, its your daily treat. Even way out here . Go ahead, spoil yourself. The es and es hybrid. Experience amazing. Zblncht were ging to stick with the theme of new highs. Doc, you get the first one. Microsoft. What are they going thats not just perfect . When they went to the cloud and its going to be 15 billion they said on the Conference Call this year, 2017, 15 billion. The distribution of all of their software via the cloud, the rental, if you will. Thats a fabulous way to go for microsoft. Such as killing it over there. Id stay in this one. Jimmy, you didnt say in boeing. Right . You sold it in march. Its a new all time high today. I sold it at 182. So 187 and im a little miffed, but it was a great trade while i was in it. Im not mocking you. Let me continue its a fabulous company. At this price, its too high. It may go higher, momentum may carry it higher, but 18 times is not pricing in the risks. Emirates canceled its triple 7s and the 737 doesnt sell as easily as possible or airbus comes back and starts to compete with them. Im waiting. I think you get this back in, 170, 165 range, im back in. What about mcdonalds, josh brown. Yes, memo to knee jerk contrarians who think new all time highs are a signal to fade or sell. Momentum is one of the most reliable factors in all of financial theory and practice and they have made 30, 30 new closing highs all time highs so far in 2017. Stock up 23 on the year. So, sure, its cute to go on twitter and say its up, im fading it. Probably losing money every day youre doing that. John, another one. Cognizant technology. Dont talk b about it often, but its at the highest levels since november of 2015. How do these segments sound . Financial services, health care, lodgistic, info media. Thats all the areas that these guys have tentacles into. Theyre killing it with Insurance Companies and the fen tech space. I think this is one to stay with, not to jump off of. Ulta beauty. I find this fascinating. This is a stock that we should all own. Whether its swrus demographic, price momentum. It has a break earlier this weak and i thought this was going to be the opportunity, snaps right back. Heres whats going on. Young people are, just gaga over make up and i didnt understand what it was until somebody told me. Until you sat in the make up chair in the back, then you got it . That alone should push the price heyer for the amount f make up that i need. With the selfies, snap chats, instagram, people want to look good all the time and thats why Beauty Products are soar iing. T not just ulta, the its sephora. If you own it, continue to hold it. If the price baek breaks, get in. They got that omni channel retailing. Theyre selling product on a new platform. Its true. They are unique amongst apparel, make up, jewelry sellers who are utilizing every channel, tieing them together really well. This one will probably be a case study one day for how to compete with amazon. Got to situate the cheap clothes a little bit more. Trying to lose some weight. Cross fit. All right, finally, deere is at an all time high. Josh, you own it. This is the 23rd new all time high in a day so far in 2017. Similar to what i just said about mcdonalds, the stock is now up 19 for 2017 and its a company that has not had any momentum in earnings revenue, any of those metrics, up until now. The hard part about the markets is the stock markets sniffed that out six to nine months ago, so now, its here. Just ahead, your earnings game plan for next week with more retail on tap. Theyll take care of positions on lulu, Dollar General, michael kors and more. We recently had a heart attack. But we are not victims. We are survivors. We are survivors. We are survivors. And now we take brilinta. For people whove been hospitalized for a heart attack. We take brilinta with a baby aspirin. No more than one hundred milligrams. As it affects how well brilinta works. Brilinta helps keep platelets from sticking together and forming a clot. In a Clinical Study brilinta worked better than plavix®. Brilinta reduced the chance of another heart attack. Or dying from one. Dont stop taking brilinta without talking to your doctor,. Since stopping it too soon increases your risk of clots in your stent,. Heart attack, stroke, and even death. Brilinta may cause bruising or bleeding more easily,. Or serious, sometimes fatal bleeding. Dont take brilinta if you have bleeding, like stomach ulcers,. A history of bleeding in the brain, or severe liver problems. Slow heart rhythm has been reported. Tell your doctor about bleeding,. New or unexpected shortness of breath, any planned surgery, and all medicines you take. If you recently had a heart attack, ask your doctor about brilinta. My heart is worth brilinta. If you cant afford your medication, astrazeneca. May be able to help. Ready or not, here i come. Ek. anyone can dream. Making it a reality is the hard part. Northrop grumman command and control systems always let you see the complete picture. And were looking for a few dreamers to join us. More big earnings next week. A lot of retail is on the board. Lets take michael kors first. Whos got a take . Buy . This is not my space. This is a stock thats in no mans land technically. Its been under distribution for more time than its been under accumulation for the last year. Every time it rallies on a piece of good news or upgrade, it tends to fall apart quickly. I just dont see any support in this stock. I dont know why somebody would be even looking at Something Like this. When you have so many names that are doing well both share price wise and fundamentally. Sxwl wednesday, palo alto. Well, i forget who it was just week ago upgraded to around 114 a share or Something Like that. I agreed with with it. I think it was one of those stocks in the space that had been really slammed along fire eye and several others. Into earnings, this thing is a disappointment machine. It sure is. I dont have a position yet. Wasnt a good sign for palo alto networks. I buy it after. Id rather pay up. And you might get a chance if somebody bs bad here, and things fall apart, you could get a chance around 100. That would be fantastic. Versus chasing it especially with that upgrade brave as it was into the earnings. Jimmy, Dollar General on thursday. Yeah, well, look, thats one area of retail thats done well. The dollar stores, i think you could see that continue, but within retail, obviously, theres a few more names there and the one that lulu is on thursday as well. Zpl lulu, they had the terrible quarter last time. If they disappoint on this quarter, two quarters in a row, i think youre xwoung going to tee is bottom fall out of this stock. Youve got to show if youre lulu, it was a one time event as they said and people h come back to it. But if not, its going tail off. One other name, scott, five below, this is an ipo. It got a lot of hype. Rallied off the ipo and has since. Maybe Second Quarter since they went public and that can be a troubling time for a high flier. I was going to say workday. So, workday is like in the right sector. But its too young of a company to put a lot of confidence in any one earnings quarter, but in this case, specifically, because they had a really nasty spill last year on an earnst call aware. All they did was set reasonable expectations for the next four quarters and the street demolished the stock. So, now, its making a new high. Breaking above 100 as we speak. Again, it hasnt been alive that long. This is the type of stock where its the right sector. Software is a service. This is what everyone wants. Employment trends bode well for this. Because herbessentially, its l human resourcee as well. This is the type of stock, id rather say i missed it than take the chance going into one binary, good or bad b ooefbt. 28 . Nba finals start next week. Golden state warriors taking on the cavcavaliers, once again, t matchup weve been waiting for. The warriors coowner is here next, more Halftime Report after this quick break. Theres nothing traditional about my Small Business so when it comes to technology, i need someone that understands my unique needs. My dell Small Business advisor has gotten to know our business so well that is feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. A used car, welcome back to the Halftime Report. Third time is a charm for the nb parks finals. Warriors will take on the cavaliers once again. That coming after clevelands victory of the celtics. Were joined by peter guber, the coowner of the warrior, the dodgers, of course ceo of mandalay entertainment. So, given your movie history, you are well versed on the trilogy. Is this going to live up to its billing . Well, let me put it this way. Its story thats worth telling and worth watching. You know, its gone back and forth and this is what its about. Its about combatant, contessa b tants, legacy. Fantasy, about the experience for the and i think obviously the players as well. I think it will be a really interesting contest. I think it will be, you know, a battle of behemoths. I think both teams have great catalysts, great players, legacy and well see what happens. Its not foretold. It will be fun to watch. What do you make of the whole nba playoffs . They seemed mostly an afterthought given the fact your team didnt lose a game and the cavs lost once. You know, its always about climbing up the hill. The season is so long and 82 games and the playoffs and health and injuries, the stories unwind during the whole season so you dont know who will emerge, some dark horse. Suddenly the celtics look like they could emerge and san antonio is always there. You never know. The reality is the fans want to see the best play at the end of the season, and hopefully theyll be enthralled by the experience. I think that the nba is great. Its a global audience. Its expanding all over the world. Its a sports thats embraced mostly all over the world. And travels well. Hopefully there will be a world audience for this. I speak to my friends in asia and they tell me theyll be watching live. I want to talk to you obviously about movies and entertainment but while were on sports let me ask you about e sports which are exploding. The owner of the wizards and capitals, jim cramer was talking about this phenomenon and the stocks that have reacted as such. Why the investment that you made, and how popular do you really believe this is going to be . You decide what businesses and enterprises. I look at myself as a connector. Im not the audience. Im not the artist. I get producers and directors and actors to make movies. Audiences embrace them or call them a flop. The same with the sports teams. So here is an audience thats so effervescent, this whole, young audience thats embraced the whole etechnology, the whole egaming and have for the last 12 years and has had a straightup trajectory. Esports and egaming it hasnt plateaued or been when somebody went off to college. Its bigger in college and after college the audience continues to consume it both as players, watchers, observers, both on locationbased entertainment, on pcs, on mobile. You have a device that makes people digitally aware. And so this fits right into the sweet spot. The audience is a fullout participant not just a passenger. The audience has interest in the games. Its able to fill up stadiums in 20 minutes on big contests, big championships, so it has all the earmarks of not just an emergent sport but effervescent sport, and i think thats whats happening. Colleges are giving scholarships. All the venues are excited about having their enterprises showcased in those venues. So i think it has all the tools to really go the distance and become something powerful and, most importantly, or equally importantly, its a global audience. You look korea, china and japan, all over asia and europe youll see that its everywhere and it isnt bound by geography. You dont use a stick or a bat to play, and you can play alone or with a whole group of people, play against the best. It has all the tools to go the distance. Thats whats made everybody excited about it if theyre in sports or entertainment. Let me wrap by asking you about the movie business. You produced the first batman movie. In some respects i feel weve come full circle here. If you had to place your biggest bet today in the movie business, would it be on a superhero or a super actor, a clooney, a pitt, a cruise, theyre going to make top gun 2. Superheroes are all the rage and thats where the studios are putting their money behind . Theres two businesses. Theres this big franchise, you know, glamorous, huge, star driven, ip driven business like wonderwoman and batman and all these films like that and then theres the small independent films at 15 million, 20 million, 25 million that go the festival road. Theres two audiences for sure. The event business the big studios have to have to pay off their overheads is that business you just described, big, effervescent action adventure, huge ip films driven by very, very robust global audience and then the artistic films in the Academy Awards and golden globes. Those businesses will live sidebyside. The Distribution System will change more and more with the netflix, the hulus and the amazons driving those smaller cost films with the stars. The big stars arent super necessary for those 150 million films. Its two businesses for two different audiences both of which are growing globally. Quickly, do you view netflix and amazon as competitors, partners, facilitators . What is the relationship from a person who sits in your seat . I view them as actually aggregators and creators of resources, especially for artists and for audiences so i think its going to grow. I think its going to be very successful, it will continue to be successful. It will divergent the smaller ones as well. I think the audience is consuming more movies globally more often than ever before but in different ways. No longer just at the corners and the downtowns. Theyre all over the world in every form. So i think people want to be entertained. If the movie is no good, stars dont matter. Got you. Peter, thanks for your time. Thanks a lot. Peter guber. Final trades next. Its all yours. Wow record time. At cognizant, were helping todays leading Life Sciences companies go beyond developing prescriptions to offering subscriptions with personalized, realtime advice for lifelong, healthy living. Honey . You almost done . Nope. Get ready, because were helping leading Companies Lead with digital. Will you be ready when the moment turns romantic . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. 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They have a lot of call ak it tift in here, too, judge. Somebody bought 20,000 of the 22,000 of the october 105 calls. So screaming hire. Merger with starwood, a great company. Back around the other way. Jimmy . Oil was in the news this week. Now what were looking for is next weeks inventory. A huge drawdown. I think thats pinning a lot of hope on a very small item. Look, i think youre going to see oil come down because the rig count keeps going up. I want to mention financials. The large cap banks and financial stocks are making another run to try to break above their flat or declining. Berkshire hathaway, schwab, take a look at these charts. If they get loose, all the stocks in the market. Doc . Wpx energy buying in there, the third energy stock today. Have a good weekend. Well see you on the other side. Power starts now. The race to 1,000 is on. Amazon and alphabet a few bucks away from hitting the magic number. Which will take investors even higher from there and who might be the next amazon or google . A lot of questions. Answers ahead. Tough words from the president in europe. He is slamming the german carmakers now threatening to stop their sales, the potential fallout ahead. And Energy Stocks battered this week. The sector down 3 . Dont worry. We are hunting for opportunities for you with some fivestar friday picks