S. Welcome to power lunch were glad youre with us. The market marching towards all time records the s p just half percent from an all time high the nasdaq is in the red by about a quarter of a percent the dow is up almost 100 big move in bio gen today. Well have those details thanks. Bio gen from the only mover today. Bob has the run down for us. Mcdonalds was a very rare out right miss unusual for a big company. Most others are doing fine is beating enough right now given the price upset . Look at Procter Gamble sherwinwilliams had a terrific you. United Technology Beat them but the guidance is about the guidance they had for the Third Quarter. Kimberly clark did beat. About the same as what they beat in Third Quarter you see that stock is trading down a little bit there. Mcdonalds is the only out right miss we had there. U. S. Sales growth are a bit slower i talk about these beats and raise guidance is that really enough. Look whats been going on. Take a look at sherwinwilliams. Earnings up 13 . This is one of the big movers. We had modest Earnings Growth. The stock is up 45 right now. Same situation to go through some other names. United technologies, 6 growth thats pretty good for a big company right now. Price up 33 hard to move these companies forward and the price is when you got modest Earnings Growth like this. Same with Procter Gamble price up 33 how do you get it up when you talk a bit more optimistically about the Fourth Quarter kimberly clark, low 4 this is much more typical than the s p. Price up 22 whats a typical stock mcdonalds its only 1 earnings. Thats typical for the s p price up only 14 . When i say typical, look what were getting this year. The s p 500 is mostly flat on the year whats flat, thats what flat looks like were down almost 3 for Third Quarter. 2. 7 for the Fourth Quarter. Its tough moving the market forward, 20 a year when youre flash flood flat on Earnings Growth. Back to you. Wall street worries about a repeat of the Fourth Quarter our next guest is betting on a big rally. Lets bring in head of research. Tom, great to have you with us how big of a rally are you looking for . 3 , 100 points. I think it could be as much as 5 to 10 5 to 10 on the s p 500 yes what brings us there . We have to have a turn in cyclical momentum so pmis have to be tbottoming now. I think we have some clues china has done the yield curve has been telling us this. Thats really critical the second is the fed cant make a policy era we just had discipline pmis in the latest readings and services as well youre already looking for a turn in that yeah. At the start of this year we were advising our clients the pmi would fall to as low as 48 by september because of the downturn in oil and the fed tightening from last year, plus the signal saying well see a tank in the pmis that same yields curve is telling us they should be bottoming out. What would a policy eriy erre would it be not cutting in december what would it look like . I think the policy error last year is if fed wasnt paying enough to market signal. To us a policy error is ignoring the fact that the yield curve in the u. S. Is messed up. The term structure is broken theres no incentive for long Term Investment to take place when the curve is flat as it is. The fed needs to do 25 basis points to kind of bring some normalization to the curve thats assuming the fed has controlled over short term rates. That have a lot of control over the front end its been the long end thats been less predictable and the good news is its been moving up i think we node to bring the front end down i think the Home Builders are the deepest cyclical bet you can make they have done really well this year a piece that we did last year, the six months if you buy the Home Builders on october 20th of every year nine out of the last ten you beat the market. Why october 20th . Its the 22nd were two days late. Its a strange mathematical coincidence. It was a jpmorgan intern that pointed this out to me years ago. It was one of his summer projects in terms of the trade, does it matter the hope buildeme buie been up a lot going into this period right they have been monster, almost 50 for some its the same thing thats happened three times even in the next six months they built on those gain. I think its a sign that it might do even better you say a 3 move in the s p between now and your end, base case what happens in 2020 does that get stocks to a price where they are vulnerable say to a 10 or greater correction in 2020 our thinking is markets have gone nowhere for 20 months we had flat markets hovering its only happened three times since world war ii three of three times it was resolved with massive upside break out in stocks. I think if the s p hits that 3100 its going to be the fourth instance i think it tells us s p 4500 by 2021 what did the intern think ill have to find him on bloomberg. Thank you billi biogen is the stock today. Remember back in march the stock plummeted when they said they were halting the trial for this very same drug it plummeted 25 we have new details here this almost never happens and it couldnt have happened in disease more plagued by setback than alzheimers biogen plans to file for approval next year of its kpe t experimental drugs after a new Analysis Shows the late trial succeeded. Earlier their stopped the drug on analysis that predicted the trials wouldnt work they made decisions to stop the trials in march. Now the company says subsequent data on more patients. More than 2,000 show the drug appear to slow declines associated with alzheimers. That da ta on patients and they had a higher dose in later analysis given how many people have alzheimers disease, almost 6 million americans, it would be major advance and major boom for business is this also big news for the same sort of class of drugs that attack the plaque in the brain which is at the root of alzheimers . Yeah. You see failure after failure there. It almost seemed like finally ready to let go of that. So many of those trials have failed and companies have discounted them. Its unclear if they will try to look back and resuscitate them in the same way. Its not the same situation where they will have more data but it does make you wonder about the science here we thought everybody had gotten it long for so long. Does this provide that idea. Thank you that jump in biogen having a basic impact on the stock standings. They are moved into third place depe behind nick. Coming up, a new antisocial bill in Congress Targeting facebook and other huge social media platforms. Well speak with one of the bills authors disney announcing a deal with verizon showing off the star wars trailer and we jt us heard from the ceo woo well have much more and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Fidelity has zero commissions for online u. S. Equity trades and etfs, plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. A new fwil bill in congressd make it easier for you to leave facebook and other social media platforms, but first lets get details. The technical term is data portability. The ability to take your information and mover it from one platform to another and have those platforms talk to each other. This bill would get at that in three different ways allowing users to trooretrieve r data and give their competitors access to them and three by giving users the ability to work with third parties to manage their privacy and account settings this new rule would apply to platforms with at least 100 million active monthly users in the u. S. That would not just be facebooks core platform but messenger and instagram. Facebook believes one people should move their service from one app to another and looks forward to working with lawmakers on this important principle. Add this to the litany of questions that Mark Zuckerberg will face when he testifies tomorrow including the news that 47 attorneys generals are joining in into the company. Well be following it all for you and bringing you the latest. Back to you. Joinings now from d. C. For a power lunch exclusive is one of the bills sponsors, senator mark warner of my home state, virginia good to have you with us thank you for having me you have two irginians here kelly is from lexington. Beyond facebook and messenger and instagram, what other big platforms would this legislation affect this would affect google. It can affect twitter. The notion here is we have seen enormous concentration in the social media space one of the reasons youre seeing the antitrust actions take place. What ive been working on are a series of bills all bipartisan that would say how we put some guardrails on these companies that have such enormous power. My background was in the Telecom Business i borrowed some concepts from that if you want to move your da ta t a new site, you should be able to do that we are using data portability as our first concept. Even if you got portability, if you cant still talk to your friends that are on facebook then that moving to a new company may not give you the same benefits. Weve brought in the concept of interoperability you can be a gmail customer but still email something on outlook. Portability and interoperability go hand in glove for purposes of this legislation, what constitutes personal data . Whats included, chast excluwhas excluded i know in a description of the bill that if the carrier or the Platform Company does not make money from the data then the provisions dont apply facebook already says they provide this yet trying to get all the information that one they collect about you and easily transport it to gnaw company is extraordinarily difficult. This would make this process transparent, easy to take place and theres this bill, we call it the access bill works hand in flglove as well with another Bipartisan Legislation that says you ought to be able to know what information facebook is collecting about you and a rough idea of how much that information is worth. Two often i think consumers believe that Services Like facebook or google are free. Theres nothing free about them. They collect enormous amounts of information and monotize that through the sale oftizing. Nothing morally wrong. If they choose to move, you ought to be able to make it easy, transparent and this would be one of the tools to try to bring more competition to an otherwise pretty already consolidated marketplace in the last earning season, facebook looked at numbers and investors were pleased to see users didnt defect. There were people leaving the platform because they are concerned about data issues and because they didnt defect, advertisers didnt defect either im woernndering if your thesiss its so hard to leave and if it wasnt then people might leave remember, whats happened since facebook has managed to con kso con ksoidate a series of applications there was a lot of Movement People moved from one facebook platform to another. What were saying is with that kind of massive heft that facebook has got, if youre going to try to introduce a better version, the ability to move your data to a new competitor and make sure you can talk to people, you got to have this data portability and interoperability the last quarter there was a lot of movement but it was people moving into the apps this third concept that says if you want to entrust your data privacy, other data sfrervices, you can use a trusted third party. It might be easier to list the committees youre not a member of than you are this week sort of musings and rumblings are that progress is being made do you criticize the president for taking on china on some of the trade issues hes enumerated for example, failure to accept large amounts of agriculture products, i. P. Theft and so forth . Is your bother with him or do you have one, his tactics as opposed to the mission i think the mission is right. I dont find a lot of places where i agree with donald trump but saying to china, you cannot continue to steal intellectual property, you cant restrain American Companies in way we dont restrain kmchinese companies. When you have this unlevel Playing Field getting unfair advantages i think his execution on this plan has been awful. The remarkable thing is clie th china is using these tactics against japanese company, European Companies where the missed opportunity would be to have rallied the world and go to china and say youre a great nation and youre one of the leading economic powers in the 21st century but you got to play by the same set of rules instead one of first things trump did was not take on china but declared canada a National Security risk under section 232. Thats bad execution on the plan what worries me is that i think the trump administration, mr. Trump himself, i dont think all the folks in his administration have this problem. Trump is rightfully pointed out on huwei the National Security threat that poses. This is not only a threat to america but all western based nations. Im fearful that while trump has taken the right approach on huwei and trying to prohibit us buying those 5g networks that he may trade that away from additional soybeans sells. That scares me because for the last couple of years the american intelligence which you know the community and state department have been making the case that if that gets traded away then were in a heap of trouble. You have been a supporter and cosponsor of the legislation that would try to protect hong kong or revoke its special status if its no longer granted that what should u. S. Companies doing business in china do we just had the ceo of disney on last hour and he said cultural protectness is important if he wants to operate in china. Should u. S. Companies not operate in china because they want to be able to help hong kong, for example . What is business supposed to do on the issue of china . I think American Companies and for that matter western companies for years have been willing to sacrifice their values, their principles to get access to the Chinese Market i think thats starting to come back and bite them sometimes they have turned blind eye to we have seen in terms of recent years turning a blind eye to the Chinese Government treatment of a million and a half muslims we see as companies try to turn away from the rightful democratic expression of folks views in hong kong im not antichinese by any means. I support the people bho dont want the communist party over them i think it will be a bit of a reckoning. We have seen the Chinese Government is willing to use any of the tools in its tool kit to force american and western companies into compliance with kind of so called chinese standards. I think we need a thought out series china will not go away as an economic power i would go back to my first case this is case where not only American Companies but western companies that operate under rule of law need to come together and say they will not abide by chinese correctness or china misplaying all to rules. Thats going to take some work i think the problem will only get worse until we take it on. Thank you very much as always we appreciate your time. Thank thank you and go virginia shares of boeing bouncing back today but have they hit a bottom traders will answer that question we think you would really shine in the aflac program. Aflac coach saban we have Health Insurance. Did Health Insurance pay for everything . No, we still have bills. Aflac gives you money directly to help with those. Aflac and your deductibles, knee brace, whatever you choose. Aflac sounds like a winner. Umhum. Umhum. We try. Get help with expenses Health Insurance doesnt cover. Get to know us at. Duck aflac dot com welcome back the power lunch. Boeing getting some relief after a 10 decline in the past two days the stock higher even after s p global credits outlook on the debt as it grappled from the fall out of the 737 max crisis i guess the question right now is this just a bounce or a potential bottom for boeing . I think its probably just a bounce its not surprising me it is bouncing today you look at the side chart it was getting quite over sold on a short term basis and at the same time testing the bottom end of symmetrical triangle. They take a few chips off the table. However, with all these uncertainties, it wouldnt surprise me if it rolls back over if it breaks below that pattern, it could be down to the 300 level which will was a december low. That would be a great place. Then a kind of wash out move id want to old off between buying in any significant way. Grant without knowing for sure if the stock will get down there, is it looking like it offers any value yet yeah, it sure does look that way. I think thats what investors have to be very careful of its a wolf in sheeps clothing. You have the 737 issues that are still looming. You have to remember this is a huge china trade risk. Everything is kumbaya but that could change with a tweet or a headline if investors are holding it long term, i think they can use some puts to give themselves some insurance here all right still some caution and pressure. Thank you very much. Head to our website for more trading nation or follow us on twitter. Back over to you ahead,less cuee. Softbank planning the take control of wework. A far cry from earlier this year we will bring you the latest details plus fast food fail. Micky ds is down. The San Francisco 49ers will offer an all you can eat promotion with season tickets. The Team President will join us live all this when power lun