Reese took over, hell be here with us to tell us whats behind the latest boom. Power lunch starts right now welcome to power lunch the dow as you can see is up about 200 points, the s p and nasdaq also higher, check out the small caps up nearly 1 check out the tran supports as well trucking higher. Well have more on that move in a moment. Hello, good day 31 advancing to declining stocks the worse performers are doing well today its trading to the upside banks, semiand industrial stocks all moving forward here. Consumer staples, historic high as well. Weve seen new food stocks like campbells doing well today Health Care Stocks also doing well whats moving the markets right now. The important thing here too big positives. The fed still neutral and the United States strong these are two big things keeping the markets near new highs uneasy truce on trade. Global economy on mix. The numbers have been a little odd recently if you take a look for example, China Services have been above expectations European Services were above expectations u. S. Services still above, still growing but a little below the expectation side that was mixed were getting mixed signals on the economy. Do you feel like yelling at the stock market about all the frustrations up and down every day. A lot of people feel that way. The trade talk outcome is uncertain. Even the principles dont know all the intraday traders are using this to trade around it. Its the most important thing i know a lot of people want to yell at the stock market you hear with intricate traders. Wall street dealing with whiplash as fears of a recession are reignited this week, Steve Liesman joins us with an outlook of 2020 and ho forecasters are giving their erasers a workout forecasters struggle just like investors to figure out the outlook on trade they say prolonging the trade war. Increases down side risk to the economy and limits the potential for an upside surprise some just arent buying. Goldman sachs, we expect it to fade gradually we now expect a phase one agreement to be signed in coming weeks. After the president said there may not be a trade deal until after the 2020 election, we never swung all the way to think of a trade cancelling out. Theyre banking on trade peace. Jpmorgan not banking on it at all. We contacted a half dozen economists after the president s comments most have just about had it. Several inclined to trade. Is there a trend to the growth yeah. How it ebbs and flows during the years . We averaged that up to theres a built of a debate. Is the Fourth Quarter ranked now or the First Quarter the bottom of this slowdown what you see is it goes to 1 1 2 now kind of 1 1 2 on the next quarter and it gradually ticks back up, it only gets to 2 by the end of the Fourth Quarter next year. Where we are now . Exactly Steve Liesman, thank you. Despite the prolonged trade war and the fears of an economic slowdown our next guest says just keep buying stocks. The canadian based Wealth Management and canadian markets firm welcome to new jersey. Thanks for having us today you heard all the walls of worry that the economists have the trade war, slow growth, not only hear but in china as well you see 10 growth for the stock market next year look at what our market strategists are saying, a low Interest Rate environment. Accommodate the fed, an environment where we still see record levels of cash on the sideline predicts that the market overall for the next year, we could be at 33, 43. Not in a Straight Line . For sure. Record high valuations, meeting record high cash on the sidelines, that means people are worried, they still have money to spend what will take this spark higher theres a bunch in the game businesses have to transform were also in the wellness sectors, and health care seconders, those are relatively recession proof. If theres a sector that youre identified with, i guess it would be cannabis . Yes helping these companies, im not making this up this headline just showed up on my iphone. Willie nelson has quit smoking weed good for him. Theres another wall of worry for that this is a volatile sector as we await more regulations, more laws, the house just passed their version of the bill that would make cannabis legal here in the United States where do you see this group going longer term. Certainly investors have suffered of late in that sector. Whats happening markets are determining who the winners are going to be and who the losers are going to be the losers are generally the well capitalized k347s this is 20 billion in revenue this year. At the end of the day, people will make money, not everyones going to make money. Were proud of what we did, 100 Companies Public theres a lot of Public Companies out there. That have raised billions of dollars, and now the industry is trying to figure out it out. Theres a lot of good things that happened. Legislation that happen ed theres vaping stuff going on. And tracking down the illegal producers. How do you think juul and the rise of teen vaping has had an effect on the price action docs are treating 30 to 40 off their highs. For sure. On the vaping side, this really hasnt been the legal that is the problem. Its the illegal others are trying to take a traumatic approach and figure things out its really going to depend. Im not kidding, Willie Nelson has quit smoking weed apparently he discovered its not good for you i dont know, whatever thanks for joining us coming up, a dire forecast from realtor. Com for the 2020 housing market, well tell you why a silver tsunami could send home prices plummeting and what was out is in again crocs staging a massive comeback, this time with teenagers. The ceo will join us later to discuss what dvi sessringal right now. Power lunch is black what if numbers tell only half the story . At t. Rowe price, hundreds of our experts go beyond the numbers to examine Investment Opportunities firsthand. Like a biotech firm that engineers a patients own cells to fight cancer. This is strategic investing. Because your investments deserve the full story. T. Rowe price. Invest with confidence. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu a new Housing Forecast raising red flags for a new year sales will fall 1. 8 prices are expected to fall in major markets including chicago, dallas, miami and san francisco. Realtor. Com explained last hour why young home buyers in particular are having trouble entering the housing market. They have all upper end for new products the only existing inventory they can enter is the home sales pipeline theyre basically returning out of product they dont want to move. With us now to discuss, jessica louss. At the National Association of realtors a lack of homes available in the market and higher prices, a bidding war to break out in 2020 the affordability issue is still there. As well as slung for millennials for potential first time home buyers who want to enter the market they may be empty nestors, but they cant find a property, the demand is strong on both sides i guess this isnt a big surprise over the last couple years. Maybe its time for the market to cool a little bit . Yeah, weve seen prices heat up this fall the prediction that prices will fall had more to do with the supply issue if millennials are your major demand factor and they cant find Affordable Homes for themselves, theres nothing to buy. They stay in the rental market or they only buy homes they can afford i would be curious, you talk about this silver tsunami that is more homeowners wanting to down size. They may have other individuals living in that home, but that really comes down to eliminating inventory situation. I want to say the forecast does show that rising home prices in 2020 we predict that home prices will continue to rise because the demand 1 so strong if theres any retreat in that, its at the high end of the market we see for inventory so low and the demand as strong as it is, both for younger buyers and older buyers who may want to move diana, youve been doing stories like this for us on nightly Business Report for so long it would seem that rather than things Getting Better next year, theyre going to get worse this dynamic that exists between younger buyers who were locked out of the market and the younger buyers who are not bulging at this point. Right and we keep turning to the home builders, theres so much demand and so little supply where are the builders well, we are ramping up production, but its still in that move up level or on the high end they are trying to pivot to that entry level home, look at the costs that are involved for land, labor. For compliance for new regulations, thats a big one. Home builders are saying they would love to get into that empty market on that point, at one point will the developers understand that the Market Dynamics are changes and make different, build different types of houses . Diana is absolutely right they face a lot of limitations to put those entry level homes into the market. They are focus on that luxury high end market. They are not attractive for many young families or for people who still want suburban living its difficult to convince them that these types of products, the affordable sirng el family home is something that needs to be built we appreciate both of you joining us theres at least 1 billion in our Hedge Fund Manager who is not to be worried too much about home prices right now. He set a record for the most expensive home ever sold in florida. That sounds like a story robert frank should be doing for us the rich are different. The hence Fund Billionaire just paid 111 million for this estate in palm beach, making it the most expensive home ever sold in florida. Sean feld will use it as a Vacation Home and doesnt plan to move out of new york. The estate is six acres stretching from the ocean to the intercoastal its 70,000 square feet. 11 bedrooms, 22 bathrooms, got a bowling alley, its got an ice cream stand, spa, parlor, pool, tennis court, it was sold by sidel miller, she is a hair care tycoon she listed the estate for 200 million dollars. Theres a house a few doors down that had held the record, it sold for 110. 2 million. The buyer of that property is unknown opinion ken griffin is a little bit north of that he has a property he spent over 200 million assembly to build his dream home and a little north of that is maralago. Pretty good neighborhood in case he has to borrow a kwup of sugar from his neighbors theres no accident this is happening in florida you have been itemizing how many times the high end Real Estate Market like california and new york are suffering because of tax issues thats not the case in florida, is it . Not at all. Whats helped this market is the sense that prices are not going down what sort of stalled the luxury markets in new york and parts of california, is the sense that prices are going to go down further. The wealthy are sitting on the sidelines and waiting. In florida you have stable or even rising prices in palm beach. The buyers figure, its not going to get any better for me thats why you have these two sales back to back in this one part of palm beach for over 100 million in six months. I know there are fewer chinese and russians coming to the u. S. And buying Luxury Real Estate has that hurt prices at all . New york irs are the new russians theyre pleaing soft challenges. Those buyers are basically gone with the exception of some of the latin americans. But the northeastern folks have come in in a big way thats whats turned in the south florida luxury market. Maybe well talk in another month. We probably will. Thank you. Staging a turnaround after a dismal session yesterday how to play it, next and its not just alphabet getting a shakeup e expaid ya as an exodus. Step up, please. Empty your pockets. Looks like youre all set for that business trip. Youve got your smartphone, laptop, your other smartphone. Woman is this all the devices you have . Your tablet. Seriously . Smartwatch, your backup tablet, and. Woman anything else in your bag . Whatever that is. beeping this isnt working. Introducing Samsung Mobile workspace solutions. With the galaxy note10 with dex software, you can run your entire business on the one device that does it all. Samsung business solutions. Welcome back to power lunch. A beaten down corner of the market is staging a comeback today. Dow jones Transportation Impact snapping a fourday losing streak for roughly twice the size of the Broader Market on that day matt, a little bit of a bounce today. But really the transport has been in a range for most of the year if you go back a couple years, they are trading where they are right now. How does the pattern look to you . And where would you look within the group for some opportunities here theres no question this group has been lagging this year were looking at two levels of the transportation index first of all, the 11,000 level and thats the top end of the sideways range you spoke about the thing is, we break out of that, that still wont take us to all time highs. This may be a 223. Theres no question were going to need this group to see new highs like it usually does in an election year. The one stop thats going to help it is Union Pacific this is a key level to watch its bumped up against that level three different times. Each time its come back if it can finally break above that level, its going to be very bullish for the stock for the rail group overall, which has been acting well, in terms would be good for the entire transportation sector im looking at u p very closely right now. Kind of a catalyst michael obviously a lot of issues across currents here. Trade exposure also some struggles for the air frame companies. Airlines should be doing well in a decent domestic economy. How would you look to try to play some of these areas its a timely conversation in the holidays we think theres a die colt my in the space. You have the Airline Companies who are going to further corn sol date, and theyre a beneficiary of a growing economy. And then you have a company like Union Pacific thats done great. I think its a stock sector, if i could use that, and i think it comes down to earnings it comes down to growth in the Holiday Season and sustaining the margins for the first and Second Quarter of next year. We will see if any of these guys can do that we have a few weeks to figure this all out in terms of the holiday stuff. More trading nation, head to our website at trading nation. Ahead on power lunch crocs making a big comeback. Finding new life with teens. Even superstar rappers the ceo joins us next. Larry page stepping down. Whats next for the company. And slack reporting results after the bell tonight well tell you the one thing wall streets watching for when power lunch returns. Welcome back, everyone im sue herera, heres your cnbc news update at this hour brian kemp has chosen kelly laughler to fill a vacancy in the u. S. Senate. This going against President Trumps preferred candidate. I am angered by the impeachment circus, i oppose it, its a distraction and a side show. Just imagine what could be done if democrats could stop fighting President Trump and start working together a train derailed in colorado, it happened this morning. No injuries were reported luckily. The cause of the wreck is under investigation. And former president jimmy carter is feeling better after being hospitalized for a urinary tract infection. Hes looking forward to returning home soon to a South Georgia Medical Center where he was taken over the weekend sue, thank you. Lets get a check on markets right now. S p and nasdaq are also higher all major indexes rebounding from a threeday slide ahead of the december 15th as for todays market movers. Shares of peloton continued to go lower some had misinterpreted the commercial, the company also lowered the price of its digital subscription to 12. 49 a month to 8. 49 sales force trading lower. The Cloud Company expects both its Fourth Quarter and full year revenues to come until below expectations a down grade from bemo to market perform at the current valuation, they no longer found the risk reward. Lets take a look at the oil market bell closing for the day. Theres two factors that will be driving the rebound first. Second comments from iraqs royal minister saying his ministry, deeper opec cuts, the annual meeting kicks off tomorrow it has been the worst performing sector each year in the meantime, speaking of comebacks, crocks staging a huge comeback once left for dead stocks up 400 when currency is the most popular footwear brand among teens. That is crocs highest ever rating crocs clocked more than 1 billion in sales last year, that due in part to the strategy of high profile celebrity merchandise and vsco girls which i know all about can crocs stay on top . For the record you are wearing crocs. I was joking with our staff, but we have a real story here. How can you run Something Else you did two things to turn this company around. We went back to what were good at, right we have some technologies and processes to do that were known for our classic clog and were able to make that clog relevant including with teen girls. Collaboration to deal with a variety of brands and artists. We have the post malone collaboration that will be released next week its all about those things you put in these. Which we will show you, i guess. We have gibbets very popular this Holiday Season very popular. Across the globe, a younger consumer able to turn a generic purchase the teen customer tends to be very fickle, hard to please. Many times theres something they really love how do you make that customer come back. I dont think theyre as fickle as you make out maybe the prime example is a gibbets fan. When they need something, they find a lot of value, they stick with it, if it works, it makes sense. They influence parents, siblings use social media. They influence people. How do you choose the celebrities that youre going to collaborate with someone whos organic, right . Post malone, we saw him wearing our shoes. We reached out to him, he liked the brand, he had a plan and he decided to collaborate this is his shoe, he helped design it. Whats different about this hes telling a story thats important to him, he believes its going to be important to his fans he helps collaborate and design these things as do our other collaborators. That was a camo clog with a bit of a hunting theme wall street clearly likes the story and the relationship you have not only with post malone, but Justin Bieber as well. Your sales are constantly rising 40 of sales do you continue to see expenses rising next year as you try to market to other customers . Over the last four years, weve gone through a deliberate effort to reduce costs as we go forward and were able to grow revenues, we will see sg a leverage. I want to ask you about your partnership with amazon. We saw nike take off their product to amazon. Consumers working so well for that retailer. How do you see your relationship with amazon evolving here. Direct to consumer, whether it be our own website or amazon critically important we believe we want to do both. Our own e Commerce Business is growing significantly but we think amazon is incredibly important vehicle to breach a broad set of customers. Incredible infrastructure. Were better off leveraging that, versus just going in our own direction doing our own thing. What percentage of the trendy crocs if you will like these and the ones the teens are wearing as opposed to i think of crocs, i think of surgeons and everyone who wears them in hospitals. And in industrial settings and things like that whats the breakout in sales there . One way to think about it is the clog the classic clog is 60 of sales thats grown, thats what the team is wearing. Its similar in some cases identical. It gives you tremendous efficiency we have nonslip shoes, that are deliberately for food service and medical applications and thats what you see in im going to bet you say the trendy crocs is where you see the greatest growth. Both. Weve seen both growing because that younger consumer is such an important influence, giving them permission to see the brand. What about china, i saw recently, that is where you want to grow in 2020. Absolutely. Weve spent a lot of time resetting china, the growth will come in 21, not in 20. So it takes time, it takes time to reposition networks, we will see growth in 20 and 21. We have a broadly distributed base vietnam will be our top. Bosnia and other places. Terrorists are not an issue for you . Theyre really not. We put a lot the of effort into producing. We can manufacture and try to sell in other places lets get a check on the bond market right now all the time. Thats for sure, bill. Listen, to think that the day started out with n nonmanufacturing ise one of the weaker numbers going back three years it was hard to imagine we would see the trade issue just completely take over the markets. And it did threeday chart of tens. Its up four basis points. Were steepening, where yesterday was flattening, prices today going down, pushing yields up, thats called a steepener, if we look at a chart starting in october its a precarious looking charge, if youre looking for rates to rise. The dollar index its the fourth down day as it continues to melt. The chinese currency rallied a bit against the dollar, that seems to be what traders look for regarding phase one trade deal phil, back to you. Thanks, rick, see you later investors have been i know i was practicing and got it wrong. Google and alphabet, but did he list accept the worst job in sicon valley well explain more when power well explain more when power lunch continues. Their medicare options. Ere people go to learn about before theyre on medicare. Come on in. Youre turning 65 soon . Yep. And youre retiring at 67 . Thats the plan well, youve come to the right place. Its also a great time to learn about an aarp Medicare Supplement insurance plan, insured by Unitedhealthcare Insurance Company. Heres why. Medicare part b doesnt pay for everything. Only about 80 of your medical costs. This part is up to you. Yeah, everyones a little surprised to learn that one. A Medicare Supplement plan helps pay for some of what medicare doesnt. That could help cut down on those outofyourpocket medical costs. Call Unitedhealthcare Insurance Company today. To request this free, and very helpful, decision guide. And learn about the only Medicare Supplement plans endorsed by aarp. Selected for meeting their high standards of quality and service. This type of plan lets you say yes to any doctor or hospital that accepts medicare patients. There are no networks or referrals to worry about. Do you accept medicare patients . I sure do see . Youre able to stick with him. Like to travel . This kind of plan goes with you anywhere you travel in the country. So go ahead, spend winter somewhere warm. If youre turning 65 soon or over 65 and planning to retire, find out more about the plans that live up to their name. Thumbs up to that remember, the time to prepare is before you go on medicare dont wait. Get started today. Call unitedhealthcare and ask for your free decision guide. Learn more about aarp Medicare Supplement plan options and rates to fit your needs oh, and happy birthday. Or retirement. In advance. Google ceo has a new job hes also ceo of ate if a bet. Deirdre bosa joins us now with the details on the challenges facing the company this job looks a little different than it did a few years ago. Hes essentially already been doing that can he handle the heat, can he juggle all the he joined google in 2004 as a product manager. He oversaw some of the most important units including chrome and android. Aside from testifying before congress, hes relatively untested when it comes to the type of battle that other big ceos like cook and zuckerberg have been fighting he doesnt actually have the control. Page and brynn still do. Other ceos that stepped away from their Companies Like bill gates, does not have majority control. About an hour ago, Elizabeth Warren tweeting, congrats on the move, larry page quick reminder, we expect you to testify before congress. And changing your title staying on the board it will not exempt you from accountability while this clears up an unusual corporate structure, it also comes with a number of complications. You have this structure that they put together, so you know it will be confident enough to change it. And maybe even jettison the moon shot at projects that larry and sergei have had this is why they call it the worst job in Silicon Valley now. Theyre moon shot projects. Also money losing you have to wonder, how are they going to approach these projects when theyve been busy making up the businesses so thats a big question if they want to jettison some of them can they remember . They still control the company they could get rid of it if they wanted to. We were talking earlier this morning, wondering, what kind of a ceo will he be will he be a tim cook . A steve balmer, it remains to be seen how he proceeds to try to carve out his own niche in this company, right yeah, its a great question, thats what everyones trying to figure out right now we did see him testify he was appropriately evasive as youve seen zuckerberg or some of the other facebook ceos, we know hes mild mannered, but hes not a founder, remember . He didnt found this company, how is he going to approach innovation perhaps its not the question of what does alphabet look like, what does it look like 10 years from now, if hes not putting the same innovation, we dont know that, so yet exactly thanks. We start with another shop. Xpediaceo and cfo are both stepping down from their royals at the company according to chairman barry dillard. They led to both departures, shares of expaid ya, you never want to see this, when you leave the company, the stock has gone up 6 today. Late august of 2017, the stock is down about 26 . Wall street has certainly been more concerned about its trajectory, management style and also how its going to compete with the likes of google which has become very aggressive in travel trying to push up its results over exceed yas and bookings doing well. Dont forget who he had to follow. Hes now at uber, and look at how his stock has done over there. Certainly, the search is now on for any ceo moving on, 15 new jets are making their way to united airlines, they will be coming from boeing. United recently ordered airbus jets to replace jet blue and American Airlines have opted in for long haul flights. Airbus soaring on the news to 2 boeing, during their terrible year they had here theyve taken their eye off the ball of other jets they dont just make the 737 max, they make these others. And they lost a huge contract now to airbus. Thats a great point. Two firms are sounding the alarm for fast food chains fast food chains like shake shack and jack in the box are getting kauft in the crosshairs of a global protein shortage wendys and mcdonalds could pivot toward more chicken items on their menu. Beef prices hit high levels. Just when we thought meat was the big disrupter in the space i would think demand would be going down because you have more clearly theres more to be done here. Shares of slack falling more than 2 today ahead of earnings. And down more than 50 since e ing public thkey numbers to watch after the bell next. Woman friction points, those obstacles that limit a companys growth. I try to find companies that turn these challenges into opportunities. But by going out in the field, and meeting management, suppliers, competitors. In the end, its these unique companies with Creative Business models that will generate value for our investors. Thats why i go beyond the numbers. Welcome back we have a market flash on Bio Tech Company meg tirrell has that. A potential sale, coming from bloomberg, citing people familiar with the matter, the stock up 40 it had been briefly halted and rose 10 before then market value about 5 billion, a potential record sale. Folks in the biotech world telling me he is seen as a potential seller here. This would come after a slue of similarsized biotech deals in this space sending the etf up to a high today. We await those results from biogen tomorrow. Thank you. Slack getting ready to report after the bell since its been in a free fall. Wall street will be waiting for the company to give them their daily active users its teams platform has eclipse ed daus. Senior Research Analyst at d. A. Davidson welcome to the show. Thanks for having me. Unlike uber and lyft, slacks Reference Price went all the way up to 42 and since then has been on a freefall. Right. What are you expecting to hear tonight investors will be looking for what impact does microsoft have here especially within techforward companies, it actually threatens a little bit of the core of what microsoft does people are spending less time on outlook. Thats a big part of their business microsofts messaging around teams and daily active users gets so aggressive any commentary, if theres been any changes in the competitive dynamics, i think thats number one what people are looking for. And number two, signs of kind of a stabilization and Revenue Growth that were not seeing deceleration. Forgive me, but i dont understand why theres so much obsession with microsoft and teams as it relates to the growth possibilities for slack i mean, just the fact that microsoft has a competing product that may or may not have more daily active users than slack does, are they suggesting then that companies will choose microsoft over slack simply because of that . I dont understand. I totally agree with you. If its a good product, the company will take it right i fully agree with you. Its a huge market its the good enough effect. Investors are worried when you pay a multiple as high as what slack trades at, teams could become good enough that it threatens a future growth. Not that anyone is switching from slack to teams buts to it make it harder for slack to get in slack is currently unprofitable when do you think that changes and is that something that management will discuss tonight . I wouldnt expect them to discuss that tonight, but my take on slack is and weve seen this with uber and lyft and everything its less about profitability today and is there a more cheer and distinct path of profitability . Slack has highgross margins, strong sales efficiency, strong expansion rates. All those pieces are in place. I think investors understand theres that path to profitability. Had they dpon an ipo route versus a direct listing. Its a tricky question. With the ipo route you have less confusion around why do people use slack, is teams good enough . Thank you for joining us. Check please is next. Oh, boy woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Popular with teenagers right now and part of that are jibbitz. These happen to be seemas right here. Definitely mine. Want to explain what these are . To basco sauce. You can customize. You can stand out, show your personality. Theyre colorful can you change them up you dont necessarily need to go buy a new pair of shoes, new pair of nikes. Use the same ones but change the jibbitz. For how long . Teen consumers are very fickle. For now theyre loving it. Closing bell starts now. Welcome to closing bell. Im Morgan Brennan in for sara eisen at the slack post, direct listing. Earnings after the bell. The Broader Market is higher dow down 200 points. Im wilfred frost whats driving the action today . Renewed hopes as donald trump said negotiations with china are going, quote, very well. Weaker than expected data as private payroll slows and oil having its best day since september. Wgi up around 4 and a quic