Highest level in two years trade headlines have us on record high watch for the s p, a closer call for the dow and nasdaq and would be the 27th record close of the year for the s p. Joining us for the other, stephanie link, good to have you here this afternoon. What does it mean . The computers take each headline as if its fresh what a difference a year makes is all i have to say last year we had tight fed policy, no idea what would happen with trade. This year we have much more accommodating fed and seems were getting some pieces of certainty on trade may not be what we want but making progress. Now i would argue a lot of this is priced into the market given weve had Market Expansion on the multiple but, you do not fight the fed and at the same time the ism and pmis are stabilizing and the data this week has been pretty good on other data points on the economic front we might have risk to the upside in growth for 2020 and thats why the cyclicals are rallying ive been biassed, its been painful all year so a good couple of weeks. But you stay that course were going to focus in on the big stories were watching and its all about trade Kayla Tausche has the details on these breaking china headlines at least what we know. Bob pisani is tracking the market reacshown and mike santoli is looking at apple and where wall street stands on the name well kick it off with Kayla Tausche. Get us up to speed what we know. We know this is a moving target. Reporter three sources close to talks are confirming theres a deal in principle between u. S. And chinese negotiators that the u. S. Officials are expected to bring to President Trump this afternoon during a meeting between all of these principals and discuss next steps one much these sources tells me President Trump has been focused on the agricultural purchase number and wanted china to make a bigger commitment. That commitment had been around 40 billion in u. S. Products and he wanted it closer to 50 billion. Highest ever total that china had purchased in a given year was 26 billion. Certainly thats a number to watch in terms of any announcement that we get from here another thing thats important about whats happening now is that whatever gets agreed between the u. S. And china at this stage is expected to be signed its not just expected to be a negotiated in perpetuity after this im told by one of the sources that the Chinese Ambassador is expected to sign this agreement if President Trump does give his blessing to do so at this point. Any decision by the president would need to be made in short order in order to put the official notice in the federal register to stop those tariffs on sunday from going into effect of course, were awaiting any news coming out of the oval office what the president decides and whether hell take the deal that his negotiators are bringing him well be talking again very soon Kayla Tausche in washington today. Lets bring in bob pisani and take a look at the names moving on the back of those trade headlines. Reporter record highs. A broadening rally, more than 200 stocks at new highs. Thats what you want to see. Usually trade related names like microsoft and apple hitting new highs. Illinois tool works. Nike also hitting 52 week highs. Semiconductors, naturally major part of the trade issues many hitting new highs today including broadcom yield curve is steepening. Heaven for banks new highs right across the board. Global banks and big regional banks. Trade questions three big issues down here. Are they going to cancel the december tariffs, will they cut the existing ones, and is there an assumption they will reimpose the original tariffs if china fails to go through. The most important thing cutting existing tariffs, guys, because that is removal of sort of a tax on the market at this point. That will dramatically help improve the earnings outlook for 2020 and thats what the market is concerned about now thats why were getting these moves intraday on these trade headline stories guys, back to you. Apple another key bellwether. Credit suisse said iphone shipments to china fell 35 in november lets get to mike santoli for a closer look. Did get to a new high. A it did. That Credit Suisse is a little bit of a stress test for what might be baked in to april approximately. Is there still room on the apple cart in terms of both. This is where the street sentiment analyst breaks down. You can see really still a reserve of skepticism. You have 57 of all analysts have a buy rating. Thats in the yellow thats up a bit from 12 months ago from january when they had that big warning on china look at the price targets. The green is the actual stock price. It passed the agree get consent price target thats unusual when you talk about a big index name where everybody is involved and Everybody Loves the technical picture. It shows that the street is definitely a little bit hesitant to really chase it at these levels all else being equal thats positive heres the valuation set up and an explanation for why the street is a little bit not so ready to jump right in right now. This is the valuation of apple pushing 22, an eight year high this is a super earnings phase of apple after a few generations of iphone. Then the pe relative to the market at a premium after so many years of discount i guess you have to wait and see if investors and analysts ratify this move for. To be a premium stock. Mike, apple is just one of two names on the dow lower albeit marginally slow we hatch this very closely for any updates as its connected to the trade war. There was a note out putting a 150 increase on the iphone if we get these tariffs because the stock is at such a strong move to this point, courtney, it seems almost as if there isnt a lot of trade worry embedded in it which is why i guess its not rallying even more on this idea we might have some kind of a move. This is just one name. Thank you very much, mike well come back to you often throughout the show. For more on the Market Impact lets bring in Global Market strategist with jpmorgan Asset Management what do you make of the moments here on the market certainly not the highs of the session, so some disbelief this is actually going to be put to paper as Kayla Tausche was saying weve been waiting for this for two months, since september 11th we aldo. Weve been waiting for this for a while. There was already a consensus that the december 15th tariffs would indeed get pushed back we got the market a little bit excited in the middle of the day was the possibility for upside surprise the removal of existing tariffs. So lets see well have to wait and see that would be a significant upside surprise. Stephanie have you been surprised how well weve dealt with the tariffs in place. For most part Many Companies found mitigation strategies to work their way through it. The consumers have held in quite well the consumer is quite Strong Manufacturing they had a hard time of it in the last year. However, that said last year and beginning of this year was their time to take pain, to restructure, to increase pricing, and so now in 2020 heading to 2020 you have easier comparison, price increases to offset the tariffs and maybe we are on to something with this pmi stabilization. So those sectors are doing better because theyve been hit so hard and pretty cheap is this stabilization ism, global ism, pmis for real and how much do you attribute the overall rally to that. We attribute part of the rally to that. Its not just the trade deal expectation. Initial sign much stabilization in that hard hit Manufacturing Sector globally. Especially certain parts of the pmi survey has been pointing to stabilization Global Growth in the First Quarter of next year if you look at new orders rising, inventories much more stabilized i do think its for real just really important for the data to confirm that well be looking at the december flash pmis next week that could push the market higher look at the german Business Confidence numbers starting to improve. We need china to stabilize for europe to stabilize and germany to continue its upward momentum even stability after two years of deceleration, if stability is all we get in 2020 thats a win thats a victory were getting more optimistic about global stocks as well. I want stems the recession worries are pushed so far away from where we had been earlier this year. But Global Growth and domestic growth has slowed. Are we just more in a down shift than a recession period . I do think data has confirmed its more of a down shift than a stall. Whether its the u. S. , europe, whether its china, but by no means i dont think well see recession fears pop up again in 2020 or 2021 were still late cycle trade deal or no trade deal. For us its about having exposure to risk, growth factors but maintaining that insurance just in case because were later cycle. All right good to he see you thanks for the time. When we come back this Afternoon Chamber of Commerce Executive is with us he has been critical of the president s use of tariffs in the trade war but also incredibly plugged into the negotiations well give us some insight as to where we are on this deal. What do advisors look for in an etf . Dont just track an index, help me meet a clients need. Is the fund built to sell or built to last . Etfs are only part of a portfolio. So make it easy to explain. Give me a quality fund that helps me get clients closer to their goals. 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. Servicenow put our this changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. Were going back to Kayla Tausche at the white house she has more details about this phase one trade deal what have you learned . Reporter we expected that meeting with the trade principals to be taking place at 2 30 p. M. But we learned what meeting actually transpired at that time was between the leadership of the Business Roundtable including ceo josh bolton as well as ceos of Major Multinational Companies this is a group that had been critical of the tariffs but supportive of the overall objectives of the administration in china trade its unclear whether this overlapped with the meeting with principals and whether these ceos were privy to the details of the terms of what was being discussed. But certainly interesting that as the president is considering this deal in principle with china on phase one, that hes also hearing from some of these ceos who are really in the line of fire in this dispute at the current moment kayla, thanks for that set up for more list bring in myron fr brilliant. Thanks for the time. Help our viewers understand how this may be different than what we heard on october 11th i think its fundamentally different. I think the president told people the deal was essentially done several cabinet members were doing outreach as well the bottom line is the two sides had gotten pretty close over the last few days on the basic elements of the deal, which was what are we going to do on terms of tariffs and ag purchase the other issues around ip and currency manipulation have been addressed. It was about getting these things confirmed and tightened up and i think they move quickly. They saw the opportunity, and i think were all excited that a phase one deal is going to be done imminently. More work to be done certainly in their relationship. There are issues that wont be addressed in this agreement, but its a good starting point brings far greater certainty to the most important commercial relationship and i think its going to help the u. S. Economy heading into the Holiday Season. Were welcoming it for sure. Myron, you mentioned there was some discussion about tariffs. What do you know will happen there . Is there a delay no tariffs . What is it what ive heard from Administration Sources is that it will go beyond just suspending december 15th tariffs that in fact there will be traf cuts i think well hear about that in more detail tomorrow but certainly the chinese side from discussions that i had with vice premier and others in the government in the last 24 hours the expectation was to go beyond that and what i heard from the administration was confirmation, in fact, that were going to have deeper cuts and suspension of december 15th thats good news to the american consumers, to farmers, to manufacturers. And, of course, it has to be that we get something in return for the tariff cuts which mean much stronger ip protection. Weve been pushing for language along trade secrets. Some of that will be dealt with hopefully and see the details soon, i expect in the process was one thing that tripped us up in the fall, myron. Do we have to go through the whole where is this going to be signed who will sign it can it to be done at the minute terri ministerial level . The ambassador has the authority to sign. There are four people in china who can sign this agreement. The president , the premier, the minister of foreign affairs, and actually the ambassador. Can get done with a signing ceremony by the ambassador we dont need a trip to china. Could it happen that way we could see a sign ceremony in washington what happens with the next phases were looking at phase two and three. Whats left over i think its been pretty clear in my conversations with the key u. S. Negotiators that theres more work to be done significant tariff reduction in phase one would be helpful but west to see improvement in the Business Environment in china. Well see some efforts in phase one to deal with Financial Services and agricultural access and purchases and well see hopefully some language on ip protection we got more work to do to improve the overall relationship on china we got to deal with some issues that will not be addressed to the full extent, issues like subsidies, industrial policies, some regulatory issues and, of course, issues around data and cross data border floss. Theres plenty of work ahead that has to be addressed these are issues core to hines economic model it will take more time to get done but if we improve our relationship further well have to get to those issues in phase two or phase two and three negotiation. Do you see that phase happening before the election . Well, you know, thats the big question mark. I hope so. I hope they build off the momentum this has been a great week we got the usmca agreement moving in the right direction. Were hoping that will take up in the house for a vote. We see now phase one agreement which has been discussed and now finally we think it will get done so lets build on this momentum and get more work done lets not wait until the elections because thats a long time from now. And you just dont know whats going to go on you know this is a complex relationship there are other factors in the relationship that have added some intensity to it over the last six months. So we hope that they will move forward quickly. We certainly communicating that in china ill be there early january to meet with the leadership in china. Im certainly hoping well keep that momentum going. And not wait another year. That would be a mistake. Myron brilliant, thank you so much for calling in. Please keep us updated we are all over this major trade news coming out of Washington Well continue to bring you all the latest headlines as the s p looks to close at a new record after the break shares of ge up more than 50 this year if you missed out on the rally one firm says theres more lexaimeo co wel pln that next. Memory suppo. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. When i see obstacles, i create opportunities. soft music when i see adversity, i find a way. When i hear never, i say now. [announcer] Southern New Hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. cheering so when i face barriers, i can break through. [announcer] breakthrough at snhu. Edu. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. Music boeing shares are down on these new production concerns. For the that well turn to phil lebeau for some details. Three big pieces for boeing two within the last hour lets start first off with boeing ceo meeting with the head of the faa, Steve Dickson in washington this afternoon at the end of the meeting, boeing put out a statement saying its taking back its guidance in terms of when it might have a return for service for the 737 merry christmas. Falling in line with the faa saying any timeline is going to be set by the faa and remember Steve Dickson told us yesterday this plane will not be recertified in 2019. That impacts the second piece of news boeing is slowing down planned production rate increases for the 737 max. Originally the company said look well go up to 47 per month. At the beginning of 2020 then by the end of 2020 we get up to 57 per month they are currently at 42 thats changed now they will go up to 47 per month likely in march and up to 52 in september. Forget about 57 per month h