The fda giving the green light to one of its power drugs. Power lunch begins right now welcome to power lunch. Take a look at this record rally. All three major indices hitting new highs. The s p and nasdaq also higher and she can out the semiconductor. The smh tracked the group up more than a percent. Well have more on that, later thank you very much. Two trade deals in one week. It was supposed to quite all those trade concerns but some are now questioning the feasibility of the deal with china and now mexico has objected to some of the terms of the new usmca. We are joined from washington. Mexico said its a deal breaker that the white house and democrats agreed to put monitors on the ground. The u. S. Trade representative in a recently released statement saying the five attaches will be no different than those already representing other agencies there saying these personnel will not be labor inspectors and will abide by all relevant mexican laws and those issues will be conducted by the independent panelist appointed mexicos top trade negotiator is in washington today to discuss this issue and is expected to speak to reporters momentarily its too late to make changes but the process moving quickly on capitol hill. Checking one box on trade as negotiators turn focus to phase one deal with china where a legal review and translation process are under way and the u. S. Is aiming to have ministers sign the deal in washington the first week of january. Nowthe lessening of the trade overhang bob is joining us with a look at what stocks with trade not being as big of a concern. Bob. The question is do corporations have anymore feasibility on 20 than a couple of years ago the fed is neutral now they made that clear u. S. Economy, chances of a recession pretty low brexit, big defeat for labor trade dealing its not really a deal its some kind of truce for the moment Global Growth were still trying to figure out the bottom does look like theres a sign of the bottom the Global Market seemed to believe theres a bit better feasibility. Were hitting historic highs in the u. S. Does that not impression you 11 when is the last time you saw the vics at 11 thats a sign the market is not too worried now. Take a look on yields. Were at 52week high. This is the largest etf. If that doesnt impress you, how about bank stocks. We have seen the yield curve strengthen were break outs on new highs and all the major banks. I think you make an argument, somewhat better viz blts than two weeks ago. Tyler. Thank you very much with stocks at record highs, is there more room to run into 2020 or will this ongoing trade war put a ceiling on the market. Gentlemen, i notice that both of you are basically saying what about the face of stocksuthand, value stocks and international as losers or laggards move to winners and michael, you say you like u. S. Stocks compared with international. You like stocks relative to small caps and you like some of the growth to your areas as posed to value areas brants, brant, you make your case first. If you look in the u. S. , you want them to become more cyclical small caps in general last year have under performed dramatically small caps were expensive because the narrative was they were in the trade war which was completely wrong you had leading i understa inins those are negative to small cap. They are cheap because they have underperformed leading i understa inin ining i bottoming. Negative real rates are here on inflationary front and thats a basis for small cap rally. Michael with greater clarity on trade globally, not only the u. S. China but also the potential for the usmca, you could see a reacceleration in Global Growth. One of the head winds to companies in particular has been the strong dollar. Now with the growing budget and trade deficit, the fed who already cut rates and improvement in trade, i expect better earnings from Multinational Companies that should flatter those earnings and they also benefit to a greater degree by the lower tax rates. Much more than small caps from that stand point the other interesting thing is earnings are significant for next year. My guess is they are likely to come in a little bit disappointing relative to the t analysts currently have on the small cap stocks do you think the plarkts reaction is justified. This deal does leave out some major issues it keeps 25 tariff on 250 billion of chinese goods in place. What are your thoughts about the markets reaction . I do think its been rewarded and right. If you look at it, weve had a normal Economic Business sickle undernooeeath the surface we do think it leads to better growth this is a sector trading at its highest leave. Is there room left to run . I think there is. Given the fact that remains remain so slow so given the fact that the cost of capital is zero, companies that can general ra generate a tremendous amount, in terms of very high growth rates and an economy that is still likely only to grow and the u. S. Around 2 and globally a little more than 3, high rates of growth continue to be attractive those valuations although higher on a very welltive basis to where they have been in a while, they are nowhere near the levels we saw at the start with the technology needed in the telecon bubble thanks. The nations Home Builders are feeling pretty confident about their businesses. Chief economist noted builders are still under building due to lack of labor and land and increased costs stocks with big names are up a bit. They were a little lower this morning because Interest Rates are moving higher today. It appears no matter how great the builders feel, Mortgage Rates will always have the last laugh. Back to you. Makes a good point. Coming up, a changing of guard at Nbc Universal, our Parent Company, well look at the legacy of steve burkie and the challenges ahead well talk to the ceo about the potential for the drug and what the market might be at cssg. Thsoming up on power lunch. As a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . 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Our Parent CompanyNbc Universal with more on the fire ing julia reporter well, also navigating the digital disru disrupting peacock is the streaming Service Launching in april followed by the Tokyo Olympics this summer t a 15year veteran, chairman of universal. A majority stake of Nbc Universal closed. The most widely seen event ever. He led the expansion of the theme parks including buying out partners in the orlando parks. Hes a key architect of the sky acquisition. Now he will assist in transition sounds like a nice future for him. Stick around for more on this leadership change and the challenges ahead for jeff shell. Andrew, welcome. I would say the legacy is no longer do we have to have Ge Appliances in the break room i would say if i had to pick and julia did a marvelous job summarizing all the things that mr. Burke has done, one of the things that stands out is the vitality of the theme parks that hes brought hes made them a real serious, serious goal i79 to put one other on the list thats not on the list and he doesnt get enough credit for, buying Nbc Universal. If you understand the confidence that Bryan Roberts has in making this what was a momentous decision i would argue that steve burke gave brian confidence and courage to make the deal at all. After that, 100 the theme parks out perform wildly out perform anything anybody thought was possible but i do think that comcast as a company would be a Different Company without Nbc Universal and would be had steve burke not been there to make that happen in first place also what he did with the acquisition once they had a hold of it. One thing he did was this idea of he created this Cross Company collaboration system the idea these different divisions should not be operating totally, separately. They should be collaborating and figuring out ways the tv division, the channels, the theme parks can all Work Together and really maximize the different brands across platforms. Nbc universal did not have anything close he was an oerpperator as mucs a deal maker that was done almost in the cover of night surprised everybody and really pushed out and created a consistent system and theme for these networks as we said through 20232. I remember when i woke up that morning and thought, wow, theyve got it for that long i had forgotten the imprint will be here long after he hangs out in montana. What do we know about some of the challenges he may inherit . Yes, theres a lot of challenges the big challenge is streaming and getting peacock off the ground having said that, julia can speak to this because shes out in hollywood when jeff first got out to hollywood, i remember reading the story. When he first got there, everybody was wrietsing him off. He got into that chair and made it work better than anybody anticipated. You look at the franchise and the franchise films that didnt exist before he was there. Many of which are now going to be ongoing franchises and youll start to see in the theme parks. Ill have you sum it up that the challenge is streaming you can see it as a rival to Film Entertainment this is an executive who has touched nearly every single part of the company he has international experience. He also was appointed to run the studio with no movie experience. He went onto have the most profitable year ever hes between the international and domestic experience here and hollywood is just about a block away from where im standing now on the studio lot. This is someone who is seen as having all the experience necessary to take the rains and really to add a fresh perspective as they navigate the digital challenges its about how peacock is managing in conjunction with the Cable Companies and they talk a lot about wanting to make sure that peacock is bundled with cable and trying to figure out how to reach the cord cutters or reach cord neverers. Its also what happens to the movie business trying to figure out how to make sure the content aspect are best exploited either with ad supported peacock or trying to get movies to peoples homes faster thank you very much shares of Micron Technology and Western Digital boosting the entire chip sector today after a big upgrades is now the time the buy chips . The boeing 737 max saga taking a new turn and the stock preventing the dow from heading higher will the grounding of those anes continue to dive on power hundred mp wilunch will bk this wave is rolling, lets get going we got places to be heyeyey vo whether thats taking in every moment. Or capturing a moment worth bringing back. Thats room for possibility. Lets see how far we can go, oh oh oh oh oh through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Woi felt completely helpless. Hed online. 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. 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 to power hundred lunch. Micron leading with record highs. Could the rally cool down. Not only does it rank high in our momentum work, really broad based across the board thats what were looking for. One name we like here, Microchip Technology mchp not as extended as some of its peers. Just starting to break out the level to watch, 108. That was the stocks peak from 2018 just breaking through two year resistance on that break out we see upside to 130 with trading support here at 97 here is a fresh break out getting going by microchip nancy the trade story has helped the sector out perform in 2019 what do the fundamentals tell you . Its been really interesting. We went over with the group last december in march i thought i had made a big mistake. They were one of the Top Performing groups this year. We expressed our commitment to the industry by the sector by adding in over weight in broadcomm and texas instruments. I think the company is well positioned as we move forward. Thank you for joining us head to our website or follow us on twitter ahead, boeing grounded the company considering now halting 737 max production as its grounding of that aircraft wears on what does this all mean for boeing a booming bio tech fda green light for one of its heart drugs. Shares are soaring this year and the ceo will join us next. A decade of dominance is on its way out. We will tell you which stocks are buying opportunities for the next ten years all this when power lunch returns. Welcome back here is your cnbc news update. Boris johnson and President Trump say they look forward to the negotiation of an ambitious Free Trade Agreement this during a phone call this morning. Trump congratulated johnson on his winning for east general election chinas foreign minister is criticizing the u. S. For expelling chinese diplomats who drove into a sensitive u. S. Military installation asking washington to reverse its decision neither country made the september episode public freshman new jersey congressman Jeff Van Drew is expected to leave the Democratic Party to become a republican he reportedly discussed switching parties in a meeting with President Trump at the white house on friday. In response, six members of his staff resigned completing a 25year journey. Mariah careys all i want for christmas is you has hit number one very the very first time its the first holiday song to hi hit that mark since the chipmunk song back in 1958 to 1959. Thats the news update this hour back to you. Thank you my Favorite Movie because of that song. Thanks this hour lets take a look at the markets the dow still up triple digits the s p and nasdaq also higher all three major indices notching fresh record ons that phase one deal check out some of the stocks hitsing record highs nike, apple and target trading at their best levels ever. Time now for todays power movers shares of axsome soaring today next, pg e sliding today california governor rejected the em battled utilitys bankrupt plan and pay out billions to wildfire victims take a look at shares of tesla. They are revving up today. Its a key advantage for elon musks car Company Shares of boeing falling 3 today as that Company Reportedly considers cutting or suspending production of the 737 max as the time line for the planes return to service slips deeper into 2020 back in april President Trump said the company should rebrand the max given the bad press and its only gotten more bad press since then john, good to see you, sir thanks for having me. Lets get to the question of whether the 737 max and its branding needs to be totally over thrown. Is the only way that this plane or a cousin to it comes back and succeeds is if they dont call it that anymore or will the public buy that . In aviation, actions matter, history matters. Changing the name of this airplane isnt going to fundamentally change it. What really matter s bs is gettg the airplane recertified and back in service safely thats the only thing that will rebuild the trust. A look at lift of the d. C. 10 which famously there was a terrible air dis aaster near chicago involving a d. C. 10. I dont remember the history of whether they tried to rename and rebrand that plane i do remember the history and that was the plane went out of manufacturing within a couple of years of those disasters there was a horrific air crash near chicago in may of 1979 the d. C. 10 was grounded for 37 days after that crash. The airplane came back in the summer of 79 and all the summer plane tickets had been booked. The plane flew full for the most part it was about a year later that it was found that public trust was shaken 10 said they had grave concerns in the airplane safety douglas tried a pretty expansiv campaign in 1980