In chicago with more. Drone this is a decision to halt production that was reached by the bored of directors from being who med yesterday and today here in chicago. And we have been hearing from people familiar that the board was leaning towards halting as owe posed to slowing it down its currently at 42 per month thats how many they build its been at that rate since back in april. Remember, it was grounded in march. What the company decided, at some point when you have more than 100 built but not delivered, it makes more sense to shut down the line until the grounding is lifted. The workers who are out at that plant in renton, washington, about 12,000, will not be furloughed they will be redeployed to other plants or projects within the company. But they will not be laid off. They will continue to be paid. The question now is, how long does this go how long will they shut down the line and nobody is quite sure the trigger for bringing the line back up will be when the faa is close to or says, look, were going to lift the grounding here most believe thats likely to happen maybe early february, maybe midfebruary do the math. Youre looking at a production halt that could likely last anywhere from 45 to 60 days. But again, thats just an estimate if there are further delays, if the faa says were not ready and it gets pushed out further into march or april, you could see this halt in production last even longer. Again, boeing has decided that it will be halting 737 max production i cant remember the last time this company has ever done this on hr own. There have been work shoppages because of machinist strikes i dont remember them saying weve got to shut down the line. This is unprecedented. A couple quick questions. What do you know about the order book for the 737 max how many for how many airlines, how many years pretty deep book speaking of machinists, my layoffs planned . No layoffs, not going to be furloughed, any of those workers. Some of the suppliers, boeing is going to be work with with their suppliers. Spirit aerosystems is a good example, they build the fuselages. Theyre going to try to work with suppliers so they do not have to furlough any of their workers and they want to continue as much as possible to continue to see that those Companies Continue to supply boeing with the key components there. And in terms of what this means for the bottomline, theyve got 4,400 maxes ordered. That backlog hasnt changed. As long as its there, thats the support for the stock. Its down 323, 320 a few months ago. Eventually unless they completely scrap this plane and nobody is expecting that, theyre going to build and deliver. That backlog extends out seven, eight years, Something Like that. You talked about spirit aerosystems, there are problem hundreds if not thousands of suppliers inside of every plane. Look down at the industry i cover, oil and gas, its slowing down you wonder if this max production halt could have a Ripple Effect on almost the entire American Economy . It certainly will have a Ripple Effect in the puget sound area, the pacific northwest. But the fact that the workers will not be furloughed at the renton plant, that boeing will continue to pay them, thats going to soften the blow a bit you dont know what happens with the 600 or so suppliers out there. Boeing is going to work with them theyre worried when we fire up again and ramp up production later in 2020, then in 2021, they want to make sure that the suppliers with meet that demand. They dont want to see the suppliers turn around and say, were cutting 20 of our staff thats not what we want. This is the tricky balancing act that boeing is going to have to work through with its key suppliers. Phil lebeau a big breaking story, appreciate that shares of boeing getting close to erasing all gains for the year thats kind of a technical line in the sand subpoena they need the stock to stop there. Down 4 , another in the afterhours. For people who want to see good news, im won of them i own the stock. Theres a couple things you could have anticipated this. They raised almost 10 billion earlier in the year to offset the Free Cash Flow i mpact. They took a 5. 6 billion charge in the Second Quarter against building i think theyre going to have closer to 500 on inventory by the end of the year i think this is not a great day but its important theyre being pro active this is as much political as industrial. Theyre getting in front of something you can argue that should have gotten in front of maybe months ago doesnt matter in terms of the level, 320 and change was the low in the middle ofaugust thats where we probably are as we speak right now weve said for awhile that this stock will continue to vacillate between 325 and 375 level. If you go back on november 26, traded 375, we were sitting on the desk, said now the time is to pull the rip cord and take profits. The good news is today the to be traded about four times normal typically about 4 million shares, traded about 16 million today. A lot of people getting flushed out. The concern is the tape at some point works against you and this is not the last headline your real level, a year ago when the stock traded down to 298, thats your ultimate support i think there should be zeebt support at this level. If you look at the twoyear chart, and its not exactly perfect, you basically made no money in the stock over two years. That is before the 737 max tragic accidents that occurred boeing hadnt been a rocketing stock before this occurred. But the prior year it had. It had. They just put out that statement that they are suspending production, and they talk about the reasons why being uncertain about timing and also including the timing for training i dont know if theres anything to be inferred here about whether they actually think the timing might be put off even a little bit further but i dont know this maybe it opens just a tiny crack i know phil said nobody is talking about it but ai tiny crack, what if the 737 gets scuttled yes. Weve talked about the possibility. Everyone says thats never going to happen. This plane will hit the skies and fly again. You wonder what if theres no guarantees. Never but i think it is good news we held the technical level the trend line is basically flat i would look for a clear change before moving aggressively into the stock. This isnt going to threaten the nature of the company. Once they start to deliver those planes that have been built, you see better cash flow positions likely i think the supply chain story is interesting if you look at a company like spirit aerosystems, theyve been producing at a higher rate than full planes are produced do they need to cut back on production their stock has held up a lot better than boeing you can see more room to the downside there than boeing itself. I think we have phil, phil, are you still there . Yeah. I want to bring you back in its really a do i understand there are some smaller players, a duopoly in large scale manufacturing. Have you talked to anybody that suggests there might be a reputational issue going forward, delta, united, they only fly the 737, is there any risk, boeing screwed us over on this one . We got Bad Information from the company. We need to take a look at airbus yes that is definitely out there and i have heard that from people in the Airline Industry at the same time, they go into this understanding that theres only so far you can go with a duopoly, that if you went to airbus, how much of a incentive could you get to become lets say if you were southwest to also start ordering airbus planes on the a320 side not a whole lot. Maybe some but maybe with a smaller plane like an a220. No doubt at all. You can see it when you take a look at whats going on with the a321 xlr which is the long raij plane airbus introduced this summer boeing was supposed to have something counter to that introduced there was none clearly boeing is focused on the max. The xlr has racked up order aever order. We just had one from united. Thats united saying were going to place 50, thats the order with airbus. There is a represent taggal risk for boeing they are well aware of it. It is not just idle chatter. You do hear about it in the Airline Industry. I know theres also other breaking news happening on boeing as youre sitting there answering that question. More news is coming on this big story. What else is happening with b. A. The latest youre referring to them making the official announcement is that what youre referring to yeah. I know you probably havent had time to dive in. Is there anything new in that . No. Whats interesting is its pretty much what we have been hearing about for the last couple of days, that is likely, said, look we have previously stated we will continually evaluate our production plans. Should the max grounding continue longer as a result of this ongoing evaluation, we have decided to prioritize the delivery of stored aircraft and tem rooirly suspend production beginning next month we believe this decision is least disruptive to maintaining longterm Production System and supply chain health. This decision is driven by a number of factors including the extension of certification into 2020 the uncertainty about the timing and conditions of return to service and Global Training approvals and the importance of ensuring that we can prioritize the delivery of stored aircraft. We will continue to assess and i think theres one last part of the statement, our progress towards return to Service Milestones and make determinations about resuming production and deliveries accordingly. Thats a nice way of saying were not sure when this is going to be lifted, when this plane will be approved by the faa and were not sure when we will resume production expect 45 to 60 days but thats purely, purely a guess. It could be shorter or longer. It depends on what the faa says. Curious how much is the politics that there was some said the faa was not happy with the guide ansz absolutely. Theres no politics there. The faa has been frustrated on so many fronts when it comes to this process with boeing and when boeing put out the guidance on november 11th, saying we expect certification by the end of some year and possibly some commercial service for some airlines by the end of j january, they went nuts. There were a bufrmg of things that needed to happen. Theres some Public Comment periods that are built into some of these steps it was from the beginning. Saw that almost immediately from the faa. They said, oh, no, no, no, no, you are not going to be the ones telling us whats going on it continued they would not bring back that guidance thats when you saw steve dixon meeting with mulenberg thats when he said to him, knock it off were not ready to approve this. Theyve got about 10 or 11 steps to go through. There are Public Comment periods in there hes not short siticicircuitins pros res. Probably the most important stock in america because of its heavy price waiting inside the dow. Thank you very much. You bet. Karen, start with this, denis mullenberg, lost his chairmanship does he deserve to lose his job as ceo deserve, im not sure. Could he . You could. Are you implying there is something that went wrong the communication . Im talking about the disconnect, the initial report, and the faa, and the lack of communication. Im wondering about the c. Eo has made such tactical errors zbl k i dont know. This is surprising to me, the suspension of production because it opens such a can of worms in terms of their supply chain and what could happen to them . If they want to revamp and get going again is that supply chain able to do that . Are the customers there . How much can you sell that plane for . How much do you owe in continued delay . How much do you owe the airlines that have already ordered them i dont know i think, god, its a lot of pressure on him. I think that was a serious misstep though to confidently convey we think that well be flying in the first quarter. I think about thinking about the stock and muilenburg and how to trade around that its difficult to buy and sell based on that in or out. You have to guess whether hes going to be in or out, guess that correctly, and guess whether the market is going to like it or not i think its very difficult to try to trade around that and make a decision solely on whether the ceo is in or out. Would it be beneficial for the stock if there was a new ceo at the he will malm at this tim . The ceo oversaw a rerating of massive pro portions which talked a little bit about the beverage on the Balance Sheet in the short sterm, not a big deal they went from 0. 4 to 2. 1, it can move quickly when youre building and not sending planes out there. Boeing falling 4 in the current session, over a percent in the afterhours much more. Coming up, it is the nonstop rally to record highs, but one top wall street strategyist says all good things may cometo an end. It might be time to take cover. Speaking of the record rally, if youre worried you have missed it, fear not your chart master has got a few names to help you catch up to this as always, we are live in New York Times square, there is so much more right after this at fidelity, online u. S. Stocks and etfs are commissionfree. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk while our competition continues to talk. Here, it all starts withello hi . How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone wifi up there . Uhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your local xfinity store today. Welcome back to fast money. More breaking news for you right now. A market flash on roku julia boorstin. Roku shares down about 4 in afterhours trading, this aas they announced steve louden stepped down he is involved in choosing his successor. The stock is having a big year despite todays decline. It is up more than 350 year to date and more than 4 it was up today. Guy, this has been a rocket ship now the cfo leaving would that change your mind i dont think thats it sellsoff the kneejerk makes sense, dan nathan ridiculed me the other day thinking that roku was headed back to 200. I still sort of think that i think i can see how people would see this as a heard ware thing, left in the dirt. Its been amazing. The moves have been great. Technically its done everything right. Its got to hold this 130 level. Again to the levels we saw just six weeks ago. 107 about 14 trading now, i would look at that range as a potential support more longer term. Take a look at this mystery chart. Were going to find out why carter war says that stock, maybe its a stock, make a commodity, is ready to break out. Plus tesla shares on the move today after a long term bear said even he iseeg me side sinso of verizon as a reliable phone company. But to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. second man virtualize their operations. woman and build ai customer experiences. second woman we also keep them ready for the next big opportunity. Like 5g. Almost all of the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. Yeah. Only pay for what you need with Liberty Mutual. Only pay for what you need with Liberty Mutual. Con Liberty Mutual solo pagas lo que necesitas. Only pay for what you need. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Theres room for more than just the business you came for. Whether thats keeping up with what you always do. Or training for something youve never done before. Thats room for possibility. Welcome back to fast money. We have a big interview coming your way tomorrow. Former fed chair Alan Greenspan will sit down with the squawk on the street gang. Check that out tomorrow. All right, happy holidays, what a december thanks. Youre welcome. What a december it has been, another record day, all three averages closing at highs. The nasdaq up 35 this year, the s p up 27 but this guy says enjoy that while you can. They are likely not here to stay blackstones chief investment strategist thanks for coming on. Thanks for having me. Hes jayz by the way. I was jayz before jayz was . Are you going to do the ice bucket challenge on this rally is this all she wrote . Unfortunately i think im going to have to, because if you think about 2019, it was a year where every single macro risk was thrown at this market. Brexit deadline, trade war intensify, manufacturing recession, earnings recession, yet markets didnt care. Why . Because 2019 was the year of the central banker in other words, Central Banks had the biggest pivot, Balance Sheet tightening, expansion, hiking rates to cutting rates. More than since any time since the great financial crisis we look at 2020, im willing to bet low level be rifbsz, trade and brexit whats the policy response going to be . Were not going to get this massive pivot the way we got in 2019 the fed has said theyre on hold and, you know, we might get incremental Balance Sheet expansion or whatever else, but not a massive policy response we saw in 2019. I think we have to prepare for volatility. Fair enough, but the old adage, dont fight the fed and dont fight the tape both appear to be mush pushing the market to new highs every day. Why would that stop with the rollover in a calendar i dont know when were going to see this volatility over the over of the course of the last couple of months. I thought it would start to kick up what we underestimated this massive policy response. But do you get your same bang for the buck when you go from 23 trillion in debt to 24 trillion or globally from 255 trillion in debt to toile 60 million in debt . Its diminishing returns you still face the same headwinds. There are ten stocks today that are 23 of the market cap of the s p 500. Itsst highest concentration since the mid snients and then before that the mid60s there are opportunities of under owned stocks and sectors i think there will be buying opportunities. I just dont know its concentrated in the big ten. What are are you thoughts for earnings in the next year . If theyre there and rates dont move we can see a market h