The rise of sky walker already on pace to break some records. Weve got those details as powe lunch starts right now check out this record rally. The market on track to wrap it all up at all time highs check out shares of boeing that stock down a percent as united says it will not fly the 737 max until june well have more on that story in minute yes, we will. Thank you. Gdp numbers, Gross Domestic Product are out this morning 2. 1 growth for the fourth quarter. Closing out the first decade in recorded American History without a recession. We have more on the slow and steady, what do we call them 2010s . 2010. The teens you work on that. Ill come out later. Were going to work on what we could call the most boring decade youd say Nothing Happened gdp averaged 2 . It fell 2. 5 in the Great Recession in 09 in 09 the lowest it got this decade just 1. 6. The lowest average inflation and we hit the lowest Unemployment Rate donald trump who brought big Corporate Tax cuts and the trade war that represented a backlash to prior decades of globalization. One argument to nderpin the trump campaign, u. S. Economy could do better than it has. I feel like this whole decade were doing the stock market stats and its all good stuff. I feel like its the age of baseball with the steroids we came off such a terrible 2009 with the financial crisis that the entire beginning of this decade effectively came from such a low base that everything is going to be kind of skewed. Everything is skewed. There was a postrecession period and then you had a ramp up you had another slowdown, which you caused me . The Energy Business youre responsible for everything in the Energy Business 08, you helped. 2015, 16, you had a Market Growth slowdown and then you had a ramp back up you had in 2017 into 18 the biggest tax cut in American History. You had zero funds rate for six of the ten years then you had an attempt to go positive and it never went positive believe theres just about a generation of people on desks out there on wall street who have grown up with negative real Interest Rates they would not know what to do if Interest Rates went positive. They would freak to your point, you do all thee these events if you ask people under the age of 40 that run money, probably 25 , 30 of the people raise their hands. Theyve never seen a down market was there no bare markets in the 10s i think we went right toup t up to the s p. We came very close if i had my choice, if i could go slow and steady at two without recessions, without bubbles, i would take that over the possibility i could run three or four for a couple of years and have to give that back through some kind of crash or popping of the bubble. 100 . Call it the tail of two decembers for the market last christmas wham. Last christmas investors were crushed weve been mr. The green with the s p 500 up fortune 2 so far this month and on track to close the year ill stop at record highs. I was kind of on tune. What does this divergence mean a stronger december signalled it will be a roaring 2020s for investors because the previous century didnt end so well welcome. It was this weird anomaly. Things fell. We have come back. Gotten more of that back and then some. What are your expectations over the next year, over the next ten years. I definitely think the next year or ten years will not look like the last ten year i think we have to sort of modify our expectations a little bit and bring it down more we get through the next decade without a recession that would be a goal. We got through the last ten years without a recession. We said we really didnt have a bare market but we got right up to the measure. You expect well have a bare market this decade its inevitable human nature drives prices up and down the probability of not having a recession is higher than not having a bare market because of the way the economy is changed if you look back along enough ago in an agriculture driven economy, weather drove markets and recessions its not all together clear that Interest Rates have the same efficacy youre both sort of in the camp that next year will probably be a year of high single digit returns, 7 to 9 , Something Like that. Mostly driven, as i understand it, by Earnings Growth not so much by multiple expansion. What are the odds that next year looks much more volatile than this year and what are the odds that we have not a bear market but a full hfledged 10 correction the trade war, the tariffs being rolled up and some being pushed down further or just totally removed. If those things are out of the market and the clients or the individual consumers have confidence in the market boost the probability it wont be correct they will spend their money the markets do well as long as people are spending money. What sector should i put my money in for next year we like consumer discretion nation and communication we think those are two areas that should be strong. It can protect some of the telecom can give you nice dividends too and emerging markets. Were adding about 3 to emerging markets we think with some of these things settling in theres opportunity tr growth there. How about you scott the thing to watch for next year in terms of a source of volatility is probably actions by the fed and not the kind you anticipate not the fed deciding to raise Interest Rates but its Balance Sheet operations if you look at the fact the Balance Sheet is up 380 billion many the past kwaquarter, that why were ending the year on a strong note. The Balance Sheet could be at a new high by this time. 160 billion in repo operations on january 30th why do they need to add 320 billion to liquidity and the cash system or the banking plumbing if everything is fine i think its another way for the fed to buy an insurance policy my culprit would be something in that inner workings of the fed its not Interest Rates going up or down. Watch that to answer your question, we like the strength of the consumer as well its sort of a boring story. Its a 10yearold story now as long as the labor market is healthy and the Housing Market, those are tail winds i would say, too, were trying to guide our clients into Sustainable Investing and the areas of the markets where we think is puck is moving versus where the puck is right now. That would include robotics, Artificial Intelligence and helping to sustain the water scarcity and things like that. Thank you very much boeings efforts to get the 737 max back in the air hitting another delay today and phil has the details. As they continue to work on this, what youre seeing is the airlines are pushing back when they plan on flying this plane again and were starting to see the cancellations threaten the Summer Travel season younitised is the la ee ee eed to june 4th. Two months later than southwest and american that means the number of cancellations are close to 150,000. If you break it down by airlines, southwest has cancelled 60,000 flights these are max flights. 49,000 from American United with these cancellations topping 35,000 take a look at shares of united going back to march 13th thats when the max was grounded the stock has moved higher in a difficult year for the airlines. Compare that with boeing if you go back to march 13th, what has the stock done . Its not been a good 2019 for boeing back to you. It has not. Thank you very much. Now lets get a check on the bond market because it may have been boring from an Economic Perspective but ill tell you what, its been pretty dramatic from the bond market its hard to figure out where the market will go if you look at the twoyear note, right now were down one basis point and up one on the week here is something interesting. Lets look at a monday through friday chart of two year notes looks pretty choppy. If you look close the entire scale is between 161 and 164 if we look at last friday where there was a big range, you see how it swishes down. The point is that twoyear note yields arent going anywhere fast the further down the curve you go, the faster the movement and volatility get lets look at one week of tens look at that its aiming up but it still doesnt have quite enough gains to the upside and yield down side of price to close above 195 resistance the dollar index one week ago today the dollar index hit a low of 96. 68 its over a penny higher than that back to you. Thank you very much coming up, stop me if you heard this before. A new product comes out, apple get sboos ts into the game latee it bigger and better than anyone else is apple about to dominate wearables the way its done thwi phones and tablets power lunch will be right back apple card. Is a new kind of credit card, created by apple, so its simple and transparent with a new level of privacy and security. It lives here and here on your iphone, and it will save you 6 on Holiday Gifts at apple; like iphone, apple watch, airpods pro and so much more. Apply in as little as a minute, right in the wallet app. 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. Tonight is a magical night. Anything is possible. I love it. And a drumroll, please. [ hisses ] [ hisses and snarls ] [ bell chimes ] lets dance and now the icing on the cake it is the wearable wave whether its on your wrist or ears researchers say the popularity of wearable devices is surging just look around, folks. Josh has the numbers hey, josh. Tyler, its actually apple, too, that dominates wearables according to idc controlling 35 of this market with its watch, air pods and beats headphones the market for wearables will jump more than 70 this year topping 300 Million Units and reach nearly 500 Million Units in 2023. Here specifically, emarketers saying more than 20 of the population will use a wearable device. Thats nearly double 2018s level and next year he says gener gener generating 15 billion. Hesitate telling clients after strong adoption and saturation of the iphone, he does forecast deceleration of air pods Revenue Growth to Single Digits or lower. Back to you. Thank you very much. With wearables set to surge over the next couple of years the Fastest Growing user segment is 55 to 64yearolds how might that drive innovation and change in the space. I have an extremely important question for you because we know the phone, this thing is an appendage. Its part of our body now. The wearable literally is. Are the wearables going to supplement this or whether this, the phone, die this will be a moment in Human History a and the wearable will be the future or will we have to deal with both of them in f its a great question i think the Tech Companies are figuring that out. We still need the phone. Look at the air pods look at the watch. They both defend pend on the ipe you can use those with your android phone. The watch you can get the cellular version there are some movements to show we may be able to use these inspe independent of our phone right now we have the phones lets talk about the Health Impacts of these wearables ive known two people in the past year who had an i watch and fell one was injured. The other just fell in a gym class and in both cases, 911 was called its an Amazing Technology yeah. I think that was you led with that striking stat this age group, 55 to 64, which have not been early adopters people who want to buy the latest and greatest and then apple came out with the apple watch series four that had fall detection and i think made a move to look at that older generation and say what are ways that this type of technology on the beside thody that we can her types of people. Not only with the fall detection thats an incredible feature itisted it last year but also with the heart rate monitoring they werent looking before at the latest and greatest apple watches or air pods, a new opportunity. I used to call it red battery syndrome remember on the old days and still kind of outside of airports everybody chain smoking because they have a nicotine fit now its charging fit. Everybody is desperately charging everything all the time anywhere they can. Is there any indication that people are just getting to peak charges . How many things could you possibly have and have to deal with every day where youre just looking for your fix of electricity. Yeah. Its funny there was this rumor report about the latest iphone the iphone 11 was supposed to support charging on the back side of phone. This is something that samsung has. You can flip the phone around and use the phone to charge wireless headphones, a watch, whatever kind of accessory could be charged by phone. It can charge another phone on top of the phone in was a report that iphone was supposed to have this capability. We didnt see it but i can see this coming in the future. The better the batteries in phones get, the better we can charge the other things that connect to it. Air pods, 6 billion business for apple in the past year that will rise next year the watch sort of correct me if im wrong here, i think the popular perception is the watch got off to a bit of a slow start but not anymore. Yeah. I think apple has been in a marathon here. It wasnt a sprints. It starred to release the watch. My opinion had been apple has no idea what the watch was supposed to be for. When they released the watch, it was unclear. Is it for notification, fitness or just a cool looking thing you really saw where apple was going. This was really becoming a fitness device it was becoming a Health Device and separate from our phones, get some pretty important notifications but really just get the time and get those other core things that related its also a phone the current version of it you dont have to have your phone nearby its a fully fledged communications device. I think some people do pair their air pods to their watch. I dont do that. Ive got my phone. I dont like screaming into my wrist. It is a phone. The best place people use that is when they go running and a work out and dont bring their phone with them. Thanks very much. We appreciate it good to be here 2019s rally has been driven in large part by tech but fjs a financials are the best group. Will the banks keep rolling in 2020 the reviews for the star wars eavie havent been all that grt. Power lunch will be right back washington insiders te very uncomfortable term limits. You and i both know we need term limits, that congress shouldnt be a lifetime appointment. But members of congress, and the corporations whove bought our democracy hate term limits. Too bad. Im tom steyer and i approve this message because the only way we get universal healthcare, address Climate Change and make our economy more fair is to change business as usual in washington. Welcome back citigroup and jpmorgan moving higher after wells fargo increased price target but the broader Banking Group still sharply below it what does 2020 hold for the banks . Lets bring in your trading nation team. Craig, started off here. The group obviously has taken the lead one of the best performing sectors for the year can it continue . I think the banks continue to roll on. If you look at a spread between the 2 and 10 year yield you will see its widened out were close to seeing nice break out here the next is around 61 and then 65 from our perspective we want to be buying these banks. If its working better, does that mean the committee economy clear and the yield curve with continue steepening . The economy is slowing down the yield curve has been steepening because it gives the fed the room to keep rates low i think that will keep the yields curve steep and continue to help banks. The bigst thing that helps banks is valuation they continue be the cheap relative to the rest of the market and right now investors want good value and banks right now have probably some of the best valuations out there. Low valuations and didividen. Its a good formula for now. Follow us on twitter. Critical reviews theyre not good but do movie goers really care investors and builders finally ready to move in together well explain. Check out todays mystery chart. This once left for dead retailer not dead yet trading at all time high on pace to end the decade strong all this when power lunch returns. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. And a drumroll, please. Yeah tonight is a magical night. Where anything is possible. Its party time. Woo here we go. Ha, ha. Now for the icing on the cake come, were about to begin. Im sue. Looking to crackdown on the number of vaping related illnesses, the derksa and fda a shutting down 44 websites selling illegal vaping cartridges the products have been linked to thousands of lung injuries one illinois boy got his Christmas Wish a bit early take a look at that. The 11yearold who suffers from a rare speech disorder asked for 100 inflatable Christmas Decorations and numerous strangers answered the call. Thats beautiful th