Stuffers, four names you might want to put on your list but we begin with big news of the day, boeing shares getting a pop thanks to the company firing its ceo phil he wilebeau is in chicago the details. The board of directors met over the weekend Via Conference Call and sunday night the boeing board said weve had enough of dennis muilenberg. They reached the decision sunday night to for him effective immediately. Basic at this it comes down to this a couple of things happened in the last two months that the board said weve had enough. The broken faa relationship which weve talked about and halting 737 max production, thats a a mop umtal decision boeing reached last week, one they never had before. The new ceo is the former executive chairman dave calhoun takes over as ceo and president effective january 13th whats his game plan, rebuild the faa relationship and to that end he called the head of the faa this morning and said we welcome rigorous oversight also a reset for the 737 max, that doesnt mean redoing all the work, but it does mean sitting down with the engineers, all the key people involved at boeing and saying where are we what what realistically can we expect, what do we need to improve, what do we need to change and final repair airline confidence in boeing and to that end when i talked with dave calhoun just a month ago about the 737 max, he alluded to the fact that getting the max back into service is job number one for this company its not over when its certified. Theres no victory in that, right . We have to get the airplanes that our Customers Put on the ground, we have to get them back in the air we have to assist them every step of the way, and we have to get the airplanes that we built and are ready for delivery to customers back in the air as well thats a long program, at least a year and its a tough, important task as you take a look at shares of boeing over the last couple of weeks, last month, look how it was under pressure there, trading all the way down into the 320s for a brief couple of days keep in mind the airlines are right now expecting the 737 max to be recertified likely by early spring, scott but again, nobody is counting on that theres no time line that is out there, those time lines, those are a thing of the past. We saw those constantly under dennis muilenberg. We are not going to see that under dave calhoun you reported as well today, phil, calhouns already working the phones yes, actively, and its not just him he has stan diehl, the head of boeing commercial airplanes, greg smith, tim keating in charge of Government Relations out of d. C. , all on the phone, with airline ceos, the head of the faa who dave calhoun called today amongst other people they were talking with members of congress. They realized the damage that has been done over the last nine months, and at a minimum, what theyre saying today is we realize what weve done wrong. Were going to turn the page were going to improve, and its not going to happen overnight. Nobody is expecting it overnight. At a minimum theyve changed their tenor and tone we appreciate it, phil lebeau in chicago is this the catalyst boeing needs to stage a turnaround in 2020 guy adami . Welcome, scott. Thank you, guy. Great to have you here. Great to be here. I know you watch this show reledgio reledgiously, weve been saying for gheit some time the way the stock traded since this happened back in march, 375 is the upper end of the range, 320 is the lower end. I know categorically we said the stock will probably trade down to the august 14th low which is 320. Thats what happened, and it happened on significant volume so its a turnaround . No can this get us back up to 350 or so, a 50 retracement of the move weve basically seen for nine months . Yes. This doesnt change anything in my estimation in terms of th boeing story but a great trading stock and i think theres room on the upside. Doesnt get the planes back in the air quicker but they had to do something. They had to do something. The irony is as phil pointed out part of the reason for the firing may have been the grounding of the max production schedule, but in fact the whole thing seems like it was about placating the faa and the faa was really offsides in terms of how they interpreted boeings actions and muilenberg was the guy. I dont think that todays announcement does anything to change the trajectory of the 737, pun not really intended but in terms of getting back into production i dont think this does anything in terms of the fundamentals of the company. I think this is actually what had to be done i think larry kelner coming in on the chairmans role, phil talked about working the phones all day. This is the exceo of continental airlines, a guy who certainly knows what the customers need to hear, a guy who will help repair that brand. Theyre doing everything theyre supposed to do this is a proactive move by the board, a lot of people felt they should have been proactive months ago the stock has done nothing for 18 months. Its been an overhang for the economy, too it has hurt, gm strike is another factor from a consumer standpoint would you fly a 737 . Would you fly it id fly it. If its back into production and i think its ready to roll most of the airlines, delta gets points for having moved forward with airbus really more tactically but look, i realize there are a lot of folks that think structurally you get into the max and where there have been issues with this plane, have they solved them. I dont think the safety issues right here and now for the stock price are at all part of whats going on i mean, i think its also interesting that if the 320 level holds it really depends on your time frame for this stock this is something thats going to be going on for a long time when you look at etfs its the largest weight in the diamonds adding to your 401 k , your i. R. A. Youre essentially buying the dip in the stock its also around a 1 weight in the spy so if you own those types of things you own a little boeing there are residual impacts. Stocks like ge, a customer of boeing, for example, was specifically noted in steven touzas Research Last week as one of the reasons why he cant yet get bullish on a name like ge is because of the overhang on boeing so its not just a boeing story. There are other Companies Making components and other things that go into these jets that you need to get back in the air i think thats a fair point a 5 price target on your show a week or so ago i cant say its going to five but i think its going to go probably to eight before it goes to 12 1 2. Thats another conversation. In terms of your point though, a Spirit Aerospace for example, symbol is spr on a date that boeing is up as significantly as it is, you would have thought just tangentially this stock would be up a percent and a half, 2 it was up maybe 0. 4 i think thats telling you something. Although you see a relief rally in boeing that can last the problems they face are still out there. What is it telling you, guy tells me the stock is going to trade between this 320 and 375 range but i think the longterm is this stock probably pushes back in my opinion to december low i think 295 a warm body in the seat doesnt get the plane in the air tomorrow either. There was an analyst on earl ger from jeffries i believe on cnbc and was saying 275 was their price target if the max doesnt come back into service, it would be bought by the military but theyd get something for it but not the full amount. Your point, scott, ge aviation is the best part of ge and if thats impaired, there are certainly some impacts again i dont think todays announcement does anything to change the schedule of when the max is back there. The analyst i read nobody really adjusted, i heard everything from kind of march to april to people that are being more conservative, the middle part of the year i think people already and i mean investors and i certainly mean analysts have begun to dot impact on Free Cash Flow and the impact on leverage those are the things you should continue to be watching. Net leverage of the company went from being not even a factor in a company that was spinning off Free Cash Flow like it was going out of style, but the other thing that you are starting to hear about is to what extent is boeing now really needing to be looking at innovation, and a company that we thought had overcome so many structural kind of practical issues they dealt with more years in terms of not finishing planes on time and having questions how innovative theyll be, that may be coming back into the forefront. That was not an issue for three years as this Company Really rerated. Im even thinking about sort of like wells fargoish type things where you the ceo on watch crisis is out and next person doesnt have the job that long either. There is a lot to develop. Who knows where this will shake out. I dont think anyone should expect this to be a short ceo two to three years i was reading hunter wolf. This is his call, a practical response i believe were his words in terms of what youre supposed to do here. You bring the chairman down to the ceos role, continuity and a guy into the chairmans role who comes from big airlines. Our gex guest called for mr. Muilenberg to step down months ago. Ernie arvai, welcome back. Thank you, my pleasure. Any surprises by what happened today i dont think so. It happened in the season right before christmas which is never when you want to see Something Like this happen but i think its a strong move by boeing to at least have a scapegoat here mr. Muilenberg wasnt getting the message through with the faa and with some of the International Regulators and customers, and i think those negotiations all were going south, and we had what perhaps was the final straw the failure of the Starliner Space capsule over the weekend to dock with the space station and just the add up of all the failures that happened have maybe that was the last straw for the board is calhoun the right person there is some suggestion and pushback that they should have been outside given the culture of whats transpired and how this could have happened in the first place. It might have been wise to go outside. In my choice i would have done that but calhoun certainly has a strong background in private equity but a shareholder value disciple from his executive time at ge. It is shareholder driven and he needs to change the culture but hes been associated with this culture as a board member for the last ten years so its tough to change something that youve done but fundamentally, this new ceo has to communicate with engineers on a knowledgeable basis, instill innovation back into the boeing culture, which really hasnt happened as much over the last couple of years, and that may result from the cash flow on the 787 debacle when that program went into financial verdrive, but theyve had the money to innovate but theyve spent it primarily to increase the stock price on the shareholders. If youre a shareholder, ernie, if i could jump in, if youre a shareholder tonight, should you feel better about boeing i feel about the same as i did. I feel a little bit better in terms of the potential and recognition of the problem the question can they solve the problem, the jury is out well see he said a number of right things in terms of transparency and communication and thats important i think larry keller as the chairman can certainly communicate with airlines on a peertopeer basis, given ko continental. We have a resource that is useful its really the culture that has to change. An engineer who has a safety issue has to go back up to the chief engineer im not pudging budging on this one. Its a question how far can you go and how far can you push things within the culture. Boeing has culled that back from the engineers and theyre frustrated i think as a group in seattle. Ernie we appreciate your insig insights thanks for being with us. My pleasure im reading ernies notes he was talking about the culture he would have wanted to see a dividend cut and Company Focus on their product line. Thats a bigger story here we may hear more about. Were Getting Started here. Up next tesla is kicking into high gear, the stock crossing the infamous 420 level but will the gains go up in spoke one of wall streets biggest bulls says the record rally is snowing no signs of stopping, where Julian Emanuel sees another upside life from metis square, much more fast money right after this 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. Welcome back tesla topping the tape today the stock crossing the 420 level. Elon musk once said hed take the Company Private at that number as we know now that didnt happen and probably not happening. We did hear from mr. Musk today, he tweeted whoa, the stock is so high, lol. All that the jokes aside, is there more room to run this stock has exploded the last three months the first half of this year i think we did a decent job, the move from 350 to who is we this show im not an i person. I speak in the context im i when im wrong and i am bea to say, by the way, but i have been dead wrong for the last literally 200 175, dan came on the show and the sentiment so bad it was worth a look and he was right. I thought wed get to 225, 230 that was correct here we are 200 later its disingenuous to come on and say you sell again ive been wrong. Hasnt stopped you before you cant just speak in a vacuum you have to put that out there has it gotten ahead of itself, without question i thought that 100 ago. No stock more important to acknowledge whether youve been right or wrong doesnt matter but 220 ill up your 200, ive been wrong for 220. The thing about the move that doesnt necessarily change in telli negative view, theres not a lot of detail who is going to fund the battery business i want to see profitable and two quarters in a n to a complete change in the fundamentals on the Balance Sheet and Free Cash Flow i have to reassess. Everything from the mass exodus departures to profitable, capex has gone down. Only thing that is up is the stock price. Youre an options guy i am. Is the better play on options play rather than a stock play . I like the stock play if you take a step back and look at the daily chart, the weekly chart the stock is trading in a range. I like breakouts has it gotten too far . It has broken out quickly. If it back end fills there is your opportunity it spent so much time in the range breaking out is a good thing. I think it could come in a bit this is high data on the market so if you love the market well talk about the market, everybodys so bold up on 2020 sure. They think the names will do well, Broader Market and the economy. The economy i think is going to do great well talk about gdp. A sail gent point you get the responses when funds dont line up. Where are the bonds traders on tesla we should bring back a bond king they rallied. To christians point about the back end fill. The previous jowel time high in june of 017 for you home gamers out there. For more on teslas record run head to cnbc. Com heres what else is coming up on fast. Markets may be at record highs but one sector is far from seeing its best days will energy play catch up in the new year the chartmaster breaks it down plus apple has got a new biggest bull on wall street. Well find out just how high this stock can go. That and much more when fast money returns we offer commissionfree online u. S. Stock and etf trades. And, when you open a new Fidelity Brokerage account, your cash is automatically invested at a great rate thats 21 times more than schwabs. Plus, fidelitys leading price improvement on trades saved investors hundreds of millions of dollars last year. Thats why fidelity continues to lead the industry in value while our competition continues to talk. Talk fidelity. Talk we believe in education built for all people. , [woman] snhu was the best experience of my life. [man] without snhu, i wouldnt be the leader i am today. [woman] i graduated high school 19 years ago. I still finished. [man] in the military, you feel that sense of accomplishment. Thats what snhu is. You will march from this arena and say to the world. I did it. [woman] you did it. I love you. [graduate] i love you too. All right, welcome back to fast money. What a difference a year makes tomorrow marks the oneyear anniversary of the Christmas Eve market collapse. The s p 500 plunged 2. 75 , briefly slipped into a bear market the s p up 37 since them. Btigs derivative strategist Julian Emanuel sees the s p 500 hitting 3450 next year i cant believe im going to read this next number, says you think we could approach 4,000 on the s p 500 next year. Mr. Bull, nice to see you. Great to be here. Under the right set of circumstances we can what is fascinating to us is that you teed us up previously, one of the biggest bulls on the street, were only looking as our base case 7 upside and whats amazing is that when you look at the past history of years following good years like 2019 the ranch return is over 14 . Thats the ingrained defensiveness that weve seen the entire year leading stocks higher and we think theres plenty of going into 2020. How many of those following years happened to fall in an election year, a lot going on next year especially in the second half. The market can withstand all of that there is a lot going on we certainly think the runway is reasonably clear in the first half if you look today, i think we could all argue given the rally we had the last couple months the market is overbought on a short term basis when we look at things like the hedging structures going out past the election, the profound sort of fear of you know, a good economy, politics that seems to be working in the favor of creating economic upside it seems sort of irrational to us in a lot of ways. What about earnings, though all of the things that you said are working, earnings exactly not, arent exactly working. You better have earnings we think you do were looking for slightly under 7 growth, really consistent with sort of you know, a stabilizing global gdp scenario, places where europe, things seem to be looking a little bit better politically obviously the u. S. And china looking better, u. S. Mca about to go into effect. Its really sort of normal when you take the last two years into consideration. A juice tax and this past y