That is all ahead but we begin with seema mody and the Market Action today seema, it was record highs to start. Were not there yet, though. Yeah. Thats a great point, dom. Three hours left in trade. Take a look at the screen. Were actually losing a bit of steam. Nasdaq now down just about three points s p 500 higher by four and the Dow Jones Industrial higher by 64 points. Nasdaq, if it gets back into positive territory, it would be on track for its tenth consecutive close. That would be the longest strea since 1997 and it really has been a strong weak lets break down when stocks have been leading the charge as you can see, it is primaril technology apple. Intel. Amazon in fact, amazon stock now playing catchup on track for its biggest oneweek advance of the year in response to those strong Holiday Shopping sales stock up about 6 . Also, want to draw your attention to shares of nike. Sitting on yet another record high this afternoon. Consumer edge overnight raising its price target and initiating coverage with an overweight rating and yes, some analystis saying this is very late to the game. Up 38 this year but analysts there, they think this company can continue to benefit from the consolidation that were seeing in the brick and Mortar Retail space. Dom, back to you. Seema, thank you very much for that update on the markets as she mentioned, nike hitting new high today along with a host of other household names including facebook, apple, j. P. Morgan chase, and microsoft all hitting new highs today. But its not just the usual suspects rallying this month check out whats happening with the oil services sector. Now, back in august, it hit a 52week low. In december, its roaring back up around 15 . So should investors be looking at these rebounding laggers as we look ahead into 2020 . Lets ask kim forest, chief Investment Officer at boca Capital Partners also, chief Investment Officer of Greenwich Wealth management kim, were going to start with you here we mention some of those household names. We also mention energy and oil services how much of that energy trade is going to be a big theme in 2020 . I think investors really, really want energy to be a big trade. But i also fear that its globally oversupplied. And while the rebound is great, i dont think i would ride it on up past this point. Interesting because the prices have been rising steadily were still not at 52week highs. But han, there is a case to be made that energy has gone down so far that it could be compelling at this stage is it right to think that it could be poised for a bounce next year . Yes, i think it is right, dom. I really like energy weve seen a nice rally in oil prices but Energy Related stocks havent kept up with that. So i think they eventually will catch up so i think its a good time to get into these names they are very oversold ive been adding xle to many of my portfolios. An easy way to do this using an etf. So yeah. I think energy is a good place to be. Vahan, are there places in particular besides the etf market exploration and Production Companies . Is it the large integrateds . Is it offshore drillers . Where exactly can that relative value still be found in energy well, one stock i really like is murphy oil. Its an Oil Exploration and Production Company their last Earnings Report was better than expected i think theyre in the midst of a nice turnaround. So i think that stock is still undervalued. And has a nice dividend. But as far as the bigger integrated companies go, i also like exxon mobil i think that would be a good stock to consider also with a nice dividend. So i think stocks like this, individual names, are good things to add to your portfolio. But again, the easy way to play it is with an etf. All right thats the contrarian play because its obviously been a lager so far this year kim, lets take this back to the leadership nasdaq, 9,000. Its tech and communication stocks that are doing all the heavy lifting. We know the mega cap names out there. Can those names in the nasdaq still be trusted on to continue this trend higher . I dont think anything is trusted. But i think you should look to the technology and data supplier kind of area for your portfolios and you might want to go down not just in those big names but the next rung lower to try to find some undiscovered values. But our society is moving in in a direction of everything being connected. And the things that connect them, semiconductors and the data companies, which are now telephone the old telephone companies. I think theyre important. And they are Center Pieces of our economy that we build whole businesses around. And you just cant ignore that. So, kim, lets put lets put names to this. Whats on the Shopping List for you . What names go on that list in 2020 sure. Well, i still love and it is a bigger name intel and its funny the show before, you know, somebody was pounding the table on intel and ill join that i think it is not well understood why you should own this name because people think of pcs and intel and i think that theyre expanding their market the other thing that i really love about intel is they own their fabricating plants and i think theres a whole lot that investors can get out of that because they theres a lot of engineering knowhow that gets passed up and down the value chain there. And it should, in time, end in better margins, which is always better for investors. Tech leading the way again. Thanks, kim forrest. We appreciate it well, this got our attention, folks. China, russia, and iran are set to hold joint naval drills in the gulf of oman its a headline in the past that may have rattled the markets but for some reason, these days, geopolitical risks and tensions are not worrying investors at all. Could that change in 2020 . Lets bring in admiral james devritas, former supreme ally commander at nato. And weve got Michelle Caru carusocabrera as well michelle, we got to start with you. Youve been watching so many of these risks for so long. Are there certain places in particular that you think will ring the bell for investors in catalyst terms in 2020 it depends on if there are surprises that that obviously as a surprise we dont expect. Right . You can look at 2020 geopolitics and say what are the priorities of the Trump Administration . What are the risks the priorities are going to be, still, china, russia, iran, and north korea. What are some of the risks what if we get a cyberattack that hurts our Critical Infrastructure in some way how long does it last . How much does it reveal any weaknesses that we have . That could be very destabilizing for the markets. But i think the reason you dont see the markets reacting to the news you just talked about is because weve become very aware that those three countries are an issue and we have to see them in a different light than we did five, ten years ago. I mean, admiral, michelle brings up an excellent point here its been the last few years that north korea was hocking missiles into the ocean. Iran and the issues in the gulf have become perhaps desensitized there. Is there anything in your mind that represents that true, unknown risk that really rattles things next year i dont think completely unknown. But lets take the two cases at on discussion here one is iran. Recall just a matter of months ago, iran was attempting to sink tankers, was shooting down drones and most critically, attacked the Saudi Oil Fields they certainly have a lot of capability in the bank and look for them to make that move and, frankly, these naval exercises are showing the world that china and russia are going to be more supportive, perhaps, of iran than they have been in the past so i would watch that closely. And for investors, id watch the arabian gulf watch what happens at sea. On the other side of the world, north korea, we were looking for the christmas surprise who knows . Maybe itll be the kwanzaa surprise or the hanukkah surprise theyve got until new years but i think there will be a surprise on the north korean side of this because, again and again, weve seen kim take an unexpected turn in events. And here, im really with michelle watch for cyber. Both from north korea and for iran so i think there is potential out there for a variety of unfortunately unpleasant surprises. So all those names that you mentioned, michelle, theyre in a graphic behind us right now. Geopolitical risks to the rally. You mentioned russia, china, iran, and north korea. Admiral just agreed with you cyberis going to be key. Uhhuh. Among those, who should we fear the most on the cyber side of things . Is it iran north korea, we know they have an army of hackers out there. I think all of them russia clearly has the desire, the where with all, theyve demonstrated that already. China, we know has been stealing intellectual property via cybertheft for a very long time. The the will to really hurt us comes from iran if you want to worry about infrastructure that could be what if they do something to the water system what if somehow electricity gets permanently shut down . Or shut down for an extended period of time what if we cant communicate via the internet for days at a time . How would we even work here at cnbc, right . When i talk about that being the biggest risk, its because, gosh, containing it and constraining it and us reacting to it is is something that we havent done yet as opposed to we have been dealing with russia and china and iran in conventional terms for a very long time. All right were going to leave that conversation there i admiral, ill give the last word to you. Yeah. Just one one additional thought here is, were heading into an Election Year. And, therefore, the cyberplay here is going to be magnified in that rarefied air leading up to november 2020. So i think michelle and i would agree here in cyber, we have the greate greatest mismatch between level of threat, quite high, and level of preparation, which is not so good all the other things weve talked about, preparation is pretty good. Watch cyber in 2020. Lets see if our government and officials have learned anything from what happened in 2015 to 2017 michelle, thank you very much. Admiral, thank you very much for your thoughts. Well, heres what else is coming up on the show coming up. Amazons had a monster decade. Will the momentum continue in 2020 california is going the way of the eu. And it could have a huge impact on tech companies. And applying for an auto loan be sure to read the fine print this is the exchaen bcng o priority. I would declare a state of emergency on day one. Congress has never passed an important climate bill, ever. This is a problem which continues to get worse. Ive spent a decade fighting and beating oil companies, stopping pipelines, stopping fossil fuel plants, ensuring clean energy across the country. How are we going to pull this country together . We take on the biggest challenge in history, we save the world and we do it together. A more secure diaper closure. There were babies involved. And they werent saying much. Thats what we do at 3m, we listen to people, even those who dont have a voice. We are people helping people. Amazon reporting a record Holiday Season add that to the alreadybooming ecommerce business and it spells potential game changer for the year in the delivery business. Frank colin joins us more with what to expect in 2020 for amazon 2019 is on pace to be another record year for ecommerce. With holiday online Sales Forecast increase as much as 14 according to the National Retail federation and the trend is expected to continue in 2020 heres what to watch. First, ecommerce exceeds expectations. The global ecommerce market could grow to 4 trillion in 2020 according to ubs. But has the potential to be even larger as more retailers offer sameday and nextday shipping, along with added Curbside Pickup options. Also, total sales made by smartphone are expected to increase by 32 next year, according to emarketer. Second . Amazon acquisitions. Amazons ecommerce empire is built on strong logistics on the ground and in the air. Amazon currently operates about 50 planes and expects to have 70 flying by 2021 look for acquisitions in 2020 as it continues to grow its capacity for ground logistics and delivery. And third, drone delivery. Fedex and ups are battling to be the leader in residential Drone Deliveries both companies are testing technologies with Drug Store Chains to deliver prescriptions and retail goods amazon and google also have their eyes on the skies when it comes to shipping. 2020 may be the year ecommerce takes flight in a whole new way. All right thanks, frank, for that. Meanwhile, amazon shares higher today after posting their best day since january. And set to cap off this decade with a truly amazing run here. Get this that stock is now up nearly 126,000 since amazon went public back in 1997. So will the 2020s be more of the same for more, lets bring in steve, managing director of Wolf Research also, Dan Gallagher of the wall street journal, as well so, dan, lets start with you. Set the stage for us here. This amazon story has been massive over the last 10, 15 years. Does it continue in 2020 i think 2020s going to continue to bring very strong growth, especially for a company of amazons size but i also think that growth is going to be more expensive to come by and more challenging amazon sales growth has already been decelerating over the last few quarters and i think thats going to continue because theyre facing more competition in the cloud. More competition in retail so this is a company that, while theyve averaged over the last ten years, you know, about 28 annual growth, im not sure i see that going ahead in the next ten because, one, theyre so big. And the other is, theres just more more competing on all sides for all that money. All right so, steve, i mean, this is interesting. The last Quarterly Report for amazon showed that the Amazon Web Services division, their crowned jewel of growth, is still growing rapidly. But just at the slowest pace in years now. Should we worry about the growth story at amazon . Or can that number really start to propel amazon shares into the next decade . First, let me say that my colleague chris covers amazon for us and he has an outperform rating from a tech strategist perspective, i think aws still has a lot of growth ahead of it. Andy, who runs that business suggests that only 3 of workloads have moved to the public cloud most investors would size it more 10 to 15 but the point is were still in maybe the second or third inning microsoft azure is clearly catching up but its still about half the size. Jassey thinks aws has a 24month lead, particularly in features so i think this is going to continue to power the company. In fact, its probably worth almost half the market cap today. So, steve, if its worth about half, how much do you think of the stock price appreciation for amazon over the course of the past, say, two or three years has been driven because of aws and how much because of that Retail Businesses actually scaled toward some semblance of profitability that can be maintained i would guess maybe twothirds of the appreciation has been in aws. Now, you questioned some of the margin pricing pressure we could see. In our surveys, we find users are still more focused on features than cost so i think theyre going to continue to do well. But obviously, the growth is going to come down somewhat over time amazon is really two platforms its a transaction platform with third parties on the retail side and then its a innovation platform with aws and the very strong ecosystem and amazon still, we think, has better scale than competitors. Network effects. And switching cost all which will benefit the company over the next five to ten years. So, dan, i wonder i mean, from a competitive perspective, you brought it up. Lets talk about comp competition on the retail side of things. Youve got the likes of target and walmart actually making huge strides in omni channel and ecommerce. Its been driving their stock, obviously. And then you got the aws side of things youve got azure, google cloud, other cloud providers. Also starting to gain ground on them which is the bigger competitive story in the next year i think cloud is the most is the bigger story in terms of competition that could affect how amazon is valued in the market because like steve said, a lot of the appreciation weve seen over the last few years has been primarily from aws and the way the stock has performed over amazons last two Quarterly Reports, its gone down and thats because those aws numbers havent come in the way the street expected. So i think that has kind of an outsized impact on how amazons market value ends up and so and when you have microsoft and google and a lot of other cloud players really driving hard for that kind of money, for for those dollars, and a lot of potential cloud customers now see amazon as at least somewhat of a threat because amazon is getting into so many businesses that affects their calculation of who theyre going to do business with in the cloud and thats usually a leg up for Companies Like microsoft and to a lesser extent google. All right Dan Gallagher. Steve, thank you very much for those thoughts on amazon great to get your thoughts donors are saying whoa to Elizabeth Warren whoa her latest fundraising numbers coming up. Plus, early employees of facebook were able to cash in big on their sweat equity. But as startups stay private for longer, that payday is further away thats coming up later on the exchange. Deeper data at cnbc. Gasoline consumption in the u. S. Gained 0. 3 in the week ending december 20th compared to the same weea ark ye ago thats slightly higher than expected welcome back to the exchange. Here are some of the stocks on the move this hour youve got flexion therapeutics soaring tod