Check out the shares of five below. We will tell you how low below could go power lunch starts right now and check out where we stand on the s p and nasdaq both in record territory not there just yet still below the key 29,000 level that it hit on friday. Thank you very much, everybody. Earnings season b, thats going to be your top macro story the next couple of weeks it is kicking off in a big way with big banks set to report tomorrow and this could be in some ways a make it or break it for stocks as a whole because earnings are expected to drop on average 0. 7 if they do, that will be the second straight quarterly decline. Back to bob at the nyc its not so much theyre down 0. 7 for the Fourth Quarter thats a concern for the markets because thats largely priced into the market and if we go where we normally go, that wil come up. Well end up to about 2. 5 overall. Its these numbers First Quarter and second quarter. They were much higher a few months ago while its typical for numbers to come down, not when you have a lot of Big Companies at new highs, particularly the super cap stocks and when the valuations are so high, its troublesome. Prices going up and earnings continue iing to come down usuay creates a rather overbought market first thing about the markets today, very narrow Equity Leadership this has been going on for a while but its been getting more concentrated then the priceyness of the mark. You usually look at the forward four corners of this thats at the high end of where its been the last 20 years. Whats narrow Equity Leadership . S p is up 1. 5 in 2020 facebooks up. Alphabet, microsoft, 3 . Amazon, 3 all five, the five largest stocks in the s p are all dramatically outperforming the s p 500. When you get that kind of move up in the biggest cap stocks, super cap stocks, thats going to drag a good part of the s p 500 upside of course we are at new highs on an intraday basis. Again, that narrow leadership and the priceness of the market means an issue thank you very much our next two guests both expect to see the market higher this year in a new note released from btig, chief equity and dr derivatives strategist says the s p could bang on the door of 4,000 this year. Though his overall view is that it might be lower than that. That would be another 20 jump from where we are right now. He joins us along with lorraine gilbert. Julian, lets drill on that 4,000 possibility. Thats not your base case, however, is it no, its 3450, which represents another solid year. To us, 3950, if you look at it, were almost 11 years into this bull mark. Weve seen a will the of elements conspire to send stocks high higher but one thing we havent seen is real public enthusiasm, real public buying, the kind you saw at the end of the 1990s. The kind you saw during the hey day of the housing market. Our view is that in an environment where Interest Rates are likely at the long end to move higher, you could see rotation out of bond funds, out of money market funds where the balances are as high as theyve been since the financial crisis in 2009 and into stocks. Thats what moves you there. The other thing we think is important to mention is here we are in 2020, the oldest baby boomer is 75 and the actual tables are going to catch up with him or her shortly where as the oldest millennial is 40 entering his or her prime income and investing years and theyre underinvested in that case youre also watching demographic, but i want to talk about your price predictions for the dow. You think it could hit 30,000 the first half of this year. I do. I think that happens from the strong leaders already the leaders were seeing like visa, microsoft, apple continue to do well. Those are the darlings and it wont come from the problem children like boeing or walgreens. If you think the market is going to go higher, would you be investing more in american stocks or be look iing at International Stocks thats a great question were coming off a great year in the s p 500, which also statistically tells us we might have another solid year. The its also an election year, which bodes well for the market. Having said that, when we look at whats trading at a premium versus a discount, were currently trading somewhat off of a a premium on our longterm trends if im Underweight International now, youd say whats underweight internatio L International . So, international in general is underweighted in general. For a good 20 , very few people actually have 20 . If im below, i would want to add to get to that are we underweighting the election risks actually, were not and interestingly enough, the way we measure that is we look at the Options Market for signs of a relative henl position. Going out past the election term, the price of downside puts versus upside calls is why people despite the fact that weve moved 30 something percent from a lows a year ago, people are still very reluctantly embracing the idea that the markets going to go higher. Depending on who the democratic candidate is, some of the policy proposals could not be more difficult. Potentially ending fracking. A tax on every transaction on wall street. Im not saying whether those are good or bad. Its an economic thing as we see perhaps Bernie Sanders surge, should investors be willing to accept there may be more risk in the market than there was before not a political comment, just an economic one based on the policies to us, it more than sanders actually surging, what the last several weeks have brought to bear is the market is imply iin its a two horse race between biden and sanders and the rest of the field seems to be lagging behind in some ways, that actually reduces the uncertainty. Though there was no e question that the policies of the two are different. But especially in a place like hemt cahealth care, which has be b the laggard and is cheap relative to the rest of the market we think the premium is already built in sectors you love. Sectors you loathe we love health care and when we look at that, it was lying quite a bit in 2019 until the Fourth Quarter when it somewhat caught up. We still see a will tlot of opportunity there. Sectors i would stay away from would be utilities trading at a premium very expensive there are much better opportunities. People are seeking yield and are doing so in a couple of different areas. Yule tillties, real estate, high yield debt i would say shift was quality at this point quick question to you a sector you love and would avoid. Health care and financials are going to do very well and we would avoid the Interest Rate sector ewe tiutilitie utilities, consumer staples. Over 2 in the long bond yield and the tenyear yield changes the psychology today marks a new era at boeing as David Calhoun takes over as ceo. Hes got his work cut out for him. The company attempts to get the 737 max back off the ground and deals with controversy over emails that mock federal regulators, but it seems he has a clear message for his employees. Phil lebeau with boeings future one reason the boeing board selected David Calhoun to become the new ceo is because he can hit the ground running hes been there. He knows whats good, bad, what works, what doesnt so his busy january includes immediately calling regulators, suppliers, airlines hes already been doing that since the end of december when they said he would be the new ceo. Hell visit the 737 plant in washington next week he wants to streamline the max processes. Doesnt mean theyre going to throw on the work thats been done, but its a primary focus in fact he said to the employees in an email today, look my primary focus right now, getting the max back in the air. Theyre going to be winding down production at the plant b probably in the next week or so. The last of the planes that were going through process when they said they were shutting down production, its almost through. When you look at calhouns resume, remember hes steeped in working with conglomerates, he wants to make decisions quickly and thats what you can expect from calhoun as ceo of boeing. They report earnings in a couple of weeks nobodys expecting a lot from those although tan interesting thing will be will there be an Additional Charge because of all the airlines that said we want compensati compensation there were some out of europe saying we waexpect a bigger chae than the 4. 9 billion. Thank you very much coming up, tesla on a tear trading above 500 up more than 40 in a month. Thats a great year. A great decade for me and we are talking to the analysts who just became the biggest bull on the street then well head live to the Health Care Conference in San Francisco. Exclusive interview with gileads ceo well talk drug preshethic, al care and much, much more sorrow. Its a master stroke of heartache and redemption. The lexus nx. Modern utility for modern obstacles. Lease the 2020 nx 300 for 359 a month for 36 months. Experience amazing at your lexus dealer. 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 welcome back tesla kicking into not high gear, but maybe another gear all together the stock hitting another new high its at 517 a share tesla surges caught many on the street by surprise, more than doubling in just the last 90 days so last week, we asked some analysts why he and the other bull on the street havent rayed their price targets to match the recent surge listen were doing some additional diligence here in terms of where Technology Positions are across the industry evaluating how that looks relative to tesla, both on the operating system as well as on the power Train Technology and its a challenge for us and when a stock moves 50 in three months or 100 in three months, we have to respond to that and so we want to make sure were on solid ground as we make those calls. Just a couple of days after that, that guy became the biggest tesla bull on wall street, raising his price target to 612 and joins us now. I guess i got lucky. He looked good in that video. He really did were doing some additional diligence. Apparently, your additional diligence resulted in 225 price increase how do you get to 612 . Seems oddly specific one, you want to measure twice an cut once. Were not changing a price target around every couple of months op this one, b we have been doing a lot of work around materials going into the batteries and how that expertise really flows through the rest of the power train. We want to do some checks last week and make a couple more calls. We did that at the end of last week secondarily, were looking at operating systems and how that translates into Autonomous Vehicles theres going to be another it ration on how selfdriving cars evolve another thing were looking at with tesla, they have over 600,000 cars on road so as they take all that data and feed it back into the system, like the last 1 of scenarios that could happen. An elephant may walk across the street what are you going to do youre going to die if that happens. It depends on if the car stops. If its a deer. Also the circus is going b to be angry. How about this is some of tesla, the recent run has been some, the shortages caving just asimon out, crushed, done some of these competitors that efb was everybody was so worried about. Theyre not getting a lot ov love and i realize if they realize teslas may survive. The ones coming out in 2022 and 2023 and how those are e evolving and what were looking at is designs similar to the tesla model three. Coming out two, three years from now. So our conclusion is given some time and tesla being able the to learn from its mistakes theyre going to continue o to evolve ahead of their competition one other point is that china factory came up quickly. First ground to first car is less than a year i think that put a lot of automakers on notice i was going to ask a similar question how far ahead is tesla over its competitors. It seems theyve got a big start and brk, theyve got bran prominence thats really important. I think youre right. Consumers are looking at sustainability and where they spend their dollars and buying things with their values and sustainability is a big trend. Weve kind of yolked that youve got to listen to them talk about their car. A great point because what were seeing on the coal side is companies shutting down because they can reduce the delivery to electricity price so theres a real revolution happening on the utilities side where cost declines are really driving a material change. And that will help. Is there any way to gauge . If gas prices were to spike, is that good for tesla . Sure, i think it drives consumer demand. I dont think people are buying teslas because of total cost of ownership calculation. I think theyre buying them because theyre great cars and theyre the way of the future. Thank you very much appreciate it. Price target now 612 from 385 and the stock is about 517 breaking news from Major League Baseball on the sign stealing scandal involving the Houston Astros lets go to eric with the details. So if youll remember the astros, they won the world series in 2017 and there were reports a couple of months ago said they were illegally saling signs through electronic replay abuses Major League Baseball. Matt complete d its investigation and will fine the team 5 million and suspend their major for the entire season the general manager for the entire season as well. The team will also forfeit their first and second round draft picks in the next two years, but of course they are still the World Series Champions of 2017 they dont have to give that back the league investigated by interviewing at least 68 people including 23 players who admitted they knew what they were doing was wrong no word on what happens to alex cora, who went on to the red sox who won the world series in 2018 there are rumors they were stealing signs as well so eric, big breaking news there. This is sort of the ncaas version of the Death Penalty coming from Major League Baseball if a swrrj hinch is suspended, know what that means is he not allowed in the building, the field, hes on his couch for a year who coaches the Team Remember tep years ago, sean peyton of the saints was suspended. Missed the year, then came back and has been coaching ever since then we are expecting harsh punishment for alex cora of the red sox. Now, so theoretic that the red sox who had maybe nothing to do with this, but because they hired b somebody from the astros, they could get whacked yeah, were going to have to see. They said theyre not done with that part of the investigation so 5 million, that fine, thats the maximum allowed, but if you win the world southeast and this is punishment you get, it might be still worth that trade in the long run thank you very much appreciate it. Five below down more than 10 after disappointing holiday sales numbers. Well get the traders takes on that one also the biggest names in health care theyre meeting in San Francisco today and weve got an exclusive discussion with daniel oday power lunch back after this. Created by apple, not a bank. With a better way to track where you spend. A new level of privacy and security. Daily cash you get back every day. And no fees. Not even hidden ones. Oh, and if you happen to be somewhere that doesnt accept apple pay yet, theres this. Nice. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu 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 welcome back take a look at discount retailer five below suffering its worst day since 2015 Dollar General meantime is higher on the day. Are any of these stocks a bargain buy . Lets bring in your trading nation team. Boris, i got to assume amazon has really been suing here when you look at five below, great company, great management. Six less days. May have overstocked on frozen, too, which really b didnt help bausz nobody really bought it that much. But when i look at the whole sector, ollies is really doing poorly ive got to wonder, the common wisdom, this business is nonam sonable. All impulse buys but i wonder if were not seeing impulse buys online i wonder if amazon is moving down market. No one in a quarter or two if they can right the s two, a lote ships are going to be strong buys for now, i would put a pause on it just to see how the business goes as you analyze these charts, any of these look compelling to you . The group has been troubled doesnt really stand out for us. Probably the one that does for exposure here would be Dollar General. Dg stock is really just traded sideways for the last five months and thats helped the work off some previously overbought conditions. That sideways consolidation all occurring above support above the stocks both its rising 200 Day Moving Average and the bullish break away gap from august as well would also note that shares rated outperform by oppenheimer analyst, when you add it all up, we see a near tuerm opportunity to buy longterm strategy. Got it. Thank you for your time. For more, head the to our website or follow us on twitter. Back to you. Thank you very much still ahead, weve got an exclusive interview with the ceo of gilead. Were going to head down to the hello care conference in San Francisco to ask about big mergers. Plus, its not just tesla. Apple has a new biggest bull on the street one analyst boosting the price target to 375. Well give you details and wheres the beef why soaring beef prices could become a potential head wind to some of wall streets favorite restaurant stocks. All that when power lunch returns. Welcome back im sue herera heres your cnbc