Lunch begins right now. And welcome. Im courtney reagan. Another day, another rally stocks are surging, the dow up nearly 200 points near the highs of the day all three of the major indices hitting record highs in what has been an unstoppable rally and tech leading the way again, the sector now up 4 alpha get, even mastercard and visa hitting alltime highs. And everything seems to be getting love, everything that you can think of buying is going up and lately even the most hated stocks on the street are feeling the love bob pisani has some of those names and an expractilanation f. Arising market can lift even the most hated this is called Short Covering where traders are short stocks are forced to cover their positions by buying back stocks. Either the price of the stock rises really quickly or the cost to borrow it might go up two heavily shorted names tesla and beyond meat have had really big rallies. Tesla up 20 , beyond meat up 43 . And that is likely triggering a short squeeze that is contributing to the rally that already existed in those names they are not alone other heavily shorted names like peloton for example, Virgin Galactic and smile direct club have also had notable rallies in the first weeks of the year. They are all up and Short Covering also likely paying a bit of a factor here but not everything is up heavily shorted names like u. S. Steal, hanes brand and range resources, they remain down on the year the shorts certainly are winning those particular bets, but a lot of other ones definitely losers for the shorts tyler, back to you thank you very much so both loved and unloved stocks jumping to start the year almost nothing being able to shakele resolve of wall street, so is this an unstoppable rally . Gonzalez bring in liz an saunders and hugh johnson. I got to tell you, i feel like this is a hall of fame edition of one of these segments because you guys and i have been on air so many times over the years going you all the way back to the early days, probably togeth together welcome to both of you it seems like you disagree based on the notes that i have hugh, you seem more cautious, though you still believe that the market has room to run and liz, you are a little more optimistic so hugh, ill let you go first and explain your stance on where the market stands now and why. Yeah, my caution is primarily driven by my concerns about valuation. When i try to make the case for a higher stock price, when i look at what i think lies ahead for Interest Rates and earnings for 2020, it is very hard for me to make the case in fact i come out with the market being pricier over valued and the up side potential not being that good. So i think that the way that you get higher prices is what we are seeing, what is known as a melt up or we move from the socalled investment stage to a more speculative stage, move from something that is very reaction rational to something that is less than rational. Ction rational to something that is less than rational and so i think that we are moving into that sort of speculative stage. And you know, when we do that, the important thing is the one thing that has been missing from this bull far get has market is optimism and i think that we will see a rise in optimism but we have up side before that occurs but i think probably later 2020, well start to see that. And react to what hugh just said and run it through your lens and filter, that begins with the concept that all news right now to the market is good news well, that is just simply momentum driven market that is not me saying i think all news is good news. I actually agree from a sentiment perspective i think that is where you want to be a bit cautious never visible to be contrarian just to be a contrarian. Because when sentiment gets overly optimistic which i think it already is, i think attitudinal measures are more mixed. But tracking what investors are doing, i think that we are looking at extreme levels of optimism the problem that brings is that the market becomes more vulnerable given that you have developed sort of a onesided trade on the long side if and when you get some sort of negative catalyst. And i dont see anything imminent, but i think that the earnings story and profit margin story could represent that as well as weve learned things can come out of the blue geopolitically as well so i just think that it is something that we have to be mindful of because sentiment has now shifted to the all news is good news nothing to see here mentality. And we talk about the unstoppable rally which we have been talking about and almost everything goes up perhaps it is because of Short Covering but either way, if you are bullish and you are long in your portfolio, can you really lose here or do you need to be careful about how you are adding to your positions from here if there could be some pull backs to come . I dont think that well, pull backs well have along the way and they will be unexpected events that will cause a pull back but what worry piece or what should worry every investor is the end of the bull market remember, this is the longest bull market in history and we should worry about the start of a bear market. So again, i dont think that this is going to happen anytime real soon, but were talking again maybe Third Quarter of 2020 but we could have a move we could have the end of this cycle. And what you want to do under those conditions, look, stay fairly fully invested, in other words, dont cut back your exposure to stocks, but put a little defense into the portfolio so stocks that pay dividends really work well in a bear market, nothing wrong with putting those stocks in your portfolio and of course value stocks and Consumer Staples and you ti utilities are two sectors that do well. But stay with things right now so liz ann, what should i do . Ive been talking to a couple guys who run accounts of mine and i said lets look at rebalancing. Is more dynamic and more frequent rehe balancing wh is more dynamic and more frequent rehe balancing wrebalai should do . That has been our message over the last couple years which i think is generally the right thing to keep in mind. But certainly as the market swings give you an opportunity to he rebalane re rebalance reflectly. You and i have talked about this, rebalancing is often something that investors dont want to hear about especially on Financial Division because it is not sexy but it allows your portfolio to tell you when it is time do something. You dont have to worry about which talking head has the right short term market call and it forces us to buy low sell higher or or add low trim high and so i think rebalancing is a brilliant strategy in general. But maybe even a more important one later in the cycle all right, sometimes boring is better than sexy. Liz ann, hugh johnson, thank you. Well go to washington now and the Senate Chamber john roberts beginning the swearing in of the impeachment trial. Chief justice will be sworn in senator, i attend the senate in con formity with your notice for the purpose of joining with you for the trial of the president of United States im now prepared to take the oath will you place your left hand on the bible and raise your right hand do you solemnly swear that in all things pertaining to the trial of the impeachment op pref the United States now pending you will do impartial justice according to the constitution and the laws so help you god i do. God bless you. Thank you and there john roberts sworn in, the chief justice to preside over the trial he will now as i understand it swear in the members of the senate who will then pledge to do impartial justice as he just pledged do under oath. Ylan mui is standing by. Reporter thats right. Chief Justice Roberts will swear in all of the senator, he will ask them to take an oath and in that oath are those two crucial word, he will ask them to do impartial justice in the impeachment trial of President Trump. There are only 99 senators who are sitting in the floor today, one senator inhofe who is home with family for a medical emergency but will be part of thprdis next once the senate reconvenes. We expect this process to take about 20 minutes or so once the senators have taken their oath, they will then actually have to walk up to the front of the well and sign an oath book, write their names down and only then can they actually sit as jurors in this trial. Now, after that happen, there is expected to be a little bmore housekeeping but the trial wont begin until next week when the senate will have to decide on the framework for the proceedings going forward. We know there wont being witnessbe witnesses in the first part, but definitely an open question of whether we might hear from witnesses later. In the first pat definitely an open question of whether we might hear from witnesses later. Moderate democrats and also . Conservatives are privately pushing that republicans want to hear from witnesses. And that could extend this trial well this into next month. Back in to you thank you very much and in other business, the senate approving the u. S. mexico canada trade agreement earlier today. And lets go to Kayla Tausche those details. And that vote was taken making just before the articles of impeachment were delivered and now it is one step closer to becoming a treaty. The deal passed 8910 in a senate with a four vote republican majority. A white house official says the details are under discussion for later this month to take place during the impeachment trial and another evident by 1600 pennsylvania to establish a split screen of policy progress very similar to what happened during the china deal signing yesterday. With that deal, now public scrutiny has turned to the 88 pages that detail the specific products china will be buying to reduce the trade deficit, they range in book binding machines to vacuum cleaners, krus day shans and even per fuchl and they can meet the commitments by soviet style trade where they promise a certain dollar or physical volume of services regardless of market prices or demand conditions and some allies slamming the policy saying managed trade not in line with multilateral northerns amst good for the economy either. What an interesting week for trade. Thank you for being there 37. And coming up, no one wanted a tv or new phone for the holidays the surprising losers and wirns of the shopping season and grubhub is surging despite saying it is not for sale. But an analyst says it is only a matter of time that is next our Retirement Plan with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo well planned, well invested, well protected. Voya. Be confident to and through retirement. sensethe lack of control when iover my businessai, made me a little intense. But now quickbooks helps me get paid, manage cash flow, and run payroll. And now im back on top. With koala kai. vo save over 40 hours a month with intuit quickbooks. Shares of grubhub have made a huge comeback. The ceo blamed promiscuous diners for slowing growth. But he may have had a point. Most people dont care who delivers their food as long as it gets there and it is hot and fast and correct frank holland. He is on this rapi piidly chang business. And it is expected to turn into a 460 billion business a 31 increase and were getting a first look on how the first biggest players in the industry finished off 2019 doordash by 143 year over year and capturing 33 of the market just passing grubhub that had 43 in the market. It is due to the proceed miss could y promiscuous dirns that you were talking about. More than a quarter of uber eats customers did the same thing and overall the industry is growing with overall sales increasing by double digits. But the growth of spending on individual orders has declined steadily as well food boss think that expedia could have a big impact. It allows a customer to choose a service on price and convenience. Another key factor is what i like to call pizza penetration 50 of delivery orders are still pizza. And many are mom and pop stores. And so easy when you think about takeout, pizza is number one for me easy to share, travels well makes a lot of sense. Despite denying rumors of a possible sale, grubhub remains hot. And can the Delivery Company keep navigating all the bumps in the road and some of the things that we talked about here . So joining us now is daniel chronos at benchmark thank you for being here with us i think that this is an interesting business for me in new york city, i just go to seamless which is owned by grubhub and then i choose my restaurant from there. But are other consumers doing it dic differently to win that delivery sale i think that restaurant do every absolutely is a big portion of the equation. Part of the reason doordash has been so successful is a they aggressively rolled out markets without even bothering to partner with the restaurants and so you effective live had what amounted to be a pretty terrible experience but at least you could find every restaurant you were looking for a and weve seen other people be successful with a more partnered strategy. For a and weve seen other people be successful with a more partnered strategy and now grubhub getting more into grub delivered but with the partnership that they have with the restaurant, that is really their bread and butter and i think that as consumers are starting to adapt to the fees that they are starting to see, well see how the landscape evolves. But yes, restaurant discovery is a big driver and grubhub has been profitable for the first three quarters in company denying th they are actively involved in a sale process but you think that it will happen anyway. Tell us why. This space is ripe for consolidation. I think that even knows that there is a whole bunch of sub scale pray pllayers that need te consolidated i would say that the company has been pretty out there saying look, if somebody comes with a great offer, well entertain it, but youve got doordash losing rough live ly 2 per order ebita and grub dab stihub making 2 ar so they to show a path o the sc. I think there is plenty of room for three. And is the driver of that, that this is fundamentally a came m commoditized business, but some differentiators . You cite the idea of the partnership between grubhub and the restaurants, but basic lip a commoditized business . It can be at his most basic form. Lip a commoditized business . It can be at his most basic form one reason that attracted us to grubhub was the technology advantage. I think that you really do have to differentiate yourself and with your partners you need to be able to provide value to the restaurants in order to have sort of a long relationship you know, another big differentiator is the fact that only 10 to 15 come from qsr. Where doordash has maybe 50 coming from a 10 takeout at wendys on a subscription mold. I dont know how you make money there. So yes, great for the consumer theoretically up front in order for the restaurant to make money, you need to find a happy medium and prove that you can make money and you talked about how grubhub is making money and has been profitable while some of the other players are losing a dollar or more per order what are they doing right that maybe over Delivery Services should or could repeat i would argue that grubhub is clearly taking an investment toll everybody thought that their ebitda would be a lot higher in 2020 than it was and they said look, well go after growth and market share we got to make a bunch of investments to be, you know, forward facing with our operations, build out market, build out these nonpartnered agreement, billed out the loyalty and Perks Program and i think that it is kind of the two way relationship ive heard arguments that the economics arent sustainable on the commission front you know, i think that you have to view it as an advertising business i think that you have especially in new york, you are spoiled for choice you can go to any restaurant and everything is open all hours of the day. So how will you choose if you are a restaurant, i think that you look at that optionality, you say okay, if i want more orders at, i dont know, 12 00 at night, maybe it behooves me to partner with grubhub and try to get more orders during this particular season or i know a taco shop down the street opened undp and i want t maintain my client list. And so i think that partnership will play a part in that side of the equation and on the consumer side, a lot will be about fees, a lot will be about free delivery, how sustainable is that and those questions i think really just havent been answered yet because frankly doordash and uber havent had to answer them. Very quickly, i know you have a buy rating because 42 price target and we are at 56. Recgys recommendation from here we are evaluating everything and id say we continue to be constructive it feels like maybe they will be acquired by an uber or maybe not. As a stand alone, i think that they can take back share with the path that they are on now. But as even overreacted originally and the stock went down do 33 and we were constructive then, there is nothing other than this premium back into the stock that would change our opinion about being constructive about grub. All right prp d daniel, thank you very much. And we will dlifrn the tawie tasting menu earl today. Stay with us stay with us fr so when a hailstorm a reached out stay with us fr stay with us thats how you do it right. Usaa insurance is made just the way martins family needs it with hasslefree claims, he got paid before his neighbor even got started. Because doing right by our members, thats whats right. Usaa. What youre made of, were made for. Usaa but in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. 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