this in first nation primary underway. so is "making money." we have a big show for you. ♪ charles: major indices are higher. they're dealing with individual issues today. a big per tick you are investors group pelling with, what to buy, major industries are at or near all-time highs. i want to bring in divine capital ceo's danny hughes, and entrepreneur shares founder, cio, joel shulman. it is tough. not just the tech names. we know tech has taken off but the real estate sector is at an all-time high. it is up 6% this year. utilities up 7% this year. these are defense areas. if they go up 7% a year this is pretty lucky. if i'm in the market, i want to get in right now, where the hell do i go? >> numbers are up huge, right? i've been looking at energy, that is a sector that has been beat down hard. a big, big reason is because of china and coronavirus. china is one of the biggest buyers -- charles: for a while though. >> at least the last year or so a lot has to do with the u.s. out put and fracking, things like that brought prices down globally. however i do think there are really great places in the energy sector. the old fossil fuel side as well as clean energy as well. charles: football, they call that a hail mary. [laughter] >> in investing they call it long term. charles: excuse me. joel, you're rocking. you have five funds. you're looking at one chucked with the amazons and apples of the world. facebook got a downgrade to sell today. that put pressure on these names. >> right. charles: obviously at some point any stock that can go up 20, 40 points a day like amazon has last couple days, could be vulnerable for those kind of moves. >> right. charles: what do you tell someone into the market right now that wants to chase amazon? >> we think, for example, our tech names, our fund is overall up 10% year-to-date. the s&p is down about, is up about 2/3 of that. our tech names in the space, large cap tech are up 13 1/2%. facebook is the only one underperforming that level. so large cap tech is very strong right now. we think things will continue to through 2020. particularly if the political scene continues as it has the last few weeks for the democrats. what we think is a real sweet spot for investors right now is u.s. small cap. in particular non-u.s. small cap. our non-u.s. small caps are up 1 1/2% today. we think, this is undervalued area. so the small caps have not yet hit record highs. they are still 10% below 2018. we think there is room to one and the non-u.s. -- charles: they call that in football? the second hail mary. take the russell for instance, russell 2000. it has been horrible. it has been a massive disappointment. the thing is, a lot of investors, almost every year, i'm not trying to diss anyone. wall street pros come in, in january they like financials, they like emerging growth and small cap. as the year goes on, those things don't work out, you don't hear about them that much. >> we think small caps are up 6, 7%. this is the market where there's a lot of m&a activity. the interest rates are very low. last year we saw 3 to 5 trillion in total m&a activity in terms of deals and so forth. charles: right. >> so a lot of this is going for acquisitions and in these small cap names. we had yesterday a name pop 45%. we're seeing a lot of this activity. we think there is extra play for investors in small cap. charles: dani, broken down names, reversal because of coronavirus, wynn casinos up today, caterpillar up today, marriott is up today. boeing to me is a wild card because a lot of people have to be intrigued by this. 9 trillion-dollar market they share with airbus. they announced they had zero, sear orders for january. airbus, 274. the stock make as 7 point reversal to the downside. brings the dow wit. is there any point you think about buying boeing? >> for me no, not right now. i think boeing really has to get its wings straightened out. i don't know where the analogies are coming from. airbus has been pulling ahead of them. from industrial standpoint, when you're looking globally what is happening i think those will be the most volatile names especially we still don't have a real handle what is going on with china and economy. >> hold on for one second. i have another potential game-changer. just momentsing a the federal trade commission announced they are examining past acquisition by the big tech names. susan li on the floor of new york stock exchange with more. susan. susan: i got of the phone with the ftc, talking to journalists why they are issues notices to five big tech firms, the five big ones, facebook, amazon, alphabet, microsoft and apple as well. looking at past transactions from 2010 to 201019. and smaller acquisition ranging from $90 million, ranging to $360 million, compliant with the hfr ruse as the ftc calls it. they're looking into what they call anti-competitive acquisitions. initially starting off the call that this is information gathering for research purposes. as the call went on, questions came in, yes the previous transactions could be subject to enforcement and some of these deals could be unwound. the number of deals they're looking at number in the hundreds. also looking at data being stored and used by some big tech companies and covers both horizontal and vert al mergers as well. this to remind you, these are smaller transactions. not talking about the 19 billion-dollar whatsapp transactions or billion dollar smaller ones. some are looking at whether or not these tech companies are stamping out competition by buying up the smaller tech firms and possibly killing off some of their business as well. i asked the ftc specifically on this call, will you be sharing any information with the state attorney generals with antitrust investigation going, also with the department of justice? they said, well, actually there are rules in departments sharing information but if enforcement actions are taken, and it opens up a couple pull sorry process that would possibly expand information sharing with the state ag cases and it is very complicated charles, but looks like big tech is in the focus of government regulatory bodies. >> susan, thank you very much. i want to bring back danny hughes and joel shulman. you mentioned politics, the markets are higher as democrats appear to be in disarray. this sounds like elizabeth warren stuff and bernie sanders stuff. >> yeah. charles: the ftc looking at the smaller deals. if the overarching narrative by both political parties that the big names are engaging in anti-commit tiff behavior what does that do for the markets because all the stocks are down and flat except for amazon? >> not a good sign for the market. not that the ftc will listen to me, life them alone. we have 24 million jobs in the s&p 500. almost all the jobs growth is 20 or 30 entrepreneurial companies like facebooks and googles. amazon a few years ago had couple hundred thousand people, now they're 7 or 800,000. they are creating jobs. they're growing employees. they're not reducing it. most other companies reduce the employee base. >> these are companies that are global. they are bigger than many, many governments around the world, let's face it and it is not that the united states wants to protect other governments necessarily from companies that are growing here but when you think about how large these companies have grown, how much power they have, this is not something that is new. microsoft was doing the stuff in 1990s. these guys are looking back from 2010 to 2019 at deals that were done. what i'm interested in seeing is, how will they reverse some of these? how do you unscramble the egg? charles: that is slippery slope. you start to unwind these things and pull them apart, again susan says they are going up 350, 390 million-dollar deals whatever, it opens up the door to potentially large -- are you okay with this? or are you torn there is anti-competitive behavior? but to joel's point they are driving everything in this world. >> they are driving especially the stock market. look at the fact that, it is not just that competition is crushed. also innovation. one of the things back in the '90s that was a big deal, battery makers, the ones you used to throw out would buy companies making reusable energy and put them out of business. microsoft did this with a few other software players as well way back when. this is something of concern. i think it should be of concern. charles: joel disagrees with you. >> 100%. they are absolutely not eliminating innovation. these companies are spending more on r&d then all the other companies in the s&p combined. these companies are pouring r&d dollars back in. they are growing r&d budgets by 20, 30%. they're acquiring other companies and growing base in terms of employees. they're spending money, billions of dollars per year, increasing 10, 20, 30% in r&d budgets per year driving innovation. when you think about uber, think about amazon, facebook, these companies are ones creating innovation in this economy. so they're not hurting it. they're helping it. >> it is their own innovation though. their own brand of innovation so they can crush other innovation. i'm not saying amazon purchasing diapers.com will put all diaper makers out of business. but creates a way of them thinking about companies. charles: beyond this, what else would have you worried about the market overall, particularly political point of view. >> the market in general? charles: the election? actions by either government agencies, what is your biggest concern vis-a-vis happening in the world of politics because the rules could change if the democrats take over? >> the rules could change. many things could happen if the rules could change. the fed is driving this market. it is not just the fed but all global central banks driving the market. keeping liquidity in. charles: no sign they will change. >> we're not looking at trillions of dollars of deficit behind some curtain in the back they don't want you to look at right now. we're not looking at it right now. we like innovation and like the economy. charles: we like making money. >> we like making money, yeah. >> 15 years ago the former president of chrysler daimler wrote a book about growing bigger by growing smaller. bigger companies would get bigger over time with access to cheap capital. they have access to the best minds the planet could provide. what happened, we discovered the average age of companies is 54 years. they got big, got old and they died. little companies came in to beat them at their own gain. innovation isn't slowed down by companies getting bigger and stronger. charles: from shumpeter, innovation will take place, whether it was sears, walmart and now amazon. we'll see. that was a great conversation. dani, joel, thank you very much. coming up at 2:30 i have the pleasure to speak with senator tim scott. he will explain why president trump's new way to fight poverty will work. moroccan certificate than rally. bernie sanders bringing down the house, drawing a huge crowd in new hampshire before the primary vote. guess what? so did president trump last night. are we looking at two candidates for the 2020 general election? that's next. >> we have more than this outside of the arena trying to get in. 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i don't think in a general election he could win. he could steal the democratic primary, not steal or win. as for bloomberg, ethan brought up, those audiotapes that leaked today will really affect his campaign. i don't know how he recovers from that. charles: i will bring that up. bring up the other b for a moment. coming out of iowa, get unity, two candidates. this has been in a lot of disarray, ethan. a lot of attacking. mayor pete is under fire particularly from his donors. this is at his own rally by the way. listen to the criticism. >> wall street pete. >> we are for honoring our troops by putting an end to endless war. charles: in case you didn't hear it, ethan, he was yelling over his own rally crowd calling him wall street pete. you know, he has got a spark but a lot of folks are saying, it may even be fading already in new hampshire? >> mayor pete has a very bright future in politics, there is no question about that. i just honestly don't believe this is his year to win it. he put his name on the national stage. he is growing that base often with the case of a young politician like him without a national presence. this is his year to build it. it is not his year to win it though. the progress sieve wing doesn't like wall street. they want to get rid of this. that will be the challenge of the party to come together at the convention, to get behind a single candidate to beat trump. charles: let me bring up what stephanie talked about. looking at twitter. #bloomberg is racist is the number one hashtag all day long, ethan. he knew this would happen that is why he apologized beforehand. he has gone privately to many black churches. many believe the biden camp put this out today. but he is picking up momentum. does it hurt him? >> i think temporary blip. mike bloomberg will help all-americans of color. this is attacks that happen during a campaign. to your point, that is why he apologized. he apologized it is not right to single out a community. that policy may have been effective in some ways but it disadvantaged people of color in new york city and that's not right. he came out and apologized. it will be a temporary blip. he has the strength to pull this out. charles: stephanie, you don't think he can recover from it? >> i don't think so, if the media gives him a pass on this, that is sickening. it is -- >> sickening? >> you can have a opinion on stop-and-frisk and look at numbers see in some areas dramatically reduced the amount of murders happening in crime. okay. then bloomberg changed his stance on stop-and-frisk. he apologized for it. but the audiotapes are absolutely racist. talking about throwing minority kidded up against a wall and other really terrible things i don't think you can apologize for. no republican would be given a pass on this nor should anyone. charles: trump would be given a pass. >> absolutely not. >> love when you guys come on. thank you very much. stick with fox business throughout the day and for tonight's special coverage starting at 8:00 p.m. eastern. always hosted by our very own neil cavuto. coming up later in the hour, mass racist. pc madness covering up bigotry of low expectations. wait until you hear this one. this is national make a friend day. loneliness epidemic spreads across the nation. here is the question, are more friends the answer? the economy is on fire but could the fed upend our momentum? that's next. charles: federal reserve chair jerome powell telling financial services committee what i've been saying for months, that this economy is on fire. it is still growing. the strong labor market continues to offer opportunity for low, middle income communities. edward lawrence joins us live from capitol hill with a full recap. it was a lot of political questions, huh, edward? reporter: a lot of political questions. to your point the economy is bringing in folks on the edges of this economic expansion into the labor force. that is a good thing he says. he sees the economic expansion continuing, he says. consumer spending will drive this economy is to 20. we may see some pickup in business investment. the reason for that is uncertainty. some uncertainty is cleared up. we have phase one trade deal with china going into effect on friday. usmca will be get ready to get implemented over the summer. also brexit happened. the uk did not fall off of a financial cliff but again he testified, there are some risks forming, listen. >> we find the u.s. economy in a very good place, performing well. we see, signs of global growth bottoming out. we see reduced trade policy uncertainty. overall the background. we see strong job creation, moderate growth, all of this happens in the context of a good, strong, u.s. economy. into that picture comes the coronavirus. reporter: he says right now there is a minimal impact to the u.s. economy from the coronavirus. a bigger impact in china. those disruptions he warns, could spill over into the global economy. it is something that the federal reserve is watching closely. also on the coronavirus, he is looking to see how it spreads, to see if they can continue this. the also federal reserve chairman jerome powell saying that the most important risk to economic stability going forward is cyberattacks. the new york fed simulated a attack on a bank, one bank. he found it would seep into 38% of the banking system. powell says you never really have a sense of comfort related to, if you have enough cybersecurity going forward. he urges banks to spend more money on that. back to you. charles: all right. famous last words. edward, thank you very much. appreciate it. later in the show, why small business owners are feeling bullish about 2020. first the man who made opportunity zones reality. explains why president trump's new way to fight poverty will work. south carolina senator tim scott is my next guest. at fidelity, online u.s. stocks and etfs are commission-free. and when you open a new brokerage