good morning, it is 11:00 a.m. at gm headquarters in detroit, michigan, 11:00 a.m. here on wall street. "squawk alley" is live ♪ good friday morning. welcome to "squawk alley." with me, morgan brennan and david faber.

taking a look at the markets, the dow is down triple digits. stocks on pace for the third straight positive week, first time since august last year. this as tech feels pressure with most of the faang names down netflix bucking the trend, up more than 20% to start the year, up 4% today. a different story for apple. the company plans to launch three iphones in 2019, not a surprise, they did that in 2018, despite chinese retailers slashing prices there where phones tend to sell for more consumers saying the phones aren't worth the cost. a lot of market headlines to digest bring in larry haggerty, managing partner at ljh investments advisers, and bruce b bittles. good morning happy friday larry, we're starting to get into the back half of january, earnings eason whether you're looking at the

read on some retailers which yesterday didn't look so hot, particularly at macy's, even names like apple which looked strong heading into q4 have tailedoff, what are you expecting? >> i think, jon, with regard to apple, you have a push, pull whether it is a hardware or software and services company. at any one point, one of the pushes or pulse is in the ascendancy i think the next three weeks, folks that think apple is a hardware company and news is not terribly good. the problem in china is a substantive one. the main thing that's underemphasized, for the chinese, important thing is the game platform. we chat controls that, and we chat is agnostic on the device it is on why pay 3 x for apple versus 1 x

for the android. china will be a problem until they build software. go back to the united states i think the news is pretty good there. with master card numbers, there's room for nonstore retailers to do good or very well, i think apple is the classic nonstore retailer, particularly in the software and services area. so i'm looking for much better performance once apple reports, but before then i think it's dead money at this point. >> bruce, we're on day 21 of the government shutdown, entering uncharted territory. whether you look at the consumer which might begin to be effected if this drags on or at companies that do business with the government, what do you expect the impact of that and other external factors to be on earnings >> well, so far there's been no impact on the markets. markets are sharply higher since the shutdown began

i think it is mostly noise there. i think the most important factor for the stock market now is the debate between china and the u.s. over trade negotiations i think that's the important focus. i don't think the government shutdown will influence the markets much >> larry, do you think apple is a good gauge of what's happening in china more broadly now? >> i think to some extent it is, to some extent it isn't. i think the thing slowing down in china is the game business. you look at a big game producer like net ease and the stock is weak the chinese consumer is game oriented i look at other signs of china, particularly business and macaw, and business is terrific i expect it to be good through chinese new year, first week in

february there's a little bit of a slowdown i don't think it is too terribly much but the industrial part of china seems to be slowing fairly significantly. the chinese government is moving people from villages to cities to make the economy grow there's probably more pressure on the chinese for a trade deal than on the government, and i think at the end of the day our government, that at the end of the day both parties will come to reason and we can live happily ever after i think the economics are very good on both sides, the economics of the consumer in the united states are pretty good, the economics in china particularly in the southern region which used to be hong kong, property values are growing again. i think it is going to have a happy ending

>> bruce, i'm curious what happened in the second half of q4 globally. apple was talking about seeing this down trend in china and second half of the holiday season macy's talking about seeing things tail off for them, heading into christmas which to me is weird. used to be that a player like macy's would do better because they worried about e-commerce shipments arriving on time how much will we see from other retailers to understand who is winning at the holidays, how big a role do you expect it to play? >> i think there's been a shift in investor psychology over the course of the past six or seven months to go back to second quarter, gdp was 4.5%, earnings booming, and optimism is high then it began to fade for third quarter as markets saw the

economy slowing down perhaps in part due to the slowdown in the global economy, and by the time it got to fourth quarter, then turned almost panic about a recession with the federal reserve board raising interest rates into a slowing economy, and that's i think caused that december plunge in the stock market now we're starting to see just the reverse. the fed also panicked in a fashion, but they quickly backed up and said the fed would exert more patience. that was immediately translated to mean pause. we think they will pause in the first half of the year then of course we have strong labor report in january for december that took away a lot of fears of recession. i think where we stand now is there's going to be considerable challenges in the first part of the year earnings visibility is a problem. you certainly don't know how the

trade negotiations are going to work out with china. so the forecast has been that although we think most damage in the market has been done, we're probably going through a phase that may last several months and that will be followed by a second half recovery that could be substantial in terms of stock prices. >> specific to stock prices, apart from apple, tell me a little about activision and what your thoughts are given the stock is down. ea an act vision have lost so much market cap in the last six months. >> the thing, david, last year they decided there wouldn't be e 3 any more, videogame convention that told you that innovation in the videogame industry slowed to a crawl. activision relied on big

franchises destiny went from significant cash flow to nothing and i don't think many anticipated this you had an unexpected situation in an industry where innovation wasslowing down and multiples were very high game companies sell as roughly twice the multiple of apple. kind of look at activision and ea as the roadrunner, and then the coyote is off the cliff and he is like oh my god, i'm off the cliff. i think it is a dangerous industry for people near term. >> even from here you think? >> yeah. >> all right things will be interesting in that and other tech areas. larry, bruce, thanks for being with us. coming up, shares of gm surging after raising guidance shares are up 8% ceo mary barra joins phil lebea

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strong, that's why we think we have a marked in the low 17s which is a very slow market. >> struggling stock prices and concerns about strength of the consumer is something that impacted the auto and airline sector, sending shares of many of those names lower joining us to discuss, former continental airlines chairman and phil lebeau. shares of gm are up 8% on the news you covered a lot of material. what do you think are the biggest headlines? >> the biggest one, the reason the stock is moving is because they've taken away a lot of concerns the consumer is slowing down china is slowing down as a market, only down 3% in the last year the question is what do they expect this year gm expects the china auto market to sell 27 million vehicles this year, roughly flat between 2019 and 2018 that's the big take away the fact that general motors is saying we're optimistic about

the consumer overall it takes away hand ringing that gord gordon will talk about that maybe the consumers are pulling back a bit. >> the news that cadillac will be part of that push move for gm, are they behind the ball on this, when you look at a competitor like tesla? >> they're behind the ball in terms of getting people excited on the higher end with electric vehicles they came out with the volt. they'll say we get great consumer satisfaction. you came out with the volt, you're discontinuing it, because it has done nothing. came out with the bolt, all electric, as opposed to the volt you said this would be a vehicle for the mass market. fact of the matter is sales have been okay, nothing great nothing outstanding that makes you get really excited meantime, if you look at what happened with the model 3, clearly there's a market there there's excitement for electric vehicles on a certain level, and tesla tapped into that

see if gm can do the same with an all electric cadillac >> i guess it showcases how hard it is that elon musk hasn't pulled it off. >> gordon, considering what we heard from gm, what's the read through to the airline industry, do you think >> i think not a rapid growth, maybe slower than the first quarter or last quarter of last year, but they're solid. the demand is still there, they will adjust capacity if there is change in demand i think the earnings outlook is fairly stable. >> this is after we heard from american yesterday, delta last week we can see stocks are all down today, gordon. you're not concerned >> every time the needle moves 2, 3%, day traders may be concerned. guys in the fundamentals running the airlines will adjust to what

developments occur, i see demand strong enough to where capacity they have out there is not excessive. i think they can manage it >> phil, you look like you're nodding your head now. >> i am. i am curious i heard this discussion the last couple days. gordon, i would love to get your thoughts have we seen the best for airline stocks, say the last two, three years are we looking at stocks that will be range bound from here? where is the next level of growth they can manage capacity, but if you've got strong corporate demand in travel and the consumer is strong and yet we're not getting excitement from investors, where's the next leg of growth? >> well, it has to be in savings of expense side of the ledger which they continue to make progress they learn to live with $100 oil, now they enjoy $40 oil. growth is really going to be in reducing costs, keeping revenue

stable i don't think it will be amazing growth, but it will be stable. >> i want to bring it back to gm a moment i was seeing gm's president said that they might not eliminate the cadillac ct 6, despite that they're idling the plant that makes it what does that mean? does that mean they'll make it outside the country? >> no, they won't make it outside the country, they'll make it in the u.s they'll figure out a place to make it. cadillac is a brand despite great name recognition, what has it done? what has it done in the last 5, 7, 8 years i think general motors believes you have to tap into that. make it the brand we push electric vehicles first? that makes sense, especially with the other automakers that roll out a wave of electric vehicles the next several years. they've got to do something to kick start excitement in the cadillac brand it is clearly not there.

the plant may be going away, they'll figure out a platform they can build it. general motors has capacity out there, just by closing out plants. >> next week we start to get earnings from airlines gordon, what's the key thing you're looking for. >> what? >> the key factor you're looking at from airlines next week >> earnings are the end result, it is capacity matching slightly lower demand that's because of the uncertainty in a lot of our lives of government and china and bigger market. they need to continue to manage capacity to whatever demand is, and i think that will be the up side if they do it well. >> gentlemen, thank you for a great discussion on industrial demand as we move into earnings season gordon bethune and phil lebeau three key usda reports

critical to farmers, planning decisions have been delayed as the government shutdown rolls on day 21 aditi roy is in california with more on how the shutdown is impacting the farming industry aditi? >> reporter: that's right. we are at monday at that vista farming, they grow and process almonds. they say they have extra inventory as a result of chinese tariffs, and across the country farmers are effected by the government shutdown. one impact is delay of important usda crop reports. three crop reports were supposed to come out today but the shutdown delayed them. one is quarterly grain stocks report, shows demand for corn, wheat, soybeans. what's notable is they're not guesstimates, show actual beginning and ending stocks. and january crop production. that's how much crop was

produced last year which helps set prices finally, world agricultural supply and demand estimate was also delayed information is critical for soybean farmers and traders. without that hard government data, one trader says they're flying blind farmers use that information for important planting decisions, especially for swing acres another impact of the government shutdown, aid payments to farmers effected by tariffs have been delayed, and farm service agency offices are closed around the country. since they clear aid and government loan checks, farmers that receive them can't cash them until the shutdown ends here, the owner tells me between delay of trade aid payments as well as closure of the fsa offices, it is a one, two punch. and by the way, want to mention that president trump is scheduled to address farmers at the farm bureau convention monday >> i was going to say, it will

be one to watch, especially in a week china begins to import soybeans again, albeit at modest levels the trade piece of this and then with europe will be key to watch with these agricultural commodities. aditi roy, thank you for joining us with a look at the shutdown impact guys, before we go to break, i want to note if president trump declares a national emergency to start getting a wall built, there's a lot of really interesting analysis about what it would look like, whether they spend from military to do that department of defense said they have two to three billion dollars in obligated construction funds, also could be another 700 million in available funds, but all of this is tied to statutes that potentially enable the military to divert the money, but are expected to be challenged in court if the president moves forward with this. i have a feeling in day 21 of

the shutdown, we'll have a bigger and bigger conversation, probably more and more headlines out of the dod about what it could potentially look like. >> as i understand it, the controversy not so much around where the funds would come from, more over whether the declaration of an emergency would stand in the courts. >> absolutely. >> yeah, they'll find the money if that holds up, morgan thanks. when we return, qualcomm ceo expected to take the stand this afternoon in san jose, not exactly about apple. a live report of why from the courthouse next. and first, the worst performing stocks in the dow in today's session. dow, dupont, microsoft, wag greens boots down. more "squawk alley" coming up. to buy or sell? te with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time.

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mollenkopf scheduled to testify in a few hours to the federal

trade commission we are outside the courthouse with more on the case, what to expect from his testimony today. josh >> reporter: jon, that's right f steve mollenkopf is scheduled to take the stand here at the courthouse behind me it gets to the heart of the qualcomm business model. the u.s. federal trade commission says the company maintains a monopoly over a key type of chip used in cell phones by using anti-competitive tactics. they say qualcomm only supplies the chips to manufacturers if the manufacturers agree to license patents through qualcomm on its preferred terms regulators say that forces companies to pay too much for the patents and violates competition law. why should investors pay attention? analysts say the ftc is really taking direct aim at qualcomm's bread and butter, its patent

licensing business which accounts for more than 50% of its operating income qualcomm denies any and all wrongdoing here, saying the complaint is based on a flawed legal theory, a lack of economic support, and significant misconceptions about the mobile technology industry. of course, it is not just the ftc, qualcomm is also in a big fight with apple tim cook was on cnbc just this week ripping into qualcomm take a listen. >> the issue that we have with qualcomm is that they have a policy of no license, no chips this is in our view illegal and so many regulators in many different countries agree with us >> reporter: qualcomm fired right back, called cook's comments to cnbc misleading and inappropriate. we expect steve mollenkopf to take the stand in a few hours. we'll bring you comments as soon as we get them guys, back to you.

>> josh lipton, thank you. european markets are closing. dom chu joins us with a look at today's action >> morgan, as we watch the european markets close slightly lower after spending half the session pretty much in positive territory, investors are keeping a close eye on trade talks between the u.s. and china brexit is also in focus. front and center uk foreign minister warned parliament's reluctance to accept no deal brexit increased the possibility of brexit not happening at all comments are getting some attention. all the while, gross domestic product figures showed the slow down ended in november, led by sharper declines in manufacturing. british government said auto production fell 4.3% last year over thesame period. and look at auto related stocks in europe, under pressure across the continent. michelin, continental, daimler,

valeo, and renault saying carlos ghosn was indicted in new charges in japan still watching that drama play out closely. jon, back to you >> thank you, dominic chu. let's get to sue herera for a news update. thank you. here's what's happening. as dom reported, tokyo public prosecutors indicting nissan former chairman on charges of aggravated breach of trust and violating financial law, underreporting his compensation. makes his release from prison unlikely for months to come. thailand immigration police chief says a saudi woman that fled abuse from her family will leave bangkok for canada the 18-year-old will board a flight for canada later this evening.

a california police officer shot thursday evening responding to a traffic accident has died 22-year-old natalie corona was only on the job a few weeks. the body of the shooting suspect was found with what appears to be a self inflicted gunshot wound. spacex successfully launching the first mission of the year eighth and final series of missions to carry 75 communication satellites into space. the falcon 9 first stage rocket booster landed on a drone ship in the pacific very cool. you're up to date. that's the news update this hour back downtown to you guys, morgan >> thanks, sue the 33rd time they successfully land landed one of those. it is amazing, meridian is up as spacex put this constellation into orbit pretty awesome

after the break, earnings season begins with major banks kicking things off expectations have been lower, out have they been lowered we'll discuss next "squawk alley" continues after a quick break. rts at rootmetrics say is number one in the nation? sure, they probably know what they're talking about. or the one that j.d. power says is highest in network quality by people who use it every day? this is a tough one. well, not really, because verizon won both. so you don't even have to choose. why didn't you just lead with that? it's like a fun thing. (vo) chosen by experts. chosen by you. get six months apple music on us. it's the unlimited plan you need on the network you deserve. now buy the latest galaxy phones, get galaxy s9 free. a town where almost half the population is self-employed. this is stonington, maine,

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the beginning of earnings season around the corner with major banks set to report early next week. are expectations too high? bob pisani is back with us at

post 9 to answer that question >> getting more real earnings are getting more real that's helping stabilize markets. we went into the fourth quarter with high expectations, earnings growth about 10% that was october 1st that was for 2019. this is on top of 23% that we are seeing in 2018 that's largely on tax cuts the combination of fed concerns, tariffs, slowing china has knocked that 2019 number down to 6.4% i anticipate it will come down another couple points based on early trends in fourth quarter reporting. look at this of 20 companies that reported fourth quarter numbers, 85% are beating numbers. we see it a lot. but 70% of those companies are seeing cuts to the first quarter estimates based on body language from the companies that's higher than normal. i thinkthat's a sign that companies and analysts will keep trimming i expect numbers could go down to 4 or 5% what can help support earnings

we're seeing it. oil prices rebounding is a huge help to oil companies. fed implying slower pace of rate hikes, progress on trade, and stability of china's economy stimulus programs are already in place there. jon, i anticipate 4 or 5% where we end up ultimately at the end of the first quarter, 2019 numbers. and if you think it will be 0% earnings growth, the market is dead in the water. if you're 4 or 5% where a lot of people are, they have 3,000 on the s&p, a lot of people doesn't sound like a lot, 4 or 5% difference, who cares actually where the numbers are for 2019 depends on where you are on that divide. >> mike santoli also with us a lot of iq added to the desk. are expectations set in the right place? >> i think expectations on paper are downgraded enough to where you would think the bar is lower. as bob was saying.

from october 1st, cut four percentage points off expected growth for the coming quarter, right? the market is down more than that you have compressed and multiple i think it creates less sell the news response when the companies miss beat. first quarter expectations don't have a lot of room to go down. first quarter is supposed to be weak of the four i think we're in a decent zone for the market deciding if it wants to look on the bright side i don't think the 10% bounce in market is about earnings people are hopeful earnings come in positive, but it is about reversing that steep oversold condition. >> the overshoot is important. it is important to remind everybody that the market tends to track earnings. seems obvious, people forget that all of the macro stuff feeds into the earnings. it is not like the macro doesn't matter, of course it matters, but it feeds into earnings and is reflected in the market

it is not a coincidence. mike and i talked about this for years. s&p tends to go up 6 to 7% a year since world war ii. earnings go up 6 to 7% a year. that's not a coincidence there's a reason that's why we follow everybody wonders why are we following it microscopically, who cares, 3%. it matters because the market historically will tend to follow the trend. >> 2018 being a rare year, you had massively up earnings and a down market. >> also had tax cuts and remember, it doesn't follow a calendar year. we had a real earnings revision in the fourth quarter. this has happened, it happened in 2015, radically cut earnings estimates, had earnings recession in that year, and the market was down in 2015. >> next week we get earnings season kicking off with the banks. jpmorgan, goldman, sachs, bank of america, morgan stanley

those stocks have been bludgeoned do they signal, what happens with them, does that paint the picture for the broader season in terms of earnings >> i resist the idea that there's a theme we know front end of earnings season this is how stocks react, even within the banks group. you often see jpmorgan comes out, trading was great people try to extrapolate that, citi says we're light on the trading line banks are cheap based on public earnings where the market reacts to that if numbers come through might be a tell on risk appetite, whether we give credit to the companies the rest of the year. >> bob, what can i tell from what i heard so far, apple or whether it be american airlines or macy's, or gm today which posted higher than expected guidance, not top line growth but strong cost cuts >> federal express, micron, that's one of the reasons we're seeing the downward revision

commentary has been more cautious that's seeping through to the market overall that's why we're at 6% instead of 10% the numbers have been consistently coming down by and large, i'm optimistic on markets. i am in the 3,000 camp of the s&p 500. i think there's room for the market to move up. i think there's going to be progress on oil prices rebounding they cut oil estimates, try being an oil analyst or investor, energy hedge fund investor you can't do it. they took numbers to zero for 2019 for most big oil companies. now back to $52 oil. they have to completely revise you can't make earnings estimates for big oil companies any more it doesn't work. none of the models work any more i wouldn't want to be an energy analyst right now. >> we'll see the numbers next week bob, mike, thanks. before the break, look at shares of activision blizzard.

getting crushed. down 10% ocisow40% in the past three months we'll tell you why next.

i am scott walker. here's what's coming up top of the hour strategist tom lee is with us to reveal his 2019 outlook. and a food fight over our call of the day. which restaurant stocks are your best bets this year. and big note on apple from katie

huberty. that stock's next move, we'll do it on the half see you in a bit >> that's the question, scott. we'll see. let's get to the cme rick santelli has the santelli exchange rick >> thanks, jon in order to understand the global funk, we need to see how it all developed i think that's pretty easy in macro terms. the election 2016, for getting politics, look at generalities, the person elected was business friendly that's why the rally ensued long before he was sworn in that hit at a time it was a good catalyst to seed global growth, synchronized global growth that was 2017. 2018, divergence divergence what does that mean for 2019 let me think

what do you think the opposite of divergence would be convergence. but the problem is will it happen in 2019 or will it be later? are we going to converge or have a recession to purge before we converge i don't know the answer to that. but let's follow how it all happened the key ingredients with the global slowing first and foremost, since the u.s. in my opinion led the synchronized growth wave, i think the u.s. also did a little damage to that, but not in a negative way u.s. fed normalization i think that was a key ingredient i think the next key ingredient was global fiscal and monetary policy nonperforming loans in china, too much stimulus, too much debt, eurozone not addressing many reforms they promise, and tax rates, i thought divergence of tax rates for corporations would be an easy fiscal stimulus it doesn't seem as though many

economies outside the u.s. grabbed into that. that's an open chapter yet to be revisited, and i think the third issue, global trade uncertainty. let's take each of those on number one, fed normalization is in reset mode number three, global trade uncertainty will get south, which means the biggest risk now is on-going fiscal and monetary policies outside the u.s., and i think in terms of china, japan, europe, these are tough questions to answer. in the end, in order for the u.s. to grab on again, we need to see stabilization, and that baseline is the catalyst for u.s. resurgence. we have to look outside the borders once again in the early part of 2019 to decipher what u.s. markets may look like at the end of the year. jon, back to you >> rick santelli, thank you. and coming up, two upgrades for netflix, pacing today's

trade. stock's up almost 4% at this hour shares up big, more than 25% since start of the year. a breakdown of today's calls on netflix and why analysts say the stock won't chill anytime soon. and equinox ceo joins us on the health of the consumer, harvey spevak. "squawk alley" continues after a quick break. ♪ [ dog snoring ]

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after a big start to the year for the streaming service, up more than 25% for start of the new year julia boorstin has more. >> reporter: well, wall street is betting that netflix will pay off with subscriber growth it started shooting higher yesterday on a ubs upgrade to buy, saying the global positioning is widening. raymond james upgraded to strong buy, raising price target to $450, saying investments pave the way to profitability he is talking about "bird box" showing they can succeed in film, should aid subscriber growth and yield price increases. morgan stanley upgrading its rating they lowered price target from 475 to $430 as they factor in

lower long term margins, saying they believe netflix can still thrive in the streaming market wall street analysts are largely positive on netflix, 28 buys or overweights, 12 holds, and one sell the big unknown is how consumers will respond when rival services to netflix launch from both disney and warner media later this year. it's worth noting that hulu added 8 million subscribers last year it's more than the 5.5 million netflix is expected to add in the u.s. we'll have to see how saturated the market is. how many services people are willing to pay for and whether consumers will stay loyal to netflix. we'll learn more on thursday back over to you >> it will be an earnings report that a lot of people will be watching closely it's all about the health of the real economy

kohls and macy's sales were disappointing, they went to experiences. they cite weak customer traffic. it's a key question we're trying to answer. how isthe health of consumer is the customer coming and spending money now have you seen any waning in the strength >> we're seeing strength we performed well. i'm not an economist or predictor. we had a record year in 2018 we expect to have robust year in 2019

usage is up at equinox we're looking forward to a big 2019 we have seen a lot of market volatility in terms of the high end consumer sometimes it's seen as forward i understand -- i understandicator are you worried? >> not at all. on a macro basis, healthy living has become part of the daily routine. that's why we're getting into hotels and that's what you see you see what people wear and what they eat. as part of high performance living it's too important. with the clientele we cater to, if they have to start tightening their belt or losing jobs, which is no indication that's happening, we see more usage and more time with us than less. >> big overlap between your customer and the apple customer. there's questions about

technology, the apple customers spending what are you seeing inside your membership has the dollar shifted more toward the watch and towards services around things like health and wellness versus on phones >> i would say, for us, we think about the experience aspect and the community aspect experience and the community, first and foremost happens inside the four walls. because it's become part of the daily routine and seeing the consumer want. they wanted every day and where they want it we're thinking about more iss w. >> i want to get y facilities and locations around the country and around the world. you're own by related companies. what is the pulse of commercial real estate right now. is there ae concerned there that prices are

coming off >> i think you have to look at the different categories we continue to see great opportunities. more because of the pressure on retail and the fraying of retail space. our brands, equinox have all these buzz words and hearing about experience and lifestyle community, that's what we have been doing for almost 30 years >> you have gems in washington, d.c. this government shutdown i stretching into l saying i don't know what will happen here or do you expect it? >> have not seen any of that so far. some of those people have more free time. that's part of why our usage is up know indication that will affect our membership >> weight watchers getting a lot of attention with kate hudson coming on as an ambassador calling itself a lifestyle brand. seems like there's more and more

comp tigts etition in terms of lifestyle brand. >> we think 2019 will be an epic year for us. we have new concept around creating a category in term ts -- terms of precision running >> thank you for joining us. the dow is down. s&p down about 7 points. the nasdaq also lower. etnsn sslley rur ile than three minutes duncan just protected his family

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welcome back taking a look at shares. activision blizzard is down 9% it's been a big hit for activision the transfer of that to bungee is being closely watched today at the time of its release the series did more than $300 million in sales in its first five days. making it the largest franchise launch of all time

it's quite a move for this stock, jon especially give tennessn the faa down 40% you have seen the gaming stocks get hammered in this broader direction. >> we saw it with microsoft. now we're seeing it with activision we'll see where that destiny franchise ends up. it's been big. with major indices off their low, that will do it for squawk alley. i'm scott wapner stocks are low this hour is the january jump a sign of what's ahead for your money? it is 12:00 noon this is the halftime report. >> can the january run for stocks keep going? today one strategist boelld cal.

see where tom lee is most bullish. two noted analysts weigh in on netflix and apple the call of the day.