>> thank you appreciate it. >> that does it on the exchange. we're going to kick it over to our good friends on power lunch where i'll be headed in just about 15 minutes to talk about nbc universal. power lunch starts right now andrew, we look forward to that thank you very much. welcome, everybody here's what's new at 2:00 on "power lunch." phase one of the trade deal is nearly in the books. the ink not quite dry but two key details that could derail the deal and we'll break those down for you plus, boeing could halt or further slow the production of the 737 max as it struggles to regain certification for the plane. the stock taking major hit on the reports. we have the details on that one. later on, a booming billion o tech stock

the fda giving the green light to one of its power drugs. "power lunch" begins right now welcome to "power lunch. take a look at this record rally. all three major indices hitting new highs. the s&p and nasdaq also higher and she can out the semiconductor. the smh tracked the group up more than a percent. we'll have more on that, later thank you very much. two trade deals in one week. it was supposed to quite all those trade concerns but some are now questioning the feasibility of the deal with china and now mexico has objected to some of the terms of the new usmca. we are joined from washington. >> mexico said it's a deal

breaker that the white house and democrats agreed to put monitors on the ground. the u.s. trade representative in a recently released statement saying the five attaches will be no different than those already representing other agencies there saying these personnel will not be labor inspectors and will abide by all relevant mexican laws and those issues will be conducted by the independent panelist appointed mexico's top trade negotiator is in washington today to discuss this issue and is expected to speak to reporters momentarily it's too late to make changes but the process moving quickly on capitol hill. checking one box on trade as negotiators turn focus to phase one deal with china where a

legal review and translation process are under way and the u.s. is aiming to have ministers sign the deal in washington the first week of january. nowthe lessening of the trade overhang bob is joining us with a look at what stocks with trade not being as big of a concern. bob. >> the question is do corporations have anymore feasibility on 20 than a couple of years ago the fed is neutral now they made that clear u.s. economy, chances of a recession pretty low brexit, big defeat for labor trade dealing it's not really a deal it's some kind of truce for the moment global growth we're still trying to figure out the bottom does look like there's a sign of the bottom the global market seemed to believe there's a bit better feasibility. we're hitting historic highs in

the u.s. does that not impression you 11 when is the last time you saw the vics at 11 that's a sign the market is not too worried now. take a look on yields. we're at 52-week high. this is the largest etf. if that doesn't impress you, how about bank stocks. we have seen the yield curve strengthen we're break outs on new highs and all the major banks. i think you make an argument, somewhat better viz blts than two weeks ago. tyler. >> thank you very much with stocks at record highs, is there more room to run into 2020 or will this ongoing trade war put a ceiling on the market.

gentlemen, i notice that both of you are basically saying what about the face of stocksuthand, value stocks and international as losers or laggards move to winners and michael, you say you like u.s. stocks compared with international. you like stocks relative to small caps and you like some of the growth to your areas as posed to value areas brants, brant, you make your case first. >> if you look in the u.s., you want them to become more cyclical small caps in general last year have under performed dramatically small caps were expensive because the narrative was they were in the trade war which was completely wrong you had leading i understa inins

those are negative to small cap. they are cheap because they have underperformed leading i understa inin ining i bottoming. negative real rates are here on inflationary front and that's a basis for small cap rally. >> michael >> with greater clarity on trade globally, not only the u.s. china but also the potential for the usmca, you could see a reacceleration in global growth. one of the head winds to companies in particular has been the strong dollar. now with the growing budget and trade deficit, the fed who already cut rates and improvement in trade, i expect better earnings from multi-national companies that should flatter those earnings and they also benefit to a greater degree by the lower tax rates. much more than small caps from that stand point the other interesting thing is

earnings are significant for next year. my guess is they are likely to come in a little bit disappointing relative to the t analysts currently have on the small cap stocks >> do you think the plarkt's reaction is justified. this deal does leave out some major issues it keeps 25% tariff on $250 billion of chinese goods in place. what are your thoughts about the market's reaction? >> i do think it's been rewarded and right. if you look at it, we've had a normal economic business sickle undernooeeath the surface

we do think it leads to better growth >> this is a sector trading at its highest leave. is there room left to run? >> i think there is. given the fact that remains remain so slow so given the fact that the cost of capital is zero, companies that can general ra -- generate a tremendous amount, in terms of very high growth rates and an economy that is still likely only to grow and the u.s. around 2% and globally a little more than 3, high rates of growth continue to be attractive those valuations although higher on a very welltive basis to where they have been in a while, they are nowhere near the levels we saw at the start with the technology needed in the telecon bubble >> thanks.

the nation's home builders are feeling pretty confident about their businesses. >> chief economist noted builders are still under building due to lack of labor and land and increased costs stocks with big names are up a bit. they were a little lower this morning because interest rates are moving higher today. it appears no matter how great the builders feel, mortgage

rates will always have the last laugh. back to you. >> makes a good point. coming up, a changing of guard at nbc universal, our parent company, we'll look at the legacy of steve burkie and the challenges ahead we'll talk to the ceo about the potential for the drug and what the market might be at cssg. th'soming up on power lunch. as a principal i can tell you this. when one student gets left behind, we all get left behind. this is a problem that affects each and every one of us. together with ibm, we created a whole new kind of school called p-tech. within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. you know what's going up today? my poster. today, there are more than a hundred thousand p-tech students around the world. it's a game changer.

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our parent company nbc universal with more on the fire ing -- julia >> reporter: well, also navigating the digital disru disrupting peacock is the streaming service launching in april followed by the tokyo olympics this summer

t a 15-year veteran, chairman of universal. a majority stake of nbc universal closed. the most widely seen event ever. he led the expansion of the theme parks including buying out partners in the orlando parks. he's a key architect of the sky

acquisition. now he will assist in transition sounds like a nice future for him. stick around for more on this leadership change and the challenges ahead for jeff shell. andrew, welcome. >> i would say the legacy is no longer do we have to have ge appliances in the break room i would say if i had to pick and julia did a marvelous job summarizing all the things that mr. burke has done, one of the things that stands out is the vitality of the theme parks that he's brought he's made them a real serious, serious goal >> i79 to put one other on the list that's not on the list and he doesn't get enough credit

for, buying nbc universal. if you understand the confidence that bryan roberts has in making this what was a momentous decision i would argue that steve burke gave brian confidence and courage to make the deal at all. after that, 100% the theme parks out perform wildly out perform anything anybody thought was possible but i do think that comcast as a company would be a different company without nbc universal and would be had steve burke not been there to make that happen in first place >> also what he did with the

acquisition once they had a hold of it. one thing he did was this idea of he created this cross company collaboration system the idea these different divisions should not be operating totally, separately. they should be collaborating and figuring out ways the tv division, the channels, the theme parks can all work together and really maximize the different brands across platforms. nbc universal did not have anything close >> he was an oerpperator as mucs a deal maker that was done almost in the cover of night surprised everybody and really pushed out and created a consistent system and theme for these networks as we said through 20232. i remember when i woke up that morning and thought, wow, they've got it for that long

>> i had forgotten >> the imprint will be here long after he hangs out in montana. >> what do we know about some of the challenges he may inherit? >> yes, there's a lot of challenges the big challenge is streaming and getting peacock off the ground having said that, julia can speak to this because she's out in hollywood when jeff first got out to hollywood, i remember reading the story. when he first got there, everybody was wrietsing him off. he got into that chair and made it work better than anybody anticipated. you look at the franchise and the franchise films that didn't

exist before he was there. many of which are now going to be ongoing franchises and you'll start to see in the theme parks. >> i'll have you sum it up that the challenge is streaming you can see it as a rival to film entertainment this is an executive who has touched nearly every single part of the company he has international experience. he also was appointed to run the studio with no movie experience. he went onto have the most profitable year ever he's between the international and domestic experience here and hollywood is just about a block away from where i'm standing now

on the studio lot. this is someone who is seen as having all the experience necessary to take the rains and really to add a fresh perspective as they navigate the digital challenges it's about how peacock is managing in conjunction with the cable companies and they talk a lot about wanting to make sure that peacock is bundled with cable and trying to figure out how to reach the cord cutters or reach cord neverers. it's also what happens to the movie business trying to figure out how to make sure the content aspect are best exploited either with ad supported peacock or trying to get movies to people's homes

faster >> thank you very much shares of micron technology and western digital boosting the entire chip sector today after a big upgrades is now the time the buy chips? the boeing 737 max saga taking a new turn and the stock preventing the dow from heading higher will the grounding of those anes continue to dive on power hundred mp wilunch will bk ♪ this wave is rolling, let's get going ♪ ♪ we got places to be ♪ hey-ey-ey (vo) whether that's taking in every moment... ♪ ...or capturing a moment worth bringing back. that's room for possibility. ♪ let's see how far we can go, oh oh ♪ ♪ oh oh oh through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business.

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welcome back to power hundred lunch. micron leading with record highs. could the rally cool down. >> not only does it rank high in our momentum work, really broad based across the board that's what we're looking for. one name we like here, microchip

technology mchp not as extended as some of its peers. just starting to break out the level to watch, 108. that was the stock's peak from 2018 just breaking through two year resistance on that break out we see upside to $130 with trading support here at 97 here is a fresh break out getting going by microchip >> nancy the trade story has helped the sector out perform in 2019 what do the fundamentals tell you? >> it's been really interesting. we went over with the group last december in march i thought i had made a big mistake. they were one of the top performing groups this year. we expressed our commitment to the industry by the sector by adding in over weight in broadcomm and texas instruments.

i think the company is well positioned as we move forward. thank you for joining us head to our website or follow us on twitter ahead, boeing grounded the company considering now halting 737 max production as its grounding of that aircraft wears on what does this all mean for boeing a booming bio tech fda green light for one of its heart drugs. shares are soaring this year and the ceo will join us next. a decade of dominance is on its way out. we will tell you which stocks are buying opportunities for the next ten years all this when power lunch returns.

welcome back here is your cnbc news update. boris johnson and president trump say they look forward to the negotiation of an ambitious free trade agreement this during a phone call this morning. trump congratulated johnson on his winning for east general election china's foreign minister is criticizing the u.s. for expelling chinese diplomats who drove into a sensitive u.s. military installation asking washington to reverse its decision neither country made the september episode public freshman new jersey

congressman jeff van drew is expected to leave the democratic party to become a republican he reportedly discussed switching parties in a meeting with president trump at the white house on friday. in response, six members of his staff resigned completing a 25-year journey. mariah carey's all i want for christmas is you has hit number one very the very first time it's the first holiday song to hi hit that mark since the chipmunk song back in 1958 to 1959. that's the news update this hour back to you. >> thank you my favorite movie because of that song. thanks this hour let's take a look at the markets the dow still up triple digits the s&p and nasdaq also higher all three major indices notching fresh record ons that phase one

deal check out some of the stocks hitsing record highs nike, apple and target trading at their best levels ever. time now for today's power movers shares of axsome soaring today next, pg&e sliding today california governor rejected the em battled utility's bankrupt plan and pay out billions to wildfire victims take a look at shares of tesla. they are revving up today. it's a key advantage for elon musk's car company shares of boeing falling 3% today as that company reportedly considers cutting or suspending production of the 737 max as the

time line for the plane's return to service slips deeper into 2020 back in april president trump said the company should rebrand the max given the bad press and it's only gotten more bad press since then john, good to see you, sir >> thanks for having me. >> let's get to the question of whether the 737 max and its branding needs to be totally over thrown. is the only way that this plane or a cousin to it comes back and succeeds is if they don't call it that anymore or will the public buy that? >> in aviation, actions matter, history matters. changing the name of this

airplane isn't going to fundamentally change it. what really matter s bs is gettg the airplane recertified and back in service safely that's the only thing that will rebuild the trust. >> a look at lift of the d.c. 10 which famously there was a terrible air dis aaster near chicago involving a d.c. 10. i don't remember the history of whether they tried to rename and rebrand that plane i do remember the history and that was the plane went out of manufacturing within a couple of years of those disasters >> there was a horrific air crash near chicago in may of 1979 the d.c. 10 was grounded for 37 days after that crash. the airplane came back in the summer of '79 and all the summer plane tickets had been booked. the plane flew full for the most

part it was about a year later that it was found that public trust was shaken 10% said they had grave concerns in the airplane safety douglas tried a pretty expansiv campaign in 1980 to bring this plane back to life and rebuild the trust in the eyes of the public it backfired badly a year or two later he tried to reband it. they didn't sell any by '83, '84, the airplane was pretty much limping alone as a frighter carrying no passengers at all >> it's already cut production by a fifth back in april from 52

to 42. would you be surprised if we don't see the planes back in the air. they are a bunch of out standing items with the faa that need to be addressed before this airplane is recertified. we're looking like the late first quarter at this point, we had american airlines push back their schedule again probably see the u.s. carrier southwest and united do the same this has an effect on the airplanes that have continued to be produce 42 airplanes a month on a manufacturing is still two every single day >> what about the wider fall out on its suppliers like ge which makes the engine

>> we're going to see how interconnected this global supply chain really is this is not just a seattle story. this is engines made in cincinnati and france. in seats that are made all over the world and everything from electronics and hydraulics and everything from those details. this is going to be -- you're really seeing a major economic hit. that will take a backseat to getting the airplane where it needs to be. >> as an observers and reporter in this area for a long time, what would you recommend boeing do in terms of public relations when this aircraft is recertify ed would you suggest they stay below the radar or should they go out and mount a campaign to

try and rebuild confidence in the brand or just kind of let it come back in, quietly, make little of it >> well, history tells us the hardest thing to do is doing nothing. that might be the right thing in this case. that is one of the big risks that ends up that something totally unrelated may happen to the airplane that has nothing to do with what caused it we'll have to see the airplane fly and fly safely that will be what revalidated it in the eyes of the public. no pr campaign will be able to do that on its own >> thank you for your time to the bond market we go

rick is standing by tracking the action at the cme. rick >> if you look up at the board and look at what's going on with stock, they've been pretty brilliant. they've had no, ma'am nisome nie backs. you could really see it has this magnetic feeling pushing rates up, pulling them up. we are on the high yields of the day. you can see the right side is flattened out a bit as we approach 190 better data in china i save the best for last i don't bring up the national association of home builders optimism index but when it's at a 20-year high, another reason

to give stocks a little buoyancy back to you. >> you're right. a report we're watching closely. turning our attention to bio tech shares of ameron soaring. now it's got a key drug that's been approved for new use. power lunch will be right back apple card. is a new kind of credit card, created by apple, so it's simple and transparent with a new level of privacy and security. it lives here and here- on your iphone, and it will save you 6% on holiday gifts at apple; like iphone, apple watch, airpods pro and so much more. ♪ apply in as little as a minute, right in the wallet app. apply in as little as a minute, apps except work.rywhere... why is that? is it because people love filling out forms?

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welcome back shares of amarin were soaring on friday after the fda approved its key heart drug and with the stock pulling back a little bit today, it's still up 70% this year we're about to be joined by the company's ceo but first let's get a little more on this story. >> the drug which is derived from fish oil has been on the market since 2013. it could be prescribed to millions more people to lower their heart rate

here with us is president and ceo of amarin. >> i'm very happy to be here this is an a big important approval really for society some praise this to be the most important advance in the last 30 years. >> tell us how many more patients you can now target? >> prooefrsly we had a niche indication now we're looking at lowering cardio vascular risk if you think about statins, they lower risk we lower cardiovascular by 25% on top of their 25%. this is millions of people tell us about the narcotic for

this drive >> what is the coverage like with the insurers and how do you look at situations you just saw getting out of cardio vascular because the market is not good >> we are sign driven company. you're right, big pharma has backed away from taking on, addressing chronic illnesses they are difficult to overcome the development has taken over a decade once we got here, often for the breakthrough technology, some will try high price. we take the approach of charging the price that's fraction of what other new drugs have been introduced at over the past deck t -- decade two separate groups came out with plus analysis showing it's not only cost effective but will save society money by lowering and preventing cost of heart

attacks and stroke, for example. >> high high do your triglycerides need to be to make you a good candidate for this drug and do you not respond to changes in diet to get it down early? i ask out of personal interest >> not asking for a friend >> medical treatment would also focus on diets and exercise first. also wlooerking at patients here who have already tried staten therapy. if you don't respond well or intoll rant, the levels at 150 per deciliter, it becomes something that might be considered they might have artery disease, problems with carotid artery or die better we're not trying to treat

healthy patients we are trying to treat patients at risk. we found out one event was seen for every six patients treated that's a pretty significant reduction. >> there's a lot of science. if somebody is healthy and looking for sum plepplements, ts a lot out there that might be worthwhile if you're at risk for aen event really a proven therapy makes sense. it's been multiple studies done, dietary supplements in omega three mixtures that haven't worked there's a tremendous amount of science here

we have gone with fish oil it's a fragile ingredient. we have extracted it without damage it and found a way to keep it stable we have gotten it in the right spot in the body it performs very differently than normal fish oil >> we have to quickly ask you about the next catalyst. you tell us about looking at a settlement, going to trial early january? >> i think there's a lot of catalysts looking for approval in this drug in can ta we just filed in europe. we're looking for completion in china as well. this is a major drug any time you have a major drug, you always have pa tent challenges opinion we're confident in our patents >> all right thank you so much for yojoining us we have a news alert on amazon and fedex let's go to eric for the details. >> check out fedex stock dropping a little bit.

that's according to a dow jones report that amazon is blocking third party sellers from using ground delivery network for prime shipments citing final performance heading into the final stretch of this holiday shopping condition it will last until the delivery performance of the shipping methods improves amazon stopped using fedex for its own deliveries cnbc reached out to those companies. we'll let you know if we hear more that's why the stock had a quick dip. >> session lows now. thank you. it's been a decade of domination for netflix the stock up 37% in the 2010 is this a stock you can buy and hold -- excuse me, up 3,727%

more on that stock whether you should buy it or hold it or sell it that's next. ♪ ♪ ♪

welcome back to "power lunch. there are just ten trading days left in the entire decade. and the s&p 500 is sitting right near record highs. take a look at some of the top

s&p 500 performers over the past ten years, all up more than 1,000% netflix is the king of the decade, up more than 3,000 percent. so should you keep buying these names for the next decade? cnbc "fast money" trader steve grasso here to tell us the names that will boom and which names he thinks will bust. steve, good to see you let's see with the names that you think have gone too far, too fast >> netflix netflix is the one that stands out to me. can you imagine any better environment going forward as netflix had when they started off? china is not going to be an area of growth. u.s. is not going to be an area of growth. india, there's too much competition. i think you've got to sell netflix. it's had an unbelievable run, but the competition for the first time is insurmountable for them >> that's a good point which ones do you still like >> so if you go through these, uri, basically you're going to have booms and busts in the economy. i think you have to buy this

one, because when you really stagger yourself, the economy, if it's a bust, you're going to want to rent the equipment if it's a boom, you'll want to buy the equipment. either way, they're going to flur flourish in this it gives the operational guys room and flexibility to survive. this has been a starwood if you look back at growth, 20% in '18, 20% in '17 20% growth overall when they count all the chips es u up in . >> big name in the industrials what about biotech >> so, biotech, abiomed, abmd is a device company it's in the cardiac space. so this one's been under pressure, as of late but that's to be expected with any device company or anything in the medical field this is one that with aging baby

boomers, anything cardiac centric is going to be a boom going forward. the biggest thing for me in this one is they have zero debt and they have tons of cash on hand to counteract any type of headwind that you would see. i think long-term, this is a name that should be bought >> yeah, aging demographic, something we're seeing not just here, but in japan and china steve, i want to driveway your attention to this graphic. take a look aft some of the biggest losers of the decade ge, devon, all of the s&p laggards, falling double digits since new year's eve 2009. which one of these names is the diamond in the rough >> well, ge. and i've been long ge around these levels and i have a slogan. ge, $20 in 2020. and i do expect that to happen you're starting to see a lot of price target raises. you're seeing them starting to get ahead of their unfunded liabilities. so you see the power group has been a definite headwind for

them the losses in that group have been subsiding and then you see aviation and health. they have been coming on whether it's incremental or not, the momentum has changed i would say that it's all about free cash flow and once that starts to increase, as it has been, you're going to start to see this thing take off. and that's why i'm there and i think that's why it's going to be a huge stock in 2020. >> stock trading at 11 and change, it's up 53% this year, although well off the highs it traded back in the 2000s >> it got hit, seema, off the of the boeing headline, the negative headline today, but i would just shrug that one off and look for fast gains here, forward, and especially in 2020. i think you're safe to be long that name. i'm staying long it. >> steve, thanks for joining us. >> thank you >> steve grasso. lir e ectoheab return, we will devethchk t tle each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group.

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check, plooez. >> the market is on pace for its fourth green day in a row, no reference to the band green day, although i do like green day "when september comes," great song one thing that was very interesting on the day of the trade deal announced with china and various other economic things, the one thing that was not mentioned that day and has not been mentioned until now is impeachment. it is amazing to me how the market has absolutely discounted what it thinks is going to happen and play out, and i think lots of people would agree with

the market's assessment of it, but it has been fundamentally a non-factor, either economically it would seem, and certainly not in stock prices. >> let's see if that changes we'll see if it becomes a bigger part of the market conversation. but to your point, trade really dominating the headlines that does it for us on "power lunch. >> and "closing bell" starts right now. >> seema, tyler, thank you welcome to "closing bell." i'm contessa brewer in for sara eisen today and we are at the boeing post. that stock off 3.5%. moderating the gains on the dow. the component under pressure we have details on why coming up as we count down to potential record closes on the dow, the s&p, and the nasdaq. wilf >> contessa, thank you i'm wilfred frost. good afternoon let's have a look at what's driving the action optimism over the trade deal with china driving all three majors to new highs with the nasdaq leading the pack today. boeing sitting out the rally and draggingn