the bigger you have a piece of legislation, sometimes the easier it is to get the deal done because both parties can walk away winners. >> thank you very much a lot of people will be angry. that describes a lot of people n any way. power lunch begins right now thank you very much. we'll tell you how high wall street thinks this market might go boeing suspending production things go from bad to worse. the top analyst will tell us how the stock is fighting the turbulence amazon and fedex going head to head during the last mile of this holiday season. we have those details as power

lunch starts right now welcome to power hundred mp. indices hitting high caps today. draw your attention to shares of netfl netflix. the stock jumping nearly 4%. the giant breaking out details on its international data showing growth in markets like asia pacific, europe, middle east and africa. thank you very much. sharing of boeing slightly lower right now after being down 11 of the previous 13 sessions that's a streak. impact of its shutdown of the 737 max production on the economy, not just on boeing. it will be a big deal.

>> tyler, it may be hard to imagine. the negative effect could be larger than last year's government shutdown. the production is off as much of a half point mar began stanley looks for 0.8% to grow. the problem is the first quarter was looking weak now coming closer to 1% instead of the forecast 1.6. that would make it one of the weakest growth quarters in several years. growth expected to rebound on production but when is an open question morgan stanley writing in a piece of steel production in q220 we would expect to see more than a 100 points boeing saying it won't lay off any of the 12,000 workers who built the 737 but as the stoppage grinds on, boeing could

see that >> thank you very much let's talk about what this means for boeing and the industry more broadly. >> how long will this damage be a wageight on boeing's share price? >> we have a target price that's 420. i think what you'll see in a lot of 2020 and 2021 estimates is they are working off inventory we have 384 aircraft that's grounded and 400 that are built through december >> 420 is your price target on this you think it will get there by this time next year in. >> i think so.

it will be pref -- prevalent back there >> they will look at every single one of these claims the ones that are in for moth balls and all the planes that are in service >> the ones you want to focus on are built but not yet delivered. what the faa said was in the past they would have designated authorization events in other words, if you were with boeing, i would say tyler and stooefr a steve and sheila, they work for you, they're good. you can approve these planes now the faa said we're going to do it. it's a much slower process could that change? three months down the road, could the faa decide we're pretty comfortable with what we see here now we'll have some dars who

will speed up the authorization of these planes. >> boeing has not been transparent. waiting until the 17th of december to announce the production call. it's already provided a number of unrealist scenarios about when the 737 will return to service. >> i think boeing has lads out a frame work in july there was no return to visibility by the end of this year they laid out a frame work for its industry partners whether it's supply chain or airline customers that need to figure out this week as well. it's not as easy as giving cash rate for the next quarter out. it has a buchb nch of variables >> the head of the faa coming out saying it ain't happening this year. it will be into 2020

that was really the strik. that's when they were like we got all of these planes that are built and still want to add onto the inventory. we want to have 500. 520 of these >> how good is that second quarter return to service because you said they had like 400 plus planes. why did they start making them again until they got out part of that inventory >> i don't think it's the switch and immediately you'll see 42 a month. i think it will be waking up the factory and granting the increase that's why some are saying we think it will be shutdown for most of the first quarter. most said we think it's gone for the first quartzer >> how many people will be furloughed because of this >> nobody. as of now everybody will be continued to be paid

>> that's 12,000 jobs. >> great point what is a company like spirit aero system. >> i think is supply chain has been fairly accommodated up to this point >> it's going to be zero maybe it's a naive question or maybe it's on the mark that is this is one of the things that ins la -- ins laulates boeing is there isn't a viable alternative if you go do air bus, you'll win.

>> we heard from air bus you would have to wait from 2023 or 2024 you haven't seen one official order switch from boeing the air bus. you've seen some of those aircraft go away i think it shows the customer hasn't spoken. >> thanks very much. coming up, stocks once again hitting all time highs the dow trading at 28,000. it seems nothing could stop this rally exsecept for maybe d.c. dysfunction. stay with us 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. we help farmers lock in future prices, banks manage interest rate changes

and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. cme group - ♪ ♪ ♪

♪ l♪ has begun ay

welcome back as impeaching vote looms, stocks are trading at the highest price ever with s&p hitting another all time high. the goal is keeping their charge forward. investors see more gains ahead could the drama spoil the bulls holiday?

why do you think investors continue to ignore everything that's happening in d.c. including that impeachment vote set for tomorrow >> the impeachment vote won't have intermediate or long term ramifications on u.s. growth rates. when it goes to the senate, it will die on the vine investors know that lready when it comes to trade deal, they kick the can down the road. the market is anticipating growth rates that will be positive >> do you think it diminishing the prospect of another rate cut? >> we don't anticipate another rate cut by the fed but the market is cheering monetary policy being so dovish for the

whole entire year as well as the ecb sitting on their end overall what you have is economic growth that's moving forward. >> the impeeachment risk to the market is zero i guess you would say election risk is higher than that but i'm a little surprised to see you put u.s. recession risk at basically a third next year. what makes you feel that way >> we follow a barometer the barometer is more or less a diffusion index. our dashboards is trending between 45 and 55. it's on the lower end of our outlook which just gradually increases recession odds overall we're not calling for a

recession. we think we'll see a positive market return in 2020. y you're going to see low rates in 2020 >> how much does trump getting re-elected get priced into that? >> i think it's a 50/50. it is being priced into the market that could cause market compression, multiple compression overall. again, global growth for 2020, plus 3%. i think we're still on firm footing.

>> you think it's vulnerable >> i think there's been this rich for yield any time you have an economy that could go into some destabilization or slow down those types of companies don't fair as well on a total return as rising companies that are consistently gro lly growing, consistently profitable and reinvesting back into their business to grow the cash flow in outer years that's what we would like to see companies do that's the reason why we're recommending it. >> evan what do you like going into 2020? is it domestic or international? i feel like every one in their

mom is recommending supply >> i guess you could count us among them we're favoring international to domest domestic there's a lot cheaper markets. >> cheaper doesn't mean better you're still seeing growth of 1% in europe. maybe asia a bit stronger. >> we think the fundamental s there as well. there are countries that were hit hard by the trade war. now that you're getting deescalation and seeing improvement in trade globally and these are the countries that will benefit the most as opposed to the u.s. that are amore inward looking market. >> multiple session there. kevin brown, thank you for joining us shares of tesla are slightly

lower today but up more than 55% for the past three months and a few percentage points away from a record high. the commissioner of baseball weighing in on big contracts, rule changes and issue so controversial it has bernie sanders getting involved 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.

welcome back the house just passed a trillio dollar spending bill. >> reporter: the price tag was $1.4 trillion. those are the bills this were included in the package past the house with strong bipartisan support. it now goes over to the senate we do expect that president trump will sign this bill once it lands on its desk well before the government runs out of money.

it also spends authorization for the export, import bank for seven years. even break for the who will industry once the house finished voting on this bill, all attention on capital hill will be focused on impeachment. the house rules committee is still debating the parameters for what that would be on the floor. we're still expecting a vote to look like tomorrow back over to you >> counting down to that vote. thank you. now over to mike for trading nation hi, mike >> thank you very much tesla slowing down slightly today after racing more than 50% higher still holding record high range. one of our next guests is issuing warning on the stock

this stock is kind of made its way back, what does that mean to you? >> it's getting the level where things get dice si it has gotten more extreme a couple of different times. not much more extreme. each time it's been followed by severe decline smallest has been a 20% pull back i think it will have a tough time breaking out here people especially as we move into the new year, it's going to be a tough one

>> in the new year social security a new tax year too. >> it's the single most controversial stock. i think when you step back, the bottom line is tesla right now continues to dominate the ed space. the electric vehicles are better basically tesla is improved its pass production and more volume and has shanghai coming up i would not want to short this thing.

it's direct or if the it busts through i think the move will be momental >> it's never boring, this stock. thank you very much. more trading nation head to our website or follow us on twitter at trading nation. back over to you thank you very much. ahead, the shipping wars amazon taking on fedex in the middle of the holiday shopping season we'll ask one top analyst what this means for the stock plus peas in a pod why the fake meat boom can help save america's farming the commissioner of baseball sitting down with cnbc how will he handle the curve balls headed the various league way. all this when power lunch continues.

here is your cnbc update the house rules committee have started deliberating they set a vote on whether or not to impeach president trump the chairman gavelled the session open >> we've listened to the hearings we heard the transcripts it's clear this president anctin in way that not only violates the public trust, he jeopardized our national security and undermined our democracy >> rick gate, president trump's former deputy campaign manager was sentenced to 45 days in jail, three years probation. gates and paul manafort were the first former campaign officials to be charged by former special counsel robert mueller family, friends and fellow

officers said good-bye this morning to new jersey police detective joseph seals testifies shot and killed last week by two suspects who went onto kill three more people. he leaves behind a wife and five children we had a severe ice storm and even then hundreds of civilians and officers lined the street. >> they were there early this morning waiting for that service to commence. >> the dow up 52 points. the number of banks hitsing 52 highs, morgan stanley and citigroup. time now for the day's power movers starting with roku. the company's cfo is leaving saying he wants to be close to his family in seattle.

he will help the company find a replacement. they say the move was expected unileverer on pace for its worst day in a decade. two buy outs to tell you about tallgrass energy being bought by black stone for more than $4 billion and logmein being taken over by san francisco partners and evergreen for $4.3 billion the company makes software that allows for remote connectivity the oil market closing for the day. we have the numbers at the commodity desk >> oil prices settling higher. traders are optimistic about global demand growth

it's at its highest level since sent both are expected to show dry out as stockpiles further support prices back to you. the shipping wars are heating up with just about one week until christmas yesterday during this hour fedex shar shares fell as amazon announced they are blocking third party sellers from using ground shipping amazon is up nearly 20%. fedex reports second quarter results after the bell here is what to expect is pulling investors. we have out perform rating on fedex and $190 price target. this seems like a moment of truth for the company especially in light of this what are you expecting >> thanks for having me on the

show we're up about con ken issues. in general a beer year, fiscal year now than earlier. i think it's kind of the throw away in our view because fedex fired amazon as the client earlier this year and the amount of volume that fedex has is so small. >> i would say the opposite. the delivery that amazon is asking them to, dubts that raise serious questions about fedex advantage. >> fedex doesn't handle amazon

volume fedex ground fired them as a client in june there's not a lot of volume that fedex carries. most of the amazon volume is carried by the u.s. postal service. i think from fedex competitive per speckive, they've got the it they've got the largest fleet among the three. they are retiring the old aircraft in a couple of years. i think they can handle the volume i think their facilities are more automated

they can handle the volume >> just to get to the bottom pients on amaz point on amazon. they said third party sellers cannot use amazon to fulfill orders and your view is that is a rounding error a minimus effect on amazon >> right exactly. >> how far behind is fedex and is their performance as good as amazon or u.p.s. >> we estimate that 7 to 9% of packages will be delayed this christmas. we estimate that fedex is probably 9% delayed we think that uc.p.s. is about 8 delayed. i would say fedex is not performing as well

i don't have access to the amazon the way i do the u.p.s. and fedex. >> we'll leave the conversation there. >> we thank you. we got a news alert coming out of washington, d.c >> reporter: the president of the united states sent a blistering letter to nancy pelosi it's multiple pages long and it's intensive critique of the house democratic led impeachment effort against him this is the defense the president and his team could have mounted if they chose to send a defense team up to the house of representatives on their behalf it's a preview of the defense

they will now have in senate trial after the president is impeached. the vote is expected tomorrow. the president very critical of this entire process. a lot of it is similar to what we heard the president say so far in public remarks and in tweets he says to nancy pelosi by proceeding with your invalid impeachment you're violating your oaths of office, you're breaking your allegiance to the constitution and declaring open war on american democracy. he said she's praying for the president saying she knows that's not true. he says you're offending americans of faith by continuing to say i pray for the president when you know the statement is not true unless it's meant in a negative sense it's a terrible thing you're doing. you have to live with it, not i. the letter goes on for a number of pages including the criticism of the democrats they are the ones who are abusing their power. they are the ones interfering in american elections and the president himself has done nothing wrong.

we can expect to see more of this during the senate trial as the president defends himself if there's an impeachment vote tomorrow democrats are moving forward with articles of impeachment and the rules committee today for votes expected tomorrow. we can expect to hear more from the president as he is here at white house meeting with foreign leaders today but ultimately also very much focused on this sdplp th >> this is a letter from the president to the speaker not from his counsel or anything in his team? this is from him to her? >> reporter: yeah, there's the signature there. it's a critique of pelosi herself.

all of this is what you heard the president say before this is a letter on paper and not under oath there will be a defense team making similar arguments in the senate trial that's to come. >> we move forward over the next 24 to 46 ho36 hours even as this war of words escalates between the president and the speaker some important legislation moves through the house today, a spending bill the north american trade agreement with mexico and canada looks like it is poised to move add well there are the functions of government that are taking place but as we move into tomorrow, what's going to take place on the floor? the democrats will present the case, the arms of impeach. that were passed by the judiciary committee and the republicans will do what >> well the republicans will vote against them on the floor the question is will there will

be any republican defectors. last time around i coveredimpea some defectors the question is will there be some this time around. the expectation is you wouldn't put this on the floor if you didn't feel extraordinarily confident that she has the votes to impeach the president then it will goo to the senate for the trial to determine whether or not the president should be removed from office. the tone is as bitter as it could be quoting here from the letter from the president to the speaker of the house, you just never really see anything like this he says -- accuses democrats of wanting to impeach him for years.

you have spent three straight years attempting to over turn the will of the american people and nullify their vote you view democracy as your enemy, exclamation point from the president of the united states to the speaker of the house. >> it's a terrible thing you're doing. you have to live with it, not i. >> i would imagine nancy pelosi respond directly to it or could allow the impeachment vote to be her response it does feel that's all but inefevitable tomorrow. this is a washington, d.c. that surprises us all the time. it does feel like the republican and democratic effort to impeach republican president is in full swing up there then we'll say where we go with the senate trial the question now is what procedures and processes and time frames will the senate trial have the trial involving bill clinton lasted for five weeks. i was in the chamber the day

that president clinton was acquitted and he survived that trial by making a defense of himself on the merits and also on the politics saying that was about his personal life and has nothing to do with american voters we'll see what do i understand of defense this president has if we get there >> all right thank you very much. to the bond market we go and rick tracking the action at the cme. >> good afternoon. it's a big deal. the size of big investment positions seems to move with it. lowest volatility and treasury in six months. the long end has been doing most of the big movements because the short end is buzz with the fed, whether rates go up or down it's steepening it's at 26

zoom it back you see we're the highest levels since mid-november one take away from challenging that, zoom back farther in july. we haven't seen those levels since july finally, we haven't talked enough about grains. the chinese trade deal is moving through and ultimately will have phase one. look what it's doing right now it's the best levels since june of 2018 back to you. >> coming up, struggling farmers are hoping for keys on earth this holiday season. e ve from montana when power lunch returns.

meatless mania arriving. farmers are hoping even more

people will give peace a chance. >> reporter: there's a lot of peas still in supply here. they're making their decision for 2020 and increasingly they are -- take a look at these maps it's shooting up too much. there's too much supply. pricing for peas are now 20-year low. below break even it's subject to very stiff tariffs from our two biggest customers, india and china >> within a span of two years, we're down about 300,000 tons in demand from our two largest suppliers.

that's a little hard to make up. >> reporter: if domestic demand is starting to ramp up, not just them tyson has a new product. it's run by a former nfl player who has taken over the business from his dad >> they take nitrogen from the air and convert it to usable fertilizer for itself but they over produce it so they make fertilizer for the next plant. >> reporter: heerp's the deal. it's kind of a good win-win maybe. even if they're not making a lot of money on peas you can make money on the crops that are profitable even if you can make money on peas that's even better and

might give you peace of mind >> thank you very much great to be with you eat your peas. all right. it's been a good off season for major league baseball so far with record breaking contracts the league is facing a lot of issues what the commissioner has to say about thpae ce of play and more. that's coming up priority.te is the numbe i would declare a state of emergency on day one. congress has never passed an important climate bill, ever. this is a problem which continues to get worse. i've spent a decade fighting and beating oil companies, stopping pipelines, stopping fossil fuel plants, ensuring clean energy across the country. how are we going to pull this country together? we take on the biggest challenge in history, we save the world and we do it together.

nice rock. it's time to drop gold. go digital. go grayscale. woman: friction points, those obstacles that limit a company's growth. i try to find companies that turn these challenges into opportunities. but by going out in the field, and meeting management, suppliers, competitors. in the end, it's these unique companies with creative business models that will generate value for our investors. that's why i go beyond the numbers.

they ever a bad time to talk about baseball the baseball hot stove has been keeping the sport on the front burner this winter because of among other things three huge contracts worth more than $800 million that were signed in the past couple of weeks but there are still plenty of curveballs for commissioner ron manfred to deal with including new media deals, proposed rule changes, and a controversy in the minor leagues. in from the bull pen, the crafty right-hander, cnbc sport business reporter, jabari young. >> how did you know i was right-handed >> i didn't. i just guessed what is it, 15% are lefties? let's start with media deals, at a time when baseball ratings at least for playoffs in the world series are not what they were, you have a couple of deals

coming up next year, espn and i believe it's turner. what did manfred say >> you know, you look at the deal they just extended with fox, worth $5.1 billion. they're going to see an increase in their percentage. you know, rob kind of joked with me when we met in the winter meetings he said, our last deal with democracy, we got a 40% increase what do you think is going to happen with espn and turner? should both of those want to retain mlb rights? >> where does streaming fit in this >> that's interesting, tyler, if you look at the turner deal, when do you watch baseball on turner sports? only during the playoffs mlb is looking at this, we want more content distribution all year and i feel like, you know, programs -- streaming companies, amazon, you know, whoever else wants to get into the mix. they may have a play here. in an age where media rights and sports have continued to increase, i think baseball is going to look at this very, very carefully and say, hey, listen, what is our best option to make sure that like the nba and nfl, everybody is talking about us all year long.

and i feel like streaming rights and content on the streaming platform may help that >> is there a specific streaming player that could have an advantage here >> we'll see right now, espn and turner still have the rights after next year, next season, 2021 is when their deal is up and even ron manfred said, we're going to start talking next year as time gets near that deadline, i think you'll start to hear amazon and other -- i don't think netflix, but maybe the hulus of the world maybe espn comes at them with a different package on disney plus but i think baseball wants to see more content and distribution around their sport all year long. >> baseball has an aging issue it seems to me when you go to the games, the games are largely attended by older white males. what are they doing to try to attract and diversify their audience, skew it younger, skew it into different communities, speed the game

>> this is one of rob manford's babies, that the mlb is doing and that's going back into certain communities, particularly urban communities and introducing the game to them via going and repairing and reinnovating fields, renovating fields they did one in harlem a couple of years ago now they just started their program and they'll be doing it now this upcoming summer i think that's one of the key issues, is going back into communities to introduce the game and when you introduce the game to younger kids, they grow up liking the game and following the game i think e supports sports will continue that. i think you'll start to see kids look at the game and it will gravitate and be better for them but another issue is that they've got this ballpark pass that they have and it's like subscribing to a netflix you subscribe to this, certain teams have, but you describe to a ticket package and you get to go to any game you want to, throughout that time >> like what the ski resorts have done. >> and that's a great idea that's a good idea for baseball.

these days, younger kids don't want to have to plan and be obligated to something over the next few years, the next decade -- >> they're going to put pitchers on a pitch clock >> three-batter minimum rule and i think five to ten minutes, that actually changed the actual, you know, pace or the actual length of the game. >> we need that. we need momentum how much would that shorten the overall game >> they're talking about a matter of minutes. >> three hours versus three hours and five minutes big deal >> but it's going to change strategies that's why a lot of matters that i've spoke to, they don't really like it. now you lose the ability to match a batter with a pitcher. >> tell me about what's going on with the minor leagues there's been a kerfuffle the mlb would like to sever relationships with some 40 teams. and they might go away or they might form their own independent leagues. tell me about it controversial. >> this is a cost and a revenue thing.

when you look at it from both sides, baseball is saying, listen, we invest in these minor league teams because we're trying to produce better player development. we're not doing that the stadiums are not up to par where's our investment coming? and look at it on the other side of the field, where you have politicians getting involved, where are these baseball communities? places like vermont, like connecticut. >> upstate new york. >> small towns with heavy political connections. and they have real estate deals, they have sponsorship deals, and they have communities that have invested in these teams. and this is the only thing that they have. so they're going to fight for it and i think what you're going to see is, tyler, they're going to have teams -- it may shrink. i don't think it will be eliminated, but it may shrink. and i think you're satisfying both parties >> who knew? baseball so much more than a sport, politically >> i look it and speaking of commissioners, david stern has done a very good job allowing me to understand the perspective of certain

things that business related to the nba and i wish his family the best and thoughts and prayers are with him right now >> jabari young, cnbc's sports business reporter. for more of his news and the full interview with mlb commissioner rob manford, you can find it on cnbc.com. >> check, please! is next. woman: my reputation was trashed online.

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check, please! >> major league soccer announcing a new expansion team will be awarded to charlotte, north carolina, its 30th

franchise. the team will be owned by billionaire hedge fund titan and carolina panthers owner, david tepper, who paid a whopping $325 million entry fee. this dude has a lot of money >> he's got a lot of money >> and they're hot soccer >> that does it for us on power lurc lunch. >> "closing bell" right now. >> good afternoon. welcome to the "closing bell," everyone i'm wilfred frost. i'm here at the fedex post today. that stock is down around about 1% following some competitive pressures from amazon yesterday and ahead of their own earnings due to hit after the close today. that close, of course, just 59 minutes away we are slightly higher on the broader markets, set for record all-time closing highs once again. >> and i'm contessa brewer in for sara eisen today let's take a look at what's driving the action today divergent corporate expectations for 2020, at jetblue and eli lilly forecast a strong ye