there hasn't been an introduction in years and we think they'll get approval this year and the stock will go higher. >> and john? >> brian, beginning of december, jim cramer and i talked about shopify, shop. i mentioned it from usual activity jim said they're approached all the time take a look at it. >> that does it for us "the exchange" begins now. all right. thanks very much here's what's ahead on the show. stocks hitting all new time record highs again today as the market tries to finish a record-breaking decade on a high note a record high note should investors fear what could be ahead or just ride this wall street wave to the upside plus, amazon's off the charts growth. the stock is up more than 120,000% since it went public. but will the 2020s cool the bezos boom >> and a head scratching story about auto lending that will bring you back to the seeds of the housing bubble

that is all ahead but we begin with seema mody and the market action today seema, it was record highs to start. we're not there yet, though. >> yeah. that's a great point, dom. three hours left in trade. take a look at the screen. we're actually losing a bit of steam. nasdaq now down just about three points s&p 500 higher by four and the dow jones industrial higher by 64 points. nasdaq, if it gets back into positive territory, it would be on track for its tenth consecutive close. that would be the longest strea since 1997 and it really has been a strong weak let's break down when stocks have been leading the charge as you can see, it is primaril technology apple. intel. amazon in fact, amazon stock now playing catchup on track for its biggest one-week advance of the year in response to those strong holiday shopping sales stock up about 6%. also, want to draw your attention to shares of nike. sitting on yet another record high this afternoon. consumer edge overnight raising its price target and initiating

coverage with an overweight rating and yes, some analystis saying this is very late to the game. up 38% this year but analysts there, they think this company can continue to benefit from the consolidation that we're seeing in the brick and mortar retail space. dom, back to you. >> seema, thank you very much for that update on the markets as she mentioned, nike hitting new high today along with a host of other household names including facebook, apple, j.p. morgan chase, and microsoft all hitting new highs today. but it's not just the usual suspects rallying this month check out what's happening with the oil services sector. now, back in august, it hit a 52-week low. in december, it's roaring back up around 15%. so should investors be looking at these rebounding laggers as we look ahead into 2020? let's ask kim forest, chief investment officer at boca capital partners also, chief investment officer

of greenwich wealth management kim, we're going to start with you here we mention some of those household names. we also mention energy and oil services how much of that energy trade is going to be a big theme in 2020? >> i think investors really, really want energy to be a big trade. but i also fear that it's globally oversupplied. and while the rebound is great, i don't think i would ride it on up past this point. >> interesting because the prices have been rising steadily we're still not at 52-week highs. but han, there is a case to be made that energy has gone down so far that it could be compelling at this stage is it right to think that it could be poised for a bounce next year? >> yes, i think it is right, dom. i really like energy we've seen a nice rally in oil prices but energy related stocks haven't kept up with that. so i think they eventually will catch up so i think it's a good time to get into these names they are very oversold i've been adding xle to many of

my portfolios. an easy way to do this using an etf. so yeah. i think energy is a good place to be. >> vahan, are there places in particular besides the etf market exploration and production companies? is it the large integrateds? is it offshore drillers? where exactly can that relative value still be found in energy >> well, one stock i really like is murphy oil. it's an oil exploration and production company their last earnings report was better than expected i think they're in the midst of a nice turnaround. so i think that stock is still undervalued. and has a nice dividend. but as far as the bigger integrated companies go, i also like exxon mobil i think that would be a good stock to consider also with a nice dividend. so i think stocks like this, individual names, are good things to add to your portfolio. but again, the easy way to play it is with an etf. >> all right that's the contrarian play

because it's obviously been a lager so far this year kim, let's take this back to the leadership nasdaq, 9,000. its tech and communication stocks that are doing all the heavy lifting. we know the mega cap names out there. can those names in the nasdaq still be trusted on to continue this trend higher? >> i don't think anything is trusted. but i think you should look to the technology and data supplier kind of area for your portfolios and you might want to go down not just in those big names but the next rung lower to try to find some undiscovered values. but our society is moving in -- in a direction of everything being connected. and the things that connect them, semiconductors and the data companies, which are now telephone -- the old telephone companies. i think they're important. and they are center pieces of our economy that we build whole businesses around. and you just can't ignore that. >> so, kim, let's put -- let's

put names to this. what's on the shopping list for you? what names go on that list in 2020 >> sure. well, i still love -- and it is a bigger name -- intel and it's funny the show before, you know, somebody was pounding the table on intel and i'll join that i think it is not well understood why you should own this name because people think of pcs and intel and i think that they're expanding their market the other thing that i really love about intel is they own their fabricating plants and i think there's a whole lot that investors can get out of that because they -- there's a lot of engineering know-how that gets passed up and down the value chain there. and it should, in time, end in better margins, which is always better for investors. >> tech leading the way again. thanks, kim forrest. we appreciate it well, this got our attention, folks. china, russia, and iran are set

to hold joint naval drills in the gulf of oman it's a headline in the past that may have rattled the markets but for some reason, these days, geopolitical risks and tensions are not worrying investors at all. could that change in 2020? let's bring in admiral james devritas, former supreme ally commander at nato. and we've got michelle caru caruso-cabrera as well michelle, we got to start with you. you've been watching so many of these risks for so long. are there certain places in particular that you think will ring the bell for investors in catalyst terms in 2020 >> it depends on if there are surprises that -- that obviously as a surprise we don't expect. right? you can look at 2020 geopolitics and say what are the priorities of the trump administration? what are the risks the priorities are going to be, still, china, russia, iran, and north korea. what are some of the risks what if we get a cyberattack that hurts our critical infrastructure in some way how long does it last?

how much does it reveal any weaknesses that we have? that could be very destabilizing for the markets. but i think the reason you don't see the markets reacting to the news you just talked about is because we've become very aware that those three countries are an issue and we have to see them in a different light than we did five, ten years ago. >> i mean, admiral, michelle brings up an excellent point here it's been the last few years that north korea was hocking missiles into the ocean. iran and the issues in the gulf have become perhaps desensitized there. is there anything in your mind that represents that true, unknown risk that really rattles things next year >> i don't think completely unknown. but let's take the two cases at -- on discussion here one is iran. recall just a matter of months ago, iran was attempting to sink tankers, was shooting down drones and most critically, attacked the saudi oil fields

they certainly have a lot of capability in the bank and look for them to make that move and, frankly, these naval exercises are showing the world that china and russia are going to be more supportive, perhaps, of iran than they have been in the past so i would watch that closely. and for investors, i'd watch the arabian gulf watch what happens at sea. on the other side of the world, north korea, we were looking for the christmas surprise who knows? maybe it'll be the kwanzaa surprise or the hanukkah surprise they've got until new year's but i think there will be a surprise on the north korean side of this because, again and again, we've seen kim take an unexpected turn in events. and here, i'm really with michelle watch for cyber. both from north korea and for iran so i think there is potential out there for a variety of unfortunately unpleasant surprises. >> so all those names that you mentioned, michelle, they're in a graphic behind us right now.

geopolitical risks to the rally. you mentioned russia, china, iran, and north korea. admiral just agreed with you cyberis going to be key. >> uh-huh. >> among those, who should we fear the most on the cyber side of things? is it iran north korea, we know they have an army of hackers out there. >> i think all of them russia clearly has the desire, the where with all, they've demonstrated that already. china, we know has been stealing intellectual property via cybertheft for a very long time. the -- the will to really hurt us comes from iran if you want to worry about infrastructure that could be -- what if they do something to the water system what if somehow electricity gets permanently shut down? or shut down for an extended period of time what if we can't communicate via the internet for days at a time? how would we even work here at cnbc, right? when i talk about that being the biggest risk, it's because, gosh, containing it and constraining it and us reacting to it is -- is something that we

haven't done yet as opposed to we have been dealing with russia and china and iran in conventional terms for a very long time. >> all right we're going to leave that conversation there i -- admiral, i'll give the last word to you. >> yeah. just one -- one additional thought here is, we're heading into an election year. and, therefore, the cyberplay here is going to be magnified in that rarefied air leading up to november 2020. so i think michelle and i would agree here in cyber, we have the greate greatest mismatch between level of threat, quite high, and level of preparation, which is not so good all the other things we've talked about, preparation is pretty good. watch cyber in 2020. >> let's see if our government and officials have learned anything from what happened in 2015 to 2017 michelle, thank you very much. admiral, thank you very much for your thoughts. well, here's what else is coming up on the show coming up. amazon's had a monster decade. will the momentum continue in

2020 california is going the way of the eu. and it could have a huge impact on tech companies. and applying for an auto loan be sure to read the fine print this is "the exchae"n bcng o priority. 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.

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amazon reporting a record holiday season

add that to the already-booming ecommerce business and it spells potential game changer for the year in the delivery business. frank colin joins us more with what to expect in 2020 for amazon >> 2019 is on pace to be another record year for ecommerce. with holiday online sales forecast increase as much as 14% according to the national retail federation and the trend is expected to continue in 2020 here's what to watch. >> first, ecommerce exceeds expectations. >> the global ecommerce market could grow to $4 trillion in 2020 according to ubs. but has the potential to be even larger as more retailers offer same-day and next-day shipping, along with added curbside pick-up options. also, total sales made by smartphone are expected to increase by 32% next year, according to emarketer. >> second? amazon acquisitions. >> amazon's ecommerce empire is built on strong logistics on the ground and in the air.

amazon currently operates about 50 planes and expects to have 70 flying by 2021 look for acquisitions in 2020 as it continues to grow its capacity for ground logistics and delivery. >> and third, drone delivery. >> fedex and ups are battling to be the leader in residential drone deliveries both companies are testing technologies with drug store chains to deliver prescriptions and retail goods amazon and google also have their eyes on the skies when it comes to shipping. 2020 may be the year ecommerce takes flight in a whole new way. >> all right thanks, frank, for that. meanwhile, amazon shares higher today after posting their best day since january. and set to cap off this decade with a truly amazing run here. get this that stock is now up nearly 126,000% since amazon went public back in 1997. so will the 2020s be more of the same for more, let's bring in steve, managing director of wolf

research also, dan gallagher of the "wall street journal," as well so, dan, let's start with you. set the stage for us here. this amazon story has been massive over the last 10, 15 years. does it continue in 2020 >> i think 2020's going to continue to bring very strong growth, especially for a company of amazon's size but i also think that growth is going to be more expensive to come by and more challenging amazon sales growth has already been decelerating over the last few quarters and i think that's going to continue because they're facing more competition in the cloud. more competition in retail so this is a company that, while they've averaged over the last ten years, you know, about 28% annual growth, i'm not sure i see that going ahead in the next ten because, one, they're so big. and the other is, there's just more -- more competing on all sides for all that money. >> all right so, steve, i mean, this is interesting. the last quarterly report for amazon showed that the amazon web services division, their crowned jewel of growth, is still growing rapidly. but just at the slowest pace in

years now. should we worry about the growth story at amazon? or can that number really start to propel amazon shares into the next decade? >> first, let me say that my colleague chris covers amazon for us and he has an outperform rating from a tech strategist perspective, i think aws still has a lot of growth ahead of it. andy, who runs that business suggests that only 3% of workloads have moved to the public cloud most investors would size it more 10 to 15% but the point is we're still in maybe the second or third inning microsoft azure is clearly catching up but it's still about half the size. jassey thinks aws has a 24-month lead, particularly in features so i think this is going to continue to power the company. in fact, it's probably worth almost half the market cap today. >> so, steve, if it's worth about half, how much do you think of the stock price appreciation for amazon over the course of the past, say, two or three years has been driven because of aws and how much because of that retail businesses actually

scaled toward some semblance of profitability that can be maintained >> i would guess maybe two-thirds of the appreciation has been in aws. now, you questioned some of the margin pricing pressure we could see. in our surveys, we find users are still more focused on features than cost so i think they're going to continue to do well. but obviously, the growth is going to come down somewhat over time amazon is really two platforms it's a transaction platform with third parties on the retail side and then it's a innovation platform with aws and the very strong ecosystem and amazon still, we think, has better scale than competitors. network effects. and switching cost all which will benefit the company over the next five to ten years. >> so, dan, i wonder -- i mean, from a competitive perspective, you brought it up. let's talk about comp -- competition on the retail side of things. you've got the likes of target and walmart actually making huge strides in omni channel and ecommerce. it's been driving their stock, obviously. and then you got the aws side of things you've got azure, google cloud, other cloud providers. also starting to gain ground on them which is the bigger competitive

story in the next year >> i think cloud is the most -- is the bigger story in terms of competition that could affect how amazon is valued in the market because like steve said, a lot of the appreciation we've seen over the last few years has been primarily from aws and the way the stock has performed over amazon's last two quarterly reports, it's gone down and that's because those aws numbers haven't come in the way the street expected. so i think that has kind of an outsized impact on how amazon's market value ends up and so -- and when you have microsoft and google and a lot of other cloud players really driving hard for that kind of money, for -- for those dollars, and a lot of potential cloud customers now see amazon as at least somewhat of a threat because amazon is getting into so many businesses that affects their calculation of who they're going to do business with in the cloud and that's usually a leg up for companies like microsoft and to a lesser extent google.

>> all right dan gallagher. steve, thank you very much for those thoughts on amazon great to get your thoughts donors are saying whoa to elizabeth warren whoa her latest fundraising numbers coming up. plus, early employees of facebook were able to cash in big on their sweat equity. but as startups stay private for longer, that payday is further away that's coming up later on "the exchange." deeper data at cnbc. gasoline consumption in the u.s. gained 0.3% in the week ending december 20th compared to the same weea ark ye ago that's slightly higher than expected

welcome back to "the exchange." here are some of the stocks on the move this hour you've got flexion therapeutics soaring today after the fda approved a revision of the language of its label. that stock is up more than 10% in trading today you've also got shares of the michaels companies climbing more than 17% after it named walmart executive ashley buchanan as president and ceo. the company also announced the departure of its own cfo and it is a different story for rh those shares falling by more than 6%. that stock will be joining the s&p mid-cap 400 from the small-cap 600 prior to the market open on january 2nd now, let's send it over to bill griffeth who's got a cnbc news update. >> thank you, dom. here's what's happening at this

hour anti-government protestors in baghdad gathered to celebrate the president's decision to reject a kacandidate for prime minister who had been backed by pro-iranian lawmakers. this to avoid more bloodshed and safe guard civil peace those protestors had demonstrated against that candidate. back here at home, 28 states are now reporting high flu activity according to the cdc. that's up from 21 states last week so far, there have been at least 4.6 million illnesses. 2,100 deaths from the flu this season a mansion built more than 120 years ago has gone up in flames aerial video shows the blaze in concord, mass. the home was built back in 1897. it was appraised at nearly $3 million. and last night in oklahoma city, thunder mascot rumble the buy son made a special courtside visit. rumble presented her with a bouquet of flowers she is an oklahoma city native

just taking in the game. unfortunately for her, though, the thunder lost to the memphis grizzlies, 110-97. i'll see you momentarily, mr. chu. >> yes, for rapid fire bill griffeth. here is what's ahead on "the exchange." ahead, tesla has big plans in china sports betting gives atlantic city a boost and bosses aren't getting 'sllhe o"tt raises it a aadn he exchange." 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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all right. guys, let's catch you up on a few stories. it's time for rapid fire here with their takes, brian sullivan, seema mody as well and also bill griffeth first up, folks, team, we got tesla announcing it will begin deliveries of its model 3s built in shanghai starti monday. production in the chinese factory started in october the ultimate goal here is to produce 250,000 vehicles a year from that shanghai location separately, there is a regulatory filing showing tesla has new agreements with chinese lenders for a loan of up to $1.2 billion the loan could be used for the shanghai plant or to pay down debt all kinds of things.

there's so much to talk about. >> let's review here they didn't buy that land until january. this last january. then they started the construction of this -- of this facility and they started to bring cars out in october and now, they're delivering. >> 15 of 'em, hopefully. >> you know, the u.s. auto industry works, what, five years ahead. their -- their lead time is unbelievably long, it seems. but for tesla, they turn on a dime and start building within the year. >> and their first manufacturing plant outside of the u.s. i think if you take a step back, this is, in general, a good case study of how a company, a foreign company, can get access to the very powerful chinese consumer you set up a manufacturing plant. and you also take out a loan from a consortium of chinese banks. i mean, by the way, setting up and investing in a country is not unique to china. even in india, too, if you want access to the indian consumer, apple had to do the same thing. >> two things. number one, you've been to china

a lot more than i have but i've been there. where are the charging stations going to go? >> they're building those. >> there's no room. >> sure there are in those empty cities they have out there. >> all those ghost cities. seriously, people don't have garages. not like america where you can just throw it in there you know what the market cap of tesla is right now i'm not saying it's overpriced 77 billion you know what general motors market cap is? 52 billion tesla's market cap is 30, what, 5% more than general motors on one-fifth the sales. of course, gm's got a lot of debt. >> we are not in the 20th century anymore, toto. i mean, that's what it comes down to. >> would you drive one >> what? >> a tesla. >> i drove the tesla roadster. the first one. i didn't own it. somebody let me drive it around. >> would you buy one >> i -- i would. >> as our resident car guy. >> i do. i would buy one. i don't like the looks of the 3. i think the model s is a spectacular looking car. i think the model x is an inflatable bug. >> how about that truck?

>> that mon trmonstrosity. >> wages, been rising for a while now thank to a red hot economy. rank and file workers getting their best bottom line boost in more than a decade wages for the bottom 25% rose 4.5% in november compared to last year. while pay for the top 25% of earners rose just 2.9% now, here's the math the math, the simple math, is when you make 2.9% more and you're making a six to seven figure salary, it's still a lot more money that you're making. but it does -- >> do you know firsthand >> no, i do not. but it does show maybe a trend is changing. i'm one of those other folks. >> this is classic late cycle trend right now. to see wage earners in the mid-range and lower range. you know, getting their due at this point and let's not forget come january 1st, the minimum wage is going up in 21 states.

this time around as well. >> i will say this you go back. i looked at the data wage growth was 5.8% in the late '90s so we're in this red hot economy but still, wage growth isn't what it was back when pets.com and worldcom and all these companies were doing great. >> this is a big story for the economy because as you point out, the economic story has been low unemployment but wages have not been growing at all. actually, that story is very similar in the uk, in japan, in australia, as well so to actually see wages rising and specifically for consumer that many times says they have been left behind, is a good thing. >> so what -- what keeps that trend in place, guys i guess is the real thing. i mean, we've got this kind of gain marginally in those wages how is that sustained? is it training is it other kinds of things that have to happen for -- for -- for these particular workers to say that, hey, you know what, we're actually closing the gap from a pay standpoint. >> certainly, education is important in that regard and -- but i mean, i don't think

we're even talking necessarily just about skilled workers you know, there's still a shortage of those out there. so we do need to have more education to bring those skill -- more skilled workers online but we're talking about some of the lower end, as well, that are getting these pay raises which is about time. >> we need geographic mobility i've been arguing this for years. as all these people that are in the upper midwest that either are underemployed or unemployed, there's all these jobs in the southeast. they're perfect matches except the person in northeast ohio can't sell their house. >> how do you do that, though? >> create a transferrable mortgage i don't know there's got to be some way to get the people to where the jobs are. >> you know what country's really good at doing that? the chinese. yeah it's actually a state program. they really help some of these -- they help a lot of citizens from tier three, tier two cities. >> but sometimes they're like, come on, you're moving. >> we're going to be like china? is that where you want to be >> you're moving now. >> just giving you an example.

>> this is where the new monorail's going. >> but my family's been here 500 years. >> not worried about it. >> anyway, topic three, guys, this is a big one. new alarming headline at this hour on senator elizabeth warren's quest for the democratic nomination for president. her fundraising numbers are plummeting cnbc.com's brian schwartz breaking the story just in the last hour or so. he's going to saunter on set right now and join us. >> welcome. >> brian, welcome. thank you very much. so take us through this. how alarmed should the democrats and senator elizabeth warren be? >> well, senator elizabeth warren should be concerned she -- her campaign is saying she saw a drop in fundraising compared to last quarter where she raised $24.6 million this quarter, four days left, she's only brought in $17 million. that's what her campaign told a bunch of supporters in an e-mail we obtained here at cnbc what that could suggest is many of these kind of progressive policies, the wealth tax,

medicare for all, may be hurting, you know, her entire campaign finance situation going into the year 2020 which is a critical time for her campaign. >> this is also interesting, guys, because we just came off story when we talked about the idea that a certain segment of our economy and workers are actually starting to make more gains in terms of wages. so does all of that maybe hurt the narrative from folks on, say, the left to really left about the state of the u.s. economy and workers in america >> i don't think so. you're not going to change any minds. i mean, people are set the way they're going to go. the question i have for you is so she's down 30%. how about the other candidates is this a trend? or is she alone in seeing lower fundraising? >> we don't know officially yet because many of the candidates haven't come out with their totals yet but there is one note here former vice president joe biden announced a few weeks ago he actually is seeing an upstick in fundraising compared to last quarter. they are saying they've raised more than that the campaign itself. so, you know, this could

suggest -- >> do we think there is a mike bloomberg effect >> or is it mayor pete >> or is it called christmas people just don't have the money to donate because they're buying legos. >> it could be all those things. pete has been doing really well. a mix of business executives but also small dollar donors bernie sanders also has a pool of these small dollar kind of $1, $2 donations from elizabeth warren she's been trying to take from him. bernie sanders, that is. so it could be a whole number. could be the christmas season. but does not look good. >> here's my question then let's say this is the case and elizabeth warren needs to right this ship. what needs to happen in her camp to make sure she gets those fundraising numbers back up? >> i think she's going to have to make a serious decision, right? elizabeth warren, when she was in the senate, did do big money fundraisers. let's not kid ourself. she is kind of syphoned them

off. she's kind of gone away from them the question she's got to ask herself in 2020, is she going to have to go back to them if she isn't going to get enough dollar or two dollar donations to kind of surge back to where she was >> some of the private equity has a -- any idea who they're backing? >> they're going into joe biden's camp right now she doesn't have a lot of time, right? with a lot of these attacks. >> basically said i want to end the private equity business. so if you're a private equity executive, you're not -- let's vote for the president who says they want to end our industry. a lot of oil and gas ceos aren't voting that way either end fracking. >> it's going to be a big deal for sure, guys brian schwartz, thank you very much and by the way, go to cnbc.com the full story is up there including other comments from the elizabeth warren campaign e-mail topic four new jersey's legalization of sports betting has now boosted the fortunes of two big players

in gaming. atlantic city and online casinos as well. atlantic city casinos and their online partners have raked in over $430 million this year from virtual games like roulette and blackjack. that's a jump of roughly 60% from last year. >> this is when we all look at brian and go, brian, is this you? >> the numbers are going to get bigger and i'm going to tell you why. i've talk today people in atlantic city, people that own casinos. it's hard to gamble online from a payments perspective straight-up visa and american express, you're not usually allowed to fill your bank with those cords. payp paypal struggles a bit with it too. you sometimes have to buy kind of a debit card. so it's kind of like the cannabis business. primarily, still a cash business the act of moving money around from player to casino online is still hard when they figure out how to streamline it, those numbers. >> you think about a partnership with a company like paypal or square you know, venmo.

but what i mean is when you start to facilitate those trades and transactions in an easier way, then that opens things up right? or is this just about sports betting? really drawing people in. >> you're catching me off guard with this. why -- why would payment, ironically, be a hindrance in this whole thing >> it's just an issue. >> who is the reluctant participant here >> i think it's the global payment system i don't know the mastercards. the banking system. >> what do they care it's money flowing. >> i've bet a little bit because i wanted to see how it worked. and hedge out some other stuff. >> research. >> exactly if you want to put money into a bank at a golden nugget or mgm or whatever it is, a, you've got to live in that state. they put a geographic locater. you know what i'm talking about too. on your computer to make sure you are actually in one of those states but the act of moving the money, you can't just -- it's not like buying something online. i can't use my american express or whatever it is to just -- >> fill your bank. yes. >> there's some sort of issue with the banking.

>> that's crazy. >> so once they open that up -- >> there is also regulations and laws about using credit facilities to finance -- >> to gamble. >> and to be fair, i'm not going to go to the dealer and be like here's my amex, give me $10,000. i'm 14 cocktails in. no thanks. >> the online and sports gambling has revitalized a lot of atlantic city it wasn't that alolong ago they were a ghost town. guys, thank you very much. new law in california aims to rewrite the rules of the internet and in the state and it could cost businesses billions of dollars jane wells back in los angeles with that story. jane >> hi, dom starting new year's day, they are raising the bar here in internet privacy in a law that could go national. by one estimate, it will cost corporate america $55 billion to comply we'll have that story when we come back. sure, the content's easy. but then you have to connect,

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welcome back let's get a quick check on the markets. you can see the dow industrial's off at their highs of the day but still up 46 points the s&p just about flat on the day up about one point and the nasdaq is actually in the red off by about one tenth of 1%. 11 points to the downside. by the way, the level because we're paying attention, 9,010 and change. >> more transparent for users but it could cost big businesses as much as $55 billion jane wells has the details and what it means for the tech sector jane >> oh, and not just tech everybody. look, if you're a company already doing business in europe with their strict internet policy, this is no big deal. if you're not, this california situation is a huge deal and companies are scrambling already californians like me are being inundated with e-mails from companies saying this new law is happening what is it well, starting wednesday, if i go to the home page, not the app but the home page for, say, starbucks or google or costco,

it should be clear to me what they do with my data there should be a button for me to opt out or i can even tell them to delete my data and i can demand to know how much data they have. allegedly, that's what is supposed to happen now, this being california, there are all kinds of things. google's already trying to change its policy. facebook is pushing back on what it thinks it has to disclose online and if the federal government might step in again because it's the trump administration, say, hey, wait a minute what are you doing >> what we hope, though, is that the federal government will at least, as they say in medicine with the hipaa oath, do no harm. do not undermine the rights californians today will have to protect their privacy. >> and individual companies can be paying anywhere from 50 grand, dom, to $2.5 million just for this one law to be compliant. back to you. >> all right so how do you know if you're a

company in california, how do you know that you have to comply with these particular guidelines is it a size thing is it a locality thing is it -- how do you know that these rules then apply to you? >> first of all, you don't have to be in california. you just have to have one customer in california and there is three criteria basically. one, either you make at least $25 million a year in revenues or you have data on at least 50,000 customers or you make at least half your revenue selling customer data. so facebook is pushing back. clearly, facebook already qualifies for the law just by the rechb knvenue alone. but facebook isn't thinking it has to disclose that much on the home page because it argues technically under the law, it doesn't sell your information, it shares it and somehow it makes money on that. >> i don't know, jane. it just raises a lot more questions than i think it answers by the time -- but who knows? we'll see what happens with this jane wells, thank you very much for that update. big tech under fire again from

the state of california. well, as the unicorns that went public this year, more startups are staying private for longer forcing employees to get more t.eative about how they cash ou this is the rise of the secondary markets and it's coming up next community of problem solvers. we make ideas grow. from an everyday solution... to one that can take on a bigger challenge. from packaging tape... to tape that can bond materials to buildings... and planes. one idea can unlock a breadth of solutions. at 3m, we are solving problems that improve lives.

well, with companies staying private for longer, employees at startups are grappling with the fact their public market pai day may be years away as their financial futures stay tied up in sweat equity. dilemma is kate rooney i thought it was easy for private company employees to sell their stock on the secondary markets to mutual funds, wanted to buy them and everything else. it's not that easy >> it's easy to find buyers because you have a ton of venture capitalists interested they'll happyfully by shares from a start up employee from the actual employee it's much higher. they trade between 10 and 20% lower than the ipo price or the price they are actually worth because of these secondary markets. you have imperfect information so you don't know how many shares are out on these markets. it's hard to find fair value

if you're an engineer, for example, you might not have a financial background you might not know how to value your own equity and then you have your common stock is not worth nearly as much as some of the potentially series a investor stocks. that stuff is impossible to find out about unless you're maybe in a sea sweep. >> is there a way then, is it almost like if you're an employee of this company, you still need public markets to make sure that you can monotize that transaction or find price transparency i thought you were trending toward the public markets. you can transact among private party and it will be fine. i think on the buyer side that's true >> find the right price and the diligence on a deal. say they want to go and buy a house, they can't wait the 13 years on average that it takes a

company to go public they don't have in options people are offering things like contractors saying i will pay to buy your conneequity or in the of an ipo or five years we'll get to you these examples of forward contracts or futures >> do you think that takes the options away from the equity packages you get from going to work at these private companies? >> a few recruiters say that's something they will thinking about. they will have to put a chart on the offer letter that says this how much your equity is worth. they do things like tender offers where they will offer to employees we're doing a fund raise. we'll keep 100 million of that so you can sell your shares versus us selling a portion of the company. it works for both of them. i think start-ups have this in mind knowing that start up employees like air b and b mention this and said to their

employees we'll do this as part of a fund raise. they have no give their employees more information >> almost sounds like hedge funds and gates and everything for taking money out thank you very much. car buyers be ware some dealers and lenders are doctoring car loans and it's hurting customers. t to business, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. (second man) virtualize their operations. (woman) and build ai customer experiences. (second woman) we also keep them ready for the next big opportunity. like 5g. almost all of the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready.

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the air waves right now are flooded with glossy ads for new cars, big bows, cheering kids. some says auto dealers are fudging loan president clintoapr buyers, putting them in cars they can't afford. how big of a problem is this let's bring in the wall street journal reporter who has opinben doing this story ben, when i saw this, i thought this cannot be happening they cannot be lying on loan documents again to get people into sates, bassets but they ar.

>> it's a situation in which people need cars people need a loan to get the car and in order to get it done sometimes you have to lie on the application. you're seeing dealers fudge the numbers to get the loan approve. >> they are compensated by the number of cars they sell the financing arm enables that how is this being done because of the way that these dealerships and financing arms operate with each other? >> what you're seeing is more and more people need a loan to get a car. that's theobstacle to get the car and drive off the lot. the dealer fills out the credit application and gets you approved for the loan. in other words to approve you,

if you need to have a certain income level, but you don't, the dealer can make up the number. you're seeing an increasing number of cases where lawsuits and regulatory actions where people are cracking down on this action >> people are getting into vehicles they cannot afford. say i only have $500 a month but because of my loan aggressive dmatid documentation, i'm paying $700 on this. how are financers managing that risk if they know there's this kind of behavior happening at dealerships? >> right there is an issue we spoke with one person who ended up getting car loan that had a monthly payment that was more than she made in income you have no disparity there. it ends falling to dealer to make sure the documentation is correct on the loan and make sure the person income when it stated being a certain level is

at that level. increasingly these lenders just are not checking incomes, they are not verifying. when you get a mortgage you might need to get, put your w-2s and bank statements and other things that prove you have the income that's stated on your income with car lenders, it's not quite the case >> we're talking about specific cases. it's stuff to know how often this happens it's unclear where this will land >> these days car loans go out five, six, seven years it's going be a big trend to

watch. thank you very much. it's a story we'll be watching for sure just on the lending market overall >> that does it for the exchange hope you guys are hungry because power lunch begins right now thanks new at 2:00 on power lunch tech stocks poised to close out their best year in a decade. is it time to rotate out or should investors keep piling we'll debate will streaming kill the box office we'll go inside the big screens 2019 decline and see what the studios can expect in 2020 check out this mystery chart. the latest on this overlooked part of the nasdaq's race to 9,000. we'll see if it will keep delivering in the next decade. power lunch starts right now >> we do welcome you to power

lunch. the dow and s&p are still high nasdaq has stumbled. you see the russell is down as well today the nasdaq has had a stellar month. we'll talk about that in a few months bob, is at the new york stock x exchange and frank will check in bob, first to you. >> good to see you what we have got here this week and the last couple of weeks, call this a classic santa claus rally. we have low liquidity. just slow quiet melt up in the last couple of days.

we're very over bought if you look at the last couple of weeks in terms of the rsi, you go over 70, you're over bought it hasn't been that high in almost two years you'll get some serious resistance we have break out new high several hundred, almost 220 new highs here lot of big industrials like caterpillar, united tech all breaking out i'll tell you how you know you're a little over bought when you start seeing energy stocks the worst sector this year, the worst sector this decade, they are having a moment. oil is up krecently you know people are starting to pick at the bottom we'll see if the lasts going into january >> a day after nasdaq 9,000,

tech stocks continuing to move higher nasdaq is on pace for its 12th straight higher close. frank is at the nasdaq with more >> that will be the longest winning streak in the decade going back to july 23rd, 200 when the nasdaq stood at 1973. for 2019 when you talk about fan fwr fang, it's been kind of split. ross stores and starbucks right within a percent pretty close this was a really big year for ipos ipos in the medical space have been much better performers.

that includes like karuna therapeutics nextcure and inmodes. these are smaller cap stocks amd improving by 150%. back over to you >> thank you very much let's rerue one more time. most of them hitting highs the dow is on pace for its 22nd record close of this year. the s&p for its 35th record close of the year. if the nasdaq finishes positive, it would be its 32nd record close. will the record run keep going into the new year or are we due for a january pull back? good to see you both we have talked about all these

records just stair step gains. no major rallies to speak of can we keep that kind of incremental gains going into the new year what do you think in. >> i don't think so. i think you look at the market and it's add as it gets. i do see growth keeping ongoing but we're going to see a slow down i think the market is too confident. >> lamar, what do you think in. >> i agree with the confidence right now it seems like everything looks great i think there will be a resolution i think we'll start to have some real volatility. i think that will be the key to look forward in 2020 especially as the election rhetoric picks up >> lamar, as you watch the election and perhaps other factors driving volatility, where do you think there's an

opportunity? where do you hope to put that cash next year >> we'll take the opportunities as they come along it tends to be whether it's medicare for all or whatever the trends in the conferences are that's where you start to see certain names rise and it's time to turn back or see certain things get beat up which is what we saw with the medicare for all conversations. that's why we moved into a company called e health. >> what opportunities do you see? do you these these tech valuations will just be too high next year? >> i think that's just it. i think not all trees grow to the sky. every one has been chasing growth that's great at the same time the relative valuations of value stocks are at an almost time low on a

relative basis it makes too much sense. we're already starting to see value stocks and value sectors start to out perform we have seen utilities come through pretty well. we see consumer staples. that's where the big story will be next year >> what about inflation? i know we have talked, the federal reserve just itching to get this inflation back to 2% to know avail at this point wages are still going up right now. they are expected to go liar next year especially at minimum wage level oil prices have suddenly come back again they are expected to continue higher as opec cuts rates. are we going to be talking about inflation in a different way next year, do you think? >> i don't think so. we'll see inflation go up but that's what we want. we see inflation go from one and a half to two and a half, the fed have said they will let it run hot a bit. be fed said they will keep backing off. it may go up but it's not going to change the fundamentals it's not going to change the

story. >> what do you think lamar >> i think the feds try to get some more inflation and it is ironic if we hear a lot of conversations about minimum wage increasing, i think you'll have some inflation risk on the higher side but so far i think the fed really hasn't been able to control things on that front. >> lamar, brad, good to see you. thanks for joining us coming up, streaming has turned the movie industry into go big or stay home. even disney will be hard pressed to match its list of 2019 blockbusters what's in store for next year? we'll tell you next on power lunch.

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welcome back net nflix has had a strong year and a stronger decade. so much so it has rattled movie industry to its core according to the latest numbers borks office revenues projected to fall 4% in 2019 that would be the sharpest decline in five years. will netflix and the other streaming services keep disrupting the movie business. here with us now is vp of con

tent strategy and editorial director at box office media thanks for joining us here today. >> thanks for having me. >> we have seen a 4% decline this year. the outlook for next year is not great. we have fewer big franchise films. how bad do you think it will get next year? >> i don't think it will be a critically bad year. i think it will be a natural decline mostly because the disney slate isn't strong next year instead of this year. i still expect the industry to hit that 11 billion mark that it's hit over the last several years. >> one been interesting is we saw the disney movies perform. we saw netflix release ten movies since december which has defined the oscar season there's no box office, no measurable box office from those and all of these middle movies sort of middle tier mooevies only a handful have been hits. are we going the lose everything

except for the big blockbusters? >> i hope not. you mention a great point with netflix coming out with ten titles but if you look at the titles they are not the big blockbuster hits i don't think they would have made a huge impact at the box office if we combine all of the netflix release offense this year, i think it would be equivalent to around $350 million. that's roughly around 3% of the market of the domestic box office market. they could help but i don't think the growth of the box office is dependent on netflix movies hitting theaters. >> what about apple? they have been quiet and now we are hearing rumors maybe they

should buy netflix in 2020 >> that's a huge kquestion mark. >> they have been talking to mgm. >> apple is a devices company. they sell phones they sell laptops. netflix sell its own content, so do the studios for a company like apple to jump into the fold and really make a dent, it will take a long time and a lot of money and trial and error to do it on its own >> don't they know that going in they know they will have to have losses even disney acknowledged the losses will be out there for a while especially with them charging so little >> precisely being number two isn't in the apple culture. for apple to be on the map and a leading player, in the short term, it will probably require an acquisition >> i want to go back to this

idea that maybe middle market movies will do better next year. we have seen this investment in premium content for streaming. the mandalorian. one might argue the availability of the opening day of this star wars was less than the last two. you have these premium shows like the morning show on apple with movie stars in them i wonder if you're starting to see not just the content creators move over the streaming and tv but the money as well after a year like this past year when you really only had one hundred million dollar hit, why will studios keep on spending as much on them >> that's a great question the way i compare this is like baseball strategy. you put in all your money into trying to hit a home run every time you go to the plate, you'll strike out more than you hit i think for all the studios to stay in the picture, they have to invest in the mid range

movies that will make 100 million, 150 million that will be integral hitting the singles and doubles for them to be in the picture any studio that will try to be all blockbuster all the time if you're not named disney, i think will struggle a lot in the coming years >> i will ask, after next year, everybody will be online among the streamers that are coming out. who are the haves and have notes, do you think? >> in the streaming space? >> streaming >> that will be a tough question as we spoke about apple right now that's a huge question mark. when do they move? >> they've got to buy something to increase production level >> or keep spending money. it just takes longer >> they need a mechanism to produce those things it's inefficient to have to go with an individual producer every i think single time.

>> don't forget viacom cbs we'll continue to see this evolve. i think streaming will be a huge story next year. by 2021 we'll see who the buyers are a and who the sellers are. i think we won't be able to know that until we see how this year plays out. >> we talked about the challenges with streaming and everything else. who will be the winners next year year >> besides james bond. >> we have a lot of confidence in warner brothers next year they are we bourebounding they have a new chief executive. it opens the conversation to more women coming in and directing more movie, more female driven films hitting the box office that not only goes to big blockbusters like wonder woman 1984 that's coming out

you look at a movie like hustlers from mid range orient that did over a hundred million. we know the audience is there and i believe more women will be coming out and making these movies having the leading voice in these movies. i think the future of the cinema industry will depend on not only women but also minority and diversity voices coming in and making content that gets a wider audience >> absolutely. that's the audience. you have to make moves that stel the story. >> thank you for joining us. it will be a fascinating year. oil has been on a strong run into the new year, up 10% in the past three months. what lies ahead for energy in 2020 we have play back on that coming up amazon up 6% just this week. big move in a stock that size. has it run too far at this point? our traders break it down, coming up on power lunch

steyer: i'm about to say two words

that will make washington insiders very uncomfortable: term limits. you and i both know we need term limits, that congress shouldn't be a lifetime appointment. but members of congress, and the corporations who've bought our democracy hate term limits. too bad. i'm tom steyer and i approve this message because the only way we get universal healthcare, address climate change and make our economy more fair is to change business as usual in washington. welcome back to power lunch.

amazon having a great week up about 5% on back of what it said was a record holiday shopping season on its platform. a meaningful break out for the stock. what is next probably really not news that there was record sales it's pretty much a given any year for amazon. the fact the stock responded to the upside to that generic ed line means something after a long stretch of real underperformance by the stock. where does that leave it >> it's kind of a key juncture how it reacts in january will be very important as you mentioned, it's funny because amazon is not always a great indicator for what the consumer is doing. the stock has done nothing for five months. that's because they have ramped up their spending on their own company. you look at the chart and it has broken boabove its moving averae more importantly it's broken above that sideways range that

you mentioned. that's positive. the one concern is part of this move this week has been exacerbated by the very thin market it's due for a bit of a breather on a longer term basis you look at the weekly rsi chart it's getting very overbought. the last two times it was this overbought it was filed by a severe pull back on the stock. i'm going back to that movine i average. does it break below that 200 moving average if it can bounce off that level and make a new high the stock will explode to the up side and return to the leadership in the first three quarters of 2018 and the first half of this past year january will be important for how the stock trades really for the rest of the year >> tactically do you want to keep an eye on how resilient to stock is but steve, bigger picture, do you think the story remains intact or how would you approach it?

>> the consumer remains strong you have record low unemployment wages that are raising and interest rates low as we sit today there's no reason to think that the consumer isn't going to show up in 2020 just as the consumer did in 2019. when you look at e-commerce, we focus on black friday, cyber monday but the saturday before christmas which is now called super saturday, that was the best day on record for u.s. retail 34.4 billion in sales which is 10% more than black friday you've got a strong consumer, e commerce is doing well it accounted for 50% of the year over year growth and amazon is leading the bunch. the short term technicals are what they are. over the long run if you think the consumer is strong and e commerce continues to have place that's taking share, amazon should be well positioned as are other e commerce plays >> all right consistent story for a long time we'll see if that persists thank you very much. for more trading nation head to

our website or follow us on twitter. bill, back over to you ahead, are we on the brink of a housing crisis. we'll look at the issues that could be creating a perfect storm next year and california's new rules aimed at getting more women on corporate boards. will they work the hissen horseman of nasdaq 9 now t -- 9,000. the stocks that helped get us there. we're back after this.

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here is your cnbc news update at this hour.

blue and white party leader is calling on israel to set a new course as netanyahu sured up his base with land slide parliamentary victory. he said he's leading the state of israel down a path of corruption the national election is scheduled for march. about a dozen people were injured when a nitrogen tank exploded in kansas a four inch natural gas line was severed. the cause of the blast is under investigation. a new decade kicks off with a new theme atop time square in new york city. workers are removing the crystal triangles covering the ball. they are replacing them with pineapple crystals representing the theme for 2020 >> we're going to replace that with 192 of this one right here. this is this year's theme. the gift of good will. as you can see, you can see the

intertwining pine papplepineapps the pineapple has been the symbol of generosity and good will for generation, for centuries. >> pineapples in 2020. that's the news update at this hour bill, back over to you >> all about the pineapples. the year of the pina colada coming up. we have more records for the most part. the nasdaq, last i checked, had fallen a bit we'll not have a record there if we don't finish higher but the dow and s&p are still higher julia. >> thanks so much, bill. oil prices closing for the day right now. flat today still above $60 a barrel after a strong run to three month highs but overall 2019 wads stis stil tough year for energy. what lies ahead? we have the play book. >> stagnant oil prices selling

the stocks slammed the energy industry in 2019 approximate audiota - all this as the u.s. became an exportser. all this as the race for another kind of development. the so called rare earth minerals just began to heat up here is what to watch for in energy in 2020 first, a wave of bankruptciebans unless oil prices rise the industry and investors may have to endure a number of reorganizations. in companies are struggling with huge amounts of debt built up when oil prices were on the rise unless oil jumps in price, wall street is less likely to let wall street refinance. second, international resources shift. venezuela likely loses control of citgo after years of courtroom battles, the final batstle likey comes in 2020. it's possible the court rules against venezuela allowing citgo

to be seized, auctioned off and bought by an american company or companies. the race for rare earth minerals go full throttle if you want to build a project like an electric car or wind turbine, you need rare elements. these are like lithium china controls most of the world supplies for these critical elements but there are many projects to help the u.s. catch up this will be the battleground to watch in 2020. >> will the bond holders and banks allow flu credit new credt facilities to refinance the debt if they don't, watch out >> do we know the price level they need to achieve >> if you got in the business the last 10 or 12 years your

cost basis is high you paid a lot of money. i love e lek tlectric cars, sol renewable. you have to dig a lot of minds to get the stuff out of the ground >> stick around. we'll have a conversation about production here. the u.s. produced nearly 11 million barrels per day. that's more than double the output of 2008 for more on the energy sector going into 2020 we bring in our friend rbc global kribtscontrib. welcome back >> happy new year. >> when you think back how different the u.s. emergency market is. unbelievable >> it's been a really important decade for the u.s. oil supply

i think it's fundamental ly reshaped and our view the middle east doesn't matter as much for u.s. prosperity. >> do you think we will hit peak demand what's your outlook for 2020 >> what's interesting is we have this huge fear of chinese demand implosion hanging over this market we have now had a series of revisions. the market doesn't look nearly as over supplied as we thought oil is looking better with the trade war fears dissipating. >> remember that where many the world is carmen sandiego

she's on the ground. one of the oil analyst who goes to the opec meetings and i see her talking to these people. cue kudos to you >> thank you >> for 40 years, the u.s. had a rough relationship i saw a four letter word it was considered the enemy of the u.s. oil and gas ironically opec is one of the only things that can save most of the u.s. oil and gas industry because through their cartels actions they can raise prices which will keep u.s. companies going. opec is our friend >> you absolutely are spot on. the saudi oil minister said the answer to your question was yes, we do believe we're giving a gift to the u.s. producers we like them to be a bit nicer to us andacknowledge the gift that we're giving them i think you're right

president trump has been very, very critical of opec, of the producer organization and yet it's been opec that has kept this floor in the market what they do is exceeding expectations they war not required to extend it but they chose to do so >> i think you made a good point. with the disruptions, those would have sent it to 100 bucks a barrel >> we have taken two million barrels of iranian oil exports off the market over the past 18 months because of sanctions. venezuelan production has collapsed. we have seen in the last six months almost unprecedented

attacks on middle eastern oil infrastructure we have had of saudi oil output off the market look where prices are now. we would have been talking about the oil which when we think about what happens >> i wonder if something got in the president's ear and say you have to stop tweeting about opec and prices he's been kind of quiet the past few months that's going to wipe out hundreds of thousands or a million plus jobs in oil and gas. he's been kind of quiet lately >> harold hamm is a close adviser. we wonder if there's been this quiet dialogue >> thank you both.

>> thank you coming up on our tasting menu, getting ready for peacock, getting paid to perform and getting more women on the board. are the circumstances right for major problem in the housing market our next guest says yes. he'll tell us why we should be worried. stay with us my name is claire am a 30 day fitness app user.

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whether that's getting a taste of where you are, or bringing some of that flavor back home. that's room for possibility. ♪ let's get to living welcome back we're days away from ringing in the new year and mortgage rates are sitting a full percentage from where they were the u.s. is going through a housing shortage with only 1.6 million homes on the market. as demand heats up in the

spring, what can we expect from housing in 2020. here with us now, president and ceo of marcus and millichamp how bad is this shortage, really in. >> the inventory shortage is a major slowing factor for the for sale housing market. we can't forget the fact that the change into the real estate industry on the last ten years is probably the turn around story of the last half century thinking about where we were ten years ago when overleveraged houses were causing the global financial crisis where we are today is a shortage of inventory of very cautious lenders that have caused the shortage to a large extend and higher cost of development it's very healthy from an investment and economic perspective for the u.s. as a whole. >> i get that. i don't understand why builders have been reluctant to build

more they had overbilled prior to the collapse in 2008 that's usually the default move is to over build at times. they have underbuilt at this point especially on the low end for those first time buyers who we are told show great demand. they just can't find things they can afford right now why do we find ourselves still with this bottleneck cause by those home builders? >> bill, you're absolutely right in the fact the demand is there. it is not what it would have been had this been a normal expensie expansi expansion. most first time buyers will be buying aggressively. they are not they prefer to rent. the consumer habits changed over the last five or six years people got burned in the downturn by speculating on housing. i go back to the increase in costs. the labor costs, the terms costs increases for building new

product which doesn't pencil out at the entry level most builders have to build higher end units in order to i crease profitability wii s we're seeing that on the for sale side and apartment rental side >> does this housing shortage and the fact millennials like renting mean it will be a while before they are interested in buying >> as far as we can see it's not just the millennials that are preferring to rent you also have empty nesters, people who have owned home that no longer need the larger houses opting to rent especially in central business district areas near entertaintermenentertainme and so on. the other thing that is important is the lack of speculation versus other expansions by the developers builders tend to over bill builders themselves have become

smarter and they are preventing the lessons, the hard lessons learned in 2008, 2009 from happening again. >> thank goodness rates are as low as they have been. weing very close to 4%. knowing the fed doesn't plan to do anything in the meantime. >> we really felt very strongly that in 2018 the fed was over zealous. we're glad to see a correction of that path into some adjustments in 2019. the rate reductions really help psychology quite a bit on commercial and residential the position of being neutral, i think it's just right because inflation is not a problem we're seeing job resurgence come back because of the more positive expectations of 2020

because the fed is no longer the risk factor as it was a year ago going into 2019. >> all right thanks so much for joining us today. happy new year here is taste of some of the other stories we're watching our parent company comcast is in talks to buy zumo. zumo's app is available on sf services including roku and smart tvs. all this comes as comcast prepares to launch its streaming service called peacock in april. shares of comcast are up more than 30% this year >> what will zumo bring to the table? >> it's ad supported what nbc universal will do with peacock is go in a different direction than net olympics and disney plus. that's all about streaming subscription content that you

pay for without ads. they will have tiers that have ads that are free. they will have fewer ads and cost a little bit of something to watch but i think it will be really interesting because they want to have this infrastructure to stream to a lot of people and even do live streaming as well >> we'll see if this zumo deal happens. they are in those advanced talks. have you gone a con serts lately you may have noticed that you're paying a lot more. the average ticket price rose 55% this decade to roughly $95 that's according to the wall street journal the rolling stones had the highest grossing tour raking in more than $175 million ticket prices averaged a mere $226 the thing that gets my attention is live nation owns ticket master ticketmaster owns 80% of the market for these live concert events how does that happen

wouldn't that be considered a monopoly >> the doj did look into that and there was a settlement to not force anyone to use their ticketing software ticketmaster is a company people love to hate they really do control a lot of that business. a lot of these venues and artists are getting smart and varable pricing and they need to make more money with touring because they are not getting money from sales >> they do make 75% of their income from live events. >> it used to be the other way around >> what else is going on >> some boardrooms are getting a shake up companies in california are required to add one woman to the board by the end of this year. 93 companies in california in the russell 3,000 had all male boards when the legislation went into place as of last month the number dropped to 17. this is really interesting here.

this law has already been challenged in court. it may not hold up what we're already seeing is nationwide shift in term s of companies adding more female board members. >> just not fast enough. >> most will make it by the deadline we saw six or seven companies in california that didn't have female board members there's another thresholds, they have to have more female board members in two years at the end of the year, female board members help improve performance. maybe they would be smart to add women. >> they are better money managers leading the nasdaq to 9,000, don't forget about billiotech. what can we expect for those stocks in 2020 we'll talk about that coming up. ♪

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itreat them all as if, they are hot and energized. stay away from any downed wire, call 911 and call pg&e right after so we can both respond out and keep the public safe. welcome back certainly, we talk about a lot about technology on this program, with good reason. i mean, it's the best-performing sector of the year and for the decade but it's not the only space that's been outperforming. biotech has been booming, as well take a look at the ibb that's the exchange-traded fund that tracks the biotech stocks,

up 22% just in the past three months compared to the s&p, which is up 9% over that time. now, call these the hidden horsemen of the nasdaq we've got constellation pharmaceuticals up 600%. kodiak sciences and acxiom therapeutics both up more than 400% so will the biotech boom continue in 2020 we bring in bernstein senior analyst, ronnie gal. good to see you. happy new year >> you as well >> so many questions what will the themes be for biotech? you have to have themes. those diseases or trends that will drive growth in this sector what will they be, do you think, in 2020? >> a couple of things that are more global that will drive growth the first thing is, we got some alleviation around all the talk about drug costs as we know nothing will be done in 2020 in the an election year so that probably provides them some alleviation the payers are not finding it as

hard to push on the specialty drugs that biotech are now focused on in terms of disease area, this is the big make or break area for bioengine with their alzheimer's drugs. it's probably the most important decision the fda will be making in 2020. >> what's your gut tell you? yes, no? >> yes so, you know, you've got to be cautious about this. the data is flawed there's a lot of questions but as i was talking to one investor and just realized that i'm kind of pitching the stock, as i kind of think it will work and i think they will get approval this year >> how much was a lucifer was a part of the big trend. >> i think this is the legacy of the former fda commissioner. essentially, fda is now at the point where they just -- rather than just look at complete answers and ask people to cross the ts and dot the is, the view now is more along the lines of, oh, we're convinced this is

working. and if this is working, we're going to prove it. we won't wait for them to cross every "t" and dot every "i," because the patient is waiting we're seeing a lot more drugs getting approved on a lot less data it means that small companies can complete clinical programs and come to the market on their own. and in terms of time to get drugs to the market got cut tremendously down. so patients with cancer and rare diseases get their drugs a lot faster than they did four years ago. >> and i mentioned this other company. this so often happens in the biotech industry, you'll find a company you never heard of that comes out of nowhere and gets approval of some kind. we had these kodiak sciences, acxiom therapeutics and companies like that have come out nowhere. but for you in 2020, your top three picks are very much household names. you're going with the old guard of amgen, biogen, and gilead why? >> that's right.

so, essentially, the large caps have generally underperformed the midbiotechs, which are the one drug ponies which if it works, you get paid a lot. i cover the larger cap names and among those, it's a powerful of products, sometimes pay a dividend and are able to, you know, do well, even if the overall market does not do particularly well. so that is the logic behind those choices. >> very good ronny gal from bernstein, good to see you again good to see you. >> check, please! is next. ♪ ♪ ♪ ♪ ♪

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return home. and who doesn't love going home. check, please. i have julia boorstin sitting next to me why wouldn't we talk about movies >> i just saw "little women" and i loved it, but i think that 1917 is going to be phenomenal >> i've heard great things about that one >> it's gotten phenomenal reeves "just mercy" supposed to come out. i like "knives out," a good old-fashioned movie. >> i wife just raved about that. it's one of those mid-level movies that came out of nowhere. >> it's not a franchise movie. it has a bunch of actors in it that everybody loves something for everybody. >> does everybody hate me when i say i liked "once upon a time in hollywood" >> that's a nice, safe bet >> is that safe? >> i think there's a lot of controversy in that. >> yes, it's done very well with the oscar nominations this year. who wins best picture this year?

>> i think thatnetflix has a shot netflix has a bunch of movies that will be nominated for best picture. it's possible that netflix could sweep the oscars this year, but i think the academy, the people who vote, they're not going to want to vote for netflix so we'll see >> we will see thank you for watching "power lunch. by the way, join us tonight for the final edition of "nightly business report" on your public television station "closing bell" right now welcome to the "closing bell." i'm morgan brennan in for sara eisen on the floor of the new york stock exchange at the mike post as that stock leads the dow higher we have seen positive record intraday high s again for the major indices. >> and i'm david faber in for wilfred frost. let's take a look pat what's driving the action this afternoon. stocks continue that steady climb higher we're on record close watch for the dow and the s&p. the nasdaq, though, it's in danger of snapping what's been an 11-day winning streak and holiday spending, that

continues to help stocks