20 or more points and then won by to or more points, which is what they did. they got the ball in good field position a couple times that helped them do what they did look at that pass. that guy is good >> hey, thanks for watching "power lunch." "closing bell" starts right flow welcome to "closing bell." i'm at the goldman sachs posh a brokered upgrade, and ahead, of course, of banks earnings tomorrow we have record highs no the nasdaq, not for the dow, but there's still 59 minutes left in the session. >> let's look at what's driving the action today stocks reached new record highs the way the earnings optimism helped and further helping sentiment. leo hudd just arrived in washington at dulles for the

signing of that phase one trade agreement later this week. joining us is charlie from aerial investments charlie, welcome. >> thank you for having my >> well, you have to go specifically s&p 500, which is protectly where you want to be right now. frankly it's starting to get expensive for us they continue to run, but at some point growth will have had its day, and value still looks tractive growth does not look attractive to me at this point. >> interesting to hear you say that mike san tollist pointed out that in many ways the market is right where it was in 2018 does it feel that way? >> yes, different from 2019. last year there was gloom, a lot of talk about trade wars right now there's not a lot of bad news

i say unfortunately, because the best time to invest is when people are worried about things. right now there's just not a lot to worry about in the meantime let's focus on the big -- we're covering dave calhoun's first day wilfred has a preview of the banks earnings, and mike santoli has the market dashboard, but phil, first you on boring. >> we have fresh news. remember on friday when boeing announced the pay package for david calhoun? in there is a $7 million bonus if he can safely guide the 737 max back to a return to service. well, just within the last few minutes we have had hear from senators saying cancel that bonus. they demanding they cancel that bonus. here's calhoun's priorities. it is the max return, with or without the bonus, rebuilding

trust and focus on values. david calhoun will be out in renting at the 737 max plant guys, it would be interesting to see what he has to say from demand from the u.s. senators, who are saying you should not be get a $7 million for getting a bonus getting this plane back into service. >> there's been a lot of discussion about whether somebody who of course was on the board throughout all of the issues, is the right person to lead them forward. i feel like it's a bit of deja vu, baas tim slop sloan had been during the unfolding,but they needed someone internal, who also knew where the bodies were buried, as it were. >> correct. >> that was a bad line, i didn't mean to use that one, it came straight out, but knew where the issues with are to get things moving forward again right one of the main reasons

the board chose david calhoun is because he knows the company, he can hit the ground running you bring in an outsider, they likely would ai want 35, 40 days to get my hands around what -- you don't need that with david calhoun. he knows what's going on there's understandably a discussion on whether he's too close to the company, but they can sea say let's focus on doing this, this and this in order to get the max back into service. >> the fact that he's -- phil lebeau, thank you. it's a big week for the big banks. all gearing up for earnings tomorrow before the bell >> the main chance this quarter, in fact compared to the same quarter a year ago is same net

is the most important part of the week in terms of continue to offsaid low rates will be a key factor trading revenue are are likely to be under pressure, offset by high exposure to asset management though wealth management marginless fresher advisory revenue should be stronger, offset by stronger equity capital markets 2020 is schayes up so there will be plenty of focus on cost control and a shift to digital distribution the bottom line is the setup is hard over all of 2019 bank stocks roll over d. 7% was -- in fact

dedeclined and b, goldman saks first earnings report, the announcement of which game them 5% outperformance, and they're up relative to the rest of the group today. so again talking to the top setup. rates are down, but the yield curve is steeper there was a lot of hesitancy because of brexit, waiting to say how that shook out and the thing about higher asset values. fees are regtively fixed, fees go up by a lot, nice the expectations are not that high >> jason, to the point about

where we are relative to expectations, you think net interest income could surprise a by to the up side, because there's been such doom and gloom around interesting rates. >> i think if you look, the medium bank d. another eight basis points in the third quarter. i think what you'll see in the fourth quarter, as banks start to lower that are target pricing, you'll see the rate climb sloe margins should begin tosh -- to allow interest rate to grow higher, particularly in the back of this year >> do you see your had you had is one that could be flat or even declining >> yeah, well don't photograph a lot of revenue growth.

if you think about earnings expectations or eps expectations, about but if you bifurcate that but the back half of the year should be closer to 8% but your point, expenses are continuing to be in focus for this group, as they continue to drive revenue growth to give you the big move what are your top picks? what names do you steer clear of as you go into earnings? >> the group was up. we think the group can continue to work higher given i think the face of multiple expansion you know,

continued -- we think income to be higher. we think in the fourth quarter you could see the largest quarterly decline than we've seen since the financial crisis. >> the earnings call is tomorrow i think there's a lot of focus on expenses. they're clearly oning higher how far behinder this, if at all and one of the first things charlie did was increase their investment, and curious about their assessment on wells fargo

let's send if over to our mike for the dashboard >> a lot of audience excitement, so to speak, and then we have stretching the scene, lu lu extending it's runened and then quiet on the set one of the calmest markets we've in years, another statistical look at that, and then could we get a feel-good ending to a rough period first the buzz is building look at a six-month chart. we know what's been carrying things that's the nasdaq 100, the very big tech growth stocks it's been mid to late december that's lifted off like small-cap russell 2000, have more or less gone sideways. it kind of shows you exactly where the margin has gone.

we have the likeses of apple and facebook um 1 hundred. acgreat gate investment positioning. this collects together a lot of reading how professional investors are mostly positioned. that takes back to a lot -- look at how many times we bumped up against that level, before it really mattered. you had no pullbacks we just transitioned away from a choppy, range bound, mean reverting the last few months, where you have to be aware of margin for error is much better now. >> mike, thanks so much for that charlie, it hasn't been your types of talks or calls that have led this latest leg. >> the aerial fund was up 27%, so not as strong as the s&p, but

a perfectly good year for small-cap value, but we would say, we would remind people in 2001, small-cap value was actually up. you can get some huge disparities. i think we are getting to the point now where we have to talky overvalueded large-cap tech, and when that turns, that could be really ugly. we always want to be at the time clearly focused. the journal had an articles tod today, when it was ge and ibm, so we have real concentration in the index funds which have had so much money come into them. we have breaks news on the houston astros eric has the details. >> that's right, the owner jim crain just announcing he's fired

the general manager, and a.j. hunch. they were both just suspended a year for their involvement in the sign-stealing controversy that helped them win the world series two seasons ago in 2017 that's the latest. an hour ago they were suspended, and a minute ago the team said they are fired they have lost their jobs. back for you guys. after the break, jpmorgan's health care conference gets under way in san francisco we'll have that live for the interview for the c eeismt of illumeina, next. even after the huge run, one of the analysts behind that call joins us to discuss. stick around we'll be right back.

sales shortfall, discount retailers citing weak holiday sal

sales. that deal is expected to close by the end of the second quarter. that stock is up 13%. another stock on the move today illumina, shares fell sharply early today after they warned of up set back. megan tirrell joins us with the illumina's ceo francis desouza the stock did move lower during the presentation here, on the 2020 outlook, it sounded like you forecast about 9 to 11% lower growth i think it was a

big bit of higher expectation. around the direct-to-consumer market, so we called that marked coming down this year. however, overall we expect to grow at 14%, which is higher than the 9% to 11% range >> so when you talk to direct-to-consumer, you're talking about ancestry kits, the people doing at home is that market slowing are you seeing that continue to slow fewer people are doing that kind of thing >> that market slowed down a few year, very strong growth in the 15, 16, '17 time frame last year we saw a slowdown. a couple things are playing out. that market was fueled primarily by interest in geniology as that market starts to slow,

we expect the future growth will come from health-predisposition. that market still has to build customers want to feel secure if they give somebody their data, that data will be protected. so those are the dynamics plays out. tell us more about the collaboration with roche. >> management and treatment of cancer, it's a disease of the genome, and there's a couple parts to the partnership one is roche will be building tests that they want going to take to market to help patients

select the right cancer therapies. so they'll be building these ivd tests that they then market. i think that will be very helpful for patients in selecting the right therapy. another part is roche has a brought portfolio of oncology therapies. we are working with them so the tests we sell to the market as well also help customers choose the oncology therapies that roche provides there's two parts to the partnership. we think it will help to move the market forward. >> >> you had made a agreement to buy a smaller competitor. after an ftc challenge, you moved to abandon the deal. what do you believe precipitated that challenge they are in a part of the market -- we're in the short-read sequencing market, and they play in the long-read

sequence sequencing market we are very good at driving the cost of sequencing down we saw a real opportunity to get involved with their portfolio, drive it in the long-read market and accelerate that market that's what precipitated us talking to them. ultimately the ftc did not give approval we obviously disagree with that, with that assessment, but now we're looking at alternatives. >> we'll lack forward. francis, thank you a lot more coming up from the conference including,s in next hour we'll hear from dr. sam waksal that's coming up in the 4:00 p.m. hour, guys. back do you. >> it's been great coverage so far. thank you to francis desuodesous

well and the tess lars rally kicking into high gear as another firm ups its price market we'll discuss ahead, on "closing bell." i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals.

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tying it to disney-plus adoptions. reiterating the buy on the stock. evercorp raising the price target from $235 deutsche bank out with the catalyst call for ge and thinking 2020 guidance suggests an up side to current consensus. those shar are up almost 4%. is ge one of those places? >> i asked you to throw in bitcoin just to make it perfect?

>> this is a global company, but there are still ver fundamental problems here. so i think you can do this as a trade, but i think long-term there's a lot of work to be done >> what about facebook is that a part of tech >> we're still rory about the reg la tore but we do think they agree on, which these companies do agree, so even facebook we can't find

>> they're certainly leveraging it to sell ads against it. still to come, we have your last chance trade. lots of those values straight ahead. up next, lululemon hired today after raising the forecast, is the valuation getting a bit stritch? mike santoli will find out here's a check on bonds. treasury yields getting a small lift to start the week "closing bell" will be right back.

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rear set for report closes three things driving the action today. further helping as chinese a

vice premier arrived expected to sign the phrase one of the trade agreement. a huge moment for the trump presidency we'll see if it moves market teach no are ra time no an update with sue herera. secretary of state mike pompeo speaking 'stanford university, saying general soleimani nurtured misery, and the world is safer this after demonstrators took to the streets of tehran after the weekend to chant against the iranian revolutionary guard. tornadoes ripping through at least four southern states over the weekend killing 11 people, destroying homes, leaving thousands without power.

flash flooding also forced rescues in both mississippi as well as oklahoma. up in chicago, high waves along lake michigan left part of the city's lakefront in pieces, causing closures at multiple beaches and jogging paths. let's end on a lighter note. ding ding, a giant panda at the moscow zoo put on a bit of an energetic display after seeing a christmas tree in her enclosure. every year they collect hundreds of unsold trees and put them in with the animals ding ding got dinged, but she's okay. >> i didn't know they had such affection for christmas trees he certainly thought it was a bit steadier than it was, but he seems to be having a good time >> i thought they were more fans

of bamboo. >> no, you're absolutely right i see you next hour. >> i look forward to the full story next hour, too >> the bar just got set high or to mike santoli for the second part of the dashboard stretching the scene is look -- just keeping getting further stretched. take a look at lu lu against smut quasi competitors here. they're kind of active ware,@leisure. that is obviously evident right here, but look at the wall street sentiment, it has

certainly improved but there's a reserve of caution under there there's still a lot of -- more that is half offal analysts, but this is not what i would call sell-side exuberance, but at some point it just becoming too expensive. real sways is in a low 40s one interesting thing is it's been more or less flat. so these great growth stocks keep going the story still works, but it's hard to say you have an edge or bargain. so i see, rearing with good almost a hollywood theme >> i think you're on the right track there. yes, i did decide to give a nod tard moviemaking. >> do you this is it's hope you are your favor irishman will

win? >> i'm not sure he's my favor. i'm not sure it deserves best pic. >> the bookmakers seem to have it said. see you a bit later, mike. 125 minutes before the bell. here is where he stand right now. all the major averaging are higher, fred brother have a-day highs, up next your trade. raisen to a new street high. ♪ ♪

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quite at that level, but still up, not far from 29k. a look at the biggest leaders. freeport mac moran and skyworks solutions, the charge leading the nasdaq and tesla. >> beyond meat, that snoop dogg situation, i would think okay charlie, what's your last-chance strayed? >> we've got to look for things that were left behind last year. it was a terrible year for farming, bad weather, the trade problems and the mosaic company, really the leading fertilizer in the world. this is a name that will do very well if we get a trade deal where china is buying more agricultural products from the u.s., a year when people start

to worry about inflation, mosaic is we below i have will have a good year. >> they have curtailed some of the weakness in pricing. how much does that hinge on the production coming back >> mosaic has a leadership position in the u.s. it's hard for people to move fertilizer around the world. they can do okay if the u.s. market gets stronger >> we are close to session highs, as we approach the close. that means about 0.6% of gains record close is set for the s&p. we've got 20 minutes left in the session. this is the last commercial we're going to take before the close. up next, uninterrupted coverage of the final minutes of trade when we take you inside the market zone. and here's a check on the major averages you can always watch you live on the gog on the cnbc app.

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aerial investments here as well. key reason for the tie-up? there's huge pressure on the aerospace industry to redruce greenhouse emissions merger means more spending on r&d, and lightweight aircraft parts. and how that has been put on. >> time is noteworthy.

yeah, they are very safe stocks to come back as things have calmed down. vertical mergers in defense have been tricky, because the government rebates get tough when you are vertical. we will see. just because there was no premium. we'll see if that's sort of

quasi puts it in play. a number of re -- with more. hey, court >> hi, wilf. they're trying to court them it's kind of hard when a -- we have a number of retailers putting out preace nouncement. so let's start with lululemon, as the company said for the fourth quarter they're expecting earns to be better comp sales now expected to be in the mid to high teens. that's above the low double digits they had first forecast, and then abercrombie, this company reaffirming its forecast for that black friday week

it's enough right now to juice up those shares. back over to you guys. >> mike santoli, it's pretty interests. it seems like there's very stark differences, yeah, both in the market and, you know, in stores themselves, but there verb some of these losers, so to speak, that have been so beaten down that actually have gotten some extraction it's kind of interests, there's there's been a handful of l brands or some of these are these others that have actually got a bit of a bid, because this is a pretty generous market right now. >> anything you like in retail >> the one consistent factor is the important of hard line

that's what's really consistent. kate rooney has the details. hi, kate >> hey, will reports that writesa is in talks to buy plaid it's not been confirmed. this is according to dow jones headlines. last valued at 2.7 billion they've got investors like goldman sachs, amex. this accounts your bank account to accomplices like ven mo you have some high-profile capital venturists we will keep you posted. >> the lost valuation round, what kind of estimates do we have there >> 2.7 million was the last

private valuation. that was earlier in 2019, but a relatively new company it was firmed in 2013 by two young consultants from bain. they have investors like l.e.a., the venture capital arm of american express in company has gotten a lot of buzz in silicon valley in the last few years it's been around. >> i guess in terms of the price, we don't know how much the purchase price is, it's a sign of the huge value fintech can create quickly, but it's also a sign how the bigger players are absorbing them as opposed to being seriously disrupted, losing market share. >> i mean, you could think of it more as a feature than as a business i think that's the way it's shaking out.

visa, though, interesting, one of the best stocks for a long time largely because it's a platform, great network effects. it stands in the background on top of which are all these transactions this would be a bit stepping to the front and actually the user app, more the consumer layer for visa, which arguably brings into potential competition. >> davidson reiterating its buy call nothing is price target at 375, a new high on the street burn says apple is well positioned to take a position on the high -- tom forte, senior research analyst as d.a. davidson & company, thank you for joining us what keeps you feeling so bullish about apple, specifically >> thank for having me on, morgan

the company is making jobs with the emerging efforts to turn 2019 into a very good year by way of comparison with the upcoming roll-out this plays to apple's strengths. to the extend that 5g could result in unigrowth returning , confirmed our views on that. that's why re raised our targets. e also looking backwards, in fact the performance last year was iphones turned out to be nod as bad as feared, as opposed to

these other exciting, but not that significant to the bottom-line items around the edges? it carries forward the benefits from the legworks in 2019 and we'll get the example, the apple credit card, the appeared card to the extent that consumers are ability to use that card to purchase iphones and pay on an interest-freeing install basis, we think that could benefit iphone unit sales for years to come so as you pointed out, some of the strengths in '19 in share price was a pull forward on the upcoming side in trends, but i do think this shift has enough hype and enough complex elements to it that really plays to apple's strength and have the company well positions

>> tom, thanks for joining us. we've got just under six minutes left of the session. tesla has been -- the stock soaring after open haimer raised the price target to 612. the highest on the street, the firm says tesla's long ambition may pose an existential threats to -- meantime citi reiterating the price target say it's not necessarily about being bearish or bullish, but rather a risk/reward trade-off. charlie, i get irrational exuberance with the 1996

regarding any valuation metric, but clearly they can still go higher. >> do you feel like there having certain data points. does it feel like -- >> it certainly does, but obviously 1999, there were still two years to go. >> if it -- >> 96, yeah, that's what i'm saying >> i think there's pockets of it what you want to watch and the lengths to have you have to go to create a rationale for a price target, you know, leagues above where we are right now y you, and that's a bit of a warning. i do wonder, the test will be

when earnings come out, not whether it's goingor bad, but whether it refocuses people on to the stage of this company today. >> whether you can, you know, not find a b-multiple or not, their own cash flow protects their own balance sheet for the foreseeable future any kind of doomsday risk they'll have to raise equity or debt is long >> it's not a zero, but is it 100 billion? that's your call it's tough but to justify in price, they have to -- and so the idea that they have enough cash flow to justify this valuation, i don't actually believe. >> all right cannabis stocks, speaking of other names that have been momentum, getting a big boost that over to frank holland for more hello, morgan. it's the first canadian cannabis

stock to report earnings it's up more than 5% as opt mick grow also, this could be a comeback legal recrassal cannabis sales are expected to triple in canada in 2020, as edible and drinka e drinkables become available this month. back over to you frank, thanks so much for that in terms of the border market, we are pushing higher. it will hit records. mike, for the s&p, at least, pretty much at session highs >> if you look at advancers versus decliners in the stock exchange, well more 1,000 above decliners, so that's been a switch definitely to the bulls credit there. we want to look at high yield. the credit marked have underwritten this entire move,

since basically thanksgiving high-yield bonds, outperforming treasuries, that's been very consistent and that sort of insulates the market from real bad stuff happening. >> we have up 0.6%, materials, tech and real estate all up more we have two minutes left to go rick santelli has a check on bonds as well. >> you know, with all the -- especially the nasdaq, it is shocking that rates aren't more aggress everybody today's range is an inside session really compacting, if you look at a 24-hour chart of bund overseas, they settle at minus 15 and change, best level in terms of smallest negative since july -- actually may a $2 inden, one seg that's way outside, bertha is the nasdaq. it's just a rolling set of new record highs the last half hour.

>> and that you will assist in tech the brow the community indications sector, chip sector, all at new highs alphabet getting close to that $1 trillion market rue now but i've got a wide array of the 250 or so new highs today, about a fourth of them are all-time highs, including some of the newest members of the nasdaq is 00, i should say, co-star and copart, one of the online parts auction. namely health care mixed with exact sciences, disappointing guidance, down on biotech. over to bob. two to one advancing to declines stocks. new high for the s&p banks tomorrow, and some are looking pretty good. goldman sachs has been on fire it was 232 looking today at 245 in the next

few days morgan stanley done really well, not again an historic high morgan stanley was over 90 this is a comparison to where it used to be there's the closing bell s&p 500 closing right at the highs for the day. 3288 if you're just joining us, welcome to "closing bell." >> and i'm morgan brennan in, along with mike santoli. >> let's fin record closing highs once again for the s&p 500. that you can see on the intra-day charge, a nice extra leg up 0.7% of gains, materials, real estate all up more than 1% health care the only decliner.

the dow jones lacking. joining us to talk about the market today peter chakina, and charlie is still with us first, mike santoli, major averages chloronear the highs of the session. what does that tell us >> that there's a very steady bit. it's been a relentless rally and every day it's as if they have a dashboard it's calm, are they green, yellow or red? very much green. he that's the machine. people are still getting dragged as we go through it hasn't fell comfortable, but i think the market is almost forting a lot of people to do that

you just don't think they're going to arrive imminently and we'll see a pullback before they're likely to arrive >> yes, i think investors are baking in almost a perfect scenario for u.s. equities, the idea being perhaps the business cycle is dead on extended monetary policy action he really earnings were flat for 2019 in fact the estimate as they come out for the last quarter of last years is down 2%. we think they're wildly bullish or excessive for 2020, up 8% or 9%, and we don't think we'll see that turn. revenues are really not slated to go very much. weaver just not seeing an inflection the growth statistics that so many people are saying, whether we look at u.s. data or overseas data i would say lastly, and rick

santelli mentioned it, the bund is at -- financial conditions are actually tightening, not loosening, so this narrative that condition -- we think is a false one. >> do you agree? >> yeah, i mean, we would have to say that globally the economy is okay. there just aren't a lot of bad signs. we talked about how important trade is trade is getting bers. soivity to say there's just nothing in the short term to scare people, but in the long run, the market is a weighs machine. in the long run valuation matters. so right now we think there are value stocks that are attractive bonds are clearly not attractive, but in the short run, anything can happen >> you think it's already priced in the market? >> absolutely. >> and probably a bit of a sense there would be a second part of

this this is step one, but it does help a number of things. agriculture will do very well. >> hence mosaic. >> hence mosaic. goldman sachs is out with a list of macro risks. it cites the sentiment nearly stretched territory is the reason why it could increase volatility in the market mike, lots to talk to there. one is, of course, the scope for the feds not as accommodative as people expect where do you stand on that >> i think we just have to be aware of the airs where there's incredible ubiquity of uncertainly. if the nasdaq goes up, you know, another 5% by the late jan fed meeting and we have a lot of fed

speakers ahead of time, all they have to do is start talking about risk to get a bit knock off-course i don't think it's a major policy toggle at this point, but really what tells me something about goldman's list, it's a standard on list of force majeur that tells me people are having trouble coming up can catalyst value. nobody can find anything to be worried about. >> in this goldman note, also cybersecurity stocks that may be worth consideration right now, too. we can talk about growth and the fact that maybe some of the big-cap tech names are very stressed, but some of these a & d players have also been potential growth plays, too. >> i still think defense is defensive.

the cpi number is right at 2, so if we get more inflation, we could absolutely have higher interest rates >> as we look at china data, it really has not begun to accelera accelerate with the financing activity has been the sole provider of growth for the chinese economy. that's why the stimulus is not there, it's being so thatted up. we're not seeing it in europe. we're not seeing much of a sign

of a turnaround in the u.s when we look at the latest isn manufacturing print, that was worse than prior and when we look at the internals of the services print, we look at backlog of service orders, for example, that's looking weaker too, even though the headline print looked okay we're just not buying that inflection there i think investors are trying to fit the narrative to the market action, and i think that's not a very good thing to do here, especially with the s&p at 22 times or so trailing earnings. frankly with our assessment of 2020 earnings, which is about flat we're looking at a forward multiple so there's really no room for that narrative to be wrong so peter, then how should investors be playing this market >> yeah, look, there are a few sectors we actually like we do think tessents of the

year, it would be forced to move that could be good for reits, for example. not every subsector, but in general lower rates should support the reits. we don't like late-stage cyclical companies, and -- alphabet making its way closer to a market cap of $1 trillion, and deidra bosa has more >> only the fourth company to do so, of course apple was first in the trial your club, and am op and microsoft. now, despite facing greater regulatory alphabet climbed 26% last year. the question is, can they keep

the party going as he takes over for larry page back to you. thank you so much for that mike, a sign of the run-up in tech stocks generally is we used to obsess about who was going to be first and now it's multiple name it says a lot about i watt the business is operating now. alphabet should absolutely be one of them. the market is trying to capture that >> in this type of market environment, it could be a trillion dollars it's kind of crazy to say. we know how important cash flow

has been something you've got outlining regularly as well. >> thank you both for joining us today. >> thank you >> general motors giving tesla a return for its money, as plans to revise the hummer we'll dive into evs when "closing bell" returns every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information.

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joining us now is jeff dorschimer talk us through why you remain so positive, particularly following c.e.s. last week i believe this is an efficiency story, not climate change, and i believe there's a lot of room to grow is that just tesla is it based on the fact that on the floor ev players do come into the fold as well?

>> our bullish stance is not limited to tesla by any means. in fact there's other names in the supply change that we're quite bullish on that being said, really tesla is the leader on the in front of the pack, but we expect others to come into the market place as well >> i think it's something like, what, ten ev model, and now we have they reports about gm relaunching the hummer as an electric vehicle, too? when does the competition picture begin to flesh out and how long can the tesla lead last >> to our count, let's move it out to 2022, we're tracking over 100 vehicles being introduced to market that is full batly electric. >> wow. >> exactly that's the wave we're seeing, or tsunami in this case, if you will that's one of the reasons we're so bullish

one could say that means more competition, but i was just on a couple weeks ago this we upgraded one of is it doesn't come from at the la at all, but porsche. that's the range, 201 miles, compared to the tesla model that lasts 370. that's the gap we see that tesla still man tains. >> how, jed, do you come up with your price target? where are you relative to where we are today >> we're at $515 i did not think two weeks ago that when we came out with that price target we would be here already. how we get there specifically is we're at 1450 for eps, for 2021, and we're using 27 times that number, which is a 30% discount to the growth rate

>> i wonder if you think, as we see more of these ev models launch from some of the more traditional automakers, will we see -- given that tesla trades at higher multiples than everything else in the sector. >> you know, i left wall street for a couple years, was an operator running a division for a fortune 500. one of the lessons that i learned in that is just the important of culture, and the inability for incumbents to actually change when there is a fundamental shift in technology. i do think that tesla maintains that lead. that's not to say that others like a riveon won't enjoy the same benefit, but that a gm can come in and make the transition, we thinking that's going to be really difficult that's a huge advantage that tesla maintains, and i don't think it's fully appreciated, even at they high levels >> just going back to had

hummer, you know, that's poised to be launched by gm, is there a market for this? >> quite the turn, if you will, right? the hummer was synonymous for everything that was anti-ev, if you will now gm kind of putting that green spin on it i do think there's a 345rk9. i think what the bapts like a gm or forte are trying to figure out is how they avoid being disrupted, which is suvs and pickup trek platforms. you're seeing early demand for the riveon, which seems strong if respects orders are an indication of cyber-truck, that also seems strong. >> jed, thanks for joining us. >> thank you. we have a market flash on gamestop, which we should know has a market cap of just $350

details. >> shares of gamestop falling 7% on weak holiday sales. the company says the holiday sales fell by 27 1/2% largely due to people putting off video game consoles in 2020. the company now says expect the comparable store sales to fall between 19 and 21% in the fiscal year again, we have to note this only had a market cap, a lot of high interest, back over to you. still ahead here on "closing bell", volatility has vanished so far this year up next we'll break down the charts to show why history says investors should be wary. >> and sam waksal talks about how new startups planning to -- and you can always watch you

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welcome back to "closing bell." mike >> quiet on the set has been

really quiet lately. that is the implied volatility, this is the actual exhibited volatility expressioned as kind of an analyze eyed range this is a rom situation. here we the last time we were on a sustained basis are about as we come right now. obviously a lit later. this doesn't stay calm for a long stretch of time it just really shows a well supported market but one that will lull people into -- but the first down day we have will seem like a big deal, even though we're overdue for that. >> to start off all the year

with the tensions flaring with iran, surprising that that could still be the trajectory. mike, thank you. sue herera as the details. dave calhoun started at boeing, and there was some discussion about his compensation and incentives this morning. boeing has issued a response to some criticisms of the structure of that compensation package beaus says the compensation is based on the fact that the, quote, safe return to service of the max is our top priority. this includes the following lead of our regulators and working with them to make sure they are styed. the board and ceo are in full agreement that the safe return to service of the 737 max must be done with full regulatory oversight. basically this come down to criticisms by a number of

senators this morning that part of that compensation package might have been a conflict of interest with regulators for mr. calho calhoun. boeing is simply basically responding to those criticism earlier this morning >> sue, thank you for bringing us that response up next former imclone systems ceo sam waskal joins us. stay with us you can do it, you can finish. - [spokesman] finish your degree at snhu.edu

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welcome back here's a look at the "closing bell" big board. record highs for the nasdaq and s&p 500. the dow did miss out on a record it was up just 0.3% today. a look at how some banks finished this week, setting up a different earnings season, having run up strongly the last four months, and we have wells fargo, which traded lower today. they report tomorrow first earnings report for charlie sharp as ceo

the prices have gone you have above the rate of inflation over the generation i've been in this business. at the same time technology in what we can do in creating medicines, proving they work, and get in the meantime to patients, there are thing we can do today that are radically different than before. that interview intrude some criticism from sam maksal. our meg tirrell is with us, and they join us. would you doi think, in your words, this is a dumb idea. >> to innovate -- by the way,

pricing has gone up far too much, but we're supposed to do it in an intelligent way you make crestor, you have to do the research to make a new drug, i don't care what the technology is, that's similar to lipitor. then you have to do the clinical development to make sure it connects approved. pricing becomes irrelevant and you're not doing what the industry is meant to do. right now, 50% of people who reach the will get alzheimer's what we are meant to do is change that we haven't done that, but we are meant to do it, now by disrupting, by telling

old drugs at a discount. generics already do that people do have a lot of trouble affording their medicines, so if not this solution, what solution we have to price things when they work, now with incremental benefit. not when they were ten checkpoint antibodies on the market so payer can negotiate and make it fair. >> this company is saying a hey, maybe be will introduce new and undercut the competition then the competition will undersell, and then when you have ten on the market, you'll be pricing

normalized. >> six now and it's not normalized. >> but that's the fault of the payer. payers have to negotiate in or to make it fair. >> you think drug companies don't price their drugs too high now? >> i didn't say that i think often with he do price things way too high. when you anti-tnfs came on the market in the mid '90s. >> drugs like hue mihma -- >> and they cogs about $10,000 a year now they cost the payer $130,000 a year. by the way, bio has been tacking about that jeremy leaven is getting people to sign on so there are understandings of value for the money. if something gets approved, and we charge x, whatever x is, it's got to be in a risk/reward

fashion, beneficial to society, beneficial to the patient, and change outcome we don't on do that right now. that's goingto critical, but the way to do it isn't by creating a company that makes a drug against one of the targets that we already have and given it away. that's not innovation. >> politicians have a lot of solutions they put on the table as well, what is your expectation of the 2020 election in terms of implications for your -- >> i think in biotech right now, we have both democrats and republicans attacking pharmaceutical companies, attacking biotech companies. it's a mistake, but the mistake is those you the industries that are innovating and changing outcome for patients with malignancies, with orphan diseases there are gene therapy approaches which will affect

pricing, with one time purists not just for overing diseases, but overing diseases that are autoimmune so you go after the humiras of the world there will be a change, but not by attacking pricing, but by fixing health care and making sure we do risk/reward benefits like nice in the uk, where we make sure there's a patient benefit, a societal benefit are, and a pricing benefit in something affecting the overall costs to payers, to society, to the government it's done by ineinvestigatic, creating something that's new, and creating something that change outcome. same, thank you for sharing your thoughts with you morgan >> my pleasure. much more to come from the conference nest hour we'll have the ceo of agios. >> thank you for joining us, and

thank you to sam waksal as well. we have more news off conference frank holland has details. shares of mckesson raising by more than 3% after raise saying it will raise its guidance now it's well above analyst estimates. the stock gaining about 22% over the last year. today after the bell, rising more than 3.5% back over to you. >> frank you thank you. time for a cnbc news update with sue herera. >> thank you, morgan. astros' owner jim crain announcing he's fired the general manager and the manager a.j. hunch this comes minutes after their suspension in major league baseball over the sign-stealing controversy that helped the team win the world series this 2017.

>> i have higher standards for the city and the franchise and i'm going above and beyond mlb's penalty. today i have made the decision to dismiss a.j. hunch and jeff lunau. a bomb was found in the advantage belonging to the two nudge nudge shooters last moment that targeted a kosher deli. authorities say the bomb was powerful enough to kill people 500 yards away and enough material to make a second device. and bill bar calling the shooting at pensacola an act of terrorism. they have asked apple for help for unlocking shooter's phone, but they have received little assistance so far. that's the news update wilf, back to you. sue, thanks so much. up next, we will talk to a leadership expert about how new

boeing ceo dave calhoun will need to fix the company's culture. plus they say misery loves company. is the corporate misery indicator showing any love for the market that's coming up later on "closing bell." as we help to break, visa plans to buy plaid for $5.3 billion. we'll be right back. imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

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welcome back to "closing bell." in light of the ongoing conflict in iran, few ceos have gone on the record to comment. one ceo bucking that trend is michael mccain taking to his company's official twitter account to -- calling the events, quote, needless and irresponsible, led by a narcissist in washington joining us to discuss is former navy s.e.a.l. and ought thor of "leadership strategy and tactics" a field manual. welcome to post 9. thank you for joining us.

>> thank you for having me on. the reason he took to twitter, and he explicitly said it was personal, and he had a colleague who lost family members in this disaster it's a company that's expanding in the u.s. ago well, a, how unusual is it to see something like this take place such a public forum? and b, how much is something like this a risk for a company like maple leaf? >> the biggest risk is, look, they're grieving, they feel that loss, it's a painful time. when bad things happen, one of the things we go through denial and then anger, right? so he's feeling angry, lashes out, and what concerns me the most is you have someone that's doing things based on their emotions, as a laid are -- i'm not saying you don't have contact with your emotions, but if you can't take a step back from your emotions and make good

decide, i see that as a problem, and apportioning blame or applying blame whether the facts aren't settled clearly the blame is directed at america and the administration, where the plane was shot down by iran that's what happened so, again people act irrationally sometimes when they get angry. when i see a leader not controlling their emotions, it can be challenging >> from transitioning from your role to being a management coach, taking responsibility and being in control is one of the key lessons you took from being in combat into leadership. is that correct? >> absolutely. when you are in charge of any situati situation, what happens is your responsibility the minute you start blaming our people, you look bad and you don't find solution. yes, you have to take ownership. >> when you look at the issues that boeing has been through

over the last year or so, do you think that dennis did that, took responsibility, especially the pay page he left with? >> no, i think there's been a lack of that, and that's probably why he's gone if i was coming in to take over that company, the first thing i would do is take ownership as a company for the mistakes we made these are things we'll make sure don't happen again also in a company like this where there's been significant problems, i'm probably going to come in and do some significant changes immediately, so everyone knows it's not status quo anymore. >> what kind of changes? when you're deal with a major manufacturer, there's been a lot of talk that there are cultural issues within this company, and it's basically from the top down this idea of maybe needing to shift towards a greater focus on engineering, for example

how do you put those quickly in the midst of a crisis? >> i would look at the structure of the company maybe i would take and promote key engineers or bring them in a position where they have more influence and let everyone knows, this is the direction that we're moving. >> clearly from all of your writings and podcast, there's a lot of lessons you look to take from having been on the front line of the military and helping people in corporate life are there any areas where it's particularly hard for someone in the military to adapt to corporate life and skills you have to improve on and find for the first time >> for me coming out, the biggest shock to my system is when i realized the leadership that i learned in the s.e.a.l. teams and on the battlefield is exactly the kind of leadership that drives success in the civilian sector. from my perspective, you have to continually try to improve, stay humble, and also look into instead of diving in, take a step back, look from a detached per specs tiff so you can make

good decisions jocko, thank you for joining us. >> a pleasure. it was a pleasure having you here. streaming making hollywood history, with a whopping 24 oscar nominations. we've dive in, ahead legendary terrain in telluride,

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welcome back shares of netflix jumping higher, leading the oscar nominations. julia boorstin is in los angeles with more.

>> reporter: netflix shares gaining 3% after it drew more nominations than knit other studio 24 in total, including nomination for best picture. that tops disney which folks with fox searchlight has 22. the question is whether "the irishman" can bead out the contenders from the traditional studios for the coveted best picture oscar. warner bros. "the joker" has the most nomination, and one upon a time in hollywood" has ten so already some growth there for netflix. we can be sure that it's going to use all of this award attention to help promote the service and also draw more top talent. >> right, jewulia there's benefitly the long-term benefit. that said, in the short term you

look at the lights of "1917" but only just in the theaters and they have more of a potential of a immediate bump from getting revenue just by the promotion it's got in the last couple weeks. >> exactly we have already seen "1917" get some benefit from winning the golden globe for best drama, and the fact that it did get so many nominations from the academy means that the studio universal will be able to use that to help promote the film as it's now in wide release i think that's the timing of a film that can benefit from these oscar nominations, and perhaps continue to benefit in these awards, and they're going to be on february 9th this year, usually either later in february netflix will try to use this as much as they can and films this fall, so -- i wouldn't be surprised if we

started seeing this in some promotional materials trying to get more subscribers and convince subscribers on the surface that it's definitely worth sticking with netflix. >> julia, thanks so much for that mike, you teased earlier your pick for best picture. >> i haven't seen all of them, but i'm thinking "once upon a time in hollywood. >> it's a generational thing. >> okay. all right. up next on a scale of 0 to miserable, the corporate misery indicator could be -- mike heads back toll telestrar thha teth break tt, sors look for in an etf? i tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives.

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welcome back >> let's send it over to mike santoli for his final dashboard of the day. >> morgan, i know you wanted to continue listening to the song there. we have a question here as to whether corporate america after a rough earning patch could have a feel-good ending bank of america creates what they call a corporate misery indicator. you remember the old index was

adding up the unemployment rate and the inflation rate that's from the 1970s. this corporate misery index, when this is going down it is more miserable it seems like it's just curled higher that's the blue line and it's set up against annual s&p 500 earnings growth. what they're essentially saying is a lot of the pressure is coming off of margins. this is made off of the consumer price index, as well as wage growth it's a coincident economic indicator. so essentially just a directional move and this would be a hopeful thing. and of course we got to this level a couple of times this cycle. we rebounded those were earnings soft patches. so this is the hopeful sign and the market seems to be priced for it. >> mike, thanks so much for that our director could have helped you out. no such luck er up next, the key things that evy investor needs to watch as we move into a new trading day

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that the co-founder had created a toxic culture. he apologized and stepped down, but now says that was a mistake. she will now serve as the co-ceo alongside stew yaart hazel to k. >> marshawn lynch offering financial advice to a lot of athletes. >> there are a lot of people that ain't taking care of their chicken right. take care of it so when y'all are done you can go ahead and take care of yourself. >> and finally a japanese billionaire is looking for a female life partner to accompany him on the voyage to the mood. he says applicants must be single, over the age of 20 and have an interest in going to space. the deadline to apply is january 17th obviously that's probably my favorite story to have the day, given the fact that his downpayment for that right is

something that we don't know by how much, but it's something that is helping spacex to develop its new star ship rocket system. >> how far are they away from doing this versus virgin. >> this would be an orbital trip and 2023 is more of a suggestion. >> we obviously covered the story when she decided to step down, the away ceo even if it was the right decision to come back and it was a hasty decision to step down, i can't believe they decided to u-turn it so quickly i mean, you would think there could be a bit of breathing team she's still going to be executive chairman, she could still be involved a little bit without kind of losing face in terms of the way it comes across, if you're sweeping it under the rug as opposed to fully addressing the issues. >> first of all, private companies, it's a small group of investors that drive the board who can make these decisions if

you had a tremendous amount of perceived influence and import as a co-founder. that's why a public company, i don't think you would see the same cadence at all. >> i think there's only four people on this board, so that speaks to the governance piece of it you just mentioned. >> secretary of state mike pompeo, heading to dinner with tech leaders this week josh lipton has more of what we might be able to expect. josh. >> well, this evening about 15 people will dine with secretary of state mike pompeo here in san francisco. that's according to bloomberg, which reports the group will include heavy hitters, larry ellison. earlier today pompeo spoke at stanford's hoover institution and touched on a subject near and dear to tech leaders, saying china is stealing american innovation but the administration is making progress to make sure the next part of the trade deem improves

on ip protections. >> thanks for that we have a number of banks reporting tomorrow, citi group, jpmorgan and wells fargo before the open delta reports as well ahead of the open and the ceo ed bastian will speak to us exclusively on "squawk box. wells fargo in particular stands out with the first earnings as ceo. we'll see what kind of tone he sets but more broadly for the banks as a whole, that's going to be important to see, jpmorgan and others and see where they stand. >> opportunity to kind of set priorities jpmorgan, i find it interesting because the stock has been such a leader and it's just so kind of separated from the pack in terms of valuation and kind of the broad sponsorship it has on wall street. you wonder how it in jefgests t quarterly earnings report, but whether the stock trades

nervously. >> the one thing you can always get from the ceos when they talk on the call, the economy is really strong and we're confident about it and that can help sentiment. >> as long as you think the ex sfangz is going to go, the banks are going to be okay. >> we are out of time. that does it for "closing bell." >> "fast money" begins right now. >> yes, it does. live from the nasdaq market site, this is "fast money. i wam brian sullivan and your traders on the desk are tim see hour, and guy and the u.s. equity capital market. welcome. we apologize in advance. tonight on fast we are going where the money is, the big banks. you just heard wilf talking about it jpmorgan, citi, wells fargo all reporting their results before tomorrow's open. we'll break down what to expect. and we go west, to the jpmorgan chase health care conference in san francisco. we have th