tv The Claman Countdown FOX Business December 30, 2019 3:00pm-4:01pm EST
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investment holdings, as we get the commodities ramp up with the china trade deal. charles: so, jason thank you very much my friend. hey, want to go over to susan li filling in for liz claman. susan, you're in the most exciting hour of the market. >> that's right the final one of the day and when we cross through that 1997 level we we need a big push in the next few days to get there but investors are returning some of the gifts of the santa claus rally at this hour, so the dow is down 169 points the s&p 500 also falling around 18 points and nasdac lower by a half a percent so taking a breather from the record setting pace we've seen the last few months so lower comes reports that we could see the signing of a phase i trade deal with china as early as this weekend, billions of dollars of ag products from pork to soybean s may soon give american farmers something more to cheer about in the new year, meantime, tesla rolling out its first deliveries, in china, with a
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special proposal and no, this one not coming from ceo elon musk but increasing conflict in the middle east could also be sentiment as the u.s. retaliates for iran back tax in iraq. we're less than an hour to go to the closing bell i'm susan li in for liz claman. let's start the "claman countdown." >> let's start with electric vehicle headlines, dominating the news today, the latest coming from ford, announcing reservations for the first addition of the mustang, are now full after unveiling it just last month. the auto maker says that more than 80% of u.s. customers are reserving the vehicles with an extended range battery, and we'll get you much more on the picture including neo, the chinese electric brand and tesla news also later on in the program as well. take a look at liberty media and
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its attempt to acquire i heart media may face regulatory hurdle s reports are that the department of justice may challenge the deal on anti-trust concerns and they are down 1.5%, chipotle stock also falling today despite a bullish note from piper jaffray naming the mexican fast food chain as its top restaurant pick for 2020, chipotle stock has climbed by the way almost doubling on the year up 94% as the company won back customers following food safety scares, and 2019 ipo stocks let's pet them up, uber, lyft beings peloton according to global equity research the stocks are on life support and aren't considered tech terms according to them and as the 2019 ipo total falls well below 1999 dot com book so let's get back to the markets the dow and s&p 500 hitting fresh intra
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day highs in early trade before selling off pushing the dow down more than 200 points at session lows the s&p 500 also going further away from the key level looking for 3,248.87, i have to throw that in there because that's the level we need to cross in order to mark the best according year since 1997 when we saw 31% gains, but even at today's session highs, the major averages were still around 8 points below that record level. now, so is all this profit- taking then for the new year or is this something more? i don't know, more serious, beyond today's move let's get to the floor show, and phil flynn and scott bauer with us, so what's a few points to take off the table to catch those profits >> i think that's exactly the point. this is very well-deserved profit taking, particularly in the technology sector, we maybe got a little mini euphoria last thursday when nasdac crossed
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9,000 and we also have to put in perspective that the returns for the total year are very skewed by how hard the market sold off in december of 208. >> to me it's the bullish theme for 2020 and the dollar is at its weakest since july and european stocks had its best year in a decade, phil. >> yeah, absolutely. and i think that dollar story is going to be huge as we go into the next year. listen we're so close to the record, let's go for it guys don't give up now don't take profits that's what they have been doing but i'm very excited about taking a look at the dollar. i think the dollar coming off shows not only stability in the u.s. economy but also a sign that maybe the global economy is stabilizing as well. i mean the story this year was all right it looks like the u.s. is doing good but the rest of the world is really suffering , but it's what that dollar looks to me is that the
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stimulus that other countries put in their economies to stabilize them are starting to take effect, and the dollar isn't the only game in town any more, and i think that's going to be good for the federal reserve who wants to see a little inflation and good for commodities prices going into the new years and good for optimism as well because a lot of producers of commodities have been very reluctant because of the lower prices. >> susan: right and this is a year of negative interest rates as well, scott but i guess with china trade looks to be at least in the background for now, with these headlines that we're getting, might be just i guess focus on company earnings going forward. >> yeah, i mean that's really what it is because in a couple weeks it's all going to start up again so everyone is waiting on are we going to get that phase i deal signed whether it's later this week or next week and then what happens but yeah, corporate earnings around the corner. one thing you really have to look at is where we are compared to last year, and look at the volatility right now. yes, the vix is up about 30%
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over the last couple weeks, but it should be, but what's more important, susan, look at the volatility of the vix and actually the volatility in the s&p 500 index, it has not risen that much, tells me that yes, investors are just locking in some profits, but truly there's not a lot of fear out there. >> susan: and it's going to be a good year up you're up 29% i opened my 401 (k) today and i thought wow not bad for 12 months guys happy holidays and happy new year if i don't see you. >> you as well. >> susan: let's talk about u.s. china trade since we do have that phase i trade deal possibly being signed as early as this weekend, so the u.s. inviting china's vice premier the trade negotiator on their side to visit washington d.c., with the intention of signing that phase i trade deal with robert lighthizer the u.s. trade rep and the u.s. hasn't confirmed the invitation but the administration's top trade guy says a deal signing is in the
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cards. >> we'll probably have a signing on that within the next week or so. we're just waiting for the translation. >> susan: yeah, so waiting on the translation a much more, or the u.s. companies, phase i details. they're still a little bit america it and they are trying to figure out what a phase i trade deal looks like so joining us business advisory services director and it is a private organization by the way of 200 u.s. companies doing business with china and it's one of the biggest ones including ibm and the like. so what have you heard about signing of the phase i trade deal? >> sure it's also our understanding that vice premier may be coming to washington this week to sign a deal, which you know, matches what the we've been hearing for the last couple of weeks that there was likely to be a signing in early january and then the deal would take effect some time in february. as far as we know that's exactly what's still on track. >> susan: but the details are a bit murky because when this was announced two weeks ago we talked about earn forcement
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mechanisms and ip protection. what does that look like? >> the deals are still a bit murky because nobody has seen the 86 page agreement as its been in the process of being translated so they can work out all of the differences between both versions; however, we do have the statement from usgr talking about what's in the deal and we know that there are going to be increased ip protection commitments from china, we know that there is new commitments on tech transfer, mostly, it's reiterating commitments that china has already made on tech transfer but those are good things to have reiterated and then of course, some significant purchase agreements, although, on the u.s. side, we've heard 200 billion worth of u.s. goods over the course of the next two years on top of our normal annual sales to china, on the chinese side we haven't heard a dollar figure quoted yet. >> susan: and you represent some of the biggest companies around so apple, ibm, micron, i'm sure they're very happy with
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the intellectual property protection segment but i don't know how many administrations you've gone through dealing with china. i've seen a lot of it and attended a lot of strategic and economic dialogues and that's all it is just talk, adhering and enforcement has been very difficult, no matter whose been in the white house. >> that absolutely true. this is my third as well, and i think that it has to be acknowledged that the trump adminitration's approach while it has created volatility has been built to try to get different results out of the negotiations than were being achieved previously by the obama administration or the bush administration before that, because although the negotiations would lead to increment all changes, they generally didn't lead to dynamic , or significant changes like the u.s. really wanted, so hopefully we're going to see that. we just don't know yet. we do know that the tariffs are
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an enforcement mechanism that the administration has committed to using. what's interesting is that the tariffs really aren't going to be alleviated that much. we'll still have tariffs on two-thirds of imports from china and 90% of intermediary goods used in u.s. manufacturing so that could still mean that we'll feel the effects of tariffs in the u.s. business community for some time. >> susan: but it should be remarked and put it out there that the december 15 tariffs have been canceled and rollback the tariffs from 7.5% down to 15 so there are positives but if you were in beijing and looking at a 2020 election year wouldn't you just pretty much hold steady and wait to see who actually wins the vote in november next year? >> i mean, that's really hard to say. yes i think that's certainly one line of thinking in beijing but i think that they also understand with increasing clarity that this is not simply a trump adminitration perspective on china and the need for china to be more aligned with other trading partners in terms of its practices.
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this is a bipartisan perspective on china and the need for china to implement some serious reforms, and also, our trading partners view it this way as well so they know they are coming under pressure regardless of who the next president is. >> susan: anna, great talking to you and happy holidays. >> you too thank you. >> susan: let's take a look at the markets and big caltech one of the big drags on the dow 30 heat map in this final hour of trade, ibm, big blue, losing the most steam, down right now by $2 and change, and this is after a reminder from barrons, that without growth, big blue could find itself locked in the cloud, in 2020. and tesla sparking the love across the pacific, the first model 3 is going on the road. one employee is so charged up by his new car, he went for a major milestone of his own, with his proposal but the romantic display not doing anything to electrify tesla stock today. up next a major move by one of
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regan fridaying day in china with tesla delivering its first model 3 cars from the shanghai plant and shares of chinese electric carmaker neo popping on a pretty good earnings report, n eo soaring as much as 70%, earlier on in the session, yes i said 70% right now we're up to 60% still, but let's talk about electric cars, and tesla, in china, jackie joins us and jackie, i have to say i'm so impressed by this timeline because they just broke ground on the shank i factory less than 10 months ago. >> it is impressive and longer term the stock is being dragged down by the broader market but this is very positive news for the company, so making its first model 3 sedan deliveries, from that shanghai plant in china today is a huge market for cars, electric vehicles, certainly fueling the future if you will and the price is about $50,000 u.s. but there's an exemption from a 10% purchase tax and a government subsidy about $3,600
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bringing the price down a little bit, but that shanghai facility that you mentioned it broke ground earlier this year and as of now some of the parts for the car are still being imported by the expectation is later in 202n china. it's funny because in an e-mail to employees, that was leaked, musk's subject line read "please ignore the stock price" and he went on to say my silly jokes on twitter are just that and what really matters is our actual execution and effectiveness as a company, and that word execution , it has been the biggest issue for tesla, and partially by the stock price has been so volatile this year and the story has been volatile and now 15 units only 15 cars of the model 3 were supposed to be delivered today and in the past, musk has said that the target would be about 3,000 units a week. that is aggressive. also, remember, the government cleared red tape for all of this , roughly last week, probably not a coincidence, given the recent news that we've seen on china trade, but this is a big deal, not only for tesla, but other companies doing
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business in china susan. >> susan: also don't forget they are possibly discounted by 20% as well since they are getting chinese government subsidies but elon musk is a great negotiator and somehow he's become the first u.s. car maker to have a holy owned factory in china. that hasn't happened ever even with general motors which was the first u.s. car maker to enter the market. >> it's a really big deal and musk is a trailblazers erin paving the way but the problem with musk is weave seen him do something positive for the company and then seen him do something frankly foolish when it comes to the tweeting and other things so you have to watch for him. let's see if he can keep it clean in 2020. >> that's right no funding secured tweets please. jackie great to see you. >> let's quickly check in on the big board the dow is losing some steam, we're off session lows, 145 points down, and now coming up next, american fighters are launching bombing raids on iran- backed malitia in retaliation for friday's deadly
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>> susan: breaking news the iraqi government on the american air strikes on iran-backed military groups and bag day saying the u.s. strikes were a violation of the sovereignty and may be forced to reconsider the anti-islamic coalition stationed within its borders blake burman following the developments in the nations capitol. >> susan a lot going on and consequences as the u.s. is pointing its finger for attacks this month that happened on bases inside of iraq the most recent coming a few days ago in which four service members, u.s. service members were injured and a contractor was killed. the u.s. then retaliated on
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sunday, with air strikes against what it says is the iran-backed proxy group responsible for those attacks; however, iraq's prime minister is now saying today that those u.s. strikes violated his country's national sovereignty. the secretary of state mike pompeo saying earlier this morning, that the response was defensive, while also aimed at deterring iran. watch here. >> well it begins by an understanding that this was the defensive action, designed to protect american forces and american citizens in iraq, and it took a strike at american facility, president trump's been pretty darn patient, and he's made clear at the same time that when americans lives were at risk we would respond and that's what the department of defense did yesterday. >> so that was the u.s. air strike in iraq, against an iran- backed proxy group, and iraq is now saying that it is going to be reviewing its relationship with the u.s. following these air strikes susan. >> susan: now in the past i'd
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say that we'll probably see a pretty big bounce from any type of air strike in the middle east because of the fracking boom here in the u.s. , and the oil is supplied pretty heavily. we're not seeing much movement in oil, though we are above $60 a barrel. >> not seeing movement and you'll remember when there were those rocket attacks different incident but rocket attacks begins saudi arabia was a month or two or so ago oil didn't move either, certainly a different time now days when you talk about oil prices and like you said u.s. fracking. >> susan: three-month highs for oil prices but good to see you blake as always be sure to tune in today at 5 p.m. for bulls and bears david asman and the crew will be talking more about the air strikes and iraq's reaction, with state department spokesperson morgan ortega will join us only on fox business so let's quickly check in on the markets and dow falling once again we're lower by 147 points also a decline for half a percent for the s&p 500 and the
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tech-heavy nasdac but this has one major name on the street says it'll be a good year for goodyear. nomura issuing shares of the tire maker at a buy predicting strong earnings recovery from 2020 onwards so goodyear shares the tire maker up some 1% in a down market and big wheels keep on turning for the suv and the truck market despite a growing shift to ev's that was my tina turner impression but up next the surprising driver behind the pickup in big rides the "claman countdown" is coming right back. female anchor: it's 6:39, time for 'news update'
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>> susan: low prices at the fuel pump fueling one very specific area of the car market. the average price of a gallon of gas nationally sitting at $2.58 cheap prices that haven't crossed the $3 mark, since 2014 and that's helping to drive consumers away from the smaller sedans, and ev's in favor of the bigger suv's, to grady trimbull now and grady who needs a tesla when you've got cheap gas? >> i guess so, but with the tesla, you don't have to pay for it at all but that's a lot of consumer's idea. you can see here the gas is below the national average by about $0.08 and that national average has stayed below $3 for the past five years or so, and those low gas prices combined with more fuel efficient suv's and trucks, and consumer's
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desire for more space in their vehicles means they are buying more of those larger vehicles, and in fact, edmonds.com, the car buying and selling website, estimates suv's will make up more than half of fourth quarter new auto sales, and that's for the first time ever, and then trucks will make up almost 20% of new auto sales in the fourth quarter. so, the automakers they're capitalizing on this trend, for example, this is a chevy tariff hoe, this is a 2020 and the 202n inches longer than this model right here, so they are just making the cars bigger because that's what people want but at the same time, susan they are going full speed ahead on electric vehicles as you mentioned. so for example, ford, it unveiled the moch e mustang an s uv all electric and gm is investing billions of dollars into an all electric future which includes troubles and suv 's as well so the question is
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long term which one is going to pay off more? the low-price gas with big suv's and trucks or the all electric vehicles that seems to be big investment lately by the automakers. >> yeah, grady has been cover ing the car companies for a while and as you know, general motors, ford and the like are going all in on electric cars so you have cheap prices at the pump doesn't that negate their investment into ev for the future which by the way still have very low penetration rate globally around 8% of the cars that are sold? >> that's the big question but then you've got tesla on the other hand whose stock is through the roof so it seems like people are buying those electric cars, and i think the bet at least for ford and gm is that that's where things are going long term, maybe 15-20 years down the road, so that's why they are putting a lot of money into it so again, we'll just have to wait and see. >> susan: you keeping warmup there. i like the hat can i borrow it
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some time? >> i'm trying yeah you got it. >> susan: there you go, thank you, grady so let's check in on the big board and the dow down still, in the session we're down 154 points or so but coming up next, why barron's is setting its sights on the oracle of omaha that is berkshire hathaway empire as it looks to a new year and new decade, the "claman countdown" is coming right back. when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me.
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decade, liz. the alexa voice echo pitted against apple's 2010 game changer, the ipad off of the samsung galaxy 7, apple's air pods and sling tv among the nominees on the tech list so when it comes to your home, we have the google nest thermostat and up against the favorite mattress in a box and you can order it online, casper and the red hot instant pots as well as more controversial contenders including tide pods and the ring video doorbell, not to be out done it's an all-in food fight between plant-based the beyond burger and the impossible burger versus meal kit startups like blue apron and plated, mellow fresh as well for the biggest health and food disruptor of the decade a lot to choose from there so i say forget all of those because my top pick of the decade, i have to say, i told you earlier, was the rice
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calliflower from trader joe's that made the list too. >> that's pretty good, susan. i lost the nest thermostat was in there because a colleague of ours, stuart varney could never make it work. susan: he didn't even know the passcode, that's why. ashley: oh, we love you, stu if you're watching but coming up at 4:00 the 2019 trading season almost over, and the santa rally is falling off its sled a little bit today but maybe we can gain that back tomorrow and we'll look ahead also across 2020 and also coming up talking to alvida king the niece of dr. martin luther king jr. and here to talk about the religious attacks and frightening rise of hate crimes across the country and all coming up at 4:00 p.m. susan back to you. susan: looking forward to it thank you so much i don't see ashley enough on the day apparently. let's take a look at u.s. stocks , because u.s. stocks ending the year on a high note
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as we wind-down 2019 and yes, we are preparing for a new decade to begin in just a few days, both stocks close to record highs, where can investors turn to in 2020 and continue to make money? our next guest is here with barr on's top stock picks of 2019 alo keeping your portfolio for 2020 we have associate editor andrew berry here with us live in studio and it's interesting because among all of the picks that you have for 2019, only one was a repeat for next year. >> and that was alphabet, which is a phenomenon company, still trading at pretty reasonable valuation, and i think the concerns about anti-trust are overblown. >> susan: you think? okay well i would say 50 state attorneys and maybe the department of justice would disagree with you on that but alphabet to you is a better repeat pick than apple, which saw an 80% gain this year and the best year in a decade for the stock. >> and alphabet is only up about 25 or 30% so its trailed
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apple and it's actually a similar valuation and has better growth than apple does. >> susan: better growth than apple? but that's the most profitable company on the planet outside of saudi arabia's aramco. they made $60 billion in profits each year. >> apple makes more money, but alphabet's earnings are growing much more quickly about 20% rate while apple is growing maybe 5 or 10. >> susan: so you're saying cap the gains or just hold it in your portfolio? >> i might hold apple but focus more on alphabet. >> susan: because i was just taking a look at the fact that there is zero analysts saying sell apple to start off 2019, all of a sudden as we run up to 80% gains heading into years end , five analysts are now saying maybe it's time to sell it off and cap some of those profits. >> i think it's understandable given the run that apple has had and given the fact that there is a lot of optimism built in for 2020 as far as the next generation iphone and other factors. >> susan: looking forward to that in the unveil in september with 5g down the pipeline as
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well but let's talk about your other picks because berkshire hathaway is in there and as we know class a shares are $200,000 a piece, so i assume for the average investor maybe they should look at class b instead? >> class b are basically equivalent, makes around $200 a share much more reasonable. >> but where is the growth coming from, because behind some investment didn't go as planned, some would say that you're not looking at tech growth, so why buy into this stock with that type of valuation? >> well it's not a tech that is very good business inside berkshire hathaway including the railroad, burlington northern, auto insurance company geiko and a number of others it earns about 25 billion a year and those earnings are growing and apple is having a great year. susan: yes that's right in fact it's the second largest or maybe the largest in single innovates or or in apple and this is from warren buffett who says i don't invest in any technology or
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anything i don't understand but i guess that changes when you have $100 billion buybacks in stock each year. he loves the buyback and price and his grandchildren are helping out on that one. >> susan: remember cbs i was surprised to find that in there because some would say media stocks are low growth shall we say? >> media stocks are low growth and very inexpensively-priced stock around six times forward earnings and i think potentially apple might be buying the company down the road. apple i think is limited traction and i think viacom and cbs is an enormous amount of programming and apple might be interested down the road and it's bite size for apple on $25 billion market value. >> susan: i don't know about that because speaking to tim cook i've asked him you have $230 billion on the balance sheet and he said it's not burning a hole in my pocket and they don't tend to like to make these big type of acquisitions they like to grow organically. >> true but it's tough to grow in the content area and also in tv and streaming, without i
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think a significant library and significant source of it which i think cbs will provide them. >> susan: but netflix did the same thing in 2010 it is a stock of the decade, because it was at a $3 billion valuation back in 2010 and today it's worth $133 billion, and you could say the same thing, netflix back in 2010 you have no content but if you spend $15 billion a year you can actually build that library. >> i think given the competition down the street apple has to get bigger fast and i don't think it has a luxury waiting 10 years to build it out >> even with all that cash because they are essentially giving it away for the first year for anybody that buys an ipad or iphone. >> but to get that generate the program is not easy to do. generating quality programs are not easy to do and that's what they need against disney basically a big competitor and netflix and apple needs to make a mark and it's maybe difficult just doing it on their own. >> susan: you have hbo max coming up in the spring along with comcast as part of your picks. why comcast?
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>> welcome cast has been in the cable sector and quite a good company for leading cable companies with a dividend yield of 2% and the best business now is broadband which is high speed internet connections to the home and much better than the traditional cable tv business. >> susan: are there any stocks you're actually bearish on because these are bullish, so dell, pfizer, anthem, and united technologies, are there any stocks where you say what? >> i'd be thinking of like salesforce.com, workday, and very little or no earnings right now, may have very high valuations in terms of this in their sales so i'd be careful with the software sector right now. >> susan: what about the unicorn crunch because these ipo 's have been under water lyft , uber, slack, peloton, actually peloton was up a buck above its ipo price but some would say that the ipo market pretty much collapsed for these tech giants if they don't show profitability. >> i think uber is the one that could do well in 2020 it could
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be one to watch and international, it's better run than it was before, it's a broader platform than lyft has and i think that there's a lot of pressure on the company to fix it up and start to move toward profitability. >> susan: now that travis has completely severed his relationship with the company, some would say yeah it's definitely a different company but actually there are these ipo 's on the horizon for 2020, airbnb, robinhood. are there any here that interest you? >> well the airbnb is the best company and a phenomenon platform, it's almost a monopoly business and they kind of come to design that space, and i think that would be the one to watch in 2020. >> susan: profitability again is a key concern with these tech silicon valley giants coming in. it's good to see you andrew happy holidays. now the closing bell rings in just about 13 minutes or so, and they by the way, already tested the 2020 ball drop in times square this afternoon, but today 's countdown closer is here
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>> susan: the closing bell ring s in just nine minutes and all of the major averages still in the red, though we are off session lows and the dow is down 183 points the s&p 500 and the tech-heavy nasdac declining by half a percent let's take a quick look at apple it is the only dow stock today in the green, at this hour and the shares are currently up $1.95 and we are closing in on those record levels but again going against the down market that we're seeing, apple is running up over 80% gains on the year, best year in a decade for the stock and wedbush analyst dan iv es said in a note he expects 2020 to be the year of the 5g super cycle and apple will be
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the clear winner according to dan and he will be here with us tomorrow on the "claman countdown" and we want to do a quick round up of the restaurant stocks, i hop parents are up 3.25% and giving its price target a 19% upside recommendation, and eight firms covering the stock have a buy rating on dine brands as well and next up red robin is rallying today after activist investor disclosed that it has a 6.7% holding and its desire to acquire more than 10% overall of the entire restaurant operator yet it is disappointed that red robin hasn't unveiled a strategic plan to generate shareholder value going forward but restaurant brands falling short today after tim horton's unit announced that its president was leaving the company in march after two years
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in that position. now let's change sectors and take a look at the pharmacy chain, rite aid snapping its seven day winning streak let's go straight to the floor of the new york stock exchange where we have deirdre bolton looking at the movers and shakers. reporter: that is right we'll have to point this out because it's down 21% now you remember, 10 days ago, this company had a blow diabetes out earnings quarter that actually posted profit that was eight times higher than what analysts and investors were expecting so rite aid had this amazing run, but you can see now, that it is moving lower, and this is really representative of a lot of what we are seeing in the larger pattern today that is to say the groups and stocks that have led this market this year to all-time highs, specifically last week, are the ones that are weighing on the markets the most right now, so you have consumer discretionary, rite aid in many cases is a great example, also communication stocks, also some tech stocks so these are the ones weighing the most heavily
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on the market and just moments ago in this session before the start of the new trading year, of course, and you only group that's holding on to any gains that is to say consistent throughout the day has been energy. so the only one of the 11 groups on the s&p 500 heading higher are energy stocks. we continue to follow apple as well i heard you mentioning that susan of course number one dow stocks of the entire year and of course more and more people ordering that new generation of air pods, and just reassuring some investors perhaps that apple does have a followup product to its iphone. susan back to you. >> susan: let's hope that the 5g rolls out and just quickly i want a sense of the mood of the new york stock exchange floor given that we're closing in on the end of a decade and what a year its been it could be the best since 1997 are people saying okay we've had a pretty good clear year, let's close it down. i think that's how traders are
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talking about today's session to your point saying listen this is the best s&p 500 performance in almost two decades and do you know what we'll take that up close to 30%, okay today's down but 2019 has been a banner year. susan? >> susan: thank you, good to see you deirdre barbara bush there, now let's talk about the countdown, to 2020 because yes, it's on, and today's countdown closer says yes, the stocks that won't drop the ball in the year 2020 and we are joined the sarg 986 president, stephen gilf oyle. where did that number come from? >> that was my badge number on the new york stock exchange floor. >> susan: let's go back in history if you had a year like this closing in on 1997 although we might fall smart of a 31% gain that we saw 20 years ago you've had 29% gains so far in 2019. will you just close it down and say we've had a good year, low volumes let's take it out. >> if you're a trader that's working for someone else and working for a bonus then yes you
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probably have your bonus in the books. if you're a guy like me who trades his own money and tries to get by you'll probably keep working all the time. >> susan: what about the winners of this year. will they do maybe not as well since apple had the best year in 10 years, and 80% gains nobody is expecting that again for the next 12 months. >> the market is up 10% over a year and a half so let's be a little more realistic. outhit run rate is maybe 10% not 29% going into the next year. my favorite sectors are healthcare as i think it'll be under valued because i think it's political pressure on the whole group so i think i like healthcare, i'll buy it on the political dips and i like energy >> susan: political dips meaning bernie sanders, elizabeth warren possibly gets the nomination? >> let's start it makes traction in the polls so that possible hurts healthcare and maybe i'll take a chance to get longer and the healthcare names i do like going into the election. >> susan: so abbvie is one of those? >> it's a real cheap stock.
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this is interesting humira is a $19 billion a year stock for them and the patent already ran out in europe but studies show they aren't losing market share as rapidly as they thought and they are going out buying amgen which closes next month and that's a $15 billion a year company to replace the sales they think they are going to lose due to humira, so management has gone to great lengths to handle their problems and i think they have more than adequately plus it pays a 5.3% dividend yield. susan: you have to. carrying debts as well as those levels. wondering about your choice in cvs viacom. you're the second person within the half hour, last 15 minutes. >> really? susan: recommended shari redstone's company. >> this is one of my favorites. they are counting on $500 million worth of cost synergies due to the merge.
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increased size and scale, they are going to be able to increase licensing, distribution, production, all these things will come together, i believe to work for them. it is 26 billion-dollar a year company. maybe $10 billion worth of debt. susan: yes. >> my base case scenario is multiple expansion. my best-case scenario, somebody with a lot of cash and not enough on streaming service we could use those guys. you were talking about them all hour. susan: andrew barry said the same thing. apple should buy cvs viacom apple tv needs content. >> that is what i'm thinking. sauce sues shari redstone is not in the market to sell. >> that is my best case fantasy. my price target is $54.
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susan: shari redstone sent less than 15 billion-dollars on content. that is lot of cash burn, with so many services coming online, hbo max. it's a tough market to play. it is competitive. >> tough market, what if you don't look at them in competitive space or arms dealer? say they don't catch the bid. now they're selling all their product or content elsewhere that could be quite lucrative as companies compete with each other. susan: 40 seconds left. i will give you 20 of that. how generous i am. 2020, looking into the presidential votes are pretty good. >> we'll see a little bit of volatility next couple months f you're watching vix related ftns. telling you six months we have calm water going into the election. next few month. there will be volatility and profit-taking. susan: we are down close to 200 points as we end last 20 seconds of trade.
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crossing that 1997 level of 31% gains might be pretty hard for this year. still pretty good don't you think? [closing bell rings] >> tax-loss selling is all it is. susan: closing out the day. hand it over to ashley webster . president trump's trade advisor thinks the deal could be signed. i'm jackie deangelis in for melissa francis. ashley: i'm ashley webster in for connell mcshane this is "after the bell." the s&p 500 also snapping a two-day record streak. nasdaq also in the red but
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