at in davos switzerland talking to him some of the most influential people in the world economy. that's right here on the wall street journal and large. you so much for joining us. ♪ ♪ jack: welcome to barron's roundtable were the sharpest minds on wall street need to get behind the headlines to prepare you for the week ahead. i'm jack cotter and we'll begin with what we think are the three most important things investors should be thinking about right now.

the dow powering towards 30,000, how high can it go and what can stop it? corporate earnings season is underway what is next for netflix, american express and more. and blackbox steps away from kolo baron publishes its list of top societal funds. on barron's roundtable tonight been levinson jack how. benno start with you wednesday the market closes above 139,000 for the first time. and now we are almost a third of the way to 30,000, that sounds to me like a melt up? >> it's actually is a melt up which is a little scary. at this rate it's good again more than 80% this year. this is a melt up. and part of it is this market just doesn't go down. we have had 61 days without the 20 day moving average which is a metric of the short-term trend. this is incredibly just steady rising markets.

jack: in that normally does not happen. >> that does not happen at all this is orderly panic buying at most. and the differences people aren't buying garbage. they might be buying elevated prices for quality merchandise but they rejected some of the low-quality ipos. they are not out there buying trash they are buying companies that are making a lot of money, they're giving the returns and dividends and buying back the shares. jack: and tina there is no alternative? there is there buying high-yield bonds and other things. you don't want to be the treasury right now you want to be someplace that has a deal and it has a potential go up and make you money. kennedy: one thing that, i was very rarely do we see this 11% move in a corner, and three months, and dealing time it's ever happened before is almost ever is when there's a big dip in the market beforehand. the market goes down% vending is up 10% in this case we didn't have that and barry and

usually we don't have a earnings acceleration. subject, when can we actually get some earnings acceleration? >> 2019 was not a good earnings year i think you'll get it in 2020. wall street is saying 10% earnings growth this year. they always start out to pie. >> they always start out ten. >> their skin to be 5% if you get another year of zero, we've got a problem. because investors, are really expecting that 5% or better. gerry: night next on the docket working on and up 2019 and the earnings over the next few weeks is gonna be out fourth quarter. target did not look pretty last week. >> this is to the point because target is what we say not every retailers getting killed by amazon, look at target words gaining shares and others are hurting. people are looking for a reason right now, maybe they had too much and toys after the toys "r" us bankruptcy. people are not buying

electronics. >> or their shopping at best buy. >> there is not a must-have toy this season. we don't have baby yoder toys yet, so more people go to buy for the holidays? >> i like blaming it on baby yoda. so i think we really need to see another quarter to get some confirmation on what's going on. target is not been doing so also maybe they can make some adjustments. >> what's coming up? >> were looking at netflix at the company that had some disappointing subscription ads in the u.s., we need to learn whether all of these new streamers are hurting netflix. we are going to hear from airlines in the week ahead led good numbers from delta so i expect to see good numbers of others united is coming up as well as american. >> they are certainly packing them in and i've been doing some travel in that seat next to me is never empty anymore. >> they have not put them on our laps yet,. >> don't give them any ideas. >> another earnings report this week was black box their time at the letter from

larry. he writes an annual letter to ceos and this year we focused on climate change. >> climate changes also sing us and be divesting itself from coal. some people are saying too little too late. but we see were coal prices are with related companies. and your point is because frankly they're doing terribly because debbie's using coal natural gas is cheaper. >> exactly and i want to highlight it sustainable funds. larry is not off the market here because if you look at funds, whether they talk call themselves bfg or not, they tend to outperform their peers. at least they have in the past few years. and larry would not be taught by divesting from coal or other products in less there is a market for. when he is talking to investors and potential clients, this is what they're asking for. >> this idea i'm hearing you do good and they reminds me sunday slowly put your money in the offering it'll be returned to you tenfold. it's not a hedge fund i would

not bank on the return being superior over the long run. >> what you think and you do better in your portfolio by investing in companies that worry about the environment, social issues, government? >> there are things that are bad for the environment are that are bad to change good for your business. so if you are an oil company and your fracking in their letting natural gas escape into the environment, you are not your environment, we are losing up profit you're getting from that natural gas. you can make more money. it could be a win-win when you put the two together. >> and also if you look long term there is a ton of potential here too. when climate changes at the huge liability for a lot of companies. >> all i know is larry fink has appeased the industrial complex are about five minutes on this. they're gonna come back looking for more. >> he gets it from both sides. if he doesn't do enough to get him, and then people believe in milton freeman, they say don't worry about vallely is just maximize returns.

coming up investors give their stock picks for 2020. but intel ceo bob swan on self driving cars. ♪ do you recall, not long ago ♪ we would walk on the sidewalk ♪ ♪ all around the wind blows ♪ we would only hold on to let go ♪ ♪ blow a kiss into the sun

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they let you park anywhere. have a good day, sir. with geico, the savings keep on going. just like this sequel. 15 minutes could save you 15% or more on car insurance. (glass shattering) (frustrated yell) (car horn blast) (yelp) intel corporation is a leading maker and silicon chips plano priestly port in our lives. year ago this month bob swan took over the seventh ceo of intel's 50 year history. i recently caught up with swanton talks with the challenges he inherited and the opportunities ahead. jack: obviously everyone in your businesses is reacting to secular change in the economy. intel was a dominant force in pcs. and now they're using less macbook is slowing and they've got a phone and they need data centers in the cloud. so can you explain where the

growth areas the futures will come for intel? >> at first i would say the incredible appetite for data. and then underneath that incredible appetite for data is to compute to that is required to make that data more and more relevant and a world that is moving from the pc to the data center to the network and to the edge trying to process all of the information that comes from billions and billions of connected devices. that's a trend we've seen for a while. so what you're seeing happened in the industry, there is so much innovation going on and silicon that as we've seen and a long time, we feel relatively well positioned to capitalize on those emerging trends. jack: anything it's going to be a while before cars are driving themselves everywhere, but you are deep into that game. can you explain what you are doing now for current technology with cars and when you see cars driving

themselves? when can we let go of the wheels? >> the pace that we are deploying technology to bring assisted drive in an ultimately autonomous drive to life has been very impressive and a very exciting prospects for our company going forward. jack: obviously it's more than just the chips. somata things have to fall in place for the highways to be full of cars without drivers, or just someone sitting there. what would you guess, is it a decade off 20 years off, so literally the carpels up to her house and picked up? >> it's interesting if you asked me this three years ago i would have said maybe 2025, today i would say maybe closer to 25 to 30, 2030. but i continue to be pleasantly surprised with the amount of technology innovation and what our teams have been able to deploy in cars over the last couple of months even. so who knows? but it will be here fast, we

believe we have a leading position in bringing these technologies into cars. jack: artificial intelligent is needed to make a car drive. but artificial intelligent will be part of many things the hotel suite in that aspect? >> the places that are most impacted are hard-to-reach places who don't have the things we have increasingly been accustomed to. we've been trying to create images and build maps and places they don't exist such that when there is responders to save lives, we are helping to make that technology simpler and faster. jack: so for example you have taken satellite images of uganda and mapped to swaps of the country in a very short time. >> to swat huge swaths of lands in a matter of hours so rescue can be deployed. because hours and minutes matter in saving lives and these type of rescue

missions. we have been deploying these technologies of broad swaths of land in hours. jack: so switching a little but your specific role at intel. all of your predecessors have been engineers but you have come from the cfo job. why isn't an engineer leading intel? i've were in other things where intel needs great capitalization. can you see what tell me your key priorities are? gerry: >> intel, hundred and 10000 people 70000 engineers, we have the best engineers on the planets, i am convinced of it. so i am not in my role going to outsmart the 70000 engineers that intel has. my challenge is to make sure we are asking the right questions as we invented the right technologies, deploy those to bring those technologies to life. jack: one more question for you and he grove wrote a book

only the paranoid survive. so what keeps you up at night? when you're paranoid when you worry about? >> the opportunities we have in front of us and the risk of not capitalize on that. we have shared a lot of the technologies we have underway in a world where there is more innovation and semi conductors that there has been in a long time. to the challenge in the up at night is making sure we don't miss an opportunity. miss an opportunity to create unique experiences for consumers and/or businesses and deploying more and more technology in the cloud, and the network, edit these billions of connected devices at the edge. jack: thank you so much bob it's a very exciting time in your industry. coming up, our ideas on what you can do right now to improve your portfolio. but first top stock picks from barron's investment roundtable.

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now only $1,799. plus, free premium delivery on all smart beds when you add a base. ends monday. jack: earlier this month bern told our baron roundtable their predictions for 2020. the members also give us their best investment ideas for the year ahead. bill joins us and at the roundtable and he is back with us now. bill, thanks for coming in. first of all just explained your overarching investment philosophy. you focus on free cast flow? >> there is not a business in the world is not driven by its ability to support and grow cash flow. so the difference between operating cash flow and frequent cash flow are the claims, capital market claims, capital spending claims and taxes.

free cash flow allows you to delete a five things. you can return capital to the investors via cash dividends, share buybacks or debt paydown's. in addition though you can reinvest or acquire these are the only choices available to you. so the key for any businesses what's the cost of the capital and what can i earn on that. so it's card our oic return on investment capital minus the whack rate, that spread, is what will really determine how good this set a manager should have. jack: let me ask you about a question you like disney. barron's has written favorably about disney, chewbacca orders for disney big fan of the show. but disney is a company that is spending a lot of money to get their streaming service off the ground. so that's a lot of aware there re- cash flow is going in the near term. but you're not bothered by that because you think it's being put to good use? >> corrects, i also think of the short run, for a year i

don't know disney's going to be a great stock or not. but over ten years it should be absolutely terrific. disney is converting firm of the twisty company. from a bead to be companies for b2c company and set a business-to-business model it's going to be a business consumer model. and that process, all that licensing they do is can be brought back in. and that should allow them to grow their business a lot faster. i think already they have announced something in the order of 41 or 42 million subscribers to the new service. this could be a triple digit number into three years. but that's the way that grow is the way people think. which allows a cash flow in the capital return should be substantial. jack: we've already gave baby yoda plug earlier not giving them more. there is less known company bashes that how you pronounce that? bauer's trades at about four

times the unlevered cash flow of the business. when you think about how free cash flow working as wi-fi views as you can do with the money this is the perfect case. they have to do one thing, pay down debt. >> i went to ask you about that when i hear about them i think of the four pharmaceutical. had they gotten over those problems? >> we think they have gotten over the problem it certainly has a legacy for a beer very bad place. that said, when you look at what the new management is doing, it's quite substantial. they have already paid down to well over $7 billion of debt, the remaining debt they have transition to a lower rate and have turned it out. there should be a substantial increase in stock in this upcoming year. it would be one of our very, very topics this year. jack: i want to jump into a lightning round because bill was one of a bunch of people at the roundtable.

ben tele somebody pic that catches their eye. bed bath and beyond has a new ceo who's really changing things up there. they just had a bad earnings report they dropped close to 20% after announcing. but she things he will get things turned around and this could be actually just a big gain of the next three years. >> and merrill has good credit because she's on the board. >> this will be one that is of interest you to bill at spotify. they say the company might be a little bit misunderstood. it's down a little bit from when it debuted in 2018. it's really an engagement and subscriber story. people love the story look at the end of 2019 when spotify does this rapport they tweet out all the music you listen to. there's a lot of excitement around this company and james anderson recommends that one. bill your spotify fan? yes we also like spotify it's

a pas it's a platform company to two-sided model, they want to serve both the musicians and the listeners. and the key to success of the stock will be growth in subscriptions which should be outstanding in this upcoming year. jack: thank you very much bill you gotta tell me yours jack. >> horizon, you jack of done business there, smart guys always do business there at promising places. so that's my investment pic. emergency childcare. jack: up next roundtable give their investment ideas for the upcoming week. we are to take a short break i'm your mother in law. and i like to question your every move. like this left turn. it's the next one. you always drive this slow? how did you make someone i love? that must be why you're always so late. i do not speed. and that's saving me cash with drivewise. my son, he did say that you were the safe option. and that's the nicest thing you ever said to me. so get allstate. stop bossing. where good drivers save 40% for avoiding mayhem, like me. this is my son's favorite color, you should try it.

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jack: and jackie have been writing a lot, thinking a lot about the new streaming business we just talked about

disney. there's a new entrant in the field you are skeptical that you been converted. i was a peacock pooh-pooh her in recent weeks. i have been on this network, i have been cracking wise about the punky brewster reboot and what the content might be. i think comcast laid out a convincing case on thursday investor day about how they are going to differentiate the service with price. they're going to be tears here that are free with a lot of content. so i still think at the crowded space, but they talk about the money they are going to make from advertising their streaming service which is pretty unique with that for a company with this kind of content. some warming up to it. there's already bookcase for comcast. jack: you pointed out eddie murphy hosted saturday night live in 30 years, and his numbers were down 38% lower viewership. but when you go to streaming up 66%. >> if you look at all the venues, they think television isn't what it used to be but

it's much bigger when you added all in. we are going to go to you guys great actionable ideas. i'm in a start with ben, old school. >> i'm going with barrett gold. gold prices have gone up. they're probably going to stay up if there is inflation, people are going to want to own gold. if things go wrong they want to overlook own gold. it did really well star to keep going up. jack: where we at 1800? it will keep on climbing then. >> so nearing the top of our screen was why cg enhance. >> 's a bear looked at funds of one of the best of them was why cg enhance. >> will be like about this phone is a focus on investors as a long-term outlook. this isn't companies that are doing quarterly results. the founder is the son of investor brian jokinen who makes it quite interesting at the top of our lives. jack: great idea they take advantage of short-term investors make bad mistakes.

to read more and check out this week's edition of barron's.com and don't forget to follow us on twitter, that's all for us, see you next week on barron's now. maria: happy weekend everybody welcome to the program that positions you for the week ahead. i am maria boucher mono makes was an interview with the nations banker, jamie diamond as we touched on another of topics for the day he gives us hear his outlook for the day. but first it was quite the week on wall street, record-setting across-the-board white house trade advisor peter tavarez here to talk at the impact of the historic week that was. the signing of the trade deal as the