barclays barry knapp is up next, on why you can expect only a third of the 2013 gains next year. and wells fargo getting a nice pop after dan loeb here on cnbc revealed his stake in that company. we'll look inside his portfolio and find out what else he owns. that and much more on "the half." [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason

that's the guy who did it, barry knapp. he'll join "halftime" in a "first on cnbc interview" tuesday at noon. >>> the top three trades now. united, continental. cut to underweight from equal weight over at barclays today, stating delta is now the better play in that space. weiss? >> i don't think that's anything new. i think they're late to the party. i love the group -- the entire group, ual happens to be my least favorite. favorite remains american and u.s. air. >> priceline is in the green today despite disapointing guidance and separately the company is going to split the chairman and ceo roles, as well. what's the trade here, guys? >> well, i still look at this stock, scott. and this is one of these you look at the q3 numbers they put up, they crushed. this is not an overly priced stock right now. very much like expedia. i they'll both have room to the upside. >> all right. and the gap today? that's an interesting story, too. jumping after reporting better-than-expected third

but barclays barry knapp is here with his just released outlook for 2014, and why he is expecting a third of this year's gains. that and much more is ahead at the top of the hour, carl. >> thank you so much, scott. >>> we're here with david favor who, i think, has some terms of the settlement between the doj and the u.s. air and amr. >> in fact, that is the case. we have a press release from the department of justice,out lining the settlement. six states attorney general and the district of columbia that joined in the doj objecting to this merger, we have a proposed settlement, one we expect is going to have -- will be accepted, has already been, and will be put in place. it is going to call for a good deal of divestitures at airports in boston, chicago, dallas, los angeles, miami, new york, and, of course, reagan national outside of washington, d.c. saying, at least what they say,

barry knapp is barclays head of u.s. equity strategy, joins us live from new york city. barry, welcome back. >> good afternoon. >> so it's fair to say you're positive on where stocks go next year, but it's not exactly you're a raging bull. >> no, i think that's -- that's fair. we've obviously had a tremendous year, and to some extent, we spoke about this earlier in the year, we expected that there would be a fed policy normalization-related correction that would occur most likely in the fourth quarter, like most people we were expecting them to taper in september. so in essence, what happened, we immediately increased our price target after they took a pass on that to 1,800 from 1,600. and so, what we think basically happened is they pulled some of the returns from 2014 into 2013. now, you know, if you think about the last three fed normalization-related cycles, it matters a lot where the market is in terms of valuation for how that forward year goes once you've actually gone through that process of getting the fed to take the first step to normalize policies. so, for ex

our guest host is barry knapp, the head of strategy at barclays.ur morning headlines. >>> we do have news for you this morning. boeing has chosen 15 possible u.s. sites to build the new 777 x long haul passenger jet. the locations include the following, washington state, long beach, california, salt lake city, huntsville, alabama, san antonio and north charleston, south carolina. and also in a little bit of other boeing news, companies advising about a new icing problem on the 747. boeing is urging 15 carriers to avoid flying them near high-level thunderstorms and japan airlines has already changed a couple of the routes with different plane, replacing these planes with other planes. everyone knows i'm a nervous flier. and we have people on planes watching us now. i'm going to cut this conversation short. >> i don't know if they're watching from a 787. and if i could accept my payment right now for getting up so early. which is a cheap tease of my show "signs" at 2:00. this stock no matter what pro problem you have. the battery problems, this. noth

>>> our guest is barry knapp. you have about ten seconds. what do you think. >>> next year will be a good year for the economy but not as good for the markets. >> thanks for being here. it has been a pleasure. >> make sure you join us tomorrow. "squawk on the street" begins right now. >>> good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer live at the new york stock exchange. david faber is off. given this news out of walmart, we are going to get him on the phone. company veteran, dug mcmillon will succeed steve duke. you were just talking with andrew about why you would do this days before the holiday season would start and why mike duke is leaving years before expected. >> he hasn't been there but since 2009. his predecessor, lee scott, 2000 to 2009. it seems like a shortened period. also, as someone who follows retail closely, this is not the time to change horses, so to speak. at the same time, i am sure this company will, without a doubt, say it is seamless. i want to hear from david, that there

barry. it's still knapp, right? >> it still is. >> that's a "k." >> it's like knowledge. >> all right. >>> when we come back, the dubai air show takes off with billions of dollars in deals. we'll get an update after this. then ron williams on the future of obama care and what it means for you. plus retail talk and trends with the former ceo of toys r us. customer erin swenson ordered shoes from us online but they didn't fit. customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy. unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. (both) i'm happy. i'm happy. happy. happy. happy. happy. happy happy. i love logistics. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see