face on and global growth year to date exxon is flat as the entire energy sector is facing headwinds from higher production costs and weakness in refining. headwinds from higher production costs and weakness in refining. earlier this week the asia pacific economic cooperation. earlier this week the asia pacific economic cooperation summit set for mid november in santiago chile was cancelled amid widespread protests on that set for mid november in santiago chile was cancelled amid widespread protests in the nation. due to its proposed increase in public transportation fares and what demonstrate in the nation due to its proposed increase in public transportation fares and what demonstrators call economic inequality news of the cancellation swept across the globe as call economic inequality news of the cancellation swept across the globe as it was anticipated that presidents donald trump and she would sign phase one as it was anticipated that presidents donald trump and she would sign phase one of the trade deal between the united states and china following these initial reports of an o

mobil the lowest ratings since april and may of 2009 exxon mobil was the best performing stock in the dow even as they reported a 49 percent decline it was the best performing stock in the dow even as they reported a 49 percent decline in the 3rd quarter earnings on the back of lower oil prices and higher costs the results in the 3rd quarter earnings on the back of lower oil prices and higher costs the results top the street pessimistic forecast and shares popped more than 2 percent in friday's trading sessions topped the street pessimistic forecasts and shares popped more than 2 percent in friday's trading session growth continues ahead of schedule in the permian basin as it made good progress on divesting growth continues ahead of schedule in the permian basin as it made good progress on divesting non-poor assets falling oil prices and oversupply continues to be a concern for assets following oil prices and oversupply continues to be a concern as exxon is exceptionally vulnerable to any slowdown in global growth as exxon is exceptionally vulnerable to any slowdown in global growth y

to any slowdown in global growth year to date exxon is flat as the entire energy to any slowdown in global growth year to date exxon is flat as the entire energy sector is facing a headwinds from higher production costs and weakness and refining sector is facing a headwinds from higher production costs and weakness in refining. earlier this week the asia pacific economic. earlier this week the asia pacific economic cooperation summit set for mid november in santiago chile was cancelled amid what cooperation summit set for mid november in santiago chile was cancelled amid widespread protests in the nation due to its proposed increase in public transportation fares spread protest in the nation due to its proposed increase in public transportation fares and what demonstrators call economic inequality news of the cancellations what and what demonstrators call economic inequality news of the cancellation swept across the globe as it was anticipated that presidents donald trump and what's up across the globe as it was anticipated that presidents donald trump and with so.

and that's what exxon found out today. >> so low.ng can they old on to e of the gains we're seeing today. >> you look at it, exon's net income fell from $3 billion. fell from 6.5 to 3 point something. it was nearly cut in half the number -- drops are really incredible >> if we ever see a saudi aramco offeri offering, is that money coming out of the chevrons and the exxons or -- >> it depends on how much that might ramp up oil production i mean, the reality is simply this the u.s. is now the price maker, not price taker. 12.5 million barrels a day is what we're producing if you want to blame opec or the saudis or blame russia, you also have to look at the united states everybody is producing more. that's why to your earlier point, karen, when we had the attacks in saudi arabia, on the oil field, we did not see a long-term spike in oil because there is so much oil out there, and it's hurting exxon, chevron, and everybody else. they've held up, by the way, a lot better than those heavily indebted small and mid majors we were talking abo

is exceptionally vulnerable to any slowdown in global growth as exxon is exceptionally vulnerable to any slowdown in global growth. year to date exxon is flat as the entire energy sector is facing headwinds from higher production career to date exxon is flat as the entire energy sector is facing headwinds from higher production costs and weakness in refining. costs and weakness in refining. earlier this week the asia pacific economic cooperation summit set for mid november and saw earlier this week the asia pacific economic cooperation summit set for mid november and saw.

guy, stocks also higher today include chevron and exxon. almost up, and exxon 3%.ing earnings before the open. forecasting a gloomy 2020. for more on what we expect, let's bring in our guest. -- are these companies not capex? fernando: for exxon, they can't. they spent a very long period investing in poor capital projects. they did a lot of heavy oil. when you look at the resource base, it was really poor. steps to address that. but these products to 510 years to get to production. the permian basin is already growing at a fast pace, but they are years away from delivering free cash flow. they have to keep investing so they can sustain at the very large dividend commitments that they have to their shareholders. guy: is there an opportunity for m&a? many of them are struggling as are some of the bigger integrated companies looking to gain access? fernando: they are. it is going to take a while because they have the means to wait for further stress in the sector. not all of these players have the anchorage that is attractive enough for them to make a move. chevron, t

chevron in the red, whilst exxon is in the green.hevron the only one of the oil makers to miss estimates on profit. of course, those gains in the permian helping to offset lower oil prices. we are looking at them edging higher today, but headed for the biggest weekly loss in a month for oil. in the week that we were supposed to see brexit happen, i wanted to point to the pound, looking at a gain of more than 1% this week. this after october proved to be the best month for the currency since april. sterling trade is now focused on that general election on the summer 12th. guy: aren't we all -- on december 12. guy: aren't we all? any moment, more on the data out of the united states and the commentary that comes with it. at noon, david westin speaks with house speaker nancy pelosi following the impeachment vote yesterday. this is bloomberg. ♪ ♪ guy: welcome back. you are watching "bloomberg markets." vonnie quinn in new york. i'm guy johnson in london. let's talk about our weekly etf segment. here to discuss, bloomberg intelligence etf

exxon has rejected those claims.ain, acting prime minister pedro sanchez is forming a coalition to break the political deadlock. sanchez's socialist party will team up to put an end to months of squabbling between spain's leading left-wing parties. former president jimmy carter recovering after a surgery to relieve pressure on his brain. he's in a hospital in atlanta. mr. carter has fallen ill at least three times this year, and had hipper placement surgery in the spring. he is 95 years old. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. back to you in london. guy: thank you very much indeed. the idea of a brexit may be hitting the u.k. labor market. jobs were lost in the third quarter. it comes as the campaign for the december election intensifies. ,till with us, alberto gallo partner and portfolio manager at algebris. is this a clear victory for one party? do we need certainty more than

exxon mobil, for example, you can get a dividend as you wait. vonnie: we all know with commodities, prices go down over the long-term, nothing seems to be positive coming out of oil demand. lots of demand out there. the makes you think that likes of exxon, chevron are undervalued? >> oil demand grows over the long-term. obviously, a lot of focus on electric vehicles, but gasoline is only about 30% of demand. the other parts are growing, jet aviation, plastics. there is a broader market for energy. beyond that, if you have an electric car, what are you plugging into at night? the grid. most of that power is coming from natural gas. vonnie: these days, 30% of your portfolio is in cash. the grid. is that more than usual, and if so, why? are there so few opportunities? >> about 30% in cash and gold combined, split roughly between those two things. we don'twith the cash, try to force all the money to work at any one point in time. we wait for obvious opportunities. with the market at record highs, it is hard to find bargains. the gold is there as a p

the group tweeted -- "exxon knew in 1982 they were stealing our future. and now they'll pay for it." swedish climate activist greta thunberg has turned down the nordic council environment prize, rejecting $52,000 in award money. in a statement posted to instagram, thunberg called the offer a "huge honor" but wrote -- "the climate movement does not need any more awards. what we need is for our politicians and the people in power start to listen to the current, best available science." she will be speaking today at los angeles city hall. in california, homes in san bernardino burned to the ground thursday as climate change-fueled fires continue to rub around california. a new fire also broke out in ventura county, prompting thousands more to evacuate. in north dakota, the keystone pipeline remains idled after the tc energy company said a rupture spilled over 380,000 gallons of crude oil in a rural wetland. the skill came as the environment protection agency moved to roll back obama-era regulations meant to prevent toxic heavy metals from coal ash from leach

exxon the latest to come out. exxon earnings coming in at $.75 a share.definitely beat estimates. is up 17% year on year, want -- 17% on year. i don't necessarily think the market might like that number. cash discipline has been huge for all oil companies. downstream earnings were hit, down 25% year on year. that was a real savior for the likes of p, so interesting to see what happens with that. the real conversation that everybody cares about is going to be what they are going to do about their dividends. still with me is lauren goodwin of new york life investment. it doesn't matter how good or shell'sr quarter was. it was how they talked about it on the call. what does that say about the oil story? lauren: it is a dividend story. would you look at the way investors have been transitioning in equities to higher dividend yield, more cash flow in equities, bonds moving higher in quality because you need to rely on that cash generation because you can't rely on prices going up necessarily, absolutely a dividend story. alix: even if the evidence are expensiv

it was also down stream and in the case of exxon, it was also chemicals. quarter, there's a lot of problems with the industry is facing however, that being said, both companies look like, you know, they're certainly investing for growth i like chevron's growth potential a little bit better and i -- i'm sorry, say again. >> so, stuart, taking a look, i mean look back at a year ago and oil was in the 70s today, it's in the 50s where does it go from here and what does that mean for energy stocks overall more broadly? >> i think the outlook for oil prices is pretty mediocre. i think if you argued for something in the high 50s to low 650s range, that seems reasonable to me because there is an awful lot of supply still out there and global demand is being buffetted back and forth depending what the trade discussions are like of the day. i think the biggest thing these companies have going, chevron particularly, is, you know, their exposure is very strong. they have an awful lot of -- they can harvest a lot of the fruits of the stuff they've done in australia wit

exxon and chevron will be two different stories. chevron is in a much better state than exxon.ing for information on potential m&a. exxon, we are looking for something resembling a turnaround. no one wants it anymore. the ceo is showing up on the analyst calls making an effort, trying to show investors they are friendly again. i guess we are looking for a continuation of that effort. matt: how does the trade war and possibility of a trade truce affect the outlook for these oil majors? stuart: enormously so. shall is a very good example -- is a very good example. we fell back three or 4% on the open yesterday, largely a function of them saying there are some doubts about the timetable for the buyback given the lack of economic growth. there is no doubt you are seeing it for the futures in crude oil. it is not all about supply specifically on the demand side. anna: stuart wallace, thank you for joining us. next, the impeachment inquiry. live tojones joins us also talk about jobs. this is bloomberg. ♪ ♪ to bloomberg back markets. open." "the european looking at pretty solid green

you look at the profits in the 1st 9 months of this year it was more than $46000000000.00 to talk exxon mobil for example 4 and a half years to even come close to those numbers so if you look at amazon dot com also one of the richest companies when it comes to market valuation on the planet since their start they made about 40 percent of profits what saudi aramco did in the 1st 9 months of the year but clearly there are risks involved and we're certainly waiting for me details also who might be allowed to buy stocks in saudi aramco in the past the only big institutional investors with a search on the management of more than $500000000.00 or even allowed to invest into saudi traded stocks. german car bosses met with lawmakers in berlin to discuss how to get more e-cards on the road as germany struggles to meet its environmental targets and it looks like increasing consumer subsidies is said to be one measure but pricing is far from the only challenge the summit comes as europe's biggest carmaker for its fun begins production of its big bet in the mobility the id the idea $3.00 is the com

to return to the country as soon as possible and is resigned under pressure on sunday he went into exxon in mexico off to weeks of protests prompted by allegations of fraud following his election the interim leader says he may face criminal charges if he returns. authorities in bosnia are threatening to impose a lockdown on 2 large migrant camps in the north west of the country to press the central government to relocate people the local mess says the camps near bosnia's border with croatia are dangerously overcrowded. venice has been hit by flooding from another exceptionally high tide so mark square has again been underwater and closed to the public and the levels of midday on friday did not reach those seen up to the peak flooding earlier this week with the water still poses an ongoing threat to the cultural heritage of the city. land and sea become one again another exceptionally high tide is wreaking havoc on venice workers dismantle elevated walkways to protect the public. it is yet more destruction after days of dismay. not jurado has given everything to this place. none of the fr

look at the profit in the 1st 9 months of this year it was more that than $46000000000.00 that took exxon mobil for example for an hour of years to even come close to those numbers or if you look at amazon dot com also one of the of the richest companies when it comes to market valuation on the planet since their start they made about 40 percent of profit what the saudi aramco did in the 1st 9 months of the year but clearly there are risk in waltham we are certainly waiting for me details also who might be allowed to buy stocks in saudi aramco into pos the only big institutional investors was as it's on the methods of end of more than $500000000.00 or even allowed to invest into saudi traded stocks as part of their on wall street for us thank you very much now to some of the other global business stories making news one of 3 parachutes a failed to open during a crucial unmanned test the boeing c.s.t. 100 starliner despite the parachute failure boeing declared the spacecraft abort test a success this is them is designed to propel the crew to safety in the event of an emergency the starline

>> it would be exxon i've always said exxon because they're going to be here forever. >> there's not in the technology space. >> in this lane i'd say ncr. i think it's just cash flowing out, it doesn't pay a dividend, it earns 220 i know it's old and stodgy, andrew, but that's where you really make money long term. >> paul, i give you a hundred grand. i know you'd need a million or probably ten to manage my money but if you could only buy one stock you'd by one >> i'd be the wireless fund or 50 in applied material and 50 in energy >> many will say that more than any other factor consumer spending whats behas been the df growth in retail people are picky about where they shop. macy's has plummeted more than 50% at this point. some retailers are still rocking it, best buy and dollar general have jumped over 40% while target shares are up 67% already. here is michael lassiter good to see you. >> good to see you >> we're going to be talking about target we'll talk to their ceo tomorrow and i want to get into what happened with home depot today >> target tomorrow will do better than a 4 c

i'm not a sports ball person. >> let me throw it back to you what did exxon mobil say about capex?the wires. it said 7.7 -- >> is that up or down? >> i don't know. >> because one of the new things out there along with this high tech stuff we're talking about is the seriously low tech stuff, which is the oil and gas business has a profoundly different effect on the u.s. economy than it ever did you do not create oil production the size of saudi arabia, put it inside the u.s. and say it doesn't have an effect it is unclear to many economists now are higher oil prices bad or are they good for the u.s. economy? you can look at the slump in 2015 and '16 in the u.s. economy and that was directly tied to the oil prices and a lot with the capex boom we had coming out of 1018, 2017 is because of higher oil prices. >> that's a tax on every single -- >> yes >> in the near term. >> it's a regressive tax >> it is true. >> becky, you've been on a plane. you've been to these places where there's huge, huge income as a result of higher oil. >> it's a regressive tax. >> it's true. >> thank you by t

states so let's talk a little bit about they said now with an expert in joining me in the studio is of exxon the shares she's a research associate at the german institute for economic research also known as the dia i.w. so you constructed a study on the impact reunification hot on the economies in the 2 germany's how divided or how united is germany now in that respect well i think we came a good way to being united. there's still a gap and it's. it's a considerable we talk about putting on the indicated 30 to 20 percent in terms of for instance productivity so there's still way to go what is the biggest problem well essentially we have completely different structures to some degree we have a very rule east and we have as a west that is much more urbanized or even you know very urban areas and we know from you know from research that urban areas and firms in urban areas have a higher productivity so. to some degree real little bit compare apples and oranges when we say ok the east must be like the west because it's a rule area verdant versa or there's an organized area exactly but as you sai

on revenue, sales coming in at $65.05 billion for exxon.g gas prices -- i should say oil prices have been low, so have natural gas prices. that has hurt commodity prices which you think would hurt exxon, but no, they've beaten on the top and bottom line here. so pretty good. upstreel and downstream -- upstream and downstream numbers are okay. they're facing trial on grounds of misleading investors on the costs related to climate change regulations, it will be interesting to see if they get into that at all in the quarterly report. haven't seen anything yet. but the headline numbers, pretty good for exxon, moving slightly higher in the premarket. neil: thank you, my friend. the commerce secretary of the united states, wilburs ross is here. secretary, very good to have you. >> nice to be on, neil. neil: you know, the space of sf earnings reports have come in pretty good, better than expected. forecasters say next year they expect it to rise robustly. are in that camp? >> i think next year will be a very good year because you won't have a gm s

ellos son hÉctor moreno, exxon alvarez, eddie gutiÉrrez y raÚl jimÉnez.mplora que se apure para que no lo llevan a un hogar sustituto. entre dolo en taller dan a tres de los nueve miembros de la familia le barÓn. el seÑalado por autor de esta matanza familiar estarÍa detrÁs de una matanza. el recorte de la semana laboral, se imagina de

if exxon runs a climate change ad, is that a political ad or exxon ad those questions, nobody has figuredhere the lines are. and that makes it particularly tricky for all of the companies. >> very difficult thing to separate into two. let's get to twitter as well, guys two former employees accused of spying for saudis as doj alleges they used access at twitter to get nonpublic information on dissidents of the saudi regime we talked about whether dorsey did a great thing setting a goalpost, seems in some ways, no one is clean >> sort of ironic juxtaposition, right? i think the sub text in this conversation is enormous, unprecedented powers the companies wield. a power not even clear the government can control if they want to, and not clear the companies can control the power they wield, even if they want to i think that's frightening add on top of that their interests are not necessarily aligned with the interest of the united states. so we have something really unprecedented playing out right now, and it is frightening to me, one of the more interesting parts of the lawsuit is that one of

it was a relatively expensive offering, dividend yield is lower than exxon, other similar competitors price people will invest, but not as high as we all thought it was, or as saudi arabia thought it would be. amber: thank you for those insights, david. iscking with energy, there an ongoing tug-of-war between u.s. republicans and democrats about the government's role in addressing climate change. one former epa official says bipartisan support for environmental protection is not only possible but it's been done before. the epa was started 50 years ago by president richard nixon. i sat down with him earlier today. at that time, environmental issues, broadly, were bipartisan. a clean airpassed act, 1972 of the clean water act. legislation went through on broadly bipartisan majorities. the truth is, environment, at one point, was an issue that republicans were deeply committed to alongside democrats. it's only been in the last 20 years that it's become a partisan issue and really a wedge issue, with each shied -- side pushing to the extreme side in manyit's only been in the la0 condition

the government new in the 1980s and so did exxon that this crisis was coming and what did exxon do? they didn't do nothing, they bought out politicians. they paid for disinformation campaigns. anytime you see a natural gas commercial on tv, that is political propaganda. that is climate denial. [applause] >> now we have this election coming up. that means we have a choice to make. are we going to vote for someone who sets the bar low, who is willing to compromise with crony politicians who don't share the same facts and don't share the same values as us or are we going to vote for someone like bernie sanders who has been in this fight with us for decades? this crisis is a crisis but it is an opportunity. it is an opportunity to choose something better than the status quo. an opportunity to make a statement to the rest of the country and the rest of the world that new hampshire chooses people over profits, fact over fiction, and faith over fear. help us make that statement by voting for bernie sanders. [cheers and applause] >> thanks. i should clarify when sam said he wanted to introd

rex tillerson is not dumb as a rock he was a bright guy that ran exxon. you know, john mccain was a true war hero but, you know, he has to become a president for the entire country and not just his base. so if i was him, if i'm not prepared to change my behavior, i would take a victory lap and not run again. the country of western singer kenny rogers his song "the gambler" know when to hold them, know when to fold them tell the president why are you putting up with all this abuse, all of it is not unfair, some of it is fair, some unfair. i'm waiting for walter cronkite to come back from the grave so i can get my news objectively. i don't need it from cnn or msnbc, i don't need it from fox news we don't have news services anymore. we have propaganda machines. but the stock market is at a record high. the economy is growing i mentioned a moment ago 5 million more people at work created in his presidency. we have a record high employment, record low unemployment amongst minorities. taken a tough path of opening up trade dialog with china. i focused the discu

in changes is recognizing the judgment is fallible why don't investors if they want 500 shares of exxonide to by it in 100 share increments they want to be big and not waste the broker time. your broker wants the trade done i know my brokers hated incremental orders like i describe but it's just plain hue brings to put a marilyn chunk of the net worth into all the stock at once maybe it goes to free fall that's you need to resist feeling like making a statement when you purchase stock. i bought and sold billions of shares of is to stock. embassy do you know how often i got in at the bottom how often it was lowest off to the races maybe one trade in a hundred and i'm good at this game resist the arrogance buy slowly even over a couple of days as i tell member of the action owners plus.com club. humility beats hue brings every time next rule buy damaged stocks not damaged companies. let's say the mall is having a sale and you pick up the merchandise. you find out it's broken maybe a hole in it, maybe it's a shirt in the real world you can return it and get money back. guarantees and warra

energy is only 4% of the s&p and two stocks exxon and chefrp are half the weight of the sector. if you look at real sectors, it's the worst performer that's the opportunity and yet it's now a recent outperformer, as you also said, melissa, meaning it's on a longer term basis underperformed you have the set up of one, two, four weeks of outperformance and the second thing, the second biggest sector in the market it's an important sector, that's lagged, showing nascent relative performance. and the bet aring here, whether it's a political overhang or whatever you call it is actually a place to commit capital versus chasing things that might be steep like apple or cha chases the cyclical trade which has had a lot of money go into it, banks, industrials those are sort of pulling back a bit. i think this is the single best opportunity in the market. >> mike, what's the trade. >> i think the health care sector is interesting for a couple of reasons. one of the things we can look at, valuation, it has been a weak performer possibly because of some political reasons. that would be a rea

yieldsuld make competitive with rivals like exxon and shell.ten to stretch the world's largest crude producer if prices fall. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. alix: thanks so much. one of my favorite stories is they marketing the saudi aramco ipo on atm's in saudi arabia to get retail investors interested to buy. romaine: that seems like a good sign. the thing i find interesting is the dividend. the minimum was at $75 billion. she says that makes it competitive with exxon, but there is chatter they will have to bump that up. they will be able to entice their own citizens for a variety of reasons, but trying to entice folks in europe and the u.s. to come into this, you will have to boost that dividend and put it above exxon. you will have to put it above what you pay for western oil company. you get 6% dividend yields were less than 6%. right now to $75 billion. that is a 5% dividend yield. investors want

ellos son hÉctor moreno, exxon alvarez, eddie gutiÉrrez y raÚl jimÉnez.o lo mÁs destacado en informaciÓn del mundo deportivo. paola: nos despedimos. no se pierda nuestra serie especial. r amon: sÓlo a las 11. [mÚsica] jorge: jueves 7 de noviembre y estas son las principales noticias. >> ma, le arrestaron a papÁ. >> es emigraciÓn. jorge: la gramÁtica llamada de un adolescente su mamÁ avisÁndole del arresto de su padre por parte de inmigraciÓn . le implora que se apure para que no lo llevan a un hogar sustituto. entre dolo en taller dan a tres de los nueve miembros de la familia le barÓn. el seÑalado por autor de esta matanza familiar estarÍa detrÁs de una matanza. el recorte de la semana laboral, se imagina de cinco dÍas a cuatro que estÁn adoptando ya varias empresas. ♪ ♪ >> Éste es su noticiero univisiÓn cono jorge ramos y desde ciudad juÁrez, mÉxico ilia calderon. ilia: hola, quÉ tal? muy buenas noches. lo saluda desde ciudad juÁrez, chihuahuaen mÉxico . una ciudad que se ha visto sacudida por una ola de violencia en los Últimos dÍas. vamos a comenzar c

how do you look at that is a risk compared to the likes of exxon and chevron?istopher: those risks are very concerning because they are things you cannot predict, cannot control. i think you are going to find a lot of investors who are willing to take those risks for the certainty that is going to be given. that said, there's a lot of devil in the details in that we don't have any idea of the valuation. we don't know how much it's going to be sold. we don't know what the payout ratio is going to be. there are so many things we still have to learn, but all in all, it is a great company with great position in the markets. alix: so we think energy is deep value at this point. what position would you want to take at this point in the overall sector? christopher: we love energy at the right time. today it is kind of either way. i won't say it is going up from this level, but we are not really cheap and not really expensive. long-term, we think there's good cash flows to be given, but at the same time, there's no real telling entry point in the public markets. we pre

when we're below the level you're not even talking about a sector you're talking about two stocks, exxon and chevron at 40% of the sk tor weight. it wouldn't take a lot to move it because people have abandoned it >> there are only three things that can happen to conoco. it can go higher it can stay here, in which case the trade is profitable. or it could go down, in which case you would risk less than would you have if you had purchased the stock. two things are good, one's less bad. >> for everything "options action," check out our website you cancheck out our super coo newsletter in the meantime, here's what's coming up next >>> tesla's new cyber truck revealed, failing to impress investors today. and if you're betting on an even rockier road ahead, our mike khouw is rolling out a more bulletproof way to call the stock. plus, calling all "options action" fans reach into your pocket, grab your phone and tweet us your question, if it's nice, we'll answer it on air, when "options action" returns. ♪ ♪ ♪ ♪ ♪ some things are too important to do yourself. ♪ get customized security with 24/7 m

gas companies includi exxon, chevron, aot of names you know, is about $400 billion less than the expected value of just one country saudi aram co. one company, the entire onshore oil and gas industry. energy stocks have never been more hated and debt is a gig reason why. it is a big story to watch heading into 2020. for "nightly business report," i'm brian sullivan, cnbc. >>> tim to take look now at downgrades.ay's upgrades and netflix was downgraded to underperform at market from wells fargoal analysts saystreet is overestimating the streaming service's free ch flow andre then t the increase in competition. price target $265 and despite that downgrad shares actually rose with the rest of the market, was up 1 1/2% to $315.55. financial was downgrad to sell from neutralt at citi, site citing growth and interest rates that reduced profitte price target $86 and that fell a frabs to $93.77. >>> nvidia was upgraded to morgan stanley.qual weight the analysts cites investment is gamingess that should pay off next year. price target is $259 and stom up 4 1/2% to 221.21. wendy's was upgraded from

quality investors who are also shareholders and around goes competitors such as royal dutch shell and exxon mobil aramco will not be able to sell shares directly to investors in the u.s. and other markets as i.p.o. will be restricted to saudis and a select group of 1500 qualified.

quality investors who are also shareholders and around goes competitors such as royal dutch shell and exxon mobil aramco will not be able to sell shares directly to investors in the u.s. and other markets as i.p.o. will be restricted to saudis and a select group of 1500 qualified foreign investors permitted by market regulators. and for more on this and other market movers we are now joined by peter schiff the all of europe of a capital and todd bubba horowitz chief strategist about the trading so let's start off with you it seems like the only way that saudi aramco can sustain its nearly 2 trillion dollar valuation is by artificially buffering it from the global markets and offering a sweetener to investors in the form of local banks making loans available for the sole purpose of investing in this i.p.o. so what is the purpose of this anyways they don't need to raise any more money it's already the world's most profitable company and its previous goal of getting a rambo circulated and diversified outside of this region seems to be a moot point if now they're limiting it to the only domesti

is it much different from exxon and what it does? no, it just happens to be located in europe. i think there is that concern for the european economy but less so except on a global basis for growth -- maria: what about china? this week we saw the chinese come up with this idea that maybe it's going to be harder than people think to get a trade deal done? that, obviously, impacted markets a bit. although the president came back and said, look, we're going to find another mace to sign it because there's not going to be an a apec in chile. >> yeah, look. china is ine credibly important to investment today. i think trying to figure out when and where the trade deal might be signed is probably a difficult thing. when you step back and say china's the world's second largest economy, it is slowing, but it is also relative to dynamic, and it's carrying a huge burden from global growth per sect andive. it's -- perspective. it's still going to grow in and around 6 president which is much, much higher than anywhere else. we've got to look at it. but i'm not, i'm not trying to follow where

tell you honestly but i mean if the american investor comes to you 6 months down the line and says ok exxon mobil is investing i am going to put the plug on the gas but i'm under one. when it comes to gas supply what matters to us to be safe i mean predictable and to be cheap that's a competition so we have to take care of both strategic and tactical interests as well and you know it's a competition so whichever is the. source is the cheaper and whatever source is more reliable we. the minister and none of those projects that you mentioned operational yet and yet you already put your. context of gas from into question you were considering whether to extend an olive and this is my question has expired i mean that's another good or a question is has expired because at the end of this year or next year delay does it expires but you made it sound that russia is your. 3rd there were maybe a 2nd safe option if the americans are not there and i'm asking you whether it is fair to russia. well there may be a member so he never ever while you were at a conference i think it was in texas when you when

a plane from exxon in the modest tells are just there and he wants to return to bolivia and finish his presidential 10 and how christiane of an alibi could be about to reach and not a big milestone and has coming in that's coming up with the jones polls. white supremacist violence is on the rise in america he was about in this whole underground network 8 full time speaks to the victims of recent attacks when he shot me i turned around you were killed my daughter and asks how an ideology of loathing has found its way into the mainstream can you trawled through line between the rhetoric of president trump and the conservative media in america to what happened here in el paso license to hate on al-jazeera. al-jazeera clearly is different because there's a maturity about its views got in the is generally a little silly child but the birds took the risk of a story like yours. a little bit more going on in the culture 0 is says you know. basically you know the reality on the ground that other reality will grow slowly become the chairman of the police and that's what we do nothing else but we

world and energy is at 4.5, we are below the level you're not talking about a sector, two stocks, exxon chevron at 40% of the sector weight and the sector is only 4.2% of the s&p. it wouldn't take a lot to move it because people have abandoned it. >> only three things can happen to conoco and the expiration it can go higher, which it is profitable in which case it's profit annual it can stay here, which it is profitable it can go down and you lose a little. >> for everything "options action" check out our website, "options action" doptionsactio m optionsaction.cnbc.com >>> tesla's new truck. if you are betting on a rockier road ahead, mike khouw is laying out a bullet proof way to play the stock. >>> plus, calling all "options action"s fans. reach into your pocket, pull out your phone and tweet us your question at "options action. if it's nice, wel sw'laner it on air when "options action" returns. ♪ ♪ ♪ ♪ ♪ it's got all my favorite shows turn oright there.boom, i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only o

exxon profit nearly cut in half though it did beat analystst estimates coming in at 75 cents per shareevron earnings fell 36% to of $1.45.share missing estimates . . in trading shares of exon rose 3%. chevronevp a fraction process nopinion. >> to merger news. google parent alf bit is buying fit bit for more than $2bi ion. it may seem odd since fit bit dominated the wearable market. and no longer does. but that doesn't stop the stocks from risingg higher. fit bit rising more th15%. >>> google ceo has been moving hard into hardware. dedicating time, money and effort into building out his portfolio which includes everything from smartphones to smt speakers. now pachai is pushing intoit wears the purchase of smart watch maker fit bit. that company struggled competing with big rival like apple. the stock is down 90% from the but google clearly thinks its talent and technology are valuable. in a statement dwgoogle's he chief saying by looking closely with the fit bit tm of experts and bringing together the best ai software and hardwaren we help spur innovation in wearables and build products

worst performing sector because energy isn't even a sector energy is only 4% of the s&p and two stocks exxon and chevron are half the weight of the sector. if you look at real sectors, it's the worst performer that's the opportunity and yet it's now a recent out performer, as you also said, melissa, meaning it's on a longer term basis underperformed. i think this is the single best opportunity in the market. >> mike, what's the trade. >> i think the health care sector is interesting for a couple of reasons. one of the things we can look at, valuation, it has been a weak performer possibly because of some political reasons. that would be a reason it would be under pressure from a valuation perspective that means it has not necessarily seen an increase in valuations concurrent with the market both on price to sales, price to earnings however, like the rest of the market, options premiums are exceptionally cheap. i think the way to make a play here is keep it simple i was looking at the january 97 calls just out of the money looking at them earlier today. $1.65 is what you would pay. less than