anchor: we were just talking to james patterson about raymond james. the biggest quick boosts for the s&p 500, that is part of a big rally out of the christmas eve autumn. bullish.ndless list -- when we put this at the long-term prospect of an ipo, we see the shares of netflix at the and working its way down this chart may suggest that at some point in 2019, netflix may have a difficult go at it. anchor: a big slug of optimism today and it came from gm. today, is surprised analysts, saying it expects to earn one dollar more per share than analysts had estimated. , and has fadedop today andust above 7% perhaps reflecting a number of endless who say when you look at , what gms saying predicts may not come. they say -- they are saying demand will hold up and cost cuts will help to improve earnings. today's stocks adding about $4 billion to its market cap, still trading at seven dollars below. >> great perspective on the equities. about four in the sector today. we have been looking at retailing. we have been looking at autos -- >> what a difference a day

it is really changed the entire productivity dynamic. >> netflix, that raymond james target to 450.0 both significantly higher. >> another big gainer today, gm. it was up 7% ceo mary barra saying he's optd mystic about this year. >> it was not only a focus on really, you know, capitalizing on the new truck that is we have out there, the light duty and the focus on cost reduction so it was an across the board every element of the company we have a very strong product portfolio in the u.s. market and coming in china. so when we look at that, that is going to help fuel our 2019 and supports our guidance. >> mike, sara asked phil earlier whether the bad news passed for the autos. i guess the u.s. numbers are still kind of pretty narrow peak and not like that's a long-term bull market again. >> hovering below a peak the market is reluctant to pay up for even good news on the earnings front in terms of guidance for gm. stock not back to the beginning of december with the nice move today so i still think it's a sector where people have late cycle concerns that are going to be with us for a

. >>> and netflix was upgraded to strong buy from outperform at raymond james with the analyst citing a solid content slate of programs which could help revenue and earnings per share even higher. price target $450 and shares rose to $337.59. the stock has gained 37% just since christmas eve. >>> still ahead, therls biggest banks report their earnings next week, and they carry a lot of weight in the market. but what are the odds that they'll have a blowout quarter? >>> here they come, bank earnings will be in focus next week.il citi be the first to report its resultsnd on . then skrchltjp moefr pchl and wn tuesday.tz david ds president, chief investment strategist at pointview wealth finagement. t of all, big picture. interest rates have remained low, the housing market i not setting anybody on fire. trading revenue might be a problem, investment banking. what are your expectations overl? >> overall we're actually -- we have mediocre fundamentalss.or the ba the problem is the economy outlook has deteriorated just a little bit as people are focused on concerns like trade, like governme

raymond james upgraded to strong buy, raising price target to $450, saying investments pave the way tofitability he is talking about "bird box" showing they can succeed in film, should aid subscriber growth and yield price increases. morgan stanley upgrading its rating they lowered price target from 475 to $430 as they factor in lower long term margins, saying they believe netflix can still thrive in the streaming market wall street analysts are largely positive on netflix, 28 buys or overweights, 12 holds, and one sell the big unknown is how consumers will respond when rival services to netflix launch from both disney and warner media later this year. it's worth noting that hulu added 8 million subscribers last year it's more than the 5.5 million netflix is expected to add in the u.s. we'll have to see how saturated the market is. how many services people are willing to pay for and whether consumers will stay loyal to netflix. we'll learn more on thursday back over to you >> it will be an earnings report that a lot of people will be watching closely >>> it's all about the health of th

analysts at raymond james are reportedly advising clients to invest on netflix.he new price target for the stock is $450 a share, for netflix, gaining 4% when the opening bell rang this morning, at $336 a share, and that would be quite the premium. trading has been underway for 2 hours now, and markets have been steadily heading lower, and there's a live look at the dow jones, down half a percent, 130 points on the downside, and the s&p 500 down half a percent, and the nasdaq also down half a percent. 69-49 there, and a lot of concern over the government shutdown and the ripple effect on the economy. the shareholders of google suing the board of directors because of a sexual harassment scandal. the suit claims the firm cost billions of dollars by covering up the sexual abuse by senior executives and paying them millions as they were quietly let go. in response, google contends it has no tolerance for sexual misconduct, and it fired two dozen employees over the last 2 years for violating company policy. >>> general motors is looking to electrify the cadillac brand

taylor: the rest of the sector, as you know, semiconductors are a downgrade from raymond james from somemakers, and really sort of all of the defined kind of slowdowns. vonnie: all right, taylor riggs, thank you for that. the second-best performer of the s&p, up 8.9%. we are seeing a nice risk rally today. the dow jones industrial average 2.9%..25%, the s&p up the euro is back up to 2.64%. ♪ ♪ place, the xfinity xfi gateway. and it's strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. david: from bloomberg world headquarters in new york, i am david westin. welcome to "balance of power." on the brief today, kevin cirilli is in the white house on the government shutdown. michael mckee is in atlanta on chairman powell and the jobs numbers. kevin, we will start with you. what is going on behind you at the white house as far as we know? kevin: top lawmakers are meeting as theesident trump partial shutdown continues.

this is after raymond james downgrades that company to an under perform. we made it our call of the day they say great company, not so much a great stock now what do we think in. >> well, the stock is up 25% year to date he had a market perform on the stocks there's that it's trading at 95 times earnings so there's that it's had a nice run. if he's right in terms of organic sales having peaked, he's right i own paypal and i'm uncomfortable owning that. i can understand it. i've not been involved but i get the call if he's right on the top. >> 24% in a month for square you can take them as individuals or look at them in total master card and visa, axp are getting positive >> master card is the best name in the group i own it so i'm slightly biassed. it's got defensive characteristics. it's out performing massively whether you're talking about the bare market between '07 and '09 or talking about recent episodes of volatility where the stock barely budged. this is a defensive name that happens to have massive growth opportunities that are secular does not req

and netflix is one of the top performers raymond james put a $40 price target now to sue herrera forews update >> hello here's what's happening at this hour a bus crash in western cuba killing at least seven people and injohannesburg 33 others including foreign tourists local media reporting the accident occurred when the driver lost control of the vehicle. >>> turkey is deploying more troops and armor to an area on its southern border with syria held by u.s. supported kurdish militia. one turkish news agency reporting troops heading towards mambese. >>> soccer star cristiano ronaldo is said to be very calm despite being asked to provide dna in rape accusations from an american woman >>> back here at home startling new numbers from the cdc show just how widespread the flu is between 6 and 7 million have had the flu with 64 and 89,000 hospitalized the flu is widespread in 30 states you're up to date. that's the news update at this hour back to you. >> tyler mathison is here and we're counting the days of the shutdown as it becomes more serious. >> today is the first day that paychecks

ubs put a buy and raymond james said it's a strong buy. it has become a rocket ship.stors want back into the names. is this a mistake though? you think everyone is piling into netflix? >> i think so. i think it is generally missing the point. i always get nervous when there is too many analysts on one side of the equation. i feel like netflix is quickly approaching that. just to recap there, they have obviously had an incredible run with great content. content is differentiator, it is defensible, netflix has the opportunity to have 150 million global subs today. they think the addressable market is 750 million and still growing really well. i can understand people at least today jumping behind this. but the question should not be, is netflix going to grow? it will grow nicely. the question will there be incremental growth positive or negative relative to expectations? i suspect the expectations are going to start to soften. some of that optimism soften inn the middle of this year. in particular as amazon, we start to see results of their increased spend. charles: righ

joining us now is aaron kessler, senior internet analyst at raymo raymond james.d investors be looking for value in tech right now? >> well, look, the group on average is back to the midpoint of where it's been trading over the last five years. it's trading around 15 times to ebitda we think that's a pretty attractive entry point we put out a 2019 outlook piece last week where we identified our top five picks, and it starts with amazon first and foremost, then google, then facebook, and then expedia so clearly we think there is clear value, particularly among some of the larger cap names at this point >>> aaron, i'll put the same question to you. >> yeah, we think the value is in the large cap side right now as well. we still like alibaba here despite some of the china tariff issues we think if that gets resolved, trades around ten times our core commerce business there, and even though you've seen growth slow a bit, the december data which was released yesterday, china ecommerce is still growing about 25% in december. it did slow 21% for the december quarter, but

sq we have major downgrade from raymond james today. >> wasn't that brutal?cow made me think, all right down seven you know, its a $28 billion company. i actually like it i like paypal more you know what? jack dorsey is doing a great thing with both twitter and square so jack, because i know you watch, or at least your dad does, and your ma, happy birthday you'll do one block when you come on twitter. the next block is going to be square and then we had it all right. when you have low expectations and don't have a huge blowup, then you have tinder for a fire. i think we could have a decent week call me the apple polisher on "mad money" tonight, is there buy or more pain ahead i'll give you my take. plus, nvidia, if it's an earnings report is any indication, they can turn on a dime for the tech stocks are there names worth owning go off the charts to see what they say first, nue produced solid results. does it have the strength to continue to deliver sturdy returns? i'm talking with the ceo so stick cramer. >> don't miss a second of "mad money. followjim crame

raymond james and ubs raising ratings with a price target as high as $450.ix is up 40% after hitting an 11-month low on christmas eve. >>> up next, ces 2019 coming to a close but google's self-driving car project is opening a path to the future as it becomes a stand-alone company. i will tell you about my talk onstage at ces with the waymo ceo when "countdown" comes right back. as someone in witness protection, i can't tell you anything about myself. but believe me... i'm not your average consumer. that's why i switched to liberty mutual. they customized my car insurance, so i only pay for what i need. and as a man... uh... or a woman... with very specific needs that i can't tell you about- say cheese. mr. landry? oh no. hi mr. landry! liberty mutual customizes your car insurance so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ moving? that's harder now because of psoriatic arthritis. but you're still moved by moments like this. don't let psoriatic arthritis take them away. taltz reduces joint pain and stiffness and helps stop the p

a big upgrade from raymond james today. $450 a share from $337 today and up 23% this year and earnings out next week. the analyst behind that upgrade, justin patterson why are you so bullish on netflix, george w. bujustin >> we were bullish before, just got more bullish the function there is really a couple of factors. one, we see ongoing subscriber momentumful that's ful momentum both the u.s. momentum and more traction internationally netflix starting to succeed in b films. take "bird box." 45 million unique, a movie that probably wouldn't have gotten that much distribution at the box office and then profit margins. if you look at netflix, the knock has been profitability is low, free cash flow burn has been high. given enough guide posts with initial commentary towards 2019, that you can start seeing netflix really round that curve on investments and generate material, free cash flow and material earnings over the last five years. >> did you see "bird box"? >> i did >> what did you think? >> you don't want to know my media habits >> when i saw it, it was, let's say, disturbing and q

chris queso is an analyst with raymond james and has a hold rating on the stock.ns us at the desk as well we think we know what they're going to say about the last quarter, but we care about the current quarter. what do you think they'll say? >> absolutely. i think people recognize there's some risk as we go into the march quarter just because of the presence of vortd. i think there's probably more of a focus on gross margins now we know some discounting is going on so, you know, that has to be a counter for street on gross margins for march. there are other things as well like what's happening with services we're estimating services to desl rate as we go through the year, and that's been an element. in addition, you know, just as you go into the next cycle, we're a little cautious on the next cycle as well we think all of those things, the expectations for all those things need to be reset. >> john, for years, apple has been notorious for underpromising and overdelivering but this time it feels different, doesn't it? >> it's very different this was a big miss, th

joining me, shah ghailani, raymond james chief investment strategist, jeff saut, max funds.com founder, fbn contributor, jonas max ferris. let me start with you, jeff. i'm impressed with the market post-christmas. biggest one-day gain ever and followed by one of the biggest reversals in history. 600 points in the last hour of trading. then on monday we saw the market spurt, the dow spurted 200 points in just about the last four minutes of trading. there is a certain resolve there. i'm not sure what it means but what is your assessment? >> usually when you get markets that do that kind of dramatic action you're usually either around the top or a bottom. after the drop that we've had since the october 2nd sell signal i have to think we're in process of forming a bottom here. charles: shah, let me ask you, we drilled down, on monday the best performer by far was general -- i mean goldman sachs. goldman again looking very good. on the other end of the spectrum, ge and goldman both major disappointments of 2018. is this part of the bottom-fishing process we hear all the time? >> i think we'

. >> right i was talking to an analyst today from raymond james and he was saying a big bulk of services is apple care so what happens when unit sales go down, which we don't know because they won't release unit sales. you don't need apple care on your phone. >> and the whole services growth is based on this unit growth idea so i think they really, really botched that last quarter when they just kind of shocked everybody by saying we're not going to break things down so they have to come out and give a little bit more information on what the company is going to look like. otherwise i think they have a real credibility problem on wall street. >> so i hear what you're saying, but everything you just said to me means that the market needed to make an adjustment. guess what, it made an adjustment they told you stuff you didn't want to hear, they told you they're doing things a little differently. they didn't change their business overnight, just the market's perception changed overnight. i think the buy side of the street believes this stock is cheap. >> for more on apple's earnings, let's b

in the quarter paypal is valued higher than visa so expectations are much higher john davis at raymond james says paypal tpv metric is all that matters and the key will be an update on venmo. they are attracting new partners he also said the total number of venmo users that have made a monetizable is 29% venmo payment volumes surpassed ebay volumes so ebay is becoming a smaller and smaller part of the paypal picture venmo and other merchants are picking up the slack, but perhaps not fast enough. >> all right, deidre, thank you. you've liked paypal, dan. >> yeah. we talked about this last week this is one of the first stocks in the s&p 100 to make a new all-time high since the sell-off from the highs a few months ago. to me expectations are already high the stock is up 10%. this is a stock trading at 32 times. it's got twice the growth in some key areas, something like visa has that's why investors will pay for it it's just consolidating so i think that's one of those secular stories that you want to be in. she just mentioned something the pay with venmo button inside these websites, that's a

finally, raymond james upgrading the netflix to four to $50 price target. -- $450 price target.next hour. scarlet: looking for to that conversation. now to a bloomberg school. considering an ipo for its asian business. bloomberg's reporter joins us now. great to see you. this potential deal, is this something where ab inbev is being pushed into it, is it offense or defense of? >> a little bit of both. this is one of the heavily indebted companies out there. this allows them to put that back a little bit. ds,y are it cut their dividen and they got some cost savings, but this allows them to add more to that. it does not make a huge debt but the other think is it might to free them up for deals in asia. what they are looking as trying to gain market share and do -- it is a big consumer market for beer. thehis gives them opportunity to grow their market share. caroline: they of taken on too much in terms of acquisitions but it might be ringing them up to do even more. lizzie: absolutely, it is a little bit of both and does not make a dent in their debt pile. move over tont to slack

we have to see >> let's talk about what to do next jeff from raymond james.ff, the numbers were really strong today on the job market for the year, for the month. wages up 3.2%. jay powell signalled flexibility and flexibility on the balance sheet. this is a sort of yesterday was a double whammy of bad news. today was a double dose of good news >> the trade gate, if you will allow me to use that term, i think that is maybe a solution to the china trade gate situation. you also had hedge funds selling, liquidations. you had etf liquidation. you had mutual fund redemptions. those i talked to, they were gone for about the entire month of december. the sellers were selling into a vacuum that vacuum got filled up today as a matter of fact. usually when you get big movers like this on the upside and downside you're either near a top or near a bottom after a near 20% decline i think we are at a bottom obviously the market had been tensed up in advance of the jobs number and powells public remarks. here is is some of what he said. >> we will be prepared to adjust pol

joining us now and the impact on the market we have chris here, an analyst from raymond james. we have executive vice president and founder and chairman and portfolio manager. so chris, you have been cautious on apple >> yes >> what do you do now that some of the fears have been realized? are you more cautious? >> we are still not buying on it we are concerned about a couple of shoes to develop still. you worry about inventory that needs to get played out. we don't know if extent of that. we are concerned about deceleration because some part is still tied to unit sales. that will have an impact our biggest concern is actually going into, you know, the iphone sie cycle later in 2019. we are not picking up any significant upgrades in next year's phone if it isn't selling particularly well we have to count on a down year next year once all of those things are settled. >> you guys have a good read into the individual investor, mom and pop, what are they doing with apple >> well, first of all thank you for having me. it really started last night as soon as the stock was halted we sa

raymond james, total against orthodoxy, doing something that the bulls won't like goes to a sell in square? because they think it peaked in the third quarter. yes, yes, yes. yes, they think it peaked. talking about deceleration, talking about -- say it ain't so great company, not a great stock. downgraded underperform. this is going to hurt the bulls in square today. margin assumptions look aggressive people don't want high multiple stocks they want caterpillar today. >> today. >> after it was down 9% yesterday. >> intrigued by that they want new core with a massive upsize surprise. steel company, because our tariffs have made it so that new core has to play on a level playing field and the chinese are oversubsidized and they're going to huawei it >> we'll talk more about china, new core, keep an eye on verizon and pfizer, 3m and cat and revisiting nvidia. i'm just getting started we're back after this. (baby crying) ♪ ♪hold on, i'm comin' ♪hold on, i'm comin' ♪hold on don't you worry,♪ ♪i'm comin' ♪here we come, hold on♪ ♪we're about to save you i'm comin', yeah♪ ♪hold on don't you worry,

raymond james chief strategist jeff saut on that.re already convinced we hit a bottom and we're bouncing back. is it based on the trade prospect or based on what whichever overdid it. >> i think we overdid it in mid-september. you had the three most intense selling days in a long time. people were selling into a vacuum. you had hedge fund liquidation, mutual fund liquidation, etf liquidation and tax-loss selling. there were mo buyers around. most of the people i talked to the portfolio managers were on holiday in the hamptons. they sold into a vacuum. looks like we made a bottom 23,051. technical analysts had 90% upside day, 90% of the total volume traded is on upside and 90% of the total points traded on the upside. that usually represents a bottom, a major bottom. so i will play it that way until proven wrong. neil: you know, jeff, during the holiday, was it significant to you that the dow and s&p which were perilously close to bear market territory, following likes of the nasdaq and russell 2000, and some of these other areas into

take a look at today's earnings from wells let's bring in david long from raymond james.th beneath the bottom line. what do you think? >> right so the earnings per share was a beat however, if you remove the tax benefits that they received, we'd be looking at 1.13 versus the $1.21 reported revenue was a miss that's become a common theme for wells fargo and the driver of lower earnings per share estimates for the last couple of years. noninterest income or fee-based revenue was the major concern here revenue was below expectations for service charges on deposits, card fees, trusted investment management fees. some of that is driven by the background, but some of the stuff is specific to wells fargo. >> right i was just going to ask. how much of this has to do with fallout from the fake account scandal and how they have struggled to clean up reputation and have an impact among consumers? and how much of it is other problems >> yeah, absolutely. their fundamentals since the account opening has been inferior and that's caused them to produce below peer revenue growth, below p

founding partner in cio of crescent wealth advisors, and jeff, chief investment strategyist at raymond jamesnest with me, because last time you were on, you were very bullish. when we saw those lows in the s&p and we retested what was already pretty scary, did you ever -- was your faith in your outlook ever shaken? did you wake up at 3:00 a.m. did the demons ever come, jeff were you scared? i'm talking fear, again, but we were down in the 23s on the s&p. did you ever think, holy crap, this is worse than i thought it was going to be? were you shae shaken at all >> no, not at all. in fact, we called the top on this show, actually, on october 4th. the decline went lower than we thought it would go. we were wrong when -- we were wrong when we thought the october 29th vote of 2600 was the low. admitted it in writing when you broke the low that 2603 october 29th low the three days of intense selling, you saw in mid december were about as bad as i have seen in 48 years in this business that wash-out low was followed by two 90% up side days where 90% of the total volume came on the up side and 90% o

joining us for that is kevin geddes president of fixed income markets at raymond james joining us onrning, chris hyzee. chief investment officer at merrill lynch and u.s. trust we are up almost 10% from the lows that were set two weeks ago on christmas eve, just over two weeks ago. kind of crazy to watch that kind of a move. do you feel confident saying that the bottom is in? >> well, it's hard to have a lot of confidence when you have wharkts doing wh markets doing what they're doing. the confidence is this bottoms are built. everybody will tell you something different, but over time if the base of earnings is above zero for 2019, then the bottom so-called numbers are in we'll get a lot more of that information coming out in the next few weeks you're going to hear a lot of things thrown into the kitchen sink so the numbers are low enough so you can actually create a beat for the rest of the year markets got so low as it relates to the multiple, down close to 14 times earnings. we hadn't seen that number in a long, long time. sentiment was so poor, almost every sentiment measure you

markets, we'll turn to our guest, market strategist at bank of america merrill lynch, jeff stoud at raymond james which of us is the socialist? >> i was talking dictators. >> no. i was saying that there's a fine line between socialism and being a dictator. >> one doesn't lead to the other? >> not necessarily think so. >> just a coincidence that it happens. okay pretty high koerllation. jeff, best start to the year which is probably not a big surprise you probably predicted best start to the year for equities andaround the globe going pretty well. we're off of that corrective mode that we saw at the end of last year? >> yeah. you had three of the biggest selling climaxes i've seen in quite a while. ended on december 24th and you've been straight up -- we thought the target area would be 2,600 to 2620 with the resolution of at least in the short-term of the government shutdown you overshot that but by our measurement of internal energy, the markets internal energy is used up we don't think it can spike much higher from here. >> what is that, by the way? internal energy, what is that? >> proprietary

i see raymond james, ubs are announcing upgrades on the stock today and it is up 4%, $13 higher.-time tech winner of this year? >> i think it is at a minimum within the top three biggest tech winners and biggest stock winners coming this year and especially into 2020. and i will cite a reason why, that i don't believe is actually talked about a whole lot. one of those reasons is the fact that over the next two to three years consumers are getting more time on their hands to watch compelling video content. netflix is clearly skyrocketing on this and the reason why humans in this country are going to be getting more time to watch services like netflix thus, increasing their revenue is because as we get into the, this transition into self-driving vehicles, driver assist vehicles, on the road all over the place today, the bottom line is that the experience that let's say a new york hears in commuting on the subway where you can watch your ipad for the entire commute, that will slowly begin to apply to every citizen in america with self-driving car technology over the next three years

>> for more on intel's earnings and its outlook for weaker guidance, we turn to chris caso at raymond jameshad performed relatively well going into this. it's been a defensive choice so where does it leave us? >> we've seen weakness in the semiconductors in general right now. you know, before this texas instruments yesterday for the second quarter in a row lowered their numbers, talked about broad weakness we had downgraded the group early on in september. there was deceleration in cloud. cloud's been the best part of intel cease story. it was up the first three quarters of the year that's probably the most surprising thing there was a which indicated that business, the total data center business would be down about double normalcies and suggests maybe 15%. that drives down year on year. it's a significant deceleration. >> again, is that an intel issue? because there has been talk about a lull in investment >> certainly what happens, you know, this is just cyclicality in the group and what happened is the first half of the year, a lot of these cloud service providers, you know, bought a who

god, is me margaret to james baldwin and i'm like, whoa, now you're talking to me and really sent me on that journey to find everything from audrey lord to shangi to -- even raymond carver, thinking of someone who is not black in a very safe space, ancestors now, going back to black writer but just the writers, toni morrison, all the people who were -- claude, donald goings, the people in the '70s who were telling those kind of stories that were the truth if hate when people say they were gritty or heartbreaking or tragic. they were the truth. our truths, and for me it gave me that kind of -- the tools to the those truths. unanimous any what's your understanding of the connection between bald rein and lorraine. i was think -- how all these friend friendshipped with people through words only, like on facebook. >> so funny because people, when the digital age entered there was a panic that text will be done with and ann will only pay attention to video. it's not true. it's an interesting transition. but they had -- so, there's this scene that i play over and over and it's in the book of their first encounter. thank you so much for your blurb. >> i love that book so