Three indices. The dow, as i mentioned, above the 22,000 mark, higher by 53 points s p up by a quarter of a percent. Financials, the leading sector of the day no surprise given the steepening were seeing of the yield curve and the nasdaq continues its leadership, higher by nine points where do we stand here how do you interpret the jobs report and mix this all together as we enter the final four months of the year i hope its say when im saying im not putting too much importance on todays job report cut his mike. Cut his micro. Steve, get out of here the hook comes outside. Look, we know theres a seasonal issue in august. Look, it was a tepid report. You didnt have the wage growth that you wanted to see but you didnt have sympathetic awful like a decline in jobs or a decline in wage growth you did see the workweek go down i dont like that. Look, put this all together, it puts winds in the sail that maybe you dont actually get that one federate hike this year steve, you can take it from there, but i think youre looking at maybe not a rate hike this year. Easily the most important jobs report since october of 2012, just before the election you really think so youre nuts no, no. It was okay, one of the fine jobs report. Its not that big a deal what i would like is for investors to be accustomed a jobs report that ranges somewhere between 100 and 200,000, where 200,000 is on the high side, 100 is on the okay side and it wouldnt be crazy to get a 50 in there. Why . Because were only going the population at 80,000 we do 150, were doing darned near double the population growth its a fine jobs report. Some guy said, well, i was looking for 180. Great, i dont care what you were looking for or what your models say what matters is how many people were putting to work relative to the population, and are we bringing in some people off the side so on that note, you six, all right . The broader version of unemployment is at 8. 6 . That is darned healthy theres no argument with that. Weve got a good labor market. This report does not take anything away from that. Lets not give up hope from a policy standpoint, in the sense there are people we can bring in, people working parttime for economic reasons, they cant find fulltime work. People who have dropped out of the workforce who can be dropped back in. But from an economic sense, well take it. That might be gold lox for investors, josh brown. This is enough to keep the fed at bay enough, maybe put them off for a little bit longer, enough growth that weve seen certainly here to keep up with the growth of the working ab ii population and we got that decent gdp report. Its a good report. Collegeeducated unemployment is effectively zero for all intents and purpose s it doesnt get tighter and now were just watching wage growth. But if you didnt like what jim said, youre going to hate what im going to say because there is no economic narrative, as it relates to the stock market this year and as evidenced, let me point out theres no what narrative theres no economic narrative as it pertains to stocks right now. Right now. And this is really important for people to understand as we get into the last four months. You had stop crumpling things you had a tenyear treasury at one spot 86 at the election. You shot up to two spot 59, which is a huge move in a tenyear treasury rate and the s p during that time was up 6 . Cut to the end of march through today, and you effectively had rates plunge you lost almost half of that gain in percentage terms, but in basis point terms, you know, you go down from 2. 6 to 2. 14, with no time or reason whatsoever you would expect ifthe s p wer rallying on strengthening rates and a stronger economy, you would have an adverse reaction instead, we go up another 4 in the s p. The russell does another 3 . It literally doesnt matter. You cannot say, this is an economic story, heres my evidence, rates going up, stocks rising, too. Its about growth, blah blah blah then we have rates nosedive and stocks go up anyway. There really isnt any narrative right now. So, josh, its the friday before labor day can i go home early . Is that what youre saying no. You, stay there. Sit down settle down, liesman key is that rates have been lower. And that makes people who are uncomfortable about potential high valuations much, much, much more comfortable sure. Absolutely you know, and as we see a little bit of a bump today, you see the financials with a little bit of a bump the economic the outlook right now, i think people look at it as strong. One of the weakness parts of that jobs report is government isnt that what we want . Wouldnt we want to see the government pull back the 9,000 we had i would like to see that number double i like the growth in construction, but as people digest all this information, as the market starts to move upward, as josh was just talking about, the markets on this steady move to the upside. As we move up today, its really interesting to see how volatility has just absolutely been sucked out of this market i mean, sucked right back out, were back down towards ten, melissa. On the vernal of potentially at the end of the day, actually closing back which may not be unusual for a threeday weekend. Vol usually gets sucked out before the weekend youre 100 correct there, youre a very smart lady because you do the options action and all the rest of that people start to price forward. If i was standing on the Trading Floor like i did for so many years win started pricing options on saturday, on sunday by the end of the day, im pricing options from monday, for that date, so i can actually see that volatility as its coming out. And thats why were seeinging volatility drop to the extent we have today im going to ignore josh for the moment the idea as i get it, you have these decent Growth Numbers and decent job numbers you have no inflation. Youve backed off belief in the fed. And then the question becomes, with that backdrop, you can say, are their earnings good . The earnings have been good. And we agree there. 100 its inexorable and youve got the dollar weak the dollar is weaker, which is going to help at least for a time look, josh, the amount of the piece of the pie thats taken by corporations can be relative to the size of the pie. If the pie grows and youre doing 3 growth, theres more to extract in profit. Theres profit margin, which is the amount of the pie thats taken. And thats been Pretty Healthy its a reason why, you know, its an argument against, by the way, these tax cuts that are out there, which is more of a competitive argument than it is, but, ultimately, the economic story to me is that the overall economy is growing were getting this addon stimulus from overseas, as well. And thats all helping the bottom line. But wait, wait, wait. Can we talk about twos and tens . Because theres no maga in that spread i agree twos and tens are at a twoyear tight rye now theres no maga, no expansion in that spread. So either the bond market is totally wrong, right or the bond market is to me, i think people make a mistake in looking for a growth story in bonds okay, thats fair to me, i think the only thing a long bond investor cares about, ultimately, other than return of principle, is the inflation rate when the inflation rate is down, it brings the bond yield down. I think thats the only working explanation that happens you expect widening, though, if anyone was looking for any sort of inflation and they would be looking at it if they thought they would accelerate out of this 1. 5 to 2. 5 gdp growth range, at some point in the next four quarters. And maybe it happens, but the market is not head overhe heels with that narrative. Theres another data point today thats kind of important to this. The ism number came in today huge a lot better than expectations would you say yuge . I think i would a little punchy today but the new order subcomponent was above 60 to what you were saying as to the size of the pie, forget the relative slices, but the size of the pie growing, that is absolutely indicative of the size of the pie growing. And by the way, for the last six weeks, theres been some chatter that maub tybe the ism surveys the regional fed surveys are starting to roll over to the downside this really takes the wind out of those sails weve got a good economy and did you see the manufacturing numbers of employment 36,000 would you say, though, you mention ed Profit Margins, which were supposed to revert in 2010. Not yet. Greatly exaggerated shouldnt we be rooting for this boost in wages i know as americans were rooting for that but if the story is Profit Margins remaining healthy, is that really what we think is a next leg higher for stocks because thats going to hit margins faster than anything i think a healthy economy is one that has more balance in terms of capital and labor between the distribution thats a conversation for another time for the nearterm investor, you want them to extract as much profit as possible over time for a good economy, you want a mean revert, which were running under in terms of labor. Steve, always a pleasure. Have a great weekend, everyone steve liesman, ladies and gentlemen. And you still have balled up pieces of paper ready to use dr. Jay, i want to go to you. Given all of this and our conversation, given the s p 500 is about a half a percent from record highs as we enter the final four months of the year, are you more bullish today than you were yesterday or the day before we had two days in a row. Steve had great interviews with the likes of secretary mnuchin and with graary cohns comments today, i think that certainly bodes well into the last four months of the year both of them were pretty bullish about the possibility that we could get mawhat many of us thought we would get in early 2018 ill also point out, mel, the barrons article this past weekend, i know were into this next weekend, already. But the fact that the chinese are back in such a big way in the bond market, thats a big part of why weve seen the yields move down so significantly, i believe because everybody was gearing up for them to basically turn their back, walk away, step back for a while, which they did. Now theyre right back in there. And the yields are down near the lows of the year, right now. Pete, i want to go to you i know you love the financials you have for a very long time. And today, as weve seen a steepening of a yield curve, you have financials leading the market in the session. Tell me why this is not just a yield curve story, because they certainly act as if that is a primary driver to the trade. Well, theres no doubt that theres a direct correlation, mel. And we watch it each and every day. But i think when you go back and look through some of the earnings numbers that theyve been able to produce, there is more to this story than just that but, obviously, everybodys looking at that, that correlation is there and until that breaks or at least gets a little bit weaker, thats going to be the story but i think as you look at these financials, as you look at the banks and as many of them are rotating into different areas, Goldman Sachs is actually looking like they want to do some restructuring of how theyre going to be making their money into the future, as well as the way Morgan Stanley has. So there are folks out there that are moving with the markets, as they are and less tied to those rates but seriously, they are very, very closely tied. Theres no doubt about it. We see that move today the banks are up just a little bit as rates are up just a little bit for more on the markets, lets bring in far miller and washington president , cnbc contributor, michael far good to see you. Nice to be here final four months do you want to be more invested than you have been in the previous months of the year . Im always fully invested, but i think, you know, momentum and the trend are your friends right now. And weve been listening i think this is a great show today, melissa i think they need you on more often. I mean, theres been a lot of content if youve been listening as a viewer, the fundamentals are pretty good. Theres really no inflation. Interest rates are low, employment is pretty good. I mean, this is not a bad picture, and it certainly looks like the trend that were in for stocks is here with us for a while. Good news is embraced. Bad news is dismissed. The psychology of the market remains bullish. I feel like, michael, and forgive me if im wrong, but in the past when ive watched your appearances, that you have actually been a little bit more cautious on the market it sounds like youre pretty bullish going into the final four months. Oh, god, no im always cautious and im always nervous and im always trying to figure out how to eschew risk wherever i can, particularly in clients portfolios you know, for all of the fundamentals that are in tact and that the trend is, indeed, our friend, and that it appears to continue higher, prices are still high were still trading near alltime highs and i think the role of advisers and professional managers is to make sure that we have a chair for our clients when the music stops. This will stop there will be a correction out there. There always is my god, weve been calling about it for years, though its just not happening, so dont bet against this trend michaels notion if youre always cautious, but can be bullish at the same time, is really underskoerd by the performance of the sectors in the past two months. Technology and utilities and thats for the year, too. For the year, too thats a curious sort of outperformance there a curious pair like, Michael Farrar or far speaking to the yin and yang of our investment its hilarious, but true because michaels probably managing money thats 20 and 30year money. And when you look back 20 and 30 years from now, youre not going to see the 9 corrections along the way. They woken even show up on a weekly chart so, its not as ridiculous as it sounds and again, the durability of the portfolio is the question. The question is not, yes or no stocks, its stocks and what else in case stocks give us volatility, which they are supposed to do and josh a very reasonable position. Josh, its positioning clients portfolios so that the clients can endure the downturns, you know, psychologically. So that they dont panic, so that they dont freak. Im just saying that part of it is managing the clients expectations, because theyll make the mistake when the market sends them into panic. And thats what were here to try to prevent michael, great to see you, thanks for your time michael farr lets get to scott cohn, crosby, texas, hes got the latest on r arkamas chemical plant. Scott . Weve been listening to about a 40minute Media Conference call led by rich rowe, the ceo of arkema. And frankly, it raised pretty much more questions than it answered first, lets give you the answers. And these are going to be unsatisfying to a lot of people here first of all, the good news, there have not been any new fires at the plant, other than the one that broke out yesterday, consuming these peroxides that need to be kept cool and no longer can be. That fire burned for about nine hours. They say, though, that its only a matter of time before the rest of the materials burn. It could happen today, it could happen over the weekend. Theyve evaluated the total amount of that substance now its about 500,000 pounds. But heres where things get a bit confusing and where theres frankly a bit of a disconnect. I want to show you the evacuation zone and give you a sense. A mile and a half. So, were standing at the edge of it. Around the horizon there, around the water tower, is where the plant is thats a big area. What theyve said is that the smoke from these fires is basically an irritant. Youre mostly at risk of maybe having a sore throat, maybe a little irritation, no longterm effect effects. Yet, with the cooperation of the authorities, including the department of homeland, they decided to create this large evacuation zone. So why the company has now said what other substances are at the plant. They refuse to release the specific amounts, they say for security reasons, to avoid things like terrorism, but it includes some pretty nasty stuff, like sulfur dioxide they say those materials are safe and their containers have not been degraded at all but why they have an evacuation zone this wide when youre talking about basically a risk of smoke inhalation, its a question that were trying to get an answer to and certainly, people that are here and remember, its not just about 300 residents. There are businesses here, there are people who have livestock, that theyve not been able to attend to since the evacuation so its a difficult situation. Arkema is sending a team of people into crosby to try to deal with the community and to try to accommodate people. But it may be a little bit litttoo little, too late so a lot of questions remain here the evacuation is open ended, basically, until these fires burn themselves out and that could be days. Wow all right, scott, thank you. Scott cohn in crosby, texas. We also want to show you some live footage here. This again, live pictures, port arthur, texas. Weve got on the ground, our producer, judy grolnick and cameraman bringing us these photos it looks like the flooding here in port arthur is the worst that its been since harvey made landfall and port arthur is the area where a lot of the refiners have operations weve heard about a number of closures, the motiva plant take a look at those water levels my gosh, these poor residents. Thanks to jody, our producer and jerry, our cameraman there in port arthur. Taking a look at the refiner trade, all of them are up pretty sharply across the board but its been pretty schizophrenic, that certificate, this all weekend yesterday they were down a handful of percentage points, which is not nothing i think this is something where youve got to look through the shortterm noise of whats going on yeah, there are floods, yeah, theyre offline. Theyre not going to be offline permanently. And theres a lot of experience while it wont be 100 back online, after one month, a lot of it will be back online. What youre seeing is a sector that is overpriced right now not nose bleed, but overpriced so i would be very careful both in terms of making this a longterm investment, because of the price right now, and in terms of the shortterm trade, theres too much that you just dont know to make this a shortterm trade worth pointing out, its not even a sector, its an Industry Group and there are so few of these stocks that the volatility is exacerbated by demand if you were a hedge fund of any decent amount of size or an Asset Management firm and trying to put a position on the refiners, you only have four or five choices and theyre not big market caps. The sheer movement in and out of these stocks is generating more volatility than maybe is actually warranted youll probably see them calm down from here, not get even more active. And theyre not at 52week highs. Theyre well off of that thats true that picture gives you a sense of how high that water level is, to the back you know, if you take a look at the back of the car, the lower end of the license plates those cars arent drivable after this, right . I doubt it. Sitting in it for days on top of it. As we talked about this yesterday, General Motors were going to do autos later. Dont step on mels are you scared of me, josh . I was nervous going to be honest heres whats coming up on the Halftime Report. Autos lululemon shareholders doing the high lunge today the stock is soaring after a big earnings report. Wall streets top analyst covering retail, Morgan Stanleys Kimberly Greenberger joins the traders next plus, the call of the day. The Security Company jpmorgan is telling investors to buy today before the break, our data partners at kensho reporting on what happens after a jobs miss of between 20,000 and 30,000 jobs its happened 12 times since the year 2,000 when it does, the indices are all up when sold a month later top sectors, tech, materls aiand health care. The Halftime Report is back in two minutes. Are you ok . What happened . Dad kinda walked into my swing. Huh . Dont you mean dad kind of ruined our hawaii fund . I thud go to the thothpital. There goes the airfair. I dont think Health Insurance will cover all. Of that. Buth my fathe without that cash from aflac we might have to choose between hawaii or your face. Hawaii what . Haha. Hawaii you might have less coverage than you think. Visit aflac. Com and keep your lifestyle healthy. Aflac fixodent plus adhesives. Theres a denture adhesive that holds strong until evening. Just one application gives you superior hold even at the end of the day fixodent. Strong more like natural teeth. Tmobile announces zero down for all. Now, get the whole family the hottest smartphone brands like Samsung Galaxy for zero down. Plus, get 4 unlimited lines for 40 bucks a month, taxes and fees included. More reasons why tmobile is americas best unlimited network. For years, at t has been promising fast internet to small businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 150 megabits per second across our entire network, to more companies, in more locations, than at t. We do business where you do business. Welcome back to the Halftime Report. Shares of Palo Alto Networks soaring after the Company Reported strong quarterly results. Today, jpmorgan upgrading the cybersecurity stock to an overweight, calling for 25 upside it is our call of the day. Jpmorgan also points out, john, that this is a stock that had been trading at a discount to its cyber peers for a while now. So now it deserves to be at a higher multiple. It certainly got an Immediate Reaction out of folks that scrambled into the stock, mel. But the sectors been a bit of a widow maker. Look at fireye, and palo alto, yeah, its caught fire and theres a lot of bets that it goes higher from here, based on this upgrade you know, pete, its interesting, because your brother points out that its been a widow maker, just because of the highs and lows. This year for 2017, we just showed that graphic. Theyve actually been pretty solid performers, but even in this age where we have all of these cyber breaches, citizen not been a consistent trade. No, it hasnt and i think thats why theres such an opportunity here why the price target was raised from 180 they talk about improving sales, sales strength, the application of cloud being an area of growth so there are all kinds of different catalysts in front now. And it makes a lot of sense. This has lagged overall and it hasnt been consistent to your point. So i think the fact that its a 180 price target says a lot about what jpmorgan really thinks right now Going Forward you know, guys, ive been looking at this sector for a while and it seems to me theres a lot of choices you can take. You can go with Big Companies with relatively low multiples. You can go for a Smaller Company like fireyey that looks like its about to turn profitable. You can go for a hybrid like cisco systems, where security is about 15 of their overall business but i agree with what you guys are saying this has been a give and a take. You take two steps forwards and two steps back in this whole sector and mel, you alluded to this, but this is a sector that im going to call it demographically, the wind should be in its sails. Everything from the elections in russia and north korean hacks. This is not a problem thats going to go away overnight this is a good sector to be in the good news about palo alto, they have an amazing customer list. All of the up and coming Technology Players but thats also the bad news the concentration here is incredible and any kind of pricing problem or dispute or any situation where they get dropped in favor of another provider would absolutely have a massive Material Impact on this companys earnings outlook and this is not a stock that reacts tepid lly this is a stock that will literally decapitate you on bad news so for me its a no. I prefer checkpoint in the space. Its the best chart. Technically, theres a stock that broke out around christmastime. Has not stopped until recently its offering you a chance to get in still at a really pristine uptrend. Lets take a look at another high flower in todays session that would be lululemon. Lets bring in Morgan Stanleys Kimberly Greenberg great to have you with us. Thank you, melissa. Certainly on a lot of metrics, especially margins, et cetera. They have outperformed, but in terms of whether or not this is a sustainable trend, what do you think . Is this really the turnaround for lululemon . The top line really impressed, melissa 7 increase in samestore sales and 13 Revenue Growth this is a nice level of acceleration and it shows that the innovation and product, the technology, the performance theyre putting into the product is absolutely winning fans the topline momentum to us looks like its very sustainable weve seen this acceleration and theyre getting paid for the work theyre putting into the product. How much of the earnings report, how much of the pop in the stock is a statement about lululemon specifically versus a statement about the demand for athleisure in general . Well, we have been seeing very mixed results in athleisure across the space the footwear category in particular has been very challenging. What were finding is there is an increasing divide between the winners and losersin the space those that are innovating, putting a lot of performance, cutting edge technology, fabrics, et cetera, into the product, they are really taking the lions share of the available dollars to spend the path for three or four years, weve had a rising tide in the category that floated all boats. Were no longer seeing that. The consumer is being more discerning and lulu is clearly coming out ahead what will get to take you from an overweight to an equal weight, kimberly after this quarter, not enough, still. The top line was impressive gross margin expanded measure 200 basis points, but were still seeing flat epps numbers on a year over year basis. What we would really like to see is some more Solid Earnings growth from the company. The sg e expense has been extraordinarily evaluated. And thats been the case for the better part of the past two years. Theyre guiding for an inflection in that sg a spend in the Fourth Quarter that could be a very encouraging turning point, we think, for the stock and could sort of help it break out of the trading range its been stuck in but that remains to be seen. In the meantime, were equal weight the stock sits right about at our price target but were very encouraged by what were seeing. Kimberly, thanks for your time appreciate it. Kimberly greenberger of Morgan Stanley. Pete, i go to you. Youre in this got in a couple months or so ive been in and out of it. I just got in most recently a couple of weeks ago with some unusual activity that was out in october. But mel, she hit every one of the points when you look at margin spapgs, very sbref top and bottom line, everything was great. Ecommerce, up 30 . They are really doing exactly as they set out to do and what they laid out there, which is, we are going to be innovating, they have new product lines all the time and were seeing that growth in the menswear when you look at mens pants up 23 . This is a small part hoff what was lululemon, i understand that, but thats where were seeing some of that growth theres plenty of room for expansion there. There are a lot of reasons why, you can almost tell theres a tone there that shes talking about or thinking about, maybe moving that price target higher, based upon everything that was reported this quarter and probably in the next she was very encouraged, she said what was interesting to me, also, was the demand in china we saw. They have got a tmall site and sales are up 175 . So there may be demand beyond the United States for lulu here. And i would tell you this this is one of the other areas we talked about, the expansion possibilities, and the expansion globally thats not something that theyve really concentrated on theyve done exactly the right thing. Theyve concentrated on here theyve concentrated, obviously, in canada. But then that Global Expansion and thats where there is so much more room, melissa, i think, for the upside. And then you talk about innovation they continue to be on the forefront of that. And thats probably been the biggest achilles heel weve seen from nike, from under armour, and from some of the rest of the competitors in the space lulu has been in front of that and has done a great job of execution. Lets get sto soto some unus activity with a double dose. Jon, lets go to you first ggp stocks down on the year. Pays a big fat dividend, of course, as many of these mall reits would. Its around 4 , i believe. They were scrambling in today, mel, as the stock rallied, they were buying the september 22 calls with the stock just over 21 so big, robust volume for these calls. And theyre cheap shot they started buying them at 16 or 17 cents. Bought them up to nearly double that as the stock rallied. And since theyre in their september option time frame, ill probably be in this one for about ten days pete, youre looking at va e valle . I am. And the material space has been on fire for us i sold my gld today from a huge buyer, just a couple of months ago. That has been on fire, moving to the upside im talking about alcoa, letter x. You go across the board, everything vale has hit four times in the last two and a half weeks, very aggressively, including yesterday, where there was some monster buying in vale and they were looking for the october 12th calls paid 25 cents for well over 2 20,000 of those yesterday. 3300 were bought today im in this and will be in this for at least a month but i love the consistency of the buyers we have seen in this specific name. At least a month, thats a longterm trade for you guys great to see you well see you back here in person next week now lets get to sue herrera with the latest News Headlines on harvey. Sue . Thank you very much, melissa. Heres whats happening at this hour, everyone Hurricane Harvey will likely disrupt u. S. Factories the institute for supply management saying the Manufacturing Sector could be punched by production plant damage as well as by interruptions to the gulf of mexicos shipping system that impact would likely take about six months to fade houston announcing it will pick up harvey debris on a sevenday schedule now that floodwaters are receding, residents there are surveying the damage theyre placing furniture and other destroyed items from their homes on the street. Refineries in the houston area are starting to come back online there is word marathon petroleums Galveston Bay refinerying is holding at 45 of its 459,000 barrelperday capacity it restarted today and gasoline prices surging overnight due to supply issues triggered by harvey. Aaa reporting the National Average for unleaded fuel is now 2. 51 per gallon, thats a 7cent jump and the highest price in two years ago going into Labor Day Weekend prices are expected to continue to rise into next week youre up to date. Thats the news update melissa, back over to you. Thank you, sue herrera. Coming up, sticker shot. Gas prices already jumping as refiners remain closed along the texas coast. Just how high will they go and the big business of kids sports how peewee sports and your local baseball game turns into a 15 billion industry we wl kehaliilta tt ve first, much much more on the Halftime Report, so student. Your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. The Energy Conscious whopeople among usle . Say small actions can add up to something. Humongous. A little thing here. A little thing there. Starts to feel like a badge maybe millions can wear. Who are all these caretakers, advocates too . Turns out, its californians its me and its you. Dont stop now, its easy to add to the routine. Join Energy Upgrade california and do your thing. It is the first day of september, so what advice do our advisers have for investors this fall lets bring in greg sarin, and joining us is gene todd. Ill start with you, greg. You think that volatility is going to go up in the last four months of the area so should investors be concerned . Should we be paring back risk with that backdrop i think investors should be concerned with the fact that were at record highs again and entering an historically difficult period the market has some wind in its face weve got the debt ceiling, tax reform, as well as the chart you had up earlier, decelerating earnings all of these should prompt those to rebalance their portfolio so move more into cash, into nonequity securities, basically. We really like the overseas markets right now, melissa i think thats a scenario from a valuation perspective, those markets are much more reasonably priced than our own. The overseas markets did very little from 2012 through two2016 its only been through this year that demographics are in favor youre not worried about the euro being up against the dollar i think the dollar will stay weak for some time gene, ill go out to you. Are you telling investors to sort of buckle up for what could be a tumultuous last four months of the year . Im not sure about the last four months. But i do think september could be cause for a little concern. I mean, typically, september is the most volatile and the most the worst month of the year for the equity markets, and this year, we have a debt ceiling and potential Government Shutdown to worry about. So i wouldnt be surprised if we see volatility spike up in the month of september but im like josh. I think for the rest of the four months of the year, i think the stock market is poised to do a lot better and its going to continue to go up. So i think im going to go to you, greg, on this, which is to say, i agree with everything ive said, okay . And we are due for a correction. The truth of the matter is, weve been due for a correction for a long time. And if youve taken money out of the market, youve missed out on some runs here i hear you on overseas, as a place to maybe hang out, you know, maybe get a little bit of protective, defensive returns. But what do you say to your clients if the next four months of the year are really good in the u. S. , and youve maybe missed out, at least on part of that rally how do you as an adviser adjust to that with your clients . I think it goes back to having an appropriate mix of having both, really. I think the International Markets are going to follow what our markets do and if our gdp numbers remain strong, i think the Ripple Effect is going to continue to those markets a i bro s s a abrl if we get Corporate Tax reform, i think that puts a support under the market that could take us into higher levels and make up for that earnings deceleration well into 2018. If we dont, that could be a reason for some additional volatility and gene, you know, when we talk to financial advisers, its great to get the longer term view but at the same time, it always seems like you guys are saying, stay the course, and i get that totally, the odds are in your favor if youre long the market over a long period of time but septembers historically rough. Weve got a lot of things going on in september from the fed, wind down the Balance Sheet to the ecb meeting that is happening next week that could really roil these markets. So its time to you know what, take money off the table and just wait it out is there anything like that that will make you say, yeah, clients, lets do that well, trying to time the market historically has been a suckers bet so while you might exercise some caution and say, go a little bit more into cash, because of the potential volatility and the uncertainty associated with the month of september, youve got to be right in terms of when you get out, but you also have to be right when you get back in and historically, thats been so difficult to do. So from my perspective, just kind of given the strength of the consumer, corporate earnings have been unbelievable, and are poised to continue to be strong. I think it just makes a lot better sense to stay in the market, be long and if there are some rough patches, well ride it out what do you say, greg i would agree with that sf its important to maintain that perspective. Were very optimistic right new in that biotech space. If there is Corporate Tax reform, youll see billions of dollars from overseas companies, keeping money in overseas accounts, bringing them back here that will be a real catalyst for the m a environment. And the entrepreneurs will think about what that means to their personal tax planning. I want to go pack to something melissa asked. I think its a really important point, which is that we can always come up with this litany of things that either are going to produce volatility or investors should worry about i can go back every year for the last ten years and tell you, like, the six thing that we should have been panicking about at the time. None of them really had a major impact on the market and the ones that did came out of the clear blue. Just as like a very facile example, go back to the fall of 2015 there was an adjustment in the yuan, which is something no wall street strategist was talking about prior and we had a 16 correction in the market and the things we were terrified about turned out not to matter, brexit being a great example, et cetera so thats why its not a suckers bet, because theres not going to be volatility its a suckers bet because what produces the volatility is going to be on no ones lips in advance. And the volatility disappears sometimes, faster than it appeared, and quicker than you can react to it. So even if you get the sale right, if you dont get the buy right, the net effect on your portfolio is minus, even if you might have gotten a better nights sleep one or two nights. Thats really what everyone here is saying. I think were all very sober, very aware of where we are evaluation wise, but were trying to be practical and fiduciary to our comments. I agree with all the comments. Good conversation, guys thank you, gene todd and jon najari najarian lets get to sue herrera with a news alert gizmodo is reporting that nearly 4 million records containing the personal details of Time Warner Cable customers basically were exposed in a Third Party Data breach. Now, as you my recall, time warner was bought by charter in 2016 its now known as spectrum we reached out to charter, the Parent Company and here is their statement to us. A vendor has notified us that certain nonfinancial information of legacy Time Warner Cable customers who use the my twc app becam potentially visible by an external source. Upon discovery, the information was removed immediately by the vendor and were currently investigating the incident with them theres no indication that any charter systems were impacted. Youre up to date, melissa well let you know if any other information comes out. Please do sue, thank you sue herrera. Coming up next, the auto trade. Phil lebeau is breaking down the latest sales numbers, plus our experts will take their positions in the stocks. Nutanix, barnes noble, and starbucks. Aftertime report is back in two minutes. But you cant. At cognizant, were helping todays leading Media Companies create more immersive ways to experience entertainment with new Digital Systems and technologies. Get ready, because were helping leading companies see it and see it throughwith digital. Upeace of mind. S we had a power outage for five days total. We lost a lot of food. We actually filed a claim with usaa to replace that spoiled food. And we really appreciated that. Were the webber family and we are usaa members for life. And the wolf huffed like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. Welcome back to the Halftime Report. Auto stocks on the move after reporting augusts sales number. Our phil lebeau is in chicago with more. Phil melissa, these numbers are turning out to be perhaps a little bit better than expected. Make no mistake, the sales rate for the month of august, well talk about that in a bit, is still going to be in the low 16 million range. But when you look at the individual automakers, a couple of things stand out here look at General Motors, increasing sales by 7. 5 , well above what many people were expecting. Ford also, a little bit better than expected, even though sales were down 2. 1 what about the impact from harvey down in the houston area and really all of eastern texas . They did have an impact. All of those loss sales down there, it did hurt the automakers, though its hard for them to quantify exactly how much and initially, what theyre saying is, it may not have been as bad as we initially feared the sales rate, and well get the official number here in the next couple of hours, expected to be in the range of 16. 2 to 16. 3 million vehicles. Remember, were on that downward trajectory, very slight downward trajectory from last year. Were not going to hit anywhere close to that 17. 5 million for annual auto sales. And finally, i want to show you shares of General Motors, which is having another nice run higher today, up almost 3 guys, 37. 59, were getting close to the alltime high, under mary barra, which is just over 38, Something Like that, when she first started back in january of 2014 we showed you that sixmonth chart. Its been a nice move for General Motors over really the last couple of months. And even just the past week or so, phil, as people are thinking about the harvey impact, weve seen some pretty good gains, not just for ge, but also for ford. Each up about 5 and in the used car sector, auto nation is up 11, 12 , 8 group one is up 1 in terms of the impact sales, are you getting the sense that maybe investors are overplaying this or overpricing this into the stock . This or overpricing this into stock . Perhaps a little bit. In terms of replacement business, i just talked with folks with auto nation, theyre seeing brisk business at the stores in houston area that were initially closed that reopened all their stores reopened. But in some areas theyre seeing tow trucks that are lined up these are vehicles that either people see are completely trash or salvageable in some fashion if they are completely trashed, lets begin the process of getting a rental or beginning the process of saying i want to buy a new vehicle. This is just the beginning, melissa. Youll notice the rebound two to three months down the road, once the Insurance Companies cut checks right now, theyre focused on homes and personal lives in terms of getting back to normal. Then theyll start focusing on buying that replacement vehicle. We were talking to adam jonas from Morgan Stanley on fast money the other day, he says this is mother natures cash replunker, transfer of wealth from Insurance Company right to consumers to buy other cars. Thats what it is, transfer of wealth from insurers to oems. Phyllis sti phil is still on the line. Did the august sales take into account the fact that the last week in texas there were basically no sales thats not my question to you, phil heres my question to you. You know, you mentioned that the automakers have had a good run, melissa asked if it is priced in too much already i would submit to you that gm at six times earning, it is not, but heres the real question you look atrop fee at chrysler,p and we know why. Theres rumor that theyre going to maybe get purchased by great wall of china. I like asymmetric risks, particularly to the up side in gm, but looking at fee at chrysler, up 6 , blowing Everything Else away the asymmetric risk is to the down side if great wall doesnt come through with a purchase let me throw another option out there. Forget about great wall. You know that sergio marquise own is looking to make a deal. He did want to buy gm. What if he buys moss rat ee. He is looking to make a deal at some point. That move higher is in relationship to that youre right if great wall comes back and says we couldnt put something together, sure you see a bit of a pull back there. But we all know thats the reason why Fiat Chrysler is moving higher. With regard to General Motors, i think theres greater appreciation in terms of how low the valuation is relative to the performance that mary bara and her team are delivering. Not saying that theyre going off to the races, but they are moving higher as people look and say these guys are consistently performing here. Phil, thank you phil lebeau in chicago josh, quickly, auto trade are you in this . I dont want to own oems. Why gm looks like it wants to break out here, but i dont get excited about the auto this stage in the cycle i want to think of the next ten years, i want to be in lithium, what all of the batteries are made by. I think theres a huge market share taken by electric vehicles i dont care who wins, mercedesbenz, tesla, i am going to own the company that sells them what they need to make the batteries. Lets look at trader blitz. Higher after beating forecast . Pretty good numbers, melissa. The stock is about a year old since its ipo, down from its initial pop. I wonder if this is a take out candidate. It has decent valuation, growing, top line. Theres a lot to like, particularly if somebody else in cloud space says i take this off the market. Ambarella falling it is the worst stock i dont understand technically why are you in this, fundamentally why are you in this i dont understand drones, autonomous driving. Not really though look, theres a lot of hot markets that they sell into, but it is not the best way to get exposure to any of them individually i just dont understand that barnes noble is exploring going private. That report out yesterday. Saying working with google enheim no dice. A tough stock to play this is not a growth industry. They probably are the survivor in a rapidly shrinking industry. It has been shrinking for years. What possibly happens here is some private equity firm says were buying it out, load it with debt, strip out cash flow, recycle it back in an ipo at some point in time thats not a game i want to play in theres no secular growth. I think i stay away from this. It is the jcpenney of books really . I look at the clock four minutes left, im going. Starbucks releasing Pumpkin Spice latte. This is a day josh brown looks forward to all year long sure. So what you want to do, tip for drinking it, take the lid off, let it cool, add a little skim milk to the top, throw the whole thing in the garbage because it is disgusting. Thats it thats all i got. If you dont like the pumpkin latte. Not a fan. Look at how many pumpkin options there are. M and ms, cheerios vodka. All right. Youre open to pumpkin not open to pumpkin like that peach ciroc. First, a check of the s p 500, no surprise financials lead up by ninetenths of a percent Halftime Report back in two. U c . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to wealth management. I love you, droolius caesar, but sometimes you stink. Febreze car vent clip cleans away odors for up to 30 days. Because the things you love can stink. Im val. The orange money retirement squirrel from voya. I represent the money you save for the future. Whos he . Hes the green money you can spend now. Whats up . Gonna pay some bills, maybe buy a new tennis racket. Hes got a killer backhand. When its time to get organized for retirement, its time to get voya. We told you about this cat stuck in a tree, after a struggle, success for the rescuers, and more importantly, success for that cat i love a feel good story. Day before a long weekend you want to end on a high note, right . We should do an hour of cat rescue i hope theres an hour of cat rescues. That means all of the felines are saved. Dont knock it, josh brown final trades theres a thing called pumpkin flavored pumpkins. If thats really what you have to do, get a pumpkin back to you, jim can you try on this friday to give me a trade . In the last 59 minutes, enough already go how about pfizer. We talked about this the other day. Old line pharmaceutical companies are doing a little break out. Pfizer has a nice up trend i think you ride it. That does it for us good luck to the cats out there. Happy labor day i am michelle car use oh cabrera. Heres whats on the power lunch menu jobs growth missing the mark this time around the Unemployment Rate rising, why are stocks moving higher President Trump set to speak this hour on Hurricane HarveyRecovery Efforts and Disaster Relief we will carry it live. And sticker shock many face at the pump this weekend. Back to school for a lot of kids next week millions of parents gearing up to shuttle kids from soccer to football, basketball the list goes on and on. So do the costs. Kids sports explosion, how it is no