It sounds, though, that youre more interested than you were even a couple of weeks or months ago when you said im considering or i wish i could think about it but i really cant. No, i wouldnt say im more interested i just think the circumstances continue to change and as things evolve, it becomes more interesting as a citizen, i become concerned. Look, where im at in my life, if i have a chance to influence policy or if i have a chance to do something good for the country, i want to try to do it. That doesnt necessarily mean i have to run for president. Theres a lot of ways to have an impact and the more in tune i many a, the more connected, the more educated i am about a variety of topics, the easier it is for me to decide. And if you ran, you would run as a democrat . No, absolutely not. As an independent potentially and id say or as a republican . Republican before democrat, most likely independent because i think a lot i think theres an incremental value for setting up an independent candidacy. Now, i understand the difficulties of that and the challenges of that from an infrastructure perspective, but the positives of doing it as a republican means you get to go head on with trump right in the primaries. Theres nothing id have more fun doing. The benefit of being an independent is you go right to the Golden Ticket time, right. And if i get enough support in the polls, then i get to participate with the debates, which is right up there with something. I think you really are considering and thinking about it. Im considering, obviously considering. But again, what caring, loving parent would put their three Young Children through the disaster i mean my now 14yearold girl, its hard enough raising a 14yearold girl its really hard raising a 14yearold girl and, you know, the thought of what shed have to face over the next couple of years on social media and from her friends and particularly in a red state, thats not, you know, a comforting thought i want to talk to you about social media in just a moment but i want to ask you about where we may or may not be in 2020 because theres an argument that ive heard many a times among most people in the Business Community that say if the stock market continues the way it does, if the economy, at least the headline numbers that we see continue the way they do and north korea doesnt do anything, that its actually a slam dunk for donald trump to win again. Everybody is a genius in a bull market, right and so for a typical president , i think youd be absolutely correct. But with a president who has absolutely no common sense, cant get out of his own way and the only real ballots hes winning is for the least popular president in modern history, the rules might be a little bit different. Do you look at todays economy and think its good . Do you think were in a bubble i think theres multiple economies in this country. If you live in a city, if you love in an area with a dense population, its not so bad. It may be a little bit more expensive to live and theres challenges associated with that. But if you live in smaller towns or you live in a smaller city, you have a completely different set of challenges. Youre not seeing 4. 1 unemployment, youre seeing your friends die of overdoses youre not looking at new Technology Creating new jobs in your community you know, youre looking at the fire and Police Department growing because of all those overdoses. And so its just there are two different worlds and you have to be able to deal with both. What does mark cuban, the investor, think of whats going on right now ride it hard. I keep a little bit as a hedge, i call it my trump hedge, because you just never know. You know, now 280 characters can change the market in a heartbeat. So ive got a hedge on but other than that, i just let it ride. And thats paubecause you th the economy actually is strong. I think theres some great companies. When you look at the stock market, the world is lifting all tides in a lot of respects youve got the fact that there are theres a Scarcity Effect over the last 20 years weve gone from 8,000 plus Public Companies to 3500. And if everybody is putting their money into indexes and mutual funds now, by definition, things have got to go up so as long as that continues, that scarcity value will keep on pushing things up, regardless of the economy. Were going to have jack dorsey here, somebody here from facebook, weve seen the stock valuations twitter has struggled but square has done quite well recently are we in a bubble in the tech world . No. Look, ive lived through bubbles and enjoyed them immensely you were a beneficiary of one. A significant one but i dont think were in a bubble because of that scarcity value. You know, its almost like bitcoin. Stocks and bitcoin have a lot in common that for stocks that dont pay a dividend, they have almost become collectibles this fund, this index has to own them if enough money comes in, they have nowhere else to put the money so the stocks are going to go up. Let me ask you about tech if you were president cuban and theres a Big Conversation right now about regulating technology. Right. The big guys in the valley. What would president cuban do . Im not a fan of heavy regulation i think, you know, in terms of the whole russian ad thing with facebook, the ftc covers that. If the ftc does their job, theres already rules and things in place for native advertising and how thats dealt with, then we dont need to create more legislation there. I think there are challenges that the growth of these companies create, but i dont ive seen Amazing Tech Companies that were dominating the world no longer dominate them. If ibm microsoft was great an then it wasnt google is still largely depend on search. That could change in a heartbeat. Well have Randall Stevenson on in just a little bit. Would you allow the at t time warner deal to happen . Yes now, let me disclose theyre based in dallas and so im on one of their tech committees, but yes. Ill give you an example of why. I got a pitch from facebook the other day for a do or dare tv show is what theyre calling it. And part of their pitch to me to do the show i, a, theyll donate 25,000 to the charity of my choice to go out and make an idiot of myself on the show. But the bigger part of it is you have access to 2 billion, 2 billion potential facebook viewers. It wasnt we have 90 million households, it wasnt there are 108 or however many households in this country. 2 billion potential viewers. The scale of entertainment leans so heavily towards facebook. Then you look at google in terms of youtube and even amazon with twitch and what theyre doing with prime at t needs if youre going to be in the entertainment business, there needs to be consolidation not so they can keep up, but so they can pretend to be within of whats going on with the top five market Cap Companies in the world plus netflix. Does the consolidation help or hurt the valuation of sports leagues like the nba, teams like yours. Irrelevant. Irrelevant because and ill tell you why. One school of thought says, well, sports rights fees must be going down because its tougher in that market but what they dont recognize is that, a, these large Entertainment Media platforms, the online, the facebooks, the googles, et cetera, are the largest market cap, huge revenue, huge profits. But none of them have been able to succeed and be truly effective in recreating audiences or directing audiences to certain programming if you want to get a significant audience, relatively speaking, to any of your original programming, the best and most Cost Effective way to do it is through live sports. And so i think the sports rights fees for our league in particular are going to skyrocket. We were talking and had Mellody Hobson on earlier and talking about diversity. She talked about taking a knee i was curious given the kaepernick situation if one of your players took a knee, what would you do well, more than ten years ago, one of my players was on a video saying the National Anthem, its not our National Anthem and ive got every amount of hate email that you can imagine calling him and me every single word in the book and what i did was i published those on a blog post things kind of changed but i supported him. I supported him. Because he is an american citizen and he has the right to communicate whats on his mind when we invaded iraq in 2002, we had players who stood up against that and said i am against the war. And i supported them this is no different but when it happens in football, its a little bit different there simply because if the new york giants and new york jets walk through here, you might be able to recognize three people from each team youre not going to know the other 50 and they dont really have large social media platforms like nba players, so their only real opportunity to take a stand is when the cameras are on. You love this country but you also had a runin with the government i mentioned it earlier. Yeah. What the lesson of that the lesson when i got charged with Insider Trading and kicked their ass . Yeah. We have some dumb ass running the fcc. Still yeah, and it was ridiculous and ill tell you why i say that if you really wanted to reduce Insider Trading, then publish bright line rules on your website and make it readily available. You can do this, you cannot do this because then theres no question but they keep it as gray as possible because they want to bring as many lawsuits and charges as possible. Its an employment act because you go the s. E. C. , the more charges before my case was even over and by the way, it went to trial in dallas. I was found not liable in three hours, one hour of which was lunch. It was ridiculous, an it took seven years. Seven years to get there and so if you wanted to solve the problem, theres a thousand better ways to do it and they make no effort to do any of them thats ridiculous. A separate question because its in the news another guy who is sometimes put in your category of sorts, carl icahn. I dont know if you saw the news, southern district, subpoenaed a former well, theyre calling him the white house advisor, carl icahn, for information about his push to change the federal biofuels program. Do you think that makes sense . I dont know. I dont know enough about it. Is that crazy to you . I dont know. I really dont know enough about it one way or the other. Thats where donald trump and i are different. All right, that is mark cuban in new york city with Andrew Ross Sorkin at the deal book conference. The headline really from that conversation is mark cuban saying that he is still considering a president ial run in 2020, though he has not made up his mind. One of the highlights in a farreaching conversation, but as i welcome you to the Halftime Report today, i call your attention to the major averages Dow Jones Industrial average down by 204 points all three of the major averages under pressure this hour on a report out of the Washington Post about the president s tax plan the senate is considering a delay in the Corporate Tax cut until 2019 stocks began falling on that news almost immediately and that is currently where they stand now, at the lows of the day. We have an allstar panel with us today led by a special guest, Mario Cabelli is with us for the hour to talk about all of this along with joe terranova, steve weiss and jon and pete najarian. As were watching whats happening in the stock market, how are you thinking about kind of where we are in the bull market cycle and the role that tax reform and policy plays in whether it keeps going or fif fizzles out . A year alow after the election you thought you would have infrastructure, a tax cut, kind of less regulation. Youve had less regulation kind of quietly so what drove the market it was the economy and earnings. And so when we look into 2018, the european economy is improving substantially. The u. S. Economy is okay the consumer has a net worth at an alltime high and housing and industrial what happens is businesses are frozen in some ways. Then we look at the multiple of earnings, which is a function of earnings and the Interest Rates and the flow of funds. So when i put it altogether, you know, a 1 correction today is not a big event. Obviously you have the stress test, the etfs and figure out what happens and that gives you some shortterm dynamics. But on the next year or two, i think we have a margin of safety if Interest Rates stay below 2. 5 but the big picture is simple. Monetary policy is being withdrawn and you need fiscal policy to keep the engines moving on a global basis. Do you need tax reform to get the bump in earnings to keep this train moving at the speed in which it appears to be . No. I think you need to make American Industries competitive. Global taxation is not appropriate. Were the only country in the world where you charge taxes no matter where you earn it you need territorial you need to cut the rate to make Small Businesses more competitive. And then youve got to get into the weeds. Well get it together. Whats the Effective Date . What are the other elements that go into it those are the important things in a tax dynamic. Pete, the Corporate Tax cut was billed and has been billed as the centerpiece of the president s plan. Yeah, no doubt about it. Clearly the Market Reaction today doesnt pour tend good things. Right. For investors if it in fact is delayed but even a messier process. Messier and delayed to 2019 delayed through into 2018 i think wed all say, you know, probably expected. 2019, i mean thats pushing it out even farther to mario point, how about the fact of why are the markets where they are because earnings have been fe gno phenomenal theyre spending more now. Folks are putting out their capital and spending it to grow. So i think there are opportunities. Now, this is like you mentioned, this is a 1 fallback. And were looking beyond today. I agree with that. We dont want to overplay it. 3 to 5 would be something im not talking about just an individual move today. The unquantifiable, if you will, aside from earnings and this Global Economic recovery that weve talked about is what level, if any, are expectations of policy like tax reform in the market at all . And we just dont know nobody knows i think its in there on small caps. You think its in there absolutely. If you pass a bill that says im locked in for ten years on 25 or 20 on taxes, then i can start functioning as a business guy. Youve got to know what were dealing with how do i make Investment Decisions . Can i write off depreciation at 100 or 25 of 50 . Whats my cash flow going to be like whats my employment levels going to be like where are my opportunities on the globe basis. There is word as well in this report by the Washington Post that companies would still be able to immediately expense or deduct their Capital Investments in 2018, so maybe that part of certainly whats been critical in terms of what the president has talked about, maybe that stays on the current time frame. And capex in the first half of the year and buybacks are down so thats important to be 2018, down relative to 2016. You want to see a reacceleration of capex in 2018 and you need that certainty now, mario is talking about the need for fiscal policy you have the handoff or the belief that the handoff was going to occur from monetary to fiscal policy. It is concerning when you hear, to petes point, 2019. Can we even get to 2019 without them losing the house . Thats the problem so now youre questioning, well, maybe that fiscal policy isnt going to be there when the monetary makes the handoff. Wasnt the centerpiece, steve, of this whole thing Corporate Taxes . Thats going to spur earnings, maybe eight to ten bucks there was a note yesterday from jpmorgan, an incredibly bullish note on what tax reform could mean for earnings and what the stock market could do as a result of that if you start having to peel some of these expectations away, what impact is it going to have on the market well, my own view is that you had to be delusional to believe that it was going to happen. It happen quickly. If you go back to reagan, you had much less acrimonious, as a matter of fact, not acrimonious at all between democrats and republicans and it took them to get three years to get a tax plan look, i thought it was best 5050 that it happens. I think its unlikely that they get in just deducting depreciation because thats going to be difficult to get in. You still only have 52 as a majority and its not a full majority, in terms of corker and in terms of others so ill focus on marios point which is i think its stifling to corporate america, because they dont know what to do can i deduct interest, can i not . Will it be grandfathered in . Will it not be grandfathered in. Thats the real issue. You have europe growing at 2. 3 . So if trump did nothing and didnt talk about taxes at all, i think the market would be higher today but im not worried about it 3 to 5 doesnt bother me either. Lets try to get more from john harwood who is down in washington, d. C. John, im wondering what you make of this and what its a result of and whether the Election Results of the other evening and some of the commentary thats been out there on the backside of that has forced the senates hand in some respects yes, i think thats one of the things thats forced their hand the other thing is that the bill appears to be on track to cost more, add more to the deficit than the senate rules permit and they have got to look at ways to reduce the cost of it. So i wouldnt be surprised if its either delayed further or if the Corporate Tax rate doesnt go to 20 at all, goes instead to, say, 25. They have got to figure out a way to make this fit the parameters that they can pass and the point that you noted, scott, earlier, i think is probably from what economists tell me the most powerful thing to spur growth in this bill is the expensing more so than the rate cut and so if that stays in, i think the argument for passing the bill is not substantially weakened as long as they have the expensing in one of the things we know so far, and i found this out when i interviewed gary cohn the other day, is that corporate ceos are enthusiastic about this and the white house is counting on their support to help push this across the finish line. Heres gary cohn what are you hearing from them right now the most Excited Group out there are big ceos they all tell me how excited they are to get a tax plan that makes the United States competitive, makes it so they can grow their business domestically, makes it so they can actually pay wages here. People have trapped their money offshore you cant pay u. S. Workers you can pay nonu. S. Workers. Dont businesses have a ton of domestic cash they borrow money at home if they want to expand but their real earnings are trapped offshore if companies were making that money onshore, theyd be paying their labor and workers more money. So our biggest supporters are really the Business Roundtable theyre the most excited about this. So id like to know if mario agrees with gary cohn that in fact corporate rate cut and the repatriation is going to go directly to wage increases or go to something else. Lets get down to basics. We as a country spend 4. 1 trillion, we take in 3. 6, we have a deficit of 500 billion Corporate Taxes are only 330 billion. The more important question is where will i locate my company, where will i locate my business, how will i want to do business even if they lowered the rate to 25 and i lock it in for ten years, i can start planning. I can start doing things i can start locating facilities in places where i dont have to worry about tax. Thats my largest my largest expense item right now as a businessperson. Mario, where do you think they should make up the gap . Im not going to get into the weeds with that. I just think that we have to move ahead and be competitive on a global basis. John, we appreciate you jumping on for us on this developing and important story, clearly having an impact on the market the dow is down 211 points. Its about a 1 move. Weve already addressed that, spoken about it a little bit when you look at what the markets are telling you, if you want to listen, the markets are saying very shortterm event here, judge. 16 surge in the vix today people seeking protection. Push it out six months you push it out days or weeks into the future, its making a 2 move, the vix futures are, 2 and 3 so all im saying is if you Pay Attention to that instead of people saying, wow, i can still by 14 vix or 15 or 16 vix if i push it out nine months, theyre not doing that theyre all in the short term. Theyre thinking something goes on here in the next week or less that causes whatever gyrations were seeing today to sort of go away. Steve, i wonder what were going to start seeing from wall street forecasts for the coming year in the stock market which are already starting to trickle out. Didnt we say Craig Johnson on the show yesterday 2800 or thereabout was the number that he had on the s p . If youre factoring in what you think earnings are going to be with an added boost of tax reform and tax cuts and if you have to start rethinking the market, youve got a potential issue, dont you youre coming off a great year in stocks. You do. But it could certainly have a different feel to it next year if you start to think that the centerpiece, the hallmark of the entire plan is going to be in calendar year 19. Thats true but my bet is theres still not a lot in the market for tax, because everybody here and everybody thats come on has said, and if we get tax. Not that they recalculated their numbers. Even jpmorgan, if this happens and we get another 10 to 15. So this is the emotional kneejerk reaction the market is down 1 . Ive got stocks down today 3 , which is and thats the risk that you see the leaders take on more gas, get hit more, and then it snow balls. But i still maintain that this economy is Strong Enough if corporations dont get completely frozen, mario, and that the european economy is moving well enough and youve got emerging market, which actually is more of a risk because they have been piling on debt, highyield spreads have also been widening so were seeing some of those issues. But right now its still the economy moving but it shows every time it happens and everybody says every day its going up, you make records every day, its great to have this because it gives you some sobriety. Yes the oldfashioned pullback after you had a 30 increase. What were we i think today no, i think today the s p 500 is going to set a record for the longest stretch without a 3 pullback in history crazy. Give me 10 down would be great. Youd like to put more money to work. No, id like to buy stocks cheaper. You think the market is too expensive . I think theres no margin of safety if Interest Rates go to 2. 75 . Everything else constant, Everything Else is never constant what happens if you have that haircut in the market. I also dont like to listen to the individuals that talk about Corporate Tax rates are only good for corporations. Who owns them . My clients are endowmentendowmet retirement systems, and they benefit from that. Thats just an ignored approach to who owns the american stock market. Is it harder for you and your analysts now to take a look across the whole scope of the market and find things that are attractive enough to put money to work in no, thats not complicated. But what complicated is trying to get i cant talk to the analysts, by the way its the rules of the road. You know what im getting at, though, right . Yes, yes, i agree pete. You know, i think the reality is as we went through earnings season, what did we have we had the powerful part of the banks, right then we started to get technology in. Where are we now were more towards the retail and some of the names if you look over the last week or so, now youre starting to see folks who are missing and some of the negativity of whats coming out of that, scott, and thats i think another drag because the catalyst was there thats come. Weve watched these stocks move to the upside, whether youre talking about the microsofts, the bank of americas, jpmorgans, all of those names, they move to the upside now theyre pulling back some. But when you look around and if were all focused on the same thing, earnings, not so much tax reform but earnings, well, now were in the weaker section of that and i think thats pulling down the markets as well. And i would say if were going to focus on earnings and want to look at earnings that will come out in january, lets get this over with now lets have the correction in november and december. Lets get it out now, get it out of the way, move into january so we can look clear and visibly once again at what matters most, which is earnings. Let me ask you this before we switch topics. One year into the Trump Presidency and the impact its had on the market, what are your thoughts when you think about the role that the president s played in where we are in the stock market a market, by the way, that he certainly has on numerous occasion cited the fact that were at record highs. Does he deserve a lot of the credit the premarket system is at work its being unfetterred, less regulation is good let innovation come forward. Let the markets function i would say that you have no infrastructure bill. You have no tax reduction. You have no other dynamics at work and yet the market keeps going up how much of that is the flow of funds into a narrow group of stocks powering what you talk about as an s p and nasdaq and how long does that last . How much do you move away from etfs which are mindless investing and look at stock specifics . What happens when it gets stress tested well see. Work in rogress. The markets fluctuate. Bernard said it 70, 80 years ago, markets go up, markets go down given that you are certainly considered to be a media investing guru, im wondering your thoughts as we pivot towards some of the deal news of the last couple of weeks or at least the speculation. At t time warner, you own both is that right . We own at t because we have a low cost basis on directv and are waiting for our taxable accounts to get a lower corporate individual tax rate or flip it into 2019. 2018. So we own it but our approach is we own time warner time warner over the next x number of years, five years, will have ebidta of 50 billion and capex of less than 2 billion. This is a very powerful engine so 700 billion of the 10 billion in round numbers lets go through the math. You have a stock that was going to get 53. 50 in cash and 0. 143 blended value 101. The stock is 88. Whats it worth if theres no deal what if you took out some of the elements is it the Film Entertainment no who do i want if im stevenson do i want the content . Do i want turner do i care about which part and do i go global you have today 7. 5 billion consumers, 4 billion of them probably have a mobile television how do i get to them how do i deal with that ecosystem. So to the degree that you want by the way, telephone stock has got a market cap of 200 billion youre competing against facebook with 500 billion, amazon with 500 billion, facebook, the google of 500 billion, apple, so this is not a big company. And so should they be able to scale up, what cant they keep and work in progress. Do you think its going to happen i think cnn should merge with fox so we have a politically balanced system. I was serious. I know you were, i wasnt i know you were. Seriously, though, do you think its going to happen, the deal are you worried as a time warner shareholder that it may not happen youre talking ten points look, jeff sold off his cable business and sold several other parts. This company has a very good balance sheet. Lets talk about 800 million shares, 778, you multiply that by 80, youve got 20 billion of debt youre selling at a very low multiple on 5 billion of ebidta and capex. Will fox come back and bid on it like they did last time . Who else will be out there will google surprise you will apple surprise you . Netflix has a market cap of 90 billion, which is higher than at 75, 80. It sounds to me like you say if this deal falls through, there are other potential suitors that are ready right behind the curtain. If there arent any, look at the numbers. Theyre going to puke it out and theyre basically going to sell it and at that point in time mr. Marco will give you an opportunity. So now the question is theres a Short Interest in telephone because the arbs are working the other way. What happens if im randall . Do i want to get my stock higher do i do it short term by stepping back or do i fight to get it done . Well see. Theres arm wrestling going on. Have you talked to bucus lately about it . No. You gave me a weird look. I dont like to get in the middle of the randall is very visible, jeff is not whats iger doing with regards to fox you tell me. Are they looking for content . Looking for distribution i think the notion of consolidation basis, you see scripps network. Where do we get content, where do we get the libraries. Theres only six movie companies. Sony has one of them, fox has one, viacom has one and, you know, warner and comcast and so on so we like that. We like the notion of having a library that gives you cash flow while youre developing new product and freshening it up but i like a lot o entertainment. What mark cuban was talking about sports can i buy a Baseball Team . I can buy the liberty braves i like that. I like gambling. I Like Companies with Live Entertainment in las vegas a so theres a lot going on. Theyre very attractive. If Randall Stevenson, by the way, is going to be on in the next hour with andrew back from deal book during power lunch, if you could ask randall a question today, what would it be why do the deal do you think he should walk no. He should not walk hes got he shelled out the Justice Department to put conditions on that are untenable. Do you think he should go to court . Hes probably going to do that if he has to just to show that hes romantic on the other side of the coin, think about the number of companies that want to grow that are going to do transactions that are waiting to see what the rules of engagement are. The amount of Financial Engineering and mergers an acquisitions you saw it in the military area, which is an area we still like you saw orbital atk, you saw collins being taken over who else is going to be there . Were recommending all of the military except for chinese companies. Were going to take a quick break. Stocks plummeting now. Session lows across the board on that report that the Corporate Tax cut might be delayed until 2019 Halftime Report back right after this tomorrow, a special edition of the Halftime Report aboard the intrepid air, sea and space museum we have a live studio audience as we honor americas veterans on the guest list, former navy man, former new york giant and current wall street executive, bill mcconky plus wall street legend, vinny viola. Moowromiss the Halftime Report torr fm the intrepid sea, air and space museum ar porting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. We are back. Lets talk about snap getting slammed with another downgrade this one is from the lead underwriter of the ipo Morgan Stanley which downgrades that stock to a sell. Dr. J. I think they have got an obligation to do it basically at this point, judge. When you say oh, yeah, that platform we brought out and told you it was the latest, greatest, is going to destroy all these other companies, including facebook, and instead they get their lunch handed to them and theyre having to redesign the whole thing after nine months, those are all huge negatives i think if morgan doesnt come out in front of it, then people will be hitting him on that. Anybody else have a thought deceleration of growth going into the ipo was killer. I dont remember if you remember this lead underwrite throws in the towel. Three hours into it sold the position you know why i dont believe in the company but i think those ipos offer an opportunity. It offered an opportunity that day. Now all of a sudden youve got the shorts the shorts have been right because they continue the deceleration of growth, you and i talk about it yesterday, i think its a single digit stock sooner or later and at that point in time does ten cent have interest again are they going price average ten cent didnt even talk to them before they bought the stock. No intention. Look, i think this keeps going down dont forget, youve got the Corporate Governance issues. Youre basically along at evans whim. I dont understand when people will not learn that the value with these ipos is you get in just as you said on the initial offering if you dont, you wait until you have the turn in earnings, and every ipo weve witnessed over the last five to ten years from facebook to this one, its the same condition they dont rally until you get the turn in the earnings and you are not getting the turn in these earnings from snap in quite some time. Mario, im curious on a couple of fronts not only how you view these social Media Companies like snap, twitter, facebook, but even a name like roku which had its first report today knocked it out of the park and the stock was up like 50 the last i saw. Well, edgewell reported numbers today. The stock was down 10 at the opening. It was up 3 when i just looked at it 20 minutes ago those shortterm dynamics are beyond our skill set it gives you great opportunities to buy stock i want to talk about something nobody ever talks about. Case new holland cat and deere are hitting new highs. This stock has the same businesses i want to own that because i think you can make 50 in three years. Roku you made 50 in one hour. Do you own any of those social stocks . No. In different pockets our growth team led by howard ward would own the facebooks an going googles. I forgot to ask you when we were discussing the potential disney 20th century fox thing, you do have a position, albeit small, i think, in netflix, right . Tiny. Okay. Im just does it make you does the potential of that kind of deal make you think more negatively about netflix or more positively that theyre causing that sort of potential change all around them . The beauty is that you have to have content and fresh content and youre going to go from instead of 40 minutes for the walking dead youve got to go to tenminute segments. Youve got to tell the story, youve got to deliver the story and you have to have it on these mobile Television Sets around the world. And who does that . And is it baliwood, the guys in china or hollywood where do you get the creative talent and where do you buy it with sustainable earnings. Thats why you want to own a movie studio, among other things and then so how do they distribute the product and get the best returns so youve got to look at various channels of distribution netflix and hastings did a great job early on and got 100 million subscribers and raised rates a dollar per month thats a lot of money. So they got to buy theyre spending 8 billion. Amazon, how are they going to make movies that are going to avoid being disasters . How are they going to make movies that are going to be successful how are they going to get it on average . Is it the fact that what you characterize as a tiny position because of werent sold under it initially netflix i told you its my hair shirt. It is basically the notion i might have one on. It was basically the fact that i try to buy it at 78 when it pulled back and it got down to 79 or Something Like that and i got stubborn on price. So it doesnt it doesnt show up on my 15 40year kegger that i missed certain stocks. You look at it again . We look at everything many are called on but few are chosen at the moment we have not bought any netflix. At least i have not. What i have responsibility for okay. Have you noticed gold is on the move today, hitting a threeweek hi Jackie Deangelis and the futures crew have more. Good afternoon, scott, thats exactly right. Gold is on pace to snap a threeweek losing streak is this the start of a bigger rally for the precious metal were not quite back to 1,300 yet. Look, jackie, when were in this low Interest Rate environment, people are looking for antifiat type currencies. Weve seen what bitcoin has done gold has fallen behind a little bit of the curve so i think it has a little catching up to do towards bitcoin and other alternative currencies the upside of this channel here up above 1,300 is the target that im looking at that we can get to in gold very quickly. Gold is Holding Steady above its 200day moving average so what are the levels to watch now . Jackie, the next bit of resistance is 1,294 to 1,300 i would sell it actually up there, jackie. I dhn theres a whole lot of correlation between bitcoin and gold the gold move correlated with the move in the dollar from the 95 handle to the mid94 hands so i expect the dollar to rise again and i think gold is a sell. Thanks, guys. Meantime on the live show were joined by joe zidle. Hell tell us why he thinks this market rally is in the ninth inning plus scott redler called the oil rally and now hes going to reveal where its going next all at the top of the hour straight ahead, mario ready to answer your investment questions. Tweet us halftimereport use ask gabelli thats next. This is where i trade andrs. Manage my portfolio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access 24 7. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. You myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. I am a First Responder tor and iemergencies 24 hours a day, everyday of the year. My children and my family are on my mind when im working all the time. My neighbors are here, my friends and family live here, so its important for me to respond as quickly as possible and get the power back on. Its an amazing feeling turning those lights back on. Be informed about outages in your area. Sign up for outage alerts at pge. Com outagealerts. Together, were building a better california. Welcome back to halftime. We asked our viewers to tweet us asking questions for mario gabelli. First up, don asks which one stock would be a buy and hold for the next ten years well, you know, we do have a focus on companies that are cash generating that have Pricing Power and that sell a reasonable multiple a lot of our holdings, our average holding in small caps are in the tenyear average Holding Period our turnover is 10 . Its that high because they get taken over so what i would look for is looking at these companies that can grow into significant opportunities and she should look at my 13f which lists all of the companies we own and see what our holdings are and look particularly in the microcaps fund and the Mighty Mites Fund and the small cap. Have you bought anything new lately yes. Can you share it with us . Its work in progress the stock has droppedfrom 20 t 13, its called mattel. So you bought the pullback. Why mattel over hasbro. Oh, i like hasbro as well i dont own any hasbro and because of the price new management and the new things if we bought 20,000 shares, its a lot. On the other side of the coin, im buying little companies that are doing well in entertainment. Golden entertainment, el dorado resorts, full house. Full house is going to do extremely well the stock is a nano cap. Rjl entertainment, 3. 13 with 13 million shares who is that good for you dont want to buy it up, you want to buy it down. So a pullback in the market allows you to buy some stock with some quantity theres so many Interesting Companies where you can double and triple your money. Look at viacom its got a 12 billion markup the deguy is a work in progress. Id make my nonu. S. Assets and do an ipo on them. So theres a lot that can go on and a lot of very Creative Things america is blessed with creative ceos. When you look at mattel, im going back to that, a 30 stock in january a lot of people would say did you just buy it because it got cheap . Yes i didnt buy it at 30. But this is a company that needs a significant turnaround. Can they do it absolutely. Thats the question, will the Management Change allow these companies to have how long will it take bob at viacom has only been there nine months. Theyre coming out november 16 with their results they have wonderful assets but they were ignored for a long time how does mattel get back in thee game they got to sell a 5 billion market cap so, you know, were doing that were looking at it and well be focused on it and if they were in providence, it would be easier to get to than Southern California dave wants to know where the 10year treasury yield is going to be next march march of 2018 want a quarter so you can flip it . March madness is alive and well were going to unleash some expectations, and i think the Commodity Prices will start rising again so im in a camp that says 2. 75 to 3 im only looking at companies that will benefit from rising inflation so if youre looking at 2. 75 to 3 and over 2. 5 is problematic. Thats why we like some of the bank stocks. Do you need foreign rates like boons and so forth . What i need is america to stop giving 500 billion a year to the rest of the world and they are controlling our economic destiny and we have got to attack this export dynamic 300 billion a year goes to china. Got to solve it. Are you in duncan no. Jab no. As far as i know. Whats the best advice you have for a private investor . I was thinking of potential takeouts for dunkin obviously they love coffee for whatever, they bought my caribou petizza and so on krispy kreme. You got to be careful on your doughnuts. Basically the advice i would give is fairly simple. Like i did, buy shares of stock, become an owner, understand it, read the material, read the annuals, and stay focused whether you want to buy Madison Square garden and you can get the knicks almost for free and the stock is 225. Theres one 2. 3 billion shares. So you got a market cap of 1. 1 billion in crash i want you to buy the atlanta braves, i want you to get into what you like. Do you like entertainment . Buy it depends on how young you are. Hes vulnerable to somebody pushing him around we need an enforcer, similar to the guy that was there when Patrick Ewing the oak man theres a lot. Now the rangers lost four or five in a row, they just won five straight. All of a sudden the rangers and the knicks are doing better. Teaien mn r ateafo enrtnmt . Theres a lot that goes on well do final trades with mario on the desk. Feel that . Thats the beat of global markets, the rhythm of the world. For most, the cadence of today. To us, the pace of tomorrow. Its people and machines uncovering opportunity. Cloud computing providing endless capacity. Blockchain making transactions safer and faster. New markets born where they werent before. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. Win an uncertain world . K predictable income pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce warehouses. And private debt to finance transportation and infrastructure. Building blocks of strategies to pursue consistent returns over time from over 120 billion dollars in real assets. Partner with pgim. The Global Investment management businesses of prudential. Welcome back to the Halftime Report im john harwood in washington with news of another element of the Senate Tax Bill which diverges from the house bill that is the senate is planning on restoring the deduction for families with high medical expenses that was removed from the house bill as a revenue raiser the other changes of course we have talked about, theyre going to do full repeal of state and local property tax and income tax reductions and delay that Corporate Tax reduction until 2019 lets do some final trades, i want to ask you, and someone asked me to ask you about g. E. What do you think of g. E. Here youve got a company with about a 200 billion market cap. Do you own it yes, i do own it in certain funds, probably 30 million worth. And i think they are a work in progress the engine business is phenomenal rolls royce is in the engine business, thats very attractive with oil prices at 57 today, they could have some economic flexibility on their marpart its just a question of cash flow, if they reduce dividends 60 cents, the stock goes up. The stock is 19. 94, its going to tick down before he comes out with his comments . Do you think the worst is over i think the stock is discounting some of the negative dynamics that were in place and now we have to look at the other side whats the other side of the equation on how do they use cash flow, what are the assets and what are they worth and how do you monetize them . Its not a company that i like because its a 200 billion market cap i like xyz, thats a small cap that can have some good growth in the next few years, like the electric vehicle, the hybrids, in that area, entertainment sector, live excitement. And im not talking about Justin Bieber or beyonce. It. You anticipate theyll put the dividend in short order . They should it makes logical sense, get it out of the way and move on and get the cash flow and use it to do other significant things. If they dont cut it, they dont cut it whats your next question . I was going to read something about tomorrow were doing a live show tomorrow from the Intrepid Space Museum vinnie viola, looking very much forward to that. Hope all of you will join us tomorrow lets do some final trades. The kwaquantitative trade ubs and microsoft, their highs is 100 bucks, i think it gets there, the transition subscriptisu subscription is good. Sv is the symbol there. 27,000 calls today, this is a 4 to 12 range, this thing i think is ready to move, we have seen energy start to move, im finally getting me feet back into some of these names, im not buying everything, but i sure am liking some of these drillers i would win with winn steve as got the right dynamics, and the e sports and e gaming are very attractive. S thank you for being here always a press. Especially with all this deal news and i got to listen to mark cuban running for president. What do you think i think everybody should run for president. Are you throwing your hat in the ring for 2020 . Im aged out. I dont know about that theres a very high bar for that thanks for mario for being with us today heres whats on the menu on a very busy day, stocks taking a serious tumble, the dow down just 200 points, reports that the house will delay the Corporate Tax reduction. Snap shares continue to fall Allan Patrick here with h at Randall Stevenson, live at the deal book conference does he plan on giving in to the do