It is those continued concerns, though, about rates that remain front and center joe, i go to you first did the market overreact yesterday to the fed minutes first they were dovish then all of a sudden they were hawkish, stocks were up, then they were down what happened . Yes, they did overreact, absolutely and i did a poor job, as many others have in the wake of february 9th, not saying that that was the bottom, and that it was time to get back in again, because clearly when you have a market that is yesterday they said we were going to retesting okay, but you have a market being driven back on this rebound so powerfully by growth momentum stocks. And that is just not aligned with the strategy that were all so afraid of the strategy of higher rates, higher volatility, and being more defensive because theres a risk to the outlook. Growth momentum stocks do not lead the market higher they dont account for nearly 75 of the s ps gains in that type of environment. I mentioned this note we were able to get our hands on it was from a bogoldman sachs podcast, okay . Theoretically theyre sending this out to their clients. They say they and four rate hikes but its certainly possible that the fed winds up hiking another one and they do five hikes for the year, not because of higher inflation, at least not yet, but because of the labor market overheating five hikes the market seems to be okay with three, maybe we do four, but do we need to start thinking about five i think thats an aggressiggi think thats a lot of rate hikes. The fed president said even four was slightly on the aggressive side everything had to be working perfectly in the economy to get there. That just implies that the labor market across the board, not just in select areas but across the board, starts really pushing up wages, and that you start to get inflation, in a way that we think is very unlikely in this economy. Its not Strong Enough this is not from jan hassias, their chief economist at goldman, but one of their Top Economists there i dont know what you make of it, but the market, josh, is not in any way, shape, or form ready for five hikes yeah. I got to change up my podcast. Im listening to barstool sports all right. This is not this is what i want to get this is what i want to get across today and were getting these questions from clients too, about the stronger labor market or inflation and rates are rising the twoyear is now at the highest yield since 2007 so there is definitely something that people need to Pay Attention to but the big problem that we see is that the two terms are being conflated. Inflation and higher rates are not the same thing weve had plenty of time when youve seen rates rise but inflation maintained the 1990s are a great example of that, there was no Inflation Oil was 10 by the end of the decade here is whats important weve seen 17 episodes were rates would rise on more than 100 basis points on a tenyear yield. On 14 of those 17 periods, stocks went up by an average of 22 . It has not been a problem for stocks to have the tenyear rise more than 100, it just hasnt. The three periods that were down, the max drawdown was 2 . So stocks can handle rising wage just fine. Inflation is really what you have to worry about. And the good news is, inflation is still 2. 1 . And a lot of the volatility in inflation measures has been on the supply side. Its Energy Prices so will we see much faster wage gains . Its entirely possible there is no evidence of it right this moment, that its a risk. Inflation is really whats held back stock prices and caused big problems, not rising rates and do not use the two terms interchangeably. Its wrong pete, were sort of wondering what these potential risks are, and maybe the fed holds a whole bunch of them. At the same time, the market is smacking us in the face today and says Pay Attention to the tape, were up 350 on the dow. Maybe you guys are overblowing all of these concerns about rates and inflation and the fed making a policy mistake. First of all, i think the algos have now programmed themselves to be attached to the rates themselves and i say that, when i say that, im talking about the financials how about the fact that we saw, as we looked and watched the tenyear go from 294 to 290 in a short period of time today, suddenly the banks went down, then all of a sudden they turned around again that was just a function of algorithms reading something, scott. I dont think thats human beings coming in and saying, look, its time to get out of banks. Then the banks bounced right back i think the environment were in now is all about velocity. Its the moves its how fast these things are moving up or down in terms of rates and what thats going to actually mean to the markets volatility, 295 yesterday on the tenyear then the market sort of fell out of bed all of a sudden after this rally after the minutes then we finished down more than 150 points on the dow. Pretty broad selling. Clearly the market is spooked by higher rates to some degree to some degree. Its going to remain that way. Yesterday was a tell although in my opinion, the reason i like the financials so much, and much more now than i even did before, scott, is as we watch, if we can continue just this chopping but moving higher, i think the financials will do extremely well thats going to drag along the rest of the market you look at Something Like citi, look at bank of america, goldman sachs, a lot of them predicate their earnings on trading. If trading goes well to your point, the banks are positive for the month big banks, regional banks, the places that you talk about, often are actually having a great month. Thats because of rates. Yes, theres no doubt about it if those rates chop. But if theystart to scream to the upside, if we go to 3, 3. 05, Something Like that, rapidly, scott, then fear comes back into the market, volatility will come back in. Well be in a 23, 24, 25 vix it will be temporarily but it will come in until we see a little bit of relief tony dwyer said yesterday well get a retest of the low and that were going to get it within days, within 30 days of whatever date that low was put in so look, we challenged him on that what do you think . Are we in a higher market . Historical patterns would say youre going to come close to retesting the lows i dont think youre going to set a new low. By retesting the low, i dont think youre going down to where we were weeks ago. I do think youll see a 2 to 3 dropoff why will we be testing lows historically was the fed hawkish or dovish greg said yesterday that they were dovish. I think they were irrelevant because it was three weeks ago i think whats more relevant to this discussion is inflation and you know what, all the inflation worries that we have right now are centered on the month of january im not giving you an opinion. Thats a fact. Were worried about average Hourly Earnings at 2. 9 for january, cpi for january that doesnt make a trend, okay . Would you have to see what the february numbers are the first look youre going to get are in two weeks when the average Hourly Earnings for february come out. And look, all im saying is, you dont know what the trend is right now. So for hassius or whoever it was at goldman, you have to remember, scott, theyve been very hawkish on rates. Theyve always been on the outside there. I dont think youre getting five Interest Rate hikes youre courting disaster if youre the fed and you do that all of this is irrelevant until you see what february is doing as far as inflation. I just think that people have real questions as to whether there could be a policy mistake by the fed there always could be a policy mistake there always could be a policy mistake. This is important. Now were talking about a 70 chance of recession before 2020. Yeah, but thats two years from now i agree with him, but im still fully invested right now into the market im old enough to remember when the fed was making policy mistakes in 2010 by engaging in qe and then qe2. You can point to everything the Central Banks do and say it has the potential to be wrong. Eventually Something Like go wrong. And you can certainly look back and point at the fed they have a very serious job i think so far theyve gotten us to where we are. We dont know what the exit looks like in full but every single time, to point to them and say policy i dont think the fed clearly knows what the exit looks like in full. Of course not of course not. Theyre playing the game as it goes. Lets bring in wharton professor jeremy segal for more on where he thinks the market goes from here, professor, welcome back, always good to talk to you thanks for having me. We had a guest on yesterday, as i mentioned already, who suggested, by historys suggestion, that we were going to go retest those lows. Do you think we do that . Or is the Market Making a pretty clear Statement Today and subsequent days about where we are . Well, first let me echo and agree with some of your guests, that it was an overreaction yesterday in the market. We have to remember, three weeks ago on january 31st, we hadnt had that stock Market Correction at all we were two days from the alltime high. Remember that crazy st. Louis gdp now report, first quarter, going to be 4 to 5 . Smart money has it just barely over 2 . And the Fourth Quarter is probably going to be revised down to 2. 4 outside of a little bit of, you know, hotter news on cpi, all that super growththat they expressed concern about, you know, three weeks ago has really cooled down in the recent data that being said, i do think were getting four hikes i think no one knows whether its going to be three or five the fed doesnt know they look every single meeting at what the data is actually going to show. The important thing is, you know, 150 to 200,000 jobs, we were marching along every month, we had really good, very low jobless claims this morning it suggests another. We cant continue at that pace without the Unemployment Rate reaching down to 3. 5 by the end of the summer or early fall. We can all argue about where is that sensitive part. But 3. 5 historically has sparked labor shortages and is a cause for the fed to be more aggressive so youve got if they can get it slowed down in that job growth, and i hope a speedup in productivity, which we thought we might have had but some of the recent data isnt suggesting that we really have, you know, we have a situation in the tightening labor market without the gdp growth that we want. You have bollard today saying if you have too many rate hikes, it could do damage to the economy. But dont forget, hes been a super dove i mean, you know, his dot on the dot plot was below 1 . He thinks were in a regime of zero to 1 as the right rate hes been, you know, the super uber dove of all the members of fomc i hear you. Bi by the way, the neutral rate, the fed is coming down on what the long term rate is now its 2 3 4 a month from yesterday, the march 21st meeting, thats really important powell, its going to be the first time hes gob on ting to n the conference and well get the dot plot thats what im looking for. What gives you such confidence that the fed isnt going to blow it whats the chance of a policy error . Theres always a percent. You know, i youlook back at the policy, by the way, im not one that thought that qe was a policy error im not suggesting it was in any way at all either. Im just simply saying, now were still trying to land the plane. Weve been circling forever. Lets take a look at, when the fed hike okay lets look at when the fed hike in december of 2005, remember what happened to the markets, early in 06, oil crashed, commodities crashed, the feds stepped back and said, woo, maybe were a little premature and they held off another eight, nine months. In other words, look at the markets. If you see the markets going down, if you see commodities going down and everything cooling way too much, you hold back thats what the fed is going to do they look at the dollar. They look at the commodity markets. They dont have a preset notion, im going to, you know, increase three, four, or five times you know what they also look at, professor, what weve learned they look at, they look at the market too. They look at whats happening in the stock market absolutely. For better or for worse, their opinions and decisions have been made at times by virtue of what the stock market has done and what investors, quote unquote, have told the fed to do. Do you still think that gains are going to be harder to come by in the second half of this year oh, i absolutely i mean, last december, i was on cnbc for the first time in god knows how many years, i was the most bearish person there i thought zero to 10 stock returns this year were going to march into high er rates, thats going to be challenging. Yes, earnings are super great. Remember theres front loading on these earnings because of the way the tax cut was actually rolled out so we cant get so excited thinking its going to be 8, 10 per year as far as the eye can see. And i think, you know, the republicans will have political challenges going into the midterm elections and higher rates will keep a lid. Im not a bear market guy. I did say there was going to be a correction sometime this year. We had one a little sooner than i thought. I think higher rates plus political challenges are going to make 2018 a much quieter year than certainly we had in 17 youre not the only one who thinks that. Thats my opinion professor siegel, weve heard that theres no alternative, because yields are so low, you have to go into stocks at what level is it that yields will rise to present that competitive argument where equities are no longer attractive are we just going to kind of make it up and throw it out there that theres no alternative . I think, you know, a slow growth, risk aversion world, and we have an older class of investors, all sorts of things that are going on. Most of us think that, you know, 3 1 2, 3 3 4, may be the peak of the tenyear and that is a lower world than we experienced you know, im not even talking about the inflationary 70s and 80s but even in the 60s and the 2000s where we had the tenyear at 5 to 6 so real returns, those tenyear tips which i like to look at, because i think those are really the good comparisons to the stock market, its still less than 1 . And one has to remember, when they first put tips out, they were 3 to 4 after inflation guaranteed thats a challenge for the stock market i still 1 is still not very challenging for stocks so again, i dont think i think 20 p e, when we talk about the new normal, the new neutral, that may be the new normal p e ratio. Were about 20, i think, of 2018 earnings i dont think thats overpriced. I think 15 is gone you are the professor, and youve seen a lot of markets yeah. How do you make sense of the fact that the market tanked, okay, 10 in what felt like ten minutes, and weve gotten almost all of it back in the next ten minutes . You know what i mean how is that possible what does that say about where we really should be . Okay. So what i think we had is an inordinate number of trend followers, momentum players, that just were riding the market up im not talking about momentum stocks or, you know, one particular class versus the other. But, you know, i said the rise in november, december, discounted the Corporate Tax cut. All of a sudden in january it was rising again and discounting it again, like lets keep on going on this ride here. And i think a lot of people were putting their stops 2, 3 below. They said im on this train as long as its Going Forward and im jumping off, and thats what you had. When those stops were hit, all of a sudden a lot of stocks came out and there was a vacuum below, and we went down 10 in a very short time. Trend followers have been with our market for decades and i think we had more of them, and theyre more computer driven than before. This is not a new characteristic about markets. Its just that everything happens so much faster because of algorithms and trading than what we were used to in, you know, the 60s, 70s, and 80s both moves were stunning. Well look back at this period years from now one thing thats important. Compared to the flash crash, 2010, where we had dislocations in blue chip stocks, we had dislocations in etfs, there were no dislocations. It did go down and up but there were no crazy prices, like we said before. I think we got through that with flying colors, and really showed the integrity and liquidity of the market, a much better performance than the last socalled flash crash, 2010. So i think thats a positive for investors. Carrie . Professor siegel, you talked about the likely advance in the second half of the year. We talked about costs going up, not interest necessarily, but they are, and wages are up and prices are up. Im sure you have an opinion on this, the issue of pricing there has been so little pricing, its impossible because of the transparencyin the economy except at the local level, such as real estate, to raise price, whether its on any product that can be shipped, Consumer Products and services, thats very transparent, amazon is the market. That of course has an effect on the margins of the companies that we cover. Theyve been so strong, 18 Fourth QuarterEarnings Growth for many companies, 15 this year so what do you see for the rest of the year when it comes to price . Because i dont see how we get inflation much if we cant raise price. Yeah, well, youre right, were in a global you know, efficiency, amazon trying to bring efficiencies everywhere, every firm bringing efficiencies in our new Digital World but one also has to remember that still, labor costs are still 70 of total costs of firms. So if we get tightening of that labor market, theres got to be some offset. One also has to look at oil and commodities in general i mean, you know, gasoline, they say the two important factors for Consumer Sentiment are gasoline prices and the stock market whats going to happen there fortunately, because were almost selfsufficient in oil, oil going up is not as damaging as it used to be in the economy. Commodities and labor costs can offset these other deflationary factors that could lead towards a more sustained price rise. Im not talking about anything that is dangerous. But the fed you know, 2. 5 to 3 , theyre going to continue a tightening phase on the market and stockholders have to confront that, you know, in basically a 20 p e environment professor, always good to talk to you and get your insights on where we are well see you soon absolutely, thanks for having me Jeremy Siegel of the Wharton School we didnt talk about buybacks yet, the kind of boost theyre likely to give to this market. One more element to the market, the fundamental story has been there i still contend when you look at how the markets dropped at the rate in which they dropped, scott, that was not based upon anything other than the algorithms and the momentum and everything picking up. Jeremy siegel, the professor there, was just discussing it. The speed of the recovery off that as well, i mean, look at how short a period of time, and it gets shorter every time we have these blips in the market, where the longevity of where we can trade. The fundamental story has been strong, the buybacks is another element. The combination of all of that is why you would probably be leaning more towards the bullish side still, even when you see the markets, as much as theyve come back. Have they done it fast yes, theyve done it fast. The problem is the key that rates hold which is why were watching them if weiss was here, he would say, there were fundamental reasons why the stock market had that correction. That was because Interest Rates had that spike off of the wage number okay. But to joshs point im sorry. No, go ahead. Josh brings up a great point. Its about inflation no, it spiked because of fears of inflation rates have been going up for three years. Excuse me hold on. In april of 2013, the tenyear was 1. 60 the following january, the tenyear was 3. 05. The s p went from 1550 to 1850 we had the same concerns theres the template of t the market can go higher as rates move higher. To counter stevens point, the strategy of selling volatility and being so short volatility in derivative and etf products was a languarge contributor to significant decline. If we have a three handle on the tenyear, within the next couple of weeks. Which we will the market can go higher. It historically has in the past it can, yes i just finished explaining that its happened 14 out of the last 17 times that the tenyear yield went up 100 basis points or more, stocks went up and not a little bit by an average of 22 . Did it happen in all of those times when you looked in your history book, when we had all of this other stuff going on, when weve had a raging bull market for nine years sure. 1990s, 1960s inflation isnt inherently bad, its good for the top line of companies too much inflation is bad. Josh, i think you said earlier, you know, were talking about inflation levels that are 2 point something percent. You cant tell me if the tenyear goes to 3 [ simultaneous speaking im not doing anything. Okay. Its a major factor its very important to point out. Inflation is absolutely the enemy. But the level at which it becomes the enemy is 3 plus thats when you start seeing stocks returns in the neighborhood of only 6 versus when inflation is below 3 , when theyre more like 16 . But so were not there were not there. We know, though, the way the market trades, since you told us before how markets work, is the market anticipates things. I know its upsetting youre 100 rate the market is not always right the market uses the closest rita can get and thats where Interest Rates are going you can try and make a determination. The market tries to anticipate things that are going to be either good or bad, and it doesnt always get them right. The market is very smart its the collective wisdom of 100 million very smart people. But its not always right. Im not suggesting the market would be right thats not the point. If you get a three handle on the tenyear, are it depends on i want one chart. I want to put this up, i think this feeds into that discussion. Lets do xlu utilities and reits have bounced very nicely and rates have not pulled back. And what that could be telling, that divergence could be telling you that the market might be sniffing out a short term, near term top in rates. If youve got this big bounceback in rate sensitive sectors and its not happening because rates have pulled in, perhaps the market might be saying, all right, thats enough so look at the reits, take a look at utilities. That could be something that you can hang your hat on in the very short term lets hang our hat on a commercial break heres whats coming up on is in the Halftime Report. Snaps up 25 in a month. Twitter, 40 next stop, one analysts call to take the money and run, quickly. Plus Consumer Reports releases its top car list. Healimrertn the list t hfte po is back in two minutes. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. When it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. You know whats not awesome . Gigspeed internet. When only certain people can get it. Lets fix that. Lets give this guy gig really . And these kids, and these guys, him, ah. Oh hello. That lady, these houses yes, yes and yes. And dont forget about them. Uh huh, sure. Still yes xfinity delivers gig speed to more homes than anyone. Now you can get it, too. Welcome to the party. Snap and twitter are moving lower tonight after moffett nate ansons calls. They reiterate on twitter, josh. They go 19 bucks whats your take here . Theyll be right if twitter fails to show the momentum that they had begun to show this is a very expensive stock i think a lot of hopes are now being pinned on the fact that they finally got their act together on the revenue side and that the days of zero user growth are over. But that may not be the case so i dont know that i would say 19 is the right price. I would just say stock is up 100 in the last year and if they dont have a continuation of that momentum, its definitely coming down and probably a lot but i think snap is really interesting, because snap had almost the same bounce that weve seen in twitter over the last couple of months. The only fundamental change in snap has been negative onestar reviews for the app on the app store are like 86 i dont think ive ever seen anything like that before. The User Community is so disgusted with the overhaul. And the company just doubled down, they said not only are we not changing it, we have even more tweaks that were going to make as we go forward. That will be interesting to watch that play out. I dont think there are any other examples of that we could point to in the relative short history of publicly traded social media stocks. But i cant imagine it being a good thing thats my take on the two. I own twitter, would not own snap and i think, again, both companies are going to have to show a continuation. Another take . Who has the hot take on this one . I would just like to say that twitter is still well below where it was a few years ago and it was such a hot name, it took years to sort of crawl above its ipo price. I think theyre doing the right things in many ways. And the idea that its so expensive relative to where other stocks have ipod in the digital space, it just isnt, its done a lot of things right. Regional banks are on pace for their fifth straight gains well see what pete is trading, next feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. 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. Experand the nx hybrid. Nx, with a class leading 31 mpg combined estimate. Take advantage of special president s day offers now through the 28th, on the 2018 nx 300. Experience amazing at your lexus dealer. Weve been preparing for this day. Over the years, paul and i have met regularly with our ameriprise advisor. We plan for everything from retirement to college savings. Giving us the ability to add on for an important member of our family. Welcome home mom. With the right financial advisor, life can be brilliant. But prevagen helps your brain with an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Welcome back to the Halftime Report. Im Courtney Reagan. Russian foreign minister Sergey Lavrov says moscow will consider supporting a u. N. Security Council Resolution calling for a ceasefire in syria if it doesnt cover isis and al qaeda fighters he made the comment while meeting with the serbian foreign minister in belgrade attorney general Jeff Sessions announcing the largest sweep of elder fraud cases in history, involving 250 defendants from around the globe who victimized more than a million americans with losses totaling a half billion dollars. This department of justice is going to increase and sustain our work to prosecute fraudsters wherever they may be the loss, the pain, the suffering these criminals inflict on our good and trusting seniors must never be tolerated. 58,000 gas fire pits sold exclusively at home depot are being recalled the base lacks a heat shield to protect consumers from burns they were sold august through november of last year. Thats a cnbc news update at this hour. Scott . Thank you very much, Courtney Reagan lets get to Pete Najarian at the setelestrator. We have a chance to get to this today whats interesting, scott, yesterday they came in and bought 7,500 of the march 22 calls. They got those things inexpensively, 12 cents at the time today they came back for the exact same calls again, bought 5,000 more, between 9 cents and 12 cents, basically playing up well, i see you already moved ahead, but playing on the we went back. Oh, okay. Playing to the idea that this could basically get through 20, start moving towards 22. These could easily move very fast even without actually getting to 22, between knnow an march. We got another one, exxonmobil a couple of weeks ago we had exxonmobil as well the march 82 1 2 calls today theyre coming in aggressively, march 76 1 2 calls. 11,000 of those trading. Aggressive buying once again im not saying they were right last time, they may have been early, stock was a little bit higher than it is now. These are right on the money if we had any push for exxonmobil, these options could really move very fast. They paid 1. 23 to 1. 26 for those calls. Good stuff. Straight ahead in the blitz, were trading pandora, wayfair, and chesapeake [ phone rings ] hi, tom. Hows the College Visit . Does it make the short list . Yeah, im afraid so. Its okay. This is what weve been planning for. Knowing whats important to you is why 7 million investors work with edward jones. 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Get ready, because were helping leading companies see it and see it throughwith digital. Welcome back to the Halftime Report. A check on the markets, its been quite a day yet again the Dow Jones Industrial average is holding above 25,000 been up as high as 359 points, the high of the day. This comes after yesterday, remember, after the fed minutes, stocks ripped higher than gave it all back and closed negative by triple digits a lot of focus on the tenyear note yield as well today we can show that up for you too, at higher than 2. 9 or just right above at 2. 91 theres still a lot of focus on whats happening with Interest Rates and yields and the impact that that could have on where stocks go from here. We do have some breaking news. Phil lebeau in chicago reporter scott, Consumer Reports out with its annual ranking of top auto brands this year it is a brandnew brand to the report, one thats only 2. 5 years old, coming in at number one it is genesis, the luxury line from hyundai that started in late 2015. It is ranked as number one by Consumer Reports, just ahead of audi and bmw we asked the head of Consumer Reports, okay, what stands out about genesis . He said its pretty simple, these are luxury cars that have good reliability theyre not complex, theyre not complicated, therefore genesis comes in as number one in the brand. One other note here, among the top auto picks, the chevy bolt, the all electric chevy bolt. Consumer reports listed it as its top compact green car. Jake fisher who well be hearing from on power lunch says this car has great range and is funny to drive i always get this question, who struggled, who didnt do well . Here are the bottom three brands, according to Consumer Reports. Land rover, just ahead of jeep and dead last for the second year in a row, fiat. Guys, we have reached out to fiat and jeep for comment. Again, jake fisher, head of testing for Consumer Reports will be joining us during power lunch, you dont want to miss what he has to say i imagine fiat may have something to say as well, phil, knowing history. Reporter are you talking about mr. Marccione . I would love to hear from him. We dont hear much from him. I wouldnt be surprised phil, thanks, phil lebeau joining us with that information. We want to go to the white house where eamon javers has standing by for us as always from the north lawn with breaking news. Reporter scott, the president just finished up another session here on School Safety in the wake of that horrific shooting in florida last week. The president making some news here, indicating hes already talked to the nra, the National Rifle association, about what kind of changes they might expect or be able to live with politically in terms of gun laws the president saying that hes talked to them about the age of purchase for weapons he said its not about money, its about common sense and the nra will back it so the president here indicating that hes already talked to the nra and they are willing to back some changes in gun policy if that bears fruit, that could be an interesting point of divergence here now for this debate on guns in this country well have to wait and see where he goes with that. The president also making a number of other comments, suggesting that part of the problem here is what children see on the internet and in videogames talking about california, the state there at one point saying that hes thinking about pulling all i. C. E. Agents out of the state of california. The president here talking about the idea of the training that students go through for these school shootings, saying he doesnt like the idea that kids have to do these active shooter drills as they call them on campuses around the country. He says he thinks thats needlessly scaring the students. The solution the president focused on again and again in this meeting was Arming Teachers hes put some thought to that, he said he would only arm expert teachers, provide funding from the federal government for training teachers to be able to fire back at school shooters, that seems to be a proposal that the president is embracing today here at the white house, scott emonday, thanks so much. Well be right back. O fix the e. Nothings wrong with the elevator. Right. But you want to fix it. Right. So who sent you . New guy. What new guy . Watson. My analysis of sensor and Maintenance Data indicates elevator 3 will malfunction in 2 days. There you go. You still need a pass. Welcome back to the Halftime ReportBitcoin Futures below 10,000 whats your outlook on bitcoin here across the whole space we talked about this regulation head wind. To understand currency impact on the economy and that immediately sends sellers out front but i just talked to john and hes doing a krypto and i think it should be supportive and bullish here at this 10,000 bitcoin. Its a 21 Day Moving Average. Thats 12,000 on the show last week as resistance and now theres two tops there thats your resistance right there. The market is trading very technical right now. I dont see the threat of regulation as strong right now its eased a little bit and thats why we had that pop off the lows so i would expect this market to trade sideways and then if we get one application for one cryptocurrency youll see them all pop. Meantime were joined by bryce doty hes going to tell us why he sees denial about rates in the market plus carter worth of Cornerstone Macro break down the three charts pointing to a big rally ahead for gold futures now at cnbc. Com. Lets do our trader blitz now. Pandora is down today despite beating revenue estimates. You about 20,000 those did not workout. Because of the weaker guidance the stock got punished to the outsi outside. So 2018 output is up 3 . Theyre going to put spending 12 . What youre witnessing today is a short squeeze. Im encouraged by the report but i would not necessarily step in right here continued to be better. All right wayfair, wider than expected loss that stock is getting hammered. Looked like pandora is down wayfair is down 22 today. They reported 47 higher revenue but the margin was squeezed because theyre spending a lot of money but what we have seen is the market really wants these High Growth Companies to spend more money and if theyre able to execute well they could get back on track. The stock sits at the 50 Day Moving Average i think that it can move higher. Roku, a stock you own thats down 17 on guidance. By the way, it beat on earnings and beat on revenue lets put this into perspective. Its where it was one week ago im keeping the position this stock will be back at 50. Its like crazy. They have a margin problem weighing on guidance you can fix it really easy the right people in there. If you cant fix it quickly you get the right in there. Its about ten days to cover and the report wasnt bad. Expectations werent particularly high so its not a huge jump today but its definitely something noticeable. That being said, still not an area of the market that i want to be in guidance Going Forward for the full yr eawas nothing special. Just ahead well go around the desk and give you final trades right after this quick break. Oh, and theres the closing bell. sighs i hate missing out missing out after hours. Not anymore, Td Ameritrade lets you trade select securities 24 hours a day, five days a week. Thats amazing. Its a pretty big deal. So i can trade all night long . All night long. Is that Lionel Richie . Lets reopen the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with Td Ameritrade. 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. Feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. 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. Final trades now pete you are up first. I love the financials wells fargo has a pull back from that 66. We know why after some of the news released not too long ago but the stock goes higher. You dont think its broken for awhile i dont think so, no. Just to add to what i was saying before on twitter if youre more shortterm oriented trader theres a very obvious place where you want to set your risk and that would be right under 30 which is where it gapped i think it will hold on the down days volume is nothing special momentum still looks good in this stock underlying so i would stay long and have that stop in place and if youre a longterm investor ignore everything i just said but the up trend is still exact and its shrugging off down for the last three months very nicely. You got into this name. Im all over the place but mostly i was buying it in the teens after jack dorsey bought. Are you tempted to sell the stock . No way. Every time they crush it i have add, so far, so good i really feel facebook has a ton of momentum. Not just the share price publishers have had it with whats gone on with facebook and the time line to the point that theyre making changes there in the meantime twitter has been doing right by publishers all this time and thats something that a lot of people arent talking about but it could be beneficial to Revenue GrowthGoing Forward so i like the story. Carrie . Waste connections wcn. Bought it recently tough year in the market last year its in the central service. Inflation proof. Focussing on secondary markets, not the big cities, we think it can grow mid teens and has 30 upside right there. General motors. We heard early yeier that its of the most Energy Efficient cars out there you have to hand it to the team not only electronic vehicles but aon the mou autonomous vehicles. This is a longer term trade i would go with mosaic. There it is mos is up better than 1 today on a day where stocks are surging. Dow is up 230 points power starts now. Rising rates. Are investors coming to grips with the fact that stocks and rates may both be able to move higher at the same time. The debate over guns in america dominating the National Conversation and coming up well take a cnbc view at just how big the gun and ammunition businesses really are and who the Major Players are that you may not know about and sitting down with athlete and broadcaster tim tebow about his leadership lessons im Brian Sullivan and power lunch begins right now