Volatility, a new list of top large cap longs to own a 62 target on that third one right there, uber. Mark and gene, thank you for joining us a year since the launch of the loop frontier index. Where is your head right now on what has been happening in the markets . I think that it is nothing clear headed thinking. And that is the key that i would advise people is to try to ignore some of this idle speculation that weve seen. I think just some of the movement especially in Something Like apple is a perfect example of what is in fact idle speculation. So my view is things are generally still solid. Obviously concerned about some of those global headlines. But when i think about tech in blaur, that is really my focus, what is going on this frontier tech still most optimistic about some of the small and even the Biggest Companies where they can go the next two years. And you mentioned apple because of its importance, this dinner between cook and the president , do you think that it is significant it is i think the takeaway is this, there is widespread concern obviously that apple iphone will be tariffed. I think this is another example that the the dinner is another example of why that is a low probability. If i was going to put a number on it, id say 5 to 10 chance that the iphone is tariffed. There is a gross misunderstanding ultimately the purpose of a tariff is to hurt the Chinese Companies not the Gold Standard of the u. S. Company. And so i think that it is highly unlikely there is the macro factor which if in fact everything slows down, apple would be impacted, but i think that there is a broad misunderstanding of what the risk is to apple here. Mark, how much did the macro play into your picks and what you expect to i mean are these at all defensive against possible tariff increases, trade tensions or did you just ignore that all together . I think that the honest answer is i largely i go noed that if you were to ask me what would be the best recession stocks to buy or best internet stocks to buy in a recession environment, they are all cyclical. If you remember way back about ten years ago, googles growth went down to 3 in the worst of the recession. And so id like for a recession basket, id look for stocks with the easiest most defensible valuations facebook would still make our top pick because it trades at 18 times earnings for premium growth google would also make that pick but we sorted our stock picks differently and we went with the most contrairian calls so we go first netflix, facebook not contrarian hasnt been knocked down but the valuation is still compelling like the fundamentals. Uber is a contrarian pick. We think fundamentals will improve and finally spotify, we have clear catalysts with that name apple is up more than 2 . And year to date, 34 . And even month to date with all of the renewed tariff talk that weve seen play out and royal the m roil the markets more broadly, down half a percent. Do you think the lack of tariffs on iphones is already priced in . I think that there is still this id say idle speculation that goes on one reason that the numbers in terms of performances, they had that strong june quarter but stock basically down 5 after that peak. And so that is largely in traded in line with the market. My sense too, i have a ton of respect for mark ma, and i woul also put in the contrarian camp apple in a contrarian camp and the contrarian is that most analysts have this view that to have a price target beyond 230 would somehow be a violation of some analyst code and they need to apologize to the buy side i in fact believe that the stock could be 350 or greater and some of the multiples that mark is talking about as apples business evolves so i would put that in a surprisingly contrarian category gene, about apple, a concern that i have that has been raised this season is what happens to apple in the leadup to 5g we saw qualcomm talking about customers sort of backing off and deciding to wait rather than come off with the kind of products that they expected based on 4 g saw that show up in some of the other chip names what happens to this iphone cycle, will people buy as freely or will they say maybe ill just wait until 95g iphone comes out next cycle there is a risk to specifically like the march and june quarters of 2020. If you get that close to 5g, you probably are going to start to hold off historically investors have looked past any of those dips. I think at the end of the day is that 5g is going to play out and deliver on all of its hype and i think that the iphone will be a beneficiary of that. Mark, lets gig into uber 62 target what gets you there . Well, fundamentals need to improve. We think bookings growth and what they called a justed net Revenue Growth can accelerate back half of the year because comps get easier here. But partly you because the company is starting to tweak with pricing that is one thing that has to happen for the stock to kind of rerate and another thing that has to happen, they have to prove out the path to profitability. That is the biggest question since the ipo. Losing 3 billion a year in ebitda people dont want to buy that. If you can show steady reductions in ebitda, they did this in the june quarter, it was down materially from the march quarter, if they can do it for a couple quarters in a row, people will believe that their are long term profit pools here so consistently bring down the operating losses, though that acceleration in bookings, adjusted net revenue, that should lead to the rerating in shares so we like the set up on uber back half of the year. Yeah, looking at all your targets, potential appreciation if targets held would be pretty big on uber, but not as big on spotify. Yeah, spotify, they have announced publicly that of the four major record labels they have reached deals with two of them if they get the other two done before the end of the year, we think that that is a probability, we think that that is a rerater and the other one is they talked about launching something called a two sided market place what they are trying to do is insert ad units into your playlists or give artists and labels a chance to promote themselves in your playlist. Whether reggae, country, whatever it is if investors start seeing that, they will see it as a gross margin catalyst and that is also a rerater. It is a little contrarian. We think there is a lot more up side if those two catalysts owe did your and we think they will in the next six months so lower Interest Rates, more easing but i think one of the key questions here given the that cant that we are seeing so much volatility on a macro level in equities right now, growth at what cost . Do you think investors are starting to lose some of their appetite for some of the unprofitable yet highly growing companies . I think some things that mark is talking about, marks message is that in fact no people arent losing that appetite i think if things get more touch and go, that some of the higher multiple stories will come in. And i think probably on a different page where mark is versus netflix or spotify and feel like those at least netflix in particular are at risk coming back i dont always all roads in my world do not lead back to am surprisingly, but i do think that is an example of a story that will perform relatively well this a more difficult period does it lead back to your frontier tech index though yeah, so longer term we have a frontier tech index this would compete with Something Like bots but the basic idea is to capture what is essentially a merging technologies anything that will dramatically change our lives much smaller names versus the mega cams that were talking about today. Mark, gene, wish we had more time we will one day. Well see you soon thank you believe it or not, it has been 15 years of deals for google and 15 years since its ipo. As to what should investors expect over the next 15 . Josh lipton has more from san francisco. Reporter and jon, a 1,000 investment in google at the time of its ipo would now be worth about 28,000 since its Public Market debut 15 years ago. Google has surged more than 2600 . The companys growth has been fueled in part by its big bets on acquisitions, some of which worked out well for the search giant, others a mixed bag. For example there is youtube which the Company Bought for 1. 7 billion in 2006 the video streaming power house now generates an estimated 20 billion in ad revenue per year and then double click it agreed to pay over 3 billion for back in 07 that advertising platform has power googles ad business its biggest acquisition, 12. 5 billion for Motorola Mobility in 2012, less than two years later, sold the smartphone business to lenovo, but google did get to keep most of motorolas portfolio of valuable mobile pal tent patents. To date 40 more than amazon on acquisitions but could increasing regulatory scrutiny hammer googles opportunity to do more deals in the years ahead . The cfo recently told me she is still open to more acquisitions, specifically when it comes to her companys Cloud Business in fact new google cloud chief has made it clear that acquisitions will be part of his strategy as he looks to close that gap with amazon and microsoft. Google recently announced that it is buying a looker for about 2. 6 billion which will add new Analytics Tool for cloud customers. Josh lipton, thank you. Lets stick with this mornings rally. The dow up 263 points. The s p also up 34 points. Charles schwabs chief Investment Strategy is with us to talk about the rally and more li stchlt liz ann, thanks for joining us do you think this is sustainable . The true answer, i dont know i think that we got a reprieve on yields a little bit so that may have calmed some fears. We know that there was some algorithmic triggers, so maybe the fact that we moved out of it has things moving in the opposite direction were in a very momentum driven short term market if you look at the factors that have been working. Momentum has been working. It has been con enis straighted in the more defensive areas of the market, but momentum nonetheless. And one thing that i can say, the breadth statistics in this latest couple of days look fairly decent. So maybe there is hope that this has sustainability and then lastly, id say that the potential for additional tax cut, whether it is feasible, whether it will happen, that might be a bit of a bright light under stocks as well recent reports by you, you said lost are longer term concerns i think it is amazing how little attention was given to the downward revision. It is a broader measure of course than s p profits. And it came with the annual benchmark revisions on july 26 when Second Quarter gdp was reported it was about a 200 billion downward revision to corporate profits. Con send straighted in the last three years, but result now were looking at a flat trend for the last five years which also may help to explain aside from the trade war why Capital Spending has been weaker than what many had hoped for because there is a high correlation between corporate profits and Capital Spending and the other thing, you just have to look at some of the deterioration in a few key leading indicators i dont think that were looking at reception type conditions right now, but we have to keep an eye on those leading indicators that are starting to see their trend deteriorate which is maybe a first sign that you are going to eventually move into level deterioration you of course see it in friend first before you see it in level. I hear you talking about maybe tax cuts light a fire, jpmorgan today says wait until september to buy because the earnings yield is improving. I wonder, do you feel like the market is starting to grasp for reasons to buy the market clearly has been hanging on to fed rate cuts as a reason to rally. There is nothing wrong with fed rate cuts. I think it provides an elixir for certain parts of the economy. Im not quite sure that it is a broad elixir for what ails us. I dont think what is happening globally is a problem as a result of too high Interest Rates begging the question are lower Interest Rates going to be sufficient to offset some of the negatives. So far weve seen the concentration of weakne nness manufacturing. But there is a reason why manufacturing is a leading ka indicator. You tend to see deterioration first. I think we need a pickup in manufacturing to have a hope that it wont eventually morph into the consumer side of the economy. So again, on the margin there is nothing wrong with easier monetary policy, but im not sure that that will solve all that ails us right now experts are always telling individual investors not to be reactionary. It strikes me that were about in the same place that we were at the beginning of august, all of this volatility not withstanding so investors who have been paying attention and wisely keeping their hands in their laps perhaps, what should they take away from all this movement, to what degree should it influence how they think about what the market is likely to do over the medium term the reality is we actually havent made much head way since january of 2018. So were looking at about 20 months of lots of sound and fury, but havent made much head way not to mention the nonconfirmation by things like the value line and transports and small caps what our message has been and this is ironically to some degree a message about reacting, but it is using rebalancing. So you are reacting and adjusting your portfolio to what has been happening in the market rebalancing forces investors to do what we know were supposed to, when left to our own devices, we tend do the opposite but when you see these bigger moves, like i said going back 20 months or so, weve just seen these big swings, your portfolio will tell you when it is time do something. So if your domestic equity exposure gets out of whack, let your portfolio tell you it is time to pair that back and it keeps investors on the right side of the trade. And that is the closest thing to a free lunch in any environment. Liz ann, thanks for joining us triple digit gains for the dow this monday morning. Yeah, so far. And still to come, trade, tariffs and competition from samsung. Well tell you what came out of president s conversation with apple ceo tim cook as the president told it over the weekend. Meanwhile, the dow is up nicely this morning looking to make it three in a row. Up 274 points. 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Tim was talking to me about tariffs. You know one of the things that he made a good case is that sam samsung is their number one competitor and samsung is not paying tariffs because they are based in south korea and it is tough for apple to pay tariffs if they are competing with a very good company that is not. So samsung is not paying tariffs because they are based in a different location mostly south korea. But they are based in south korea. And i thought he made a very compelling argument. So im thinking about it that was the president yesterday commenting on his dinner and conversation with apple ceo tim cook trade, tariffs and competition from samsung among the topics discussed. Apple leading the dow higher today. Joining us more is kara swisher. Happy monday how you doing good. So i mean, we knew that samsung is based in south korea and therefore would not have to worry about the tariffs. Im not sure what to make of this beyond the fact that donald trump is listening to tim cook on this issue. Well, im sure they had a long dinner and talked about a lot of things and this is what he came away with. A lot of times he tweets things that arent exactly what happened at the dinner, so im sure he mentioned that they compete with samsung and that it is competitive but i do ultimate thubt that ti making i dont think that he is on with this tariffs at all so i think donald trump selectively listens to what he hears. That is my guess and obviously tim cook is probably being polite and cordial. He has a policy of engagement even if he doesnt agree with people and so i suspect it was not exactly what was said, but who knows. Because i know apple wont say anything about what was said right and tim cook, you certainly wont hear him widely call samsung a really good competitor or maybe even mutter the name of samsung at all but i wonder, we were hearing the president talking about mac pro parts and how they werent going to be exempt from tariffs. I think some investors felt like maybe the president didnt care about apple and the impact of tariffs. This does seem to at least give people a different side, a different look at that relationship or consideration. Yeah, i mean these parts are assembled here, but they need to be brought in from somewhere else so they will lead to high costs for consumers if these tariffs are in place and so that is the question, how do you all kinds of ways do this, but one is not to manufacture these parts in the United States which is never going to happen. Apple makes the stuff here, they have stores here, they have vendors here, they are using into are r gorilla glass. So parts come from across the globe and this is a global universe for most manufacturing of consumer goods especially electronics. So the question is, are they going to be higher prices on or will the break think a little more complexity that is involved he tends to not think complexly i think. It is amazing to me because quite a number of american manufacturers have come out and made similar arguments about the role tariffs have given globalized supply chains making their products less competitive against foreign competitors. Yet it this does seem that tim cook was able to make the case and he was able to hear it here. Do you think that there is i guess a leadership or management playbook that other Companies Need to take note of where tim cook is concerned and his outreach toward the white house . Well, i think donald trump is a unique individual. He likes meeting with the head of apple, tim apple, so he likes the idea of them coming to him and consulting with him. I think it is good to make compelling cases to him. The question is whether it change the next day. A lot of these tariffs have been all over the place from inside the white house and he changes on lots of topics. And so i think that it is probably good for tim cook to have had dinner with him and been engaged with him. I dont know the lasting nature of it because you never know with donald trump what he is going to say there one day to the next and i think stressing the issues around how many jobs dlaeted, making their case, is probably a smart one for apple to do because i mean, these free trade is very important to a company like apple and a lot of Companies Across the United States i was going to say, it does seem like apples comments and other things have helped the president s thinking evolve. He is now talking about tariffs affecting consumers, christmas, big companies. A long way from saying that china is paying for all of this. Well, you know, i dont know what to say. I think that the way this has been done is not in a it is such a complex topic and not a reality show these are peoples jobs, these are very complicated relationships. And while you may have a good point about china and trade, tariffs, there is ways to do it that maybe arent so much a hammer and more delicate it is a delicate surgery and there may be need for changes, but it is really important for all the sides involved to engage the president and at least get his attention and bring him to mind ideas. He has a lot of respect for other Business Leaders so i think that he probably tim cook probably has more heft, but hes also attacked apple and amazon and facebook quite a bit so i think that it is probably best to engage and that is probably the adult thing to do and that is what hes done well see if everybody does the adult thing. Kara swisher, thank you. Dow looking as jon said for the Third Straight session in the green, up 280. Session high 336 and the vix below 17. 25. 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Get to know geico and see how much you could save on renters insurance. The president tweets about the fed and the economy saying our economy is very strong despite the horrendous lack of vision by jay powell and the fed. Goes on to say in the next tweet that the fed rate over a fairly short period of time should be reduced by at least 100 basis points with perhaps some quantitative easing as well. Well see how much of this jay powell takes into account when he speaks in jackson hole on friday morning the president on twitter. Meanwhile european markets to close in a few minutes seema mody is joining us with the breakdown. European markets started very high on hints of china stimulus and Interest Rate reforms designed to Lower Borrowing costs. We had the china exposed stocks among the top performers, but all five major averages closed off the highs. German Stock Market Holding steady bundesbank warning that the country is likely to tip into recession this quarter citing a sharp drop in export, weak Business Sentiment and slumping industrial production. The warning comes as German Government officials are reportedly readying fiscal stimulus measures to stem the slowdown suggesting berlin could spend up to 55 billion euros if the crisis hits. Separately revised reading adding to negative data, prices rose by just 1 in july. That is of course below the ecbs target of 2 we had the European Central bank Meeting Minutes on out on thursday, but before that, italys vote of no confidence in Prime Minister conte set for tomorrow and could have broader implications for the eu. Back to you. Definitely one to watch lets get over to sue harare r in hong kong, police are urging protestors to stop using violence against them and appeal to the public to revert to peaceful and orderly expression of speech. Our message is very clear if protestors dont use Violence Police will not use force. The protests that took place on sunday shows if protestors are peaceful, police will no reason to workers are gradually returning to Notre Dame Cathedral after a month long delay prompted by fears of lead condemnation the work is a crucial first step to ready the fragile cathedral for reconstruction and greta on a transatlantic journey to the u. S. Posted a photo of the team on the voyage. They are bound for new york. You are uptodate carl, back downtown to you when where he come back, other recent ipos looking to set the tone on lockup expirations well discuss what it means after the break. And major averages coming off three negative weeks in a row, but up three days in a row were back after a break 90 of shares expiring today, fears that insiders might dump the stock, didnt look like they are doing that. Seem to be holding on so far the stock is actually up at this point more than uber deidre bosa has more from san francisco. Thats right, shares have been fluctuated between gains and losses and this could be a good sign for the bulls because today is the first opportunity for insiders to sell shares. As jon mentioned, it needs 88 of the Stock Available to trade. And if early employees and investors wanted to, they could finally cash out lyft was private for over a decade insiders have been waiting a long time for this moment. But even the lyft has tumbled nearly 30 , Many Companies earlier employees and investors got in far below even its current price right now. Lyfts earliest investors got in at less than a dollar per share. In 2014, priced at 10 selling today would give those investors gains of more than 500 , yet they are not selling in huge numbers. Later stage investors who got in around 47 a share, they may have more incentive to hold on if they think that licht oig shares will ultimately rise. And there may be reason to be optimistic on its last Earnings Call, the management said that they were heading toward profitability fasters than they expected and that they had given investors an actual breakeven date later this year. So if they can stay steady that could set the tone for other big ipos as they approach their own expiring date. Uber raised more money at later stages in the private markets. Some of its insiders are already under water and it hasnt been as clear about its path to profitability. All right deidre, thank you. For more on lyft, lets bring in tom white and also yousef skully yousef, you got a buy on lyft and with all of the hang wringing over what might happen, what can you tell us from todays action i dont think that you can say a whole lot own if you are a shareholder and you participated in different series even on the private side, you are still above water. I think the last round i think it was the i round done in june of last year, i think it was about 20 below where it is trading. And i would say the last Earnings Call really gave all shareholders but entrepreneurially the private ones a reason to continue to believe in the story because, one, the company showed much better top line as a reflection of just better competitive environment with uber domestically and the other is much better Cost Containment which to deidres point is clearly kind of a back or a First Step Towards profitability. And one of the big concerns that we hear from any investors is they dont know when this company and uber are going to turn profit able is it 2022, 2023, et cetera. As to i think that the earnings they put out tell you that they are more likely than not to turn profitable earlier than what the street thinks. Since uber went public, looking at the chart, they have been like synchronized swimmers for the most part. That continues today i was watching it and does that change and given that, what is an investor to do . We were looking at the Current Trading multiples for most stocks this morning and their multiples are effectively the same because uber will have synergies by offering multiple products, they will get to a higher margin at a steady state. And so i think that that is kind of that is one side of the argument other side is that lyft doesnt have multiproducts on the platform, yeah,le it will lit a second tier player, but it is growing more quickly so that fight between potential for uber versus the smaller more nimble share gainer i think will have determine what kind of stock trades at a premium. Are you is you are priced to see lyft shares up 1 . Yeah, i am. I was expecting for a down day i think it reflects this company has been private for a very long time and i think the early kind of pure vc investors who hold shares, they are sellers at any price basically. And i think that the outer Trading Volume is around 3 million shares a day were clearly seeing some selling, but lyft raised a lot of money from kind of other more traditional investor, mutual fund, other Asset Managers who might be less inclined to sell with the stock down. That is a key point, the fact that you are talking about whether lyft today or uber later this year, a numbering that went public that were so mature, a lot of angst built up what the lockup expirations could look like because of that does lyft set the stage for what more of these expirations could look like . I think that it really boils down to the fundamentals of the business and whether there is a reason to hold on for longer the earlier question around do early investors with an average cost of a buck or below are more inventized to sell, of course. But i think that were talking about a multibilliondollar company that has arguably a long runway ahead of it and to the extent that the top line remains or has the potential to continue to outperform expectations with a path to profitability that is shorter than what people think, i think that these companies will continue to perform. Recently proprietary survey on the ride sharing business, that basically show them less of all the people surveyed have ever tried a sharing service. And among those, less than 40 have actually tried it once a month. At the same time you have people that literally take these services multiple times a week and so i think that the runway for growth from both frequency of rides and total number of riders continues to be pretty high so we remain pretty positive actually on both we had talked about a return to price rationality after they became public and now they have. Is that being born out in real numbers . It seems to be less promotional. Lyft for example their sales and marketing line declined 4 year over year. Now, that is not the only line in the p l where some of the incentives and promotional stuff shows up but they grew revenue 72 . And so were starting to see it. I think that it is a good thing obviously. But in the background youve got other sort of potential shocks which, you know, could cause other disruptions of the business for example the law in california which may get codified into law. Cities like new york putting caps on. That may require kind of uber and lifts oig to raise prices. Which will kind of bite into their profitability potentially if it has a negative impact on ridership. But yeah, so far that market rationalization is playing out. So are these two stocks on sale these werent good ipos by most of the measures that questiwe to use. Uber opened up below the ipo price. But now given that they havent traded up huge, how do you think investors should think about what was all of that stink around the actual ipos the way we think about it, both of the stocks are in the penalty box until they prove through multiple earnings periods, you could be two quarter, flee, four, whatever it takes, but they are in the penalty box and you wont see multiples expand until we start getting, you know, again some clear visibility into that cash flow or ebitda or whatever you define the bottom line but around four times revenue, they are not super cheap particularly considering how old they have been and how rate of growth is decelerating. So if you are long term, you want to take a look. Shorter term player, probably not the place to be. So maybe not sell, maybe scratch and dent yousef, tom, thanks. Thank you still to come on todays triple digit rally, well talk about that, but first rick santelli, what are you watching . You know, i was watching yields firm up quite nice. 30 year bonds yields are dropping back. Eaerhediscuss that aft t brk. In the last year, there were three victims of cybercrime every second. When a criminal has your personal information, they can do all sorts of things in your name. Criminals can use ransomware, spyware, or malware to gain access to information like your name, your birthday, and even your Social Security number. [announcer] thats why norton and lifelock are now part of one company, providing an all in one membership for your cyber safety that gives you identify theft protection, device security, a vpn for online privacy, and more. And if you have an Identity Theft problem, well work to fix it with our Million Dollar protection package. There are new Cyber Threats out there everyday, so protecting yourself isnt a one time job, its an ongoing need. Now is the time to make sure that you have the right plan in place. Dont wait. [announcer] norton 360 with lifelock. Use promo code get25 to save 25 off your first year and get a free shredder with annual membership. Call now to start your membership or visit lifelock. Com tv heesh is what re is what is. What is more at risk, bonds or stocks and ahead of blockbuster retail earnings, so our Investment Committee will given you the names to own and avoid and with a changing statement from the business round table might mean to your money well tell you at noon a little more than ten away. Look forward to seeing you top of the hour. Scott, well see you then gains are holding unup 285 lets get to rick. And the entire yield curve of course is under a microscope like never before. Global debt is exploding the negative totals of securities in the red globally continues to grow. And issuance is going to grow. Maybe even with a new player, germany. So if we go to the board, global slowing is the big header, but there is a lot of things that contribute to that and this is in no particular order i think lack of structure al reforms is mostly aimed at what is going on in europe, but everybody is involved in that game of lack of structure reforms in the u. S. Just look at some of the programs and things that we do that we havent adjusted the fact that we have debt growing at historic rates globally trade, we all know trade this is the one that everybody hears about the most no doubt. Brexit, this is just my opinion, i think that that is the y2k of the financial global industry. Well have to wait and see i think that the worst thin about brexit is officials elected to do a job have failed to do so and i think that is the lesson to be learned and i think as we go through the process with boris johnson, i think that will be an ever growing aspect of this that will be discussed. Germany is huge. And it is huge for a number of reasons. Whether it is the most recent quarter being down one tenth or the quarter before that up one tenth, were splitting hairs the reality is it is slowing and its major industry autos is rife with change and battery, the fat Angela Merkel is a big pusher of that electricity is so expensive, maybe alternatives arent ready. But no matter how you slice it, talking about spending money and creating stimulus is a big deal right now and finally maybe the last one is the most important, Central Bank Policies globally just dont seem to be doing the job. And listen, this abbreviated chart of 30 year bonds, i took out the middle section i want you to see in july of 2016, we made a bottom of 2010 and then fast forward basically, twhafs, a we what was it, a week and a half ago, down to 197 and 345 was november of 18. 197 was august 148 basis points in nine months. The point is that if we hold these levels on the first test which happens to be today, meaning we broke to 19, were coming back for the kiss back. It already backed off exactly that level it needs to close through it on the up side to really at least in my mind, give you a chance to see higher rates, and the faster that dynamic happens, the better, and if it fails and goes back towards 2 , most likely were going to see more buying and another run at 197 carl, back to you. Ill take it, rick. Rick santelli, thank you got higher treasury yields, higher stocks with all the major averages up 1 or greater. Lots of green across that board as you can see right there s p, every sector is higher. Shve got veteran trader art ca joining us on this mornings rally next stay with us snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu i felt completely helpless. Trashed online. My entire career and business were in jeopardy. I called reputation defender. They were able to restore my good name. If you are under attack, i recommend calling reputation defender. Vo theres more negativity online than ever. Reputation defender ensures that when people check you out, theyll find more of the truth, not trash. If you have search results that are wrong or unfair, visit reputationdefender. Com or call 18778668555. How you watch it does too. Tv just keeps getting better. This is xfinity x1. Featuring the Emmy Awardwinning voice remote. Streaming Services Without changing passwords and input. Live sports with realtime stats and scores. Access to the most 4k content. And your movies and shows to go. The best tv experience is the best tv value. Xfinity x1. Simple. Easy. Awesome. Xfinity. The future of awesome. Dow is up 250. We need another, oh, 180 or so to get back to levels before that 800 point selloff in the middle of last week. For the time being, though, back to 2923, well check in with art cashin when were back in less than three minutes welcome back to squawk alley, the dow is up triple digits, 271 points, all the major averages are up more than 1 lets bring in ubs director of floor operations, art cashin great to have you. Good to be here. One of the things we talked about over the weekend, at least from a technical standpoint, it felt like the selling we saw the middle of last week was somewhat washed out is that still your sense and is that why were seeing this bounce today. A couple of things, on the news front, the story about germany possibly borrowing 50 billion and starting a stimulus program, Chinas Central Bank setting up for potentially easier to borrow money, the president theoretically rethinking the tariffs on the apple products, and a little bit of strength in oil, so all of that came together on the other hand, i would point out to you that when we had that washout, stocks were going down the same way yields were going down, and when yields stopped going down, stocks bounced it may just be a simple coincidence, but i think not and i think if yields roll over and start flipping again, we may see renewed pressure on stocks. What are the levels youre watching. You got to weigh down you really have to think about going back to retesting the lows youre talking 28, 22. And back down below 26,000 so for now, youre in a kind of mid level, never never land, i would watch if they break 26,000 and that would be a bit of a problem. I think were still in the mode of reacting to global trade related headlines. There was a while when it seemed like that sort of stuff wasnt having much of an impact maybe its just a quiet day. Whats your sense. I think thats a good assessment i think that it looked like we were becoming to some of that. I think not anymore. I think people began to rivet in on the slow down in china and the potential of a global slow down with it, and then you put in germany, so youve got all of that stuff going on. This is an extension of the relief rally, and a decent reprieve friday was very broad and good this is not quite as broad, but well see. So i would watch both yields and i would watch maybe 26,000 on the dow. The president comes out this morning and asks for 100 basis points and maybe quantitative easing, knowing powell is speaking in four days. How does powell do anything approaching that and not look like it caved. Thats the problem. The president is slightly selfdefeating putting powell in a position where its tough to move well learn friday its going to be a very big speech. Yeah, art cashin, thank you so much for joining us today taking a look at the markets right now, dow is up 257 points, back above 26,000, the s p is up 1. 2 , above 2,900, 2924 is the level. The nasdaq is out performer up 1 1 2 as communications in tech stocks lead this rally on this monday morning yeah, nvidia doing quite well up 6 , positive news around things they are doing around graphic chips, the chips have been a little volatile, but micron is up about 3 1 2 . Thats a good sign for people in that trade. And watch retailers as were going to get a bunch of earnings over the next few days lets get to the judge. Carl, thanks, im scott wapner, front and center, the current state of stocks, the big week for your money underway its 12 noon, this is the Halftime Report. Stocks rallying and yields rising was the selloff overdone. A crucial week for retail. Earnings from home depot, target and more will the Great American consumer keep spending . And a bullish new call on a major apple supplier its our call of the day this committee is ready to go. The Halftime Report starts right now. Welcome, good to have you with us on this