Great to have you with us ahead of the Labor Day Weekend the final trading day of august, another volatile one, between gains and losses, the dow had been higher earlier in the session, but right now we are just barely higher by 14 points, s p and nasdaq has turned negative this is the second losing month of 2019. Investors got more defensive, utilities, real estate, consumer staples, the only sect aro finances down 5 , energy down eight. So the question going into september is do you stick with what is working . And implicit in that question is, do you remain defensive going into what has historically been a very tough month for the markets . It has been a tough month you look at it and say its probably going to be volume tiff were going to see more responses on trade from china. What im doing is, yeah, probably more defensive in my style, which is to look for Companies Generating good cash flows. How do do i know theyre returning it to me dividends, maybe theyre increasing dividends, but in particular share buybacks. Theres a few companies that have talking about stocks like citigroup, gold manning sax, marathon tipetroleum. And particularly some of those names are buying back below book value, which is immediately accretive. So bottom line, yes, defensive, looking for the Companies Buying babb shares. So many unknown as in the month of september we have tariffs going in on 125 billion worth of chinese goods ecb meeting, a fed meeting later this month, on top of just whatever is happening in the markets. Whats your strategy here . Well, i think first of all, theres a chance that september ends up being quieter. I think people might return to their seats. I think individual thought might come back in, and we wont have as much program trading, but if youre nervous about that and dont want to miss out on those ten days of the market, and you might need income, there are a lot of really Great Companies trading cheaply, like at t, enter price products, ibm, chevron, duke energy these are company that is have paid dividends for dozens of years, sometimes 100 years or more even throughout 2008, 2009 are trading at a discount significant to the market multiple so hide out, stay invested, collect . Income, you get to stay in there. Joe i think if you look at the month of august, i believe that the portfolio diversion iskt story taught a valuable lesson to all investors, even the equity investor. You look at it, the s p were going to bleed off about 2 , but when youre looking at reits, both higher by 3 , munis up, even highyield was up so you extrapolate from that the portfolio diverse i was, and the look at the equity, how did you do from the last year when you have overattraction from the faang names, and they havent even returned to above their highs. So i agree with what jim and jenny are saying i think on the key side under a slant toward quality, lower beta type of names. I dont know if you want to look at the market and say i want value. Value didnt really work well this month energy and financials declined significantly. So i think it goes back to defining in this environment what have been the leaders i think in september, leaders continue to lead, lag guards continue to lag. Does that mean that tech, josh brown, doesnt really have as much of a place in your portfolio . If were looking at tech having the worst august since 2015, along with finances and industrials and materials, and you want to stick with what is working thats correct implies not tech impltsd well, whats working over what time frayed . If we pulled it back and look at that time it over 36 months, you would say i really only want to own tech and consumers discretionary, so i think this arbitrary turning over the calendar is actually not significant for professionals managing money i want to build on something joe said, which i think is the biggest takeaway i decided sometimes after memorial day that i was not going to be one of the people running around with mire hair on fire every time a president sent out a tweet or Chinese Media put out a counterpoint. I want im going to have a good summer, read some books, focus on me. Im not flipping open my laptop to swing cash back and forth heres what happened if you chose to ignore all the histrionics take a look at a 60 40 portfolio, van guard, total market, stock market, and b d, by the way, this portfolio is essential free, a couple basis points. If you that youre up 0. 68 . Thats how you go into labor day. All of the tension, the screaming and yelling and vix spikes, et cetera, et cetera you didnt make a ton of money, but youre up, youre fine it doesnt matter. I think thats been a really good posture to have when we now have elected leaders who can swing the dow jones by 600, 700 points on the tweet. If thats the environment were in, the answer is not let me guess when and what the next tweet is the answer is stays diversified. Do you have that port for the i dont going through the independence of the year yes a year ago at this time and i looked back, we were going into labor day 2018, and we the royal we, we were absolutely certain that rates were going nowhere but higher jamie dimon said look out. Its a year later, now were say treasury is going to zero percent, if not negative, to fof europe we are almost as sure about that outcome combined with more fed funds rate cuts as a year ago about the exact opposite, the fed has to raise rates, wage growth, near the those extremes probably plays out so you make not look like a genius every day, but overall the risks and rewards will balance out this is a rational course of action in a irrational period of time so i gra he with part of josh and disagree with the other part i disagree on the 60 40 its hard to think about putting any money in bonds, and the inflow the last month, i dont know who is buying bonds i certainly wouldnt want to the part that i totally agree with you on is in a nutshell what youre saying, is control yourself, use discipline, stay focused, tune out the noise. I think especially in this percent where its so much noise to me its almost how i felt in 2015 when i was waking up every morning and checking the oil markets. The best thing you can do for your portfolio is focus on long term and keep control of yourself and dont be good et in and out. You know that there are european bond funds where a year ago people would have said how can you buy european bond funds, that are up 30 to 50 year to date, on european sovereign bonds that nobody in a million years said these are these are a buy. Capital appreciation in european bond funds has screamed to the up side. You can say you lie it or ecb is manipulating it, you can do the whole dance, but you still have made money in that asset class. 30 to 50 . Specific european bonds. Wait wait, are you talking about greek bonds . All over the continent. German bonds . Bunds didnt have that far to go. Youre not getting 30 to 50 on unless youre not adjusted for currency, greek bonds trade as a lower nominal yield you can say it shouldnt be that way. Josh, josh, im going to call negative yields what they should be called. Simper augustus that was the name of the most expensive tulip. Thats what we have going on anybody buying bonds and negative yields, anybody doing that is saying im going to selled bonds to a greater fool than me. Not a game im ever going to play i think the 60 40 planning is a good one i would make a slight modification, the bonds, why not put it in cash i agree. The bonds rate is 2 . Its one of the highest rates in the world. Fine, so buy a money market and lock up im not disagreeing bonds are a spectrum of different maturities. This conversation is kind of nuts im talking to four people who manage money who pick stocks for a living, who guide people in choosing their portfolios, and say i do 40 march in cash. 40 in catch when is the last time you said that, jim . Temples bonds are definitely more than cash. Theyre not yield can you go bond ladders youre not going to get hey, josh, i know something about Municipal Bonds. I know you know quite a bit im making the point cash is not the only way to earn a yield 2 . And can you joe terranova, what are your thoughts he, mil how are you . Were talking about 40 exposure to bonds and classifies it as government bonds thats incorrect lets talk about corporate bonds. Highyield . So if you think about u. S. Equities in the financial industry, the source of opportunity as an investor has been on the debt side verse the equity side. We keep talking about financial equities, a lousy place to be, muted returns. The did i of Financial Institutions has been the place to be. So lets take the conversation and move it in the right place corporate conditions are in a strong place we are not going to see with lower private sector borrowing costs that suspect we suspect theyre going to continue to fall youre not going to see a growth in defaults. If you have lenders that are willing to extent maturities, youre okay on the default side. So youre going to have a lot of debt offerings, for s p 500 companies. I would argue you want to take advantage of that, because youre utilizing it as a diversification tool government bonds, thats pasch much the equation that i dont think belongs in a conversation about 40 exposure in your portfolio. Joe, i just do not want 2. 5 tenyear corporate debt in a world where i with go by the dvy, the ishares dividend at 3. 5 . Hold on, heres my point. No, no, lets say you bought Interest Rates are too low. Im not buying it. Im not selling you bonds you are. 40 bonds. Oy vay. Jim, if you built a portfolio geared toward fixed income, but you incorporated things, to joes point like investment grade, highyield cold debt. If you incorporate Municipal Bonds and then threw in thinned like preferreds, have you seen a chart every the preferred Stock University 30 , 40 its an incredible diversifier it has some equitylike component to it, but youre getting yield there, people are chasing it higher after you bought it. Final word to jenny here. Heres the thing, as your average client, you think, my average client, they want that 40 for the income, for the safety theyre not looking that happens. That is not your point. Youre using it as ballast, dry pow, so when theres an even very like we had in september, you have a. Use cash instead. I agree you dont get enough yield pickup to go out ten years you have a flat yield curve. Cmon, joe. If you built a portfolio youve done incredibly well so should you abandon every fixed income im living in the Market Conditions of today. Youre right, a year ago, youre right, that was absolutely the right call when jamie dimon was calling for 4. 5. Josh, youre absolutely right. So today is the wrong call . At is. 45 on the tenyear . Can they not . Why do you need is it impossible . Who cares if youre long it matters. Certainly low to like ridiculously low why dont we go plaid, to quote spaceballs. Commodity trader sitting on the desk sugar and a penny . Thats what youre investing for . Why not buy bitcoins and bury them in your backyard . If youre looking at a port follow to jenny ace point youre not getting enough currents yield out of a conservative we all agree on this premise, but what if were saying were looking for total return on this portfolio, which might mean when bills come due for a retiree, they have to sell down in equity or sell down some bonds rather than pull that income out, that is what Financial Advisers in this country are doing for millions of people in retirement or close every day. We have no choice, so i appreciate the world that you want to live in where yields are being paying you for the real risks you are taking we just dont live in that world today. I dont know that we will. We got to move on. I want to talk about individual winners in mott month of augusts individual stocks. Yields actually. Yield curve. Home depot gaining 7 , veriz verizon, merck cocacola do you stick with these . Jim, boeing, you owned this, they just pushed babb the return of the 737 so united did that. Im sorry, yes. Thats an important distinction. Boeing as of last week is still defending early in the Fourth Quarter theyll be flaying the 737 max. Honestly that sounds a business aggressive, but management keeps say this i have to believe that theyre saying that, because they have some inside knowledge of this. If not, they are setting themselves up for a world of trouble in terms of shoulders lawsuit it gets back in there in the Fourth Quarter, the stock goes back to 400. If it doesant if its late Fourth Quarter, fine if were talking we dont know, maybe the First Quarter of 2020, look out below. Jennie, in boeing no. Is it too risky its too expensive for me i agree. Ive always said i would look at it if it traded with a market multiple i dont think were going to get there. Lets go walmart joe, you got this one . Its interesting. When i look at the list, i see walmart up 4 , verizon up 5 a lot of the names i have in my equity portfolio are doing exactly what i wanted them to do whats been a chaotic environment. So we had the Federal Reserve meeting. We felt as though we had the all clear, and then the president gifted us with a bit of thursday afternoon august 1st messaging that the markets did not like. That followed a lot of chaotic communications back and forth. To have names like verizon in your portfolio, and be up 5 month to date. To have mcdonalds in your portfol portfolio, which i have, 4 up, walmart up 4 , i even offer the example we had a gentleman on from Goldman Sachs talking about the faan good s and technology, didnt mention microsoft once microsoft for the month of august is actually higher. So i think its a mindset where you want a quality focus in your equity portfolio i think thats the environment were in right now i think its the right environment, and i think it goes back to the beta exposure, you want to make sure year exposure is lower than it has been in the 12 months prior. But weve seen at least in the retailers a sort of weve seen pain overall for the sector, but the once doing well are sort of the discounters. That appeal to values and bargains. Thats a good point, but theres so many more losers than winners in the spate you can identify the winners you talk about dollar store, but also costco, target, walmart yow side of that, i dont think you touched the space, were going to talk about ultimata later o. But i mean its just another story where somebody with brickandmortar retail, the stock got ahead of itself, and its probably not going to get better retail is very, very tricky, only stay with the winners the retailer, named specifically have all figured out a way to keep that you are consumeers in a colloid loop, with omnichannel, with apps, with the types of with membership, these are the things that keep somebody continues to choose the store its very, very different for retailers to do that, so i agree with jim, i think its been a very tough place i want to pint to verizon. Im long the name. Verizon hit a high of 59 bucks last december. Its been bumping up against that level its clear resistance, look at a threeyear chart this is a stock that i think breaking 59 to the up side maybe because treasury yields go significantly lower, and people keep chasing these names, i dont know what the reason will be, but im going to tell you something, this set up, verizon above 59, even with a retest, that would be a clear and present breakout for a major league important company, and this is the type of stock similar to microsoft, people dont talk about t. People dont give it respect, people dont get excited about it, but it lox phenomenal technically its set up. You own verizon firms i also own home depot what i see collectively is one commonalty is these are all particularly wellrun businesses none were up in august, because the overall industry was up. They were all up on their own merits when i look at home depot i hate the broad brush statement that retail is horrible its not really true its just changing home depot is one of the case in points here. Its a phenomenal executer look at walmart, target, theyre crushing it, but theyre the next 20, 30 years. So i like the list by the way, all new time high for stor, this is one of the best charts, it continues to make new highs, this is the company, if you want exposure to consumers, but you dont want exposure to how a retailer does, this company is buying up their real state and leasing that spa space. This is the name that i think is better than almost. On the equity side, i think what i have to try to do is find the tailwind in each of the sectors, what is the tailwind in retail its the consumer is driven by the opportunity to Purchase Online s if you have that digital strategy, the Online Platform and youre able to communication it effectively and have your consumer interacting and purchasing online, youre doing oak the other thick is back to technology and some of the megatop technologies giving, i go back to Megacap Technology i think what will important now is Capital Allocation. If you look at the chaos the markets have endured in the month of a, alphabet and apple in the mig acap technology names, they have not seen the type of megacap technologies have i think the focus is because of the Capital Allocation, a new one on the part of alphabet, and continuing one on the part of apple. I think there is your tailwind. Alphabet up almost 4 in the week to your point, they have the flexibility to be way better at Capital Allocation than they have been. You have to think they have to be looking at microsoft, apple, what are these guys doing . Especially with the quarter they had. Yeah, they need to. Lets talk about the economy weighs on investors. Lets brings in Steve Liesman with a rapid update. Whats new youre talking about the consumer we had the Consumer Spend z spending, our squawk box when it happened. Up better than expected. That leads to a slight adjust upward to on gdp running at 2. 1 , which is, you know, better than sub2, which is a lot of people were focused on we have two more months of data to go. This is where our tracking forecast from the street are running right now. Lets look at who is where he the high side there raced up 0. 3, oxford at 2. 1 and deutsche bank, they have the bottom there, 1. 6. I want to it looks like the 2 economy to me when i fold in our estimate the difference between this and the previous economy, while theyve both been 2 for, this is true. Huge, huge. I want to point one thing out, 1. 1 in the Fourth Quarter just glares out at my. We had a terrible Holiday Shopping season last year. Historically horrible, was it horrible overall for the Fourth Quarter. Were one month left in the third quarter. Sentiment overall, particularly with regard to trade issues aint that great id like to see some improvement as we get into the Fourth Quarter. Im starting to get too close to the Holiday Season were talking about retail if we have another bad Holiday Season, youre going to see more swathing in that space. Im more interested in your discussion as far as i know, this weekend well have in barbecue, some beer maybe, and were going to get a bunch of tariffs you guys are all barbecue and beer does nobody care is it all cool no, what has happened, both on the part of the United States and chinese, they have fatigued investors so much with cant do it anymore i couldnt even tell you what actual tariffs we would be expecting this weekend, because theres been such. Its a little unclear and the other eastbound december 15th. Thats what maybe me think about it. Which is much more consumer theres some consumer goods in the september 1st, including some of the apple products like the wireless headphones, the watch, for instance, but the large part is september 15th. Nobody really starts thinking if youre a retailer you think about it ready, but the whole christmas idea, if you have this downdraft in ceo confidence along with Consumer Confidence going into the christmas selling season, it will be a really good time for those two countries to start to make nice. See you next friday for the jobs report. Im going to wait for the tariff on sunday . 50 basis points middle of september. So relieved i dont play tennis thank you steven. Heres whats coming up on Halftime Report. Announcer not so pretty, ultimat ulta with multiple down grades on the stock and our call of the day. Pete najarian is tracking the action in the options market. Plus the Investment Committee is ready to answer your questions to reach us, go to cnbc. Com halftime, or tweet us Halftime Report is back in two minutes. Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. [ slow dance music plays ] sfx record scratch music plays throughout [ watch me walk by Spencer Ludwig ] yo dj, can i put in a request . Dont have no sass about this im on my way im on my way cant take no class about this im on my way im on my like this this is a moment you plan for. To start your investment plan, find an advisor at massmutual. Com sfx [ mnemonic ] should always be working harder. Oney thats why, your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Welcome back here is your cnbc news update at this hour. British Prime Minister johnson warning that opposition to the brexit plan was weakening by giving the impress that Parliament May step in to block him. Im afraid that the more our friends and partners think at the back of their minds that brexit could be stop, that the uk could be kicked in by parliament, the less likely they are to give us the deal that we need opponents are asking the Nebraska Supreme Court to reconsider its ruling. That ruling upset state regulators decision. And jim laval, who escorted president kennedys assassin moments before he was fatally shot has diedty age of 89. He cease seen with his hand as jack ruby shot him in close range in 1963. That is the cnbc news update melissa, back to you. Thank you call of the day, shares of ulta plunging, and slashing outlook for the fiscal year. The disappointing results resulted in a number of joe, you had been in this you sold yes, i did. If i sound mo rorosei i had woku to a stock down 20 , happy birthday warren, i think hes 88 today. I understand if youre warren buffett, you say im long the stock, 28 higher than where it is this morning. I believe in the business, great, let me just buy more, but thats not really the way the world works, or at least my world. So down 28 , a name ive talked about on this show ive mentioned it because of genz, i talked about it having momentum ive said all the glowing and positive thing you could say about it you begin to read the details of the erpgs, you begin to look at analyst i stopped reading them, because it doesnt matter. Youre in a stock down 28 you get out of the stock thats the right thing to do for all those not in the stock, me selling it here, if you think thats the bottom, congratulations, go ahead and buy it i still think its a Quality Company. I still think over the long term it would be good, but influence of that matters there must be instances when you have a stock that goes down a lot. Its a Quality Company with a Good Management team, and you think this is something they can fix. These are broader trends that seem to be our control of ulta they said color cosmetics, a move towards skin care, away from fashion trends, you cant stop that. Listen, everyone thought that ulta would be a strong play because of instagram how do i know that the next move is people will stop i a retailer to be, its even simpler its a retailer. When youre down 20 , nothing is simple. It was a darling, up like 25 times over ten years, but those margins, that growth rate, theyre gone they have competition. It is a re tailer and not one of the winners anymore. Two things, first of all, joe, you harvestsed your losses no. Were not going out to dinner this weekend. But youre offsetting the gains. Still good i think its more than just a retailer its a very fashionbased fickle retailer. So is abercrombie fitch. But its not home depot and walmart. Its a retailer, but very specific to fashion trends we have no control over one thing that i think was interesting, estee is 458 asiapac. And they have more presence in the skincare aspect to your point, though, theyre retailer, and theyre basically saying there was a lot of innovation, and now its kind of died down as part of my im still using a liquid lip im playing along, but theyre saying theres been a deceleration and sales have now gone negative. I dont know where the bottom is im looking technically, the stock double bottomed, so if you were long and youre like, when does this torture end . Were very far away from where its bottomed previously i dont know that it ends just because it had a bad day today im with joe im not running in here. By the way, still traiting 18, 19 times earnings. Its not like what a bargain its still more than s p, with sales actually declining. More trades straight ahead in the blitz but first, a check on the s p 500 sectors, as we head to break. Halftime report is back right after this for farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice lettuce. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Are we supposed to dance . Boy bands without dancing are just ok. Get a better than just ok unlimited plan with spotify premium included on americas best network. Only from at t more for your thing. Thats our thing. Trades on four stocks making news today General Motors with the tariffs set to go in effect on sundays, President Trump is weighing if on gms presence saying we gave you a handout, maybe you should move jobs babb. The bailout that kept people employed, i dont want to talk about that that was ten years ago i dont know why he thinking this is going to get him votes in the heartland gm is one of the Better Companies in this country. Gm is just fine. Meantime tesla shares are higher on news that china will exempt tesla cars from its purchase tax josh well, look, when you get a positive headline on a name heavily as shorted as tesla, you would expect more than what were seeing today so we used the term fatigue in the last block i think theres a ton of fatigue on both sides on the tesla story. The stock does not appear to be as volatile as it used to be. Big lots posting a big earnings say at the can successfully navy gatt tariff headwinds. I think tariffs are the least of its problems. Retailers are lighting up my screen, but the challenge is, envisioning what the Companies Like ten years from now. I dont see a future for big lots as it is. Shares of campbell soup. I have a builtin childhood negative bias. You dont like tomato soup. I used to have to eat it all the time for the labels drive. Oh, yeah. I have a negative bias. The second bias is i think were a society that wants fresh options, better food we dont want things in a can. That being said, you have to respect this quarter, the potential is there that the stock can go to 50 to 5. You take the 33 consumers staple s p 500 companies, this one has the largest Short Interest, so significant Short Interest the goldfish, Pepperidge Farm snack upon unit was good, but i still have a negative buys. Its not his cup of noodles. That was good. Not really. Next up well answer your questions. You can reach us on cnbc. Com halftime or tweet us. Halftime report is back right after this whos dog is this . Its my special friend, antonio. His luxurious fur calms my nerves when im worried about moving into our new apartment. Why dont we just ask geico for help with renters insurance . I didnt know geico helps with renters insurance. Yeah, and we could save a bunch too. Antonio fetch computer antonio . Ill get it. Get to know geico and see how much you could save on renters insurance. Welcome back lots of Great Questions coming back in, first up, greg asks, how does the safety like royal dutch, bp, maybe even schlumberger i feel pretty good about them the supermajor integrated, which i own and the bps, i think you would have to see a major, major collapse in Energy Prices likes sub45 before you even want to have that conversation were just theyre safe, theyre fine. Next up, al from california wants to know what is up with allergan. We initially bought abbie, and part we like allergan, great products, i would own it i do own it. Next question is about beyond meat. Is it still overhave a valued. We go to josh, obviously. Its a food question, you want me to answer it. Are you going to grill . Its still overvalued guess what, that tells you absolutely nothing we did a couple block posts, it was 40 times sales when it came public at a 50 million valuation. That 40 times sales tells you absolutely nothing about the fact that it would one day be a trillion dollar company. So this is the type of situation where i think you focus on the growth, you focus on the valuation way later, and by the time the market does fixate on any of those valuation metrics, probably thats when you want to be out if they can keep putting up big growth numbers, i believe the momentum players will look way past it goes higher. If they can keep doing what theyve been doing and announcing deals, if youre short, its going to go up. Well said by a gentleman who has his own steak knife in a restaurant. I sure do finally jason in wonkers, what happened to mosaic . Same thing since 2015 its been a significant down trend. I know theres notes on the streets i read thinking 2020 there would be a turnaround. There has to be a turnaround but the firc names have been lowy if we could identify thanks for all the questions, you guys sent out there. Options traders are here Pete Najarian will join us, first kelly on the exchange. A market may not be on everybodys radar, and whether the good times can last. Plus something is happening in Global Real Estate that hasnt happen in seven years and tennis goes high tech. A look at how new technology is changing the game and the company is cashing in on it. That and mar on the exchange today. The Halftime Report is back right after this its going to be a week before they can get through on these roads shhh, sorry, i didnt catch that. I said ask how soon they can be here right now . Whats now . He says theyre surveying our property now theyre probably at the wrong house i dont see any hovering his name is hovering . Look up . 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I dont ever remember hearing that exel, very interesting to see this though because it jumped on our screens pretty early in the trade. Buying the october 22 strike calls. About 8,000 of those trading, mel. They were buying them starting in the 45cent range its interesting to see just because of the fact that i dont see this name very often i like what i see whats going on here. They actually have a pe. This isnt one of these pie in the sky type names they actually have some profits. So its a name that somebody seems to think has some movement in the very short term were talking about just over a month and a half or so im in these calls so im very, very excited about what might happen there and why are they buying these i got an update as well for you. We talked about fedex just on wednesday. Stock was trading about 150 at the time they were buying the september 162. 5 calls. They were paying a dollar 50 so youve got to be disciplined in this market, mel. We talk about it all the time. You and i have kicked around this idea of being volatile. I think you have to take whats in front of you. I trimmed almost all my position in fedex today off of that im going to hold onto a couple left but i just really like what were seeing out there but youve got to stay nimble. You can not be in this market expecting every day is going to continue to the upside speaking of staying nimble, pete, whats the best thing you ate at the state fair . I had the greatest thing. Its called a dilly dog, and its something thats so interesting to me because the dilly dog is a dill pickle, they hollow it out, they put a sausage in there, they batter it up and deep fry this thing it is the most outstanding thing i had. I felt like i had josh next to me when i was eating this thing because i swear to you, was so good and im thinking, josh, where are you, man, you ought to be with me. Dilly dogs for all. Pete, thank you, great to see you. Pete najarian minneapolis. Straight ahead your trades on a few of the earnings, slick slack and lululemon. Halftime is back in two. Ame. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom mad skills. Education to take your trading to the next level. Only with td ameritrade. Experience our most advanced safety technologyto on our full line vehicles. Now at the lexus golden opportunity sales event. Lease the 2019 es 350 for 379 a month for 36 months and well make your first month payment. Experience amazing. Lets get for some of the earnings on deck for next week slack is out lululemon on thursday. Slack, you own this one. Slack is not what youd call an earnings story per se i own the stock. Im actually hoping they,quote unquote, disappoint the street if it gets a two handle ill be buying more of it. This is a very longterm investment for me. I dont think the valuation when it came public was reasonable. Im dwlad its fallen. I hope it falls a little bit further. I love a reset of expectations on the first Earnings Report i dont dislike that so thats what i am looking for currently. Lets go to lululemon, joe. Online was up 60 on thursday thats obviously been the story. Calvin mcdonald has done just a fantastic job in transitioning things the concern here if there is any would be on Profit Margins there was a shift in terms of shipping from air freight to ground that has to do with some of the tariffs. If Profit Margins are not what the street expected, then you can expect a fallback. But i am in this stock is this the retailer you like no. Just because of price. And, look, you can lambase for that but we just had a conversation about ulta, and then hit an air pocket of considerable size. Im not saying thats whats going to happen with lululemon what i am saying is trades about 35 times earnings. Its up 50 on the year. If youre in this stock or youre thinking of buying it today, what are you looking for . What sort of outsized results are you looking for thats going to propel it even higher theres an asimmetic risk re s not to the upside final trades up next on the half. I like to make my life easy. romo mode. beep bang good luck with that one. Yes thats why i wear skechers slipons. Theyre effortless. Just slip them right on and off. Skechers slipons, with aircooled memory foam. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice lettuce. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Should always be working harder. Thats why, your cash automatically goes into a Money Market Fund when you open a new account. And fidelitys rate is higher than etrades, td ameritrades, even 10 times more than schwabs. Plus only fidelity has zero account fees and zero minimums for retail brokerage and retirement accounts. Just another reminder of the value youll only find at fidelity. Open an account today. Final trade time josh brown verizon jaechbl carmax 6 cash yield. Jim lebenthal al exxon overreacting to the downsi downside itll snap back next week. Usb its a name that ive been talking about listen, i know financials are not exciting, but thats what i call a dilly dog [ laughter ] and on that note, have a great Labor Day Weekend, everybody. That does if for us on the Halftime Report. Dont go anywhere. The exchange begins right now. Thanks, melissa hi, everybody. Here is whats ahead despite the tweets, the tariffs and the recession worries, the dow and s p are actually on space for their best weekly gains right now since june we will help you get your portfolio set up for september as august draws to a close plus, the president taking aim again at General Motors today tweeting about their made in chin kra strategy we will do a fact check and see why autos are being targeted yet again. We will look at one area of the market that is so popular right now that the pace of demand is break records. What it is and how you can play it if you should but we begin with todays markets and seema mody is here with those numbers the last trading day of the month