Its our call of the day. Investment committee is ready to go. Halftime report starts right now. It is great to have you with us to kick off the trading week. Joe, jim, steve, jenny, and adam. Stocks scratching out small gains here edging closer to new highs despite new concerns about the health of the Global Economy. And we begin with this seemingly calm market. It seems, folks like we are in a little bit of a news vacuum. We dont have trade talks for a couple of weeks and earnings season kicking off for a couple weeks. What do we do now . You seem skeptical, melissa. Shouldnt you not trust the calm i think the better question is for how long can you trust it to me and i have been consistent with this for a while, it all teeters on china. I dont think you should expect any news which is good for the markets right now. I dont think you should expect any news for two weeks because october 1 is the 70th anniversary of the communist party in china. I wasnt invited. Look, theyre not going to do anything with regards to trade talks between now and then. And thats fine for the markets. The markets can continue with this calm. By mid october, though, we are supposed to have meetings and earnings come out. For right now, you can glide through this. Its in october you have to start to worry. Im not that worried. I know a month ago when i was on, it was an apocalypse on the show. Markets basically at an alltime high total return. The question you have to ask yourself, is the news if it gets positive on china going to make the stock go up more than it goes down . Im looking at the world thinking trading at 17. 5 times 2020 numbers. The consensus numbers are too high so i shaved some off of that. What are you worried about you have a two percent buy back or you can buy a bunch of garbage that yields nothing. I think it is pretty good. There is an alternative, is what youre saying. I dont think there is a great alternative. If you want to be guaranteed to get nothing. Asymmetric risk to the upside. I agree. Nice to meet you. I actually feel like i typed up notes and you swiped them. I know you didnt. There is a lot of alternatives. I think there is a symmetric risk to the upside because you have nothing else to choose from. If you look at the major bond funds theyre yielding like 2. 2 , 2. 6 . Most investors are in there for their portfolio and income. Thats not sufficient. I think that puts a major floor on the equity market. Maybe its a little high 18 times with the two percent growth. I think they solved china it would get 20 times or higher. If they solve china if they get a better outcome. I dont think youre saying this. Youre going to see a full resolution certainly before the end of the year. Frankly without it then you have to worry about 2020 and whats this economy going to do without cap x starting to take the leadership. I think you have to look back before you can look forward and think about where the equities market peaked. If you look at the sgx which is the growth index, that peaked on july 26. That was before the fed gave you your 50 basis points of a cut. That was before the escalation between President Trump and the chinese. So we kind of peaked after earnings. And i think sitting where we are, i agree with what adam is saying, youre basically right back towards the highs after enduring that. I think now when you look forward, you have to utilize the word of liquidity. I think liquidity is incredibly important because the condition for global assets is completely different than the conditions we were faced with 12 months ago. So you can make that argument right now for broad Asset Classes beyond equities. And they are giving you the year to date performance. So i think the run way is clear for portfolios. I think were going to learn more on the equities story which i think points higher once we get to earnings. I think we have recovered incredible from where we were when we made that july 26 peak. So many positive people on this desk for a monday. Do you count yourselves among them yes, i do. Here is why, if for no other reason we dont have to be geniuses. Markets go up more than 86 of the time. Typically it is rarely a situation like 2008 or like the Great Recession going back to the late 20s and into the 1930s. So you always want to use a dip in the market as a buying opportunity, not to say in the first dip down, the first five percent you get in, but you do it more on a stock by stock basis rather than the market. So we are in preannouncement season right now in the quiet period two weeks before the quarter closes. So far its been benign, but its early yet. I think it will continue to be benign, because companies have gotten more, id say, aggressive about guiding intraquarter. So then you get to earnings. Right now, there is an appropriate amount of caution about slowing down. For the first time, we are seeing ceos that arent afraid to call out the trade agreement or lack of trade agreement as part of the reason for the slowing. Before they didnt want to anger the president. Now theyre saying we have to get real here. And the guidance will be cautious pending settlement of the trade dispute. So we have had some multiple expansion in the market. The question is will it take us higher i believe we are in trading range, maybe slightly higher than where the old highs are which are one or two percent from where we are. The bottom being down ten percent or so. We need to get higher is resolution on a trade agreement or seeing a Global Economy pick up. I dont think we see the latter without the former. We will not see the latter to a great extent either. If you will indulge me, about a year ago, we started getting preannouncements from various companies about the economy and what they are seeing in terms of the trade impact on their businesses. The trade war has continued. More tariffs have gone into place. The economy has slowed further. What will happen this quarter . Why will this quarter be different from last Third Quarter before the 20 selloff that we saw in the Fourth Quarter . 2008 the average yield was 2. 9 . The condition in terms of private sector borrowing costs are much lower. I dont think another 25 basis points of a cut from the Federal Reserve does anything to stimulate the economy. I get what everybody is doing outside of the u. S. Talk to me about liquidity and when you have securities that are maturing on the Federal Reserves Balance Sheet and they are no longer reinvesting them. Now they will give consideration to reinvesting them once again. Thats liquidity being entered into the market place. That is going to spread itself in a sea of assets. Its all about low rates. I agree with a lot of what joe said. A year ago, if you read the big houses outlooks for 2019, what they told you was i think four hikes from goldman. We will have a 3. 5 to 4 on the ten year. If you look back, we get about the same Unemployment Rate and about the same cpi and now we have three cuts instead of four hikes. Its about the perception of the rate path and the fed thats driven not only the rotation underneath but the entire market higher. I dont see why you want to fight that here. The other thing that desensitizes the markets to the news events is that i think investors are generally more knowledgeable about what goes on in the markets. And thats the part of the play book in addition to the low rates versus a year ago every year because youve had these declines. When the market trades down because of china once or twice, it recovers them and becomes more off a vshaped recovery than extended decliechblt so it just says the world goes on. Im not going to panic and sell. That continues. There is not going to be anymore news surprising us that germanys manufacturing a recession. Its old news. Whats the new news. Once you get new news such as a settlement trade, you will not get any in the market. Looking at it from the portfolio level, september is conference season. We have been at conferences. Each company that we have been talking to, they have figured out their work reenarounds. Thats done whereas going into earnings this time last year, people were still getting their sea legs about them and trying to figure out how to deal with it. This is what we have done and where we are and how we are dealing with the trade war. Iwant to point out somethin important, if we are comparing it to a year ago, you said stock markets are at an alltime high. Also, not that far away from where it was in january of 2018. Why am i bringing this up . In the meantime, companies have been earning like crazy. They have been returning capital to shareholders. Im most interestinged in the sr bybacks. Apple reduced share count by six percent. Citi group by about ten percent year over year. If that continues, that shows that the economy is healthy, profits are growing and profits are at a level where companies can invest in their businesses and still return capital to us. Is that allowed to happen make hay while the sun shines. Thats a black swan event. I have to say, i dont agree with this. I remember back in fall of 12 there was just a persistent mantra, romney wins market rips, obama wins, markets get killed. 2013, best ratio. So many other variables are at bay that i dont really want to assign market equals up politics in advance. Thats just been proven to be a tough one. I think there is a danger relying on that when you have a socialist coming to office. Obama you had incredibly liquid fed which is still going back there to support the market. Yes, you take a look 18 months in advance im not saying nobody is saying take action on it. The reality of the political message is that it is going to be negative for global assets if the individual is elected and she enacts the policies. So thats the question. Are these share buybacks in advance of a potential warren win . I dont think so. Adams got the right point here. Its way too early. In the primaries, remember each candidate leans far to their partys direction. The left gets left. When a nominee is elected everybody moves towards the center. Its way too early. And frankly the idea i think we would agree that buybacks are going to be made illegal. That really goes too far against the green of american capitalism. I think you have to take a look. If your question is are there things to be worried about like we are whistling past the grave yard. We havent seen the growth that we need to see. The market has been flat, the buybacks have driven Earnings Growth more so than actual fundamentals. While earnings have grown, profitability hasnt been that great. Youve shrunk the share base. The revenues do we deserve a Market Expansion market multiple expansion based upon the lack of growth and revenues i would say no. I dont think we are whistling past a grave yard. You can go through a list of things to panic about. I never said panic. I never said panic. I just think to me, the market is up 20 . You didnt list one negative factor. Its up 20 this year, but up 5. 5 last 12 months. Thats better than every other my point is what causes it on top is too much pcorporate hubris. Tons of cap x in r d, bloated invento inventory. Were far from that. I dont see that when i look at corporate earnings and read transcripts. I dont see a ton of excess. You are finding excess in the credit markets. In the debt markets. Without a doubt. You do have it there. You may not have it there from the S P Companies on the Conference Calls youre listening to. You have it from lots of other companies. The debt is out of control. We know rates are low. The Interest Rate portion under current net income is not that high versus history. Im not saying you wont worry about the debt in the future. If you are trying to call the top, you need more corporate excess to get more confident to make that call. Again, i say lets look back to try and understand the environment so we can look forward. Look back one year and think about where the s p was relative to where we are now somewhere around 50 to 75 handles lower except for alphabet, the only f. A. A. N. G. Since then to make a new high. Alphabet is the only one. The f. A. A. N. G. S have not participated. If i told you a year ago 50 to 75 lower on the s p, except for alphabet, the rest of the f. A. A. N. G. S will sit on the sideline. Think about also the u. S. Dollar continues to appreciate, but yet that has not been disruptive. You have to logically ask yourself what is the condition that is allowing equities to overcome these perceived head winds . There is something. Again, i think it goes back to liquidity. Value trade. The value rotation, still on yes, but it gets a heck of a lot better if you get a meaningful china trade deal, and it gets a lot worse if you dont. If you go into a recession next year then everybody will flock to wherever the Earnings Growth is going to be. Its not going to be energy. Its not going to be financials. I have to go with the rational outcome which is that a trade deal of some sort, not a grand deal but probably a compromise deal is reached by the end of the year because both sides have so much to lose. Im not that worried about china. What i am worried about and im trying to be helpful to viewers. The black swan, you were using that term, a nearer term is you get some geopolitical event, a military event like iran, that situation getting worse. There is no way of predicting that, folks. You have to go with the flow. Every time you get before you buy that, if you really got into a shooting war with the Iran Revolutionary guards, the stock market would go down meaningfully first. My point is not that anybody should sell right now. But if you really want to find something to worry about, you have to look at military action in the near term. Nothing else is going to upset things between now sdp then. Here is what is coming up on Halftime Report. State of the consumer. Staples among this quarters top performers. Well take a look at an upgrade and a downgrade for two big stocks in the space in todays call of the day. Keep your questions coming. Our oexperts are ready to answer them in ask halftime. You can reach out on cnbc. Com hfte alimor tweet us. Halftime report is back in two minutes. So servicenow put your workflows in the cloud, huh . Mmhm. Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. Hey, everybody. You know what my favorite part of Halftime Report is . Its when you send your questions in and we get to answer them. So please send us a question, cnbc. Com halftime. Go to cnbc. Com halftime or get us on twitter with the askhalftime. Lets get to seema mody for a market flash. Etfs that track india continue to rally up two percent today after gaining about six percent on friday following the indian governments comprehensive tax reform which lowers to as low as 15 for some companies. Its a move that could potentially incentivise more to move and improve earnings for indian businesses that are getting hurt and it does come ahead of a bilateral meeting between indias Prime Minister modi. Its worth noting the move comes during what has been a strong run for emerging markets more broadly. The eem that tracks the markets up. Thank you very much, seema mody. Thoughts on eem. I happened to be looking at indias gdp today. I do that for fun, as well. It was a monday morning. It was a little slow in the house. Its onefifth of chinas gdp with roughly the same population. If youre going to get excited about india, you have to ask why is it so held back there are cultural reasons. There are heavily bureaucratic regulatory and tax rooerns. Todays move is a very small move in righting the situation. If you want to be in emerging markets, fine. Just have india at the market weight. Dont overweight india. Thats a long way before that situation is anywhere near as good as chinas. Relating to jim personally . You had that look about you. I just dont see any reason to put any type of big money, maybe waiting to see how it works. Emerging markets with the uncertainty in the Global Economy and with the u. S. Still being the best market and most transparent market, with india having issues with the different governments around the country and the difficulty with which we can have the Prime Minister there enforce the regulations into each of the different essentially sovereigns around there, i think its a dangerous place to invest, not because you can lose a lot, i dont see it going anywhere. We got the big lift when he got elected. I dont know. Not for me. I like the u. S. We do u. S. Equities at 77 of all stocks that trade, 30 million or more are in the u. S. Lets move to kimberlyclark in the green pointing to improving growth revenue. It is our call of the day. Shares are up 1. 6 . I would love to take that. This is a stock approaching a fiveyear high. Its a stock that i think continues to move higher. Not a particularly large market cap, somewhere around 45 to 50 billion. It is the beneficiary of the emerging Market Global story. Let us not dismiss the premise that over the coming decades there will be trillions of dollars spent by international and emerging markets consumers to have the same things that we want here in the u. S. Wlrks it is the health care, transportation, the energy, technology, the emerging market consumer will have that. I think when you look at specific equity sectors, you can make the argument that this is the one allocation sectorwise that you want to make sure you are not too u. S. Specific. If you are too u. S. Specific in terms of the revenue, you fall into the clorox trap. So youre talking about 46 nonu. S. Revenue for kimberlyclark. I like that. Even better colgate, youre talking about over 70 nonu. S. Revenue exposure. That formula works for me. Overall, i want u. S. Revenue exposure. From a sector basis, i dont want to dismiss their ability . As part of the call, barclays downgraded clorox. It is a 20. 5 p. E its a huge problem for me y. Would love to own some of these consumer staple stocks, but i never can because the multiples are always too high. Even at the worst of the year last year in december, they were trading at like 19 times, 20 times. Even with the emerging markets exposure, this upgrade to Revenue Growth is still low single digit. I dont see how anyone justifies the valuations with that limited growth. When i look across the sector, i got nothing i can do there. Maybe thats more of a long only mind set. I think there is plenty of trading opportunity and you can gross up a lot in staples. We look for areas where we can be long one stock and short another. It looks like a trade on the price action where it has been down and people try to make a short term trade so that to me i think there is a lot to do in stape skplz i think they do well when rates are low. I think rates are probably going to stay low for the foreseeable future. You have to fight that bias to try to at least get gross exposure. And with my caveat being i plan to hold these things for three to five years. Prospect looming larger. The best way to play it right now. We have the edge straight ahead. A check on the s p 500 sectors. Rsu see the health care is the wot performing sector so far. Halftime report is back right after this. His . Had a coach in high school. Really helped me up my game. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Just to help you improve your skills. Boom mad skills. Education to take your trading to the next level. Only with td ameritrade. S doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back everybody. Im sue herera. Climate change is a big focus of todays United NationsGeneral Assembly meeting where teenage activist made an emotional plea. How dare you. You have stolen my dreams, my childhood with your empty words. We are in the beginning of a mass extinction and all you can talk about is money and fairytales of eternal economic growth. How dare you traveling by train from new york to d. C. Just gut a little bit faster. Today amtrak launched nonstop service between the two cities on week days. The trip will take just about two 1 2 hours and runs once daily. From trains to planes where if you want to save money on Holiday Travel now is the time to book your flight. Ism prices are in a sweet spot 28 to 60 days prior to the holiday with an average ticket 491. Thats the news update this hour. Sue, thank you. Sue herera. Lets turn our attention to the euro zone where weak manufacturing numbers are rallying markets today. Thats very true. Time for etf edge. The lousy manufacturing numbers reviving concerns about slowing growth. Flash manufacturing pmi, the lowest in over a decade. What does all this mean and how can you play it using etfs here to discuss that john, alford of salt financial. This has been going on for years now. For five years, europe has under performed the u. S. I think the european etf,s, some of the big european etfs are flat in the last five years. The s p 500 is up 50 essentially. Why this continual under performance which even today is happening . You can make an argument by region. If you look at the european markets, you have different political issues in each region. Certainly brexit has not helped build any confidence and consensus. When youre looking at europe, you have to look at if you believe there will be qe out. If so, then you need something thats currency. If not, then you want to look for broad regional or specific exposure. The bottom line is there economy is less dynamic than ours. In terms of how you play it, how about the edge currency idea. The trade that hedges out the currency effects. That makes some sense. Thats been outperforming all the other european etfs. We subscribed to that idea, swem. We happen to use all of europe, the entire index. Bottom line is that it is high quality stocks so it is complicate to the dgrw that we use in the u. S. I think you want to own some europe you love the word quality. What does that mean to you. What do you own in quality whats quality so basically in the iefa or efa is a lot of european banks, a lot of japanese banks, a lot of cyclicals. They tend to strip out a lot of the financials. Its the Higher Quality stocks within europe. Is there any chance that this is going to turn around anytime soon we have higher rates here that is a by product of the fact that we have a strong were, more dynamic economy. Is there any hope this will turn around in europe i dont see anything in the near future. If you continue to look at just q 4 alone, you still have brexit concerns. There is just way more uncertainty in a fragmented market. I think the u. S. Continues to be a much safer play. I think the catalyst is that now you actually have central bank you have the ecb. Thanks very much. Thank you for joining me. Check out our live online show. Well be joined by the head of u. S. Canada and latin america shares for his take on that space. Thanks, bob. Up next, could wework ceo be on his way out . The risk factors for investors. Halftime report is back in 30 seconds. Five have had the type of founder that can go all the way. Thats what youre hoping for and what you are trying to make happen. That was bill on our Halftime Report a couple weeks ago weighing on the impact of founder ceos. Weworks adam neumann saying soft bank may be in favor of removing nooueumann as ceo. Take a look at the risks. The big question here is is there even a wework without adam neumann . Without him is it just an overvalued real estate claplay. Pot on a plane, numerous tequila shots, unconventional hiring. Before that neumann grew wework into one of the most valuable in the world. Soft bank was the biggest believer of the vision pouring in more than 10 billion. Interesting benchmark. Benchmark was an early investor in wework. The firm has experience with founder risk and getting rid of it. It was just over two years ago that benchmark led the investor revolt that led to the departure at uber. Its not clear where the wework director stands. Take a look at weworks board. Over the next days or weeks, these people are going to be critical. We may learn more about where these directors loyalties lie and whether adam who is more powerful than any of them is willing to relinquish control. Thank you. There is a founder risk and Corporate Governance risk in allowing the founder ceos to have a supermajority. There is. I think you have to reference whether its besos or buffet or hastings or look at sales force. I think what will potentially be the name thats added to that which is jeff lawson, i think there is plenty of success stories. I do agree, the common denominator for those that i mentioned is the stability in the culture. You are creating a Work Environment that is stable. Youre creating a culture thats never going to be challenged. Just to think back to the troubles that uber had in years prior. I think one of the reasons why uber has struggled since going public in terms of Price Performance is they were too mature. Why were they too mature, because they didnt go to the Public Market soon enough. To me, culture is so important. I think all of the names emphasize that. I think you also have to separate a couple things. If there wasnt so much self dealing here, we wouldnt have heard about it. If uber and lyft didnt fail as ipos, we wouldnt be hearing about it. You heard about the culture stories before. Wouldnt be hearing what . Double class stock. Thats what im talking about. Google, we dont hear about it anymore. Nobody really talks about it. We heard about it with facebook with the privacy concerns initially. I would say its a much bigger problem. You can build in safe guards, for example, when there is dual classes of stock by saying no selfdealings. They do selfdealing then he is gone. I will tell you that doing a lot of work in governance, there are issues where there is no control. Take a look at the sale, an extra 100 million as people too out. The leading director there was his close friend for 30 years and investing along side others. So if you can talk about that, you have to talk about redoing everything. Are we debating whether we want i think after the fact when you say these companies were hiej in austin. To me when there is a new ceo, we are not involved for six to 12 months. Five out of ten i think he said. After being a publicly traded company. Any new ceo i kick it out. To me, its volatility without commensurate alpha. This five out of ten is perfect. Half the time it is good, half the time it is bad. You dont want it unchecked. You need governance. A lot of these guys are creative. At some point you have to have somebody who is independently going to take a look. Nobody would disagree with that. There are also 3,500 other stocks to own. No private Equity Investor wants weworks without knowing the situation that existed there. And so dont come crying to the markets saying this isnt right. You got what you paid for. There was no secret there. Move on. As far as us, we dont have to invest in it. Thats why it is not coming. Generally, where we are in this Economic Cycle and in this bull market is that the low hanging fruit has been plucked as far as im concerned in terms of Earnings Growth and business models. Were late in the cycle. What you see coming to the market in the ipo are a lot of things that are losing money and that is a much bigger problem is that they are losing money. Probably with where we are in the cycle has very little chance of making money before the next down turn. It gets back to the desperation to find return. Were so desperate that were willing to take the risk. Reach out to us at cnbc. Com halftime. Option bulls betting on semis. At nt. Test trades. Thsex Halftime Report is back right after this. About Investment Decisions . Rigorous fundamental research. With Portfolio Managers focused on the long term. Who look beyond the spreadsheets to understand companies, from breakroom to boardroom. Who know the only way to get a 360 view is to go around the world to get it. Can i rely on deep research to help make quality Investment Decisions . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch tell him we need this merger. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. Welcome back to Halftime Report. Amd shares have more than doubled. Option traders say there is more upside ahead. Pete joins us from minneapolis. Take a look at amd. We know this has been a great stock up like 64 i believe year to date. In the last month or so, it has been very choppy been tween 34 and 29 a share. Today trading around 30. 30, we saw massive buying stepping in buying this weeks expiring. Friday they expire, the 27th theyre buying the 32 strike calls. They bought 35,000 of them early on. That number just continues to build. We are seeing buying continuing to go there. These are a 15 to a 20 kent option when they began tlmpt is massive buying. People expecting a move. If we get that kind of a move this week, its going to be phenomenal. Either way, risk reward. Salesforce. Com. We love this name. It has not been very, very productive lately. As a matter of fact, it recently had dropped underneath 140. It is back up. Today it was trading around 153. 50. We saw huge buying going into october. A little bit more time, giving yourself a month. I immediately jumped on these. The october 170s. They bought 8,000 for approximately 35 cents. I love this risk reward that we are seeing right now. I had to jump in there. I will be into those for about a month. Its interesting because at some point you wonder when mark gets this stock up and going once again. Its been as high as 166 not that long ago. We will see if this can actually perform. Great to see you. See you in person soon. Traders here answering your questions. Danny in boston wants to know the prognosis on cisco short and long term . Cisco. I think both short and long term its a good buy. In the short term its down about 14 because they gave conservative guidance. On the longer term you have it switching from a hardware business to Software Subscription business. As they re grow from multiple of ten times i think you have a significant. This next question is for adam. Energy etfs, hold, buy or sell i guess the change is about 80 correlated to the change. Oil has been pretty stable. Probably it is average or above average. I dont see a reason to be too negative there. Pretty optimistic. Steven in new york asks should i buy starbucks or lucken coffee i am more partial to starbucks. I think it is far more likely that starbucks makes more inroads in china than luckin in the rest of the world. Starbucks is a much bigger company. Joe, this one is for you. David in new jersey says ulta is holding 225. I dont understand why david wants to hurt me like that. Complete misery, one of my worst trades. Look at the chart the other way. It has not been able to get back into the gap from the significant gap lower after earnings. And there has not been a proper explanation as why such a significant miss. Would you recommend buying data dog which is last weeks ipos the stock is agreegregiously overvalued. I think it is the second highest valued Cloud Analytics stock in the market. First quarter comes in and they do well, the momentum players will keep by pbuying it. If it doesnt, then look out below. It is in its infancy in the Public Market trading about 26 times to revenue. Its just not my kind of thing. You as a dog lover would still buy a dog. Do you like dow dogs . You like those . I am a big its a whole other conversation. We have a lot more trades straight ahead. No dogs there. Halftime report returns in two minutes. When i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. First up, lyft, reiterated buy, firms calling concerns with california wage laws overblown jim . I dont think those concerns are overblown but those arent the concerns i have. The concerns i have is that theres no profitability for this company for maybe the next four years this is not for me no reason to buy it. Lululemon is higher with an overweight rating saying theres opportunity in the companys mens and international divisions. Joe owns this one. I do. Pete najarian has owned it for quite some time. They have positive momentum both technically and fundamentally. Above 200 i think is an easy trajectory with them facebook shares are under pressure after snap reported information as part of a broader antitrust investigation th they supposedly kept a dossier jenny . I think theres room out there for snap and fabcebook we own facebook. Maybe snap is jealous but we own facebook because its profitable and cheap. Look at all the Times Facebook has copied with snap has done nobody doesnt go to apple because they copy samsung. The accelerated streaming i think its going to be challenged last quarter wasnt a great quarter and now you have competition coming on. Disney is the big one to be worried about. Amazon has been out there. But every Media Company is going to have an online streaming offering thats why its so unsettling to own netflix now. Theyre a winner on price and, one of the reasons i used to like the stock is they were able to raise price at will and they have done that i think now when you have competitors lower, youre not going to be able to do it as often. Im cautious on it i think its okay here i think the launch of apple tv is going to be disappointing and disney has a very defined niche but they can also take some viewers from netflix okay. We got your final trade straight ahead on the Halftime Report. Servicenow put our workflows in the cloud. This changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. [upbeat action music] pilot were going to be on the tarmac for another 45 minutes or so. Welcome back to the Halftime Report. Lets get some final thoughts from adam and jenny. Both of you are watching the Retail Sector doing nicely today. Jenny . We own roth and home depot. We look as those as not at that as not terribly sensitive to the internet but went to the goldman conference, tried to get a lay of the land, understood how they are completely disrupting this space. But there is going to be value in macys nordstroms, kohls. I dont know which one to buy yes. One of those is not going to fail when they dont fail, theres a lot of up side theres a lot between here and there, though, jenny a lot but its interesting, when theyre that cheap and that little debt, we saw a company that bought the lord taylor brand, as you look forward ten years and think of those combinations, theres something there. I dont know what it is yet but i know theres value macys is as cheap now as it was when the stock price was doubled. Stock price has come down doesnt connote cheapness. I dont own it. Im looking. You want to know why the market has been so resilient, the u. S. Consumer hung in pretty well some of the big boxes look good. I think good news will be for the economy and the consumer, it will be good for the stock market i think relatively bad news, the fed is there and will act, too good is good, bad is good and i think were okay for the next few months all is good all is good all is well . All is well i went to Public School would macys be attractive at some point the thing about macys thats distinctive versus the others is they real estate they have real estate someone out there is going to be the right way to buy it i think jennys putting it right. Shes saying its worth a look but not pulling the trigger any time soon. If you get a Fourth QuarterHoliday Season like last Fourth Quarter, some names will be in trouble and macys might be one of them. I think its too early and thats what jennys saying weve got the final trades for you. Joe, kick it off for us. Chipotle. Its not be afraid to buy it here, pressing toward alltime highs. I will take a small position later this afternoon after the viewers do go and get in but i dont think you look at this pe is 97 i dont think youre afraid of the chart here follow the momentum higher i love the burrito. Im going to go with one of your names earlier, alphabet. It got a great chart, nice valuation. I think this is an easy one. Jenny century link. Last year it was 5 g, 5 g, yield, huge beneficiary. Adam. Ill pass to weis, ill go last united rental is what adam was going to say, with whihich m portfolio. I will just say i like the stock market here. Thats it for halftime. The exchange starts right now. Welcome to the exchange right now. Im kelly evans. Lets go over to steve for the headlines. James bullard warning a sharp sharperthanexpected slowdown may be possible. Bullard is speaking in illinois. He is a voter this year. He dissented at the last meeting where the fed cut by 25 base points, he wanted a cut by 50 base point