New product. Should you buy into this run analysts getting more bearish on netflix. The Investment Committee is ready to go. Halftime report starts right now. Sounds like a good show good to have you with us on this wednesday. Your Investment Committee. Mr. Joe, john and pete and michael farr, ceo of farr, miller and washington. Maybe you guys got out at wilmington together. Your main headline china reportedly open to a partial u. S. Trade deal despite the fact that this headlines been out there for about 18 months, stocks are marching higher on the news the dow up triple digits first gain in three days up 172 i say that a little tongue and cheek. Jobecause you know what i mean china has said theyve been open to a partial deal for a long time i dont know why the market is reacting on the news other than maybe it came from china thats exactly why. Because it came from china instead of the president tweeting about it. Thats one of the big positives there. And of course, we had the fed yesterday that announced qe 4 is coming our way and when youve got qe 4 coming, you know dont fight the fed i think anybody who was into that big sell off yesterday, e kudos to you for catching it, folks, but if you didnt get out of that short position, youre not doing so well. We were told yesterday by mr. Powell that while this is definitely quantitative easing, whatever you do, dont call it that because thats what it is even though it is. Isnt that great . That made it really clear for everybody. The fed is going to be there and do more. All that you need to know. I got your back got your market back if they can actually because you know allaire yan wrote the feds kind of pushing on a string as are a lot of other Central Banks. What businesses are going to take action because they can borrow at a point and a half is that really going to create Economic Activity . He said we needed a coordinated fiscal policy effort i think the Treasury Department needs to Pay Attention i think jon hits on the important note, that is the fed. The liquidity. We had chris sat right here on with you and i talked ab the need for liquidity. The end of the year. Big five banks have to have that capital on their Balance Sheets so theyre going to create the liquidity trap if it looks like 2014 all over, you have not a hostile fed, but a friendly fed that is giving ului quidty. Do you remember that now infamous Steven Mnuchin letter about a year ago where he was like i called the bank ceos and everything is fine and everybody woke up and goes why is he calling the bank ceos . Whats wrong when i saw the xhepts, my first thought was why do they need to reassure us about liquidity. They have to do that every year as long as these Big Five Banks are going to be required to keep the amount of capital o their Balance Sheets they are being required because of the regulations. The condition is going to be with us every year but at least this year, lets not use it as an excuse because the federal reserve, jons right call it whatever you want. Whatever number you want to assign to it its liquidity thats being added to the system and its good for risk assets it is, ive got to push back on calling it qe i actually, i dont think thats a fair representation and i think our chief economist calls it, he made a very good analogy the other day. The economy is an engine right . And it needs oil or liquidity to keep it moving and as gasoline. As that engine grows, you need more liquidity. So qe and the Balance Sheet expansion was an experiment on the way up and down in terms of tightening and reducing that Balance Sheet ch they have to right size it and get it to more of a normal growth level so theyre expanding, but its part of the normal growth of the money supply and the economic at this point then we should get luke out here by the way. Doesnt that imply if youve got a right size it that you were wrong size d at some point . Well i think what weve heard from the fed is that it, i mean again, its part of their, they dont call it an experiment, but its part of kind of getting that equation right. And so they knew that at some point, theyd have to expand the Balance Sheet back to not qe again because its important what duration, what securities theyre buying this is more like adding that norm al liquidity keep. Weve broken down the engine. I disagree so let me jump in. Disagree with me and i disagree with the whole thing. Yesterday, we were up and we lost how many points did we lose and it didnt happen when the fed was talking. When when we started to hear about visa rerestriction, investment and the chinese coming after us. Thats when we went down 90 minutes later, were 250 points lower than we were. So what have we recovered today . Well, the chinese say they want to do some trade theres going to be something going up it will be b some kind of a deal thats why the markets are up today. Thats why we sold off yesterday. The fed was already out there. We already had heard from powell the market was here. I still this is 80 about the trade war. On the day that b somebody in china apparently said theyre willing to do maybe a partial deal kind of, they ban all nba licensing. Kill all streaming for the nba. Very much like we are tariffs on everything, right and take a look at volatility. What happened to the volatility yesterday. You cant sit there and say were closer now to a trade deal than we were 24 hours ago . Im not saying that the markets saying that because of the fact of what they heard from the chinese so the market is reacting. T the usual headline reaction. Markets cheering that it hasnt blown up after what could be seen as a severe escalation and tension. Were not in a flight going home i agree the markets going to continue to trade on the trade headlines and i would caution against doing that i think trying to position around these is like playing hot potato with a grenade. As usual, youre exactly right. During worldwide change, fine show by the way, we saw futures go up 50 this morning. Im not saying the markets arent moving on the headline, pete what im saying is should they be moving on the headlines im not sure whats new in there. I dont think were getting that much new. Again, its the fact that it hasnt blown up at this point. But i think that wh what important at this point is getting some of those tariffs to start coming off and what do you do with this weve been neutral equities for a while. Reduced risk in may and were kind of being patient. What does that mean that means we took our equities from an overweight for several yes to neutral, which was f a big step to us so we have the same weight in eck quities as the benchmark ana this point, you have to just wait you have to be patient its not that satisfying to be hanging out in the middle, but thats probably the best thing to do and theres areas in the market that you could be taking opportunities. Whether its within more of those protectionist playbook type of ideas, we talked about off price retail higher eququality minimum volatility or more of a sectoral growth story we talked about the growth of 5g infrastructure flplays where yo could be taking a longer investment horizon if you have that multicycle horizon, you could do well i would deserve, were trying to find an answer as to why the market goes higher we have all these conditions petes talking about the chinese headlines, good, bad, im talking about the federal reserve. You could have a debate on either side and the narrative seems to change every day. You could have the debate surrounding where earnings are going to be placed it seem that is equities are a coiled spring. Anytime theres the appearance of some form form of visibility, they want to trend higher. I think theres this demand, both domestic and interr national that people want to be ve investing in equities. I think thats message thats being telegraphed here if we could get past these negative headlines, i think sentiment is different says to me theres not a lot of fear out there. I think positioning wheres the vix today at 19 that doesnt save us a lot of fear is that the right stance given were 17 trading days away from brexit again, i would say that look at positioning look at capital flows. Look at how the market is. Mostly its positioned defensively. The market does u not have that overweight aggressive risk on top sentiment but i think if the market is positioned that way, i think the surprise is to the upside you know, brian, all year weve seen this volatility its been enormous if you want to follow the vix. Had a 6 pullback in may 6. 5 from july to august and yet when you look at that longer temperature, it has been a hugely resilient bull market here shortterm volatility, shortterm fragility they come in and drive you a couple of hundred points in a matter of minutes and make everybody a little emotional and its hard to get used to youd say there it goes again, but your stomach is still churning fundamentals are okay. Gdp growth at 2 ch its not awful and sentiment is still positive fine. Michael, heres what makes me nervous. Not quite the middle f o october. We had the same dialogue, almost the xhakt same, last october an two months later, the market crash crash with no headlines, no news, nothing driving it so youre convinced the market has learned or fed has learned its lesson thats what im worried about. Market structure liquidity. Etfs and were takingly quidty out of the system and the fed was tightening last year going into october and they were about to make that ninth move that might jumike just cite tedded. Request. It wasnt just the fed. If you lookeded at an index a year ago, we were tightening significantly and this time, you know, right now, we are at the Central Banks are the most supportive theyve been since the great recession. Take that whatever way you will, but were in a very different place from a central bank standpoint yet youre hearing that megan at wilmington is saying were changing our allocation. Making changes that are more conservative in our portfolio, its been harder to buy. Cash has been building up. Harder to put it to work in names that meet our discipline if youre a longterm investor the risk trade is really going away and maybe some of those value stocks are going to be a lot better joe, tell us what to do i think its to find the quality in each of the sectors have ownership in all of the sectors. Think about energy for a second. A sector is so difficult to mine for an opportunity i often mention one oak. To me, thats a quality name in energy i want some degree of Energy Exposure in my portfolio, but there are others throughout technology, you could look at lamb research. Its been red hot this year second best performer on the s p this year. Intuit, thats been a very strong performer these are qualities. Mastercard in financials a name that works well consumer discreche nation. Lulu lemon tremendous amount of fundamental momentum i want to be in all the different sectors and toipt find the best of breed quality names in each sector because i think the environment is fertile enough for them to continue to move higher. And somebody must have an opportunity on lamb and im not picking on them as a company, but semiconductors, thaifr got to be the most exposed thats why i own lam. Semiconductors they might be the most exposed, but yet lam research is performing as well as it is doing. Distinctive. Theres something about lam research that its outperforming the rest of the semis. Are there names you actually like as well as lam though sure. Texas instruments tera dine texas instruments. How much exposure would you want right fwhnow . Ive got one name talking about being diversitied. The technology, not sure what else i need. On the usa basketball roster, you can only have so many players. You know i want to go back to what i know obviously. Interesting name up 28 this year the whole industry, i dont need to tell you whats been happening. Why do you need to step out and by any oil and gas company because sometimes if youre going to be diversify ied, you have to own something thats not going to feel so good for a while and it doesnt buy low, sell high . Sell higher exactly. But listen, do i wantan overweight Energy Exposure no absolutely not you can look to Financial Institutions right now, look at what Asset Managers are doing. Amg, trading below 72. Unless you tell me the liquidity is going to come out of all assets, the economys going swoo deep recession and well see capital flows being restricted youre still going to have a fertile environment. Those Asset Managers are going to survive i agree with joes approach were taking more of a sector neutral approach its more about plugging the holes in your portfolio and not being too exposed to any one trade development, narrative what have you. And i think september is a good example of what we can see we saw a sharp rebound in value oriented names if you have no exposure there and we do get some sort of a trait positive trade development, you could have a hole in your port fofolio. I dont know if we can see this on camera, ive got a fact set screen with stocks broken up the average shock down 55 you cant read the must remembers, but the point is, 70 . Yesterday you brought us Marathon Petroleum yushl activity there these are stocks trading as if theyre going out of business. Is there an opportunity in that wasteland . B is buying the beta names. When were looking around, were not see iing the exxons being bought, chevy lons these tr tame names that exploded those arent those are, but theyre big beta names and the trades. When we came in and saw the bounce in oil and those high name, we said dont chase them here i dont think thats the right strategy i think you want to look at okay, you could pick up, look at devin energy if you believe theres going to be an opportunity in energy. Not as much of a high beta play. I think its trading below 23 bucks. Im long that name be careful with devin because theyve talked about banning fracking in new mexico the delaware basin, which is in new mexico, not delaware whos talked about that weve had some president ial candidates the point is, watch new mexico if you own it because thats theyre big play and that might be priced in already. One of my bigger plays in the nrnl k space continues to be kmi. Why . Richard kendrick continues to buy it back and on top of that, how about the fact they cut, theyre very disciplined cut the dividend when they had to and now theyre bringing it back and buying back stock this is a name that through all of the ups and downs, if youre selling calls, four times a year against this name and getting the dividend stream that youre getting, you create a dividend stream, this is a name where youre going to get double digit results out of this name with it doing nothing. All these others, volatility all over the place whether you go to the beta or big names. Youve got volatility there. Kmi has been this steady, slow mover thats hanging around 20 a share. Look here its up 38 year to date not so bad. Thats not enough to scare you off. Absolutely not. Richard kendrick continues to buy it i think i could continue to buy it with him. More conservative there 4. 2 dividend on chevron right now. Chevron is a really diversified company, i like it exxon, 3. 5 dividend cash flows i think there are ways where you can participate in each of these sectors with some really strong names that are going to suit your portfolios. I love that named about 20 names thats a big macro thing. Were getting stocks up. Youre right. Youre welcome america 4. 2 . Thats a will the of percent a lot more than the treasury yes combined heres whats coming up on the Halftime Report. Fedex shares falling more than 15 in a month. And a new note calling the stock dead money Investment Committee is ready to debate fedex in our call of the day. Plus the najarians are following the actions in the options n d te joanpes latest trades are straight ahead in unusual activity Halftime Report is back in two minutes. Welcome back it is time for your call of the day. Fedex, im sorry not delivering for investors shares hitting a three and a half year low today and analysts are piling on. Bernstein calling the stock, quote, dead money and says their bull thesis has been shredded. Downgraded to a perform and cut its price target 153. Anybody buying on recent weakness sfwh. I wouldnt sell it. I think its going to take time for them to gain the confidence of marketplace once again. A lot was blamed on the economy by fred smith on that Conference Call and tensions. I would say the problems were selfinduced partly because of overspending on aircraft in particular when the express business was experiencing significant weakening and additionally, they had the cyber attack on tnt and that really was cost ly i think to the tune of almost 500 million so i think there were challenge internally beyond the trade tensions but again, i wouldnt sell it here id wait and see over the coming quarter ifs it could regain the confidence i suspect it would. Im buying. To deliver their own goods. Ill buy it youll buy it i do hold it and i would add to it here i think that the money that they spent on the planes, theyve got very efficient planes. It was a real i think it was a very good investment there theyve had to shift their business from that b to b. Businesses used to the fedex guy used to come into your office with a stack every day, sometimes twice a day, we dont need that anymore. Office to office, but they are repositioning to take care of all the retail customers theyve gone to seven days a week in terms of deliveries. I dont think this company is going to take off tomorrow but its a solid Balance Sheet, terrific management and have done a lot of the hard work. A lot of things the analyst wants them to stop spending so much money basically saying you need to cut your spending. They want to next quarters performance and i dont care about next quarter i care about next year and the next ten years i hope not to sell this stock in the next five or ten years at this level, brian, youve got to think its got more potential upside than downside i mean a year and a half ago in june of 2018, this stock was basically 270 or Something Like that its 138 to michaels point. All we do i think the problem is ups is better i think they have better management i think theyve done a better job. Theyve been heavily invested in the ground fleet which theyre bigger on and because of that, they have been outperforming them in a big way not just a little way. They have absolutely ups up 16 this year. Fedex down 14 i would wait. A lot of that is the tnt. I think this is something that will take at least another eight, nine, ten months, year, Something Like that and meanwhile, ups continues to gain market share ups recreated itself. I think you would agree with that in the last 18, 24 months and momentum is there. I guess the fair question is if youre hiding out in ups, do you now make a Valuation First of all, never hide out anywhere never hide out you go to places because they have quality and i think ups has that quality you dont want to hide somewhere. Sometimes we have to hide out. Once in a while you got to high depends on what part of town youre in. And theres a little Domestic Versus International story fedex has more of an International Exposure and its been much weaker i would say its starting to look r more mixed. Not quite stabilizing or necessarily improving, but m mixed, so maybe tentative signs that picture is getting better, u be with that domestic focus. Good stuff. Also beginning to look a lot like christmas i said it. Were already there. Way to go all right october is delivery. The season of deliveries halloween tip your door man options, bull, betting on retail what semis and more jon and petes new trade and unusual activity is coming up and as we go to break, a sector check. Ten year yield at 1. 58 and all 11 sectors are higher led by Technology Look at energy l d aernt oiangas back fire up that v 8 back after this break. Ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. [spokesman] if youve tried colleg group cheering shed, 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 each day our planet awakens but with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. Welcome back im sue herera heres your cnbc news update German Authorities say two people were killed in a shoot ing in a synagogue wednesday in an eastern german city Police Say One suspect has been arrested while not classified as a hate crime yet, it edit occur on the you yish holy day. Pepsi has priceded its first evergreen bond where it will sell debt for Climate Change initiati initiatives. Pepsi will use proceed frs the 1 billion offering to reduce its virginic use and replenish the water it consumes in making sodas and snacks my favorite story of the day so far, 97yearold john b. Good enough became the oldest person to receive a noble prize wednesday. One of three scientists who won the prize in chemistry for their work developing lithium ion batteries he says he has no plans to retire. Im working every day i mean, you know, thats the nice thick thing they dont make you retire at a certain age in texas they allow you to keep working so i had an extra 33 years to work in texas and still working every f day. Congratulations to him an he came up with something we use every day. You always bring the feel good stories at the end. I try very cool we appreciate that thank you very much. All right, well abercrombie by having a rough year, but options traders may be sensing a turn around. Jon and pete have that trade jon, what are you seeing well, just as you say, its been a rough year, but a rough six months i mean take a look at this one 35 stock back in may and now a 14 stock. Thats why we think somebodys taking a cheap shot buying a lo of calls h that expire next week which ones take a look at this. October 15s. Just out of the money, brian because 14. 70. Theyre buying the 5 calls they paid 20 cents love that. Ill be in these about a week. See if it works out but again, 20 cents per option. Thats 20 youre controlling 100 shares of stock for 20 buck, come on take a look at this next one weve got builder. This one its a november play. Builder does what the name implies. Anything in the construction space. Whether its remodeling or outright building from some of these guys, they are buying these builders first source. November 22 calls. They bought these in big numbers. I bought them. Theyre out b about a month into the future thats about how long ill be in taiwan semiconductor. This one is pretty interesting for me joe was talking about the semis. We talk about it all the time. Whether theyre a buy. Look at this chart though. Its been a pretty dad gone impressive year all the way through. Stock was trading about 88 or 48. 40 earlier today so its up higher than it was and thats when they started aggressively coming after these calls these were trading for about a dollar and a half. Theyre rolling up from the november 47 calls to buy these calls so theyre taking profits on b a winning trade and rolling them up here when ever we see that and someone woants to b continue to be in that, thats a disciplined trader i will be in there unless they double first then im going to start to take some off i got a second one as well for you. Under armour you we havent talked about this name in a long time, but we talk about the shortterm stock was trading lower. Under 19. 5 they were buying these 19. 5 calls. At the time, they bought about 2,000. Looks like there are over 3,000 now. Those were about 20 cents. Still relatively inexpen sif, but risk reward, i love these trades this stock starts to move up maybe further than it is now these start to move like really fast money ill be into these a couple of days at the most, but if it moves fast enough, take this off quick. All right guys, really interesting stuff there. We appreciate that jon and pete, come back to the desk up next. Apple moving back chose ecloser time highs once again. A trillion dollar valuation and apple getting its price targets raised by one analyst on the street the guests will take their position as well into apple and we are one month away from a very special halftime show in honor of veterans day. This year, we are live from the womens memorial in arlington, virginia friday november 8th. If you are a veteran, a part of f a military family or want to join us that day, email your name and phone number. Veteran tickets, cnbc. Com. Tickets of course are free were back after this. 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Shares juing 5 according to kensho after similar moves, the trend tends to reverse with a stock underperforming a month later. For more, go to cnbc. Com kensho. All right, welcome back the dow is nearly up 200 points. Only stock down is j j and they got hit with an 8 billion lawsuit win overnight so specific reasonthere otherwise, the dow up nearly 200. Speaking of the dow, a very important dow stock. Apple higher again today after reports on the street. First up, canaccor draysing estimates after strong numbers for the impb 11. Second, another closely watched apple analyst from tf securities in taiwan saying new products, more of them, are coming next year including a lower cost iphone se, ipad pro and ar headset. That would be a new category new products guys, come out every year so to say theyre komg out, so far, the expectations are pretty dog gone good for the iphone 11 yeah. And it was a brilliant phone to bring out. Three cameras are going to cause you to put more pictures on your phone which is going to cause more of us to use more of the cloud. Thats why im pointing up like that and they collect a lot of money from that. With a billion installed users you know just take a wild guess at how those numbers jump when youve got more video, more pictures, going on to your phone. I think its brilliant not saying it explodes it doesnt have to go to 280 or 290 right away i just think a steady climb all the way for the next year. Really because it was already up 43 this year Top Performing stock in the dow has nevada gotten what other companies have get weve go a trillion dollar valuation. You dont care i dont care. Still goes higher. And they were talking with a lot of these music labels about bundling some sort of music along with the subscription at apple tv i like that. So i dont know whats not to like here especially since theyre not likely to be hit with many of the tear i haves becau r tariffs. Maybe because everybody owns it i think gundlach made that play a couple of years ago. Everybody owns it so whos left to buy it. Anybody have a different view on apple . Apple keeps buy iing their o stock and so buzz warren buffett. When youve got 300 billion in cash lying around, you can buy a lot of it back its a slow tech. Not a fast tech. Not a hot tech still a Gadget Company they havent made the shift to service. Its kind of reasonably ripriced hard to say that at 19, 20 times earnings when youre my age. 20 times earnings freaks me out still. But its got a little bit of a dividend 1. 36 while you wait. Probably better than the ten year treasury. We had a full house there bring that back up everybody here, joe, jon, everybody owns it. I only bought it recently i know youre not allowed to talk about individual equities, but i would imagine a company with apples profile would look attractive we still like consumer electronics. Companies with fruits as logos . Yes, for sure narrowing down the categories still talking sectors. Companies with fruits as logos what were seeing is that there was lot of pessimism and the devices of apple they stopped giving transparency one of these analysts notes, suggests that services are going to double between 2016 and 2020. Thats huge. But thats, you might have room for that multiple. To be justified. The services business, the number two business of apple, services business. Which is still like not a round, but its small is bigger than facebooks entire business i mean thats how big it actually is and to double that, would probably make it a loan for one of the biggest Revenue Companies in the s p 500 the secondary business for apple. Thats incredible. And i know it is the secondary business, but heres the thing weve talked about this yesterday the phone is less than 50 of the revenue now. So the fact that the service is as small as it might be, i dont think not saying small for but if you add that with the wear bables, youre talking about 20 plus percent are coming from there and you brought up ar, ai if all of those feed into what apple is, a a company thats not just a hardware company. What theyve been ingenious about, if youre an apple user, youre in the halo, pay 4. 99 for apple. Pay 9. 99 for apple news or 29. 99 a year for cloud, pretty soon, youre paying to apple, a business you might not even realize youre doing on october 3rd of 2018, the stock was 233. 47 that think of what theyve endured since then the absence of the wow product think about being a proxy to the china trade tensions the removal of guidance from their earnings there they are with the 233 in their sights once again in a year thats been pretty who hum for them unless you look under the hood and see the quality you almost wonder, sully brings up everybody owns it. Do they really how many puked it up when its going to 140 apple was buying buffett was buying jon added. I added. But i think theres a lot of people saying tang, i misseded it on the way up to 200. Ill wait then theyre going to continue to look at the stock and say to your point sh, wow, 19 or 20 times, but is it 19 or 20 items the real problem how much growth do they have 5 and 6 earnings growth. If you have that, its going to good discussion your point is made didnt need to make it 16 types. Pete the biggest stock there is lets be honest the desk is ready to answer your market questions. Can you still reach us of course. Go to cnbc. Com halftime or tweet us but first, kelly evans, rescue us whats come up on the exchange no rescue needed. Hi, everybody. China is reportedly ready to make a partial trade deal. Why the markets up. Well have the latest on what that could look like and what impact it will have on the markets the rest of the week plus the u. S. Just blacklisted some of chinas most important unicorns well look at the companies being singled out and what kind of threat they really pose and speaking of threats, if you think your boss is spying on you, youre probably right thats ahead in rapid fire today. The Halftime Report is back right after this sometimes, the pressures of todays world can make it tough to take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Natures bounty. [phone ringing] how are we doing . Fabulous. I wonder how the firms doing without its fearless leader. You sure you want to leave that all behind . Yeah. Stay restless, with the icon that does the same. The new rx crafted by lexus. Lease the 2020 rx 350 all wheel drive for 439 month for 36 months. Experience amazing at your lexus dealer. First up, mark in florida is asking if now is a good time to be in bio tech yeah, we like bio tech. We like medical devices. Within the health care space, its one of the areas that has less political risk. I would say they have a good innovation pipeline. Good earnings. Visibility what just to think about innovation that is coming down the pipeline think about robotic surgery with medical devices. Thats an area with about 2 penetration. A lot of room to grow. Okay, rob in toronto wants to moe if anybody likes lowes. Michael at this price. Thats lowes. Yes, i like it. Theyve had tough quarters, but this is an amazon proof stock. Housing affordability is improving. Earnings are going up fast eer than housing prices and Mortgage Rates are comeing down theyre also moving into pro sector so i think at this level, yeah, i own it i buy it id buy more today joe, i think its an interesting loan the stock is so widely talked about. At what level, joe, would you go long chipoltle because the best performing stock this year in the s p 500 well you want it to go long at 385, but you missed the boat on that. Ive played it for the long side throughout the year. Ive been using the 100 Day Moving Average which seems to be holding up phenomenally well tremendous point of reference of support. Right now, the 100 Day Moving Average sits at 772. Thats about 50 below where the current price is, but theyre going to be reporting earnings here in the next ten to 15 days. Lets listen to those earnings you get a pull back down to around 772 those instances have been b buying opportunities over the last year. And isnt this, before we go to another, is this such an amazing story . To your point when they had the health scares, everyone said dump chipoltle, yet look at its 440 bucks higher than it was at those lows its a lesson that bad times dont last forever well, and its unless they do. Its a lesson in strong marketing and the transformation and usage of digital because its really empowering the growth of chipoltle. Another them. Everybody likes buying them when at new highs you find a good company should have bought apple when they came out with the newton. Another fruit. Pay attention. We have a question from a viewer. Activision. Fully valued . I think its enough value in there, its moved up from 42 to 56 rapidly i took off 70 of what i own in there right now so im holding on to a peeshgs but thats only a stub of what i had wait for a pull back. John, micron, more upside yes i think youve got the improved hyper scale d ram moving up, their nan i think is popular right here and getting a gift picking up on a low that you load up on those lows just like mike said. Thank youall. Thank everybody out there for their questions. Straight ahead, more downbeat calls on netflix plus your final trades on the Halftime Report as the dow is up 175 were back after this. The Halftime Report is honoring americas veterans once again this year. If youre a veteran or part of a military family, we want you to come see us live at the womens memorial in arlington, virginia, on november 8th. Tickets are free email your name and phone number to veteran tickets cnbc. Com. The deadline monday, october 14th come see the Halftime Team november 8th for free tickets email us at veterantickets cnbc. Com see you there. Youre right sir. 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. So why isnt it all about you when it comes to your money . So. Whats on your mind . We are a 97yearold firm built for right now. Edward jones. Its time for investing to feel individual. phone ringing a phones offers big button,ecialized phones. And volumeenhanced phones. , get details on this state program. Call or visit and accessoriesphones for your mobile phone. Like this device to increase volume on your cell phone. phone ringing get details on this state program call or visit online now, read the contrarian call by one top veors uncertainty grips wall street. Go to tradingnation. Cnbc. Com now. This seat . This seat is reserved for the restless. Those who need to move. And roar. And ride. Up, down, over. Powering through. This seat is for those that get down in it. Into the fray. The arena. This seat is not for spectators. Gladiator as a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. All right. Welcome back roku up more than 700 from its ipo and today mccory upgraded the stock to a buy saying shares can triple in the next three years and two target price cuts for netflix. Rosenblat says netflix is a show me story shout out to laura martin, an analyst on power lunch said that you cant be a bull on netflix, negative for a year, saved her if anybody listened to her saved 25 and she says more pain is to come on netflix anybody agree, netflix may be in trouble here is disagree. Us you disagree. I think they will have a great quarter coming up. Unusual alternative data we have over at battlefin showed us theres going to be an upside surprise rather than the surprise to the negative, which it was last quarter. I would be a buyer of netflix. I have even though their costs are going up, and everybody to johns point the International Subs estimates have been lowered significantly. The surprise on International Subs would be top upside the other thing fair to consider is why cant people have both netflix and disney does having disney mean you eliminate netflix or having netflix you eliminate disney you can have both. I think thats an incorrect argument. But maybe because youre going to see a much more kpettive environment that theyre not used to operating in for netflix so pricing they lose Pricing Power i think they can lose Pricing Power and some subscribers it depends on the budgets of the subscribers. You dont know because people cabsle and they will be canceled for a couple months, sign back up, binge watch and recancel a cash flow nightmare. More competitive environment. Roku. We liked it up and when it broke, you know, i was holding the call spread that went out worthless. Shame on me at 155, 160, but when it came back down to 100, looked like a gift and now its up i think 8 today on the upgrade. Like it. The analyst behind that roku upgrade tim nolan is coming up on power lunch at 2 00 p. M. Eastern here on cnbc around the horn and our final trades beginning with you. You have had a pullback in dunkin brands, enough is enough im long, good spot to buy it here. Meghan . Ill go with the minimum volatility factor etf, riding through what we expect will be some choppy waters Going Forward bought outperformed year to date. Usmv. Correct. Mike until. Stick with my sort of netflix competition theme and go with Disney Disney is down off its highs i continue to like it and like the dividend and management and i think that story will get hot again. Xop unusual call buying. Oil and gas. We talked about the beta names hitting. Southwest airlines, this name will move to the upside. You love it fair to say . With that thanks a lot i appreciate it. That does it for the halftime. The exchange with kelly evans begins right now thank you, brian. Hi, everybody. Heres whats ahead. Markets are up as china would reportedly agree to a partial trade deal in exchange for no more tariffs as both sides threaten move that would threaten apple and tick tok. What this is telling us about this weeks outcome. Headaches for the nba in china, more events canceled and partners cutting ties with the league as commissioner adam silver arrives ahead of tomorrows game. Can he repair the damage as criticism continues at home . He will debate despite hig