President obama with putin of russia, trying to figure out how to make his strategy work. Resisting calls from those who say he needs to fundamentally change it. I stead, what the president said was, we have the right strategy, we have to stay at it. Heres the president. So there will be an intensification of the strategy that we put forward. But the strategy that we are putting forward is the strategy that ultimately is going to work. But as said from the start, its going to take time. And whats been interesting, in the aftermath of paris, as i listen to those who suggest Something Else needs to be done, stepically, the things they suggest need to be done are things we already are doing. What the president said was that more u. S. Boots on the ground in large numbers is not the answer. And he said that ultimately when you look at the ability of isis to strike in paris as they have and other locations recently, he said, as long as you have a few individuals who are willing to die, they can kill a lot of large numbers of people and its not really about the sophistication, its simply about their willingness to sacrifice their lives without continued vigilance. Also, some republicans, including people like ted cruz, as shameful and given into dark impulses for saying we will have a religious test for refugees we admit. We admit christians, for example, not muslims. Help sa he said that was an unamerican position to take. Our chief International Correspondent michelle carusacabera. Paris reacting to the president s desire that he wants to increase the amount of power he has in the fight against the islamic terrorists that struck this country on friday night. He made an historic address to the nation from the palace of versailles just an hour ago. Help wants the parliament to change the constitution. To give him more power in the war against isis. He says the current legal regime of the country doesnt have the necessary tools he needs in order to declare this war. He used the word war repeatedly. He wants to increase surveillance on those identified within intelligence reports as being a danger to the nation. He also announced hes moving the Aircraft CarrierCharles De Gaulle to the middle east. He says it will triple frances abilities in syria. He also asked for an extension of the state of emergency for the country by three months. He needs parliaments position to do that. He wants that done by the end of the week. He also announced they are going to hold the Climate Conference in two weeks. There had been questions about whether or not that would go on as a result of concerns about security in the country. But he said no, they are going to hold the conference. Thats going to bring many heads of state to the country. Hes going to meet with president obama and hes also going to meet with the leader of russia, vladimir putin, to try to figure out the strategy and what to do in syria. He announced an increase of 5, though members of the police and also the military within the next two years. He also sent out a special thank you to the United States for its support right now in the fight against terrorism. Well see how the nation reacts. France prides itself on liberty. Ever since the french revolution here. And the increase in the powers to the presidency are going to be controversial, definitely. Michelle on the ground in the french capital. The question now, what will the terror attacks mean to u. S. Strategy . General mccaffrey. Its good to see you again. Good to be with you. The president says were going to see an intensification, thats his word, of the current strategy. The strategy itself is not changing. Is that a mistake. I thought it was very disappointing statement by the president. Not just his own prior rhetoric. Theyre contained, theyre the jv. But the notion that nothings changed, nothings failed. Clearly, weve been incapable of identifying moderate opposition in syria and training and arming them. Thats been a total failure. Air power is micromanaged and constrained in its application of force. We had the white house announcing 50 or less special operators in syria. To decide do we want to go after these people not with 100,000 troops on the ground but with a muscular special operations capabilities, yes or no. I also thought his rhetoric on refugees was off target. 1 million refugeeses in europe is a bad policy. Instead of spending 1 billion a month to stabilize them on the border of turkey and jord wherein they can go back home when this war is eventually over. I dont think theyre thinking very clearly on this matter. Lets talk strategy. How do you fight an enemy waging an unconventional war going after soft targets and not military ones . Well, clearly, you know, this notion of general mcchrystals Network Warfare is more appropriate than the notion of state warfare. This isnt a fight of battle cruisers and bombers so much as it is of good law enforcement, good intelligence. We had a devastating impacket on our intelligence collection capabilities and then snowden and now were not gaining cooperation really out of Technology Firms out of Silicon Valley and elsewhere. Theres understandable privacy issues here. At the end of the day, do we want 500 killed and wounded in washington, d. C. . You got to have good intelligence. You got to have protections and border protection. By the way, the United States is fortuna fortunate. We dont have hundreds of thousands of angry unassimilated muslims. We do have a fair Muslim Population. They think they get a fair shake. Thats not the matter in france. We are in a special category. A giant free nation, 350 million people, with two oceans protecting us. But the europeans are, i think, making a serious mistake with unconstrained Refugee Movement into the continent. This wont work. We may have a couple of oceans bordering us, as you suggest, sir, but how concerned are you . How concerned should we be about a parisstyle attack taking place within the United States . Well, day in, day out, we ought to be concerned. I think its inevitable there are plots in motion. But thank god for the protections and border protection, the fbi, the new york police department, state and local law enforcement. And for a Muslim Population that by and large is peaceful american citizens. Working, going to school and in their community. We dont have the same threat level anywhere near what occurs in Birmingham England or london or paris or madrid or in germany. But we have to be aware that were a target constantly. New york city and d. C. , as well as other one off attacks elsewhere in the country. General, thanks for your time today, appreciate it. Retired army general barry mccaffrey. Both the nasdaq and New York Stock Exchange had moments of silence to honor the victims. As for the markets themselves, the major averages have largely been Holding Steady today. Heres how things look at this hour. Stocks are mostly higher. The nasdaq however is negative. Crude getting ever closer now to breaking below 40 a barrel. It is now 40. 51. It is down by onehalf of 1 . Guys, ive got the traders in front of me here. If nothing else, when we talk about the impact paris on the financial markets, as we do here, it makes us think about the geopolitical risks today. Perhaps more so than we did one week ago. Jim livanthal. We had some growth worries. But outside the u. S. , youve got worried about growth. So Something Like this happening to paris, you know, and a lot of people paralyzed for a if reason. Going to memorials and not doing the work they otherwise would be doing doesnt help a European Union thats kind of teetering on the edge of growth versus no growth. Frankly, i think thats tying into oil right now. We know we have an oversupply condition. Getting well into a concern about demand thats going to acer bait an oversupply situation and push oil lower. Youve got the u. S. Going okay. The rest of the world is in trouble. This just doesnt help. You do, josh, have to i guess think about what, if anything, this could influence as the fed tries to make its own decision whether to hike Interest Rates some time next month, if, in fact, it happens that way. If the dollar is strengthened as a result of flight to safety. If events in europe weaken the euro and maybe the fact that the dollar would be strengthening, would be doing the feds job for it in some sense. Right. So the fed has been willing throughout the course of the year to pepper their remarks with i dont want to say anecdotal, but theyll add in things like, weakness in asia after the chinese stock market has a crash. So i wouldnt be shocked to see obviously what were dealing with over the last week pop up in their statement. But i think the right way to look at this is when you look at these geopolitical crises or assassinations or any of the myriad of things that occur away from the market that could shake confidence, what actually ends up happening throughout the course of history is that the market resumes whatever it was doing originally. Whatever the prior trend was within a month or two. That goes for 9 11, mlk, rfk, jlk, et cetera. Thats not necessarily great news because what the markets been doing all year is chopping around just below alltime record highs. I think the market is justified in what its doing. You basically have a 17 times earning p e on a market with zero Earnings Growth for this year and negative 4 for sales growth. We dont know what next year will be. We dont know what the future course of Interest Rates will be. And im not sure what justified an 18 or 19 p e with no growth. So this is where we are. I dont think anyone should be surprised by that. Well hear from joe and pete in just a moment along with black rocks head of Global Investment security on how to navigate whats taking place globally, plus, nike, just sell it . Is the analyst who made that call is back on halftime. Well give him some bragging rights i guess. Bob dylan. To improve my language skills, ive read all of your lyrics. Youve read all of my lyrics . I can read 800 million pages per second. Thats fast. My Analysis Shows your major themes are that time passes. And love fades. That sounds about right. I have never known love. Maybe we should write a song together. I can sing. You can sing . Do be bop. Be bop do. Do be do be do. Do do do be do. Welcome back. A number of Industry Groups today being affected by the attacks, the tragic ones in paris this past week here. First, aerospace and defense, names like raytheon, also lockheed martin, all down around that 2 up, rather, that 2 to 3 mark here. Analysts anticipate increased Political Support for things like defense spending. Industry group to watch there. Airline stocks slipping on the concerns of risk to global travel. European carriers affected like air france. Also luft hansa down to around 2 to 5 . U. S. Carriers affected as well. Delta, united, often by those same amounts as well. Those stocks dragging down the transportation index, the dow transports. As you look at travel booking sites like expedia and price line, those guys down as well, 3 , 3 , 4 . These will be trades to watch as the developments unfold in paris and continue to unfold in the coming days and weeks, scott. For more on what the attacks could mean for the markets here and abroad, we bring in russ, the global chief Investment Strategy over at black rock. Good to see you again. Can you tell us how the events of paris are influencing your own thoughts about how youre now assessing geopolitical risk in your market models . In the near term, i dont think theres enormous impact. The markets been fairly resilient. I very much agree with the comment that generally economies tend to be resilient towards these sorts of events. Im cautiously optimistic in the near term the market is going to look past this. There are longerterm implications. I can think about those mainly in the context of european politics. One of which youve got an incredibly difficult refugee crisis in europe. The largest youve seen since the end of the second world war. This will complicate finding a political solution to that crisis. Likely seeing a referendum in the United Kingdom about whether or not the uk wants to stay as part of the eu. Arguably will strengthen the hand of those arguing to leave. Significant ramifications for the gilt market, sterling, a number of assess classes. It does increase the uncertainty, particularly surrounding the european political solution. Are you then saying you will have a more u. S. Bias in the way that you would invest within the next 12 months . Not necessarily. I mean, its a good question. I dont think the answer is that clear. Part of the challenge is u. S. Assets, particularly equities, are expensive relative to other countries. As someone pointed out recently, weve had an earnings recession in the u. S. Well have zero growth in corporate profits this year. If we see a further divergence between the fed and central banks, thats a strong dollar and a further head wind on earnings. I think you do need, still, a broad internationally diversified portfolio. Russ, in terms of the rate hikes, whether its december or they put it off further, whats the stance in terms of the big Financial Companies in the u. S. . I know stock was talking about the u. S. Specifically. Are there names there you think in this little bit of a pullback that start to look attractive or no . If you believe the fed is going to go, particularly if you believe the market is going to move to the fed, you probably want to be along some of the bank, anyone thats going to benefit from an increase in the net interest margin. I think there are some opportunities in the financial sector. Hey, russ, its joe, do you have any concern as it relates to the consumer, specifically the u. S. Consumer, which has been the bedrock of growth globally and has been the one sector that you can align yourself towards favorably . Do you believe youll see a pullback in spending habits were seeing today, travel and leisure as under pressure . Do you think thats transitory . I dont think were going to see a pullback but what concerns me about the retailers in particular is that you may not see the level of spending that those stocks discount. You know, personal consumptions actually held up very well over the last few quarters. The problem is theres been a shifting balance of that consumption. More to health case more to education as we saw last week, much less to retail spending. If youre looking at traditional retailers, the department stores, i do think theyre into some pressure. I think thats likely to maintain itself into 2016. We have, russ, before i let you go, 30 days or so before the fed meets in december. Im curious if you think that the events of this past weekend changed the date that the fed may go, if the dollar rises more significantly than the fed expects over the next 30day period, which is a considerable amount of time it could, in fact, do that, how will that change the feds thinking . I think the fed is still likely to go into december. Your dollar comment is spot on. Whats happening is the currency market is doing the work for the fed. As stronger dollars a de facto monetary tightening. If the dollar appreciates too much too fast, that will affect the feds thinking. Maybe not the date of liftoff but the pace of subsequent tightening will be affected by the strength of the dollar. Russ, its good to talk to you, as always. Coming up, buf fet, the latest on what the big managers are buying. Plus, the escalating conflict in syria means for the u. S. Markets as we watch crude again today. Were back after this. Its more than the cloud. Its security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. Crude oil reversing course. Now it is in the green. A decent little spike there. Still hovering just above 41. Lets bring in the partner at again capital. Whats with the move . We were expecting it to go below 40 one minute and now you have a spike. I think you saw a short curve off the low of today. Theres a lot of nervousness, obviously, this headline hitting the tape about whats getting hit in syria by the french sorties. So i know northemorning there w some oil convoys that got hit. For the most part, its just going to be more of the same, more intense bombing. Short of boots on the ground, i think the market will price in the glut more than anything else. You said for weeks more than anything you expected oil to go lower. How significant is 40 bucks from a psychological stand point . Maybe technical too. I dont know. If it breaks below 40 . Once we fell out of the 44 to 48 consolidation phase we were in after the august histrionics, really the number to watch now if we break 40 is the 37. 75 low. I think thats really the big number technicians are looking at for this point. The 40 is just a round number that makes it easy to talk about this market. Clearly the fundamentals are lining up to push us down. Do you think opec changes the strategy at all and now look at production, and ultimately you get an end to this war going on between the russians and saudi arabia over price and market share . I think thats an interesting could be an Interesting Development here. To see what companies out of the meetings with obama and putin. Because theres an idea here that all the animosity gets focused on isis and away from assad a bit. That maybe the saudis do stop their punishment of russia and iran. They all do get together to come up with a road map for syria that includes maybe a limited role for a while for assad. If they can get together on asat, they can certainly get together on production. You think this is what were seeing, too, is Short Covering . Youre seeing a spike in crude and with it the market seems to be trading in trap dem these days with the direction of wti. We saw it on friday and now again as crude oil spikes. The downs up nearly 100 points as were speaking. I think partly why youre seeing the rises there in coordination is because part of its been on hopes that the fed wont hike Interest Rates. That the easy money will stay in a big way. The reason markets gone down with crude oil is because weve been working about economic situation. The china data all last week was disastrous for crude oil. Just one point after another after another all week. The key demand center for this market was really flailing about. It seems weve got an oversupply condition that now is being blended with an underdemand situation. For most of the past year, its just been oversupply. Were starting to get real demand worries from china. The shipping line is using a lot less bunker fuel. Shouldnt woe be worried about the double whammy . Its more than just the supply, its demand now. Theres no doubt about it. Like i said, the china data, i couldnt believe how it kept coming out disapointing. This too, this terrorist attack, normally you think it would stoke geopolitical fears. Theres more of a concern about what it would do to the eu economy. Potentially faltering. Potentially seeing less demand. At a time where were all running out of places to put some of this crude oil and refined products. Were hitting tank tops. What i half jokingly called a mega glut. Up next, terrorism and technology. Mao isis may be using phone apps and video game consoles like the playstation to plot in secret. Nbcs jeff rosen joins us with that. And the markets, the s p sectors right now being led higher by telecom and energy. The s p at the highs of this session, up 10 points, halftime show back after this. Here at td ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Hello, everyone, im sue herera. A french official telling the Associated Press the suspected mastermind of fridays paris attacks was also linked to thwarted train and church attacks. The official identified the subject as belgium abdel hamid abud. Conducting raids in connection with the attacks. In toulouse, a home wallace raided. This have seized a number of weapons and drugs. And in the brussel district of molin beck. That district is home to many immigrant muslims and has been at the center of the investigations of the attacks in paris. And silent across the french capital today in memory of fridays abeing it was. They gathered in paris where 15 people were killed. French president hollande led a moment of silence at the sore bon. Youre up to date. Thats the cnbc news update at this hour. Staying with paris and that story, sources telling nbc news that isis terrorists are secretly communicating using video game consoles and popular phone apps. Nbcs jeff rosen has more details. Its a fascinating story for certain in reading the script. Its incredible how these folks are allegedly communicating through something as simple as a playstation 4. Yeah, and its not even encrypted. Our sources are telling us this is how isis has communicated before. It is certainly being looked into. Did they plan the paris attacks using playstations as well . You ask yourself, why would they use playstations, but thats the exact point. It is something you would not expect. There is so much data with 100 million users a day from sony playstationings that it would be too much data unless they were specifically targeted, the government was, to look at a person to go find. You can do these private chats on playstation now. Its not like the atari or nintendo, not to date ourselves when we were growing up. You have headsets on. You can chat live. You can invite its very private too, scott. Thats also very important. You have to invite the people into the chat room while youre playing. You can talk live on the headset. You can even text through it. Its not going through your Internet Service provider or your phone provider. It is sort of out there in the ether and when that meet up is finished, you close the chat, poof, its all gone. Proving to be a problem for intelligence officials as we saw in france. Do we know what intelligence officials or even sony are doing about the very things reported in your story . Edward snowden released documents sayi in ing the cia as back in the day were infiltrating some video gaming system bus theres just so much of it they cant keep up. Sony says they take a look at all behavior. Any suspicious conduct. They work very closely with the authorities. They urge people to report it. The problem is, these terrorists arent going to report themselves. By the way, one other thing we reported on nbc news today, our sources are telling us that its not only the playstations, theyre using iphone apps. Iphone apps you and i may use. Whats app, signal. Another one called telegram. Where messages selfdestruct. You can set a timer on them. Tried it myself. I sent a message to my friend. Set a fivesecond selfdestruct timer. Poof, thats gone too. The fbi, intelligence officials, cannot get to it afterwards. So the stuff that we use every day that helps us in our regular lives, the terrorists are on to it too. Thats the problem. Amazingly, the ease at which in which you and your produce were able to, in fact, communicate, both through the playstation and both through this app as youve demonstrated in the piece. That simple. Fit that simple for us, think about how easy it is for them with all the money they have at their disposal and how theyre using the stuff you and i use every single day. We appreciate your reporting, thanks so much. Nbcs jeff rosen with us there. Its all about unintended consequence, right . The sort of things we want to use each day. Unfortunately, how will we stop Something Like this . Is it through some form of regulation . Everybodys trying to figure out the best way to get to this matter. I dont ness necessarily what you could do at this point to really change what weve already reached right now in terms of the social media and the ability to be able to communicate all th these different manners. Sony, the maker of the playstation, tells nbc news, quote, we take our responsibilities to protect our users extremely seriously. When alerted to suspicious conduct, they say we are committed to taking appropriate actions. Thats the word there from sony. I think theres two sides to technology. You look at the u. S. Economy right now, the negative side. Not just the u. S. Economy but the global economy, the negative side is the impact of Pricing Power from technologies, efficiency, the ability to increase production what it does to actual human labor. Theres also the Positive Side. I think in this case as well theres the negative side we just heard about, but the Positive Side is the u. S. Is the leader in Global Technology and obviously can combat we than any other nation what the concerns might be on isis use of technology. This seems to be solvable and i expect it will be solved now that the problem has been identified. These are messages going ultimately through wires, through the internet, they can be intercepted. Its just a matter of figuring out how. Hasnt been done yet it will. After a rough week for retailers, stephanie says shes found a diamond in the rough and shes buying it on the cheap today. Plus, Warren Buffett adds an old tech name. Leon cooperton adds to new tech. At the top of the hour on power lunch. Were live in paris for the very latest on the terror attacks. Just how safe are we here at home though . A former fbi assistant director who was stationed in iraq and has broken up terror cells here in the United States joins us on the show. These attacks adding another major risk to the market. Volatility soaring over the past week. Is it back to staying for some time . And have those attacks taken the rate hike by the fed off the table . The chief economist of point 72 will be joining us. Some of wall streets biggest investors making waves today with their latest quarterly filings. Kate kelly joining us now with a recap of where the big money is moving. This is some interesting moves. Which ones stand out . Broke it down into some themes but theres a lot of different movements on the chess board that is stock investing. Take a look at leon cooperman for starters. Hes doubled his stake in facebook from about 500,000 shares to 1 million. Pretty interesting there. He also took a new 500 million share stake in jcpenney at a troubled time for retail im association i think thats 500,000, and went bearish on gm. Cooperman also initiated new stakes. Heres some interesting ones. On valiant. Although to be noted this is as of september 30th. So before some of their current troubles. Also the Pharmaceutical Company pfizer. We dont see your we dont know if hes still in it or not. A lot has happened in the past six weeks most of it has happened in the past six weeks. A lot of bearish factors. So it will be worth noting whether he tells investors where he stands with that or certainly catching the next quarterly filing. As of the end of september, he was in that very Popular Hedge Fund trade. An enhanced position in a number of Food Companies including stepping into craft heinz with about an 8 million share position, yum brands, and a planned spinoff of its Chinese Business and nomad foods. And bullishness in the energy sector. Where two respected investors are loading up on shares of the beaten down cheniere energy. Carmen added substantially to his cheniere position. While carl icahn in a slew of recent purchases, the most recent of which announced last week, raised his stake to 53 million. Worth adding, however, that cooperman would seem to be bearish as of the end of september. He sold a relatively small take but nonetheless moving into the opposite direction. Josh, you had something . Im just wondering if your reporting when you talk to sources, the s p is down about 1. 2 year to date. Just about every single name brand hedge fund i can think of is down double digits. Theres negative output, with the exception of your john better banks and a handful of stars that had a great year. Whats the mood like . Is anyone radically shifting their strategy to avoid more periods like this . Good question. Or too too small a period of time to make any changes . First, think the mood is lousy, as it should be. Youve seen investors make apologies. Im thinking of larry rob be in gl glenview. As far as i know, people are sticking to the game. If anything, you see, like, with the third point entrance into some of these positions that are pretty popular already. Yum where they added a stake, kraft. Pretty crowded trades here. Which i think is a big part of every time a stock blows up, down 20 , i go to a 13f list, and every single one of these reads like a hedge fund conference. Right. So, i mean so the group thing may have gone too far. Are we rethinking that strategy . You would think so. I think john burbank is an interesting one. Their Flagship Fund is doing well. Their special Opportunities Fund has been ripping. I want to say it was in the 30s percent at last check. They take positions. Its almost like a macro fund even though they dont call it that. Theyre investing in emerging markets as well as stocks here. Citadel, ill talk to them later this week, theyre doing quite well. They invest in everything, right . They have a variety of different strategies and equities and fxed income. On the stock side, they own a little bit of everything. You talking to them on tv . Yes, yes, thursday, well be live from citadel headquarters. Nice. First tv interview ever otheren this a few minutes from a conference. Ill just say it in advance, well see you on thursday. Good stuff, good for you. Thank you. Kate kelly. What, really quick. Think about the cycle a couple years ago, all the intellectual capital left goldman. Theyre going to come right back again. Goldman sachs, morgan stanley. Its surprisinging to see buffett lightening up on golden stocks. And boost eing ibm. Right, thats a bit shocking. It was also interesting to hear him on the paris attacks and how he positions for the fed, which is to say not at all, which is taking the long view. I think youre seeing a lot of concurrent movements in the markets here. Some of the pain probably will be shared as well unfortunately if the Market Conditions continue. Kate, thanks. We are going to be live tomorrow at the cmes global conference in naples, florida. A lineup of some pretty good interviews. The former twitter ceo. A bunch has happened since he left. Well talk to him about where he thinks that company is heading under new ceo jack dorsey. Neu neuroiel roubini will be with us. About what he thinks about the whole market climate overall. And terry duffy, the host down there, executive chairman of the cme group, well get his thoughts on all things markets. All of those tomorrow on the halftime show. He made the unpopular call in october, turns out it was a good call. Find out whether jonathan is still bearish on his trader favorite. Over the last 15 years, theres only been two other times. So, you know, from a risk reward perspective, were looking at the historical data. Tell us when it gets this extreme, theres high odds its going to pullback. All right, that was Jonathan Krinsky just sell nike recommendation. The stock is down almost 9 since he made that call on this very program. He is back today on set. As joked to you before, you came out to confront us. Because we gave you a hard time. And credit is credit is due. Certainly in this case. Where does it go from here . As your technical call, which is what it was, still hold for the stock to go lower . When something finally does correct and pull back, it overshoots to the other side. Its testing the 50 day. But i think the risk here, again, this is a move that was so extreme to the outside it overshoots down, maybe back to the 200 day moving average. I think the crux of my pushback with you when youre on the phone was that are we speaking to a trader audience or are we speaking to an investor audience . And its often difficult for the investor to look at a chart or hear a recommendation, perhaps think, okay, id better sell now, and in a month from now, id better buy it back. Hard to know when to get back in. To think that was the spirit of where we were coming from. You are speaking to a shortterm investor you dont really know whether a shortterm pull back leads to a biggerterm pull back. Most of retail has been in a bear market. Nike has been one of the lone holdouts. Weve seen an initial pullback thats brought it back in line but the risk again is that nike is not immune to the selloff that the rest of retail has. Were going to be watching it closely but i think its too early to say to just buy it because its had a 10 pull back. Understood. Josh . I read your note as i usually do. More broadly speaking, you look at the some of the fundamental calls right now are in direct opposition to what the technicians are saying in terms of sectors so this morning tom lee came out and said weve been overweight Consumer Discretionary for six years. Now were overweight energy. Its going to turn the other way. Everything thats been working wont and vice versa. If you look at the charts though, theres absolutely no indication that any such shift has taken place. So how do you square the circle if youre an investor who wants to take the best of both disciplines . I think right now you said discretionary has been the best performing sectors but thats on a cap weighted basis. Theres just a few names that have been responsible. When you say, well, where do you go now . Theres really no one sector thats showing leadership on an equal weight basis. So the risk is that some of these leading sectors actually correct and some of the lagging sect oors like energy and industrials really just tread water. I want to get to a point youre making and a point that weve made and discussed on the show numerous times and that is the lack of breadth within the market, specifically tech and when it comes to stocks like google and amazon and facebook and netflix and if theres another one you want to throw in there, fine, that have been leading the charge. Do you have a problem with that . We do. If you look simply at the russell 3,000, 98 of all u. S. Stocks, theres only about a third of those above their 200day moving average. You go back a year when the index was at the exact same level that number was 60 . Weve moved sideways and less and less stocks are participating. It hit a fever stock in the last few months when you saw the nasdaq 100, but really no other sector, no other index really confirmed that. Thats an issue going forward. Part of the issue, goldman sachs, this couldnt be more timely, goldman puts out a note today, i dont know if you saw it or not yet, they say they agree that breadth has been incredibly narrow, but they say it could last for many more months before the train stops. It could, but what we try to highlight this week and i know it was some of these big cap names such as amazon and the quote, unquote f. A. N. G. Stocks are starting to show early signs of weakening. We think theres 12 to 14 downside. You say sell amazon right now . We would sell amazon right now. Anybody want to take issue with that . No. Its going to happen sooner or later. The call is the right call and i agree with it, but the problem is you have no idea when. I dont mean just you. The right call, youre talking amazon. F. A. N. G. Stocks in general. When you have that crowded a leadership and the note youre talking about i think pointed out the s ps yeartodate return is entirely concentrated in those four names. You know its not going to last. The problem is you just dont know when its going to turn and theres never really a catalyst. Think back just as a somewhat corollary, not perfect, think back to china during the summer. There was negative data point after negative data point going back to january, and it was only in august that the market caught up with it and decided to, you know, react. Thats why you can follow the price action. So you look at what happened in amazon leading into last week. We had one of the widest spreads that weve seen in six years. This is after a 100 gain yearoveryear. 82 analysts have a buy rating on the stock versus 50 a year ago. Youre seeing sentiment get frothy after the extended move and then what happens . They have one of the biggest down days. Red flags should be going off. I would show netflix as an opposite example. It had a hiccup on earnings and now its back there. Leave it at that. Jonathan, thanks for coming back in. And a good call on nike. Another slew of earnings on deck from walmart to home depot. All of those numbers coming up. Were back right after this. With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Its more than a nits reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced Technology Solutions, including an industry leading Broadband Network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. Were back after last yekwes retail selloff. Steph, what are you seeing . Hi, scott. Im looking at the offprice retailers, t jsmjx specifically. Theyre down 5 on the year. What was really clear do me out of all the retailers that reported was the high inventory levels, and that is going to benefit the offprice retailer specifically because they will be buying in that product. Theyll have fresh product. They will be offering them at very attractive prices and they will continue to gain share to the big box retailers. So i would focus on tj. Its not a play on the quarter, but it is a play on them having a dominant market share in the u. S. And they have restructured their international business. Great Balance Sheet and i like the home Goods Division as well. That would be the one. Ross stores would be a close second but i would focus on tj. You and cramer are like two peas in a pod all over again. He said last week he thinks they have the right mix. They do. They both do, and they have very Good Management teams, too. What about walmart . Did i hear you picked up walmart . No, we did not pick up walmart. I think its interesting that its down so much, but i think that they really do have structural issues. Theyre going headtohead against amazon and, see, thats whats interesting about the offprice guys. Theyre not really going headtohead against amazon, and i think theyre going to be able to better position themselves to gain market share against the guys that are like the walmarts, like the macys, like the jcpenneys. So thats why i feel more confident in their business mix, the resiliency of the model. But not a play on the quarter because its a tough environment but i think in 12 months time you would be happy to be an owner of tj and ross. See you soon, back on the desk, i hope. Thanks. Lets look ahead to retail. Dicks sporting goods, footlocker this week. If you have been on the retail play of athleisure, pete, these could be key. They could be key, but unfortunately theyve traded like the rest of retail. Theyve been slaughtered recently. You have to be careful. I still have a stock position in dicks sports. I do not have anything in footlocker anymore. Josh . Im not interested in playing any of knothose names for earni because the sector is a minefield. Urban outfitters, lets see if theres any savior in the retail space. Well see you tomorrow. All of you as well. Power begins now. Good afternoon, everyone, and welcome to power lunch along with mandy drury, im tyler mathisen. Paris remains in a state of emergency, a manhunt under way for one of the proper suspecting. President hollande says we are at war and laid out his plans. Well take you live to paris. Just how safe are we . A former fbi assistant director stationed in iraq will weigh in. Stocks are rallying right now but these do add another major risk to the markets. So volatility has been soaring over the past week. Is it back to stay