Row. Thats how the picture looks now. Crude oil is back in positive territory. The dow is flat and trying to come back as crude oil has moved into the green but its a mostly flat line story at noon eastern time. So steve, give us your view on where we have been the last three days. You had this great run. Going for the fourth. Can it continue . Does it have legs . Is it something to believe in . And if not, why . I think we got way oversold. Id be hard pressed to think of one investor that does this for a living that wasnt at maximum bearishness and as i point out in december and again january, hedgefunds have taken their nets and their gross down to levels that you hadnt seen in years. So set up is the question of who had the guts to do it. So talking to a couple on the side of the investment banks, massive Short Covering the last two days in particular and yesterday more so than the day before. Now i think we were very oversold. I dont think were going into overpauthme overbought. At this level its where were going to hang out. The market is overvalued. We havent cured the problem. You usually think its overvalued. On an average pe basis which is about 14. 3 times. Were trading in about 15 times or so on 16 earnings. And whats the catalyst to bring it to overvaluation. We get more bad news. Do you disagree . A week ago the s p was 18. 13. Were getting a little bit of a pull back this morning. Im not ready to say that the rally we had over the last couple of days is going to end. This is not 1945, 1950. Its virtually flat. 1945, 1950. Thats where i think were going in the near term. I think were going to get there. I think oil right now the momentum is toward the upside. Not concerned at all about what im seeing. What do you do . Well, youve seen an easing and some of the fear in particular in that Energy Complex that joe talks about but its still just crazy high. Its still up 50 year to date. Yeah down from 80 to 70 but this is a very elevated level but theres nothing decided yet. We have four countries that are going to freeze production but theres an awful lot of moving parts out there that could change this and send us. And causes energy to pop substantially. We had three straight 1 moves for the dow. The First Time Since october of 11. So well see how this shakes out today. Materials the best performing sector of the month. How do you see the landscape here . We also have to keep an eye on liquidity. We talk about volatility all the time. What about liquidity . Look at the ten year. Look at the range just over the last four or five trading sessions in that. From the low 150s to the 180s and then you look at the market itself. These moves each and every day, i dont know. I know yesterday youre going back and forth with josh and you were talking about the fang stocks and josh wasnt so convinced that was a very healthy market. Whats not convincing me about the health of the market is is this a dash for trash right now judge . Whats been leading us the last three or four trading sessions. Its energy. Its materials. It was bio tech. Financials have lagged. Wouldnt you rather see that than utilities . Telco . No doubt about it. Leading us daytoday after day. I would also like to see a little bit more of a broad based rally rather than monsterous moves in energy. Monsterous moves. Look at the move. A lot of guys are giving me flak because i still hold the puts in that. A i have been able to rachet down the entire way as the stock has gone lower but you hold on to Something Like that because this move went from 4 to 8 almost overnight. Those are the kind of moves were talking about right now and is that sustainable . Is that a dash for trash . Is that a little Short Covering . What is it . Thats some of the concerns. Lets bring in another voice to the competition. Somebody crushing the market already this year. Many hedge funds obviously having a tough ride. Roy is up 16 . He is the founder and manages 850 million dollars. Its good to have you here. Thanks for coming in. Congrats on the success. A lot of it is due to a computer program. Tell me exactly how your strategy works. So we have computer models that analyze the data coming in literally tick by tick. The volume and price of every major market and most people just stopped. Those computers are making decisions as to what the probability is that a particular market is going to rise or fall over periods from hours to the next few days. Very shortterm. So theres no physical human trading involved here . You have simply built computer models that are trying to predict the direction of the stock market and then the models were actually executing all of the trades. Theres no human aspect to it. Thats right. The stock market. In fact, all markets. The way we think about it is a lot like the way an aircraft works. It flies on auto pilot. You need awe pilot watching over things. You say youre not a High Frequency trader. Whats the difference in what you do and what they do. It uses a duration thats typically mila seconds to seconds. Theyre in and out almost insta instant. Theyre averaging a day and a half. You think the volatility that we have seen is some say its due to High Frequency traders and its the computers that are running the show and how do you respond to that sort of, lets call it criticism. Its a return to normal levels of volatility. If you look back at the history of the markets 1 to 2 is exactly what you see through history. However from 2012 to recently because of what theyre doing with qe they dressed the level of stock market volatility. As they stopped and we see a tightening volatility comes back. Markets are moving 2 a day. One of the things thats really impressive about what you have done is the taking of the human out of the equation because just as steve opened the show with, how many of us had the guts to step in at the bottom but the discipline probably told you we are severely oversold. Heres what i should be buying but you just waited and couldnt pull the trigger. That happened to me on a number of trades that i saw that were as it turned out great trades that i missed. Got a couple. Disney, solar city, linked in. But i missed ten times that amount because of the emotion that takes over when youre down there and thats one of the things that with your firm you take out of the equation. I think one of the mistakes that was easy to make when you invest is to overuse recent information. What the market did yesterday. What the market did the last few days or what the most noticeable thing that you remember. So if we take a current decline it looks a lot like the last decline in august through september or october. And what happened last time is we have this Double Bottom and it came rocketing back up. Its very easy to say the same thing is going to happen again but our models are different. This last bounce we had, the three huge days is a bear market rally and were fully invested short now in equities. So Investment Strategies including managed futures, they cycle. Sometimes theyre in vogue. Sometimes theyre out of style. Okay . I have been noticing over the last year or two years they have been very much in style. So what is it about it other than a trending down market where the individual stocks are much lower in correlations breaking down. Is it that thats making this a great environment . Its really simple. Just the raw level of volatility. How much markets are moving. Manage futures global macros, cta strategies are all generally synonyms for each other. Theyre making longterm trades that last weeks to months. If the market is moving a lot in that duration. Stocks moving 10 or 20 and you see crude oil dropping 50 thats good for the longer term strategy. What we do are making much shorter duration trades. So the back and forth can provide huge opportunities. One question with that. So markets going down. Youve got your model. You told me its primarily price and volume. Which is more to it than that. How much of what youre seeing is so much more volume on the down side than the upside driving what you do . We don actually look at the relative volumes of selling and buying. That turns out not to be so useful. It turns out that for us its the path that the price has taken. Its not what level the price is or did it go down and up to get to the same price . Its how we view the world. Its not where we are. Its how we are relative to where we were that gives us our state of mind. Can i ask you . On this issue of sort of lack of trust if you will that some investors have for either these types of strategies or others that are more directly linked to High Frequency trading somebody on twitter says youre not reacting to the market so much. Youre creating the market. Algorithms like yours and others are creating the direction in which stocks are going. Faster than humans can react. Youre doing more trades in a shorter amount of time than any normal person can obviously execute. Is that a fair criticism . I dont think so. I think that there is certainly a belief that High Frequency trading is somehow creating market volatility. October 19th, 1987 there were no High Frequency traders and it was blamed on something else. Markets will be volatile sometimes. Thats part of investment and we dont think that theres a relationship between what we do or even what High Frequency traders do and what were seeing in the markets. What kind of data would your algorithms be analyzing. In trying to figure out where theyre going from this. The last three days have been. And this was overbought. Everyone is convinced. It looks like last time. It looks like right back in 1950 or 2000 in no time. And in fact our models are going to say wait main. This is a time that it would rise. Its what the model is telling you to do. Im conflicted but we follow the systems. Thats the point. A quantitative strategy needs to take the emotion out of it and thats the value of using a system and not your emotions. Are you as bearish as your model suggested you would be. Its better than i am. You must have a real view of where the market is. I do. I think its a little high today but tomorrow i may be very bullish. Its only a day or two at the time. Obviously the high correlation between the price of oil and equities is important to you. How long in terms of your Historical Data does it suggest that this can continue . What we find in terms of longer terms is they generally go a lot further than people believe they can. So right now our models are selling rallies in oil because they said okay this trend is not over yet. They can be convinced otherwise but i think we all had this experience of saying well this is the bottom. If its cheap at 38. Its cheap at 35 and then its 26. Well, the best bet right now is that it goes back down. Well make that the last word. Thanks. Thanks for coming in. Thank you. Coming up, the Worlds Largest retailer hits a wall. Walmart drops today after reporting weak numbers. Find out if anybody on the desk is bargain hunting plus one analyst says theres a transformation under way at ibm that investors are just missing. That stock is on the move on the call. Were going to debate it and we keep an eye on oil as well. There it is today up nearly 1 . Almost 31. Can the rally hold . Youre watching cnbc first in business worldwide. Ive been called a control freak. I like to think of myself as more of a control. Enthusiast. Mmm, a perfect 177degrees. And thats why this road warrior rents from national. I can bypass the counter and go straight to my car. And i dont have to talk to any humans, unless i want to. And i dont. And national lets me choose any car in the aisle. Control. Its so, whats the word . Sexy. Go national. Go like a pro. All right. Walmart is the were back. Hi. Hey, seema. Hey, scott, how are you doing . Were talking walmart right . We are. One of the worst performing stocks. Shares falling nearly 4 . The company reporting 4th Quarter Results that beat but walmart did cut its out look and report disappointing sales. The lower forecast is being blamed on recent store closures and the impact of the stronger dollar on its international stores. Keep in mind despite todays losses walmart is still one of the best performing dow stocks this year. Up 3 in 2016. Keep in mind target fell as much as 1 earlier as we look atwal mart shares down about 4 . Thank you, seema. Second best dow performer year to date. Its an example of a 2015 laggard which was 86 at this time last year. Its up 3 year to date. And to petes point you have to have for an extension of the s p rally more than just the laggards doing well. As it relates to walmart theres no surprise that a currency head wind exists for walmart and you have to ask yourself does that remove itself any time soon . I dont know that it does. I dont imagine that youll get very hurt here. I cant see it going strongly below 55. Its trading 62. But the upside is limited too. Its not the par rom meter it once was. Theres competition out there and it has bb working and hitting market share overtime and all the discounters as well out there at the various dollar stores. Its become a high, high area of everybody is going after those dollars. Theyre saving on gas. Theyre going a little bit of everywhere and thats the problem in term of guidance. You would agree with that, right . Absolutely. Best case its a gdp minus stocks in term of growth and same store sales. Its not only the comp physician costco. Its going more toward services and experiences than going to buying goods. Its going to be up or down a little bit. Not a big deal. And sales guidance. The currency head winds. Currency head winds. Same store sales because of gasoline a little bit lighter but what did they do for you . They beat by 3 cents. Its going to be flat. Thats why people are hitting it here but they gave you a 2 bump in the dividend or whatever. Its 50 cents now. I dont see a reason to go running out of this stock. Its 63 a share or whatever it is right now. Lets do a couple of calls of the day and one of them is getting a lot of chatter today. Ibm upgraded to overweight. The transformation she says is not priced in. She moved from the price target from 135 to 140. I dont know that theres a lot of conviction behind this call. Shes talking about a lot of the old businesses. Im going to stop here one second. You have to have some level of conviction period to even make this call. Sure. Dont you . To make this call at these levels some conviction but do you feel really comfortable the fact that she moved that price target from 135 to 140 based on where the stock is now . It doesnt give you a whole lot of upside scott. She is saying the transformation is in place. The data, cloud, moving in that direction. Theres something to hang your hat on but i think that the problem is theyre still lagging behind microsoft and the gains that theyre making and aws and some of the other names in the space in terms of cloud. Thats bait of a problem. Its going to be a head wind. I still think for ibm going forward. To their defense and its not whether im going to come to ibms offense. I agree with everything pete just said but the acquisition which is the biggest in three years in the hemalth analytics space it speaks to what theyre trying to do in the industry. Is it enough to move the needle, not necessarily. But if you look out 2017, 2018 as it relates, yes it could be something that accelerates revenue for them and gives you a reason on a longer term basis like warren buffet to buy it. Better start averaging down now. When she was neutral on this one and since february 2013 she has been out of this for clients and the stock was 200 bucks back then. Slammed down to what the slow low is here. After ternings. Its back to what it was after the earnings and the earnings were flat. This is like the walmart situation as far as is she saying, yeah . A lot of growth coming here . I dont think so but i thits a hold. I dont think its a screaming by after the 7 run today. Amazon upgraded to buy. What do you think of this call . Youre holding it through all of this and if you think you missed it youre thinking about getting in but youre not sure because youre thinking that it may go lower because valuation is still so stretched so to me amazon is the same store regardless of whether its 900 or 600 or 300. They revealed what they were doing. Heres what it is. I happened to have a bias toward amazon here. It doesnt fit value screens. And thats what they want to do. If you can do it, you do it. You have the two biggest animals in the herd fighting here. Amazon has the delivery theyre making in roads in. The Home Delivery of groceries and all the rest. I see the packages coming in all the time. As far as google getting into this business with google fresh in a big way i just think its going to be a blood sport. I think this thing is i think its based upon this drop. You look at the six points that were put out there on why the by. The points is its down 25 and this is the most reasonable its been. The most reasonable but still unreasonable to the point. Its so hard to get your arms around this stock, scott. When you look at the valuation and the pe. Even on this 25 drop. You need more than what they gave you in this call. The greatest thing that stood out to me was this 25 drop gives you taunt to buy it at these levels. You need an accommodating market backdrop to own the stock. I ended it last week to the portfolio. Up 9 over the last five days. Its nothing more than intuition. Its what pete and steven are talking about. Stabilization in the overall market. Its a strong name from 2015. All the theoretical thousand word type of stuff doesnt matter. Its intuition. Its a good one. I would stay with it. Coming up well give a check on the oil trade plus twitter gets a vote of confidence of sorts. Should you follow their lead and its apple versus the government. What happens now that tim cook has said no in the name of privacy. A mon amon has the latest there. 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Let us help grow your companys tomorrow, today at business. Ny. Gov were watching crude oil today. So is jackie with the futures now traders. Crude oil is higher on the session although we did pair some of the gains after that inventory report. Im going to start with you. Million dollar question here. Are we going to hold over 30 barrel . I think we will hold over 30 barrel. The story has changed too and part of that story and were tired of hearing about it is the dollar. I dont think the market feels were going to tighten as strong as before. Today the fact that we have a plus sign on us despite the inventories and the rumblings from saudis saying it was fine yesterday but were not going to cut production at all and we still have a plus sign is a good sign. Id like to see it settle over 34 though. Youve been a bull for awhile. Still bullish . I am still bullish. This has been a very slippery volatile trade. Were seeing some closes above 30. Its a little sticky. So technically be very careful and into the april contract tomorrow by the 36 in the april. For more futures now tune into the live show at 1 00 p. M. Eastern. Futures now. Cnbc. Com. Were talking to david stockman. He is taking a bearish position in this market. The worst isnt over yet. Coming up, the inside story at twitter and yahoo . What executives are doing at both of the companies that could move the stocks higher. What is likely to happen next in the battle between apple and the fbi . Those details straight ahead. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. They say that in life, we shouldnt sweat the small stuff. But when youre building a mercedesbenz, there really is no small stuff. Every decision. Every component. Is an integral part of what makes the 2016 cclass one of our most sophisticated cars ever. Because when youre setting a new benchmark for refinement, it is the small stuff. That makes the biggest impression. The 2016 cclass. Lease the c300 for 399 a month at your local mercedesbenz dealer. Man 1 he just got fired. Man 2 why . Man 1 network breach. Man 2 since when do they fire ceos for computer problems . Man 1 they got in through a vendor. Man 1 do you know how many vendors have access to our systems . Man 2 no. Man 1 hundreds, if you dont count the freelancers. Man 2 should i be worried . Man 1 you are the ceo. Its not just security. Its defense. Bae systems. Im Sharon Epperson and heres your news update for this hour. Pope francis and donald trump exchanging words regarding immigration. The pope suggesting trump is not christian for calling for a border wall between the u. S. And mexico. Trump responded by saying a religious leader questioning a persons faith is disgraceful. Governor scott walker signed legislation that would cut millions of taxpayer dollars for planned parenthood in wisconsin. He signed two bills at a clinic that councils abortion alternatives. Nikki haley joining marco rubio in greenville after endorsing him for president yesterday. She introduced him to a group of supporters this morning hoping to shine the light on a new, younger republican generation. An electric shock hazard prompted apple to recall about 895,000 ac adapters and plug adapters sold in the u. S. And canada. Apple received a dozen of incidents overseas. Thanks so much. Well a new report out today. Revealing more potential trouble at yahoo . Key User Engagement dropped significantly over the last year and whats more the wellknown analyst writing today that potential buyers of yahoo s core business are growing frustrated with the companys board. Bob, the board is telling as many as 20 buyers to talk to the hand. Whats going on. On the information there, we looked at them that should have corroborated that. That leads you to the core sales process and you need to have this process done thoroughly but speedily. As the court starts to deteriorate as hirings and firings take place. Youre having a lot more pressure on the court here so we think its important to have a fast process here. The potential price goes potentially lower and lower as this drags on. When you say you have to have a fast process you talk about you being yahoo better have a faster process or who knows at what prices theyre going to go for. Exactly right. So were hearing reports out there that the people that have expressed indications of interests arent getting speedy relies. So its raising the question of how speedy the company is taking it. What theyre doing is setting up the process so that opening it up they get what they need to the potential parties and get a speedy resolution which we think can happen. What heeds you to believe theres as many as you write in your note today . We had a lot of conversations around the industry. The number could be higher than that believe it or not but we try to focus on qualified buyers. One that can afford to pay the most. The two leading candidates are verizon, at t and they publicly have spoken about this. We think theres more than that and if the strategics arent willing to pay an appropriate price, the financial players will keep them honest. You think though that publicly traded companies are the most likely suitors here rather than a take private deal. And the reason why is a company like verizon already owning aol they have so many cost overlaps that they can really balloon when they eliminate the redundant costs so hen it would be a higher price. Lets switch to twitter before i let you run. Interesting news of insider buying. The cfo buying some shares. The chairman as well. What to make of it . Its a step in the right direction. 2 million over kordestani and its a step in the right direction but one of the questions we asked is with your stock down 70 plus here at these levels, where are Share Buy Backs. Why arent we seeing a Share Buy Back or why arent we seeing executives buy at these levels . We like the fact that both of them are buying but its a step in the right direction. Let me take you back to yahoo . I wanted to ask you something that i forgot to. The likelihood of a proxy fight at yahoo . You starboard in there and they could do that. Does it happen . The best situation you dont get to that point. However what were telling clients is its highly likely. The window opens on february 25th. Our guess is theyll wait toward the end of the window to put that slate out there and hopefully you can come to a resolution with the board and with management before then but if not youll see a fresh slate put out there and theyll enact change. Its inevitable the core gets sold. Its a matter to who and what price. Appreciate your time as always. Appreciate it. Bob joining us again today. First of all, lets do twitter because thats easy. Thats position defense. They didnt want to come out and buy it. Analysts were asking 250 grand where he works and spends all of his time. That looks like weekend tips for you, scott. In terms for the billionaire buying a couple of minute, also means nothing. If you then move over to yahoo and then this is just such an atrophying story. To me whats going to be left after a strategic buyer comes in that could pay it. Theres room if the portfolio which would be a small position if you put it in there and if it works out great. But sounds like the board has got to go. Im wondering is it possible to have a debate between which if you had to buy one of the stocks today which one would it be . Is everybody in agreement on this . I dont know if we are. Id lean toward twitter. Its in my halftime portfolio. I took it off yesterday scott. But i love the fact that i like seeing some insider buying. Why not . We saw what happened with steve wynn and he made three monsterous trades in there where he bought almost 2 million shares but this is nothing close to that. I understand what youre saying. Much smaller but at least theyre doing something and after that Earnings Call he has a 20 price target on this but he came away much more positively than you would have expected given the fact that it stayed basically flat. Other things in the pipeline. So petes twitter. Im twitter absolutely. I think yahoo is here or lower on that take out. So i think its a take under. If youre asking me if i put the same amount of dollars into each you make money into yahoo here. I think theres still too much optimism on yahoo and twitter the risk reward is very, very attractive. Not much down side. Youre asking me who is better . The 76ers or the lakers . Twitter or yahoo . One trade right now on one of these beaten, broken down things. What is it . Puts with it . Give me an answer. No. Yahoo you just did that. My enthusiasm. Not a huge upside. How to do the spin tax efficiently. The same thing if i figure out how to be 67 and join the nba. The judge gave you an order. Just kidding. Speaking of judges orders. Lets turn now to the tech controversy that has everybody talking. Apple taking on the fbi now that tim cook refused to hack the iphone of one of the San Bernardino shooters. So what happens next. We tried to look forward here and we need to see where in the legal realm of things this goes. And whether it could factor into this entire conversation. Its an interesting question. If you get the feel of it it feels like both sides are dug in for a long side. So they want to fight this on this particular case because of the fact and circumstances here. Apples tim cook putting out that personal letter and where this goes is apple now has four days left to respond to this court order. They dont like what they hear. They can appeal that to the ninth Circuit Court of appeals. That might be more favorable to apple than an east coast court would be. It would go to a three judge panel first. And if that is appealed all the way up that high, after that the next stop is the Supreme Court. That is everybodys guess. We can be talking months or years before this process gets up to the Supreme Court. And with the ending of the Obama Presidency we have no idea what the Supreme Court make up would be by the time this case would ever get to that level. Let alone what the outcome would be. Thats part of whats fast nating for the whole case. Thank you so much. Very interesting. Can i get one quick promo in. Well be talking about this live on facebook at 1 30 this afternoon. So if you have questions well be taking them live on facebook. You got it. Any time. The latest from dc. Do you have an opinion on this . I have to agree that the Largest Technology company in the world can figure out a way to get a dead terrorist information without compromising or creating a back door for everybody to hack into. So im more on the fbis side. I believe in privacy strongly but i think theres a solution. I want to give you a promo as well. We have a huge interview coming up in the next program. Thats power lunch and youre going to hear from apple cofounder Steve Wozniak at 2 00 p. M. Eastern time. If theres one person you want to hear from and get their opinion on whats happening now, its that gentleman right there. The woz. 2 00 p. M. Eastern time on power lunch. Do not miss that exclusive interview. Coming up, lots of movers on earnings today including a gold miner, food stock, chip stock, plus watch out, joe. John is climbing the leader board in our halftime portfolio competition. Poor scott. You cant predict. The market. But at t. Rowe price, we can help guide your investments through good times and bad. For over 75 years, our clients have relied on us to bring our best thinking to their investments so in a variety of market conditions. You can feel confident. In our experience. Call a t. Rowe price retirement specialist or your advisor. To see how we can help make the most of your retirement savings. T. Rowe price. Invest with confidence. Im in charge of it all. Business expenses, so ive been snapping photos of my receipts and keeping track of them in quickbooks. Now im on top of my expenses, and my bees. Best 68,000 employees ever. Thats how we own it. Four trades on four stocks making news today. First up devon energy is lower after announcing a secondary price. Theyre trying to find the price. Expect to see more of this and you can see a rush i think pretty soon because nobody wants to be the last one looking for capital. So lots of oil stocks coming to the market. Nvidia. Strength across everything. 10 move today. Everything across every one of the segments. This is not just about being a pc type. Theyre not held to that. Theyre in gaming and automotive. Theyre in just about everything right now. Theyre doing everything right. The numbers are impressive and the stock is ready to break out and break through the 52 week highs. What is up with jack in a box joe. How about the all daybreak fast at mcdonalds. Thats what is impacting the traffic flows into jack and the box. I think its problematic. Its one of the reasons why the momentum has changed. They missed. Yeah im surprised by it. Of all the unconventional burgers you could say sonic is the one potentially that you could own. Jackinthebox. Shake shack. 36. Wow. 36. Wouldnt eat the chicken sandwich. You wouldnt eat the chicken sandwich again. You know what happens. The stock goes down. Thats impossible. Were going to have a shake shack day for lunch. I dont know what hes talking about. I may make him eat the chicken sandwich on the camera. New mining estimates missed estimates. Missed by a lot. Stock opened lower and guess where it is now . Up on the day. Stocks made a nice move to top almost 40 after this soft earnings report. What does that tell yoe you when bad news isnt helped with hard selling. Coming up what our experts are seeing that you might be missing today. Stick around for under the radar trades. Plus we have two competitors in the green in our halftime portfolio competition. Find out whats working for the traders at the very top of the leader board and as we head to break a look at the dow 30 heat map. Ibm got the upgrade today. Its leading the way. The dow is not positive. Its down 24. Were back after this. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound all right. Lets show you the halftime leaderboard because joe and jon are now in the green. Jim is trying to get there. Pete has some work to do. Got a little help from twitter today. Stephanie link has some work to do. You made some trades today. I did. Sold out of kre, the Regional Bank index. Also took profits on amicus therapeutics. The stock was up 23 . The options more than doubled, judge, from the time i was in there. So i know we dont trade options in this particular competition well, you base a lot of your trades on what the Options Market is doing. On unusual Options Market. This one worked out like a charm. Got me closer to joe and now well see how it goes from here. I want you to be closer to me, jon. Jik mo i can move, guys. We can do that. Cue the commodores music. Very uncomfortable. Yes. You can follow all the action at cnbc. Com pro. You guys know what song im talking about, right . Yes. I know you guys do. Its good. Lets go under the radar for trades you might be missing. Doc, youre watching a travel stock on a tear. There are a number of them here that have been working pretty hard to the upside despite the fact that youve got zika which has caused people to change travel plans. You take a look at priceline group, pete talked about it yesterday with the big move. Today this big move continues. Okay. Steve . Caterpillar. They presented at the barclays conference. They had said this year is going to be down 10 . I think the stock is still vulnerable. And toro. Today it got within a dollar of alltime highs. Law mowers . Lawn mowers snow blowers. They do a little bit of everything and they are killing it and this is a company thats not just u. S. This is global. 90 countries. Theyre still destroying it. Record numbers this quarter. Keep an eye on this name. Minnesota based, just so you know. I want to see how quick the folks are. Can we get the come dors to take us to break . Second half trades coming up next. Well have it after the break. 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Know that our dedicated teams of local experts offer insight to help you achieve your business objectives. See how working with pnc can help your company grow at pnc. Com ideas steve, other than making im here atme move stuff,rade trader offices. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. I want to show you what the markets are doing right now. Theres the s p 500 down by about five points. Crude oil watched closely, of course, is higher by 1 . The overall market though as you can clearly see has not been able to get back into positive territory. Three hours to go. Lets get your trades to go for the send half. Joe, what do you got . Just in terms of the overall market and while we talk about algorithmic funds, keep in mind tomorrow afternoon will be incredibly important in terms of extending the rally. You get a strong close in equities, strong close in crude, i think you will see more Short Covering to add upon what weve witnessed so far. Steve weiss. Im looking at the market like joe is. To me thats whats most important. Can they hold levels or do we see a selloff particularly after you see energy closing. Interesting crude is higher by 1 , overall stock market, doc, not yet able to follow that. Yeah. Perhaps theyre not believing in it, judge, because, of course, the inventories were up 2. 1 million i think or Something Like that as far as crude oil. The unusual or the part that im watching into the second half of the day is ca. Its an i. T. Service provider and this one has unusual call activity, so are you in it . Yeah, im in this one. Bought it today because of that unusual activity. You can see the stock is higher by about 1 . Pete . Love to see the financials. We talked about it a couple different times. I would love to see the financials be a bigger participant in what were seeing in the markets. Yes, energy has been great. Materials have been fantastic. Weve seen a little bit of a bounce out of the biotechs and other areas of the market but the financials have continued to lag and is it europe still sort of an issue theyre concerned about . Im not really sure. Steve and i were talking at the break about schwab. It has been knocked down pretty hard. Saw some call buying in there as well. Im not in it yet. Might be before the end of the day. Its interesting to see schwab down here. Just quick, natural gas down 20 . Going back down again, approaching the 175 level from december. 185 right now. Thats a commodity that you want to watch. Not getting the attention it should. We always like to talk earnings as well that are coming up. You have nordstrom. Thats the read on nordstrom . The expectations are so low in the entire Department Store space. But its made some moves already even recently. End of last week into this week and i know jon put on a position and theres huge call buying in there as well. I like the diversity of what they bring to the table with the discounter, with the online, what theyre doing at the upper end as well in the main stores. I think this is going to be a very Strong Quarter actually, quite frankly, for nordstrom. Doc . That is exactly right. I did sell 5250 and 55 and 57 calls against the stock that i bought and against the options that i held last week. So you made some trades. Nordstrom not for me. Continuing to of a tough time as was macys. Thanks to all of you. That does it for us. Power lunch begins now. Scott, gentlemen, thank you very much. Welcome, everybody, to power lunch. Tyler mathisen here along with michelle carusocabrera, melissa lee, brian sullivan, and we have a jampacked two hours coming your way. Going to kick it off with a look at yahoo as Marissa Mayer once again makes the case for mobile. The question is, is yahoo one to love or loathe. Well dig in on that one. More ahead this afternoon as the markets fade as well. Stocks struggling now to make it four Straight Days of gains. They were in the green earlier. Now just slightly in the red. Later, with he will talk to Steve Wozniak,