Month low. Fell 4. 2 . The worst quarter for the dollar index since 2010. We know its helped. Is it still going to do that . It has helped and is going to continue to help. I think a lot of commentary on the upcoming earnings, the guidance looking forward is going to talk about the previous challenges, the headwinds appreciatinging presented. Now thats dissipating. But in terms of longterm portfolio planning, i dont think we want to get overly excited and think we had the u. S. Dollar drift from an uptrend to now a down trend. I dont think thats the case. This is a correction, good nor another weeks. But after that, we need to look at where the dollar is going to be on a longerterm basis. I dont think its going to be down. Pete, a quarter of the russell 1,000 generating more than 50 of the revenues overseas. Yeah. So its going to provide or has already provided a significant benefit that coincides with the rally we have seen. No doubt about it. I think if you look at where did we see the biggest rally is in the xlk. Technology, we talk about all of the time how much is overseas of that profits. To joes point, its huge. And i do think its much more temporary. I think were going to see the dollar go all over the map over the next couple of quarters, at least. And beyond. I think were going to see it dipping. Its going to be great temporarily and then we start to see it rise again. So Rebecca Patterson, whats your view . I think we have had an inflexion point. The dollar appreciation trend since 2011 has moved into a dollar range. So that doesnt mean the dollar keeps falling out of bed month after month. But a range, something boring would be music to the ears of every corporate treasurer in america. Because if you have stability, you can plan around it, you dont have earning surprises and i think at the margin, thats good for equity sentiment. What keeps it from continuing to go down . Fed policy . Fed policy is a big piece. And on the other side, the European Central bank, bank of japan. 114 for euro dollar. Were getting close to the edges where youre starting to get verbal intervention from those central bankers. And we will price in a fed move over the coming months, i think. So, again, thats the dollar range. But a range is a change, and its a good one. Yeah. Not soaring out of control. Caught a lot of people flatfooted over the last couple years. Thats why Jim Lebenthal, we had some issues in the market we did. And earnings. But now weve got new earnings season about to develop. What do you expect . Well, i expect the reports for the First Quarter to be rather tepid. Two out of three months of the arrest quarter, we had a lot of tir mail in the markets. What im paying attention to and everybody is paying attention to, whats the guidance, whats the spoken language as far as the second quarter, and as far as the second half of the year goes. And based on what were talking about with the dollar, theres reason to think theres going to be enthusiasm from the c suites as far as what the second half can bring. If you think the dollar is going to remain weak well, i dont, by the way. Im just saying not you specifically. But you more broadly, if you think its going to be weak, thats a green light to keep buying stocks. If you think the trend is going to reverse itself, isnt that a bit of a headwind to make you want to question where we are . How far weve gotten and how fast weve gotten back. To where we are. If you think the uptrend in the u. S. Dollar resumes itself, you want to look at domestic names. Technology overseas. You want to look away from that and go back to the playbook in place at the end of 2015. Where you wanted orientation. The one lowhanging fruit i see globally is the japanese yen, appreciated 8 yeartodate. The nikkei down 15 . If you tell me the u. S. Dollar is going to walk higher, the bank of japan will come back in again, i would say over the next six months, look at japanese equities. If you look at u. S. Equities, ba reaney out with a note today saying 10 of stocks are at alltime highs. If the overall market is just 3 or so from its own alltime high, is 10 a lot . Or a little . Mike santoli posed that question earlier today. I dont think being at an alltime high is possibility. Psychologically you get excited or scared, because things have run too far. But i think it depends on the environment youre in. Im just wondering, is that representative of how far we have run, or is that mostly representative of we could still run a lot more . What do you make of a number like that . What youve got to make, there are still sectors that are not even close to their highs. So certainly a lot of the industrials, transports still not close to their highs. And i think thats a signal. The number youre giving us, scott, that you really want to look at rotating. And i just want to point out, weve got these march figures looking good. The ism survey better than expected and the regional fed surveys. Thats probably going to give some cover to the fed when it wants to embark upon further Interest Rate hikes that manufacturing is doing well. So youve got to be nimble here. Youve got to be in and out of these sectors. Can we clarify on the green light part of this thing . Its not necessarily a green light. It just opens up the window, scott. Because now all of a sudden one of the many headwinds, and we talked about oil for a long time. Then it became the dollar. But the biggest headwind, the single biggest headwind over the last two years has been the pace at which the dollar rose. Right. And the fact were seeing that come back makes it easier on a lot of companies, but it doesnt mean every Single Company because of their international exposure, they still have to perform. There are a lot of companies out there that are not performing well, those are the ones that arent hitting 52week highs. Some that are, because of the help theyll get from the dollar, theres plenty of room for stocks. I agree and i would add just because the dollar is less of a headwind doesnt mean you might not have others. We have the uk vote on membership in june. What about here . Exactly. I was going in chronological order. Who knows what happens july here. You dont want to get overly ex union rabbit. Thats the point. Dont look where were going. The s p up 1 . It feels like we have rallied dramatically. Think of where we were in january. We were talking about possibly going 20 . We have rallied dramatically, though. From mid february. No, lets go back from the beginning of the year. And lets see, you know, where we went to start the year. We were down 10 . Looking at a down 20 call for the s p. For most people, for the year. Now were up 1 . I still think david costin has it right. The problem, too, a lot of these stocks to what youre speaking to, joe, have rallied in and of thepz. That leads us to an interesting downgrade today. Our call of the day. This ge downgrade by bernstein. And its really with some other industrial stocks, as well. But it place right into the conversation. I know you like industrials. In this environment. Stock like ge is up nearly 30 over the past year. Tap the brakes. Does bernstein today. They said, look, premium multiple companies have limited multiple expansion. So maybe the party thats been a great ride, but time to move on. Thats what they say. We have actually been underindustrials for some time and energy and materials. Were starting to nibble in those sectors. The point with the downgrade, a few other stocks included, were talking about getting more into cyclicals. Reducing the defensive posture. And if manufacturing is i wouldnt say its good. I think thats overstating it. But to say were getting out of recessionlike territory and stabilizing, that is the new good. Right . If manufacturing is stabilizing, commodities are stabilizing, the oils and dollar is in a range, that does open a window for some of these underperforming sectors to catch up further. What do you think of the call . Multiple at 21 times makes it no margin for error, catalysts already baked in. And you need a lot of other catalysts to take it much higher than its gone. That being ge specifically. I dont have a position in the stock. A lot of people watching do. I think it can go higher from here. I question a valuation call like this. This may turn out to be right. 21 doesnt strike me as nosebleed territory, particularly when you consider the transformation ge is going through. So im not going to buy the stock here. But i dont think this is a rabid call to sell it. No, it was look, the analyst was on one of the prior programs. I think squawk on the street and it wasnt a negative on the fundamentals of ge. The stock has done a lot, up nearly 30 . The its perfection right now. Well, i dont think its perfection. I think thats too strong a call. The problem is valuations can stay high a lot longer than you expect. And especially if the market is going higher in the short term, as many of us think with the dollar weakness we have been talking about. Ge will absolutely participate in any broad market rally. Pete, you own it. I do own it. Calls just a week or so ago, i took those off. Does this make ayou want to question the nearterm . I dont question, but understand why they want to downgrade. We have had such a great run. Why not . From a timing perspective, it makes some sense. I think the fact that they have shed the assets look at the forward pe of 17. You look forward, trading at a 17. And youve got to look forward with g e. They have been shedding so many of their assets that were somewhat of the weakness they had for such a long time, the financials and continue to move into other areas they feel the growth is going to be. A lot of us question it for a very long time. But the move has been staggering this year already. They even point out, getting rid look at the yield. Yeah. Already baked in. Ill tell you what someone else who bought ge and has been very bullish on the stock as our own josh brown who joins us on the phone. Josh, are you there . Hi, guys. What do you make of the called today, josh . Lol. Let me tell you something. Any time you see a company get downgraded, because theres really nothing bad to say, but its had had a big run, thats one of the all time best times to put a name on your radar. Not necessarily pull the trigger, go long. But that is a signal. These guys have nothing new to say. And, in fact, i dont think ive ever seen anything like this. They downgraded, but raised the price target at the same time. They went from 33, 34. Let me tell you whats really going on. Sell side firms employ analysts so they can generate trading on the desk. Thats the business, not a public good. Theyre not doing it for fun. They want people trading ge to trade with them. So heres a comment. I dont particularly think the analyst dislikes the name. No, he said he was on the earlier program on this network. I dont know if you saw the interview or not, but anything but a hate fest on ge by any stretch of the imagination. It was, look, its a premium multiple. The catalysts to take it further are lacking and real issues that need to be dealt with by investors, nothing more, nothing less. I missed the interview. No tv monitors at the duncan i was at. Heres what i think. The stock has had a big run, no doubt. It is selling at a premium multiple to the market. My argument is it deserves to. I point to Something Like a home depot or nike as evidence this kind of downgrade is not particularly helpful for investors who have a time horizon greater than six months. Home depot up 40 over the last five years. Never been cheaper in the market. And continued to earn the higher than average multiple that the market was rewarding it with with execution. I dont think anyone can look at what ml has been able to accomplish the last couple years in terms of deleveraging, getting out of bad businesses, changing the messaging, et cetera, et cetera. And say this company hasnt continued to earn. So could it pull back 100 . Is it to some extent a market stock . Of course it is. A 300 billion market cap. Youve got a good yield. Youve got a company thats in every business you want to be in for the future. Whether internet of things, aerospace, health care and a company that continually does what they tell the street theyre going to do. So if there is no catalyst for the next six months and thats the worst thing you can say about the name, thats a buy. I have a question. I own the stock as well. I have for many years now. This is my question. Health care. Is that a risk . Do you see that as a risk right now . What know what a lagger its been and last week a move on health care in the biotechs, actually final starting to move to t to t to the upside. Do you view that as a hang on ge . I think its important to recognize which part of health care ge plays in. They are not developing drugs. They are not pricing pharmaceuticals. On the market. Theyre not involved in the areas that are being called into question directly. By the politicians. I think when you look at ges business in health care, whether were talking about instrumentation or consumables or any of the areas that theyve committed to, these are the areas that will do well regardless of a lot of the political decisions that get made about, you know, pills or pricing or generics. So im not really worried. And if that gives us a discount to continue to own the stock at these levels, then thats a blessing, not a curse. Josh, thanks. Get another doughnut. See you back on the set soon. Coffee, scott. Not doughnuts. Josh brown for us. Wealth management on the phone. Heres whats coming up on the halftime report. Still ahead, underappreciated. I get no respect from my wife or anyone else. Thats what Credit Suisse thinks about apple. The firm saying its time to buy the stock. The analysts behind the call joins us. And barron says one cable stock could rally 25 . Hello, mama. But do our experts agree . And we go digging for the most overbought and oversold stocks in the market. Well tell you how to trade them. Ahead. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Herthey work hard. Ade, wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry 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. Td ameritrade. Man 1 man 2 i am. Woman exmilitary . Man 2 four tours. Woman you worked with computers . Man 2 thats classified, maam. Man 1 but youre job was Network Security . Man 2 thats classified, sir. Woman lets cut to the chase, here. Man 1 whats youre assessment of our security . Man 2 [ gasps ] porous. Woman porous . Man 2 the Old Solutions arent working. Man 2 the world has changed. Man 1 meaning . Man 2 its not just security. Its defense. Its not just security. Its defense. Bae systems. We are back and its time now for the trader blitz. Four trades on four stocks making news today. First up, alaska air announcing a deal to buy virgin america, outbidding jetblue. The stock is down on the news. I think this is a great deal for america isnt. I think this is a great deal for alaska airlines. A lock in the northwest corridor. But now this is going to move them eastwest with the Virgin Atlantic route. Deutsche, joe, thinks facebooks results could come in light. Okay. Potentially, they can come in light. I still think the stock is going to 120, and i dont want to play that game. I almost want to begin to play the facebook game, the way many on this desk, like pete and others and josh brown have played apple. Longerterm investing. Dont trade around facebook, not becoming a trading environment. Facebook, live, all the other things happening right now. Even if it pulls back, youre a buyer on a pull back. Time warner could rally 25 over the next year, according to weekends bar rons. Pete, do you agree . I do. Look at where the stock was, in the 80s i a year ago. Reason, a lot of failures. Superheroes huge for them. The pipeline Going Forward in this particular industry for time warner. Youve got aquaman, superwoman, all these various different franchises out there i think will suit them very well. I think 80 is not that far into the future. Joe, 276,000, model 3 orders over the weekend for tesla. Stock up another 5 today. This seems to have sort of blown away everybodys expectations, including elon musk. Four times the expectations, right . 35,000 pricing point. Specs look good. Everything about it looks good. Phil lebeau points out this morning that maybe a thing that doesnt look so good, if you want to frame it that way, and he didnt. But i will. Is you have to wait forever to get this car. You might have to wait until 2018. I dont know, 2019. Can they make all these cars . I think they can make all the cars and i dont know if 2018 is forever. And look, the bottom line, the stocks is appreciating. I was wrong last week when we discussed it. I wanted to pause, didnt want to step in too buy it. A fiveyear high. Im wrong and i think many others are. If if you look at straight pricing on the value of the franchise, its selling you 300 bucks. Ij not going to i dont know that anybody would suggest youre wrong. The thing that i see is not right or wrong. Its just a hesitancy to get into this name. Because youre worried about production. Everybody only talks about the valuation. Right. I think the other part of the element here is that we look at this thing and can they produce, scott. Like you were talking about. 2018. I do view that as a far way out. Youve got to put money down and all the people who lined up, put down some money. Not a lot of money. But into the future and when are they going to get that car. Something that has to be considered. Yahoo talks, takeover talks heating up, according to reuters. Time considering a bit on the internet assets and soft bank. Also reportedly interested. Pete, back to you. Makes sense because of the digital presence they want to get. A little bit bigger and exactly the direction theyre going. We have all known for a long time these assets are going to be spun off eventually. And here youve got time that would make sense if they actually did indeed, along with the private equity group. Okay. Pulte group boardroom drama, the ceo will retire early next year. Theres a look at the stock, down almost 7 . An interesting story today. This Succession Plan initiated by the founder the grandson, bill pulte, on this program a number of times. And also jimmy grossbeck who has been on this program as well. And who, by the way, in a filing we noticed was kicked off the. Yeah. Clearly, theres a lot going on inside the boardroom here. Mr. Duhgas pushed out. This may be unfair, given what happened in 07 to 09. In the last ten years, the stock down almost 50 , the s p 500 up 60 . If you think thats unfair, definitely over the last threeandahalf years, the stock stuck between 15 and 20 with a spike above once or twice. Whats going on here, the stock has been stuck and the board has said we need to do something. They talk about a new direction. But theyre a Home Building company and im not sure how much a change in the ceo slot is going to change the overall macro dime mix of Home Building now. Youre in the sweet spot as far as the cycle goes. Homes should be picking up. I think new ceo comes in. The i question whether there is a fair move. A boardroom shuffle for sure. Depending on what metric you look at. You point, okay, well, because of the great recession, you would expect things to have not been that great. But then you also point out more broadly over a longer period of time, the stock underperformed. What im saying is, the you could definitely justify the boards decision here. But at the same time, you could also justify that this is not one mans position to really move this stock. Its really going to move with what the feds doing, what the overall economy is doing. Thats where i question the fairness. Also moving today perhaps on zelman downgrading it. That did happen earlier. As shes reminding me right now they downgraded it today, as well. So down like 7 . We like it or no . I dont know. I want to see what happens. I still think when you look at the space, the space is going to be okay throughout the remainder of 2016. We have talked about toll, orton, names you could look at on a day where this name is down significantly. Okay. Coming up, the missing link, the consumer stock stephanie is buying. Shes going to tell us after the break. And apple on the move today as Credit Suisse says the market is missing a key growth driver. As we head to break, take a look at the s p. S p flat. Theres a look at your market picture. Back after this. Want to hear more . Head to cnbc. Com halftime for exclusive commentary and behind the scenes access. Is all about seizing opportunity. So im going to take this opportunity to go off script. So if i wanna go to jersey and check out shotsy tuccerellis portfolio, whats it to you . Or im a scottish mason whose assets are made of stone like me heart. Papa youre no son of mine or perhaps its time to seize the day. Dont just see opportunity, seize it applause welcome back to halftime report. Yoegs another set of records highways for the consumer staple stocks. Cooking, cleaning, whatever. Beverage giants cocacola and pepsico lower and package food makers like campbells soup and General Mills. Personal Care Companies like kimberlyclark, tobacco companies, Phillip Morris international, all setting record intraday highs at one point today as the hunt for dividend yield continues. Moving away from the consumer staples, more to the discreationnary side, gap also focus today on the heels of an upgrade to overweight by analysts at key bank, 36 target price. Citing among other things, back seat overall apparel demand and currency environment. So consumers certainly a focus for traders today. Dc, thanks to you. Rebecca, you like the consumer plays . I think were an environment where the consumer has growing tail winds. Youve got more and more jobs. We saw that with the jobs report friday. Wages rising slowly and from low levels. Going up. Home values going up. And i think Steve Liesman and his poll today showing us home values matter as much as jobs. So i think that that keeps the support under discretionary and staples. Pete, consumer stocks trading at alltime high, home depot, mcdonald, he is at a lauer, cocacola. Yeah. For a of reasons. When you look at pepsi, you also look at cocacola and spread themselves away from cola products, and into milk and Everything Else. People are looking at these names and feel very, very comfortable with where theyre trading right now. They dont feel theyre too stretched. Probably a bit stretched. I was going to ask if you think which would you say are daggone stretched . Pull the register. As much as i like minnesota, wonderful company, General Mills, feels like its stretching to me right now. But i think some of these other names, can continue on. Just based upon not just the yield, but they still have growth in certain parts of the economy. And outside the u. S. As well. Jimmy, buys or sells . For our clients, we hear them calling in and asking for yield. This is where we go. Having said it, thats really the only reason we go there. We dont see the growth, notwithstanding, rebecca, what you said. A cocacola energy drinks, though. A tiny fraction. Milk and some other things . Are you joking . No. I thought you were being sarcastic. They have gone into a lot of other product lines to get themselves away from coke. Yeah, but none move the needle. What about mcdonalds . I think you have to make the distinction between the creationnary and staples and yeartodate. Staples are trading at a very rich valuation based on historicals and a lot is because the tenyear treasury has imploded yeartodate and youve got the affect that i dollar. Consumer staples to me, are names right now you want to look at as being sellers. I would take the money and i would put it into discretionary. Segue here. Do you use that same logic on the utilities and the tele coms . Im never one that gets excited over utilities to begin with. If people are chasing them for some of the same reasons that youre laying out, for staples again, youre talking yield, et cetera. Defensive. Ive never been a proponent of owning utilities. Not something i believe in. In a chase, i think theres other places you can go. And behind it, the fundamentals of the business, a lot is aligned of whats going on, whether natural gas or coal, or energy industry. So, again, youre talking to someone who has a predetermined bias being negative all of the time as it relates to utilities. Consumer staples versus utilities, would you rather have staples. You know what, its interesting. Where staples are right now, i dont know i would make that. I think the staples are incredibly rich right now. Incredibly rich. Last point. Props to josh brown, brought up church and white last week. 52 week high again today. Not so bad with baking soda. I do remember that. I remember that. Lets stick with the consumer for a segment we cow the missing link. Tiaa Global Asset Management portfolio manager, stephanie link. Is going bargain hunting in that sector today. Steph, nice to see you as always. Hope you had a good weekend. What did you go shopping for . Well, good to see you too, scott. I actually sold out of tjx. To your point of some of the stocks that look stretched to me, that is trading at a high valuation. And i took the proceeds and i put it into walgreens. Alliance boots. Not necessarily for the quarter, scott. I think the quarter will be fine tomorrow. Theyll probably issue some conservative guidance. And i would look to be buying if you see a dip. But i really like it because over the next 6 to 12 months, i see specific catalysts at the company that should drive the stock higher. And just a couple of things. They i think theyre going to see substantial synergies from the Alliance Boots acquisition. Theyre doing a lot of cost cutting. Theyre actually announcing a lot of new products, and it should drive better margins in their front end of the store. And i dont think thats priced in. I also like theyre announcing several different contracts with a variety of different pbms to narrow their network. To drive traffic. So thats really those are really two important things. And then, of course, you get the rite aid deal that should close in the summer or later and that could drive the 6 in earnings power by 2018. I like this one. Not at an alltime high. Thats the one im buying. Steph, see you back here soon. Tia as. Pete, give me a comment here, out of tjx, a stock you have liked for a long time. Understand shes moving things around, moving around the chip. I dont know necessarily that i think its over, though, scott. The growth they have been able to show over time and the ecommerce world on top of its still all about home goods. Thats what tjx is the driver. So i understand why shes making the move. I still think tjx has more upside. We search for the most oversold and overbought stocks in the market. The names that made the list and how to trade them. Thats just ahead. Plus, under the radar. The one area Rebecca Patterson says could be the next fla flashpoint of instability for the markets. You both have a perfect driving record. Perfect. No tickets. No accidents. That is until one of you clips a food truck, ruining your perfect record. Yup. Now, you would think your Insurance Company would cut you some slack, right . No. Your insurance rates go through the roof. Your perfect record doesnt get you anything. Anything. Perfect for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claim centers are available to assist you 24 7. For a free quote, call Liberty Mutual at switch to Liberty Mutual and you could save up to 509 call today at see Car Insurance in a whole new light. Liberty mutual insurance. Im a Customer Relationship my namanager with pg e. Er, ive helped customers like plantronics meet their Energy Efficiency goals. So you save energy and you can save money. Energy efficiency and the environment go hand in hand. And i love how pg es commitment to the environment helps a Community Like santa cruz be a better place to live. And being able to pass that along to my family is really important to me. Just being together and appreciating what we have right here in santa cruz. See how you can save energy at pge. Com. Together, were building a better california. Hi, everybody. Im sue herrera. Here is your cnbc news update for this hour. Brussels airport increasing the number of departing flights on the second day of its partial reopening following last months terrorist attack. Over 20 flights expected to leave today, including one plane bound for new york. Yesterday, the airport handled just three departing flights. U. S. And philippine troops beginning their joint military drills. About 8,000 soldiers expected to join the twoweek exercise. Defense secretary carter will arrive next week to watch part of that training. Princeton university announcing Woodrow Wilsons name will remain on the public policiel school, despite calls to remove it because the former president was a segregationist. The school has borne wilsons name for more than 80 years. And a report says that airlines are losing fewer bags, and more of their flights are arriving on time. But passenger complaints still jumped 34 last year to the highest level in 16 years. Virgin america topping the 2015 Airline Quality ratings, followed by jetblue and delta. And that is the news update. Scott, back to you. I know a lot of the people on the desk there fly constantly. They do. They do. Sue, thanks so much. Sue herrera. Apple on the move after Credit Suisse adds the stock it its u. S. Focus list. The firm saying there is an underappreciated driver for the stock the market may be missing. The analyst behind the call joins us. Welcome back. Hi, how are you . Are this catalyst is service is business. Which you think can double by 2020. Which has some people asking today, is that too big of a bet to make . Well, thats correct. We did a deep dive into Apple Services and our conclusion is the market and all the underappreciates how big this business is from a profit contribution perspective. Also its growth potential. So we see the gross profit contribution doubling to 30 . And what gives us confidence about this growth, remember apples user base, 1 billion devices around the world, 6 money million unique individual users, use apple products. They are highly after fluent, attract very young. And as apple rolls out new services and continues to grow things at the app store and icloud and ramps up the Music Service as well as tv service, we see strong growth for the segment. I wonder im going to twist it and frame it another way. Is this in any way a representation that while you have such high hopes for the Services Part of what apple does, that its an indictment in some ways of where you think the iphone can continue to grow, so thus youve had to look for another area that can provide the growth that now the phone business cannot . Well, we have been on record as saying for the last two or three years, the iphone business is definitely the latter stages of its growth. They are selling 220 Million Units a year. Its 150 billion business. Frankly, they bring more towards there is some growth there. But frankly, fairly moderate. And so we have always had that view. Whats different about this morning, if you have a services business, its recurring. So the way we see it, imagine you have a scenario for apple and this is very good for both margins and free cash flow. Two or three years from now, where services is 30 of profits and on top of that, some of these installment plans and growth in the hardway business. Half its business is recurring. Thats a very positive scenario for this company. And it actually actually mitigate some of the risk and diversifies a risk. Not everything becomes about the iphone coming out every september and how many do they sell in december quarter. It becomes a much more diversified business. From a stop perspective and evaluation perspective. Very positive. But you have to be clear on record, we have always said the iphone business and most hardware business is reasonably mature now. Jim has a question for you. Notwithstanding what you said, the services, apple pay, icloud, doesnt that drive more to the iphone . Isnt that the beauty of the ecosystem in general . They get tookd and stay with apple products . Absolutely. I agree. Apple has various services to some of these service business, actually see a genuine and direct commercial benefit when they see revenues. In other like i message, promotes higher usage. The end result of both things is the huge in apple products remains disproportionately high compared to the platform. Therefore we use them a lot and replace them predictably. And also use them so intensely, we actually have very high retention rates. In the end, it helped their hardware business, as well. What specifically is interesting about this mornings note, the specific gwth we can see in services, outside of the hardware business, as well. Appreciate it very much. Well talk to you soon. Thank you. The analyst over at Credit Suisse making the move on apple today. So apple is above its 200day right now for the First Time Since november 5th. The stock has had a breakout. Does it keep going . Absolutely. Its been on a tear. Does it continue . Youve got to look at this in a longer term cycle. Since may of last year, its very similar to the cycle we went through with the stock from late september of 2012 through the middle of 2013. It needed a form of base and new shareholders. Thats what its done. The se already coming out. Thats pro pelling it further. And this is going to crescendo into the iphone 7 for sure. I think a lot of what has happened so the event they had a couple weeks, it really wasnt anything very exciting. That got people to come in and buy the stock. But i think what has happened, the fact that it did not go down. Keep in mind, the passive money, the mutual fund money as it relates to apple, went to a historical underweight. We have seen that happen in the last couple years. Now as the price is moving higher, they chase their way back in again. Its kind of what carl icahn has spoken about in the past, where its almost like naturally being short on the passive side when you get out of apple. Right. I think thats largely whats going on right now. Thats the dynamics. I dont think much has changed fundamentally. What about the substance, pete, of this note making such a huge bet on the Services Side of the business . Yeah. Too big . Too big of a bet . Seems like its a big bet. But is it too g, im not really so sure, scott. Hes also talking this is something that i think look at the reaction of the stock today. Hes not talking about today. Hes talking about years in the future. 2020. A couple years. Right. So i mean, you have to i think you have to understand what his perspective is versus how the stock is reacting today. I will say this. On this reaction today, scott, the 111 calls over 20 plus thousand trading today. Buyers coming in early in the session, almost right out of the gate. 112 calls as well. Very, very aggressive. But its very short term. So people arent going out and time right now. They are going to the short term on this kind of a pop and then hes talking about much further out into the future. Rebecca . Its interesting. You can look at the company specifics, what theyre trying to do. I think you can extrapolate macro from micro. Apple is such a big weighting in the market if apple can move, whether its short term or long term, it has an influence on the entire stock market. So for medium or longer term investors, even if you dont own apple, youve got to understand hazard happening here. It will affect Everything Else you own. Coming up, the u. S. Tenyear hitting its lowest level, that being the yield, in more than a month we go to the futures or whats behind the move and how to play it now. Halftime report back after this. Some say free the whales. For them, nothing else is acceptable. But nothing could be worse for the whales. Most of the orcas at seaworld were born here. Sending them into the wild wouldnt be noble. It could be fatal. When they freed keiko, the killer whale of movie fame, the effort was a failure and he perished. But we also understand that times have changed. Today, people are concerned about the Worlds Largest animals like never before. So we too must change. Thats why the orcas in our care will be the last generation at seaworld. There will be no more breeding. Were also phasing out orca theatrical shows. Theyll continue to receive the highest standard of care available anywhere. And guests can come to see them simply being their majestic selves. Inspiring the next generation of people to love them as you do. Im melissa lee. Coming up on power lunch Panama Papers rocking the world of the rich and powerful. And juicy new details on what went down behind closed doors during the 2008 financial crisis. Should executives be headeded to jail . And the big money in allergy season. Top of the hour on power lunch. Melissa, well be there in 15. The u. S. Tenyear yield hitting its lowest level since march 1st today. Jackie deangelis with the futures now crew. Good afternoon, scott. Thats right, the yield youre talking about, that low today, 1. 75 . Janet yellen probably having something to do with that. Brian setland, what does it tell us about the stock market right now . Well, certainly the way youre seeing the treasury market move, people are a little weary where the stock market is heading. And we have seen the treasuries totally reverse course. They were so aloft at the beginning of march, thats changed. We found a bid, talked about janet yellin. Unemployment rate ticked up friday, concern for the stock market. People would rather own bonds. And when you look at the trend, to smooth out the returns. People look at bonds. Too many flat rates in the world, japan, germany. People want to come in and buy a tenyear. Any rise in rates, i want a buyer of treasuries. When it comes to the yields, what are the levels youre watching on the tenyear note and do you agree with brians view here . Jackie, when you look at the stock market, and the tenyear, we both saw these both rally since qe 1 started. The yield go lower, the stock market rally. So you know, having that happen at the same time isnt out of the norm. Right now, 1. 63 was set as a low on february 8th. And not wanting to mimic ryan, negative rates around the world, i imagine in the next eight weeks until the next fed watch which would start june 1st with that meeting june 15th, that will take a shot for those lows. All right. Well be watching closely. Head to the website, futuresnow. Cnbc. Com. Live show tomorrow, scott. Well be there, thanks. So interesting move in yields today. Not im sort of surprised they didnt get a move higher with rosengreen, boston, a voting dove, sounding a little hawkish. I agree. And usually when you get a voter who goes against his or her normal grain, that does move the market. Surprised. I think you have to take into context whats going on overseas, as during the last interview. If you have the european and jap lease threatening more negative yields, the flood of capital. We might have some Division Within the fed. But the global force is pretty big out there too. His view is certainly different than your view. He is almost speaking to people like you. Saying, look, Market Expectations of zero to one hike are in his words, too pessimistic. I think well get at least one this year. I think the fed wants to. And as long as the data continues to improve, the dollar normalizes, oil normalizes, well get 1 at least. I think the fed wants things priced in before it happens. So its not disruptive to the market. So theyve got some work to do to get yields up and that june move priced in. So youre going to have to see somewhat more hawkish rhetoric between now and then. Im curious to see as long as its not from the fed chair herself, who was very dovish last week at the new york economic club. And that seems to be drowning out some of the noise, so to speak, from the flanks of the fed. You do want to watch yellen the most, and fisher and dudley. Two and three. But rosengreen matters. He does have a vote at the table. All right. Coming up, dom chu breaks down a list of the most overbought and oversold. And Jim Lebenthal up 15 , in first. Were back right after this. 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. You should have quit while you were ahead. 32 years at this place and ive got 9 days left before retirement. Look jim, weve been planning for this for a long time. And well keep evolving things. So dont worry. Knowing whats on your mind and acting accordingly. Multiplied by 13,000 financial advisors. Its a big deal. And its how edward jones makes sense of investing. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. We are back and after the snapback for the major averages in march, which stocks are now the most oversold . And which ones are the most overbought . Dom chu joins us now with the names that could be setting up for both shortterm success and failure. Dom . Scottie, some traders use history, statistics to try to identify the shorter term potential pops and drops for stocks. Our colleagues over at cnbc pro have tapped our data partners at ken show for some of that analysis and what theyre looking at, stocks that have traded to a larger degree above or below where they traded on average for the past 50 days. They could be due for a shortterm reversal of trend, a mean reversion, some call it. Among stocks that could be due for a pop are ones that some consider as having fallen too far, too fast and that includes shares of Pharma Company allergen. They tend to post positive returns a week later around 70 of the time. So it is an interesting look there at allergan. Shares of mastercard rallied to levels well above the average trading price for the past 50 days and could be due for a fall, which has happened 85 of the time, about a week out. Thats, of course, just part of the story, a couple of names. For more cnbc pro subscribers, get the full story on cnbc. Com pro. Back over to you. Dom chu, thanks so much. Joe, trans ocean listed as one of the most oversold. The chances it goes higher this week according to the data dom looked at, 66 . No interest in that. No interest . No interest whatsoever. Pete, your Backyard Company here, in minneapolis. I like these guys. I put them in mastercard both in the same both on this list. Right. And i dont know 85 chance according to this data theyll go down this week. That data is Something Interesting you want to keep in mind. But still like mastercard. I still like General Mills but i can understand why there is a little fear about being overbought. The desk goes under the radar, the things theyre watching you might be missing this hour. Halftime report back after this. Im Hampton Pearson in washington where the Justice Department is announcing that it is suing value act for violating premerger notification require s. The Justice Department claiming that value act invested over 2. 5 billion in halliburton and baker hughes at time of their announced merger. The Justice Department saying that was wrong because it violated the prenotification requirements of antitrust laws, the Justice Department also saying that penalties, Civil Penalties in the neighborhood of 19 million would be appropriate. Cnbc has reached out to value act for a comment. So far no comment from value act. Back to you. Hampton, thanks. Interesting news regarding value act. Under the radar now, things experts are watching and might be missing today. Pete, unusual activity. Bed, bath beyond, interesting one because they have earnings on wednesday after the close so it is something to keep an eye on. Theyre going out and buying here in april the 15 1 2 and 51 calls, way above open interest. There is very small open interest out there. But something to keep an eye on. Tiffanys. Stock is up 20 off the february lows. Those lows were at least in part on china news. The fact that this has gone up as estimates have come down would indicate china and japan are not doing as bad as people feared. Rebecca, europe . Europe and japan, if theyre not going to play the currency game, what do they do . There is increasing talk that japan could buy more equities just outright as part of their qe program. And i think in europes case you have to be nervous the other way, political fallout from refugees that affects policy. Joe, to you. Slumberje. 82 price target. April 1st, largely positive. Oversold, we did allergan, oversold. On slb, like it . Like the call . I like some of the names but i think it is premature quite frankly. I look at the names and that particular name has been beaten up, i know, but i think it will be a little while. Good stuff. Rebecca, great to have you. Good to be here. See you soon. Rebecca patterson. Power lunch starts now. Welcome to power lunch. Im Michelle Carusocabrera with melissa lee, brian sullivan, Tyler Mathisen is on assignment. We begin this hour with a bombshell of a story still developing. A massive leak of financial documents revealing how the wealthy and the worlds most powerful leaders are hiding their money. Eamon javers joins us with more on what is being called the Panama Papers. Robert . Thats right. It is being called the Panama Papers, also being compared to the Edward Snowden leaks and the wikileaks situation back in 2010, a dramatic exposure of global information. Heres what is a