Even though it was disappointing, and the Unemployment Rate stayed flat, but he has some regulatory steps to announce in terms of going after Money Laundering and tax evasion, and remember that the trez is sure Ri Department has taken a series of steps on tax inversions and i dont know that the precise nature of what the president is going to announce, but that is the direction. And the president has been expre expressed what is termed a frustration that either he is not getting as much credit for what is taking place in the economy or the perception is out there that the perception is that the economy is worse off than in reality, and he expressed those concerns with our colleague Andrew Sorkin in a article last weekend with the new york times. And how is that factoring in . Well, the administration is claiming the longest streak of private sector job growth by month on record. So that is one of the things that he is going to be talking about, but in reality, the president has been getting credit for the economy, and if you are looking at the approval ratings, part of it is because he is out of the news and people are foe cushion on the president ial race, but the numbers are creeping up which does reflect at an underlying level increasing appreciation for the fact that the economy is on solid ground, but obviously a lot of discontent in the country as well, a and this is fueling the president ial race on both sides. And john, you will be listening to the president as we will, and we will talk to you on the other side of that. We have the traders with me as well as we are watching the markets are react to that jobs report which was a disappointment, and maybe reacting further to what the president has to say. Josh brown, what are you making of the Market Reaction today . Well, it is minimal. So you saw that the bond move and then reverse. You are back to unch on treasuries and ief and iee and the treasuries staying in there at their highs and relatively undisturbed, but the bigger picture, a real problem with the n nasdaq right now technically, because a lot of people are pointing to the broken down Technology Giants which is a bigger issue for the stocks. You are looking at the payrolls report this morning, and you are looking at the miss in air quotes, because you cant see me, but 40,000 in the context of an economy of 150 Million People working, and so it is more of the nonevent, and last month was incredibly strong, and averaging it together, it is a run of the mill month of pretty good jobs growth. And trying to gauge what the fed is going to do with the jobs report, and you have now others saying that september is likely and june is off of the table, and watching the dollar closely today, and we feel that it is the most important impact of where the rally is going to go. Do you agree . Yes, the jobs report, and the trajectory is positive and a month of 40,000 less than expect and the next couple of months, the fed is on hold, and maybe you have to wait for the end of the year, and the dollar is important, because if you did get a strong number, the dollar wouldle rally, and the commodities are coming down, and you have a stock market selloff and we have seen that story before and the correlation of the commodities and the stocks is too high. And steph, a good debate in the market adds to whether the rally of 1810 back up to 2080 on the s, and p and certainly it has come down since then, it is about to roll over altogether, and the data out of china is not good, and the jobs report, and wondering what the fed is going to do in light of the internals inside of the jobs report which is not so bad. The average Hourly Earnings were up. Yes, it is going to be choppy, i think as we get through the earnings, and the you focus on the macro data, and we are all going to be focused on it, and it needs to be better for the market to do bet ter. And here is the thing about the jobs to average the last six months averaging 220,000 jobs which is compared to last year of 20 2015 of 229,000 jobs, and if we see it slow down, okay, we have to watch it, but we should not overreact. And the earnings number was the encouraging part of the report, and that is why gold is continuing to go up, and the reason why i think that the bond market actually are reversed because the people are thinking that they have more inflation in the system, and the cyclicals continue to lead and even in the choppy market, and they are leading and outperforming relative to defensives. And doc, jim cramer has what is a clorox market speaking that those are the kind of stocks now in the environment that seem to be shaping up that may outperform the ones that have run, the industrials, the utilities, and other areas, and it may not work for you much long longer. Jeffrey gund lauk on this network from the ira sohn conference said it is time to sell the utility indekts. How do you play it . I love jeff, but i dont believe he is right about that as far as the timing right now. As far as the employment report, i think that the Goldman Sachs had to be the only outlier who believed that june was on the table and not with brexit out there, and certainly not with some of the weak numbers that we have been seeing lately. I agree with josh and steph that you munch together the last couple of the jobs reports, and it is, you know, still a pretty good job creation. It is not exactly what wed like to see as far as big and small companies, sor, big and mediumsi Mediumsized Companies not doing that well according to adp, and that is not where the jobs were being create and they were slipping dramatically in the adp report, and if that trend is going to continue, that is worrisome, but overall, the jobs repo report today was not going to be driving anybody except for goldman and it just drove them to a sense of reality thinking that perhaps out there september, but i still think december. You had me at munch together. And josh, you have thought that the beginning and the end of the conversation of where the rally is going to go from here hinges on the tlar modollar mor anything else . If you could only watch one thing, and clear off everything of the screen, it is the dollar. My friend john kremsky says that the dollar is the 800pound gorilla in the market. And cramer has talked about it for months and the super freaking dollar he referred to it, because it is the biggest problem for corporate earn inin. One of them, and the things that key off of the dollar, and as mentioned the junk bonds have a negative 0. 7 correlation for the dollar, and moving inversely to the tight relationship, and so a lot of the reasons that we have been able to have the rally from february is that the dollar is rolling over, and down 9 from the december highs and broke below the 100day moving average and broke below the 200day, and squeezing longer that the net long specs have dis disappear and even if you are going to get a bounce higher in the dollar, and still on the down trend in the intermediate term, andped it is going to be supportive to the better earnings expectations of the year, and if the dollar is ripping back, however, you can look at all of the commodity sectors that are buoying us, and say good night, because they are going to do what serat suggests. And Joe Terranova was talking about the impending commodity roll over, and the stocks running so far, and the miners and the players in the space, along with the energy names themselves. And the emerging markets are in that boat. One big trend. And it is ready to roll over whether it has run the course. Well, the dollar is the important part of it, and they tont roll unless the dollar is strong. If they roll, the whole market rolls, and we will test the back lows again, because you are will get the growth scare again as to where are things going, but you need more macro data at that. That is what i was suggesting at the top that the bulls in the market got exactly what they wanted today if you are getting a weaker than expected jobs report, and the fed pushed back a little bit fur the than expected though, i dont know what is expected anymore when it comes to raising the rates. And the only thing that is 5050, judge, is 2017. I mean, when you are looking at the actual numbers, the only, based on what is trading as far as real dollars instead of the best guess, it is out to 2017 with a 5050 bet on the moves. And by the way, after brexit, and the elections, and we will see what happens with the elections, because you could have the fed on hold again. And this dollar trade that we think is ultra important of where the stocks are going to go from here, and you would figure from the jobs report here today which is a disappointment with the fed pushed further off is a positive to keep the dollar weaker. For sure, and then the leadership in the market is the cyclicals, and i have been consistent to say that i would rather see the industrials and the Energy Leading us versus the utilities and the staples, because it is more of the defensive rally if you will, and that being said, staples have been a good performing group this year, and they are not cheap by any means, but i can see why people are there, because actually when you are look at the earnings, they have come n and basically in line, and they have a good Balance Sheet, and good yield, and then barbell it with the cyclicals, and that is what we are seeing this year. And it does not look like the twominute warning here, and the president is ex pepected in the brady Briefing Room to talk about the economy and other initiatives. We will take a quick break and come right back after this. Okay. We are back on the Halftime Report, and that picture on the lefthand side of the screen is the brady Briefing Room, and we expect the president to make a statement in a matter of moments about the e kconomy and perhaps reacting to the jobs report weaker than expected with 160,000 jobs are recreated an last month the Unemployment Rate at 5 , and stom internome of ths are not as negative as you would think. And as you know, we look into the Interest Rates and the kbe, the bank indexb is having the worst week since january, and steph, this group cannot get anything going. No, it cant. It is a broken record, but it is a fact. Yes, and it is encouraging at least when the Companies Reported the earnings, they were better than feared and so you did have a nice bounce but they are down double digits. And clearly, the data if the fed does not move, it is not a positive for the sector, but that said, the stocks are extremely cheap, and if the data does get better, and loan growth is going to improve. The thick business is also trying to bottom. You will hear a lot of the data points that it is getting a little bit better, and if you have the activity better, and the loan growth the continue to be solid, there is enough of the valuations that can continue to at least children here, and you can pick the spot, and buy them, and they are cheap. I go back to steve wyche selling out of citi, and it is almost, you know, throwing in the towel at this point. You can talk, and talk and talk and say that the environment is going to be better for the banks and cheaper than book value, and reason to own the stocks, and then at some point, you have to be a realist, and say, i dont see it. And why anticipate, and forget about the longterm, but shorter term if they were paying a you a 4 or 5 yield like at some point in history banks used to do, sure, sit in them until things are better and you will be paid, but before that happens, what is the sense of repeatedly going into the names saying that they are cheap, and Everybody Knows that they are cheap, cheap, and they are cheap for the reason and when they are ready to break out, the price will tell you, and you can pick the favorites burk i dont see the urgency when they dont go anywhere month after month and year after year. I agree and the right thing to do is to look at the Valuation First and look at the book and the dividends, because if you are getting i say forget the valuation of the banks, because we know that. No, look for the support. They are all cheap. And a 3 or 4 yield, then you have great coverage. But most are not paying that. And you have ccar coming up, and that is the payout going up. And the multi nationals dont well, jpmorgan has a 3 yield, so dont say that. And the bank united and bbbt. Well, if they are, they are capitalized and the Balance Sheet is better than in decades and underappreciated by the preferred and double the coupon. But you are taking a huge risk on that, and if you are right on the banks and get the rates to move. And you are the opposite of the Duration Risk with the common, because you are own iin it thinking that the rates are going to go up, and they dont. And that is why you have the call on the dividends. On that note, you can add another voice to the chorus of those calling for a rate hike. Here is the pt resident of the United States. Seven years ago in 2009, economy lost nearly 700,000 jobs and the Unemployment Rate hit 9 on the way to 10 , and seven years later in april of 2016, our e kconomy added 160,000 new jobs, and that makes april the 7 74th consek sek youtive month of private sector job growth in ameri america. Over that record streak of job growth our businesses have created 14. 6 million new jobs in all, and wages have been rising at an annual rate of more than 3 this year, and so, the Unemployment Rate has been growing, and unemployment has been falling, and wages have been rising. But the Global Economy as many people here are aware, it is not growing as fast as it should be, and you are seeing the lagging growth in places like europe, japan, and now china. Here in the United States, there are folks out there who are still hurting, and so, we have got to do everything that we can to strengthen the good trends, and guard against the dangerous trends in the Global Economy. And if the Republican Congress joined to us take some steps that are pretty commonsense, then we could put some additional wind at the backs of working americans. To create new jobs they should invest in the infrastructure, roads, bridges, schools, and our water mains, and some of you join joined me when i went to flint this week, and it is a great example of the kind of work that is out there to be done, and we could be putting people all across this country back to work with huge multiplier effects across the economy if we started investing in the infrahave ublg chur to make us more productive. To reward some of the hardest working people in america. Congress should raise the minimum wage. This is something to not only help those individuals who are getting a bigger paycheck, but it means that they are spending more and that would be a boost to business. So level the Playing Field for American Workers and crack down on unfair foreign competition, they should pass smart new trade agreements. And congress should reform our tax code to promote growth and job creation which includes closing wasteful loopholes and simplifying the tax code for everybody. I have been talk about this for a while. Only congress can fully close the loopholes that wealthy individuals and powerful corporations all too often take advantage of, and often at the expension of the middleclass famili families. If they are getting out of paying their fair share of taxes that means that the rest of us have to shoulder that burden. And i have put forward plans repeatedly to do exactly that. Close loopholes, make shure tha everybody is paying their fair share which would not only give people greater confidence in the system, but it would be good for the economy. It would make shure that familis and Small Businesses who dont have fancy lawyers and accountants are being treated the same as big corporations who do. And i think it is fair to say that congress will not act on the big tax reform plan before the election. That the would shut down some of the loopholes, but what my administration has been doing is to look for steps that we can take on our own to make the tax system fairer. In recent months we have seen just how big a problem corruption and tax e evasion have become around the globe. We saw what happened with the release of the Panama Papers and we have seen the degree to which both Legal Practices of tax avoid answ avoidance that are bad for the economy, and ilLegal Practices that involve nefarious activities continue to exist and spread. So combatting this kind of tax evasion, and strengthening the Global Financial system are priorities of mine since i took office and part of the broader goals of the office to make sure that the rules are not rigged and the economy is working for everybody. Here at home, we have made the tax code fairer and asked the wealthy americans to start paying their fair shareer and last month the Treasury Department took advantage of a tax loophole that allowed them to shift abroad to avoid paying taxes in america, and taxes that they rightfully owe. We have taken steps to make sure that the tax laws are enforced including leading efforts to the crack down on the offshore evasion, and as result, thousands of individuals have come forward to disclose off shore accounts and pay the taxes that they owe with the interest and penalties. Today, we are building on the efforts. And im believing that you have heard from treasury, but i want to amplify what they have told you in detail. Number one w we are requiring the banks and other Financial Institutions to know, verify and report who the real people are behind the shell corporations that set up accounts at those institutions. One of the main ways that Companies Avoid taxes or wealthy individuals avoid taxes is by setting up a bunch of the shell corporations and making it harder to trace where moneys are flowing and what taxes are owed. We are saying that the financial institution, that you have stoep up and get that information. And second, we are plugging a gap in the tax rules that foreigners can exploit to hide their assets to evade taxes. The treasure are Ri Department and the irs are issuing a proposed rule to make sure that the foreigners cannot hide behind Anonymous Shell Companies fo formed inside of the United States. Now, these actions are going to be making a difference. They are going to allows us to continue to do a better job of tracking financial flows and making sure that people are paying the taxes that they owe rather than using the shell corporations and offshore accounts to avoid doing the things that ordinary americans, hardworking americans are doing everyday which is to make sure that they are paying their fair share. Having said that, we are not going to be able to complete this job unless Congress Acts as well. So i am calling on congress to pass new legislation that requires all Companies Formed inside of the United States to report information ant their real owners to the Treasury Departments financial crimes enfor enforcement network. That is going to help the Law Enforcement better investigate and prevent financial crimes, and im calling on congress to provide the Justice Department with additional tools to prevent corruption, and money launders, and im calling on the senate in particular senator rand paul who is, you know, been a little quirky on this issue to stop blocking the implementation of tax treaties that have been pending for years, and these tr treaties actually improve Law Enforcements ability to investigate and crackdown on the offshore tax evasion. That is not something that he is in favor of, so we are going to be cooperating internationally, because tax evasion, and tax avoidance and Money Laundering and all of these things are taking place in a Global Financial system and if we cant cooperate with the other countries, it is going to make it harder for us to crackdown. If we can combine the actions that we are taking administratively with the new tool tools that i am asking congress to provide the Justice Department and treasury, these actions will prevent tax evasion, and prevent Money Laundering and prevent the terrorist financing, and they will most importantly uphold the fundamental principle of the economy, and in america, no matter how wealthy or powerful, you need to play by the same rules as everybody else. Thank, and i will take a couple of questions with that. Lets see, go ahead. Yeah, since you are now the incoming president of the white house correspondents. Thank you. Sir, what is your reaction to donald trump becoming the nominee of the Republican Party this week, and given the delegate math, it is time for Bernie Sanders to step aside on the democratic side . Well, with respect to the republican process and mr. Trump, theres going to be plenty of time to talk about his positions on various issues. He has a long record that needs to be exam examined and we need look at the statements of the past, but most importantly as i speak to all of you in the room as reporters as well as the american public, i think that i just want to emphasize the degree to which we are in serious times, and this is a really serious job. It is not entertainment. This is not a reality show, but it is a contest for the presidency of the United States, and what it means is that every candidate, every nominee needs to be subject to exacting standards and genuine scrutiny. It means that you have to make sure that the budgets add up. It means that if they say they have an answer to the problem, that it is actually plausible. And they have details for how it would work, and if it is completely implausible, and would not work, that needs to be reported on and the American People need to know that. You know, if they take a position on the International Issues that could threaten war or has the potential of upending our critical relationships with other countries or would potentially break the financial system, that needs to be reported on. You know, the one thing that i am going to be really looking for over the next six months is that the American People are effectively informed about where candidates stand on the issues, and what they believe, and making sure that their numbers add up, and making sure that their policies have been vetted. And that candidates are held to what they have said in the past. And if that happens, then, i am confident our democracy will work. And that is true whether we are talking about mr. Trump or ms. Clinton or Bernie Sanders or anybody else. But what i am concerned about is the degree to which reporting and information starts emphasizing the spectacle and the circus, because thats not something that we can afford. And the American People, they have got good judgment, and good instincts as long as they get good information. All right. What about on the democratic side . Well, on the democratic side, let the process play itself out. You know, you mentioned the delegate math, and i think that Everybody Knows what that math is. I think that senator sanders has done an extrooaordinary job raising a whole range of issues that are important to democratic voters as well as the American People generally, and i know that at some point theres going to be a conversation between k secretary clinton and Bernie Sanders about how we move towards the convention, and the good news is that despite the fact that during the course of the primaries people get chippy, and i know, because i have been through this and it is natural and sometimes even more with the staffs and the sup potters than the candidates themselves, but the good news is that there is a pretty strong consensus within the Democratic Party on the vast majority of the issues. There is some disagreement about the tactics and disagreement about the political strategy or policy nuance but both Bernie Sanders and secretary clinton believe that every american should have health care, and so do i. And both candidates believe that we should be raising the minimum wage, and both candidates believe that we should invest in the infrastructure and put people back to work, and both candidates believe that we should pass a comprehensive Immigration Reform policy to make sure that we are enforcing the laws and improving our illegal immigration system, and making sure that the borders are secure, but also that we continue to enjoy the incredible boost that we get from the attracting talent from all around the world. Both candidates agree that we should be prudent in terms of how we use the military and that we should care for our veterans when they come home, and so, if you are looking at 95 of the issues, theres strong ingagreet there. You dont see the same kinds of divisions between the two Democratic Candidates that remain that you have been seeing in some of the republican debates. Yeah . Mr. President , what did speaker ryans statements tell you about the state of the Republican Party and how would you advice your fellow democrats who have to run against donald trump about how to win in november . Well, you have to ask speaker ryan what the implications of his comments are. Theres no doubt that there is a debate that is taking place inside of the Republican Party about who they are and what they represent. Their standard bearer at the moment is donald trump. And i think that not just republican officials burk more importantly Republican Voters are going to have to make a decision as to whether or not this is the guy who speaks for them, and representing their l val represents their values. I think that republican women voters are going to have to decide is that the guy i feel comfortable with in representing me and what i care about . I think that folks who are historically concerned about making sure that budgets add up and that we are responsible stewards of government finances have to ask does mr. Trumps budgets work . Yeah, those are questions that Republican Voters more than republican officials have to answer. And as far as the democrats, i think that we run on what we are for and not just what we are against. For the last 7 1 2 years, we have been pretty clear about what we believe will help working families who are struggling out there. Although it has been difficult to get through Republican Congresses to get those things done, the truth is that they continue to be prescriptions that would really help people. You know, making sure that families get paid sick leave. And family leave. And Early Childhood education would help families. Raising the minimum wage would help a lot of people. Rebuilding the infrastructure would put back to work a whole bunch of guys and gals in hard hats that, you know, need to work. Those are good jobs that cant be exported, and now is the time to do it. So i want the democrats to feel confident about the policy prescriptions that we are putting forward, and the contrast i think that it is going to be pretty clear. I will leave it up to the republicans to figure out how they square their circle. All right. I want to take two more quest n questions. Yeah. Mr. President , what is your message to the democratic voters who have yet to cast their vote who may be hesitant to vote for the democratic frontrunner because of the ongoing email scandal an investigation and also did you see Donald Trumps taco bowl tweet . And your thoughts on it . I have no thoughts on mr. Trumps tweets. As general rule, i dont Pay Attention to mr. Trumps tweets. I think that is going be true for the next six months, so you can just file that one. In terms of the democratic vote coming up im going to let the voters cast their ballots and not, you know, not try to mettle in the few primaries that are remaining. Let the process play itself out. We will know soon enough. It is not going to be that much longer. And one on infrastructure, and not long before your Nuclear Summit where we had 50 World Leaders the dc metro was closed down and you said at the corresponde Correspondents Dinner that your own metro system is closed for with safetyrelated problems and what can the administration do if the republicans are standing in the way of the infrafrauk chur bill for the d. C. Bill to add more funding or support for such a Critical Service . Well, first of all, i know that this is a somewhat selfinterested question, i assume, because a bun of of the folks here take the metro, but it is just one more example of the underinvestments that have been made. Look. The d. C. Metro historically has been a great strength of this region. But over time, we underinvested with the maintenance and the repair, and now the steps are going to be referred to the department of transportation, but i can say that obviously, safety comes first and we want to make sure that if there is safety concerns that they are addressed. And the broader issue is that we have bridges, and we have roads and we have ports and we have airports, and we have water mains and pipes as we saw in flint that suffer from negligent. From neglect. In many parts of the country, we are relying on systems that were built 30, 50 and in some cases 100 years ago. And the reason that we are been neglecting them is not because we dont know how the fix them or because people are not aware of the need, because we have known for years now that we are a trillion or 2 trillion short in terms of the necessary infrastructure work repair. I talk ded about this when i ca into office and sought to do more about the infrastructure and the problem is that the Republican Congress has been resistant to really taking on this problem in a serious way. And the reason is that because of the ideology that says Government Spending is necessarily bad. And i addressed this when i was in flint. That mindset, that ideology has led to us not investing in those things that we have to do to together. As you point out this metropolitan area of the capital is doing very well economically, but it does not matter how big your paycheck is if you have been taking the metro and suddenly it is shutdown for a month. And now you are stuck in traffic trying to drive to work instead. You cant build your own metro syst system. You cant build your own highway and you cant build your own airport. And so we have a specific pr problem with underinvesting in infrastructure and now by the way is the time to do so because the Interest Rates are so low, and so many contractors and construction workers that are underemployed at the moment that you can actually get the jobs done on time, on schedule, and it would give a boost to the overall e kconomy, because we kw that when we spend a dollar in infrastructure, then you will actually get a bigger bang for the buck in terms of the economy overall. Surrounding businesses, suppliers, and you know, food trucks, and everybody does better. And it gives a huge boost to the economy and it lasts for a long time, and think of the investments that we made in things like the hoover dam or the Golden Gate Bridge or metro. It is a good thing to do, and historically it is not and should not be partisan, but if we have a mindset that says whatever government is doing must be bad, then, these are going to be the results, and it is going to continue to get wors worse. It is already tough in poorer communities like flint, but you know, we are seeing these kinds of the infrastructure problems spring up in communities all across the country, and it is not going to distinguish by race or by region. Everybody needs roads. Everybody needs airports, and so, hopefully this is going to prompt a kconversation and the last thing i want to say about this, this is a good example of making sure that the candidats s are speaking to the issue. As you go into president ial election. I put forward specific proposals of how to pay for additional infrastructure investment, and the numbers add up. And so, the question is how do the remaining candidates for the presidency intend to tackle this . How do members of congress intend to tackle this . What is the republican agenda for infrastructure, and do they have one . How do they pay for it . Do they pay for it by cutting medicare or medicaid . If they do, then that needs to be fleshed out. And the consequences for working families needs to be explained. All right. Thank you, everybody. All right. The president at the white house commenting on the state of the u. S. Economy and the state of the ongoing president ial campaign as well, and some harsh comments about the republican frontrunner donald trump. John harwood we begin, there and you have been watching this unfold from washington, d. C. , and the president saying that the presidency is a serious job and not a reality show, and not enterta entertainment, and speaking squarely about Donald Trumps credentials. And he spoke about trumps credentials without doing his name and did it generically, but it is unequivocal and calling attention to what he calls the lack of seriousness about the Trump Campaign and it is a theme of his consistently in both the economic remarks that he made at the white house Correspondents Dinner and remarks like this, and contrasted it with the the democratic primary process. And he did it in the course of defending the democratic agenda, and he talked about the shortcomings and the underinvestment in public goods like infrastructure and made the case that republican ideology had prevented those things from making it happen, so it is a doublebarreled hit on the republicans broadly and trump specifically. Thank you, john harwood live with us from the d. C. Bureau live. And now a quick break and we will talk more about the markets and apple hitting the lowest level since june of 2014 and we will talk about that and more when the Halftime Report comes back. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing singing you wouldnt haul a load without checking your clearance. So why would you invest without checking brokercheck . Check your broker with brokercheck. All right. We are back on the Halftime Report. Nadz dak is on pace for three straight weeks for losses for the First Time Since january on nasdaq, and underscoring how tough tech has had it. Josh spencer is joining us today from baltimore from t. Rowe, and we are noticing that apple has hit the lowest level now since june of 2014, and dipping below the socalled flash crash low of 9 2 92, and so as we are looking at apple, it is not one of your top holdings and if you dont own it, why . I do own a small position in apple, and like a lot of people, i love the products and the company, but i have not seen a big opportunity in the stock, and i felt like the smartphone industry is starting to mature, and i think that we are seeing the signs of that, and apple is trying to reinvent itself and come up with the new services, and but i have seen better ways to make money nor investors in themes like Cloud Computing, the internet and other ideas. Whats a number if there is one that would make you feel more inclined to invest in apple if 92 is not hit, what is it . Well, i mean, we are certainly much closer, and there is good value here. You have nice dividend yield support, and a strong Balance Sheet, but it is also important to keep in mind the size of the company and even at 92, it is a company that is well over 500 billion in market cap. And it is difficult to compound and show the strong returns, growing numbers that bilg. That big. And we had the ira sohn conference and a gentleman pitched amazon with extraordinary target way out thinking that company could reach some 3 trillion in the market cap, and is that your Largest Holding amazon . Yes, and what we have seen through the earning season is choppiness through the companies, but amazon stands out to show the ongoing strong results, and we have spoken about the strong result in Online Retail and the Cloud Computing business, but i am not sure of the 3 trillion, but a lot of room from here to there and it is a 300 billion today, and i see a lot of room for it to continue to grow. And why is tech banged up so much lately . Well, a lot of the cross currents in the macro e kconomy and it is very difficult to grow when macro is challenging ax and this is going to put the impetus on finding the companies that can create their own growth, and have their own competitive advantage and playing into the big mega trends like the Cloud Computing and the internet, and tesla is one that is a fantastic idea putting up great results, but it has caught up in the cross currents of the market, but still a fantastic idea here. And wait, did you say that tesla is a fantastic idea . I love everything about tesla. I think it is a revolutionary company, and addressing an enormous market with differentiated technology, and the consumer response to the model 3 is fantastic, and i think that tesla is going to be able to build those in size, and grow substantially in the years to come. And jim cramer yesterday called tesla and ilon musk a financial murderer with the point being that he says whatever he wants at any point he wants to say it about any projection of any mod nal is coming out even though he knows that there no way in heck that she is going to be meeting what he says. You know, they have already accomplished the extraordinary which the launch of the models. And the amount of success that they have had, and it is the number one selling car in its category last years, and better than the bm with, and the mercede mercedes, and that is amazing for a startup company, and to take that many orders on the model 3. If you think back over time, and people thought that jeff bezos was crazy when amazon was getting start and it takes somebody with a streak of craziness to generate the soupe normal returns and invent something new. Hey, josh. Isnt it possible though that a lot of other people have taken the crazy bets and most of them dont work out . We only hear about the ones that do, and maybe they got a little bit lucky with the new model of the tesla car . Well, it is possible. I continkon dont believe it is they built the model s and it is as fantastic as it is, and not 100,000 vehicles a year. I think theyre really tapping into a market thats, you know, emerging and revolutionizing the technology. A lot of people do try and fail. But what weve seen from tesla to date is, you know, on going success. I really think what theyve shown us is a path to future success. Hope youre right. Well talk to you soon. Thanks so much for joining us to day, josh spencer. Sure. Coming up, herbalife in rally mode. Investors having high hopes the end game with the ftc is near. Well separate fact from fiction next. They found out whos been hacking into our network. Who . Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. Were back. Herbalife is in talks with the ftc and have now reached an advanced stage. That news coupled with better than expected earnings are boosting the stock as can you see there. Herbalife shares are up 12 . The analyst with Pivotal Research has a buy rating on the stock with a 90 price target. He is also an herbalife shareholder. Tim, welcome back. Youve been right on where you think this stock was going to go. You call the update with the ftc positive. How so . Well, its progress. Were not done. Nothing is done until the ink is dry. Were clearly moving forward to something that i hope is a negotiated settlement. It could be litigation. You certainly cant take that off the table. Yesterday in herbalifes 10q, they said a settlement would include a monetary payment and other relief. Let me talk to that. I think thats important and maybe i was throwing around that term too loosely. Injufrp injunchive release is shutting it down, the type of approach they did with fortune hightech marketing. Obviously theyre not going to do that. But ive always maintained that the company would have, you know, injunctions, consent decrees in the settlement with the ftc to not do certain things. I think i know what the term means. I think the viewers do as well. I it this point sort of is that injunctive relief could force herbalife to halt certain parts of its business, could it not. Sure. It could ask them to jump up and down ten times and howl at the moon, too. I just dont think that the most likely scenario is a radical rewrite of sort of the case law, the rules that mlns operate under. And, you know, if we take a look at the case law today, herbalife is well within those lines and is a legitimate, ethical growing rapidly mln. I just wonder if the market is reading this a little too optimistically once you factor in herbalifes own words. And they say that a fine could be 200 million. Thats what they say. We dont know, in fact, what an end number could be, whether it will be coupled with an injunction of some sort or other kind of relief if this thing ends up in litigation which it very well might. Let me hypothesize that the stock is up 11 today on what would have been a 30 increase in epsfx and 11 in sales so you could explain away the entire move today, certainly, just on fundamentals. The fundamentals were blisteringly strong. I dont think anybody would argue with the fact that earnings were good and the stock up is. It just got an extra boost on the notion that they were in the final stages of negotiations with the ftc. And it was going to work out more favorably perhaps than some people thought. Im saying if you look at the companys own language, you can interpret it a few different ways that it seems far from definitive that its going to be a 200 million, for example, payment, a slap on the wrist and then thats it. Thats my only point here. Fair enough. We dont note outcome of the negotiation. We always thought that herbalife would be enjoined for making false statement onz income claims, product claims. Stuff you have seen on youtube videos. They may be enjoined to not do lead generation which they flo longer do. I dont think its going to end up in a sort of radical rewrite of the compensation system for mlns. And if so, they may choose to go to court over it because, lets face it, the ftc can bring a case but the case law wouldnt support a position to change the compensation system of herbalife. Tim, i appreciate the time. It is rare today given the president s speech from the white house. I appreciate your time. Thank you. Well, in honor of mothers day, were joined by stephanie links daughter. She is teaching her how to invest. Hi. There. Hi. Welcome. Good to have you here. What are you learning from your mommy . [ inaudible ] what you are teaching her, steph . Im teaching her to learn the value of money and good companies. And trying to find blue clip names with Good Management teams and have fun with it, too. We have a future Value Investor in our mix . I think so. Shes beating me with her names. We should add her to the halftime portfolio competition next year. I could use the help. You are probably doing better than me. She even has a portfolio. She does. Well disney, of course. You like disney movies . Yeah. Yeah. What is your Favorite Movie lately . It is a disney movie . Zootopia. What is your favorite thing about having your daughter involved in what you do for a living . I think its something we bond over. We talk about it all the time. I always have my laptop. I always have stocks open. I always talk about companies and management teams. She takes a genuine interest in it. Its fun because she learned to pick s she uses and does. Its been fun. Thanks for being here, georgia. Thank you. Thanks for bringing her . Happy mothers day. Thank you. Can you go to cnbc. Com for a behindthescenes look at stephanie and her daughters investing lesson. Thank you for joining us v a great weekend. Stock market clearly in focus after that jobs report. Power lunch is going to talk about that which starts now. Of course, we are. We begin with a Big Development on that Massive Wildfire sweeping across western can d. A. The raging inferno has grown to more than 210,000 acres in size and the out of control blaze is now moving south. Thats threatening key Energy Operations in the heart of Canadas Oil Sands region. Were live on the ground in canada and in the gulf of mexico where u. S. Oil operations may have to pick up the slack due to possible lower production in the north. Welcome, everyone. Im with melissa lee and tyler mathis mathisen. Well kick off with the latest on that out
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