Two great Leadership Groups taking over. I was looking at the stocks today beaten up, and the fundamentals are beaten up as well such as the rax space, and microsoft and intel and going down the list and the few that are not moving. And cisco, and the chips and this is what jim krcramer said this morning. There are two types of tech, tech that is cloudrelated and the digital seagate and microsoft, and we had a positive piece about microsoft, and positive talk from cowen saying to get ahead of Western Digital before the earnings, and this is a tech rally, and the cloud and the Old Fashioned tech and it can occur. Pete . Well, last week, we saw the cisco numbers that were outstanding, and looking in the transitionary level right now that we have been talking about with microsoft, and looking at the name, security, cloud, and this company with a great number and looking at the growth, incredible, and then moving to the salesforce which crushed it last week and then yesterday apple and the way that the suppliers over the last week and a half or so are starting to make the move, and the chip stocks at the top of the show that we talked about at the top of the show yesterday, and so, apple, when you looked at the buffett bottom if you want to look at it, but it has not stopped, but the big tech cap that is finding the fire underneath them for the last little race here especially this morning. And doc, what does that mean to the overall markets pictures here because we are assessing where we are . You have the potential of a lagging sector starting to pick up steam. Yes, and both mr. Buffett and Cisco Systems are really two of the primary catalysts there. And apple is above 7 today. There you go, and so buying it below 90 less than two the weeks ago and this is phenomenal buy today, relative to where that stock is. They are talking about the handsets being in the 74 million range for the people that supply them with chips and camera parts and the rest, to be ready to supply that kind of number, and then you are looking at a rax space, and qualcomm, and two of the stocks i have been buying and on the disclosures for the last several week, and the stocks are moving to the upside, and corning, unusual activity there, judge, and so people are not shying away from these, and instead, they are coming in, in a big way, and you are looking at the volume numbers, stock, and derivatives coming in to buy bigger and bigger numbers in the tech space in particular. Joe . Well, i think that as pete said, last weeks semis led the market higher thursday and friday in an environment when collective collectively everybody was singing the market is rolling off, but when you look at the market and the narrative right now, there are so many inging this chorus of productivity and multiple headwinds for the market, and that in itself becomes a cat ris for a bullish atmospher atmosphere. It is the catalyst and ultimately the productivity. And the point of the 50point range in the s p in a month, and days in february and march with 5 50point moves out of the s p and now 50 points for the month, and now you are talking about the compression here not breaking to the up or the down, but it is consolidating and so if you want to be glass halfful, it is consolidating. Let me throw some cold water here. A tremendous amount of money going into the quan strategies so when you see a market get down to the levels, they come in to drive the momentum, and the etf and the passive money kicks in and take it up to the higher range, and this is the vol ti. While it is in the 50point range on the s p, that is fine. But i am not sanguine about the market, and you cant get too bearish. If the fid is goied is going rates because it believes that the economy is bet, and cyclical stocks may be better than the plays so far, the yield proxies and the utilities or whatever, and could you have a rotation from those areas na have worked because of the yield they provide to investors and then to have a flood of money into the areas that have underperformed that are more economically sensitive like tech . Yes, we have seen the hints of that with the bond going higher and the fed coming out in june, because they wont go by the election later and we have four meetings left, and going in july, also, and i would say that this is a thought out there, and as trump moves higher in the the polls, and if the republican is elected and forget that it is trump, you will get the regulations bumpeded back and more business friendly environment, and the ceos will get off of the neutral and willing to spend the money, wrand . Upgrading tech. So a bunch of things can go right, but valuation is stretched. And everybody was talking about the Federal Reserve surprising with the hawkishness and the june rate was not surprised with the market turn around and people were positioning for the downside. I think that people are turning to the other way now. And markets can recover with the higher equity prices. Yes, for a year. Yes, that is the environment that we are greeted with. And looking at the s p and you have underperforming index up by 80 points today, and who knows whether it is lasting and whether the dollar is going to last overseas and then twitter. And then there is twitter which is at the alltime low. And you have to go there there . Yes. And the antithesis of the gain on the other parts of tech, and now twitter down, and what do you do with that . Well, it is a downgrade at moffett. Well, people want to be in the bottom fishing and i have sat on my hands. I understand that i tried it early in the year, and this is what hurt me in the halftime portfolio and i was down 20 and i had to cut it and it is 18, and it is going to continue to go to the downside, scott, and somebody is saying, well somebody is going to be buying them, and that is why to buy it, but until we have a understanding of who and why and how that occurs, there is no reason to be sitting here bottom fishing in twitter once again. I have said not the buy it, but pushing into the lower teens, i dont want to be shorted because of the potential takeout, but as far as calling for a sell here, they are saying dont short it. And dont get short twitter here, but i would not see any catalyst to be a buyer either. And i want to give you some news on the herbalife and you have noticed by now that shares are on the move on a report from the New York Post that that company, herbalife has reached an agreement in principle with the federal trade commission to settle a probe into pyramid scheme allegations that you have heard on this program from bill ackman, and so it is best to treat the report with skepticism and care, and my source close to the company telling me that there is no imminent settlement, and while there is a deal in the future, dot no expect it today, and the ftc gave us no comment, and we have calls into herbalife, and Persing Square as well, and from are my source, they are in active and advanced conversations with the company and nothing in fact has changed is since the company in itself with the filing some two weeks ago said that it was in advanced life with the ftc and said that the remedy could be a number of things, including the settlement it put in the 200 million range, and if you will recall, but again, i am told with my source familiar with the situation that nothing is new. Dont expect a settlement today. I am told that the talks are in the advanced talk stage and nothing new to report today. And here is something, judge, the options are derivative activity that we are talking about if it is a leading tell if you will, and they are speculating on the upside for the most part in hlf, but they are out in july, and not buying the weeklies. I would have expected them to be in the weeklies if you were going to be getting an imminent settlement today, and in other words, they are thinking it goings up over the next several weeks, but not like a moon shot today, and that is the bet. Okay. We will have more on this as the news develops and anything i can report to you. Here is what is coming up on the Halftime Report the viacom shareholder who is calling for a change at the company. We dont believe that philippe has done a good job as the ceo, and he should not be the ceo or the chair. Eric jackson of spring owl reacts to Sumner Redstones latest moves to control viacom. And under armour just inked a huge college deal, and what that means coming up on the Halftime Report. At the td amere trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. They found out whos been who . Cking into our network. 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 always looking for ways to speed up your Car Insurance search. Heres the latest. Problem is, we havent figured out how to reverse it. For now, just log on to compare. Com. Plug in some simple info and get up to 50 free quotes. Choose the lowest and hit purchase. Now. If youll excuse me, im late for an important function. Compare. Com. Saving humanity from high insurance rates. Okay. Under armour is going over to the top, after it announced one of the largest footwear and apparel deals in history. Under armour has reached a 5 15year 280 million deal for a apparel with the university of california, los angeles, ucla, and the largest in School History and trumps the previous largest agreement in College Sports history which is nikes 252 million deal with the ohio state university. And previously signed with a auburn and their deal with adee d adidas was set to expire next year, but now the shares of volume are up today. We are talking about the growth all of the time and how they have positioned and invested with so many of the great athletes and now all of the sudden, the expansion into the various schools, and we know how Big College Football has gotten and you can u. P. S. It. But looking at the stock and the way it is reacted over time, scott, and it has not reacted the way that you would expect. Because in the headlines you would think that the stock is going to be soaring, but not the regard you would think. Wait, why would you expect the stock to be soaring off of a 280 million deal with a college . Well, they have been in the right place at the right time with tom brady and steph curry, and golf as well to get themselves international exposure, and trying to get bigger and bigger in what category . Shoes. The footwear part of it, and they are doing the right things spending a lot of money, but it is something that kevin prank talk talked about, they have to invest to get the expose sure out there, and we know how Big College Football is in the fall. And notre dame, and deals of the cubs were big, because nobody had ever been on the inside of Wrigley Field in the modern era with an ad, and under armour is there, and also, when the people saw it and i was tweeting it out, many of them were responding back, judge, well, imagine what texas is worth, and imagine what ohio state is worth and alabama, and true, but the guys have deals in place, and they wont break those contracts, because if you have a nike deal, you have to wait until it comes off. And the battle for l. A. , right . The battle for the number two markets in the country, and if i recall, s. C. Wears nike. Yes. I think. And them you have now got ucla with the up and coming program wearing under armour. And like i say, many of the programs are great, and throw in florida, and a whole bunch of the teams that you will see in the playoffs each and every year, and some of them have longterm deals already in place. And some of those deals are just like magic johnsons deal when he signed the 20year 1 million a year deal, and people thought that is so rich, but it is not, not compared to this. And we had a graphic, and can you throw the graphic back up which sews you the companies are going to be paying . There you go. That is a lot of money regardless of who is paying it. There is a good debate going on right now of the issue of sports rights, and whether the broadcast networks are paying too much for the rights, and whether that is coming back to haunt them. Is it right to ask the question whether these companies are paying too much for rights to the apparel of thesele schools . For the most part, it is you worry about it or not. Well, you have to have some worry about it, but overall, the fact that these guys prag the kinds of the numbers, judge, it is something that people watch li live, and something that then is a greater value to the commercial, the people who are running the commercials on there, and sure, some people like stephanie link watch them on the dvr and flip through quickly, but a lot of us interested in the sport have to watch it live and that is great for the commercial sense. And we dont know the economics, because the numbers are going up higher and higher and you dont know the payoff, because it is a 15year deal, and also, the issue to the College Athletes and it is not settled yet have the right to get paid for the clothes that they are endorsing so it is complicating it otherwise, but it keeps players like nike and others out of the market. So it is a twohorse value, and the competitive threat is removed. And do you buy the stock here at 38 and change . I mean, i bought the stock a couple of weeks ago and got stopped out, and i feel foolish about it now, but pete accurately points out, why would the stock rally . Because you would expect it to rally, and this is the stock that no, he was questioning how much it is rally iing and i expt it to be up what it is up about it, it is one of the stocks that is one of the favorite Consumer Discretionary names up to 2015 and the retail is all about the momentum, and once you lose the momentum in retail, it is very difficult to get it back once again, and that is the biggest challenge. They have lost the momentum. And clearly, they have lost the momentum or the stock would be trading above 50 where it was. Where . In the stock price. It is up 100 . And you are talking about the stock action and the fundamentals. And the fundamentals of the company can be phenomenal. And we agree for many, many years, and it is the stock performance. And the fact that it is scrutinizing the valuations. And looking at the p. E. Now scott at 38 which is off of the lows of the 31s, but actually 52 and change is the high, and so all i am saying is that you would expect given the earnings and the growth and all of the money they are putting down and all of the exposure and being in the right place at the right time with all of the athletes and the schools, you would think that the stock would be pushing much towards the 52week highs and rather than close to the 52week lows. And the stock, and maybe you dont know the answer to this, but what has the stock done since the earnings . What is the stock up since the earnings . Well, up or slid . Since april . The most recent Earnings Report . The stock is down. Down. You put 100 people in the room, and you say, what do you think of the fundamentals of under armour and they say, we love it and we want to buy the stock, and you show them the chart, and if you a strong sell discipline, you back away from it. And it is a strong valuation discipline, you back a wway, to because i am not aware of any clothing manufacturer who has ever held this multiple or even half of this multiple for an extended period of time. And you have to focus on the growth, right . And that is the thing when you tip and you dont show the growth, that is when the high multiples start to decline to the downside. And people are questioning what Companies Like amazon and google are spending to achieve their growth . Do we have to scrutinize deals like this and whether they are paying too much . I think that these deals are harder to scrutinize. But these deals are harder to scrutinize, because as steve accurately pointed out, we dont know the true economics behind the deals, and a lot of of the deals are new no the marketplace for a company like them. And 80 million sticker prices. And what are we going back and measuring it against, and did something occur in 2005 or what we can understand that model will work for them . Well, we will know 3 to 5 years if they did spend too much, but it is difficult if the spend for under armour is going to work versus amazon and google. And everything is compression, judge, and amazon has compressed everybodys margin, and we know that and talk about it here all of the time, and that is what you are seeing, but that means that many of the prices have to come down, and that is what happened to macys for instance, and nordstroms, and everybody else in the space, and the fact that they are not in shoes or that clothing to mr. Planks company makes, they are not immune to it. And i dont know when paying the highest price on a deal is a badge of honor. I like the companies that pay the lowest, and that is not what rewarded. Well, it is the market ta is pushing the deals up, until you sit back and bring it back to the sports rights deals and you can see the things going on at some of the Media Networks who are making changes as a result of the deals they have signed. And nike is probably wondering about this as ucla did not have an exclusive deal with them. And also, teams that increase in value. And now, the investors who were told to buy the dip in february and find out where he says to put the money the work now. And plus, the Home Builders are on the move with the sales earnings and the trades just ahead in the woods. You wouldnt take medicine without checking the side effects. Hey honey. Huh. The good news is my hypertension is gone. So why would you invest without checking brokercheck . Check your broker with brokercheck. [ male announcer ] Tora Bora Fallujah argonne khe sanh midway dak to normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. All right. Lets do the trader blitz here, four stocks and four trades. Monsanto is going to reject the 62 billion takeover, doc yes, they are in denial, and this is a, i think, a great offer, if the they think that they are going to be sweetening the deal with nobody else coming in, and the buyers are going the go hostile on them and put the pressure on the leadership over there at monsanto. The stock trading 108 reflects a belief not a bigger bid coming. And pete . Well, it seems that there is not a most positive upgrade and it is maybe long term, and you can see the stock of deere last summer when they reported the fact that they are having demand that is low in the ag space and the machinery, and that hit the stock of below 80 since, and you dont have to attack the stock yet, and it has to break above the major averages before it is interesting. And joey, the Toll Brothers . Yes, there were concerns that the new york city pricing would have a tremendous amount of inventory, but that is not clearly reflected here. And trouble is reflecting off of the lows and see what the analysts are going to do in the next couple of days. Auto zone, they missed . Yes, the top and the bottom. And the stock is up 3 . Yes, down 22 , and then decided that weather is a factor. Hey, blame the weather, and the stock goes up. Well, it is a retail story, but they also talked about how much more efficient the distribution is, and that is helping the stock. All right. Coming up more twists and turns in the viacom soap op era. Shareholder eric jackson is calling for a shakeup at the company for months. He is going the join us next. We told you with the heat sector, tech is running away with it. Financials are just behind. Real is touching a ray. Amazing is moving like one. 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 [engine revs] [engine revving] the allnew audi a4 is here. Billions are spent to confuse and, dare i say it, flummox the american public. Save 16 on Car Insurance. Switch now. Well at compare. Com, we say enoughs enough. So we constantly scrutinize millions of rates. Answering the question once and for all, who has the lowest. Just go to compare. Com and get up to 50 free quotes. Choose the lowest, and hit purchase. So you can get back to whatever it is you civilians do when youre not thinking about Car Insurance. Compare. Com welcome back over to the Halftime Report, and over to sue herera with the latest headlines. This is what is happening at this hour, john kerry and his vietnamese counterpart of seeing the signing of an agreement to establish the peace corps in vietnam for the first time. Kerry who served in the vietnam war says it is the next step to the build the relationship between the two countries. Having Young Americans to come here to teach english and in hanoi and other cities will be a positive step. And toyota is recalling n r nearly 2. 5 more million vehicles for faulty airbags. And now, franchises are being sued saying they have underpaid their employees in ten storing by using a faulty system that undercalculated the gross pay. And now, nyquist is not going to be running in the belmont because of a cold. The colt had developed a 100 fever when he was beaten by rival exaggerator at pimlico. Back to you, scott. And now, inside of viacom, and we have Julia Boorstin with more of the saga, and julia, you may be joining us daily on this saga. Yes sh, and this morning, sur redstone is calling for replacements of the boards because of the trust which is controlling 80 of cbs and viacom voting shares. According to the amusement counsel and former media and executive executive are reporting that the oldest dau daughter is being appointed to the Theater Company and amusements, and he said that this is my trust and decision and i have kept those who are loyal to me, and removed those who are. And just yesterday, they filed suit for their dismissal because of redstones mental state. But walking back the defense of redstones mental state last fall, a spokesman said that he never commented as to mr. Redstones competence on any matter at any time much less to make conclusive decisions about issues concerning large public companies, and now reports are circulating that sumner and sherry are looking to shake up the board. So the 40 million media empire debate is just beginning. Yes, another shareholder is speaking out about the drama inside. And eric jackson released a 99page report in january calling for the ouster of the ceo. Mr. Jackson is back with us ark and good to see you on the set. Hey, scott. What are you making of what has happened in the last several days . Well, it is changing every four hours and a new press release issued, but things are good for the viacom shareholders, because this is the right thing to happen. We have been supportive of the redstones when the 99page report came out, and we support sumner and he is an American Icon and sherry has done a great job, but Philippe Dauman is going to be going down as the worst ceo in modern times. He is paid enormous sums of money for nothing, and tenyear track record of nothing but a declining asset, and he should be removed and doesnt have a leg to stand on. And with the stock over the last few months, is there anything that has changed in the performance standpoint, and certainly, the drama is more spicy . Well, we have not considered it. We are in it for the long haul, and came out with the report on january 19th that the stock is marginally up since that point in time. And we got into it, with a unconventional pick, and what activist going after a dual class company, and it does not happen. I remember talking to the Hedge Fund Managers about viacom as a potential target and nobody wanted to touch it, and we are not interested and legal case, and moral swags, and how morale per swashgs and how does that work . But wi but we knew that thing for the right part of the shareholders are happening. And i dont want you to ask me specifically about him, because yesterday he told me and i reported that he thinks that it is a good in a sense, because it is going to continue to accelerate the growthf of the fundamentals of the company. It seems to me that you a strong advocate in him, and even Mario Gabelli himself says i gave dauman a year, and we are halfway through the year, and he has time to make it happen or else, and why not say, okay, im with goobelly and see what he is able to do and then monetize the parent mistake which he has said is the right thing to do and what about that idea . I fully respect par owe and he has been a shareholder to hero, and how he has conduct edh himself. We side with the redstones here, and we think that dauman has had ten years and that is plenty of time to show himself. This guy does not know his way around digital and chosen to sue people like youtube rather than use youtube productively and overseeing the Comedy Central and other destruction there. And how much concern do you have about mr. Redstones co competen competency, and you say that you are supporting them, but what about that as a shareholder . Listen, we get do you believe what has come out from the redstones side, and the things that have apparently come from sumner, himself . We are in the same boat as everybody around the desk and at home, we dont know the full story. We know sherry and the way she has conducted herself and the people around her, and we support what she has done. We also know what dauman has done, and we said in the report in january, there is no single action that viacom could take to boost the stock than getting rid of the ceo. If you want to compare cbs and viacom, same Controlling Shareholder whether they have the gossipy stuff attached or not, and the same structure and two different ceos and look at the multiples of the two companies. Two different companies. But remember, viacom was to be the Growth Company when they were split up ten years ago and cbs was the widows and orphans and the cash cow, and why they split up in the first place. And so you are saying that would drive the stock most, but i agree, he should be gone, and he is, you know, essentially destroyed the value in the assets. But what about them selling paramount, you sell paramount and 5 billion left, and you are remaining company with five timtime times ebi deshda. And we support the Minority Stake sales, but sumner does not want to do that and so if the difference is the Minority Stakeholders and get rid of dauman, i take getting rid of dauman everyday. If you buy facebook, you have to live with zuckerberg, and if you buy viacom, you have to live with sumner here. It is not a Corporate Governance like here, and so we believe that there are many opportunities to catylize. Have you talked to sumner . We have spoken to sherry, and we believe that the reins need to be taken off of him, and that would happen if dauman is out. And yahoo. And talking about the bad ceos all day here or what . Well, still a shareholder . And yeah, for the same republican. Bad ceo. And fundamental value here, and everybody is excited about the sale, but the more, i believe that the sale is going to be happening before the end of june, and the more exciting part of shareholders is what is coming after june, because that is when we will see what happens to the asian stakes, and the stakes are sitting out there, and something is going to be happening, and most investors believe it is going to happen, and could surprise on the tax side if they do something tax efficiency. I ap preepreciate your comin personally to sit with us. Eric jackson of springowl, and gold in the longest losing streak since november. We will go to the future pits to that. And jon najarian is underwater with the fitbit. And we will see if he sticks wit. And the portfolio leaderboard trades well. And Joe Terranova is just ahead of jim lebenthal. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel Alive Premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fundâ„¢, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. And keep lowering it 100 annually, until its gone. Then continue to earn that 100 every year. Theres no limit to how much you can earn and this savings applies to every vehicle on your policy. Call to learn more. Switch to Liberty Mutual and you could save up to 509. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Coming up on power lunch under the radar way to play the off the charts housing number, and also, one companys sixhour work day, and should the same happen here . Mr. Wonderful kevin oleary is with us for the two hours of powe power, and we will get his take from the market rally to the snapchat valuation. And in the meantime, back over to scott and the crew at halftime. And now sh, the gold is fall, and we go to jackie deangelis, and what are you seeing . Yes, scott, we are seeing the gold drop further after the last weeks fed statement, and we could see a rate hike as soon as june, and now, with the gold under 1250 is the golden age over here . Well, i dont believe it is, jackie. It is a great opportunity, but this is a fascinating day that there are two very distinct narrati narratives in the market. The s p 500 futures saying no way to hike the rates in june, and gold is saying that the hike in june may be happening so it is a buying opportunity for those gold bugs. And jim, what are you thinking that gold is telling us about the reaction to the fed . Well, i think that the unsettled not just by the fact that we have gone from pricing in the 8 rate hike to 38 chance of a rate hike in two week, but it is the rate that we have done it is unsettling, and people are hitting gold as much as they are. And the feds told us that they want a hikek but what is important to me is that we are a week and a half from the unemployment number that could change everything. So how gutsy are you with the gold shorts going into that . I believe it is the time to buy it, and my levels are 1225 on the downside, but below that, i might get worried, but so far, so good. And you will give us a full trade on the futures at 1 00 p. M. , and we will talk about the gold with Peter Boockvar and he is going to explain why he is so bullish. All right. Pete . Well, we were looking at gold and technology and the financials, and the big financials out of there, and one to the upside and one out of the down side and i dont know if you want to bottom out, because i got out of the gdx a little while ago. I saw some unusual activity there, but that is going all of the way out to november. In the short term, it is hands off on gold. Joe . And keep in mind that the market rallying, and gold is lagging, and oil is lagging, and that is the thing that we taledd about this on the show at the beginning of the month. Rotating out of energy and looking for the market, and we all said, no, go to the Old Technology and look at the underperformance, and technology up for 3 of the month, and xlz down, and that is a good thing for the market that rotation. And the is not under pressu pressure. Is that a pressure for the stocks . Well, it is when the stocks go up, but it is a problem with the kneejerk reaction. Why a problem before . It was. Well, it was. Right. Because of the chinese. Right. And always a kneejerk down, but then it will rally in terms of the market for a year, and that is whatt has been, but in terms of the gold though, it is a crowded trade unwinding now. And now, citis Robert Buckland made a bullish call on the stocks right here on the show, and it is paying off. The markets are up 8 since he said buy at the bottom. We will ask him what he thinks of the rally now, and as we go to the break, the dow heat map, and microsoft old tech, and there is old tech leading the way. Up nearly 3 . Halftime report back after the break. With usaa is awesome. Homeowners insurance Life Insurance automobile insurance i spent 20 years active duty they still refer to me as Gunnery Sergeant when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and im a usaa member for life. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. All right. We are back and the stocks are ready for a another sflun we are joined by our global strategist who joined us earlier in the year, and he said that the bull market is not dead and he joins us again live from london. Thanks. And what is your opinion now coming down after we have had this nice rally to say the least from the lows of february . In our view kind of bullish are bearish and start to back off a bit when others are getting bullish. Were kind of half to twothirds up the trading range that were expecting Global Markets to map out over this year so i cant be as bullish as i was back in february, but i i still think theres a little bit more juice left yet. 2150 is what youre looking at for the end of year s p. And were around 2070, Something Like that. A little bit more left. Nothing as attractive as it was with a contrarian call back in february. Interesting that youre not changing your view or positioning or where you think people will get the best bang for the buck. Were saying have a conversation on the show today whether its time to play a little opens in areas that underperformed like technology. Yeah. I mean, that may be the case, and there are two arguments. One for and one against defenses. The one for is they might look expensive compared to the rest of the market, but compared to other defensive assets bonds, they still look super cheap. The one against is these things have done very well in this market cycle. Surely its time to put some cyclical juice in. Guys . Yeah. Talk to me a second about whats got to go right to get there versus what can go wrong. What im talking about, of course, well go through this president ial Election Campaign even uglier than what weve seen when it comes down to two candidates. How do you think it plays out in terms of the market . Is it a cloud or do they see an opportunity depending upon who moves ahead in the polls . Well, i think that puts a cap on where we think markets can go from here, but i think theres a base on where markets go frahm here given the yield attractions of Global Equities and asset classes. Worth pointing out to you that Global Equities yield 3 , 3. 5 and global bonds only 0. 8 so thats what kicked in and supported the market in february, but the the move above that, above the levels that were describing is going to be tough. Hey, robert. Lastly, before i let you go, do you think the market is pricing in the fed moving next month, and by market i mean both bonds and stocks . If you look at what the twoyear has been doing over the last couple of days, could you say that the bond market has been in denial and now i wonder what you think about sort of both areas . The equity market is always a strange one to look at. Is it bad news because they are hiking or good news because they are hiking because the economy is better . I think our view was that the fed would hike maybe once or twice this year. We werent expecting them to hike directly and immediately. I know the markets are coming closer to that but we on a broad equity basis think that theres enough resilience out there to take one or two rate hikes this year. Mr. Buckland, appreciate your time today. Talk to you again soon. Robert buckland, again, the chief gloenl equities strategist with citi joining us from london today. Thoughts, guys . Well, the one thing, want to stick with the defensives, one of the problems by doing that, scott, many of the names have built up in valuation. When you look at some of these names, your biggest concern is, hey, look, they were great when they were the typical defensive names but because of the reaction and everybody sort of piling in those names. Look at the names, since months, pretty good. Con ed and at t. You can see why mcdonalds started at a big slided a pullback and you start looking at valuation and can it sustain the high value . Can you play defense or do you play opens . The only capital based on what he is saying is equities, 16 times next year number and 17 or 18 times this years number. The market is fully valued but every other asset class is much more fully valued and maybe this is the generational opportunity where you see the massive flow from credit into into equities, i dont know, i dont think so but maybe thats the case. Up next, a tradeup date on johns recent trades in the option market. Do they have him dancing for joy or wanting us to pull him off the dance floor . Were back after this. It never gets old. Never. Everybody knows that Business Today is built on data. The thing is, most businesses arent getting the most out of it. The ibm cloud is uniquely designed for all kinds of data. Like data from the Weather Company for 2. 2 billion locations. Or billions of healthrelated data points. Even social sentiment in real time from hundreds of millions of people. Its all in the ibm cloud. If you combine that with the data your business already has then things get interesting. So right now were working with a retailer to blend social and Inventory Data to help predict demand. We can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. And another company we work with can apply analytics to sensor data to save millions in energy cost. Today, every business runs on data. Thats exactly why we built the ibm cloud. Today, every business runs on data. singing you wouldnt haul a load without checking your clearance. So why would you invest without checking brokercheck . Check your broker with brokercheck. Welcome back to the Halftime Report. Shares of monsanto are halted. Monsanto has formally rejected coming from Germanys Bayer ag. In the statement they talk that the current bid undervalues the company. Also saying that, again, from the companys ceo and chairman hugh grant we believe in the substantial benefits of an integrated strategy that can provide growers and society. The current values significantly undervalue the company and they say they have nab mousily, the board, rejected this particular deal. They also say that there is no assurance that any transaction will be entered into or consummated or on what terms. No time line being set for any type of deal but they are open to discussions. Thats the latest news. Back over to you guys. As expected, usually do reject the first overture. Theres also maybe some antitrust concerns to consider. You guys have a real quick thought on this one . If the dollar keeps going higher the deal gets more expensive because they are paying with euros so i think monsanto has been sought after for such a long time, maybe they go. A great franchise, its worth it. A pair of bullish options trades, jon najarian had on fitbit calls back in april. Lets do that first and talk about attila first. Fitbit and ive said it before, i love their product, hate the stock, because it hasnt worked for me, judge, so i had calls. Basically moved out of calls into the stock and still long stock. Still long the stock. Down a couple more percent today. Still long the stock. And ive been putting myself in an overwrite, selling option covered calls against the stock each month. Youre getting about 4 , 5 selling the covered calls. That hasnt covered me against the loss. I got you in the stock. Youve got altria, whats the deal . I still like. This, you know, cigarettes and this one has worked very well and im still in it holding right now. Okay. Pete, you have some options activity, options action. Real quick. Fire eye was a pretty interesting day. Stock beaten down and i mean beaten down, the 14. 5 strike calls getting bought. 6,000 traded between 28 and 50 cents. Stock actually has already moved well above 15 right now so my advice would be, i know theres unusual activity in there, i wouldnt chase it because these options have already doubled from that buying that came in earlier, but just something to keep your eye on as fireeye is getting up and through 15. Three hours to go. Power lunch will take it in a minute or so. Joe give me, you know, whats on your mind over the next 23 hours before we meet again. Follow through. Thats what you need to see. Need to see follow through and specifically follow through in the financials which have an incredible amount of rhetoric surrounding it and then a yield curve which is flattened to its narrowest level since 2007. Now the realization that we think the fed is going to go sooner than we thought and now the financials with a place to be finally. Actually, i bought some bank of america and bought sop schwab taking advantage of that, but the charts look good and the fed will surprise people. There are plenty of people that still think they wont go. I bought sink any financial and add it had to the halftime portfolio and real money and in the portfolio financial stocks. Pete, two seconds . Keep an eye on financials. My favorite name still, jpm. Well see you tomorrow. K power starts now. Stocks are in rally mode this tuesday as an offthecharts housing number sends the bulls running. Right now take a look, the dow and s p seeing their biggest gains in two weeks while the nasdaq is having its best day since march, up by 1. 9 . Welcome to power lunch. Along with Tyler Mathisen and Brian Sullivan im melissa lee. Michelle carusocabrera has is week off but have no fear mr. Wonderful, kevin ole lie is riding shotgun with us over the next two hours. Great to have you with us. Eric marshall, comanager of the hodges smallcap found and dav