Transcripts For CNBC Fast Money Halftime Report 20160527

Strong week for the markets, and strong broadbased tech, and financials down the list, and it is big against a big backdrop of the oil hitting 50 this week, and the fed chair speaking in an hours time, and josh brown, i go to you first, new highs in the offing . We are not that far away . We are not that far away, and what is really, really great about the positioning that we are seeing here is that the advance of the climb line, and it is absolutely cooperating and breaking out in and of itself, and you have a lot of the small and the midcap issues getting the job done, and it is a marked contrast to last time we challenged the levels, and way different from what felt like the end off a bull market a year ago, so it is a Long Time Coming if we punch through, and one very clear positive is that it is a lot of stocks hanging out here, and not just, you know, the nifty nine or fang or Something Like that. And you know, serrat, you have apple back to 1,100, 100, that is a closely watched story, and it is is back at 100, and you are looking at tech, serrat, and it is old tech, and apple and the fangs and the chips and the cloud, and the significance of that is what . So you are seeing the cyclical move now, because you the confidence back with the consumer, and confidence back with the industrials, but sort term what you have to watch out for is that we have the fed out there, and brexit out there, and i think that the election, so we might test the new highs, but we come back, and then longer term at the end of the year, we are much better off, but i see another pullback come ing ing i cards. And you mentioned the fed, and now, steve liesman, janet yellen in little more than an hour, and you dont expect this to be groundbreaking, because next week, look out . Right, right. The store are i have that she is having a conversation with the harvard professor greg mankian, and she is not going to be giving the market the policy outlook that everybody is looking for, and maybe she is going to be watching it, and some risk she does it, but ultimately next week, adp, and the jobs and the personal income spending on tuesday, and big week for the data, and the jobs on friday, and what happens is that yellen will give a speech, actual speech to wind out what she is going to be saying on june 6th in phillie, ay, and the day of the guidance from janet yellen. Yes, but the market is ready even if the fed goes . Yes, it is priced in for a move in june or july, and we were speaking in the green room about it. And you dont have the microphone on, but paul richards, and medley advisers and new gig, and congrats, and what do you think . Well, is the market ready . No, i dont think so. You dont . No, the fed is prospectively ready, but the market is not. Where have they been, paul . Not paying attention . And i agree with you, steve, but every client we are trauk to, and we have been having client meetings in japan and europe and u. S. This week, and no one knows, and there a lot of the power of just sitting on the side right now, and if you are listening to the fed, they will go, and if the data is good, and then yellen in philadelphia, she will tell us. And isnt the market activity this week proven that the market is finally ready . Well, it is coming, but there is a lot of the cash sitting on the sidelines that could move, and lot of and remember, two weeks ago we would be sitting on this same agenda, and talking about the bears out there, and those bears have not covered yet. So i think that the market could get a genuine surprise by if they move, and the market rallies then you will see a genuine rally, and european stocks might be showing us the green light as well. And john, i have been looking at the issue of the movement into tech, and the movement into financi financials and the bears within the stock market, and those invested, but in the bond proxies and hiding out in the places like utilities and telecoms and other areas to catch the yield, but now it is a shift into the cyclical plays to portend a more optimistic economic environment ahead. Yes, the atlantic fed went up, and the new york fed up, and the global dax is up 10,000, and the Global Economy is heal iing and india is up 500 basis points, and rebar is up, and what yellen said, and the fed is prepaired to go, and again, in june or july. If they go in june, they will take a chance on the brexit. If they dont, and wait for july, they will have an extra free pass of brexit, and extra month of data here, and so sit thing at the highs, and churning into the seventh inning stretch, and ready to take off. And 40 points away from the alltime intraday high on the s p 500. 40 points. Well, i dont believe that the market has what it takes to push through it, scott. The two things hold iing it bac are that you dont have the growth in profits to propel it forward and as we have been talking about, the fed is out there. And the chances of the june hike have gone about from 12 two weeks ago to 40 , and that is is a huge jump, i have frankly never seen this group of governors and feds telegraphing the possibility of a june hike, and the probability, and the certainty of it. And that is a good thing, assuming they follow through . That the market has not sold off . And that it follows the language. And it better, or otherwise the credibility of the fed is shot. The fact that the markets have not sold off in response to this is is a positive sign, and frankly, scott, it is giving the fed the cover they need to do the rate hike, because remember, for most of the last year they have been worried about the market conditions, and they have said financial conditions and instability, but it is really market conditions. It is not any more benign than this. And more on that, paul. What gets the market to the point to accept it, and you think that it can deal with it . Well, basically, based on the people we talk to, they need the data. If they have a good round of data, 160 is good enough for payrolls of the fed, and maybe not enough for the market, and if you have 180 or 190 in a week followed by yellen, it is going to be great, and not upsetting things, but i would like for yellens speech in october to pave the way in december, and we handled it well. And if you get 160 or thereabouts on the jobs number next week, you will discuss if the market does not like that number or the market is dictating to the fed whether you can move or not. And i can hear and see thatp happening. Well, last week, i did a story of to difference fof markets and the feds and expectations over the jobs, and the market wants the 200,000 number, and that is speaking to the health and growth, but not the fed. The feds numbers are closer to 100,000, and where they are and job growth commensurate with the growth force it is near 100,000, and so 60 is enough, so i am telling the market to get more attuned with the fed if you want to know what they are going to do, and if you look at the idea of the market digesting the rate hike. They went in december and paused to what is going to amount to at least six months, and then forward ahead, but when is the next time to move . They wont go before the election, and maybe december, and so when i think of the path of things, it is a quarter point every six months right now, and ki live with that and that is the reason that it allows me to value the stocks in a way that does not overly emphasize the rate. And housing looked good . 16 . Retail looked good this week, and maybe some of the apparel folks in the last couple of weeks are hurting, but overall, retail is pretty good. And the xrt is up 1 today, and maybe up 1 yesterday, and those stocks have bottomed. One of the things to point out is the modern history of this big bad wolf that we know when the date is, the market gets used to it, and by the time we get there, we are rallying into it. So if it is a fed hike, so be it, and we did the same thing with the taper, and the same thing with the end of qe. It is just this repetitive pattern, and it seems to be playing out again, and i dont think that people should fall out of the chairs as a result of it. The other thing is that we have a possibility of an earnings acceleration in the second half, and keep in mind what was going on in the second half of the 2015, the u. S. Dollar was absolutely recking sector after sector, and forcing the companies to come out to are rip down the expectations, and we are lapping that period. And the commentary is better and so are the numbers. And another part to add to that is energy which is back to 50, and the confidence coming back to the Industrial Companies is much better than you saw at two quarters ago or three quarters ago and a little bit more visibility, and if the oil is going to be coming back down a little bit, you add it to the increased demand from the consumer, and inflation from the wage, and the consumer is, there and and you could see some acceleration from the wage, but you could comp it, but is it sustainable . Well, the investment has been lame, and part of the reason on the back is because of what has happened with the oil. And some thinking that the worse. Of it is over, in terms of the drag of the Overall Economic growth both in the oil sector, and business investment. And trade. And i thought that what cramer had to say this morning was interesting, too, and worth reminding ourselves of as we are seeing the financials pick up. Oil back to 50 is taking some of the pressure off of the loans from the banks that everybody is worried about a month or so ago at 6 to 8 weeks. Well, that is a tiny piece. We way of discounted it. Huge concern. And what else is there. And the high stress of the yield sector. And yes, it was extrapolation, because it is not the loans, but the percentage of the writeoff that you take on the bankbooks, and that is what is scaring people. And last thought are from you, paul. Two to three hikes this year, and is that even realistic or over the e skis on that talk . Well, i think that steve is right on the money. Start with one, and then december prospectively comes into play, but we have a lot of stuff between now and then, an including a president ial election, and globally people are worried about, but lets get this one out of the way, and then talk about that. And what we should talk about because it is in your wheel house, the dollar. And the currency moves and brexit to consider, and the dollar is a very important part of the entire equation. And let me tell you about the dolla dollar,b the euro this week has ranged 108 to 101. 50, and the center is 105, and so stop thinking of the dollar being volatile, because it is consolida consolidacon sosol day consolidative. And it is important. And steve, dont bite the hand that feeds you. It is not us, and we take it from the market, and the market gets that concern and starts to talk about it, and we reflect, that and now they are talking about the same things out there, and brexit was capital letters last week, and lower case this week. And with the dollar, the volatility, and if you take it out, it is lot easier for the companies to manage the currency r risk, and right now, the volatile si gone from the currency, and that is a good thing. Yes, thank you so much. Guys, good stuff as well. And here is what is coming up on the Halftime Report. Still ahead, retail maybe in a funk, but one retail stock up nearly 30 this year that just keeps delivering the goods. We will explain in the trader blitz. Plus, going beyond the dollar menu. How fast food is getting the consumers to spend more by offering meals by the bundle. And planes, trains and automobiles. A record 231 million americans will be flying this summer. Phil lebeau is live at ohare where the travel season is heating up. It is all coming up on the Halftime Report. 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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. We are back. Summer travel season ready to take off. What can travelers expect as they are heading to the airport . Phil lebeau is join us from ohare in chicago. And phil, we have been thinking that we should expect big lines at the security, and is that how you see it today . Well, we will see that this afternoon, and during the rush hour in the afternoon, but we definitely saw it this morning, but certainly nothing like we saw a couple of weeks ago where people were waiting 1 1 2 hours or 2 hours or longer to get through security. We have video from earlier in the morning, and we saw essentially, people were waiting 30, 35 minutes and not at the precheck station, because the e precheck line for tsa it was ten minutes at most. The airlines and the airports are reporting shorter security lines, which helps the trav travelers, because they know how bad it is going to be, and they are getting to the airports earlier, and not as stressed, and the airlines are adding the contract workers to assist the tsa outside of the security stations. Not doing the security, boutside of the security stations, and get ready for the busy summer, guys, because if this is what we are going to be seeing through labor day, and 231 Million People flying over the next three months, and record passenger levels driven by lowerer fares and the economy is driving the traffic, and yet when you look at the airline index, and the shares of the different airlines, they are not doing much, and why . Because of the lower fares, and the pas ssenger revenue is goin to be down 6 to 7 for the major carriers, and that is why the stocks are not get anything love right now despite that we are seeing the record passenger levels here in the u. S. But the bottom line is this, scott, behind me, maybe a tenminute wait for people at most. And phil, you took the words out of my mouth, and going through all of the thing, and i was going to say to myself, and yet, the stocks stink. Yeah, they do. They do right now and phil, have a good weekend. Phil lebeau. And serat, they stink. Yes. Why . Because delta is trading six times earnings, and great cash flow, and raised the dividend. If you look at what they said and all of the airlines have said, we are cutting the capacity, and cutting the capacity more, and the demand is there, and we are an oligopoly situation and they have all committed to the declining capacity, and raising the prices for next year, and every airline said that it is is going to be increasing, the revenue per seat mile going up, and you look at that, and say, how cheap can the airlines get . Well, year to date, the stocks are down doubledigit, and in some cases more than 20 . Looking at the value there, and the huge cash flow, and the Balance Sheets are strong, and the demand is strong, and no capacity coming on, and no new airlines are coming on, and so i think that as a Value Investor anybody on the other side . I am on the other side of this, and i usually agree with sarat, and the problem is energy, scott. You have Energy Prices that is in the industry that is burned by hedging. They u stau big collap they s collapse of the oil price, and they didnt take advantage of it. Now, fuel is going up, and they did not hedge, so they will be in trouble again. And they were facing trouble from the government to have the price prices where they were, and the second one, they made money when oil was 80, so they are ready for it as they cut the capacity, but this is where the earnings have to show as opposed to the stocks actually coming through beforehand. And scott, you dont like the charts . No, they are brokenment cant own them. And everything that you are saying may turn tout be true, but the market is not recognizing it yet. And you could be right on the fundamental change that may or may not take place in the next year, but you could end up owning it, and another 20 down. None of them are buyable, and jetblue is the worst, and delta is probably the best, but the best comparably speaking is na good trade. And now, in may, the stocks are picking up, and yet, american is down 14. 5 , and delta down 1 , and jetblue down yes, these are cyclical stock s. And if we think that things are improving which we believe they will be, you will get more demand from the business side, and the consumer side which is strong. And if they are cyclical though, a six multiple is a n negative, because it means that the street is saying that the earnings have peaked for the cyc cycle. Right, if oil is at 50 and you get the demand back from the business traveler, from the Oil Companies that were shutoff, and you will see the higher prices for the business traveler. Which is what they want. Issarat, a ton of the compans have a lot of debt. Yes, and traditionally they do, but delta is not. And so you look at the cyclicals, and the transports are one key areas of the market that is not doing anything. When oil doubles, the transport struggles, and the airlines struggle. And sure, if the economy is pickinup, and you believe that, and the transports should start to performing. Yes. And is it a tell that they are not . No, i dont think so, because the transports a lot of things that go into it, and the rail car loadings is down, and other stuff is down, which is obviously are going to pick up if the atlanta gdp is going to 3 like it is going, and it has the industrials and the cyclicals should start to tick up. And it is not so black and white. The e kconomy could pick up, an the Oil Shipments fall off because they have peaked for the cycle and you dont see the benefit of people shipping auto thes and the same for coal, the economy is doing better, but is nsx doing better shipping coal from kentucky to the midwest . It is not so black and white to formulate a trade based on one step. And now, big lots are soaring, and a lot more coming up. Plus our resident value hunters sarat and jim will unveil their top prospects coming up. And coming up, the heat sectors, all up and the s p 500 up by 6. 5 . For you gold with the right pool of investors, theres a lot of money to be made. But first, investors must ask the right questions and use the smartcheck challenge to make the right decisions. Youre not even registered; im done with you i can. I can. Savvy investors check their financial pros background by visiting smartcheck. Gov welcome back. Time for the trader blitz, and four trades on four stocks making news. First up, big lots beating on the top and bottom lines and raising the full year guidance, and jimmy . This are retailer is is working. Yeah, and lot of the discount retailers are working, and a space to be. This particular company for the last two years has knocked on the door at 50 a share a kocoue off times and not burst through, but it is about to go through. If you think about it, with higher Energy Prices it is taking a bite out of the consumer paycheck, and where do they spend it . Big lots. Johnny. Yes, take the valeant, and the stock is acting well, and the low 10 billion market cap and you have the buy it. And now, ahead of the street, sarat, what about this one . Well, it is the beauty side is the guidance to be and the consumers are spending money, and on these products. And josh, palo alto . What is going on here . Terrible. The stock is dropping faster than my metabolism, scott. And i looked at it last year and i passed on it, and i am glad, because i like the business they are in, but they are not good at it, and so you have 40 revenue growth, but unfortunately 50 growth in the expense, and the street does not like these names anymore, and they are actually wanting them to be more profitable, and it is not a good trend for price. So i would avoid it even if you love the company. And you mentioned your own metabolism, we will go there next, coming up, the the fast food by the bundle. Mcdonalds, and burger king and wendys have sold extra meals by taking the dollar value to the next level. And are those good for the bottom line . We will talk about those. And plus, billions of dollars spent on Outdoor Sports, and we will look at mud runs to competitive fishing, and looking at the dow break. And United Health care and pfizer, and health care is leading the way, and no surprise there, and the dow is up 37. And a lot of gooing on that one, judge. Our mission at clover is to create the best tasting, highest Quality Dairy products. Clover has relationships with 27 different family farms. The environment is who clover is. Without it, were nothing. Pg es been a great partner. Theyre the energy experts, were the milk guys. Pg e worked with clover on a number of Energy Efficiency projects to save energy every month. If youre part of the fabric of the community, youve got to ensure that you do things right, environment included. Learn how you can save at pge. Com save together, were building a better california. Welcome to the Halftime Report and we go to sue herera with the headlines. Here is what is happening this hour. President obama is making a visit to hiroshima to lay a wreath to honor the 140,000 lives lost in that nuclear attack. We may not be able to eliminate mans capacity to do evil, but among the nations like my own that hold nuclear stockpiles, we must have the courage to escape the logic of fear. Pursue a World Without them. Iraqs Prime Minister is visiting troops injure ed ind i military operation to recapture fallujah from the isis militant s. They are trying to take back that city northwest of baghdad two years after isis rule. Back at home, the risk of mold expose sure is prompting a nationwide recall of more than 3 million sippee cups. It involves five types of the spill proof tommy tippy sippy cups, and over 3,000 reports of mold. Ninetime champion rafael nadal is pulling out of the french open, because of an injury to the left wrist. He received an injection to numb the pain, and he was scheduled to play the thirdround match tomorrow. Shame. That sis the cnbc news update, and such an outstanding athlete, scott. Yes, and ninetime champ. And this weekend, with people traveling that means big business for people traveling, and we go to the turnpike in new jersey rest stop to susan li. Yes, we are at the Vince Lombardi turnpike, and talking to families who have been hitting the road for the memorial day weekend and they have come from all off, and ohio, and maine and also some families from north carolina, and so they are here, and you know, taking a rest from the trip are, and stopping for some food, and some of the fare on the offer, and some that they have been partaking in is the fast food fare, and this year, it is about the bundle so far for the like ares of mcdonalds, and burgerer king and wendys, and talk about the bundles, this is the mcpick two menu are, and the wendys 4 for 4, and burger king with the 5 for 4 menu. And this is helping them to sell 100 million extra meals in 2016, and that is up 20 from 2015, and on average, americans, 1 in 3 visits to the fast food joints is to basically take advantage of the promotional deals which is helping to drive the sales at mcdonalds in the First Quarter seeing the samestore sales increase 5 , and burger king with a good april up 4 at their locations across the United States. And also sends a message to those who maybe dont have the promotional fares who dont have the bundles, they are getting into the game, and for instance, starbucks has an 8 power are l lunch menu, a salad and sandwich, and ethos water as well. And there are also some other Dining Trends such as appetizer and entree. And other trnds if you are looking at savings for mcdonalds, what is that saying about the health of Consumer Spending . Back to you. And of course, with the restaurant trade today, what are you liking here . I like jack in the box and performing well and beating the index and the peers. It is up 10 year to date. And up today as a matter of fact, but Going Forward they had a great analyst day, and said they will refranchise some restaurants, and obviously a buyback and raised the guidance of 2017 again, and so it is going to be positive Going Forward and the stock is looking good technically as well, and 2 billion market cap as well. Is the mcdonalds trade tired . I dont think it is, and the story of the summer driving season plays into their hands, and thinking of the young parents, and the millennial parent, and we are going to go organic and in the car with ed to lers, that mcdonalds happy meal is a ease sway to pacify the kids, and all of the things that they have done with the menu, and the mcpick pick, and the 2 mcpick pick, and the 5 mix and match or whatever they call it it has a lot of play as well. So i like the mcdonalds here. And josh . The best looking chart in the group which is weird for me to say this, because i dont like the restaurant is panera. Panera and i dont get it, because it tastes like astronaut food, but it is about to break out in the major way. And 220 has bneen a ceiling on the stock, and each time it has bumped up against i, it is falling, but it is a pattern of the highs and lows and challenging 220 again, and if it is above on the decent valium, the juice is loose. And anybody else want the hold back on the panera, the food or the stock . Well, too much carbs. Are there enough stores out the there . And obviously in manhattan, plenty of them, but out thereon the open road, you will see more mcdonalds, and burger kings than paneras. And now, we will have pick for the portfolios and jim is making moves on the portfolio challenge here at halftime, and the champ is falling behind, but the trades are coming up next. This is lulu, our newest dog. Mom didnt want another dog. She said its too much work. Lulus hair just floats. Uhh help me doorbell mom, check this out. Wow. Swiffer sweeper, and dusters. This is what im talking about. Look at that. Sticks to this better than it sticks to lulu. Thats your hair lulu mom, can we have another dog . laughing trap and lock up to 4x more dirt, dust and hair than the store brand stop cleaning. Start swiffer ing im spending too muchs for time hiringnter. And not enough time in my kitchen. announcer need to hire fast . Go to ziprecruiter. Com and post your job to over 100 of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. announcer over 400,000 businesses have already used ziprecruiter. And now you can use ziprecruiter for free. Go to ziprecruiter. Com offer6 coming up on power lunch we expect to hear from fed chair janet yellen speaking up from harvard. And plus a superbug that showed up here in the u. S. , and what you need to know. And liquid profits and a hint, and looking at one that is under the radar continuing alltime highs. That is a hint. Back the, you scott. And now, where do the experts see opportunity . Well, going back six months ago, scott, and the mlps were untouchable, and di sas e ter, and di sas e ter, and part of the bear side is that the distributions were going to be cut, and fast forward to now, and the distributions have few been cut, and some of them look like the distributions are set to grow with oil above 50 or at 50 and looking to raise higher, and you have Companies Like Energy Transfer Partners Trading at dividend yields, and the charts are sewing that the pricing is picking up. That is the value Going Forward if you dont have a collapse in the Energy Prices. And you like, the mlps as well and the rates factor into the trades . Well, rates are a big factor, and the you utilities and the mlps and there is better place to the park your money than the mlps and the guys are looking for the alpha trade which is what is going to be working on the financials, and the energy is running that way, and the industrials, right . And i think that going into the election, and seeing the fact that whether it is clinton or trump, something is going to be happening with the infrastra infrastructure, and is it is going to be happening in a big way, and those stocks are starting to move, and so dont fear the election, but embrace the election. Sarat . Intel. Microsoft, and old tech, and looking at industritell, and lo at servers, and who is buying them . Amazon, and cloud, and google and microsoft, and the demand for the Server Technology is off of the charts. And 3 dividend yield, and company with coverage of 41 , and this is a good place to be above and below market growth. Looking at the halftime portfolio leaderboard, and josh brown making moves. If in an effort to get out of the red, and looking at the leaderboa leaderboard, and Joe Terranova is basically neck and neck, and joe and jon najarian in behind that, and now, josh brown trying to pick up space . Yes, i took a small look at sanderson farms, and crown castle, and this is dividend play, and almost a quasi utility, but it looks like it wants to roll up to 100, and these are types of names that i need to make up the ground. One of the bigger mistakes in the spring is to hold on the stocks that are not doing knot, a and we dont have time for that given the constraint of the contest. And the other name that i added is dollar general. It is a stock that is flaw lele technically, and it has momentum, and the great fundamentals, and it is another name that is triple digits relatively soon. And dollar general, and the dollar trees, and that sofrt the retail, and adobe . That plays into the ek if tech conversation, and what are you thinking . Well, adobe is incredible here, and takes out 100, and maybe by the time i am finished talking about it, but it is an old tech name with a new tech flair and they have done some smart things that were painful at the time in terls of not selling the pieces of software, but selling the subscription licenses, and that changeover was volatile for the stock, but now that it is made, it is acting more like salesforce, and less like oracle. And sanderson with a nice run up 16. 5 , and time to hit the regist register. Yes, it is not move anythingmore, and i have to make up some ground, so i cant let that play out while the stock is stagnant. Fine breakout, and good way to catch up. Well, you know, i have to do what i have to do and i have six months left, so. And you can follow all of the action at cnbc. Com pro. The business of the outdoors with more than 600 billion spent every year, we will break down the sports and the trades next. As we go to the break, here is a look at the performance of the s p sector so far this year. With available virtual cockpit. Technology moves faster than ever. The allnew audi a4, with apple carplay integration. All right. Back. And lets do a market flash. And a sector that is outperforming dom chu . Well, it is technology and one Industry Group in particular, the chip stocks on fire so far this weekend and for the month of may overall. If you are check out what is happening with the vanec vector, and the ticker is smh, and some of the best have been chip names and applied research, and lam a materials, and micron, and among the weeks biggest gainers, and another one n the s p 500 tech sector, by and far away, the best performing chip stock is nvidia. So we mentioned it in the top of the show, the pick up significantly in tech, and if it keeps up the momentum in chips is what . Well, it is speaking to the v value trade we have been talking about a lot this year, and it is coming back in vogue, and the dividends, and if you believe that the stock market is stuck with the low earnings, and fed that is going to be keeping a ceiling on things, then you want the dividend, and the chip stocks will pump it out. Any that you like better . Intel. I know that is a rasis a sarat he h was talking about, but the data and the intel spending, and that is where they want to be. And we know that one that we like, and josh hates is qualcomm, and if you look at the chart up to 55 and here is another space if the consumer comes back, and you want to be part of the semiconductor space. And the ones that dom mentioned are the semiconductor cap stock, and the semi condoctors will semiconductors will come back, too. And he is right. And it is not something i want to be short. Sarat stayed with the trade when it is down and out, and now better. But i will point out that we have had the flair ups for the groups in the past over the last few year, and the then they fail. I hope it is not the case, and be constructive for the market to have the semis lead the way higher, but it is not apparent that this is definitely going to happen, and it is really a couple of weeks constructive so far. And we talk about the transport, transport, and if the semis can show the leadership, you will see the broader leadership in the market. And i think that tim cook had a good asian trip, and he got the buffett packing, and apple is doing well, and the iphone sales will be better, and my son personally said that he is waiting for the 7 to come out, and that is a big upgrade cycle and Virtual Reality is big for the chips and everything else, and gaming and sony is, sony up to almost 30, and we are seeing the good things in the gaming space as well. And this week, the unofficial kickoff to summer, and in that spirit, we are going outdoors, and the next guest is profiting from the 646 billion outdoor industry. David farbman runs carbman, and thanks for coming on. Thank you for having me back, and great to to be here. This is suggesting that interest is not waning in the least . No, the outdoors is on fire, and of course, the consumption is changing so much across all s a spects of media and video and the way that people are consuming video, and it is placing carbon tv and the things that we are doing at carbon media are really well in line for the industry. And can you tell me exactly what you do . Of course. Carbon media group consists of hundreds of web sites. We comprise a total audience of 35. 4 million unique visitors per month, and that makes us the world leader in online outdoors, and we are also the number 12 sports property in north america just ahead of major league baseball. A couple of flagship sites that are worthy of talking about is the outdoor hub. Com which is the daily content, and carbon tv which is the netflix of the outdoors and the first mover with a big advantage in growing rapidly and streaming video of outare door pro is change changed. Unfortunately, outdoor is pushed off cable and things are moving towards video on demand as amazon and hulu and netflix and simply on demand on cable changed the game in viewership. David. You know, when i think about outdoors and i think about stocks, of course, ka becabella dicks comes to mind. Maybe its a stretch to throw Sports Authority in. There its closing as well. Does that give you concern that maybe the demand isnt there for Outdoor Sports . Actually, cabellas stock is trading up around au 50 a share wlachlt theyre doing that is unique, its an advertising partner of ours, theyre targeting in some really cool ways. Stle figured out how to take content, add brand and create a real authentic feel. But at the same time with the mess enking, advertising, theyre really focusing on at bugss. Companies like cabellas and chevrolet, theyre not able to track what a user is doing online but what they do whether they walk into an awesome chevy dealership and incredible cabellas store. You have big time clients too, deere, discovery, dig dicks Sporting Goods, monsanto. Yeah, were blessed to work with a ton of great partners. The right way tone gauge users and be tibl go out and track down the right information. And theyre also getting ahead of the curb with carbon tv and with streaming video which very cool to seat brands love to get themselves intergrated into programming and, you know, consumers to day, as we all know, we want it how we want it, when we want it, where we want it. And thats exactly what carbon tv and sites like outdoor hub deliver on the web. So if you get outdoors on this memorial day weekend, theres a few of the blonde mushrooms left. So if you see a popple tree, hunt the scarce mushrooms down. The end of turkey season. Get throughout for a hunt. Fishing is taking off. Most importantly, its memorial day and the greatest country in the world, the United States of america. And carbon media across all of our properties, we got you covered 24 7. Appreciate it v a good holiday weekend. Well see you soon. You, too. So what youre the outdoorsman here. Whats the outdoor trade . Listen, as i mentioned, i think the stocks are tough. You know, cabellas and dicks and with Sports Authority, it makes me think the demand is not as strong as people think. I would be in dicks and cabellas. Dicks has underperformed. Thats the point fuchlt look at a two year chart, neither of them are going to really wow you. Could they go further from here . Has the short term trade been good . Yes, it has. But again if, you want to be in the space, those are the two places to be. I think amazon can beat up any Sporting Goods company. I see zero move. I dont see the appeal of walking into these, you know, hundred thousand square foot sporting mega martz when you really need a football for your kid. To me, i dont think why we think the companies are imnun what retailers in 100 other categories have not been immune to. Were having this conversation about dicks Sporting Goods and customers are going and spending on. Sports authority is in the midstst liquidation sale. By the way, cabellas is a great company. Dicks is a great company. Its not always their fault. Theres a limit to what can you do with your stores and brand. At a certain point, convenience is going to eat into that. And most convenient way to buy is not their stores. I think the millennial is pivoting away. Theyre going to destination vacations, excitement vacations. Experiences. So thats where carbon kblme is positioning themselves. Lets go to one more name, tractor supply. Youre not going there for a football. But youre going there for clothes and some of the workman like stuff that do you outdoors. All right. Coming up, second half trades ahead of the long holiday weekend. Recently, a 1954 mercedesbenz grand prix race car made history when it sold for a record price of just under 30 million. And now, another mercedesbenz makes history selling at just over 30,000. And to think this one actually has a surroundsound stereo. The 2016 cla. Lease the cla250 for 299 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. 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 were back. Power lunch, melissa lee and the gang getting ready in a few minutes. Take a look at the energy names in the market right now that are underperformingen into a week when oil hit 50. Keep in mind, clearly sh as youre looking at these names specially, the marathons and murphys, hello . We lost it. Theyre down almost double since the february bottom. Yeah, im not sure, scott that, the market for these stocks is believing the rally in oil. I think there are questions whether 50 whether the production comes on line, Pay Attention to the rig count. That will give you an early read that maybe supply is coming back online and oil prices are headed down. Not for a crash level but back into the 40s. I think thats what the stocks are telling you. So we own the refiners. They did very well last year. Jim and i were talking about it. They have to find a strong summer driving season. If you see that, youll see margins improve. The refiners are cheap and they have good Balance Sheets. I think oil rallies to memorial day. Im a believer in the oil move. Its a seasonal thing, too. We rally to memorial day and take a breather. The big factor that nobody is talking about is really india. India comes back online, that is a huge economy. And it has a great demand for oil and cut rates. I think the Global Economy heals, oil will get a bid. We have the canadian wildfires and there are a lot of things that went into it. And production is coming back on line now. Exactly. Most important thing to watch . Next week is what . Liesman laid out a bunch of key economic data. There is the jobs report. Theres on june 6th, janet yellen in philly. The jobs report. Its the jobs report that will dictate whether the fed goes in june or not and the market, as long as its a clear signal, as long as its a clear number, as long as its 120, the market wont know what to do with that. But if you get 160, youre going to see clear indication that june son the table. The Unemployment Rate can tick up as the participant as people come back into the labor force looking for jobs. So that can be what about this followthrough in tech and financials . I think the followthrough in tech is going to depend heavily on whether or not the warriors are able to pull it out. You really dont want norcal watching this team fall to the thunder. I think from the sentiment perspective, not good for venture back startups. Financials . I think Interest Rates will dictate it. The financials have a good run so far. They got hurt in the beginning of the year. If the numbers come in as we expect, financials will still continue to run. Good stuff. Well see you on the other side. Power lunch begins now. A big week for your money coming to a close with a warning about a possible recession coming ahead. Those are your top stories heading into the long holiday weekend. Hi, everybody. Im brian with tyler and me llia and theyre both tanned. Once a year i do this, baby. I koment remember whether it was the day before the fourth of july or the day before memorial day. So i wore it today. This is the decline of the American Work ethic. Thats what youre hearing. Hold on. If youre on the radio,