Over . I dont know about over. Just pause. We rallied so much from the brexit news so quickly. Surprised just about everybody, i would say. Myself included. I think we pause. Back and fill. A big week in terms of the jobs number friday. Earnings next week. Get more color from what companies, what theyre saying. What is clear, mel, rates are staying low. Even if they dont stay this low, theyre going to stay low. So what you are seeing today is kind of the continuation of chase for yield. I have been positioning a little more u. S. , a little more high quality, and certainly dividend, where i see dividend growing. Maybe theres a little arbitrage. How do you get yourself to stay in yields at this point . Consumer staples, sectoring doing well today. Joe, isnt it hard to stay in those trades at these valuations . I dont know. You could have made the argument three, four years ago about the defense for yield strategy. Consumer staples, a potential for global m a. Geographically, where can we find consumers willing to spend on necessities. The consumer staple trade, although looking at a valuation that is relatively high. I think its a place you want to focus on from a defensive strategy, but from a macro standpoint overall from the market, stephanie highlights, a market up 4 in the last five days. A little technical correction. I know pete, of course, will weigh in on this, but were back to where oil is. Yeah. Its all about where oil is. The core slalation is not broken. Ties into the dollar and yields. Oil down 3 now down 4. 5 . Oil slammed. Market follows along on the down side of that. Look at gold, look at silver. Talked about these trades a long period of time. Slv, absolutely exploded in the last week or so. Had been moving, but lagging a little relative to the attention we give gold every day. Gdx, and look at the slv, seeing paper in silver, there is interesting trades going on i think now in the metals. Volumes is really important, though. Last week everybody going into a holiday week, youd expect it to slow down a little. I know its end of quarter, first half, the rest of it. The fact people were still in offices, we averaged 19 million contracts a day in the options world when we normally average 16. 8 coming into last week, interesting to me to see that volume, even on the up days. On um dthat is pretty interesti a bright spot. Some argue looking at toesdays action, josh, last weeks rally shouldnt have happened in the force 2 dit did. Treasury lows dating back decades, that rally was a little false. Tell you whats going on. In a higher volatility regime this year. The oneyear average volatility has crossed above the fiveyear average volatility for the First Time Since 2007, and in that environment, several behavioral things happen. Chasing low beta stocks. Campbell soup making record highs, not because they discovered a new type of soup that cures cancer, but because it pay as yield and people dont stop eating soup if they lose their job, or maybe they downgrade to a slightly less good type of soup. Bigger picture, though, you also get people chasing bond yields. Bond yields are not a referendum on Economic Growth expectations. So much as they are, hey, i have to do something and i dont want the volatility of the, what the markets offering. Important also, we pay more attention to things like italian banks, which are in a freefall. Pay more attention to overseas news. It amplifies our feelings about the market, and tends to lead to more volatility. Thats where i think we are. Talk about those banks later in the show. First, the other big story of the day. The fbi not recommending charges in the Hillary Clinton email matter. Eamon javers standing by with details. Hi, melissa. Dramatic moment here in washington, d. C. Earlier this morning as the fbi director stepped up to a podium at fbi headquarters, nobody in washington had any idea what he was about to say. So many of these statements are sort of preleaked, prebudded arguments back and forth. In this case, the entire media and political establishment watching fbi director james comey, highlighted that at beginning of comments saying he had not previewed them with any political figures here in washington, d. C. They have no idea what im about to say and then laid out details what the fbi found in its investigation of Hillary Clintons email server. Heres what he laid out. Take a live. From a group of 30,000 emails returned to the state department in 2014, 110 emails in 52 email chains have been determined by the owning agency to contain classified information at the time they were sent or received. 8 of those chains contained information that was top secret at the time they were sent. 36 of those chains contained secret information at the time, and 8 contained confidential information at the time. Thats the lowest level of classification. Now, those details are embarrassing to Hillary Clinton and the clinton campaign, but fbi director james comey going on to say no reasonable prosecutor would bring charges in his view based on the set of evidence that the fbi reviewed over the past couple of months here. Now, this all enters the political realm, of course, going into an election season, melissa. One of the things that i think youre going to see people focusing on who are critics of Hillary Clinton is her sentence she said as recently as this weekend, i never received nor sent material marked classified. One of the questions here will be, fbi director comey saying some of these indeed were marked classified. What did Hillary Clinton say that turned out to be true and not true about this is i think where this conversation is going next, milissa. Thank you. For more on the story, bring in former assistant fbi director and both joining us live on the phone. Gentlemen, thanks for joining us. Chis, start with you. How unusual for the director of the fbi as any reasonable prosecutor would not bring charges and then that the doj actually acts . Highly, highly unusual. Ive been involved as head of the Criminal Division of the fbi ininvestigations of congressman, senators, Public Officials of every description. First of all, i cannot ever remember an fbi director, any of the fbi official, coming out and talking about a referral and the substance of a recommendation. So that in itself is highly, highly unusual. And then its hard to reconcile with some previous cases, seem to be spelling out the elements of violations that the classified information statute, 793f. So words like, extreme carelessness, should have known and that sort of thing. I really felt like he was bimtdibimtd i building up to a statement he was going to recommend prosecution. At this point, im not sure there seven should have been a recommendation base and how close the call was n. Your view, should have been a recommendation based on classified information contained in those emails . He seemed to be building a case for that and laid out what i thought were the elements of the statute, i was very surprised at the end when he said there was a recommendation of no prosecution and given the factbased nature of this, and the statement that no reasonable prosecutor would prosecute this case or entertain prosecution, i dont think thats the standard. Okay. I mean, the facts are the facts, and in this case, i think its theres just a lot of things very unusual about this, and i think it might have been better just to refer it and let them make the decision, because thats a close call. And i want to go to you, does this go away for Hillary Clinton or at eamon mentioned, the fact she mentioned no classified information was actually sent and director comey actually said today 110 emails contained classified information is that in and of itself a problem . Its not going to go away, because were in an election season. And i do agree that there are lots of challenges here that, you know, on their face probably shouldnt go away. Whats very clear is that Hillary Clinton in trying to make it go away actually lied repeatedly about whether or not these materials were classified at the time. And its, you know, a coverup. Frequently that gets people in trouble. Its not the original misdeed, badly handled by Hillary Clinton all the way through. If from day one, yeah, it was a close call. Probably shouldnt have done it. There are reasons we did, but on balance, this was done and were going to cooperate as much as we possibly can with the investigators. I think this would have gone away, and it hasnt, and it plays to the mistrust around Hillary Clinton and around clinton inc. I think another interesting thing is, of course, the attorney general said in advance that she was going to take whatever recommendation came from the fbi. So clearly, she was expecting a recommendation one way or the other, and she got one. I think it will be an interesting question, particularly again, we know about bill clintons meeting with the a. G. , all sorts of issues about whether or not this is political sized, who knew, when did they know . How much influence were the clintons and were president obama actually having on the attorney general reacting to all this. Immense amounts of he shes she said around this. I dont think it goes away and sort of an indictment which were clearly not getting, i dont see this as a, i dont see this as a game changer forehl f for hillarys campaign. What about risk . Additional market risk . It could have if an indictment. No question that donald trump has significant demographic challenges state by state to overcome if hes going to become the president , next president of the u. S. That would be considered a significant market risk, and externality is, god forbid, a big terrorist act, Hillary Clinton with a health issue or indictment in this case. Those are precisely the sort of thing that would have led to a big Political Risk in the markets. Weve avoided this one, in my view. All right. Gentlemen, thanks for joining us. We should note former new york mayor Rudy Giuliani will call in to the Halftime Report shortly with his reaction to the fbi director the comments. Stay tuned for that. How big is Political Risk in the markets now . Talk about everything else, risks all around the world. Australian election, election in spain. How about here . I am not a political analyst, full disclosure, i have attended a donald trump event, donated money to a pact for donald trump. Thats full disclosure. What i will say, as it relates to the business environment, business fixed investment in 2015, 2. 9 growth. Business fixed investment, 2017, 3 projected. So far year to date tracking at a negative 1. 7. Impacting the economy, the Capital Markets and the conversation about Corporate Tax reform, which was supposed to be the tailwind of the beginning of the year. Thats evaporated. Okay. Ahead on the Halftime Report, is europe on the verge of a banking crisis and how worried should you be about american banks taking a hit now . Separating fact from fiction with a top analyst. And groundhog day for tesla. The company cant make cars fast nuft. They missed their forecast. Well tell you how to trade it, next. Next. At the beginning of the 21st century, the earth needed to find a new way to keep up with the data from over 30 billion connected devices. Just 30 billion . A bold group of researchers and computer scientists in silicon valley, had a breakthrough they called. The machine. It changed computing forever. And its been part of every new technology for the last 250 years. Everything . Everything this year, Hewlett Packard enterprise will preview the machine and accelerate the future. See star trek beyond. Lepes foods is a locally owned here in santa rosa. As a small business, were always looking to save money, and pg e was able to help us. I help the Small Businesses save money and energy. It feels great. We looked at their lighting, their refrigeration system, and with just those two small measures, they were able to save a good amount of money. I was shocked. I couldnt believe that i could save 1,500 a month. With the savings that we get from pg e, were able to pass it on to our customers. Its pretty awesome. Learn how your business can save at pge. Com businessenergycheckup. Together, were building a better california. Is. Welcome back to the Halftime Report. We call your attention to whats happening with netflix shares. The stock is moving on a recode story. Our News Partners at recode have a story out from kara swisher saying comcast and netflix agreed to let netflix on to one of comcasts online set box top, gatewaying content on the Comcast Cable system. This is, again, this news is shooting shares higher in midday trading, you can see here. Of course, as weve reported and many others in the past, comcast and netflix perhaps have had a more contentious relationship with regard to agreements in the past. Data and otherwise. But melissa, whats important about this overall story here, of course, that comcast, of course, the Parent Company of cnbc and Nbc Universal and netflix perhaps getting together in this particular deal and we also want to point out here, of course, that recode is a partner of ours as well. Back to you. Dom, thanks. And comes on a day needham is downgrading stock. And how much of a positive is it for netflix . I think really positive. I think that most people thought comcast with the x1 technology was going to be a big threat. So now, looks like maybe partnering up, maybe it could expand into something more . Maybe takes off the pressure of net fliflix on the cost front. I think its a winwin. Comcast is a huge long here. This company is doing everything right in terms of getting the next generation programming and content correctly. So i like that story a lot. All right. Rudy giuliani, a former republican mayor of new york city and former prosecutor who joins us on the newsline right now to discuss the developments in the Hillary Clinton email server situation. Mr. Mayor, thank you so much for joining us. Oh, im very, very happy, believe me. The director of the fbi was very clear saying any reasonable prosecutor would not pursue charges. You are a reasonable prosecutor. Would you pursue charges . Well, the director of the fbi worked for me as an assistant and i amming shoulded at his conclusion, for two reasons. First of all, he actually, clearly, concluded that she violate violated United States codes second 793 saying she was extremely negligent. That statute doesnt require intent. It requires just gross negligence, and gross negligence is defined by judges in their charge as extremely negligent. I dont know how he can possibly avoid section 793, subsection f, which says in pertinent part, whoever being entrusted with or having lawful possession or control of any document relating to the National Defense through gross negligence permits the same to be removed from its proper place of custody shall be fined under this title or imprisoned for not more than ten years or both. She clearly did that. There is no doubt. Now, this whole idea that you cant prove intent. Jim knows that we usually prove intent through circle evidence. Circumstantial evidence. The circumstance of extreme negligence over and over and over again is the best proof of intent, also her destruction of 34,000 emails also proves intent. People have been charged under these it statutes for far less than this. And its going to be almost impossible in the future for the fbi to justify a charge under any of these statutes. So i dont know what jim is doing. This is a to me, a extremely hard conclusion to, to justify. Specifically section 793, subsection f, which makes gross negligence a crime. Right. And jim comey did say she was extremely negligent. Well, okay well, thats gross negligence. Sure. It is up to the doj at the end of the day to decide whether or not to pursue charges. Loretta lynch had already said she would be inclined to take the recommendation of the fbi, if she does that, if the doj does that, and does not pursue charges, in your view, is that in and of itself negligence . Would they be asleep at the wheel . Not to indict her at least under sectionen 793, subparagraph f which makes gross negligence a crime, having found that she was extremely negligent is an abdication of their duty to treat everyone fairly under the law. Just because shes Hillary Clinton, she should not be treated differently than David Petraeus our mr. Jones who works for the kroocia. There is nobody in america that could possibly believe that anybody else after what jim comey found would not be prosecuted for imperilling our national security. In your view, is there political favoritism going on . In my view, this is, this decision by jim who is a good friend of mine, is a grossly negligent decision. And he is and he is giving the Justice Department a way out. And i hope the Justice Department will act in the highest tradition of the department that i spent 15 years in and was the third ranking official of, and had to recommend indictments of republicans when i was a republican. Okay. I wish they would have that courage. If people would just read section 793 of the criminal code. Right. They will find that gross negligence is a crime punishable by ten years in jail. Mr. Mayor yes . You have publicly endorsed mr. Trump for president. Are your views being influenced by your desire to see mr. Trump elected president . I i i announced ten months ago that Hillary Clinton had violated the law. Long before i endorsed mr. Trump. I can separate my political views from my analysis as a lawyer, and you dont even have to listen to Rudy Giuliani. Just read the statute, and i think thats why jim walked out without taking a question, because the first question was going to be, how can you possibly not indict her unders 793f when you found she was extremely negligent . When gross negligence is a crime punishable by ten years in pr pris prison . I would have loved to hear his explanation. A difference between careless and negligence and youre correct. At one time he used the word extremely negligent. Extreme negligence is gross negligence. Also, the whole idea that there was no proof of intent is absurd. The way we generally prove intent as prosecutors is through circumstantial evidence. People dont say, i intend to commit a crime. They dont announce, i intend to rob the bank. They go ahead and do it. And infer from their actions that they intended to do it. Sure. Now, mr. Mayor her repeated her repeated extremely negligent, carelessness, and her destruction. Remember, 34,000 documents would be proof of intent. If the doj does not act, mr. Mayor, is there any recourse . What can be done at that point . I mean, you say that that the next attorney general could indict her. Oh. So the statute of limitations will not have run. And the next attorney general could do what hopefully this attorney general will have the courage to do. The law should be administered without any regard to who you are. Right f. It was administered to Richard Nixon and David Petraeus it should be administered to Hillary Clinton in the same way. Mr. Mayor, thank you so much for phoning in. Appreciate your analysis. Rudy giuliani, former mayor of new york city. Thank you. Coming up, todays market moves and a close are look at the banks and biotech, a bear market, betting on a rebound. Well debate that. Here at the Td Ameritrade trader group, they work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. Italian banks under pressure in raising concerns it could be the next banking crisis. Michelle carusocabrera has that story. Look no further than a sector that has not recovered in the postbrexit rally. Hammered. Look at the Italia Bank Index is down 56 year to date and a large chunk of that, look to the righthand side of the screen comes, since the brexit vote. Whats going on . A lot of these banks need capital, and the most recent example how troubled banks are, monte paschi, down 99 in the last ten years. Oldest banks in the world. Yesterday told the world the ecb told them to do more to get rid of the large amount of nonperforming loans they have, npls theyre called. The general issue, why u. S. Investors would be interested. The italian Banking System needs more capital. The Prime Minister has said so. However, there are new rules as of january 1 that could punish bond holders, junior bond holders to be specific. Whats unique about italy. Many Retail Investors hold those junior bonds. They could be hit. The number isnt that big. Bank of italy says 29 billion worth of bailable bonds, use that as an adjective. In this day and age, isnt all that much, however, 29 billion punishment on individual voters in italy in the middle of an antiestablishment climate with the fivestar movement and referendum that matteo renzi has planned for the fall about constitutional reforms . An issue that threatens once again whole eu and the whole eurozone. Can they hold it together and get through, how are they going to deal with this italian banking situation . All right. Michelle, thank you. Michelle carusocabrera. U. S. Banks justly or unjustly not immune. On track for the worst day. A bank analyst at csla. Mike, great to have you with u. S. I dont know if many u. S. Investors will follow the inkta kaess of banco paschi. We look at Deutsche Bank trading at alltime lows. You wonder, any transmission mechanism of contagion from europe to the u. S. Banks . U. S. Banks certainly are trading as if there is. Well, i have two numbers on the u. S. Banks. One negative and one positive. The negative number is the tenyear treasury yield at 1. 36 . Lower for longer rates. Pressure bank earnings. We think u. S. Bank estimates are at risk by 10 to 15 . Thats the bad news. The good news is, u. S. Banks have 400 billion of extra capital after assuming a Lehman Brothers financial crisis, came out from the stress test over the past couple weeks. U. S. Banks are not italian banks, dont have the to raise capital and increases capital return to investors by 1 5 year afterer year. Melissa, thank you for having me as a guest. I was told as a guest never come emptyhanded and i brought you it gift. Oh, good. I love gifts. To reflect what i feel is unique resiliency of u. S. Banks. Uhhuh. Talking u. S. Banks. Right. And the movie the xmen has a character. The wolverine, whos indestructible, and so im not saying u. S. Bank Balance Sheets are indestructible. But i am saying theyre more resilient than theyve been in decades. More wolverine than more wolverine i dont know how that would be, but just because it doesnt mean theyre not going to trade as if there is contagion. What creates opportunities. This is the opposite of 2006. Everybody couldnt buy enough of bank stocks in 2006. Great earnings, lousy Balance Sheets. Now its the opposite. Earnings head winds, very strong Balance Sheets. Reserve that potential for some future time. Wait. Whoa. What future time . I mean, talking about a year from now . What is the catalyst to get the stocks from stop going down . Though go down every day. I get it. Nobody cared. Everybody sold into the news. What does it take to make stocks go higher . Chasing yield. You like yield plays. Banks like jpmorgan and wells fargo with dividend yields over 3 . The dividends are growing. The case of jpmorgan, after lehman brothertype scenarios, billions of capital left over. Take your money out of the savings and Checking Account and put it in bank stocks and get that 3 plus yield. The big story capturing everyones attention today is the fact that now three separate british institutions have halted redemptions from property funds. And obviously u. S. Banks are not directly involved, but i saw citigroup is a sponsor of one of them. Arent we seeing some shades of things that went on in 06, a year before the crisis came, where were starting to say, sorry, you cant get your money out. The assets are too ill liquid or too many sellers and were not able to move the stuff in time . Is this something u. S. Bank investors should be at least thinking about, or is it totally apples and oranges . We absolutely think about this in earnings expectations, Capital Markets could be at risk. One source of lower erping eer revisions. Its not a concern at the largest banks, dividend cuts or anything like that. Banks have been through the fire drills the entire decade. If youre having a problem in a european country, italy or somewhere else, banks better get it right. If they have to take a huge mark and raise capital when the bank tells us that, the ceo should submit his Resignation Letter at the same time. Mike, thanks for coming on. Thanks for wolverine. There you, keep this. Add to my superhero collection. Everybody knows i have a huge one. Still ahead, if youre having trouble making money in the markets this year, youre not alone. Half way through the year, most hedge funds reporting mediocre numbers as well. Plus from zero to hero, trades for the second half. That trade is ahead. Welcome back to the Halftime Report. To sue herera with the latest headlines. Hi. Whats happening at this hour french lawmakers saying a parliamentary investigation found multiple intelligence failures before islamic extremists killed 147 people in paris last november. They are urging the creation of a u. S. Style Counterterrorism Agency and recommending better european intelligence cooperation. A homeless man, homeless italian man has been detained on suspicion of murdering 19yearold College Student beau solomon. His body found in the river monday, three days after he went missing. An ll flight landed safely in israel after being escorted from military threats in youre foll you europe following a bomb threat. They were enaware of the drama until they landed. 5600 pound of salad products recalled by a Florida Company because they contain wheat, a known allergen not on the label. Sold under traileder joes max cali inspired salad with chili chicken. Other than that, sounds pretty good. Thats our update. Back to you. Thinking the same thing. Wiand cnbcs kay kelly has look at latest numbers on the s p. No great. A few bright spots, but ill walk you through it. It was largely another disappointing month, id say, for hedge funds. Third point, eventdriven fund a large equities trading, one of the first to record. Offshore fund up fractionally in june and up 2. 1 for the year so far. A year its founder said could be a washout for the industry. Greenlight capital struggling to stay positive with minor setbacks in june leaving it up just 80 basis point to date through the end of the month and bill ackmans fund in sorry shape, performenwise. No thanks to valiant pharmaceuticals, down 21. 1 . Look at funds that appeared to be pretty well coming out of the brexit opportunity. A nice june performance, third point, greenlight, and even so, the fund is up a mere 50 basis points for the year suggesting that it had losses to make up before that referendum and some of the winning bets anside it. Saba capital benefitted from long volatility on brexit, but Market Conditions after it, such it lost ground anyway. Still, at north of 10 returns for the year now, saab doing well by 2016 standards, which arent terribly high for saba. And fallout purging square doing layoffs . Characterized lower level employees. Eight people, apparently, i read. Largely i. T. , other back office functions. They have 80 people or so on staff. A 10 layoff. Not unnotable. At the same time i can understand and argument it isnt necessarily related to performance, although this is an abysmal year and last year dreadful as well. Luckily for them, another six months to turn things around and ackman is taking a much more activist stance with valiant. Perhaps new change, new leadership and so on. With so pew positions in their book, herballife, short position, anything could happen. Kate, thank you. Coming up, crude is under pressure. Should you be worried about another big selloff in energy . Head to the pits for that. Plus, joe is making moves in the Halftime Report portfolio challenge. Thats next. Heading to the break, look at the dow 30 heat map. J j leading the back. Halftime report is back after this. Short tesla and announcer real debates. People think globalization hurts businesses. It is not. It is technology thats hurt businesses. Competition is a good thing. I dont want to go back to a single marketplace. Announcer the most profitable hour of the trading day. I love this show. All i do is get to tweet about this show. Im on the show. This is the greatest moment of my life announcer the Halftime Report, weekdays at noon eastern. Rtunitys knocking, where selfproclaimed financial superstars pitch you investment opportunities. Ive got a fantastic deal 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 coming up at the top of the hour, Goldman Sachs and nike among the worst of the year. What about the second half . Set for rebound . Netflix shares higher today. Because theres two big calls on the stocks and one of those analysts will join us. And, also, big warning about driverless cars. Are they really ready for the road . You need to hear this. Now back to you, melissa. See you at 2 00. See you then, michelle. Thanks. Oil prices falling after the rally. And at the nymex. Good afternoon. Right. Oil prices seemingly making their way back to 50. Again, starting out the week in the negative when it comes to crude. Scott, lets talk about the drop we saw today concerns about global growth. Is that all thats out there now . Well, the concerns come from everywhere around the globe as were down 5 . Nigeria coming back online. China throwing Strategic Petroleum reserve using low prices for that. Thats full, and that excess demand is now going to become excess supply. Here in the United States, good news if youre a gasoline buyer on the east coast. Supplies of gasoline out there are setting records. So theres no good news, no matter where you look if youre a crude oil bull. Jim, enough to dent the rally weve seen as of late for the next few months or so . I dont think the rallys over yet. I think its still within consolidation range. I think 46ish is a spot to buy it, or if it can then finally settle above 50. But i will challenge scott on one thing. Today the difference of today and friday, because that same news he talked about was out friday. Today the pound is down. The markets kind of taken that as a risk off signal both in equities and oil. Realistical realistically, just the boe adding liquidity. Talking to peter bookvir about what hes seeing in the bond markets and also talking to barclays Michael Cohen about a troubling chart when the it comes to oil. More on that online. Thank you, jackie deangelis. Do you buy oil stocks . Which ones, if so. Joe . Right now play from a defensive standpoint. Its important to point out on the Futures Exchange today the down side youre not just seeing in oil futures, also seeing it in natural gas, which ive liked recently. Down 7 . Also reformulated gasoline down 6 and heating oil. A broad base selling. Concerns about supply coming back online. That concerns you if you have a high beta energy strategy. Be defensive, i think. Look at technicals. Xle, holding on to moving averages sitting on 50. Protection down towards the 200 around 63. Something that everybodys watching because its held up so well so far. Jb . Im in xle, all year, most of last year. Really, really big leadership for the Energy Sector as a hole. The biggest stoas a whole. Exxon up 20 year to date. What you have to be paying attention to. Much, much tougher going down in ed credit quality or in size. You like dividend yielders. I do. Do you like the dividend yeed yielders in the oil patch . I do. Bp at 6 asset sales story. I kind of like that. Chevron, 4 yield and doing a really good job on containing cost structure. I think they are just about at the inflection of maybe seeing free cash flow, getting better, over the coming year. Able to fund that dividend. Oxy, 4 as well. Permian where you want to be here in the states. I would say dont just go all safety at this point. High quality emp companies, like eog. High quality slummer shaye. Get to john harway. First official reaction from Hillary Clintons president ial campaign to the statement from fbi director comey today. A spokesman for secretary clinton says we are pleases the career professionals decided no further action is appropriate. Glided past james comey statement that the Hillary Clinton state department had been extremely careless in handling top secret information by saying she hassing knowledg d ed has acknowledged its a mistake, couldnt do it again. Not surprisingly, in their words, this matter resolved. Certainly as a legal matter, it could have been resolved. As a political matter, its going to go on through the election. Thank you for the update. Coming up, getting ready to bounce a sector still in the bear market and health care overjewel looking sickly. Find out if our experts are betting on a rebound. Thats next. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. But we mean so much more. We mean how can we help . We mean what can we do . We mean its our turn. To do our part. To serve you, for all youve done to serve us. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Welcome back to Halftime Report. Biotech coming off best week in nearly a year but still in bear market territory. Meg tirrell is here with if the group is still struggling with and whether to bet on a rebound. Even though we had a good week of the first half of last week, sentiment is bad right now. Some of the things ive been weighing on the sector is the president ial election and drug pricing. Look at the big four biotechs, amgen, biogen, celgene and gilead. The people expect that pressure to continue and all this focus on drug pricing, we also have seen some unsuccessful Clinical Trials recently. Beginning of june we saw d disappointments that hurt sentiment across the sector all around. Then of course concerns about slowing growth in some of the biggest names like gilead and biogen with franchises in multiple sclerosis and hepatitis c. The election is basically going to continue as it has been. People are hoping maybe there will be some focus less on drug pricing, essentially thats when people are setting aside we are going to have earnings and people are waiting to see what well hear from the biggest names. July 21st we hear from biogen and celgene. These companies have a lot of cash and people wonder do they have to buy in order to get growth. And of course data. That is one of the biggest catalysts across the sector. People waiting for eli li lilly in the fall. Alexion their big drug which disappointed, later this week theyll present the full data. And a smaller name is sage, data in post partum depression this month some say is under the radar and interesting to watch. Youre in alexion. I am and i like it. I think well get better data on july 7th. They may not get approval, but i think youll get better data points. They have a great pipeline, to that extent i have a question. The ipap was set up and everybodys kind of freaked out about the fact even beyond the election youre going to have more pressure and more pressure on this group and its just not going to go away. Do you think thats the case . And if so do you think this group can actually gain a bid even if thats the scenario . This has to do with pricing. Thats right. This is the independent payment Advisory Board, part of the Affordable Care act. We kind of got it passed this year Advisory Board is triggered if exceeds this year. Youre right, people expect it will exceed that target next year. So were going to see this continue. People are trying to figure out what a Trump Presidency would mean for biotech, but they do expect if Hillary Clinton is elected shell continue to talk about drug pricing sgr it seems the candidates have put on the back burner to some extent. We heard last week gileads fda approval that has a huge sticker price. That didnt raise any concerns. Whats amazing is 74,000 i think for this treatment new hepatitis c drug compares with 84,000 and 94,000 for previous rej e regimens. You could say some of the pressure is starting to work. Pete, where are you in the space . These are all great trades quite frankly. Look at these names, big four names you look at every one of them, look at valuation, a lot of names that have dividend yields along the way, amgen, gilead and some of these names. They are tradeable but i dont know theyre investable. The reason i say that is theyre trading as if they dont have any pipeline at all. Thats how theyre trading, which is unreasonable but with the Political Landscape thats how it has to be treated because to have a commitment you can see them selling off as easily as spiking. Meg, thank you, meg tirrell. Four trades in four stocks making new trades, Harley Davidson under pressure after being downgraded to neutral. The firm saying theres no support for the takeout speculation. And there was two firms, ubs and r. W. Bay ard coming out talking about the idea this takeout is not going to happen. Theres a huge short interest, the valuation is fine. Most recent earnings were not that bad. But it makes some sense to me they wouldnt be willing at least to sell themselves right now for the price levels in which people were kicking around or at all. This is why the stock is back down. Delta cutting Second Quarter guidance. Airlines incredibly difficult to invest in trade around so far in 2016. If we talk about whats the one airline that has the most exposure in terms of wages rising for the pilots and then additionally having the most exposure in terms of not being fully hedged, southwest. But yet southwest is the leader yeartodate in the airline space. Thats why its confusing as it relates to delta i think right now its more of a wait and see type of approach. Nordstrom upgraded from neutral to sell on a more reasonable valuation relative to other Department Stores. Its cheaper is that a reason to invest, steph . Its cheaper trades about 5. 4 times ebitda with a nice yield, very nice yield. Which i think the Balance Sheet can sustain that yield. Clearly the Department Stores are going through a transition in a very big way. I kind of think Department Stores have really gotten hit hard and there is a trade here. Right. But i also think longer term these guys are very well positioned with rack, off price, full price but also online. They have a very diversified business model. You have to have patience for the longterm but easy comparison set up stock well in the shortterm. Tesla under pressure missing delivery targets for the Second Quarter. Josh. Yeah, stock ran right up into its declining 50 and 200day moving average. Got rejected. Now this morning you have very low reports debating whether or not materially they should have disclosed there was an accident involving autopilot prior to a secondary offer. I dont like the way this thing looks. I would avoid it. Coming up, final thoughts for the second half of the trading session but a look alt earnings on walgreens which stephanie is long. Stay tuned. Stay tuned. This man creates software, used by this bank, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this Vice President , this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. Market is closing in about three hours so lets get to the second half trade. Joe. Reits, Investment Grade corporate bonds. Steph, walgreens out tomorrow. Yeah, i like walgreens. I think the Alliance Gives them a billion in synergies. Rite aid deal could give them 40 cents but i dont think theyre doing a very good job at the front end of the story doing more private label. I like them. If its weak on brexit concerns, im a buyer. Pete. Weve talked about gold and silver endlessly. Just last week we had more unusual activity in the gdx where theyre selling puts. Ive been trimming. I just trimmed out some kgc as well. I think its time to reevaluate. That does it for us on the Halftime Report. Ill see you at 2 00. Power lunch begins right now. Melissa, take the next hour off. Thats all on us. Well see you in the next hour. Stocks are down for the first time in five sessions. The dow dropping triple digits. The pound, that would be the british pound, briefly dipping below 1. 30. Lowest level since september of 1985. Yields on the 10year u. S. Treasury new record lows there. But the big story today is not, folks, on wall street. Welcome to power lunch everybody. Along with Michelle Carusocabrera im tyler mathisen. Brian is off. Michelle will join us in an hours time. We begin with breaking news in washington. Hillary clinton off the hook it seems for