Yields are. This same multibillion dollar hedge funder saying its a tactical but dangerous market. Bonds should be falling a lot given the news flow and stocks could rip between now and the election if people get any kind of confidence. Pete, turn to you with the question at the top. Is it time to buy in or time to buy in. We talked about it onair monday following the brexit, scott. You looked at volatility, even though market was down 300, 400 points, these are the opportunities youre waiting for. Talking now about the risks. Yes, much higher, sitting at 52week high, alltime highs, for the s p 500. I think you have to keep in mind now the fact with these bond yields, because of where they are, scott, even though jumped up nice today, were still talking about a 1. 4, Something Like that . Where do people want to be . They have to find and have to look for yield. They have to look for valuation. I think some of the names weve seen some of the better gain weres out of recently have been some of the names in the tech space where youre talking about valuations very, very nice and low, and youre getting a nice yield, and if youve got growth, take a look what intel has done. Look what cisco has done and other tech stocks that have been moving to the upside. Thats been a very good strength, because of the yield that youre getting along with growth and valuation. Joe, confounding problem for some of these big time Money Managers, why arent bonds falling . On friday you get this it blowout jobs number. Bonds dont sell off by any great magnitude. Pete said tenyear today at 140. Not a big selloff. Those Money Managers are still trying to answer your question from 2011. So its a question that really becomes almost unanswerable to a certainly point. What it doess do, create opportunities in a taxable fixed income space and more importantly as it relates to equities, creating a relative, looking rich on valuation basis, a sector to stay committed to. Answering your question from the top of the show, the strategy, stick with winners as we approach earnings season. This is a year thats lining up somewhat similar to 2007, where you make a high in july, pull back in lets call it august and september. Take a number, another run in october. I could see that strategy working, but what i dont want to do is chase the laggards in a year like this one. I dont think thats the right strategy. Doc, could be tactical, nervous. Does there come a point you have no choice but to buy u. S. Stocks . Simply nowhere else to be . Bonds are too expectative on the other side. And this is where you have to be. The bonds are telling you that things arent all that rosy. In my opinion. The yield down here, now, we were at 138 friday, ahead of the jobs report. Popped up to 144 i believe on the highs. Pulled all the way back down to 138 and now 142. The tenyear were talking about. So that yield is still so low, judge, its telling me that there are problems. And there are, you know, issues that still have to be addressed as far as full employment. Are we really there . Or is the jobs report fshs we averaged the last two at 150 instead of 180 . Were slipping as far as the Jobs Creation there. But the Positive Side, flipping the coin over, the Positive Side is that the brexit fears were wildly overblown. To that point, stop you right there, because Goldman Sachs today, is rsarat, stocks and bo and here for some time, volatility, brexit related. Doc says an afterthought, nonstory. Black rock says, low returns, high volatility here to stay for some time, because of those kinds of unknowns. I dont think weve said anything different all year long on the show. We know long returns are coming. The question, where do you put the money . Back to bonds, because of brexit. 20 of bonds, yielding negative. Where is the money going . To the u. S. , to get treasuries. The currencies table is here, too. The offset, is the market telling you things are slowing down, low yields, or because people are buying bonds to hide out. Yes, volatility. Do what pete said, use chances like last monday to get into the market, buy highquality stocks. Wait and get back another chance. What will win out . Stocks or bonds . The premise of the conversation i had with this unnamed person is that when confidence returns and it could return in a hurry, you could get that move out of bonds. You will. Because theyre two expensive and can get a big, big move into stocks. Some cases maybe 5 , 10 end of the year. Coming straight out of bonds into sectors that are youn undervalued looking at the whole market. A combination of not just Consumer Confidence coming back in growth, in names that arent working. You also get sectors kind of getting money out. Do i want to bail then on utilities, which are up 21 year to date . Bail on the telecoms, up nearly 20 . Do i want to go more offense, play more cyclical plays and get away from the defensive names . If bonds go down . I would. Take money off the table. Look at the staples sector, yes, defensive and things are good, at a peek, you see what happens when a consumer staples, any sector starts consolidating, that, to me, is a peak. Look at hershey, monday li da l doing something because of alltime hypes. That consolidation takes time and at consumer staples, more mergers, especially so much cheap money out there. We tend to forget a lot of what we talk about in the past. Again, goes back to Central Banks and how many times have we said, dont fight global Central Banks. Well, global Central Banks right now continue to be highly accommodative, now we have one coming back once again, the bank of japan, which going to depreciate the yen. Thats clear. You see significant decline over 2 in the yen. As long as global Central Banks continue to act the way theyve acted, well, youve got the green light for a lot of these assets to move higher. Except bonds yield are where they are Central Bank Policy changes. Right. Talk about General Electric soaring to a high. Josh brown made a bullish call in march calling it a mustown name. Josh joins us now on the phone. Welcome back. Hey, scott. How ya doing . Good. Ge hitting highest levels since 08 today. Yeah. Looking at this since march, expecting a breakout. Well, so it was challenging a level that you had to go back to late 07, early 08, and struggled there several times. So finally it got through. Price has memory. There really are no sellers here from those levels. If you think about it from that standpoint, everyone in the name has a profit. That changes the psychology and i think that momentum carries through and gives us room to go. To where . Room where . Well, i just look, you know i dont do price targets, but if you just so technicals tell you when to buy. Fundamentals tell what you to buy. The fundamental story here, i think, is underappreciated. This is a company that was charged with the bank brush for way too long and got out of a lot of their Financial Issues by selling. They got out of a lot of lines of business that were financial in nature, and investing in the community telling them were not interested in them anymore. Now what are they focused on . The very best things to be focused on. Aerospace, the internet of things and health care and robotics. Four of the most important markets over the next five to ten years. If you ta uk to anyone that knows whats going on. You have a company here that has gotten rid of the bad stuff, has doubled down on the good stuff, in addition to which they now are no longer systemically important financial institutional and got the Balance Sheet flexibility to buy back more stock, raise their dividends and even do acquisitions. There arent any flies on this story. You could say its a little bit expensive, but what isnt . And in the meantime, theyre really focused on the things that i think you want to be focused on if youre going to grow. Sarat, an owner, too . We have been for a while, own it, bought it, like it. Josh is right. Storys turning around. The other fact, energy piece people undervalued i think will do well for them. Away from what everybody else put on top of that, a Financial Services overhang. The other part josh agrees with, not many people understand the story. Theyve always thought of ge as an old con gommer it. Now a Newer Company with a better vision and better growth. Can we make a bigger statement about industrials in general or a gespecific breakout . Ge specific. A story people are trying to understand. They had an analyst day last week about digital. People are finally getting to understand, and the other part, by the way, the Balance Sheet is really strong. They have a lot of cash on the sideline, and their dividend is higher than the markets. To your points, somewhat, josh, ml and microsoft sitting together noor exclusive interview today on cnbc. Sort of underscores the new, if you will, areas that ge is getting into. Yeah. Look, theyre moving the headquarters from fairfield, connecticut, into boston. Why are they doing that . Besides hate rooting for the red sox, doing that because thats where the talent is in health care in biotech, ordination and software. They want to be viewed differently than the ge of old, and i think thats a really symbolic step, but it has real world ramifications beyond just the image. So sitting on the stage with nadella and seeing the company run those commercials about hiring young engineers, this is a different ge than the one from the 90s that was owning entertainment assets and doing a lot of banking stuff. This is a totally Different Company and frankly, a better one. Stocks up 24 year to date. Certainly new energy, so to speak, seems to be in this name. Josh, thanks for calling in. Si see you on the desk. All right. Overall market, nasdaq poised to go over 5,000, First Time Since the end of 2015, december 31st of 2015. Breaking into alltime highs, our coverage is just beginning. Helicopter ben landing in japan. Meeting with top money man in the land of the rising sun. Why is he there . Is he advising on a stimulus plan . Is it a coincidence that the nikkei soared 4 today . And, whats next . Plus will earnings season lead us to the next leg of this bull market . Were identifying possible upside surprises. And a story youll really get a kick out of. Big money deal for ufc. The Halftime Report really pack as punch today. Were ck in two minutes. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. You can fly across welcome town in minutes16, or across the globe in under an hour. Whole communities are living on mars and solar satellites provide earth with unlimited clean power. In less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. And if you thought that was amazing, you just wait. Welcome back. The s p 500 is above its alltime closing high. 2139 and 84. Just off the highs of the day. Led today by technology and the industrials. We mentioned what General Electric was doing. Highest level since 2008, a story we continue to watch. Plus, is japan on the verge of launching another big financial package . Stocks ripping overnight on hoping additional measures will be announced. Up 4 on the nikkei. Guess who happens to be in town in japan . Bernanke visiting the bank of japan today. We welcome in melissa otto of tiaa and cnbcs steve liesman. Steve, to you first. Can we speculate on mr. Bernanke . There to say everything hes been saying the last 10 or 15 years has been wrong and bank of japan needs to get out of negative Interest Rates or stop stimulus . Or there saying the bank of japan should double down and do more. My guess, the latter. I dont know what they think around the board mip want to remind you what ben said back in 2002. A quote, scott, you may remember, and may be able to recite by heart. A money finance tax cut is essentially kwiv tloept milton freemans famous helicopter drop of money. Notice he didnt say this, quoted milton saying it. Didnt stop everybody in the press calling him helicopter ben. Speculation jpmorgan among them saying maybe the next step is a helicopter drop for bank of japan. That means essentially perhaps a tax cut on additional spending by the fiscal side financed by the bank. Melissa otto on the phone, great to talk to you, melissa. Especially on this day with this kind of speculation. What do you think bernanke is doing over there . Is he and are they doubling down . Hi. Thanks for having me on. Great to talk with you. You know, i think our view is that what is ultimately driving the market is speculation on both the fiscal and monetary front. I think youve got fiscal very much front and center in discretions and then the doj meeting in a couple of weeks, and clarely there is buzz that there is some sort of likelihood that the doj will do something. I think when you combine the two of those, its pretty powerful stimulus. Just to add to that, speculation im reading, the boj could go additionally negative, down to, say, 30 basis points negative. The idea being that some economists argue rates are not low enough, not stimulated enough. The real Interest Rate remains too high. Do you think, melissa, bernankes presence there is more than a coincidence . The timing, at least . I mean, our focus is really on what Prime Minister abe is going to do to stimulate growth. How hes going to get consumption going and ultimately what hes going to do to jumpstart ergonomics again. To me thats the key issue here. Does that mean you think if more stimulus is coming down the pike, whether bernankes over there or not, that youre feeling better about where the japanese stock market can go from here, after whats been a dismal year . Nikkei 225 is down i dont need to tell you, 18 year to date . Its been a tough environment. Especially with the yen strengthening to, you know, right around 100. From 120 last year. I mean, i think its its going to be pretty interesting to see how the second half of the year shakes out as we comp that 120. You know, japanese industries, you know, are really going to have to think about their pricing, their cost structures, and everything, as we move into this environment of 100 yen. Most companies that have peaks and guidance at 110, 105, 105 was really conservative. You know . Now were really trending below that. I think any kind of Movement North of 105, 110 would probably be pretty positive for the market. Yeah. Look, there were thoughts last week you could see 95. Going the other way in such a dramatic way that japan was losing control of the situation. Im wondering now if this is a gamechanger, so to speak that investors need to keep their eye on . Its certainly a volatile market. You know, i wouldnt be out there pounding the table, you know, with a really strong call in either direction. The way this market is really flowing, you know, its hard to have really High Conviction in either direction, because there are so many factors feeding into it. And so many exo jchexoginst n though im wondering where japan is headed after this weekend. Thanks for talking to us. Always a pleasure. Last quick point. Theres two different views from the economist. One is saying what the bank of japan might do. The other one, whether it will work. Thats the question that oh, thats been asked since the beginning of the a lot of skepticism. Since the first days of that three arrows, that was asked. Question whether this stuff will undo the big trends, a sinking population in japan and less demand. Thats different from what, speculating on what they will do. Steve, thanks. Steve liesman. By the way, were expecting theresa may, the british Prime Minister designate to speak momentarily live in london. You can see a bit of a crowd gathered there. Well go to london live to hear from ms. May . Just a moment. Coming up, oil prices sitting near twomonth lows, but are stocks soaring . Yes, they are. We have the top Energy Analysts on the street coming up, plus a big call on tesla. Elon musk makes another big call of his own. Is he believable . See why one tesla says josh is shaking his head. Unbelievable. More on tesla coming up, too. Can a toothpaste do everything well . This clean was like pow. It felt like i had just gone to the dentist. My teeth are glowing. They are so white. 6x cleaning , 6x whiteninga in the certain spots that i get very sensitive. I really notice a difference. And at two weeks superior sensitivity relief to sensodyne i actually really like the two steps step 1 cleans and relieves sensitivity, step 2 whitens. Its the whole package. No ones done this. Crest healthy, beautiful smiles for life. In new york state, we believe tomorrow starts today. All across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. Like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. And in syracuse, where imagination is in production. Let us help grow your companys tomorrow today at business. Ny. Gov all right. Welcome back. Being called the biggest deal ever for a professional sports league. The ufc sold to a group led by a group for 4 billion. Looking at video there from a documentary cnbc did, that i did, on ultimate fighting, fistful of fighting some years ago. I believe back then the ufc was thought to be worth 2 billion. Today it sells for 4 billion and news of that deal ending months of speculation about the future of mixed martial arts. Owners staying on, fertitta, bought the company in 2001 for some 2 million are tapping out. Theyre going to remain and maintain a minority interest, though. The ufc brand currently has more than 500 athletes on its roster, broadcast fights and over 1. 1 billion households worldwide. I remind you, we are expecting theresa may, the british Prime Minister designate to speak momentarily live in london. Were going to go there to get those comments. She does become Prime Minister as of wednesday, according to David Cameron. But we will take you live to london in a matter of moments. Coming up, Tesla Ceo Elon musk says to expect a new master plan. What is it . And is that whats pushing shares higher today . Big move up for tesla almost 4 . Plus, one of the most followed analysts on twitter, bob peck, downgrading that stock today. Throwing in the towel somewhat. Its a hold call. Hes had a buy on it since last august. So why now . Thats our call of the day. Announcer wanted to hear more from our experts, had ed to cnbc. Com halftime for exclusive commentary, and behindthescenes access. My business was built with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . Were back. New highs, dow, 18,260. The highs of the day. A gain of almost 114 points, twothirds of 1 . There is boeing at the very top of the list, up 1. 5 today. Sharon epperson hat latest headlines. Scott, whats happening at this hour british Prime Minister David Cameron says he will resign at Prime Minister on wednesday. Paving the way for interior minister theresa may to take over the same day. He spoke outside 10 downing street. Im delighted that were not going to have a prolonged conservative leadership Election Campaign. I think Andrea Leadsom made the right decision to step aside and that theresa may will be the next Prime Minister, strong, competent, more than able to provide the leadership of the country for years ahead and will have my full support. Turkish state media reporting a teenager shot dead three Police Officers and wounded three others at a bus station in southeastern turkey before being shot dead himself. The regions governor says the shooting was not terrorism related. Donald trump says he expects to select a running mate by the end of the week, and that he was leaning towards someone with political rather than military credentials. This according to the washington post. Trump telling the newspaper that he has five people under consideration. And San Antonio Spurs star tim duncan is retiring. Hes played for 19 seasons. Won five championships. Two mvp awards and made 15 allstar appearances. He played his entire career with the spurs after being the number one overall pick in the 1997 draft. Thats the cnbc news update at this hour. Back to you. What a career he had. No doubt. One of the greatest ever. Absolutely. Maybe the greatest power forward. Sharon epperson, thanks. Sure. And earnings kicking off this week. If revenue disappoints against, sixth straight negative quarter, most since the financial crisis. Our next guest says forget about the new headwinds, new issues threatening earnings. The crowd sourced earnings estimates platform, and its good to see you again. Good to be here. When i thought the earnings recession is over, you tell me its not . Sorry. Not because investors are particularly inspired by the earnings season thats kicking off tonight. Were still looking for declines on the bottom and tops line, looking for etfs down 3 . Revenues better, negative 1 and even though extends the earnings recession. Looking at five consecutive quarters. Revenue, six consecutive quarters, more than we saw during the recession. The issues now . Throughout 2015, stronger u. S. Dollar, oil prices. Both stabilized. Second half of the year, analysts picked those up. With brexit as well as higher wages. 16 states planning on rising minimum wages throughout 2016. Companies that voluntarily are doing so, kicked off by walmart setting off a bunch of other retailers choosing to do so. The two main issues so far for brexit, only had 13 companies i believe report postbrexit, and weve seen carnival cruises, mccormick, walgreens, saying cause currency trade rates impacting the bottom line going into the second half of the year. And sectors turning around with the, you mentioned, which still will be a problem . But getting to be less of a problem. Bottomed out last quarter with eps growth negative 120 for the energy sector. Going to improve a bit to negative 75 this quarter. As we go out through the year, still negative by the Fourth Quarter, but slightly improving each quarter throughout the year. I think the Biggest Surprise as far as sectors goes is industrials and be what josh brown said earlier. Ge really leading the industrials. We were expecting them to be down negative 4 at the beginning of the quarter. Theyre at about negative 1 led by ge at this point. Guys . One of the things to watch also the input prices that go in, Energy Leading that. Youll see i think initial demand thats going to actually have positives in revenue, but i agree. When you see the head winds in terms of inputs for wages, that could be a negative. Ill take the flip side. Could cause spending also with positive Consumer Confidence saying, look, better wages, we can actually spend more mon. The hope when people make more money they put it back into the economy. Out there, shopping more. Seeing large ticket purchases increase over the last really six quarters between autos and homes and appliances. We know the Home Improvement retailers and Home Builders have done well. Yes, longterm that is the goal. You know, over the next two years, walmart spendings 3 3 billion, one particular case, raising wages. Going down the road, yes, Consumer Confidence boosted and consumers will start to put the money back into the economy. Big week. Banks certainly going to be front and center. Thanks for your time. Thank you. Appreciate it. Kristine short, Vice President over at stestimized. And over to london and theresa may speaking in london. [ cheers and applause ] i am honored and humbled to have been chosen by the conservative party to become its leader. Why like to pay tribute to the other candidates during the Election Campaign and i would like to pay tribute to Andrea Leadsom for the dignity she has shown today. I would also i would also like to pay tribute to David Cameron for the leader sthap he has shown our party and our country. [ applause ] during this campaign, my case has been based on three things. First, the need for strong, proven leadership. To steer us through what will be difficult and uncertainly economic and political times. For me, of course to negotiate the best deal for britain in leaving the eu and to forge a new role for ourselves in the world. Brexit means brexit, and we are going to make a success of it. Second, we need to unite our country, and, third, we need a strong, new, positive vision for the future of our country. A vision of a country that works not for the privileged few but that works for every one of us, because were going to give people more control over their lives. And thats how together we will build a better britain. Thank you. All right. Brief comments there from theresa may. She is set to become, on wednesday, only the second female Prime Minister in the history of britain, after, of course, mart thatcher. Ms. May saying that brexit means brexit, and were going to make a success of it. All right. Move on, talk about twitter. Shares under pressure today following a downgrade to neutral by suntrust bob peck. With mr. Peck pointing to challenged user growth and increased Competition Among other things. The price target stays at 18. This does, guys, come after a 35 drop from when he upgraded the stock last year. Hes looked at, the most inunusual analyst on the name, feels like a little bit of a throw in the towel. Not a sell, but targets still at 18. The problem bob ran into here, he thought some of these, some of what their efforts would do, actually maybe materialize. It hasnt. Thats the problem. They tried moments. That hasnt necessarily worked. Still got the sports stuff that everybodys getting excited about once again, but thats still something out into the future. Were not getting the football until we get towards fall, obviously. Right . I think theres enough of a headwind in front of twitter, hes very, very concerned how long this will take. Seems bob is saying, look, 2016, forget about it. I got to look all the way out to 2017 before we see twitter show smug. Not likely in 16, catalysts not yet materialized, continues to be challenged. Not a positive outlook at all. No. Head winds now for many, many quarters and i think we talked about that, and staying away from it, this is a classic example of a name that could pull you in and without a strong sale discipline, looking at a stock you owned in mid30s and now in mid20s, still defending the story when its trading 18. Whats interesting about this call is that twitter in the last couple of weeks has actually traded pretty well, and this is the moment where bobs getting off it, but i think the right strategy is, again, go back to earnings, go back to the facebook model. When Facebook First came out it had issues in the first couple of quarters. It wasnt until we got that it strong quarter, we got the leadership. Thats what you want to see from twitter. The minute they come out way strong quarter, and it looks like they marked a turn in earnings, you get interest. Unless its time to pull the plug. Joe said, rightly so, up 26 in one month. If its still down 23 the question, like joes talking about. Just started to move, off these levels. Why . Short covering, maybe . A lot of Different Things that actually could be coming into play now. And peck says no m a in 16. Peck is happy its off the 13 handle, because, you know i think hes a tremendous analyst. So i listen to what he says. But this is one that im nervous, if im long it, and im nervous, if im short it, because of the m a potential, judge. Snapchat, even facebook is worried whats going on at snapchat and the migration of people to that and obviously twitter isnt getting any migration of new folks, any meaningful numbers at all. Yeah. Those active user numbers have certainly been stagnant. There it is. Sort of your best evidence on a chart. Good stuff. A lot more ahead on the Halftime Report. Announcer check out these stocks. Chevron up 29 . Exxon mobile up 26 year to date. With global uncertainty and oil oversupply, is it time to dump or even short big loyal . Plus, the game that has one stock up 25 today. If your next move is to be with halftime, youre already a winner. They may want the latest prodts and services, but they demand the best shopping experiences. Theyre your customers. And by blending physical with digital, cognizant is helping 8 of the 10 largest u. S. 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What are the sectors. Doing well today. I mentioned cisco. Look at names, talk about, where can you get some yield, where do you get a low valuation, potential for growth . Those moving in the right directions, youre seeing some of that. Not seeing it as much these days, doesnt seem like, out of microsoft. Look at the way intel is trading. Talk about semis. The way qualcomm is trading . Names with low valuation. You dont feel youre chasing utilities at that higher valuations and yet seeing a lot of names 2. 5, 3 yields. People are starving for. Where the nasdaq currently sits, sarat. Old school. Cisco, qualcomm, intel, companies, no debt, increasing dividends, increasing cash fold there, in the cloud. Not as sexy as amazons and googles of the world but consistent. Working too, by the way. Amazon the other day hit another new high and todays prime day. Old tech parts of new tack. Not all of fang, but some of fang. The old tech, you have support, valuation support. You have consistent recurring revenue, and youre having people saying, look, if im going somewhere im getting yield, let me get growth on the yield, too. Advantage technology has is sectors, if the s p continues to advance, talking about the leading sector with over 20 exposure. If youre a Portfolio Manager, youre look the a a sector underperformed to date. Relatively underperforming. As the s p goes higher, talking about 20 of the s p, you automatically now get forced into the sector itself. So that in itself will lead to more exposure, good performance. And up 76 , nvidia, 65 or more up. Those chips, red hot. They fall off when you go to Texas Instruments and things like that. Nonetheless, one of the hottest sectors. Yes. No doubt. And one other point here. Look at last year when energy went down, a lot of these stocks came down because of the knockoff effects. People were worried that demand for the ciscos, qualcomms, microsofts were coming down. Now, if you get some type of stability there, you see the stocks come back as well. Okay. If there is one part of the market today that is not playing along, its oil. Oils trading near a twomonth low. Energy stocks, though, still soaring. Should you stay with that trade or is it time to get out . Were joined by evercore isi analyst the top integrated oil analyst on the street. Doug, welcome back. Hi, everybody. These stocks have done well, obviously. It has people wondering whether now is the time to get out. How much more is really there in names like exxon . Well we dont think its time to get out. Were still positive on the big oil as we have been since into last year. Remember, there are several factors in place and mostly in place today that should lead to positive performance. First, big oil, short interest, one event. Fairly poor even now. Companies reacted to the significant decline in oil prices by reducing operating and capital costs. Break evens falling across the board and felt oil prices would continue to recover. They have. May be in plateau it few moss, but positive, too, and 25 year lows on key maeshers and dividend yields near 5 we think are safe. Positive ingredients for performance in big oil and think were in the sweet spot of the investment cycle for energy, and plan to maintain our positive view a few more kwauquarters. So far, so good. We plan too stick with them a while longer. And what about the ones cutting dividend, not the bigger names . Very important for these companies. Philips specifically, the dividend, and the yield, 90 of the total return here in the past decade. These dividends are important. Shell, one of our fave ris, dividend 100 of total return during the past decade or so, and we want to be folkices and companies able to support dividends and grow them in the future and the super major are in that category. Doug, appreciate the time. Isi. Catch you soon. Exxon up 20 year to date, bp up, chevron up. Investor psychology there. Talked about this months ago when oil was about 25, people were afraid the dividends would get cut. A lot of selling into that, and i think as oil has come back to the 40s, youve got a rebound there in terms of people coming back playing for that safe dividend weve been talking about, because your tenyear is at 1. 4 . Can you tell people with a straight face to buy those gains . I wouldnt. Stay away. A lot of this relief rally, are dividends, super majors didnt get cut. Headache a shift out of the high data names. Maybe a month early, later see whats happening in large oil. The large, big, big multitype of names and second question, ask yourselves whats exposure on the refining side, refining a tough business to be in this year and whats your exposure on the natural gas side . People forget, exxon rightly has exposure on natural gas. Natural gas prices have come back this year. Another stock on the move, tesla down sorry. Up today 4. 5 , at the dean evaluation nyu says, tesla shares could be worth 350. While the car in alto pilot mode, the stock still outperformed the nasdaq 100 over the last two weeks. The professor adds, tesla is the ultimate story stock. Shares up. Down 12 in a year. What are we to make of this . Ufk musk says a big, top secret plan hes going to roll out. The controversy over the nondisclosure of the autopilot involved, or at least we think, accident, and then this continued doubts about the solar city deal. And then you have the miss. Throw in the miss. Missed by what was it . 17 . Right . Then he hadd ejust weeks before stated categorically theyre going to hit that huge target more than two years early. I think mr. Musk is playing with fire here, but people have given him a pass, and the people who have been right have been the people long that stock. Its one that i usually stay away from. Im in it for days at a imttime judge, not weeks and months. News alert on hersh. Details with dom . Looking at hershey shares, spiked today. They did get up there. This on the heels of a reuters report saying one of the trustees of the Hershey Trust company, this is the trust that controls much of hershey stock, has resigned over the weekend. This according to a Hershey Trust spokesperson. The report goes on to say now that there are nine remaining members. Trustees, of the hershey trud. All of this comes amidst a takeover trying to take over hershey in this particular instance, it may signal turmoil within the trust itself. We reached 0 ut to the Hershey Trust for a comment and have yet to hear back, but we can tell you weve reached out and will bring you more as we know more on our side, back to you. The food space, dom. A lot of wheeling and dealing lately. See where it leads. Thanks. Dom chu. Now to Tyler Mathisen with a look at whats coming up on scott, thank you very much. Top of the hour hope youll join us for power lunch. Stocks, s p 500 at record levels, dow not far behind, nasdaq at 5,000, where do we go from here . Higher or what . Plus, the stocks that brought us back to these levels. Should you buy them now after they have run up . The s p up almost 5 this year, but are midcaps the place to be . Theyre up about 10 . Well tell you about some midcap marvels you might want to take a look at. Halftime report back after this. Halftime report with scott wapner is the place for market moving interviews. You dont call a company a sewer because the company made a mistake. Were short tesla and solarcity. Real debates. People think globalization has hurt businesses. Its not. Its technology thats hurt businesses. Competition is a good thing. I dont want to go back to a single marketplace. The most profitable hour of the trading day. I love this show. All i do is get to tweet about this show im on this show. This is like the greatest moment of my life Halftime Report weekdays at noon eastern. Here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinrswim Trading Platform aggreges all the options data you ed 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 excting earnings. Pressive. Ats up, tim. Td aritrade. It is time now for a segment we call the missing link. Tiaa Global Asset Management Portfolio Manager stephanie link checking on a Health Care Stock up 9 in the past month. Which she says is a buy. Stephanie joins us now. Hey, steph, whats the name . Hi, scott, how are you . Good, thanks. Its abbott labs. I know its had a good month in terms of performance, but it has substantially lagged the med tech sector yeartodate. And its down 6 yeartodate and the med sector is up 10 . And i think a lot of the reason is because theyve been doing a lot of m a to help grow in the out years. And one deal that the market really didnt like was the st. Jude medical transactions 25 billion deal. I think once it closes, which is in the Fourth Quarter of this year, youre going to see good synergies, something to the tune of like 5 to 6 sustainable total top line Revenue Growth and 10 to 11 bottom line growth. Thats going to be better than their peers and yet the stock trades at a 20 discount to the group. Quickly, more broadly, 860 billion your aum. Are you buying in to this market here . Or are you be ware of this market . Well, you know, weve been buying for the last couple of weeks. You have to as a longterm investor, you have to be buying on the dip. So you make a list of your favorite sectors. And, you know, when you get the prices you want, you certainly nibble. What i would say is that we continue to do kind of a barbell approach. I know you guys were talking a lot about the dividend plays. There are 318 stocks in the s p 500 that are yielding more than the 10year bond yield. So i think you can find kind of a barbell of some cyclicals that have good yield, and some defensives, theyre expensive. But i think theyre going to stay expensive. So on these kinds of days not necessarily chasing the market but on a down day we see opportunity. Appreciate it, steph. I know talking about abbott but i wanted your thoughts as we hit new highs nasdaq 5,000 today for the First Time Since the end of december. See you right here on the desk soon and i look forward to that. See you soon. Thanks for having me. Stephanie link. So what do we think about this buy of abbott . Do we like it . I like all these names. Ive been in abbott not that long ago, but ive been sticking with other names. Im not been jnj for a while either. Hitting 52week highs day after day after day it seems. But i still think youll do fine with pfizer, merck and other names out there. Bristol myers still one of the best. Joe goes under the radar one stock hes watching you might be missing. Stick around back right after this. With usais awesome. Homeowners insurance Life Insurance automobile insurance i spt years active duty they still refer to as gunry sergeant when i ll being a usaa membebecause of my service in the military to pass that on to my kids my name is rog zapata and sim a usaa member for fe. Y usaa. We know what it means to serve. Gean insurance qte and see why of our members plan to ay for life. Weto a new american century. Born with a nger to fly and a passion to build Something Better and what an aming time it been, decade after decade of innovation, inspiration and wonder. So, we say thankou america for a century of trust, for the privilege f fing highernd higher, togetr. In new yorstate, we believe tomorw starts toda all across the state, the economy is growing, wi creative new siness incentives and infrastructure for a n generation attracng the talent and companies of tomorrow. Like in rochester, withorldclass box. Anin buffalo,ster, where medicine meets t fure. Us help grow your coanys morrow today at business. Govure. Right. Time to go under the radar with things our traders are watching you might be missing. And, joe, you have a name on your list. Classic example of whats going on in the overall environment. We talked about it last week, continued headwinds. How about the other side turns out fine. Priceline, 60 european exposure and again snaps right back. Its done that over the last five years. Last august same type of story, same type of worries. Here we are back again. Its a name that will stand. There it is up 2 today. Wow, 1,356 a share. Unusual activity, you know, jon and peter always dialed into the options market. Doc, what do you see . Textron, judge. Today traded over 8500 like that. September 42 calls, i bought the calls. Ill probably be in it about a month. Way unusual. Grocery worlds been really hot. Weve talked about a lot of names, kroger comes to mind but sprouts, sfm, 27. 5 calls, 5,000 purchased today. Im not in there yet because unfortunatelily been so busy traveling, but keep an eye on this name. Its made a nice recovery off lows and looks like it wants to retest some levels up towards 30. Guys, good stuff. See you tomorrow. Stocks hitting alltime highs, nasdaq above 5,000. Power lunch starts now. Welcome to power lunch. Im melissa lee along with Tyler Mathisen and michelle carusocabrera. Brian sullivan is off today. Stocks back to record levels. The s p 500 hitting an alltime high today. The nasdaq breaking 5,000. Take a look where we stand right now. Were just a point off of that new high in the s p 500, 2142, up by about 0. 46. Dow 18279 and nasdaq above 5,000 higher by 0. 09. It is worth noting the cyclical sectors, more
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