On this story. According to sec documents in my possession, documents right here, pierson sold 288,000 shares on june 30th for proceeds of 5. 7 million. That was filed and is publicly known. Then on july 1st, and this appears to be new. The motherload. 4. 1 million shares, with proceeds of 82. 8 million. There was another sale known by now some 411 million shares, total proceeds from all this, 96. 8 million. My panel with me, and kate on the case. Boy, interesting. I dont think the market knew or knows about this sale of the 4 million shares. Might explain, scott, why were not seeing a down tick in the stock price right now. Very interesting. I think on the one hand, pierson might be expected to want to liquidate holdings, no longer has skin in the game except as a matter of principle. A company he helped build, of course a darling of many hedge fund investors. Their benefit and litter detriment for some time. Sequoia as well. Popular stock for a period of time. Replaced by joseph poppa. An embarrassen step down for him. A number of issues at the company. Restatements. Problems with superbty pharmaceutical division, we know. Black eyes for pierson and perhaps he needed the cash. We dont know why or what his financial situation is, but if he did, i cant really see a good motivation for him to hold on to that stock. At least from the information we have, it looks like he sold a good portion of the holdings for an average price of 20. Uhhuh. So hes getting out, if not at the bottom, not all that far close to it. From the bottom. A number of questions and you raised them. Did he do it because he needs the money . Did he do it because he doesnt think there could be any sort of material turnaround . Anytime soon . One has to wonder. I did see, you know, filings that were made for the i just want to reiterate this. There were filings made we saw fors 288,000 shares and 411,000 shares, what appears to be the new information that i have in my possession is this sale of the more than 4 million shares of his holdings. That alone valued at nearly 83 million, but in total, youre talking about Holdings Worth nearly 97 million. Two thoughts here. I think you could confidently make a supposition pe needed the money for some reason. Whether or not the former ceo wanted to present the idea it was still a valuable company and was going to face upswings sometimes soon, or we just was an invest here didnt want to sell at the bottom. Either way you wouldnt want to get out of this stock at these levels. We should assume probably he wanted to put the money towards use and sequoia interesting, mow. Wouldnt you agree, sequoia would certainly want to see a bounceback if they thought one was coming. Been through a lot of public scrutiny. Seen resignations from their board, had retirement of one of their Investment Managers in the relatively recent past. Sure, theyre trying to recover from some overexposure, perhaps, to this name, but same time, they would want to see it recover, you would think, before taking it off the table. Lem do this quick. Just to make sure we do it. We have a statement from a valiant spokesperson, which says the following j. Michael piersons employment was terminated in may of 2016 and as such the company no longer filed stock trng transactions on behalf of mr. Pierson. Recently mr. Pierson exercised certainly options due to expire under the terms of his contract, mr. Pearson is required to hold 1 million shares for two years following termination of employment, and he continues to retain a significant ownership position in valiant. Whats interesting about that, and the reason why we couldnt find any filing is because theyre saying, he was terminated. No longer an employee, no longer obligated to do it. The filing would have to come from his broker. Those the documents that i have in my possession. Go ahead, joe . As it relates to say sequoia, read the note, 13 down for the year, strip out the valiant portion, up 2 or 3 . Sequoia, good record prior to this position and now turn around in management there. Theyre just protecting the business more than anything else. Ultimately doing the right thing and not playing to ar rebound. You cant look at it that way or anyone in the stock right now should be making a decision based on, well, i hope youll get a rebound. You could have said that at 40, or probably at 60. Thats not the right strategy. As it relates to mr. Pearson he raises 100 million here. Correct . Nearly. Can i be the ceo of valiant . You raise 100 million and look what the stock price has done . Doesnt mat fer it recovers. Already got over 100 million. Your lifestyle is not different if you have 300 million versus 100. Its not going to change the way you live. Less about the balance for him. The situation with sequoia, to me, this is one of the biggest stories of alltime for the mutual fund industry. Sequoia was the very best. Im saying, was unfortunately. We were the gold standard. There was no Due Diligence box you could check or not check on this fund. Until they got into this name . Yeah. Ten nee tenure, Warren Buffett told people to invest in. For them they need add clean slate. Ushed the guy out, retired. Right . They need a clean slate. Not 0 bounce in the stock and really the only thing probably holding this thing up at two handle is ackmans presence, and heaven forbid redemptions there and he had to sell any, even against his will. That would probably be worse than is a kosequoia getting out the side note, if you wanted money back today, would take two years to get it giving him more runway to raise capital. Thats keeping up it here in the 20s. I think, kate, what else, you know, youve got mr. Pearson dumping shares today map to retain 1 million. Okay. Because of his terms of his basically as he was let go, he has to hold on to that last million, but this is the ultimate weak hands selling now. He cant have material nonpublic information and do this or hes going to jail. Going off in cuffs. So i think this is an allclear at this level. Do i wish i bought it at 18 instead of at 23 . Sure, but the fact he is dumping this thing, selling it hard into this drop, along with sequoia el issing it hard into that drop makes me want to own it, not dump it. Well that is an interesting point, actually. To think that, i mean, him selling you would think would have a depressing effect on the price. The idea the stock is increasingly divorced from pearson under new management with bill ackman on the board. The optimistic case is this has been an overhang and, oh, finally pearsons getting out of the way. Yeah. Thats a counter intuitive point but it could be what some people are thinking. As you said, the stork is ck 2. 5 despite word of these sales. The market may not be surprised by the fact this happened. May not have known it would happen or be disclosed anyway today, but something they perhaps expected and now feel like the old is the old and the new, perhaps the new. Refrigerator out with the kitchen sink. Thank you. Talk about financials now. A very big call by one firm on several bank stocks including jpmorgan, bank of america and citi. The question is, is the worse over for the financials and are they finally worthy of your money . Lets now bring in the man behind our call of the day, james chappel, an legitimate with barrenberg joining us live from london. James, welcome. Welcome. Thank you. Yeah. I have to this is a negative note. Boy, and i want to quote a little from it. Even though you rate bank of america and citi a buy, you wouldnt know it from language. You say surrounded by a sea of debt, tied to past and hope the tide will change, pressures faced are structural and only in acceptance that operating models need to change is likely to lead to material outperformance. We see limited upside for the six banks we initiate on today and we would be looking to sell into significant strength in share prices. Even the ones you like, you would throw into that basket . Yes. I mean i think, you know, u. S. Financials and also european financials as well, theyre facing a 60 to 70year debt cycle. What does that bring . Interest rates lower longer. Growth weaker than expected. We think it will, banks will struggle to grow the top line. What do they need to do . Cut costs. But the one thing the u. S. Has ahead of europe is it did clean up their Balance Sheets in 2009. Europe is still struggling with that. What does that mean . Well, u. S. Banks can grow tangible value per share, which for us is a key drive as a are positivens, but a lot of that is already in the price for us now, and our numbers, 10 to 20 below consensus, expect downgrades to continue. I reckon you may get pushback on this desk on your jpmorgan sell call pup say you struggle to understand why jpmorgan trades at a premium to its peers when historical losses imply it underperforms them. Yeah. I think within the note and what weve done, taken a look at historical loss performance and used recent stress test results to look how banks compare when you have one firm looking at potential losses. I think on both of those measures, you know, jpmorgan doesnt outperform them with it trading into 20 premium. Wed expected to see better loss performance. We didnt. We struggle to understand why it should be at that 20 premium to tangible and expect it to derate back to tangible over the next 12 to 80 months. Turning it a little for you, james, curious. So the european banks now, looking at banks and want to be somewhere in the world right now and looking at a jpmorgan versus a Credit Suisse or Something Like that, is jpmorgan going to outperform . Yeah. No, i think well see u. S. Banks outperform europeans. I think the europeans face more greater structure issues which she still need to deal with. In particular much greater leverage. But i think that a lot of the good news that people had felt with rates rising we dont expect rates to rise. Thats going to see revenues disappoint relative to expectation and drive downgrades. Definitely overweight u. S. Rate to europe, but if we didnt have to own a bank we wouldnt today. Bringing forth a lot of mortgage refinancing. Do you think wells fargo returns to the environment it did a couple years ago where it stood out and was able to have it be an outperformer . I think in the short term, you may see some mortgage refinance that will help, but i think the wait of rates lower for longer, if you go back to look at the 30s and what happened to margins then, you know, margins fell over 100 basis points. Also, i think when you look at the u. S. , i think consumers already have a lot of debt. What youve seen is deleveraging, and with deposit growth ahead of loan growth, i think what that will continue to do is put pressure on margins, and put pressure on the top line and i think people have been overestimating expected revenue growth, and when you look at wells, the only reason you havent seen great eps downgrades, revenues continue to disappoint. Jon najarian, quick, ive been shot puts in citi group, symbol c in the u. S. For quite a while. It seems to get there and if it pierces it, just breaks right back above that level for the last, maybe two or three months seems like its done that. Wouldnt you say a lot of these stocks in particular american or u. S. Based stocks are indeed in that trading range rather than a downward trend or just in a range right now . Couldnt you say that . Yeah. I mean, i think when you look at the u. S. Banks, the capital return, that tangible book value per share growth will be supportive for these. You know, if the credit cycle does turn or the Federal Reserve gets tougher on its stress tests, that capital sbrut doubt that support might not be there. But i think there is a level where the support of capital return. James, appreciate the time very much. Thanks for coming on. Analyst with baranberg pete. The trade . Ahead of earnings, by the way. I dont think earnings give us anything to say, wow, looks fantastic. Talking about a yield curve a long period of time and obviously looks like it will stretch out further before we see these moves by the fed. Because of that i think it is an overhang, but when you look at the yields and look at some of the other potential and joe talks about Mortgage Rates and rest of it, you can understand why a wells fargo is exposed there would stand out potentially but i till look at jpmorgan. Love the Balance Sheet and think they were find ways to make money that will surprise people. Not kill it but beat lower levels where people are expecti expecting. Yesterday talking about the tenyear yield at 150. Now its back below again. Rates dont want to go up. Why yesterday we had the conversation, you cant get really excited about seeing a 15 basis point move. I know its boring. I know its not traditional. Its not what we talk a lot about here, but if you talk on the institutional side, taxable fixed income Money Managers love financial debt right now and if youre sitting and working with an adviser, i would tell them, anytime theres a Debt Offering and there are from Goldman Sachs and other investment banks and big names, get your hands on it, because thats where the performance is actually been. Not the equity side. The debt side because of regulation and significantly strong Balance Sheets. Talked about preferreds, stell are the last three years, the banks. Everyone knows theyre way over capitalized. Balance sheets never stronger. Thats your big risk on preferreds and about 70 to 80 of index or Financial Companies better than the common. Talked about saying earlier, kitchen sink when it comes to valiant getting everything out there. We have not hit that moment or have we with the banks . Oh, two years ago. The settlements why arent they all buys then . Thinking long term. What business . Marble lobbies, in an age everything is moving online. Seeing an ish roeerosioierosion right deflationary vortex sekking down rates from germany and they cant catch a break. They finish with all of the settlements and then you have the situation where they literally have their Net Interest Margin pulled away. You could make the argument, actually, that negative Interest Rates are the first major blunder by central banks. If doing stimulus in part to rescue the Financial Sector and encourage lending removing all profits maybe from the Banking System is not conducive to that end. Thats whats going on here. Think about what the nasdaq bubble burst. Technology, the poster child. Could anyone say in 03 04 . Think about microsoft, oracle. Those were forgotten foreyears and the same with financials. Good stuff, guys. There is late more ahead on the Halftime Report. Announcer next, the tesla fight. A big backer calling it the ultimate story stock. And a wall street analyst who says, this company is on the road to trouble. Plus, a big call from jim cramer. He leaves one big name dow component is about to break out to the upside. And biotech volatility. If you play juno the right way these days youre going to score big. Which side of the trade should you be on this afternoon . Were back in two minutes. Here at td ameritrade, they work hard. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. We are back on the Halftime Report. A rocky road for tesla. In addition to missing on second car deliveries the sec is reportedly investigating the automaker following a crash of the suv while on autopilot. At issue, whether tesla should have disclosed that crash to investors sooner. Should people still believe in elon musk, the ceo and his mission . Debate it now. Joined by nyu professor and dean of valuation, and colin langan covering less la for ubs. A sell on the stock. A 160 price target. Professor, begin were you you and start getting by ducks in a row. I had you said recently you thought tesla could get to 250 a share. Told our producer 220. Have you walked back expectations in the last few days . If im teslas big beggar theyis in big trouble. I was pointing out there are pathways for this stock to be worth a lot more. That doesnt mean im willing to bet on any of those pathways. As i describe it, its the a ultimate story stock. A storyteller pushing that big story. With story stocks value can be differ from the price for extended periods. If i was somehow characterized as a big backer of tesla, id like to take that back, because im not. Colin, what sort of premium, if you will, should you give to a story . I mean, i think i look at it from a fundamental perspective and i think you have to look at it terms of, story stock, talking momentum. I look at nearterm catalysts, were cautious. Deliveries for the model s coming down s kwshgs, trouble with production ramp of the x. Those are concerns and fundamental earnings challenges with neg tish headlines thats going to put pressure on the stock. Josh brown. Throw it out to whichever wants to grab it first. Arent we really doing astrology here talking about fundamentals on 2018, 2019 . How do we get a dcf aligning with the share price today and make ourselves comfortable with it when in reality this entire trade hinges upon the personality, around elon musk and whether or not he can continue to parlay that into executing, getting deals with people he needs to get deals with, work sites, et cetera . Isnt that really what this story hinges on . Professor, why dont you take that. I think that the lure of tesla and danger of tesla is elon musk. Elon musk made the company, built up the story, but hes the biggest weakness to the company. Because hes a great storyteller. If you look at teslas lifetime, its always had trouble in execution. And i think the reality is that elon musk is not as interested in execution and he is on telling the big story. Im waiting for that master plan today. Professor go ahead. You have twice now called elon musk a storyteller. Is that a nice way of calling him a liar . No. I think that when you say visionary. Isnt a visionary a storyteller . All visionaries are storytellers, to get people to buy into the story. Base se ba bezos is a storyteller. That the weakest link. Investigating tesla over this disclosure, the sec, or lack thereof, what do you think the outcome is . The former chairman of the sec harvey pitt joins us yesterday and said it coulde as harsh as having to give the proceeds of that secondary offering back . I mean, im not a legal expert. Its really not my you must be thinking about what potential remedies could mean in the way you model where you think this stock could go . Yeah. I mean, i think i look at it, not a key element of my sell rating. This investigation could end up nowhere. You have to consider it and its definitely negative when a company is getting invest gate investigated by the sec, but not i would recommend investor to go short on. And important to know before a secondary offering . If i was tesla i would have reported it. It was a risk they did not have to take. Given how well the market treated them, in spite of the bad news thats come out of about it, they should have trusted the market and gone with the news. This is part of that execution concern with the company is, they do not seem to want to do the things they need to do to get their dreams into actual numbers, and that i think would be wa holds me back on this stock. Prompt, appreciate your time. Colin, thanks sow you as well. Ubs analyst, and nyu professor of finance. So road and track has a ed hadline today that says, leave tesla alone. The carmakers far from perfect but we should be amazed what its managed to accomplish instead of xrutennizing it over every misstep. We are amazed. Look what its worth versus what it earns. They get the benefit of the doubt implicit in the valuation every day buyers and sell, are transacting at. Thats all right there. Talk about benefit of the doubt, just had a conversation with two individuals about tesla and no one mentioned the solar city deal. The question i was going to ask colin. A huge deal. And this is a huge distraction, and a company that youre trying to figure out how are they ever going to get to half a million vehicle, we sit here dumbfounded. Thoughts that its a distraction, its to bail out certain stock loans that have been made. Sure. Against different companies. Very good corporate governance. Thats really what the issue is. I say this, i know youll go there. Buy or sell the stock here . I say look at the moving averages see where the 50 and 200 day are, 217. That would be an area youd want to keep a close eye on. Breaks that, down to 180s again. Doesnt break that, the only way to play it through options. Not because im an options guy, but when you look where the stock could potentially go up or down based upon implied volatility you dont want in the stock on the downed side. Coming up, Oil Following a warning from the International Energy agency. Are we on the brink of another big leg down in crude . Plus an uber bullish call by our own jim cramer on caterpillar calling it a buy, buy, buy. Does our desk agree . Were going to debate it, next. We were born 100 years ago into a new american century. Born with a hunger to fly and a passion to build something better. And what an amazing time its been, decade after decade of innovation, inspiration and wonder. So, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. Were back. It is 12 30 on wall street, where the picture looks today one day after setting alltime highs for the Dow Jones Industrial average and the s p 57 500 given a smidge back today. Not for caterpillar, up double digits this year and despite its run, jim cramer says, still time to scoop it up. What he said last night. Cat is the the precipice of a breakout. Shorts, press it. Above 180. I think news out of china is good enough you can finally have a quick spurt, as the guys realize they have to cover. I say, buy, buy, buy, even up two today. What cramer says. What do you say . Well, i giofgueuess theyrg at it, cant get any worse. Asiapacific down 13 , saying to yourself, well is it really just komatsu selling these kinds of Mining Equipment and so forth . Is it possible that maybe thats as bad as it gets and thats why you buy it . But the stocks already 20 off the low. So, no, for me its not as exciting. One year down 5 . Josh, you own deere . Yes. Cat actually looks technically a little better than deere. I like the deere story better fundamentally, much, much less involved in mining. Much, much more towards feeding the world, i think will come to the fore in the coming years. Cat, yeah, could break out above 80. A next level of resistance not far above that. The real breakout, of course, above 100, where its turned away from several times since 2012. I dont know. Looks okay to me. Not great. Probably not my cup of tea. To your point, jon, cramer tweeting, yes. Jims right, a reason to buy. As bad as it can get, just like jim talked this morning and been right so far today, about many of his readings being at a 10 or higher. And in other words that he said thats when in the past ive gotten out broad market and wait for a pullback, just as its as bad as it gets for caterpillar, maybe the captains right. One more. Ge. Both josh and pete own it and thats a stock, josh, you said for a while now was poised for a big breakout. The one you want. You dont neat cat. Listen, if you have ge, you have now access to the biggest trends happening in the world. Robotics, health care which is now one in nine jobs in the united states. Going to be a global secular bull market maybe as long as im alive. Think about the internet of things. Think about aerospace. You have ge, checking all those boxes. I dont know why you need a second or third best industrial. How long finally executed on this and getting himself out of the headache of the financial world and now all of a sudden and media. Two things you dont want. And now focused where they want to be. Look at it, what really i think has moved this stock steadily higher and higher and look at all of the return on investment. You got like what ge is doing. Coming up, amazons prime day, biggest sales day ever. U. S. Orders up 50 . The trade on that and all of todays move, in the blitz. More Halftime Report is up next. Im sharon epperson. Cnbc news update at this hour. Reversing a bankruptcy ruling protecting gm involving ignition switches prompting a series of major recalls in 2014. Gm is reviewing the ruling and its impact saying if some cases can proceed, the plaintiffs must still prove their cases. And black lives matter blocked a minnesota freeway bringing the morning rush hour to a screeching halt. Demonstrators blocked all lanes with their vehicles and then their bodies. Dozens arrested. Rescue and Search Operations continue in southern italy where two passenger trains collided headon. The death toll from tuesdays crash rising to 27, with dozens more injured. Three cars were torn apart from the impact of the collision. And at least 33 people were taken to new york City Hospitals after apparently smoking a bad batch of synthetic marijuana. Known as k2. Emergency crews found several people unkconscious, there have been more than 6,000 k2 related rch room visit in the city. Thats our cnbc news update for this hour. Back to the show. Sharon epperson, thank you. Oil falling 4 after yesterdays gains and Jackie Deangelis at the nymex with futures now traders. Good afternoon. Trading under 45, about a 2 drop. Jim muirio, whats the outlook for oil now . Okay. I get it, the inventory numbers bearish and have seen the dollar kept its gain since the brexit vote, and were talking more about supply than we are demand, but end of the day, i think sometime in here particularly lower 44s, were going to start shifting more talking about instead of talking about perception of Global Demand going lower instead the reality of domestic demand higher. I do like crude maybe a little lower than this after it gets through whatever problems it has. Interesting. Bob, your perspective, a lot of people concerned about demand in the second half. Global demand is looking to be flat to potentially only slightly higher. So whats your view on oil, do you think we go higher from here as jim is suggesting or lower . I dont and am happy to disagree with jim. Hes so smart on Everything Else but i think i got him on oil. Ive switched from a well long position since may to sele rallies in crude oil. What we have now, the story from the april rally. The second leg of this rally, it was a demand story. With the perception and possibly reality of demand starting to weaken based on brexit and other global weaknesses, you can see selling of rails take over. Close below 4478. If that happens, selling any rally into the mid50s. Sell 4550. 4335. Below that, 4190 is really, really easy. For more on futures head to the website. Live show tomorrow, scott, 1 00 p. M. Thanks, see you then. Not trading that leave it to the hundreds of computers in Lower Manhattan now, predicting the price of oil is a fools game. In terms of investing i like the strategy pete and jon talked about a while, rather, josh, owning xle, mega cap names. I would add to the Halftime Report portfolio philips 66, psx. Reason being, oil to me now is trading on the defensive, and could be one mpt reasons why the market pulls back. With that said, 2015 refiners performed incredibly well. Psx, downgraded at barclays Goldman Sachs, one mpt favorite names. If oil goes lower, again, invest around it. Psx and refiners working well. Josh, pete . Both like . Yeah. When you look at the history, after periods of tremendous volatility or oil you get a stasis, a little equilibrium, meaning you dont have to look for the next huge live up or down, more of the same. In that environment, you want to own the biggest names. Still own xle and exxon looks incredible within there pap true breakout. Oil feels like its in the range. 45 to 50. A little bit of a range. Break out of this, actually start to plummet, all of a sudden things change. But the beta names were the play all the way up to the 40s and big cap names, why were seeing yesterday that huge call buying in the xle. All the way out to january, judge. Not short term. These are guys expecting to see oil not today, not tomorrow, but over time start to move higher. Just ahead, the china play. Plus, how to play one extremely volatile biotech stock. You make the right move, you make a lot of money. 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The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. I want to show a live shot of Buckingham Palace in london. Theresa may, officially the Prime Minister now of great britain. When that happens, you get a meeting with the queen, and ms. May is inside Buckingham Palace as we speak meeting with the queen. David camerons resignation becoming effective today. Lets talk china stocks. Stages a stealth comeback. Shares up 8 . Is now the time to get into china . Helen zhu, joining us from black rock. Nice to see you. Thank you. My pleasure. Such a cause of concern for so many months and with brexit and maybe other events around the world, sort of off the front page. Where is china today . I guess versus 6 to 12 months ago, less is good news for us. I dont think weve seen a huge recovery in economic both but thats not policymakers are going for anyways. We heard, policymakers going for an lshaped landing for the economy. We need enough em employs and social stability to push ahead on social reforms and what weve seen is really just stable trends in terms of underlying fundamentals, and were seeing a gradual return of interests or at least less negative news and less worry about immediate blowup. What do you think china gdp tomorrow night will deliver . A surprise up or possibly down . I dont think that were looking for either big upsides surprise or a major contraction versus what people are expecting. You know, i think probably, you know, 1q, 6. 7, maybe mid6s, 6. 5, thereabouts. People asked after the First Quarter whether the economy bottomed. The answer, no. For the next five years, the target is 6. 5 implying there will be periods upcoming when it will be noticeably below that. So i think were probably going to gradually drift down, maybe 20 basis points per quarter, 30 basis points per quarter, mayor stiblize around 6 or slightly below that over the medium term. If thats the case, how do you play china right now . I dont think we need to focus that much in terms of growth. Right . Most opportunity in china is really about the Structural Reforms and major changes theyre doing to the economy. So whether thats social Economic Reforms like loosening the onechild policy, whether pricing reforms in terms of energy prices, soft commodity prices, whether its in terms of Financial Sector reforms, you know, Interest Rate deregulation, these are the big trends we have to look at. This year one of the key things recently thats come up as a point of interest is supply side reforms. Talking about steel, talking about coal, talking about these massively overcast sector, filled with socalled zombie soe companies that arent necessarily competitive. Its talking about getting rid of that excess capacity over the next couple years. On the margin, this is where the changes are happening and interesting opportunities were seeing. We think about china, think about ways u. S. Investors can get exposure to china. Were you surprised by the msci decision not to include china in their global index . Well, obviously chinese policymakers had made significant efforts to try to check off the boxes as to all of the requests msci made, but in some waying clearly there are still issues yet to be addressed and clearly some things were addressed prior to the decision still need more time to be proven. The msci made it very clear they will continue to review this eve be on an offcycle basis. Probably over the next 6 to 12 moss were likely to see some progress in this regard, even if not a very large percentage of inclusion, perhaps have the first step of many to come. Helen, appreciate your time. Thank you so much. Thank you. A black rock head of china equities. Funny, joe, right . China was so important until its not. Coming into the year all we talked about, significant depreciati depreciation. Seem to be past that point. The chinese policymakers have been active sellers of u. S. Treasurer rirs and u. S. Equities. Thats helped whats going on in currency markets and most important dynamic. That impacts us most here more than really the reality of what their equities market does. Two things have to be brought up in this china discussion. First, the government green lit the pensions, which are de facto managed by the government, to buy up to 300 billion worth of securities local chinese market. Huge nuved talked about and a lot of action trying to front run ahead of that. Second thing, watch latin america as kind of your tell on whether or not people really believe the chinese story is getting better. Brazils up 50 this year. That doesnt happen without there being some glimmer of hope china will begin to import again. Also has maybe implications that the fed has been on hold so long, people felt better about the prospects of a nofed rate hike impacting emerging markets. One of the risons why those markets hold back the u. S. Dollar from rallying, again, keeps the chinese far less motivated to appreciate the currency. Youre playing through casinos . Were seeing a little turn finally in mccowan, because of that, most recent numbers out a little better than people expected and seeing paper today, impel as well. Keep an eye on las vegas sands. Down today, but names to look at. Brian sullivan, whats coming up on power lunch. Top of the hour, the four big fears one, two, three there you go. Four big fears. Citi and if you think our markets are doing well, josh talked aut brazil. Check out the other emerging markets, huge markets. Should you trust it, well dig into that. And at 2 00 eastern breaking news from the fed, its called the beige book. More Halftime Report after this. Halftime report with scott wapner is the place for interviews. Real money. We are short both tesla and solar city. Real debates. People think the globalization is what has hurt businesses, its not. Technology has hurt businesses. Competition is a good thing. I dont want to go back to a ngle marketplace. The most profitable hour of the trading day. I love this show all i get to do is tweet about this show this is like the greatest moment of my life Halftime Report weekdays noon eastern. 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. I want to recap that story. That was noon today and that is the former valeant Ceo Michael Pearson selling a lot more stock than i think the market knew. As much as 5 million shares worth more than 96 million. That stock turning negative is now as well as that news andrew left of Citron Research is taking a short now. Hes doing an interview with a publication, i believe, says its an obvious zero now, he says. That comes on the news of sequoia dumping the rest of its stock. News today we first reported this much larger sale of valeant shares than the market had initially thought. When told as well about the news that we broke earlier, mr. Left saying its already a sinking ship. With the titanic going down, you can at least get on a lifeboat and get out with what you can. That is the take from andrew left. Follows our reporting today of that large sale by mike pearson, the former ceo of an awful lot of valeant shares. You can see that stock which was up throughout much of the session is being hit by about 1. 5 at this hour. Lets turn our attention to another stock on the move, it is juno. Announcing that the fda has removed a clinical hold on its trial. Doc. Well, yeah, they had a lieu kaem ya treatment that because of two patient deaths basically was put on a clinical hold. I think 39 million share turnover as the stock fell from 41 to 27. Its made about a 5 recovery since then, judge. On the basically releasing of that hold, the removal of that hold. So its back to 32. 50 or 32. 80 right now. Anybody else have a take on that . Juno . I have no position. You have no position at all . No stock, no option . What about pandora . Lets talk pandora, that stock was upgraded to overweight. Yep. I think 18 price target. Well, you have the Ondemand Service coming and i think thats going to be a positive. I think this is a stock thats seen the worst. Short interest is something you have to Pay Attention in this. Down around 7 when it was at the lows in february. Now it stands at around 15 , 30 days ago somewhere around 20. I do believe where the stock is now trading around 13 theres more upside than downside. Fundamentals are coming more into clarity here and favorable vision. Got some big earnings coming up tomorrow. Certainly starting with some of the banks, going right into friday. Were going to set you up for that coming up after this quick break. Welcome back. It is quite clear shares of valeant are going to be a story for the rest of this day at the very least. That stock is now down more than 2 , follows andrew left of Citron Research saying hes put on a new short position, calling that stock a zero. All of that following our report at the very top of this hour that former Ceo Michael Pearson apparently has sold an awful lot more stock than the market may have thought. What we can see here from filings that i have in my hand, he sold 4 million more shares than the market. The total proceeds of his entire sales over the last few weeks 96. 8 million. The sale of july 5th of 411,000 shares, sale on july 1st of 4. 1 million shares and june 30th of 288,000 shares. And of course the sequoia news. At one time the largest shareholder in valeant, out completely. So that is what the confluence of stories, if you will, look like in a stock price at 12 59 45. Its a loss of nearly 3 . Shoutout to josh brown. Just ranked as one of the 50,000 growing Financial Firms in the country. Yeah. Congrats to you. Thank you. Power lunch starts now. All right. Ive been waiting very patiently all morning. Extremely. Right here. I didnt just get here. Im always ready to go. Stick around, fans, scott, thank you very much. Weve got a jam packed two hours of power coming your way. Welcome everybody. Im tyler mathisen, melissa is here, michelle is here, brian is here. When is the last time two days in a row we were all here . Its been a long time. Leap year probably. I dont know when it was. But lets look at the stocks, shall we . The dow industrials adding to yesterdays record up five points now at 18,352 and change. I