Answering questions today for the first time regarding that massive price hike for the epipen. Its a device needed by people in case they suffer a severe allergic reaction. Surely you must understand the outrage somebody i talked to last night said people are outraged because it seems outrageous. This is the same product it was in 2009 but yet the price has gone up 300 or 400 fold. No one is more frustrated than me. But youre the one raising the price. How can you be frustrated. Theres a list price of 608. I laid out there are four or five hands that the product touches and companies that it goes through before it ever gets to that patient at the counter. No one everybody should be frustrated. I am hoping this is an influx point for this country. Our health care is in a crisis. Its no different than the Mortgage Financial crisis back in 2007. This bubble is going to burst. Im committed to drive change because the leaders and senators, ive called all of them. I want to have a facetoface meeting. Price is one part of the problem. A bunch of senators would like to speak with you as well. They havent called me back to set a date. Have you reached out to senators. I reached out to several senators. Youve reached out to them. Personally. When . Last few days. Two days ago. I called them and said what do they say . When is the meeting . They havent set it. I said as soon as you can meet im there. All right. Thats just a bit of it. Theres more to that. Well show more at 2 00 eastern time. She was saying about this idea of the system was that david if youre mylan and im the end user and you have all these guys here that every time the drug goes from you to me they take a bigger cut, her argument was that the middlemen arent going to roll back the price hike so the rebate will be better for the consumer. Theres too many players and they wants to go after the supply chain. I get that argument because there is a system to contend with here in that the middlemen get their cuts but if they didnt go up to 275 per epipen these guys wouldnt have as big a cuts. Her argument raising her own net price we dont know that. Her argument seems to be that these guys will not if she cuts by 30 theyre not cutting by 30, especially the pbms and thats who she went after. Which ones . So youre there for full disclosure and youre saying that 55 , that 274 is the number. Thats the net. Youre talking about 55 thats going to the pharmacy benefit managers. What about the Insurance Companies as well . How much is included there. Hard to know. Its a great question because everybodys got a different deal. They cant negotiate things, tera nova, national chain, you have more Pricing Power so the deals are going to be secretive. Great interview. So many of the senators saying we want to talk to. She said she has called and asked for a sit down and they havent returned her calls so check grassly wiey will be on p lunch. Im looking forward to that interview. Lets bring in david. Whats your reaction to that argument that there are so many middlemen, its the system thats causing these prices. So if a little boy is sitting in the kitchen and has his hand in the cookie jar and his mom says what are you doing and they say you dont understand, the economy is forcing me to do this mom, something doesnt sound true there. They should have come out and apologized for what they did and this idea that middlemen are taking the profit, if we look at mylans disclosures it appears the epipen has doubled in profitability in the last few years, so theyve more money. To me that doesnt add up to that the others are taking all the profit. Tell me if this makes sense because when joe broke it down and said 55 , theres going to be a 55 take based on the net price, let say that percentage stands, if they didnt raise their net to 274, she still raised that net price. She was saying its not fair in the media to say it goes up to 600 plus dollars an epipen, that her net price is 274. What do you think the price increase was in the same time frame to the 274 . Was it a fivefold increase as well. I would think so but i have no idea. One thing i do know is i reached out to a generic manufacturer last night and asked them how much do you think it costs, a company that specializes in injectable how much does it cost to make an epipen. They said 3. Its less than a dollar for the ep testimony ran and 2 for the injector. Lets look at this as a business piece. This is no different than looking at a costco or walmart that goes to these manufacturers and says were a massive buyer, so were going to set price and youre allowed to make x as a margin. Thats what express scripts is doing and United Health care is doing and so mylan, thats the reality of being a Public Company where they have few areas where they can effect price. Theres no competition. I looked at a pricing chart of the epipen, theyre not recovering any r d here because they acquired the product. Right. It goes like that. Theres no competition. So theyre making hay where they can. You have to take into account the social aspects of it and its offensive to charge that kind of price where its needed. Health care is just a very interesting industry where you have to balance what the social conscious is versus the profitability. The context is we have been living in an environment for more than a year now where Health Care Costs have been in focus and politicians have been more than willing to go after massive price increases. So you take a look at what mylan continues do because there were two Something Like two 15 prices increases this year, what they continue to do in this environment. If you believe the ceos argument theyre saying theres not enough competition in the insurance space and the pharmacy benefits manager space and if thats true it points the finger at the department of justice, federal trade commission, all of whom have been stringent about not allowing mergers to go through where there isnt enough competition. It takes the wind out of the sails to say those guys arent being competitive when were the mon oppositely of the epipen. Thats not true. They only recently started saying no to m a. There has been lots of m a and you have to look at each individual market to see where the providers are. Theres not enough competition in the spaces. If youre looking a the what the Affordable Care act has done youre going to have states with one provider. Before we go off on the insurance part of this conversation its a big part of it. It is but i want to deal with the mylan aspect and the impact on biotech. We saw that yesterday mylan is more than 7 weight. This is a matter for people who have those mechanisms in their portfolio that many do. When you go back and analyze mylan youve recommended rolling back prices to two or three year ago levels. If they did that what would be the impact on their earnings . What if they had to go back and roll to the similar extent that list of generics that you had in your note from june that had 400 , 500 increases in the first months of this year, what would the impact be on their earnings. We havent calculated that but if we did an estimate maybe it would cost them a dollar of earnin earnings. You say thats bad for shareholders but if youre taking from consumers to pay for shareholders and its different than lack of competition. One thing i want to point out if youre in an ambulance and you think its going to cost 500 to get to the hospital and they say its going to cost 5,000, thats different than we racarrd the pri raised prices and you have alternatives so do patients have any alternatives. Do you think its priced in and fairly valued where it is right here. We think mylan is fairly valued right here. Growing up my mom always told me if a fight breaks out turn around and leave. We think that investors should probably just wait it out, lets see how the Senate Hearings go. I think they will pursue them even with this announced price cut. On that point of no alternatives in generic competition. Why is there no generic competition . Nobody really understands why exactly they havent been approved but they reached a settlement in 2012 under which they could potentially launch a generic version of the epipen. Fda approval has been the problem here. Tefa put out a short filing with the ftc saying they identified certain major definitesies and teva expects the product will be delayed and any launch will not take place. As teva was applying for that approval mylan sent a approximate he tissue to the fda telling them the epipen generic needed to be the same as the actual epipen and not require additional training. What mylan said they believe because of the nature and scope of the differences and design in operating principals, epipen trained users will not be able to safely use the teva product according to the instructions for use. They say the issues raised by the teva device are novel and involve significant potential health risks to patients. Subsequently the teva generic was rejected. Now theres pressure put on the fda as to why this hasnt been approved and why theres a ba backlog of these competitions. Senators have written a letter saying it would be helpful to understand the food drug administrations role in this area given the authority it exerts over the epipen. Now were seeing notes come out today saying this may prompt the fda to move faster and theres another competitor product thats not identical to the epipen saying theres some supply issues there and maybe the fda will work with the company to speed that up. We know that mylan has come out with these rebates today. Senator Chuck Grassley has said that these are not real price decreases, the price is really what the insurers and patients feel. Lets backtrack. Mylan and teva had a an agreement correct. Mylan paid teva. 400 million. What was the number . The terms of the agreement were not public. It was a large number and thats one of the issues. To say essentially we will continue making epipen for x number of years and we wont challenge you but give us this time in which to make it exclusively and now theyre out with another petition to try and keep it off. While they agreed the mechanical yi that teva could launch this generic in 2015 they were lobbying the fda not to approve the generic. It stinks. I want to go back david. So we just outlined it like that. How do you think this is going to be interpreted by that Senate Committee when they finally get in touch with heather brush. Maybe there are a dozen of things that come out of that conversation . Were all for access but only access for our product because the petition shows we want to be the only one here. Second, lets talk about not just pricing and profitability, but whats going on with the interaction with the fda . How close is industry . Maybe if the fda came out and gave us all the phone notes and conversations and emails between mylan and the fda and teva wed have a good starting point. What struck me is the arr arrogance of the management doing this. Its not illegal. Its tone deaf. Right. Thats my point. They didnt get the memo look whats going on in the industry. Your best case scenario, how can mylan turn this around in your view at this point . Dont mumbo jimbo say we made a mistake. The problem first lies with mylan deciding to raise price. So first apologize, say it was their fault, roll back actual prices, not can you upons and on the Schools Program they say theyre going to extend it, i thought that was going to be permanent so they should say we are going to make epipen for schools free permanently. Its not a lot of product. 700,000 at 3 a piece, its a couple of Million Dollars out of a billion dollar product. Do you think she is still ceo in 12 months. It depends on how she handles this. Based on the board and the history of other things i think she keeps her job. Okay. I think she goes and works for private equity and becomes very wealthy. This is just it points out the biggest problems in this whole system though. Sure. Congress has blood on its hands. Its not just the drug manufacturers. Its the fda, the ftc, its everybody that has blood on their hands that should be addressing this issue. One quick thing, i dont want the wall Pharma Industry to get pap painted with the same brush. A lot of companies are trying to find cures for things and we have three or four outlies that get the news but regulation will haunt them. Mylan is a 3 waiting on the ibb so when it fell we saw the impact. Who buys ibb, biotech at large. I do. If you go back to hillarys tweet in july you have to take a look. It took the sector down 30 then and 30 in january. I buy it because i dont think anything will happen. If Congress Tries to regulate pricing before and its failed. I think youre okay. A reminder, senator Chuck Grassley power lunch today 2 30 p. M. Eastern time. Hes one of the senators that signed the letter. Thanks everybody. St. Jude moving lower after muddy water said it was shortening the stock and almost half of its revenue could disappear in about two years. A number of st. Judes products could be recalled due to potential cyber attacks. The st. Judes responded saying its absolutely untrue. Heres whats ahead on the Halftime Report. A big wall street call and a stock near and dear to traders hearts and anyone who looks movies and tv so this applies to everyone. Were talking about both sides of the netflix trade, the call of the day is next. New signs of trouble in hedge fund land. Redemption sends a possibility of changing fee structure. Fee, hp, work day all in play. More halftime in two minutes. What if a company that didnt make cars made plastics that make them lighter . The lubricants that improved fuel economy. Even technology to make engines more efficient. What company does all this . Exxonmobil, thats who. Were working on all these things to make cars better and use less fuel. Helping you save money and reduce emissions. And you thought we just made the gas. Energy lives here. Theres no one road out there. No one surface. No one speed. No one way of driving on each and every road. But there is one car that can conquer them all. The mercedesbenz cclass. Five driving modes let you customize the steering, shift points, and suspension to fit the mood youre in. And the road youre on. The 2016 cclass. Lease the c300 for 369 a month at your local mercedesbenz dealer. Netflix is higher, 50 upside from here based on subscription growth and a push for original content, netflix is our call for the day. Whose on board with this. Dr. Jay, this is your kind of stock. It is because i like the call by William Blair and i think that netflix which had bottomed a couple of times this year at 85 would rather pick it up there but you cant always get what you want i think i bought a call spread several months out in the future because i dont know if it moves quickly. Millennials arent going to use each others passwords forever. I think netflix will force that. I think that the era of you being able to share this password across multiple time zones is probably coming to an end. Right. Their forecast for net scrub subscribers is 17 . Very generous. 145 is a stretch. Thats a long way to go. I think now that you have gotten key two out of the way and subscriber growth is not as strong as expected, so i think you can look at this as potentially having a trough moment for the stock, where it is right now, stock could probably trade either side of the 100. I think a lot depends on what the market does over the next month or so. 145 thats a stretch. There was a concern about the olympics, netflix saw a ding. The und the. The streams numbers were big and that will hit the netflix viewers. I agree that amazon is a threat because you cant argue with free and if youre a prime customer you get free and by the way their content self created content that means specifically for amazon is not as robust but its good. Netflix content which he points out as being underappreciated, i dont think thats true. I think its well preeshappreci. Now we have hulu. So im with joe i dont go four and 45. Ive looked at buying it. I would like to see it come down some before i step in. Lots of movers on the retail side today and hathaway is raking in eig 8 a second. See what some believe buffet is doing to protect his investment. More Halftime Report straight ahead. I asked my dentist if an electric toothbrush was going to clean better than a manual. He said sure. But dont get just any one. Get one inspired by dentists, with a round brush head. Go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque and rotates to sweep it away. And oralb delivers a clinically proven superior clean versus sonicare diamondclean. My mouth feels super clean oralb. Know youre getting a superior clean. Im never going back to a manual brush. Lets look where the markets stand right now. Not too much going on, but no surprise considering everyone is waiting for Janet Yellens speech tomorrow in wyoming. On the s p 500 we have five winning and five losing sectors. Lets get to the news headlines. Heres whats happening at this hour. We begin with a travel nightmare if youre in the miami area because the faa has issued a ground stop for flights into miami and ft. Lauderdale international airports. Its due to a power problem at the miami terminal. The miami Traffic Control center has taken over the airspace and is safely handling flights in the air but lots of delays. Migrants have been helping to dig through the areas def tatd by an earthquake. The death toll has risen to 250. A strong aftershock hit earlier this morning causing more damage to that region. Brazil senate has begun deliberating on whether to permanently remove the president from office. Its the final step in the impeachment process. Shes accused of illegally shifting money to mask rising deficits. Bruce springsteen shows no signs of slowing down. He played in new jersey tuesday night. 3 52 to be exact. Its the longest show that hes ever done in the u. S. And where better than here in jersey as they say. Back to you guys. Thats the news update this hour. Lets get to the trader blitz. Tiffany higher than beating on the bottom line. Jim, you own it. I didnt think it was a great Earnings Call but the market likes it and what they like is the fact that the second half of this year is going to be stronger than the first half and theyre equating that with 2017 being stronger. If it can get to the mid 20s as far as a multiple theres a 50 rise in the stock here. Signet is reporting down sales. This was a stock a year ago that was a favorite in the hedge fund community. Trading around 83. I dont want to buy it. Theres multiple problems for this company right now. To say the reason why the sales at zales are not good is because of Energy Prices in texas, come on. It shows its a domestic business. Energy prices have rebounded significantly and now its impacting . Everyone needs an excuse i guess. It shows its a domestic business versus tiffanys which is international. Sorry im beating the drum but i caught that one. Are you going to bring up ashley madison. They dont have if we could hack one of those, the stock could get back on its feet. Dollar tree and Dollar General falling short aft. Dollar general has been strong over the year. Lets let it settle over the next few days. It was about the guidance and a lot of sales were impacted by seven states ending the Food Stamp Program a lot earlier. That really impacted sales here but i still think dollar tree is a good store. Look at these moves in retail stocks. Its unbelievable. Its worse than biotech. The question is is there a shift now. Is the shift going back. To walmart you mean . Im sorry, shift to within retail . Higher end retail. Are consumers now spending more money and are we shifting now to the more affluent stores. I think the tiffany move i think you had a phenomenal call but its an overrated move. The quarter was not as bad as feared but to go back to a 20 multiple its truly wait and see. Micron moving higher. Steve owns it. Weve seen this kind of move supposedly micron has a lot of invento inventory. Thats good theyre willing to manage it but this whole technology move of whats going into a pc and other Tech Products is not we see digital moving up today. I think that will continue and its a product of an improving economy. Work day higher after beginning the top line and reporting a 37 increase in subscription revenue. It was that 37 increase you got jmp and ubs, a whole host of folks upgrading significantly their target some taking it into the 90s. A fabulous day for them. Guess reporting better than expected. Up 25 . The moves in retail, think about yesterday had express down 25 on missing its number. Thats just the volatility this has. What it means if youre going to be an investor in the retail space you have to do be the checks. You have do your channel checks. Big changes in hedge fund pricing may be on the way. Were talking about potential new numbers coming up and the cherrios trade. Halftime is coming back. Biobiotech bio. Hedge funds are under scrutiny again. Monthly outflows heighting the highest level since 2009 totaling more than 25 billion in july and citi group is weighing in to sell expressing concerns over fee structures. They believe the model is dead for most hedge funds. Theyre down 60 in the past 12 months. Theres investigation into alleged bribery in africa so when investors see that they take their money out. We have the same questions of prime brokerage and Hedge Fund Managers. Its with all active managers. The pressure we see on hedge funds pails in comparison. They compete with passive investors more so. So the flows coming out from active managers and mutual funds as you see is record numbers. Because of etfs. You cant compete with free in a lot of instances. So we focus on the Hedge Fund Managers but its pervasive across the entire industry. Talking about ochziff, theyve taken 4 for themselves. Over the last three years theyve underperformed like the rest of the industries so investors are saying why dont i just go pavs. Why dont i put it in the s p and not pay these fees. Its not the end of the industry. The industry has too much capacity. Its been impossible to make money on the short side. So that coincidences with low Interest Rates and that coincidences with hedge fund underperformance. What about the size of individual hedge funds . Theres talk that smaller hedge funds are having better performance and there have been large funds that have terrible twoyear track records, do you still get paid if you have good performance. Heres whats interesting. Every study will tell you that smaller hedge funds and those are the ones we invest in with rare exceptions perform better than larger hedge funds because the tupopportunities are better. Whats changed now is that the headline stocks that i like to call them, the ones that figure most prominently are driven more by etf trading than fundamentals. The other thing thats going on you have to be a shortterm investors to take money off the trading which is not t tax efficient so if you dont care about taxes or very long term because etfs are much more tax efficient. Th they. I do believe we will have a reversion in terms of the flow going and we tend to forget and we talked the other day any time theres a big earthquake you have a tremor before. Lets not forget what happened a year ago when on that monday morning a lot of those etfs the way they traded that was one year ago yesterday. Yeah. So i just participated in a Morgan Stanley survey on the markets and one question was what is your big concern and my big concern is in any substantive correction for any asset class liquidity and i think that takes you to etfs. We are going to see a moment where were going have a day of reckoning and you are going to wonder are you going to have the liquidity and i think thats where the mindset is. Thats the biggest rick osk in the markets. It cant be a oneday v shape. By far the biggest correction if you back to 87 portfolio insurance, that was going to protect you and that caused the crash. Blockbuster lineup for the sixth annual delivering alpha. The event takes place on september 13th here in new york city. I shouldnt say here. More details and tickets are available at delivering alpha. Com. A recent rally in the dow chemical what some say buffet could be doing to protect his investment. More halftime straight ahead. With this level of engineering. Its a performance machine. With this degree of intelligence. Its a supercomputer. With this grade of protection. Its a fortress. And with this standard of luxury. Its an oasis. Introducing the completely redesigned eclass. Its everything you need it to be. And more. Lease the e300 for 549 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. If it takes above 53. 72 buffet and company lose a 255 million a year payment, about 8 a second. Buffet would instead get regular shares. The wall street journal reporting their speculation berkshire may be shortening dow to get it back down and to keep the 8 per second rolling in. Youre shaking your head. Hed be crazy to do that. On so many levels. Its not illegal but id like to see the contract that was written between him and dow when they did this preferred share and i would imagine that dow put protections in there. So hes going to have a contract issue and theres the reputational issue. This is the guy who came in 25 years ago, this is not apples to apples but when they had the treasury bond scandal warren came in to clean that up. I dont think he throws it away that easily. The article in the journal did say that he couldnt short it until 2014 and then he could. So it was contemplated he may take the stack of shortening however i dont see him doing it. I think that creates a whole other host of headaches for him both publicly and number two he has this massive short position that should stock go through it he has a loss of it. I just think its its not like he loses all of it anyway. It goes down from 8. 5 which is this preferred dividend you gets to 3. 5 which is what mere more tals get for owning the stock. Youre giving your money to total strangers. Youre giving them 3. 5 . Its a 5 differential. Hed still be making 15,000 or Something Like that a day, divide that out by the seconds, hes still making money every day that hes in this from that dividend. Okay. So youre dow chemical, go buy back your stock and take him on. Good point. But shortening it against some credit instruments is a common strategy, i just dont think thats one thats applied here. I want to check on mylan. Weve gone up about 1. 5 to negatives. This is on the heels of the exclusive interview we had with the ceo this morning and ahead of our interview with senator Chuck Grassley. Were watching this stock closely. Now to the options market, an usual activity in a Consumer Food name. Cocacola was rumored to be looking at in late july. Its general mills. We noticed some unusual activity today. Its not as strong in kellogg. 8,000 plus of the 7250 calls that are trading out thats what theyre buying aggressively. Now theyre pushing up to 1. 8,000 of those was 2,000 so about 6,000 contracts or 600,000 share equivalent is the opening trade that has happened today in this stock. I bought it and ill probably hold it for two weeks. Copper trading at a two month low. First over the Tyler Mathson for a look at whats coming up. Thank you very much. Coming up at the top of the hour i hope you join us for power lunch. A special edition as we dive deep into mylan. The ceo firing back over the epipen price hikes. Did she make her case. She pointed fingers left, right and center, middlemen, lawmakers and congress and they are firing back. Senator Chuck Grassley will join us and what role did managers have in the high prices of drugs. Those stocks taking a hit this hour. Halftime report back after this break. The Halftime Report is the place for market moving interviews, really money and really debates. People think that globalization has hurt businesses. Its technology that hurts businesses. Your Business NeedsBetter Technology to drive better performance. So you need it to be reliable and fast. Really fast. Introducing the comcast business Summer Savings event. Fast Internet Speed to drive performance, plus cutting edge wifi for your employees and customers, and voice mobility so your calls find you wherever you are. Get some of our most advanced products at a great price with over 500 in savings. Call today and ask how to get these savings plus a 250 prepaid card. Comcast business. Built for business. Welcome back to the Halftime Report. Copper hitting a twomonth low today. Jackie deangeles at the nymex. Hi, jackie. Copper taking a tumble, a little bit more than 1 decline today. Sometimes copper speaks to the broader market. Scott, what is troubling copper today . Well, you know, its up a tiny bit right now, but thats because of easing that we expect from china. But that explains why the last two months have been so horrible for copper. Its because the fundamentals are terrible. And over the past week, its gotten even worse. It seems that copper, gold, and crude oil all expect ms. Yellenyellen to be really hawk in. Its now below all the relevant moving afternoon. S, and with a relative strength index, which describes momentum at 35, we know that its not yet oversold. Bob, does it stabilize here or do we go lower . Well, it looked for a while like it was forming a bottom. Copper, as you mentioned, kind of has a ph. D. In global economics, but that relationship has kind of broken down. Copper has really been at a down trend since 2012, and its not predictive the way its been. At the same timeframe, s p is up 61 . I think the issue here is that theres more downside to go, as scott said. Im looking for copper to reach 203 in the next couple weeks. Check out the online show at the top of the hour. Were talking to zev spiro about where oil goes from here. Dennis gartman is talking to us about gold and bonds. Thank you very much, jackie deangelis. I turn to our own doctor here on the set, dr. Weis. What do you say about copper . Look, i think copper is responding to two things, which is china is still very, very slow. I still believe that they have way too much debt. Its a house of cards, and things arent as rosy as some believe them to be, number one. Number two, a stronger dollar, which i believe will continue to get stronger in these commodities all trading dollars. I think what has happened since 2012 is that weve seen such a transformation away from tr bulk economy. Copper is part of that bulk economy. It decelerates on any chart that youre looking at. Same thing for copper. But the economy has shifted. The s p has obviously appreciated significantly, and that is because we are becoming more of a software and Services Type of economy, and were trying to understand. Its not dr. Copper anymore. I think jim points out properly what it should be referred to, and that would be chiropractor copper. I dont want to offend any chiropractors. But you just did. Making the distinction. Not a doctor of copper. It doesnt have a ph. D. It has a masters. Copper was a major Financing Mechanism for the chinese economy, as it was inflating. Now on the reverse side, the chinese have cracked down on that, so copper keeps bleeding into the market. We all appreciate chiropractors here at cnbc. Absolutely we do. I need them. Just about three hours to go until the market close. Weve got your final trades ahead. Halftime report is right back. Im 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 thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. [announcer] is it a force of nature . Or a sales event . The summer of audi sales event is here. Get up to a 5,000 bonus on select audi models. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Fast break time. A lot happens on the show here during the Halftime Report, but a lot happens in the breaks, too. I think you cant conflate this epipen is a very specific thing. I dont think we can compare that to hypothetically ill pick a name out of a hat. Pfizer suiten. Costs 135,000. As was macys. I didnt think it was a good quarter. About 20 . Macys, of course, has a much higher yield. People say, well, just take public transit, doc. Im like, i do all the time. If there were an l out to laguardia, or met ra, metro, whatever, the subway system here, id take it. L meaning elevated train. Weve been getting a lot of tweets. Why is dr. J always late . Now you know why hes been late. Hes been looking for the l in new york city. Its the airport. Oh yeah, the laguardia construction is a nightmare. Thats why. So now im either private or into newark. One or the other. Only you would know. One or the other. I want to get back to some of the stuff we were talking about during the breaks. Youre mentioning whether or not you impute mylens woes to the rest of health care. We talk about how it is an impact on health care in that it is in the health care etf, so if mylan falls it has a pressuring effect on that etf. How do you separate that as a Value Investor . Somebody who looks at fundamentals. I think if youre looking at mylan right now, you have to realize that for the next week, two weeks, maybe three weeks, its going to be ground zero of this debate. In my eyes, you stay away from it for that reason. However, looking at the other 97 of names in that sector, theres going to be value there in names that get beaten down in sympathy with whats going on in mylan. Every one of us knows that this is the Election Year cycle. This happens every two years, that all the beating goes on of the biotechs and the pharmas and it really doesnt amount to anything. So look for the opportunities outside of mylan to get some value stocks in there. One of those opportunities i think would be amgen. I also think the pbms are going to have to come out now. So they will be under pressure as well. Well, they are under pressure. Look at cvs. Down significantly. Express scripps as well. Theyve got to talk about this. Lets get to the second half trades. Dr. J, why dont you kick it off. Sure. Baba. Alibaba, very strong activity in this one, mel. The 94 calls in september all the way up to the 100 calls, actively purchased 3to1 calls versus puts. I got into some baba today. Jim. Cisco system. It fell off a little bit after its earnings about two weeks ago, but now its steadily climbed back, and frankly, its less than 10 from a tenyear high, around 34. 5 a share. I think it continues to crest up towards that. Steve weis . Look, im sitting on my hands. I think that yellen is going to be slightly more hawkish tomorrow, so if you want to do anything, maybe take a run at the banks. Theyve been acting well. Joe. Buy some volatility. That does it for us on the Halftime Report. Dont go anywhere. Power lunch begins right now. Melissa, thank you very much. Good afternoon. And welcome, everyone, to a special edition of power lunch. Mylan under fire. Im tyler matheson. It is the story that everyone is talking about, and no wonder. Whether youve never heard of an epipen or never owned a share of mylan stock and never will, youve got a stake in this story, and that is because it goes directly to how lifesaving drugs get to market in america and whether the fda and congress are doing enough to make sure they do. And fast. It speaks to the byzantine ways drug prices are set in this country. A process that involves manufacturers, insurers, and an almost