In the ek change of gunfire, one officer was shot. He was wearing a bulletproof vest. Apparently his injuries are nonlifethreatening. The other officer was hurt by glass shrapnel in the shootout. He has been taken to a hospital. The elizabeth mayor says that he was shot in the leg, but video that we have seen and pictures that we have seen and you are looking at the suspect right there laying on the ground in front of that green car, indicate that he may have been hit in the arm. Were not sure were trying to confirm that, but we do know that he has been shot. He is in custody. He is in a hospital. Two officers hurt, nonlifethreatening injuries. He, of course, rahami is suspected in the weekend series of bombings that took place not only in new york city, but also in new jersey. Police do believe that those are linked at this point. It is not certain whether or not he had any help, any other accomplices. Reuters is reporting that a family friend said that he traveled to he, rahami, traveled to afghanistan a short while ago. About a year ago. We should note that parts of his extended family are from afghanistan as well. Thats according to reuters. Thats what we know at this hour. We will get more as the new York City Police department and the fbi and atf plan to hold a News Conference. Well monitor that for you scott. Back to you. Thanks for that. Markets, as you know, havent been reacting directly to the news over the weekend or this latest news of the arrest of the suspect, but stocks are just about at the highs of the day. Theres the Dow Jones Industrial average. Up 107 points this hour. The s p and nasdaq are decidedly positive as well. Weve got the gang all here today. Jim levinthal, joe terra nova, sarat. With us from los angeles is kevin oleary. He lets try and pivot from what happened over the weekend and the news of the arrest to the news of the week when it comes to investors, the market, and i know what all of you are focused on as well. What do you expect this week . I expect hawkish language. I think some of the rise in financials in the last couple of weeks, whether you want to stay with the financials or not, well get into that in a minute, but i think some of the appreciation is atrit outable to the fact that we expect the Federal Reserve not to do anything at this meeting, but to talk about what they are going to do and indicate to the markets that they will be doing something in december. Let me also just say i think it was very surprising last night when you turned on the screen at 6 00 and you saw the s p eight handles higher. I think thats just indicative of the environment thats so difficult to understand right now. You would have expected or understood if the market had a more negative view. Especially hearing the price action last week and where we went out on friday. It was an ugly day. Kevin oleary, i know you are with us from l. A. Thanks for being here today. What do you expect . What are you doing in advance of what the fed may or may not do come middle of the week . So im trimming financials. I kind of agree with joe. This will be the if we dont get i assume no rate hike in september, but i think baked in is 25 basis points in december. If that doesnt appear, it will be the fifth head fake in this cycle. Those that are long with anticipation and its finally tied for financials to perform, they are going to lose 4 to 10 . Just like they did four times in a row. It just may be that were in a perpetual low Interest Rate environment, and this is a sector that is just going to continue to fibulate. Its a nasty little sector. I wouldnt be long here. You could really lose some money. Yeah. Theres some interesting trades to think about, jim, when you look at what the fed may or may not do, and financials have been kind of the place to be if you thought rates were going to go up and maybe now is the time to worry about that trade in case they dont move at all. Well, i think if you are in financials because you are expecting a rate hike on wednesday, you have got the wrong trade on. I dont completely agree with kevin. I do think that financials have had a very nice run off of the february lows, and they may have a little more in them. I just dont think that anybody right now is pricing in a rate hike on wednesday, so if it doesnt happen, im not sure i see that 4 selloff in the xlf. The big deal of whether it is going to happen or not, lets bring in former fed insider Richard Fisher. He, of course, the former president of the Federal Reserve bank of dallas. Richard, its great to have you on the halftime show. Welcome. Thanks. Let me get your opinion here. Whats going to happen this week . Does the fed move or not . I think joe nailed it. Theyll probably change the language. With regard to the footballs. One of the problems with the policy that theyve pursued is theyve been gutting the banks, the Net Interest Margins are nil. Insurance companies. State pension funds. Other forms of savings formats are really beginning to feel threatened and are in need of some relief. Having said all that, i do expect them to continue to emphasize the fact theyre going to reinvest the system open market account portfolio. They have 1. 1 trillion maturing between 2016 and 2019. The real key to monetary accommodation is what do they do when they roll over the portfolio and reinvest, and the fact that they have 35 of all treasuries beyond a fiveyear maturity, they have a lot to play with. Maybe richard they need to rethink the whole thing as former fed chair ben bernanke wrote in his most recent log. Maybe as he said you cant go home again. Maybe they need to rethink the entire exit strategy. They were talking about how much damage theyve done to the Insurance Companies and the banks. We saw an article in the big german newspaper last week about the threat to their Insurance Industry here. These are the savings media that most of the people, 90 in the united states, that have some money in the bank, look to, and for financial security. On the one hand i think theyre looking at the wrong place, by the way, at the fomc, the federal committee. They have their blinders on, focused on the two criteria. Employment. If you were in the room this week i hear you saying you would not vote to raise rates, even a quarter point at this meeting. I would advocate raising rates. I dont think it does much damage in the economy. It also gives breathing room to those key Financial Institutions that we need to be prosperous. I dont think theyll do it. I would have argued this quite a bit because as eric rozengrin, a dovish character but a good man. He is beginning to talk about the fact that we have sustained this financial double. Theres another aspect. Thats a byproduct of zero Interest Rates and negative Interest Rates in the case of japan and germany and elsewhere. It doesnt work. Weve been entertaining and hearing from some of the biggest investors in the world who say look with all due respect to views like yours, the market is not ready. Nor is the economy ready. Weve heard it from scott minor to guggenheim yet again today with a series of tweets that says the market is not expecting a rate increase in september. Youve heard from ray dalio at our own delivering alpha. You heard from timothy geithner. I think joe hit it right in his first comment, and thats to expect language to hopefully firm up and appoint the way to the end of the week, and i think thats about as much as you can expect. At this juncture, if i were in their shoes at this juncture, i would be supporting that. I dont think they have much of a choice. Its josh brown. Ed, who is a strategist here on the street and a noted fet watcher, said over the weekend that the u. S. Dollar being up 19 since the beginning of 2014 is the equivalent of a 200 basis point rate hike in terms of its affect on the economy. Do you buy that . Have we had a tightening in all but deed . We think of it in terms of market, youre right. Since we import more than we export and consume more, its a plus. That voice you heard trying to get in on the conversation was kevin oleary from shark tank, of course. Our resident shark who says the market is ready for a hike. I know you say theyre not. Maybe you guys can duke it out by settling. I wanted to ask richard. He uses the words gutting the institutions, but i look at it not just on the fact that they cant make money with the Interest Rates where theyre at, but we dont talk enough about the regulatory vooimt environment, which is extremely punitive. This is where the hardworking middle income this is where they look to to harbor their savings and feel safe and were gutting those institutions with policy regulation. The guys have to put money to work. All of the aum that you have. What do you do when you listen to comments from Richard Fisher and kevin oleary . I think the fed would say, hey, at this point lets not do it now. What i would be interested to ask a question is do you think that maybe after the elections they could go . They dont have to wait until december. You have a period of time where you indicate now you become hawkish like joe said and you can do it and you can set the tone from there. Does anybody at the desk think theyre going to go . If they do, you would be totally caught by surprise. Everything, everything in that environment is going down. Bonds, commodities. I think that would be the best, and that could happen. They do it. They reassert themselves. They stop talking about it afterward. We have a 10 corruption. I hope they do. Richard, do you think the fed is too dependent on how the market reacts or what the market wants the fed to do. Thats been the narrative for months. I think the you have a reverse. The market is too dependent on the fed. We dont have strong earnings. We have modest growth. Economic growth. Its fed, fed, fed, central bank, central bank, central bank. Agree. This is the problem. These low rates and zero Interest Rates have underwritten a massive pricing of the market relative to underlying value, and i think its the other way around. Not the way you stated. I mean, you know, look, im not surprised you maybe would take that opinion, but respectfully when the fed has said that theyre thinking about doing it or at least led us to believe if the market has had a fit or a tantrum, the fed has backed off. I worry about that. We talked about that while i was there. You mention 10 . We talk about 10 to 30 . Does it affect the real economy. We had a correction. No real impact. We had a correction in 1987. We had a correction at dotcom. No real impact. Weve had serious reversals. 37, for example. Its a year you always hear about. This is a debate that takes place at the table. You can have a correction that does an enormous amount of harm, and thats a judgment call theyll have to make. How many people in the room need to be disenters, if you will, or against the crowd. Is she a Voting Member . Shes always a Voting Member. Shes a g. The governors are Voting Members. The president s alternate nature. Shes not going to go for a hike. How many would it take . Well, typically other than when paul volcker was there, the recent chairs have really sort of gagged at three. Two is all theyll tolerate. If it gets to three, its very awkward for the chair. It undermines their position of authority and leadership. I dont think any chair really wants to have three disents, but i cant imagine them having three disenters on this. The markets have lost, i dont know, half their gains since we begin this conversation, richard. Im not responsible for the rest of the panel. And you. Well send you abill. Maybe the suggestion that the language is going to change if nothing else and its going to set us up for a hike this year that the market perhaps doesnt like and is never going to come to grips with. By the way, i dont think they would do an interim move between the november 1k3 2 meeting and december member. Imagine if they called a sudden press conference. It would be upsetting. It would lead to great volatility. You have to wait for the december meeting. If they dont move in september. Well have on to see what they contain. In 2007 youre in the room. You warned all of them about the Housing Market and the environment. If you were in the room right now, what would you be warning the Federal Reserve about . Well, what i was warning them about up until 2015 when i departed in march, which is we have excessive valuation relative or excessive pricing relative to pricing valuation and equities in bonds, and very importantly, in the way weve drichk down cap rates or they have driven down cap rates in the real estate area, generally speaking across the board, there was news today about how their investments are flowing into commercial real estate that the banks just wont touch. The banks have been dpfairly lenient on this front. I think theyve got to figure out a way to deflate this bubble without creating the kind of volatility and correction that comes back to bite the economy on the rearend. Im along the lines of what my dear friend said who was a late convert to my views, but i think he has it right. He may be he is making the front page of the journal. Money and investing section today. He questions how much of a dove he is remaining. He is a good guy, by the way. He came out through the regulatory and supervisory side. Yi appreciate the conversation. Its our maiden voyage. Im glad youre on the ship today. As an oel navy man, i aappreciate the analogy. Kevin, you know, part of this move in the market and maybe more substantive than some of the things that Richard Fisher had to say in this conversation about the fed, apple is losing a little bit of steam and maybe that is hurting the dow as well. The overall market was really coming down during our conversation. Weve been asking you, are you going to get back into the stock because its had this incredible run. Some say too far too fast. I just want you to get ready because were coming to you next. I want to find out if you want to get back into it or not. Thats a teaser there. There are shares. Our own steve weiss has been saying the stock was going to soar. Were going to see what he is doing next with his shares on the halftime report. Every great startup begins with a simple idea. But with growth comes complexity. Thats why so many innovators are on the ibm cloud. Like refinery 29, with nearly a billion views a year. Or runkeeper, a training app used by over 50 million runners. Or Game Developers whose popularity depends on launching new updates fast. Helping to keep a companys success uncomplicated thats what the ibm cloud is built for. Helping to keep a companys success uncomplicated my name is jamir dixon and im a locafor pg e. Rk fieldman most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. Were back on the halftime report. Just had a conversation with Richard Fisher, who jo, josh, you think moved the market . I think so. It doesnt take much to move the market intraday these days. No one is trading in the middle of the day. At the margin you can move s p futures with an algarhythm thats programmed to pick up on speeches being given, certain cues being given by different fed officials. The jury is still out as to whether or not that actually works as a trading strategy, but in todays day and age theres a lot of it out there. This is man versus machine. Thats the conversation. Machine versus machine. Machine versus machine with man just standing in the corner like, help. Well, man reporting on it, i guess. Is that what you think this is . I think josh is very accurate and his naltsz analysis of whatn and how algas will work. Theyre intensify their attention. They know the liquidity is right now really not very many people are sitting at their desk willing to pick up the other side of that. You have an algo thats going to pick up on comments that are saying hawkishness, theyre saying valuation rich, then clearly youre going to see the type of s p future action that you have seen. Kevin, lets just say that Richard Fisher did move the market by suggesting that the language is going to become more hawkish with this meeting from janet yellin herself, and they are going to have a move in rates. You have made the argument that the market is ready for a hike. Wouldnt that suggest otherwise . I go back in history and look at fed hikes that are far more dramatic than this. It would be an extreme random outcome if they went more than 25 basis points. The reason youre moving rates is enhanced economic activity, which manifests itself to enhanced earnings just a year from now or maybe 18 months. It quickly resumes its climb higher. I dont think a fed hike is going to be a problem. The question is why are they doing it . Are they doing it just to show theyre still in control and then one and done . Thats not exciting. 25, even 50 bips doesnt change anything for financials. Financials are still the best way to trade fed hikes to the bull or bear side. Can you see nobody knows whats going to happen here. Everybody assumes its the worst is over, but the the return on assets for these banks are the worst ive ever seen in my investing lifetime. They are just brutally bad. Now on top of that, all the regulators hate them. Even the people hate them. Theyve been vilified. Im not excited about this sector, and i think at the end of the day you can outperform the market by being underweight financials, even during a rate hike because i dont think the earnings are increasingly going up with 25, even 50 bips. They used to be so big in the s p. Now theyre, like, in the dleague. I feel sorry for those guys. I have nobody on the other side of that. Im on the other side. I think using the terms banks and financials interchangeably presents a little bit of a misleading picture on whats going on. There are nonbank financials that are shooting the lights out in terms of earnings and stock performance. Take a look at a chart of master card. Stock just broke 1 00 this morning for the third time. Hopefully third time is the charm of 2016. This is not a stock thats dependent on rate hikes. Rate hikes would not hurt. Take a look at cme group. This is a financial. Its not a bank. Killing it right now. All of the volatility around Interest Rates, around currencies, benefitting cmes. I think kevin would agree. Lets separate banks that are desperate for some Net Interest Margin to come back versus other financials that are earning a healthy return on assets, returning dividends. There are two things going on here in the same sector. I agree. Yeah. Okay. Im sorry. Kevin, finish your thought. I agree. You remember, most people own the financials through some kind of index or etf. Most of the market cap is still a money set or banks. If youre a stock picker, if you can be a stock picker and get the financial infrastructure stroks like credit cards, says you will shine if you get it right. As a sector, its just going nowhere. Yeah. Weve talked about, you know, apple losing 1 or so, and were going to get to more of that. I know i do want and i know people do want your thoughts there. Lets talk about shares of a stock that is just exploding today. Sarepta after the Company Approved steve weiss owns the stock. He jones us now on the phone. Are you there . Im here. Im here. Unbelievable move, steve. 90 . I dont know if you are out throwing a party for yourself this morning as a result of this move, but what do you do with the stock today . More importantly. Well, i looa lot of nay saye. We had three firm that is were out there. Jeffreys just last week came out and said, hey, after farcus resigned from the board and was the main adversary, he said dont get too excited. This is typical of biotech stocks where its very, very dangerous for somebody. In fact, somebody like me who is not a scientist, who is not plugged in. If you recall, we had joe adelman come on the show. He writes perceptive advisors. We are invested, in full disclosure, in his hedge fund, and he is pure and simply the best out there and does the best work on it. The drug had been declined in terms of approval be the advisory board, and Janet Woodcock had given signals that, yes, it would be approved, and this is a drug that goes right to pediatric muscular dystrophy patients which is a very small subset of muscular dystrophy patients, but is sorely needed. The Big Drug Companies dont go after because there arent enough patients or revenues. She did the right thing. Its very, very encouraging to see that regulators can be sort of beaten by other regulators, and you can do the right thing. The stocks are working out. Its very exciting. I think it works from here still. Theyll get the market as soon as they can. There are some strings attached. They have to do a broader study and get it to the fda in two years. They should get it through. I know you are going to i know you are going to say i just answered your question when i asked you the next one, but from a trade school standpoint, if nothing else, stock pops nearly 100 , and yet, you only sell half. I am just curious how you get that thought into your lady not to just sell the whole thing and be happy with what you have made so far. Well, you know, i may be out of it. I want to digest it a little bit, and i may be out by the end of the day. I may be out by tomorrow. I like the way its trading here. I was hedged out, completely hedged out on the stock. Keep in mind, i have been in this since early in the year, says and im blunting my game somewhat. Thats an this is a binary result. Its a small part of your portfolio. No matter how good the work is, you still are rolling the dice at some point. This is just very, very unusual outcome. On one hand you just want to believe that, hey, this is going to cure a lot of people, and you have to believe in it. It can be 65, 70. Theres always that you request yourself by being a complete pick here because i actually own the stock. Not from the 20s. I own it from the low teens. I dont expect to be here forever. There are others. You know . You just dont look at one and say thats great. You look at the ones you lost money on, and its a total body of work. I appreciate you calling in, steve. I know you remain a believer. Im sure the ceo is as well. By the way, he will be on the five tonight. Great, great. You should tune in there. Hear what the ceo of sarepta has to say. Well see you later. Thanks. Next up, oleary on apples jump. Is he getting back in . The stock is down slightly today. It has a great run over the last week. Well talk about that next. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Thats why a cutting edgeworld. University counts on centurylink to keep their global campus connected. And why a Pro Football Team chose us to deliver fiberenabled broadband to more than 65,000 fans. And why a leading car brand counts on us to keep their Dealer Network streamlined and nimble. Businesses count on communication, and communication counts on centurylink. Mapping the oceans. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the global economy. And you thought we just made the gas. Energy lives here. We a Development New at noon. Gopro unveiling a drone. A new line of cameras. A cloud service. Josh lipton at their event in lake tahoe with the latest. Josh. Well, scott, we are here at squaw valley. The price 799 for the drone. That doesnt include the camera. It will be available on october 23rd. For investors the question is can go pro really come in here and take out established players like dji. You know, talk to analysts say that company, tremendous resources and great products. That consumer drone market is a 1 billion market by next year according to abi research. Woodman wants a part of that. In addition to the drone, woodman unveiling a new line of cameras, including this new hero five black. The price there 399. That will be available on october 2nd. Amongst some of the new features there, touch display. Voice control. Water proof 4k at 30 frames per second. I was talking to charlie anderson. Covers go pro. The question for investors, how much life is left in this category . Are there a lot of go pro fans around the world that still want these new cameras . Charlie thinks this new hero 5 black camera is the referendum on that question. Finally, scott, you mentioned this, and i think this is as interesting as the new hardware is this new cloudbased Subscription Service. Its called go pro plus. Whats going to allow users to do is automatically upload their videos, their footage and then access and edit and share that footage any time anywhere. The cost of that new service 4. 99 per month. Thats a big deal if woodman has really figured out a way to make just shooting and sharing that video much more seamless and easy and quick for users. A lot of questions for nick woodman. Were going to have him live coming up on power lunch. Well have questions and he will have answers. Guys, back to you. Look forward to that. Thank you so much. Lets move now to apple. Kevin oleary with the shark tank gang. Congratulations, by the way, on last night. You have a little hardware . I have it right here. Im so proud of this thing. Im sure you are going to take it everywhere. Congrats on that. Lets seriously talk apple. The stock is coming off the best week in five years. Jp morgan is overweight on the stock. They say theyre headlined today positive reaction premature. Whats your take on what the stock did last week . Has it moved you at all into the more positive frame of mind on the company . Well, the stock has had a fantastic move, as everybody knows, off its bottom, off 13 plus. Its still a wait and see story. Im in the wait and see camp. The whole idea of the 7 and the 7 plus, im hoping, if you are going to be a bull on this stock, will show itself in the next two or three quarters. It will show itself this way. The whole story on apple is can it diversify its cash flows away from 65 , 70 on the phone sales themselves into services, which are still under 10 . However, if you have seen the 7, its impossible to own that phone without increasing your plan in i cloud because the size of the photos, the data that you are using, the videos that you are taking are huge. Everybody i know that bought that phone has been forced to go back into their phone and up their Subscription Service the amount of capacity theyve got in the cloud for storage. Thats the bullish side of apple. When will you know if that manifests itself . Youll know in two quarters. I dont think youre going to miss a lot from here. I dont think the stock is going to make a big move until it shows itself that way. Thats the game. Thats the story. If they can actually get people to start spending really high margin dollars as a result of this new platform which is such a memory hog, pig, whatever you want to say, this thing is a beast in how much money it requires. Its not just about apple. Jonathan over at mkm, friend of the show, put out a great chart representing that today. How do you look at technology . I know some of the names like facebook you were uncomfortable owning at the levels that it was at and now its approaching 130. You look at technology and still see opportunity overall as a sector. I prefer the dinosaur tech stocks. I have talked that i have owned microsoft for a long time. Its a company that does everything right these days. Its moving into the cloud. Its paying a dividend back into the market, and thats really because its generating so much cash. You look at facebook, and i agree its executing so well, but theres so many stories of tech stocks that are darlings that never return capital to shareholders, and then when they fall out of favor, you get absolutely crushed. Basically when you own a facebook, you are making the assumption the Team Continues to execute, and it has no competition for the foreseeable future. Im just not in that camp. You can look through the names in tech and find ought kinds of companies that are paying dividends, and i think that will be the trend being your friend in terms of protecting your capital. I hate pes north of 25 times. They make me nervous. I dont care what sector youre in. Sarat. I agree with dennis. I think the idea here large cap tech, we own a bunch of it. We own intel, qualcomm, cisco. All of these 3 dividend yields, including capital, including microsoft. We do own facebook. I use that as a speculative play. I think by and large when you see where we are in the market, these are good stocks to own for the longterm. Josh brown, you agree . Look, i think its important to put the apple move in perspective. Over the last six days since it started running, you have seen participation throughout the nasdaq, throughout the xlk names. Ewe got 61 nasdaq 1 00 companies with a gain of 1 or more, and only 21 with a loss of 1 . Its a very broad growth stock rally, and i think whats really happening is in the first half of the year we overpaid for the low vol stocks. For the high dividend payers. In the second half of the year, literally starting the day after brexit that all changed. Now you are seeing Growth Stocks with secular stories unrelated to Interest Rates or slowing Global Growth take the lead. These are the biggest winners so far in the second half. I wouldnt be surprised to see that continue. Weve talked about names like adobe, invidia, ask then you look at a company like an apple. Its kind of neither here nor there. Its not really growing. Its returning the cash to shareholders. People have been skeptical on it. There have been multiple ways to win in tech, and perhaps that continues, but within reason. To kevins point, you dont want to look for companies that are burning cash at a tremendous rate and not returning anything to shareholders. Kev, its been good having you. All of that hardware. Go get some sleep, maybe. It was a late night. I know you dpiez. Well see you again soon. Thanks. Shark tanks kevin oleary joining us again. Our call of the day is coming up next. First, Brian Sullivan has a look to whats coming up on power lunch. Thank you very much. Coming up at the top of the hour, obviously a lot going on. Nick woodman will join us to unveil what they hope is their next hot gadget. Thats first on cnbc. Your small cap call of the day. The incredible role that technology plays in the war on terror. Halftime report, though, is back after this. These goofy glasses. Yeah. Well, we gotta hand it to fedex. Theyve helped make our ecommerce so easy, and now were getting all kinds of new customers. I know. Can you believe were getting orders from canada, ireland. This ones going to new zealand. New zealand . Psst. Ah, false alarm. Hey you guys are gonna scare away the deer idiots. Providing Global Access for small business. Fedex. Welcome back. Im sue herrera with breaking news on this still developing story. We have new video coming into our newsroom of Ahmad Khan Rahami that was suspected of planting the bombs in new york and new jersey over the weekend. You can see him on the stretcher. He is being loaded into the ambulance at this point, and he has been taken to a hospital. He is in custody. He was wounded. There are conflicting reports as to whether or not he was wounded in the arm or in the leg. That follows a shootout with police who found him not far from where he lives in lyndon, new jersey. Thats where they found him. He lives in elizabeth. That is him on the ground. Well continue to update the situation for you. Theres a News Conference coming up shortly. Halftime report back after this. They may want the latest products 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. Retailers meet their demands with more responsive retail models. Ones that transcend channels and locations, anticipate expectations. Creating new ways to engage at every imaginable touchpoint. Its a new day in retail, and together, were building the store of the future. Digital works for retail. Lets talk about how digital works for your business. Its what the National Debt could do to our economy. If we dont solve our debt problem 19 trillion and growing money for programs like education will shrink. In just 8 years, interest on the debt will be our Third Largest federal program. Bad news for small businesses. The good news . Theres still time for a solution. Ask the candidates for a plan to secure our future. General motors shares in high gear this hour after an upgrade to outperform at morgan stanley. Theyre up nearly 3 . The analysts behind the call, adam jonas, saying gm can remain relevant and profitable for longer than the market thinks. He is one of the first high visionary guys on the name to say what has been generally known that even if were at peak autos and auto sales plummet from here, the gm is going to make money even if auto sales went down to 11 million on an annual rate, which is nowhere near where they should go. Thats whats really moving the stock today. For me personally im interested to see if gm can actually hold this gain because there have been other instances where good news has come out like reported earnings last quarter and the stock just doesnt hold the gain. So far today its holding. Its close to the highs of the day. I would like to see it end there. Stocks up 9 in three months. Relative to ford, which is down 8 . Where it was last november, november was a 36 stock. It fell down to a 28 or something. You talking about ford or gm . Were talking about gm. It really hasnt rewarded anyone. I think listen, im with you on that where. If it wasnt adam jonas that wrote this note, i dont think the stock today would be getting the kind of it was the jonas bounce sf. You have to adam jonas has been very negative on this sector. He has been extreme to the point where he was kind of like these companies are not going to be relevant to the industry anymore, which is something that jim and i have argued continually that, wait a second, guys, you can have as many cars drive themselves, but the industry is built for 11 million to 12 million. Theyve said that. Nobody gives them credibility. Here we are at five times earnings and a 5 dividend yield with a ton of cash flow, and new products coming out. This is not the old gm. The market today, to jims point, no credibility at all, right . To either side. All you need to see in this name, it trades at five times earnings. If it went to six times earnings, which would not be shoot the lights out how that would be a 20 terz how do you get the multiple expansion in the stock. Thats the question. Talking are about the trapds formation be greater than the last 50. Regardless of how how quickly people convert their fleets,ing it remains the case that millenials are 30 less likely to have a drivers license than people their age even one generation ago. Thats astounding. Its going going to eventually p to less cars being sold. So thats why these stocks have below market multiples and to joes point, i have no idea what changes that equation. Casino stocks going lower. Well right now all our new plans come with no data overages. Well finally be in control. And were back. Introducing new at t plans with no data overage charges. Back on the halftime report. Casino stocks, there they go, on the move. Most of them lower. Nom nom nomura out with a new note. I wish jon najarian was here to have this conversation with us. Hes at the casino. Probably is. Hes been more positive on this, saying there has been a turn in mccounswn numbers. I think there is a turn. I think you want to dismiss the note or if there is a continued selloff, you want to use it as an opportunity. Stock is around 104. This is a stock that really over the last couple of years has had a difficult time. It is navigating a turn. I think some of the numbers are reflected from mccown. You, as jon pointed out, you saw positive numbers coming back again after the multiple quarter of not seeing that. Resistance was, like, 102, 103, took three attempts to get above, finally broke out. This looks like a retest of the breakout. If it can hold that 103, 104 level, and rsi cooperates, which so far, so good, probably this thing continues higher. I wouldnt throw in the towel because an analyst had a thought pop into his head. Just three hours until the market close. Final trades are coming up next. What powers the Digital World . Communication. Like centurylinks Broadband Network that gives 35,000 fans a cutting edge game experience. Or the network that keeps a leading hotel chains guests connected at work, and at play. Or the it platform that powers millions of ecards every day for one of the largest greeting card companies. Businesses count on communication, and communication counts on centurylink. [phone buzzing] some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. The suv that dares to go beyond utility. This is the pursuit of perfection. All right, final trade time. You watching the refiners today . Havent talked about them in a while. Why today . It daunz wns on me, they hav beenbu burgling up. You have phillip 66 and valero, but this is sector that has momentum to it. You cant build a new refinery. Joe, adobe. Adobe reports tomorrow, eight consecutive quarters of Strong Revenue and eps growth. I think that continues. I think this stock will accelerate. This is a name that has been long talked about as possibly being an acquisition target for some of the Older Technology names that kevin oleary spoke about earlier in the show. Josh, you bought mastercard today. Yeah, i look at mastercard and visa as two of the better financials. Companies that benefit from the woes of american express, forging new deals with costco that were once somewhat off limits to them. You see mastercard doing things with pay pal, becoming an exclusive partner on that platform. A lot happening in finance away from money centered banks. I made that point earlier in the show. It is important we dont throw out 13 of the s p because rates arent rising or might rise or wont rise or whatever. Youre watching the financials. Im watching to see how they separate themselves from the rest of the market, especially as we go to the fed meeting. Is it more likely they separate themselves which way . On the upside. Thinking there will be more of a hawkish given no rate comes, but you think they can go up with a hawkish tone and not a move . Yes, i do. What about the before we get out of here, bank of japan, thats incredibly relevant this week. Think about consensus expectations as it relates to the yen to depreciate, hasnt done that. One more point before we get out of here, someone has been saying is critically important. The relationship between stock market and oil, oil is up, stocks are up. Maybe thats the overlying reason why the market is positive today. And i do i said this before, i do worry that in a pullback, everything is going to go down this time around. That would mean commodities, that would mean some of the currencies that have been favored recently and that would also mean fixed income as well as equity. The stock crude Oil Correlation is ephemeral. Sometimes it exists, sometimes it doesnt. We used to have the dollar and oil used to actually trade as well. And now all those things all across the map. The biggest proof of that, go back a year and a half ago, oil was twice the value it is now and the s p is almost at record highs. Does it for us. Thanks for watching. See you tomorrow. Power starts now. Im melissa lee. Heres whats on the menu. Captured. Police nabbing a 28yearold man connected to this weekends bombings in new york and new jersey. We have all the breaking details ahead. Plus, the mind blowing Role Technology plays in tracking down criminals. And go pro sending its sights sky high with long awaited drone. Will it move the needle for the stock . The ceo joins us ahead. Power lunch starts right now. Im Brian Sullivan. Tough to focus on the dow on a day like today, but thats what we do. So lets get to it. Despite the headlines, stocks are a little
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