Level since july, and on some levels the british pound falling to its lowest level against the dollar in decades. Could this Dollar Strength ultimately be bad for u. S. Stocks . Kate moore, what do you think . One of the things we were excited about in the second half of 2016 was the lack of the headwind from a much stronger dollar, and here we are getting a little bit of appreciation. I would note that the trade weighted dollar, not just the dxy index, actually still significantly weaker than at the beginning of this year. I think speculators got turned the wrong way. From a positioning standpoint, i think everyone is getting back to what their thesis was. I do think ultimately it could be problematic. It could be problematic in a couple of areas. You would like to see a cheaper dollar. The rate of the increase is also problematic. Then lastly, whats the impact on emerging market currencies which well see outflows and well not well have a deappreciative affect on their currency. Dont we need to clarify what were talking about here . This is a multinational corporation, and your cfo is watching the dollar. If you are a mid cap that invests 100 directly in america or all your revenue, isnt this a positive thing . It can be. Depends how far this goes. When you think about positive, i think about it in terms of trade. Even if you are a domestic company, youll have some exports, and it makes you a little less competitive. Is it going to continue going higher . I just dont see an aggressive enough fed. Yes, we think theyre going to raise in december, but we dont think theyre going to go on some massive rapid rate hike campaign. Absent that i dont see enough imp impotus for the dollar to go much higher. Both jim and joe mentioned pace as far as, you know, how fast queer about going to see Interest Rates going up. Which i agree 100 . People were saying, look, we barely think we can handle one right now. What im more concerned about is growth. Not the dollar. I dont think if the pace is slow, i dont think the dollar runs away from anybody here. I have argued that maybe weve already had a rate hike indirectly. Its already built in. I like where you are going. Were on the same trend. Im picking up what you are putting down. Im going to give you investing ideas. Im not as worried about the dollar. You talk about pace. Jim is talking about, oh, yeah, its going to have some effects. I think the most important thing right now . Earnings. What really isnt that going to smack oh, by the way, tech seemed to do well as well. Now all of a sudden were in the same position. Its about financials. Can tech continue . You look at the chips. We talk about how they look lofty right now. Is there a selloff there. Were going to hear from jp morgan and city on friday. That is as marketmoving as anyone i think in front of us right now. Why are we yelling . We yell a lot. I can do that. Ear wax. Tons of earnings, though. I dont think youll see the impact here because of the u. S. Dollar ridesing in the last couple of weeks. Its you know, youre reflecting back on what happened in q3. It is going to impact guidance. When we talk about earnings, thats really important. Who is going to be able to provide strong guidance in an environment where you have a strong dollar and then you have the excuse. The excuse not just being weather, but you have. Unfortunately, the majority of stuff we buy in america is made somewhere else. Doesnt that provide an equal discount to the u. S. Consumer. Or if walmart buys go for a penny or two less because of the currency conversion and doesnt lower the prices, thats a little extra profit in their pocket, is it not . Youre right in theory, but in practice over the last couple of story of my life. Wrong in practice. I wouldnt say that, but just on this particular top ek, if you look at the last two years, youve had Dollar Strengthening over most of the last year that has not translated into in terms of stronger consumption here in the u. S. You know, certainly look at the affect that it had on oil going back two years ago. Oil is down 50 over that time frame. Thats supposed to be a tax reduction on the u. S. Consumer, but it just hasnt shown up. The problem here is aggregate demand, not just in the u. S. , but globally. It appears that theres more saving going on. That takes away the affect that you are talking about, brian. Look, i want to go back to something that jim mentioned. It was about the midcaps. The majority of they are sales are in the u. S. Thats just simply not true anymore. Over the last 15 years more and more of the sales of small and mid Cap Companies come outside of the u. S. And more of those companies are part of the Global Supply chain. They are affected in the dollar that affects the neglecta cap. I would suggest nothing is super cushioned. If we have a huge amount of appreciation, it will affect the way that companies are willing to take risk. If we had a huge appreciation, it would give me pause. Over the last three months the s p 50000 down a half a percent. The midcaps down. The midcaps have been hurt more than the larger caps, which will supposed to be more dollar exposed. Well, and the point you were talking dollar or any foreign currency, brian, one of the things i bet kate would agree with is when you put volatility when you inject volatility like we saw in the british pound, when you see that and it fell, you know, arguably depending what chart youre looking at, down to, like, 114, 115, took the british pound to the dollar and then right back above 122 and today its 123 to the dollar. That kind of volatility impacts trading volumes and direction in the market. People are seeking safety when Something Like that happens. Lets go down to the other side potentially of this trade. The emerging markets. Many of the emerging markets are on pace to break a fourmonth win streak if their losses continue. The massive eem etf which is really just a proxy for most of asia, down 2 over the past week. Kate, you still like many or most of the emerging markets. Yeah, were constructive on emerging market ek kwitsd. That is a medium call for us, and its not just based on the dollar view. Certainly a stronger dollar was a headwind forg markets as was the fluctuation in oil spriesz prices, but were also seeing significant macroimprovement, structural adjustments that we think are very constructive to growth. Earnings looking at about6. 5 g. In some cases a significant discount on a price to book basis to developed markets. We dont think sentiment is there in terms of being bullish. Looking at positioning in our view, theres a lot of room for people to get back to neutral from the underweight theyve had the last few years. I like to ask this from people that have emerging markets is such a big broad brush stroke. Right. Theres various pockets of it. About twothirds of that and growing. It comes from asia. Thats where were seeing some of the best reformmomentum, right . We also feel encouraged by some of the Structural Reforms in brazil and across latin america, and were looking at selective opportunities in countries across i would say emerging europe. When you are talking about Structural Reforms, i have to ask you about india. Thats the Sleeping Giant that if they get they get it right thats right. Thats the place to be. When will that happen . Well, weve made a little progress in the last few months. Postelection there was a huge amount of optimism. The market ran up. They are not subject to the whims of the commodity market like china. Yes, the per capita income is less than china, but theres one thing that india has that china does not. Western rule of law. You can enforce a contract in india where its a lot more difficult to enforce a contract than china. Im generally prepping for when is that . However, that being said one to three. When you are allocating to the emerging markets, india has disappointed recently, so the question becomes are you going to allocate towards india . My answer to that is obviously yes. I would say to kate, i would look at brazil and say, okay, weve made a nice little rebound here. Lets ring the register on brazil because what you highlight im not necessarily sure if you see the same type of economic structure in brazil that you can see the opportunity in india. I need a lot of good news priced into the brazilian market, and the expectations that were going to see significant Structural Reforms. It does look like were turning the corner after multiple years, some could argue decades of gridlock and poor decision making. I do understand that the market has completely rerated. We want to be cautious on putting huge amounts of new money into any market thats done that. Another sector on the move. Health care and biotech. The ibb biotech etf down nearly 6 this month. The group under pressure on dismal drug results, and some bad earnings. Meg terrell is here to break it all down for you. Hi, guys. Yesterday was a tough day for health care and the ibb. If you check out health care more broadly, down 2. 5 . The ibb down almost 4 hers. This was the worst performance since june for these two sectors. Bristolmyers earlier in the week losing in the lung Cancer Battle to merck. Worrying some people. Really a lot of people are talking about the election. Not necessarily Hillary Clinton winning the presidency, butter down the ticket the potential that the democrats could take the house. I was just emailing with jeff borgus talking about how any sort of increase in the concerns among investors that democrats could take the house is really weighing on things. Essentially if you look here, this is something that amman jabers reported from the cook political report. It still looks tough for the democrats to take over a House Majority 17 seats up for grabs here. Still wouldnt get them. Even if they got all of those seats. Wouldnt get them to the 218 seats that they need for a majority. Still, this is really weighing on sentiment in the space according to some analysts im speaking with. If you take a look at some of the tenants in Hillary Clintons health care plan, these are the things that worry investors the most. First, the ability for medicare to negotiate drug prices. Congress, of course, has to approve that even if clinton is elected president. The importation of cheaper drugs from other countries. Shortening the exclusiveivity on biologics from 12 years to seven years. And a requirement of certain levels of Research Investments for companies that get tax credits for rnd and benefit from government support. These kinds of things are weighing on the whole sector right now. Anybody have a quick comment . Biotech generally, specifically . I would put it right there with the british pound i spoke of a moment ago, and that is when you inject when theranos goes from a multibillion Dollar Company to basically bust and when you have illumina and bristolmyers both having problems, you are going to see, you know, spillover affects, and thats exactly what you are seeing here. Whether its as meg said, the political aspect of it as well, okay. Could be. I think these others are bigger weights. I just want to emphasize the point, if the democrats take both houses of congress and the presidency, that is really an armageddon scenario for pharma and biotech because then price controls can and will be pushed through. You really have to be hoping for gridlock. You really believe thats going to happen. The odds that the democrats will talk it up because it serves them well to do so. The events of last week has thrown disarray into the congressional elections. There are a lot of, you know, seats that are being competed for where republicans are really backing and filling here on their support for trump. Its more its not likely, but it has become more likely than before. Okay. For more on how to trade the biotech selloff, were joined by senior biotech analyst chris raymond. Your take on what meg just reported generally about whats happening recently and where you see specific ideas, pete najari najarian, specific stock ideas, right now . Thanks for having me. Generally i think i have to agree with meg. I think right now the sentiment, at least over the last couple of days has very much centered on the election and the calls that im getting are absolutely as meg described. A lot of folks are worried about what happens with a Clinton Presidency and also with a democratically controlled congress. I this i thats what got everyones attention right now. Any names that you see specifically at risk, chris . Well, yeah. I mean, i think we got to sort of maybe step back, maybe take a deep breath and think about exactly what could happen and, you know, not to get too wonkish with all the specifics of policy, but the one thing that seems to be the most sort of doable and politically feasible is to extend medicaid pricing discounts to medicare patients. That seems to be the most expedient. I heard one of the folks earlier just mentioning, you know, price controls, says and i think mechanicnisticly thats a scary concept, but theres really no mechanism for that. You know, actually where they can control it is extending medicaid discounts. I guess what weve done, weve done a decent amount of work on this, and look at the companies that have Medicare Part d specifically exposure. Most of our companies have less than 30 of their revenues exposed to this,ing and under an armageddon scenario where you do see that discount extended, eps impact is in the Single Digits for almost all of the commercial biotechs. Specific names we would like actually on the pullback are names that are growing mostly on volume and have limited exposure to this. Elexion being one and celgene being another, and another one thats up on m a rumors, but is actually lower than it was when they had a particularly important announcement on a pipeline drug is biogen where. You think biogen is a takeover target . I think theres a lot of smoke to that, meg. You know, well see. Theres been some behavioral differences by the Company Since all this stuff came out. Is there something going on . Yeah. This could be a multibillion dollar drug. If you look at the stock, its lower today than it was the day before they announced, you know, the trial and the intent to file early. Chris raymond. Hey, chris, a pleasure to have you on. We appreciate it. Thanks, guys. Heres whats coming up on the Halftime Report. Samsung slashing its profit outlook after pulling the plug on the note 7. But not everyone is running from the company. Plus, amazon is launching a Music Streaming Service and going where no other company has gone before. Weve got the details. And beats and misses. The names that could hit it out of the park this earnings season. And the ones that could stumble. That and more ahead on the Halftime Report. When legalizing safe, responsible adult use of marijuana, the most important question is how . By voting yes on prop 64 adults 21 and over could only purchase marijuana at licensed marijuana businesses. And prop 64 bans advertising directed at kids. Requires strict product labeling. Childproof packaging. And bans edibles that appeal to children. Smart provisions to safeguard our families. Learn more about the safeguards at yeson64. Org. It is hits so samsung keep coming. All of this permanently ending production of its formerly popular galaxy note 7 smartphone. Deert are a joining us now with the details. Deirdre. How much will it cost them this quarter alone . The final figure kwoob much, much higher. 17 billion in lost revenue by some estimates, and the potential for billions more if samsung is slapped with fines or lawsuits. Not to mention, the damage done to its brand and reputation. Meanwhile, reports are surfacing that samsung still has no idea why the galaxy note 7 keeps exploding and that investigators suspect a totally different battery flaw than the one that caused the recall. Still a lot of questions. All the while, i should mention we have not been able to get any kind of update from samsung itself. Now, if this is an indication of potential mismanagement or a wider problem, that could hurt other parts of the business, like its component business that has been an important and growing source of re new for samsung. That does all sound pretty dire. I do want to mention the other dooms day. Samsung does have 69 billion in cash. That is plenty to absorb these costs. It is still expected to remain the largest smartphone vendor in the world for the full year. Those are some points that are not lost on citis henry kim who says that this problem is simply a hiccup and suggests buying samsung on dips. Back to you. Deirdre, thank you very much. Lets trade it to samsungs pain does it translate into apple or googles gain . Or, d, none of the above . I think its a no brainer, and its radio he flekted in the markets that this is to apples gain. Samsungs demise. Of course, we are entering this circus manufacture like phase of this whole story, where you are starting to hear sfoerz e stoerds like samsung washing machines are exploding. I think its the sign that maybe this whole story is going a little too far, but, look, whether its 17 billion in lost revenue or ive heard estimates that this will total 10 billion in costs, i dont care how much samsung has in cash. Thats a huge hit. You know, i do wonder, though, guys. We say, oh, samsung and apple. Samsung and apple. I dont know about that. We all probably have other own ecosystem. I dont know if its iphone or android. I wonder if this is a google story more than an apple story, pete. Yeah. Because it actually came to me. If you are i really dislike one of the worst in the network. If you are in the ecosystem, i dont know, is this going to make you switch . Its a great call by you, and i agree 100 . I think this is decent for apple. I dont think this is huge for apple. I think its much better for google because theyre coming out with that new phone. Either you are android or not. If you like that operating system, then zroo there will be a few more that come to apple. We have the 7 and 8 coming out. I tell you what, thats why you are seeing the move in the stock, but thats just a little part of the move. The other part is the fact that this iphone 7 is much better, fast are, battery life is better. All the things we talked about beforehand are coming to fruition now. Do you find it some weird sort of confluence of the universe that literally google unveiled their first new phone ever and worked out pretty good. Basically the same week that samsung phones are exploding all over the place. Not that long after the launch of the apple phone, the apple 7, and everybody is getting so excited about this thing, and when you look at what they do within that phone, john has one. My son has one. I do not have one yet. Its unbelievable. Youll know in a couple of quarters whether or not theyre able to google that, gather momentum from this. Im skeptical. I dont know necessarily if they will. You introduced those customers to a new platform, and those customers are not leaving, and its further strengthening apples position. Could be good for google. Obviously its gooed for apple. Ill tell you what, for samsung, i dont care if its a 69 billion in cash, theres more to come on this. Theres the possibility of litigation. I know. Bizarrely, samsung in korea you dont step in. Its still up 21 3e yeartodate. Theyre making excavators as well as ships. Everything. All right. Lets stick with tech. Amazons plan to conquer your world taking another march forward. Its expanding its push into the streaming music space. Amazon launching a Music Service for less than 10 a month. Its just one day after reports the Company Plans to open grocery stores. Convenience stores. Yeah. Okay. Whatever. You think this is a good move for the company . I do. Basically youre reaching out to folks that arent prime people, that arent the folks that pay for that included shipping. Not free shipping. I think thats a positive. They might as well do the same with their movies, brian . They might as well charge somebody, you know, 5 a month or 8 a for that because theyre subsidyizing seems like they keep giving people stuff, but theres want a lot of the music thing is exactly free with prime or discounted deeply with prime. I wonder how is that 99 a year is going to cover all these things . Well, thats exactly why theyre charging like you said just under 10 a month for the music. Streaming music. You want it . Okay. If youre not a prime member, pay us 10 a month. That subsidyizes what theyre giving away to the prime members. It makes am zplon stronger. Were talking about real winners and losers when this coming to all Consumer Companies at this point. Those that are being innovative and thinking about how to grab Additional Market share or wallet share in every different segment, and those that are kind of stuck in a rut. I think this is a sect or where i would say consumer broadly, discretionary and staples, will see even greater disburz yon between the winners and losers. Argas Research Getting bullish on a massive Consumer Products company known as proctor and gamble. They upgrade to a buy. Starting to underperform. Is now the time to get in . We will debate that. Your call of the day ahead. Plus, the street overall getting bullish on seagate. Barracuda. Eriksson. The trades and those and more ahead in the blitz coming up. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound remember here at ally, nothing stops us from doing right by our customers. Whos with me . Im in. Im in. Im in. Im in. One, two, wait, wait. Wait wheres tina . Doing the hand thing . Yep we are all in for our customers. Ally. Do it right. Shares of Proctor Gamble up this year. Argus research thinks theres more room to run. Upgrading the stock to a buy, saying it has pruned less profitable brands and its taking steps to boost growth, profitability, and productivity. It is our call of the day. Jim, you have deep reservations about the valuation. I dont own the stock, so let me qualify it that way. I think arguss research comments are on the money in temz of this is a well managed company, but at 20 times earnings, i just dont see the growth even after the steps that argus says are being taken. I dont see the growth to justify that multiple. Now, this is a 3 dividend yield stock, and i think thats the only reason its gone up so high this year. The one pushback is in the article, what he was talking about in this upgrades is he said, look, this is a 22 to 25 pe. The fact that its trading on the lower do you believe it . Well, thats coming from the analyst. I have to take him at his word. When you look at that, and the fact that you get a and the fact that theyre buying back as much shares as they are, theyre theres a very shareholderfriendly type stock. I think because of that,ing if if you believe the valuation is on the lower end, and i have to believe it right now, thats why i do see some up side to this. I was with you. I thought it seemed high. Apparently its not. Its just on the multiple. The stock is at a slow methodical appreciation throughout the year. Most people have bet against that. If you look at the recent Short Interest for the dow jones industrial, rs youre looking at a stock thats in the top five right now in terms of most short. We take four days to cover. No one plooefz the story. Everyone looks at it. They look at the yield. He this think its a chase for yield. He this see Consumer Staples overall with a rich valuation where are i think most people dont recognize the stock specific fundamental benefit in this company. This company is making a turn. Its making an organic turn. I would argue this analyst is a little bit late because others have recognized the turn much earlier and slapped price targets in the i do find it unusual to talk about p g on Halftime Report, with all due respect, because this is not a trading name, is it, john . This is a stock whose a 26. You buy it, and you give it to your children, and they give it to their children. You collect a dividend and buy tide and move on. With the slowdown weve seen in gdp, where every week were getting somebody downgrading the outlook for gdp, and im feeling that from some of the bigger institutions that we call on, if rg, ip deed, that is a slowdown, no matter who is in the next president to joes point, we could be looking at lower numbers to the market over the First Quarter of next year, im exactly worried that a company that produces a product like tide where you can easily down shift to, you know, the generics for 5 less per 96 fluid ounces, i think that happens. Thats why i worry about valuation. All right. Interesting call on p g now. Lets get to sue herrera with the latest headlines. Sue. Hi, brian. Heres whats happening. There are still 27 days until the election. Voters in ohio are already casting their ballots in the president ial race. Early voting began today across the crucial swing state where more than one Million People have registered for absentee voting. Meanwhile, in florida a judge is extending that states Voter Registration deadline by one week following hurricane matthew. The request was made by Florida Democrats and the league of women voters. Republican governor rick scott had refused to push back that deadline. If you worship the lights of an indoor tanning bed, you probably are not doing enough to protect your skin. A new study by johns hop kenz university found frequent indoor tanners were less likely to use sunscreen or go for skin cancer screenings. And no pressure here, but the most wonderful time of the year is almost here. The u. S. Postal service wants you to be ready. The carrier announcing its Holiday Shipping deadlines today. Procrastinators will have until december 23rd using Priority Mail express to get their gifts there in time. Thats the news update this hour. Halftime is back after a quick break. Across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley make sure its ano make a intelligent one. The highly advanced audi a4, with available virtual cockpit. 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. As earnings season gets underway. Weve been closely watching changes. Founder and ceo is here with a big list off beats and misses. Good to see you. Thank you for having me. Lets start with the bad news and move to the good news. You really dont like Philip Morris here. Trades at a 23 pe. Thats 80 of the normal pe thats traded at over the last 10, 15 years. Theyve missed four quarters in a row here, and were seeing the estimateized consensus well below the rs numbers downward revisions across the board. Not a name you want to be in here the elevated pe numbers. Lee, energy. Had a nice rebound. Whats the expectation for the seconder . Were actually still seeing the buy side expectations the street hasnt taken it down to match the second drop in oil that we got. Weve seen a little bit of rebound over the last couple of weeks, but that wont actually be in the q3 numbers. We would kbp those numbers to be a little bit worse than the sell side. We also are coming off the base for energy which was an earnings to maybe less of a contraction . Were still going to see flat yearoveryear numbers coming up here. Weve kind of gotten out of that significant decline. Weve had kind of flat numbers the last, you know, quarter or so. That doesnt get the stocks moving too much given that oil has come back down. Lee, weve had some unusual activity, which is, you know, our bread and butter. Best buy, the stock has made a great mo its up 3. 5 . This against yesterday with a market falling apart, this one didnt. Now somebody comes out. Cleveland research, i think, today upgrades their target again. Almost doubles how much they think sales are going to grow. Do you see this . I know you had to list only the top two or three, but is this the top ten maybe . Across the board consumer discretionary. The consumer itself, you know, very healthy. We have seen electronics really take over from textiles, and thats an important piece. The iphone is drawing people in as well. For any of the accessories and anything else. People dont really realize how big this thing is and how much momentum is behind the business. Massive upward revisions throughout the quarter has a history of beating their consensus numbers. We really like it. By 75 or Something Like this. The other names are the Enterprise Technology companies. Hub spot is a relatively new company. Thats actually part of what we like about it. Its pa past that lockup period, and the sell side doesnt tend to upgrade their estimates or upgrade move their estimates up in accordances with actual growth expectations. The buy side comes out, and for thooz companies that they really like, were seeing estimates much higher than the street, and we really like to see it. Now, as im thinking about estimates for third quarter, i was looking at downward revisions coming into the start of the earnings season. Theyre kind of on par with downward revisions weve had in previous quarters. I am a little bit frustrated that were still seeing such a huge hole in both energy and some of the more resource sensitive sectors in industries. As we think about this, its not just about oil. Its about whether or not were actually getting disciplined. Snoo were getting signs that cap x intentions are coming down. Some of that due to politics. I want to see Companies Really have sustainable earnings. I want to have a turnaround by the fourth quarter. This will get us a lot more excited about the as elt dallas. I think its interesting when we look at that chart that basically shows out quarter expectations versus where the company has come in the last couple of quarters. Massive spread we want to see that come back in with normal. The problem there is if it doesnt come back in, market is going down. Where we let you go, gillead, why are you so concerned . The hepc drug is losing momentum there. The estimates are below the street. Weve been accurate with that one. Dont like the way the stock is trading. We appreciate your time. Thank you very much. Up next, the brothers najarian are working up a double dose of unusual activity, which sums up their every day lives. Unusual. Oh, barracuda. Shares soaring. Is there more room to run . Weve got your trade on that and more. The Halftime Report back after this break. S 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. Welcome back. Here we have the brothers najarian. They apparently have good stuff on unusual activity. Thats what look at selling. Thats what they say. What are he this looking at here . Seena. Take a look at this, sully. Nice it is run here. The stock is around it 1. It was down 90 cents earlier today. Then somebody stepped in and started buying calls. 22 stwriek out in january. What is that . Thats going to be a bull call spread. They bought the 22s. They sold the 26 calls. I am in these calls now. Ill probably be in it for im going to say, pete, maybe a month and a half, two months. I like this one. What are you saying . Im saying something neighbors. 9,200 of these traded today. They were bought. Somebody thinks its going to start moving to the up side here. Go back to that chart. Its had a great move already. Theres no doubt about it. You see how the oil is moving to the 50 strike. Im going to give you a quick update. Yesterday i talked about krogers. Im out of that trade. That went up about 120 and decided get out and about. Goom. Power lunch will bring you the minutes of the federal reserves last meeting. Theyre out at 2 00 p. M. Eastern time. Power lunch 1 00 p. M. Eastern. Cnbcs jackie deangeles at the nymex with the futures now crew. Skr jackie. Were watching yields very closely ahead of those minutes. Hovering around the 1. 79 level. What do you make of the yield climbing higher today . Is the Market Making an assumption about what these minutes are going to say . I dont think its really related to the minutes. I really think its bondrelated. The threeyear auction we had was nothing but neutral, and now technically speaking, youre at a breakout point for the yields on the tenyear brsh from a price perspective, its been in an upward channel. Would you want to be a buyer or seller at these levels . I would rather be a buyer where, if yields went to 1. 85, i would forget about it, ask then i might be a seller, but i think whats happened so far is japan has expressed less support for the long end of their curve because they wanted it to steepen. The kre bs has talked about tapering, and we are pricing in the fed tightening now, and several of the markets. A lot of things have happened that have forced the yield up. We have a contentious election coming up. It seems like the bears are in charge. I wouldnt be a seller just yet. All right. For more, head to the website futures now. Well be back with the online show tomorrow at 1 00 p. M. Brian. All right, jackie. Thank you. Well see you in power lunch as well. Ahead, Stanley Blackendecken buying newellfor nearly 2 billion. Both companies up on the news. More coming up in the blitz. Im here at the Td Ameritrade trader offices. Me move stuff, steve, og what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform gregates a the options data you need in one place and lets you visualize that information for anyoption. Okay, cool. Hang on a second. You can evenee the anticipated range of a stock expecting rngs. Impressive. Whats up, tim. Td aritrade. Impressive. Whats up, tim. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. Great, thats what i said. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. All right, lets hit our trader blitz. Walking through a bunch of different stocks. First up, barracuda networks. Cybersecurity space, has not performed well, up 9 today. This stock had a Strong Performance throughout the year. This is the third consecutive quarter where estimates are being beat. Difficult to recommend this name given the elevated valuation of trades out. But ill say stay in this one. Potential acquisition target. Also focuses on email security, which is very popular in our country right now. Staying in the name. Seagate raised at Green Capital and morgan stanley. Jon . Look at this one, and needham moving up their price target a day or so ago. Gross margins up to 29 . I think 27. 5 before. People are anticipating good things for seagate going forward. Ricsson under pressure today after warning of job cuts and falling revenue. They talk about the revenue, talk about sales, also talk about the profits themselves and you add on top of that the trifecta. They talked about the margins going down year over year. The stock is down. Low right now, i think you dont touch it, stay away. Stanley black and decker buying Newell Brands tool business, both stocks up. Both stocks have been up for a couple of years now. They have been on a good trend here. This deal makes a lot of sense to me. Tools belong to Stanley Black decker, not newell rubbermaid. Their attractively priced on an upturn here. I think you can own both of these. All right. There we go. Trader blitz. Three hours now until the close and we have got your final trades ahead. All coming up on the Halftime Report. Remember here at ally, thing stops us fm doing ghby ourustors. Im in. One, two, wait, wait wait wheres tina . Dointhe hand thi yep we are all in for our customers. Ally. Do it right. Mobility is very important me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. Anit keepsy vestment fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. Anit keepsy vestment fully mobile. Check this out. Lego, traveling back in time by releasing a beatles Yellow Submarine edition set of legos. The set comes loaded with the entire band and namesake submarine will also be released alongside an animated short film. Very cool stuff. Lets talk financials. The sector is only one of two sectors of the green for the past three months. It has done well. Kate, what is your take and is this all kind of a setup to the fed kind of move . Look, i think it is still a laggard year to date despite the recent performance. What we have seen is about sentiment and catch up positioning. It is still a consensus underweight. I think on the street people are very concerned not just about whether or not the fed will normalize and if that will have an improvement in net interest income, but also really concerned about Economic Growth. There is good news and bad news. We think the Economic Growth picture is improving. And feel quite encouraged. Not the 3 growth. But i think that will help people will that benefit the financials. The economy is better, does the money flow down . A sentiment game. The Balance Sheets are in good shape. We have met all the Capital Requirements and then some and about valuations. Valuations are cheap to the rest of the market, 30 discount, price to book for many banks, still below one. Does black rock have a view on the elections . We think financials will be in the spotlight whatever the outcome is. It is a popular sector for d. C. To discuss, whether or not youre a republican or democrat if you go full dem, clinton, dem senate, dem house, banks better watch out, no . In theory i agree with you. Clinton does have some ties to wall street and to the money center banks. So maybe not maybe not as dire for the pharmaceutical and biotech sector. But back to something you touched on lightly, valuations. This has been a stealth sector for the past several months. Money center insurers starting to move up. I think it could be a rerating of the stocks to go back to what theyre traditionally valued on, book value. So many of the stocks are trading below book value, below tangible book value. Underwater one and a half times. Thats not historically the way it is supposed to be. Perhaps were getting back to a normal valuation in the secretarier. I think for us to see a sustained improvement, over the next year, were going to have to see a repricing of economic expectations, fed expectations, and then the fear around regulation to dissipate a little bit. Lets get our final traits here. Now to the final trades. What is yours . Just hearing about amazon and thinking about all the deal chatter the last couple of days and negativity about why you would want to buy twitter, music makes people happy. Stay pandora. Natural gas has been on a tear for the past few months, far more so than oil. Up about 50 over the last couple of months. It is starting to show signs of a top. I would look to see natural gas come down to meet oil. Watching natural gas. Last friday, National Retail federation came out with bullish comments. That was that helped with gap stores and so forth. Best buy already. And fully disclosed there. I think youre going to see a better than expected Holiday Shopping season. Pete . Looking at mobile i. Is this all priced in . I think it was. I continue to think it was. I think why it continues to move to the downside, they keep buying puts and selling calls, this is a stock fully valued and not going to be valued again until we get under 30. Kate moore, thank you for coming on. Gentlemen, thank you for taking it relatively easy on me. Appreciate that. Reminder, we have got the fed minutes coming out in an hours time, but fine program called power lunch with the amazing melissa lee begins right now. Well see you lovely and talented mr. Brian sullivan in a few moments. Im melissa lee. The battle of the es. Earnings or the election. What is more important to your money now . Well debate that. Prison palpable, one prison stock higher. That name is ahead. And we are less than an hour away from big breaking news from the fed. The fed minutes out at the top of the next hour. Stick around. Power lunch starts right now. Melissa, thank you very much. Welcome, everybody, to power lunch. Im tyler