You have a strong Earnings Report and the stock sells off. What is the bigger message, perhaps, in this move today . I think facebook just gave you the green light to take a profit. If youve been long this stock for a while, and many people have, its become one of the consensus longs of Growth Investors and growth fund. Its a huge weight in all the passive averages and its very popularly traded at all the brokage firms, all the online Brokerage Firms released this data. Everyones been long facebook. If you have for a long time and your time horizon is short, they just gave you permission. Number one, 2017 will be a year of big investment for us. Thats code for, dont expect the same magnitude of earnings beats and Earnings Growth accelerations that weve shown you for the last couple of years. The other thing i thought was notable was that they talked about, look, at a certain point ad Revenue Growth rates to come down meaning theful ing th. Facebook and google have this duopoly over online advertising, theyre 85 , and theyre more than 100 of the growth in online ads. So at a certain point, you cant grow at the same rate you have. Theyre talking about 1. 7 billion users. There arent another 1. 7 billion waiting. So i think they gave you the green light to say, all right, ive done well, ive made money, now maybe i dont need to be long. Maybe the green lights, kevin, are in google and facebook are the tells as we ask the question at the top of our show today as to whether tech is really in trouble. Nasdaqs down seven Straight Days now. I dont think techs in trouble. I think advertisings in trouble. Last week, right here on cnbc, a new index was launched called the cnbc iq 100. A machine reads patents and assigns them to the companies. The theory being, if you have more patents, you are able to keep your margins higher longer. Guess whos not in that index . Facebook. Facebook does not actually have a lot of patents. Its built a massive platform its able to monetize through advertising. 2. 5 gdp growth next year, best case, maybe only 2, a very difficult time to glean more advertising dollars you have to domestic markets. So, unfortunately, what youre really seeing here is the company admitting its going to be hard when most of its advertising revenue comes from domestic markets to make these numbers. And i agree with this concept of, when you start signaling, were putting a lot of new stuff through the income statement, that never ends well. Just wondering, doc, is whether tech has gotten ahead of itself. The message of the market of alphabet, of facebook, and some of these other tech names that have had a really bad week. You know, apple was down 3 or so. You go across a whole array of wellknown Technology Stocks from chips to internet, et cetera, and theyve been hit recently, raising those questions as to whether this betterperforming sector is rolling. Right, and then you have some great earnings from like qualcomm today, just to throw that one out there, too. There were so many examples, judge, of companies that people were betting on, because theyre great companies, because they may unique chips like qualcomm, like nvidia, that have absolutely been on fire this year. And the question is, and i think you and josh started it at the top, when do you take some profits . Doesnt mean you have to get short these stocks. And i doubt that josh was saying that. I dont think he said that at all. I think hes saying, it gave you the excuse to take some profits. People are clearly taking profits in tech. As i said,s that daks been down seven in a row. Its one of the few places you have profits. Most of the s p sectors are up this year, but most are up less than 5 or 6 . Its not as though you have all of these areas from which to say, ive done well, election coming up nah week, fed meeting right after, i want to lighten up. Youll probably lighten up from your winners, thats human behavior. The big winners are in technology. Thats been the story over the last few years. If you werent in utilities and health care, you didnt make any money. So are consumer staples. The same thing the year before. If you werent in utilities or yielddriven stocks, you made no money. So how the markets met new highs, the churning has been underneath. A lot of its driven by the algo players. So microsoft doesnt deserve the valuation that it has. Sure, the new ceos improved some things. A lot of that was the groundwork laid by steve ballmer, because its impossible to change things at a company that quickly for the time hes been there. If you lose these leadership names. Lets say apple has come back, that starts to roll over, amazons earnings were a disappointment. That stock got hammered, alphabet gets sold off. What happens to the leadershspa large . Leadership finds someplace else to go. Well see it in bank stocks, in financial. Youll see pickup in trade dramatically. I think you mentioned this the other day, i agree. Well have the new brexit in er terms of the trading volume. Youll see this major rush for new highyield issuance, and that will drive the banks earnings again. I think thats not going to be sustainable through next year. Theres always a rotation underneath. Well see it in, also, youll see it in equities, but you know what, its not going to translate into trading profits. Ill tell you very quickly, where this money is rotating to. I think the biggest story of this week is whats happening in yields, in a steepening curve, the explosion of new creations for the t. I. P. S. Etf. There are stories about the base metals from a technical standpoint, now starting to break out, both relative to the s p as well as on an absolute basis. Youve got multiyear downtrends being shattered. Things like aluminum, zinc. These are areas that people have ignored. Were now talking about Health Care Costs skyrocketing, talking about gasoline prices higher. Labor, wage inflation, these are all new stories for the market and i think were see floegs, go to some areas of this market that represent a bet on higher interest rates. Lets get another voice into the conversation. Rich greenfield downgraded facebook to neutral back in july and hes with us live today from new york, right here in new york city. Rich, good to see you again. Thanks for having me, scott. A little early, i guess, gu correct. We were really concerned that growth expectations for the street, especially the massive beats that facebook were having, were really hard to sustain, and the reason we were concerned was looking at their shift to being more of a video company. And if you shuift to more of a video company, its really hard to see how you monetize at the same rate that youve monetized through the legacy news feed. And i think facebook is still working on what thats going to look like. And i think thats part of signalling the slowdown into 17. Part of the issue may be, i dont want know, were shares overcrowded . Andrew left of citron made that case. Its a Great Company, its a 350 billion company that everybody loves. Its still a great franchise. Its going to have a great business. Its going to have a Significant Impact on the media space. But as you look into next year, theyre trying to chase snapchat. Theyre making the camera first. Theyre basically making it, just what they did with instagram stories. Theyre going to try to create that camerafirst experience, which sounds a lot like an app i know called snapchat. Youre pivoting technologically and doing what happens because of the snapchat engagement. You have to go through technologically with the product. And you monetize it the way facebook has monetized historically. Thats going to be a challenge for the company to keep up this level of growth. Rich, its josh brown. So theyre talking about monetizing video and they seem to want to push more into this area. Thats not as high a margin business as what theyve been able to do on mobile advertising, et cetera. That requires like a lot of infrastructure investment. Maybe even paying talent. Should we be looking at this company now and start to value that part of their future earnings, like we would value a traditional broadcaster . Well, its a great question. I wish we had jimmy fallon on right now. Jimmy fallon puts his content up on facebook, gets tens of millions of views and gets paid nothing. The question is, like, how is how long is that sustainable for, as you saw with vine, if you dont pay the talent, they ultimately go someplace else. I think talent is very frustrated with facebook not paying them. And yet facebook having a 350 billion market cap. Theyre starting to say certain people little bits of money. But i think its a great question. They dont want to be valid like a media company, they want to be a tech company. The question is, how, exactly, when you get into, you know, four, five, let alone 30 or 40minute video, how are you going to monetize . How are you going to compensate the talent. And is the profitability going to look like the massive margins they get on their traditional business, where they really havent shared that revenue with creators. Rich, its a damned shame they have earnings. So theyre also damned if they do, damned if they dont, because theyve got to get into media, because they cant not be there. Because thats going to be the attraction ultimately for the user to stay there and be engaged for longer periods of time. Its a really important point that you just made. Theyve been so successful. The news feed has been this Printing Press over the course of the last several years. And its exploded, but now trying to pivot into the this business of video doesnt really have the monetization. Are they going to run preroll. Sheryl seems opposed to preroll. If you go into midroll, do you stop in the middle and say, were going to skip to commercial break for a few minutes of unskippable ads . Its not clear how you monetize longer form video the way theyve monetized in the past. Its an intellectual challenge right now. For someone watching now, maybe theyre in the stock and theyre going to stay there. But if you dont own it here, rich, what is the good entry point . Henry blodgett was on the last hour saying, you should celebrate their willingness to invest the way they are. Jim cramer earlier this morning said, and i quote, facebooks the greatest gross margin Free Cash Flow story of all time. Im not backing away from it one bit. So whats the right move . Look, everything has a price and a value. You know, we were huge fans of Facebook Stock for the last few years, up through july of this year. Were looking for a better entry point. Look, i think, were always reevaluating where to stand. And i think right now with numbers having to come down across the street, a lot of people trying to justify next years growth versus valuation, i just dont think the stock is a compelling mustown here. And i think therell be a better point to own it. Rich, thanks for joining us today. Well talk to you again, soon. The shares are down more than 5 , just around the lows of the session here. What do you do with this . One thing we didnt touch on that they brought up in the call, Facebook Live. Now, the Facebook Live model, its only a few months old, but ill give you an example. In the etf industry, every one of the companies, every manufacturer has gone to compliance to ask them, would they allow us to broadcast tickers and descriptions of new products on Facebook Live . Not one Compliance Department has agreed to do this yet, but this is a brandnew model to get to customers. And frankly, if i could do it, i would do it. And i think theres a model there where people like me get in there and advertise on their own channel, actually embedded with any information they can thats beneficial to them. And the platforms there. I tried a Facebook Live last week, just talking about Financial Literacy and families, 110,000 people were there live. This could get to my head. This is a big problem. Its youtube, but with a more live feel than a prerecorded video. Josh, how else can i get to my customers . Any other faster way than that . Halftime report, sir. You have by all accounts a great growth story. A juggernaut. The earnings were great, it reminds me of under armour, of the other day, where the earnings were good, its just they have a competitor. Their growth rate. You have to revalue but they take a break for a few headquarters. They dont have to exceed everyones expectations every quarter forever. Some of the Great Stories throughout history have said, all right, we need to pause here, to make some investment. No, no, no, thats the point im trying to make about the under armour. You just have to revalue, maybe, what the stock should be, based on the fact that the growth rate might not live up to the expectations that investors had. Major differences. Under armour is not the gorilla in the room. Facebook is. Number one. Number two well, theres google. Number two, facebook has executed flawlessly. Under armour, far from flawlessly. Coming off one good quarter of metrics. The prior quarters had not been so good. Under armour is much its valued more egregiously than facebook. And i dont know that facebooks egregiously overvalued. So im simply talking about the growth rate of a Great Company coming down and how investors need to revalue the way they think about the stock. I dont think so. I dont own facebook they told you that the ad Revenue Growth rate is going to come down meaningfully and theyre going to invest heavily in the business. And they should. And i applaud that. One quarter of every year, amazon tells you the same thing. Its called resetting expectations. Its responsible. I want to see them do that. If i own facebook, this would not shake me out of this. Rich said were looking for a better entry point. We would all like a better entry point. One of the places you do that is go to options and sell out of the money puts. But thats not the advice here right now for the rest of the audience. I would say, this was a significant beat on revenue and bottom line. Same thing they did back in august, beginning of august, when they had that quarter and the stock ran 14. This creates an opportunity let me right now start the institutional drum beat. If this big monster is slowing, time for a dividend. It started in the same way apple started Institutional Investor says, if youre going to slow this down and its not going to grow any faster than the economy, send me a dividend. Start today. Icahn versus zuckerberg. At least it stabilized. It could be much, much lower. I disagree. You should disagree. I would rather get my capital back sooner, before i die. Meantime, youve missed other stories that have returned capital if you had sold the stock. Youre going to give me google . I give you dominos, my friend. It beat it. As you can tell, i dont eat a lot of pizza, but thank you, anyway. You can get your cake and eat it, too. Follow me into the wild world of dividends, youll love it. Coming up, a man set to play a key role in shaping the next congress is with us next. Ahead of the Freedom Caucus, representative jim jordan is live in the battleground state of ohio. Dont want to miss that interview. Also ahead, a big list of movers today including qualcomm, whole foods, fitbit, and starbucks. More halftime in two minutes. What are you doing . Getting your quarter back. Fountains dont earn interest, david. You know i work at ally. I was being romantic. You know what i find romantic . A robust annual percentage yield thats what i find romantic. This is literally throwing your money away. I think its over there. That way . Yeah, a little further up. What year was that quarter . What year is that one . 98 thats the one. You got it nothing stops us from doing right by our customers. Ally. Do it right. Lets get out of that water. All right. We are back. I want to bring your attention to oil right now. Take a look at that, breaking below 45 a barrel. It is a fiveweek low. How concerned do we need to be if Oil Continues to go even marginally lower . Very youd need to be very concerned. Even though its good for, of course, consumers, weve always talked about that, and great for the airlines, great for truckers, who its not good for, of course, are some of the banks that have the debt out there. The guys that need to refinance, in particular, in the bakken and marcellus areas. But i think, judge, we should all be focused in on november 30th if vienna, austria. Thats, of course, the opec meeting. This feels eerily similar to two years ago, where oil was rolling over at 78 a barrel or 80 a barrel. Going into that meeting and no one expected anything and they didnt get anything, but the Oil Market Just fell apart. This is kind of like that. The 8th, election day, five days away if investors are not only focused on the race for the white house, but also the race for control of congress. John harwood joins us from ohio with one of the most influential conservative members of the house. John . Reporter scott, im here in lima, ohio. This is trump country, with a very formidable figure in the house, as you mentioned. Not just because he was a twotime nca wrestling champion, hes also the chairman of the House Freedom caucus. Very powerful block of republicans in the caucus and a lot of interest about where the Republican Party is going after the election and where the House Republicans are going after the election. Congressman, thanks for being with us. Good to be with you. You had a meeting yesterday that got a lot of attention of the Freedom Caucus. And everyones focused on whether paul ryan is going to remain the speaker if you guys keep the majority or not. Some dissatisfaction within the Freedom Caucus with him. Tell me about your meeting yesterday. What happened. I dont think everyones focused on that. I think everyones focused on who wants to be the next president. We want that to be donald trump. Thats what these folks are foxed on. They want donald trump to be the next president. They want republicans to rain up and down the ticket understood. So we can start tell the voters what were going to do, getting rid of obamacare, getting ahold of this ridiculous spending, putting in place policies that are conducive with Economic Growth and help with the wage stagnation that so many families have had to deal with the last several years. So thats the focus. Look, we have Conference Call with our boards when were on extended breaks. We thought with the lameduck session coming up and with what looks like now a great chance that donald trump will be the next president , the good policies we have to be enacted when hes the next president. We were talking about that yesterday. How much dissatisfaction there in the Freedom Caucus with paul ryan . We are not focused on that. Weve got five days. Weve got this major election. Whos going to be the commander in chief to have the greatest election but your nominee. Your nominee, donald trump, said a couple of weeks ago that paul ryan was a weak and ineffective leader. Do you think hes got a point . He was talking about the way that he kept his distance . The next five days, well be focused on what we can do to help 80 , 80 of this country thinks that washington is rigged against them, not standing up and fighting for them. Donald trump is giving voice to that 80 . Weve got to make sure that he wins so we can begin to do what needs to be done to help put this country on the right path and do what families want us to do. In fact, what we told them we would do when they gave us the privilege of serving. Thats what were focused and need to continue to stay focused on over the next five days. Mike pence, your former colleague, Vice President ial nominee good man. Who has campaigned here, gave an interview the over day with National Review and refused on three different times to say that he thought that paul ryan should remain the speaker after the election. Are you willing to say he should remain the speaker . Thats a question for down the road so youre not willing o say he should remain the speaker . Hes a good man and a friend, but were dealing with trying to get donald trump to be the next president of the united states. Youre not committed to supporting him right now . Im committed to supporting donald trump for the next president , thats what im committed to. I talked to one of paul ryan one of your colleagues and a friend of paul ryan who said the Freedom Caucus can deny paul ryan the 218 he needs to be nominated, to be elected speaker on the floor. And that he thinks that paul ryan will be welladvised if you keep the majority to declare victory right after the election, and say, i dont want to be speaker anymore, and step away. Do you think that is a potential scenario. You would have to ask speaker ryan. Again, i think what the American People care about. 60 of americans think theyre better off than their parents, but their kids wont be better off than them. When 60 of the country thinks that the American Dream is no longer possible for their children, that is a problem. Thats what weve got to focus on. Weve got to get a handle on this 20 trillion debt. Weve got to build a wall and fence so our border is secure. Weve got to get rid of the tax code and put in place a tax policy, a regulatory policy that lets Small Business owners create jobs so people can have rising wages and pursue the American Dream. Those are the kind of things we have to get rid of obamacare. Weve got a 27yearold son whos looking at his premium increase, a healthy guy, whos looking at so many families who have to deal thats got to be the and we frankly, weve got to restore equal treatment under the law. Right now, this double standard, where theres one set of rules for you and me, and yet if youre hillary clinton, theres a whole different standard that the Justice Department applied to her, thats got to go. And that will go when Donald Trumps the next president. Last thing before i let you go, and that is that i know what you dont want to talk about, but what im not hearing you say is that and im not hearing it from donald trump or mike pence either, that paul ryan and his leadership are essential to achieving the goals that youre describing. Youre not saying that it has to be paul ryan to leave this house and achieve these goals . Im saying that is a question for another day. That is a question for the House Republican conference. And that is a question that will be dealt with in due time. I think paul ryan is a good man, hes a friend. But that is a question for later. Right now there is one focus. Electing republicans on election day, making sure donald trump think about what the Justice Department did, where the subject of the investigation husband got to met with the attorney general just days before the subject of the investigation was interviewed by the fbi. They gave immunity to five people. Three of those five take the fifth in front of congress. When have you ever seen something play out like that . So that equal treatment under the law is a hallmark. Its fundamental to what this country is about. And when we deviate from that, thats a problem. Donald trump will not allow that to happen with his Justice Department. That is a huge issue. Americans are sick of the double standard. Thats got to change. Thats why were going to elect trump as president. Congressman, thank you very much. Scott, all i can say is, he didnt win the nca championship by giving in easily. You saw that demonstrated right here. John, i was going to say, maybe it says everything, in fact, that one of the most powerful congressmen on the hill was unwilling to answer your question, not to mention the five or six followup questions that you tried to give to the congressman, was unwilling to go there. I do think that that is significant. Paul ryan is someone who those of us who cover washington have assumed has got a strong grip over the republican caucus. Remember, he was drafted when john boehner was forced out of the speakership with help from people like congressman jordan. Paul ryan took over and we are not hearing a unbreakable commitment to him. Obviously, well see what happens after the election, if they hold the majority, we assume they will. But what happens is very much up in the air. And what paul ryan chooses is very much up in the air, because this is somebody who if donald trump loses, may want to run for president himself, scott. Good stuff, john. Thanks so much, john harwood live for us today in ohio. So, the lack of answers notwithstanding, when you look at the makeup of congress, how things could shake out, but the way that the market is trading now in this creep up to election day, its just clear to me that nobody wants to take any kind of bet one way or the other. Look at the activity in the mark. I dont think volume is doing much today. You could see the dow is, what, up six points. People are sitting on their hands, waiting to see what happens, because its still unknown. Why would you . Youre within the margin of error for the polls. Forget about brexit. Brexit is not comparable. That was a concept that most people as the survey showed afterwards didnt understand. This is more black and white. Do you like trump . Like hillary . Hate them both . Whatever. But its also the aftermath. Its congress. And then if the republicans hold on to the house and senate, what happens to paul ryan . Hes generally viewed favorably as a voice of reason. Do you go far right of that to this. Rodney king, cant we just all get along. Staying out of the partisan debate, can we agree that the margin of error in these polls has been creeping up year after year. It used to be 300 basis points, 3 . Im going to argue with you guys right now that the error rate now on the poll of polls is as high as 7 , particularly the state polls. And the way im going to trade this thing, and ive been all week long since last week raising cash, raising cash for the domestic portfolio. For u. S. Stocks. My thesis is, im going to bet 50 50 that trump gets in and the market corrects 5 that day. Its going to be the wednesday morning, you dont like the brexit analogy, i remember what happened there. And i think stocks will sell off hard and its going to be the buying opportunity of 2017 that may determine your performance if you have the cojones to step in and buy multiple sectors. Zpr but 5 is not a buying opportunity. Another 5 gets you into serious correction zone and thats what im calling if trump gets in. Im not saying good or bad for the guy, i dont care about that. But when reagan got in, the commentary, how is it possible that an actor cowboy got into the white house, what a disaster, woe is me. You staid long 24 months, you made a ton of dough. And i think that could be the same case forget about the trump thing, yada yada yada. But john, by virtue of doing this interview today, he just raises a good issue of potential chaos in the capital. Exactly, and that was my other point. Its a different chaos to worry about. Theyre not going to have a civil war in the Republican Party if trump wins. Theyre going to be focused now on going after hillary. And forget about if she wins. Look, it will be brutal if she wins. Correct. So, look, i think the market doesnt like either outcome at this point. Whats the trading opportunity, josh, on wednesday morning . You say 5 barclays, says 11 to 13 . And theyre doing that quantitatively. Theyre looking at positive headlines, how markets are affected. They think they can actually get in the presidency, creates an even bigger buying opportunity. But im with you. I think the trade is buy, not sell, if you get market chaos on the heels of the election. I think youre not necessarily correct that theres not going to be. Lets assume that, lets just say if trump wins, youre not going to have, everythings just going to fall back hunkydory, everythings going to sing kumbaya in the Republican Party and fall in line that is not going to happen. Trump did something they couldnt do on their own. Mitt romney couldnt get elected president. If trump gets elected president , they missed the calling that he heard and now he deserves what he got. Hes now the president do you think the people that went against him, judge, are basically the ones that are hung in effigy. The people that didnt support him. Ryans on that list. Ryans basically saying, yes, i voted for trump, but wouldnt go out and campaign with him. Its a bad wednesday morning meeting between the two of those guys. Do you think ceos who have billions of dollars to allocate, who have mergers they want to do will say, hey, im super comfortable with this guy wlost never been an elected official. Dont go partisan. We know where you are. I dont like them both. I wake up every day and at some point during the day, i spend too much time worrying about, how the hell did we get here. If it goes down 13 , are you going long u. S. Equities on wednesday . I will trade it. If hillary gets elected it pops, i will short it. The good news is, i dont have to declare right now. Ive got my list of what i want to buy. And if the right opportunity, depending upon how memotional i is, i will go in long or short. What the markets saying, very quickly, sorry to cut you off, i think what the market is saying is that it doesnt like hillarys policies, but understands whats likely to happen and what shes likely to get approved, which is very little. Trumps policies are massive slashing of taxes, combined, concurrent with a massive fiscal stimulus, who knows how that will be paid for. And i dont think the market believes any of that is likely, either. When reagan got in, the exact same movie, it was a disaster, oh, no the question is, can he get it through. This is the last point. Weve been buying portfolios actually, were not going to go to break. Were buying vix calls, selling out of the money vix calls. Weve kept rolling that up. That trade, judge, the vix is up 40 in the last four days. So, if you have that kind of protection, you can do exactly what everybody on the desk is saying. Then you can have the cojones to buy on a big dip. The second largest position. Cojones . No, vix. Ive been accused of that, though. All right. European markets are just closing. Seema mody has that story for us. Hey, seema. Hi, scott. Just how politics are driving global price action. Heres another story. The brexit once again in the spotlight for the global investor. The uk pound rallying after the Uks High Court ruled that the government cannot trigger article 50 without a vote from lawmakers in parliament. Its a decision that disempowers Prime Minister theresa may and potentially delays britains divorce from the european union. While the decision would likely be appealed by the Supreme Court in december, there are now questions around whether article 50 will be invoked in march of 2017, as may intended. Potentially slowing down the overall process of the brexit, and thats why stocks in europe are rebounding. Important to know, though, that mays party, the conservative party, do have the majority in parliament. In terms of stocks that are on the move. The banks are witnessing their first positive day in five. More Halftime Report with scott wapner after this short break. Is it because so many go after it the same way . Chasing after short term returns. Instead if getting caught up with the crowd, the Investment Managers at pgim take a long term view, teaming specialized active investing with riskmanagement rigor, to seek out global opportunities. We manage over a trillion dollars this way, attracting many of the worlds leading investors. Partner with pgim. The Global Investment management businesses of prudential 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. Will your business be ready when growth presents itself . American express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. Find out how American Express cards and services can help prepare you for growth at open. Com. All right. Heres whats on deck. What black swan author and big thinker is seeing from his crystal ball for next year. Plus, facebooks big slide. Has the digital ad market finally topped out. And with just days now until the election, new data on how millennials plan to vote and it may surprise you. The Halftime Report back right after this short break. 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. Ive never liked marijuana. But im voting yes on prop 64 to legalize marijuana for adults 21 and over. It has important safeguards for families, like strict product labeling and childproof packaging of all marijuana products. And banning edibles that would appeal to a child. Raising a teenager, that regulated system makes a lot more sense than what we have now. Plus, 64 taxes marijuana to Fund Priorities like afterschool programs. Personally, marijuanas not for me. But my minds made up. Im voting yes on 64. But my minds made up. Hes the drug company big shot who raised the price of a lifesaving pill by five thousand percent. Said he wished hed raised it more. Prop sixtyone targets drug company pricegouging to save lives. The drug price relief act will save californians nearly a billion dollars a year. Join the California Nurses Association and aarp and vote yes on sixtyone. The drug giants wont like it. And hell hate it. All right. Welcome back to the Halftime Report. I want to show you where the markets stand. You may look and say, theyre just muted declines. Yes, in fact, they are. However, if you look at the intraday chart, you can see a steady selloff in the stock market. Rich peterson emailing me today from sp global saying, the s p 500, if it closes down for its eighth consecutive day would be the largest consecutive downturn since october of 2008. Thats the kind of mark its been lately. Well, Value Investor sirastat. Has his eye on some. Whole foods eliminating his coceo structure. Good to have you here. You own the stock . We do. We have not been adding to it. Weve been waiting for this earnings release, to see where the company is going. They been repositioninging, margins were improved. Its a hold to this point. Not sure im going to start adding to it. What about qualcomm . Beat on the top, the bottom line. Its also buying kpp. One of my favorites. Ive owned this for a long time. Theyre firing on all cylinders. All their deals almost done. Its 14 times earnings, with 3 dividend yield. This is definitely a buy. Guys what do you do you have thoughts here on qualcomm, whole foods . Sirat, its josh, how are you . Whats going on . Lets talk about qualcomm. Whats the next steps for this company, assuming they be actually assimilate these businesses and how do they now communicate to the street about what they are . Does this really become the Global Semiconductor giant in every sector across the globe, and wont that result in a discounted multiple . 14 times earnings still a discount to the market. And i think youve got to see them come back to that. Theyre going to be so welldiversi welldiversified, especially now in the auto cycle, in the home, as well as in wireless. So that, in effect is going to give them the next growth rate. And even if they stay, josh, at 14 times earnings, high single digit epps growth with a 3 dividend yield, i would hold the stock for another three five years. Youre still going to be at a discount to the market multiple, but great cash flow and growth. I look at you and i just see, like, hundred dollar bills fluttering from the ceiling. You look great. Let me ask you about whole foods. Whats the deal with the Management Change there . Anytime i see a ceo, coceo leave, get whacked, leave for health reasons, or i need to spend more time with my family win see bad things happen. I think the coceo thing didnt really work. Its hard to have two people make decisions. They need to figure out how to grow margins. How to be the right place for the right person and not just be it for everybody. And thats the issue that i think this ceo will have to deal with. Thats why im not as aggressive on whole foods. I think youve got some time to wait here. A good run for airlines lately. Whats the story here . You own many of them. Delta, american, united. We do. And this has been a painful trade. Its been nice in the last month. But scott, what youve seen here, in the bing of the year, you had a couple of issues, oil going below 30. That really hurt the airlines, people thought that was forecasting a recession. Then you had brexit, that was going to be global travel. But what the airlines have done is something very smart. They have cut capacity and now have started to raise prices. So for the first time, theyre actually comping next quarter is going to be what we call positive passenger revenue. And that, i think, will take these airlines that are turning at seven times earnings, positive cash flow, dividends. Delta almost has a 2 dividend yield. And i think going into next year, theyre going to get some earnings acceleration. And again, multiple at seven times. So if you get expansion, great. But if you dont, the stocks are going to kind of ride along with it and youll get a 10, 15 pop, at least from here, from the bottom. Weiss . Airlines used to be like beer, you only rented it now. Now you can be owners of these for a long time. And delta is almost an oleary stock, because theyre giving back so much cash to shareholders through a dividend, through buybacks. He is a wise king mosabi. Yes, i have zero basis. Its a good trading vehicle, 36 to 40 if it holds 40, pardon the technical jargon, josh, i think it breaks out. Very, very cheap, very stable, but theres a segment of the population that will never own airlines. Coming up, tom bradys take on athleisure and that is coming up after the break. The pursuit of healthier. It begins from the second were born. Because, healthier doesnt happen all by itself. It needs to be earned every day. Using wellness to keep away illness. And believing a single life can be made better by millions of others. As a Health Services and Innovation Company optum powers modern healthcare by connecting every part of it. So while the world keeps searching for healthier were here to make healthier happen. 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 patriots quarterback, tom brady, helping under armour celebrate the opening of its first store in boston yesterday. He commented on the companys growth. And what hes created over 20plus years in business is really amazing. So, i mean, i think hes living the American Dream and to start, you know, at maryland and think of one shirt and how that could transform the entire sporting world is pretty remarkable. Well, the he, there, of course, was kevin flank, founder to have under armour. Weve talked about growth concerns in the Athletic Apparel space, athleisure. And margins. Margins. The disappearance of Sports Authority and what thats meant to all of these brands. How do we see it here . The whole industry with the exception of as steve has accurate called foot locker and some of those stores that have the multiproduct offerings, judge. The individual product offerings, those are not doing well. So even lulu. Lulu got a very nice pop to almost 60 bucks a share last week and has now pulled back into the 55, 56 range. So it doesnt matter. Athleisure is not exactly where people its fair to say it could be a seasonal lull, though. Could be. You could see an uptick in the holiday. Anybody like the theory that this sector cant get amazon easily. Thats why theyre opening all these megastores. You want to try the goods, you want to see them. You want to feel the texture. Nike story, footlocker story, people actually enjoy their time there. People are investing heavily in their retail presence. If i said to you, okay, between under armour, nike, and lulu, under armour is down 19 . If you had to buy one of those stocks today, which one would you be, kevin buy one, which up. Frankly, the numbers have been so erratic on the emergencien, one guys up one, 90 days later, i cant believe the volatility. None of the analysts get it right. So if you like the sector, buy all three. Market cap weighted. Take a quick break. Halftime back in just a couple of minutes. Will your business be ready when growth presents itself . American express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. Find out how American Express cards and services can help prepare you for growth at open. Com. Find oive spent my life expresplanting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Welcome back. We are focusing in on talls today. Silver town more than 2 . Gold is lower as well. Anthony, whats your take . Whats going to do worse . Gold or silver . You know, i actually think gold. Because silver has a lot of industrial uses for it. Its expected to increase wii bi20 by 2018. Both are county, but the trend is higher and yes, silver is taking a break, but its more a technical move. Jeff, you were watching the met dahls as well. Which are you focusing on . Looking at gold, 1300. These are historic times. Were going into the jobs number tomorrow. H historic election on tuesday. I dont think youre going to see 1400 anytime soon, but its not going to be 108 years. For more, head to the website at 1 00 p. M. Because weve got a commodities showdown today. Dennis gartman taking on helima croft. Were talking crude oil and the rest of the energy complex. You dont want to miss it. More Halftime Report after the break. Hey nicole. Hey i just wanted to thank your support team for walking me through my First Options trade. We only do it for everyone gary. Well, i feel pretty smart. Well, were all about educating people on options strategies. Well, dont worry, i wont let this accomplishment go to my head. Im still the same old gary. Wait, you forgot your french dictionary. Oh, mucho gracias. Get help on options trading with thinkorswim, only at td ameritrade. Tell me, how do you like to learn . Songs are my favorite ooh elmo likes songs puzzles me love puzzles. Well. Puzzles are a great memorization too dinosaurs yess puppies ooh i love puppies so do, i. Actually. Pets can teach important lessons abou dancing elmo loves to dance. Okay then, lets dance. everybody cheers yeah baby is happening before our eyes. Shift in Human History sixty to seventy Million People are moving to cities every year. At pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. Partner with pgim the Global Investment management businesses of prudential. 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. Were back. Just a few minutes to go heempl i want to show you the vix. Look at the spike. Now, its over 20. You own the skrrks xx . I do. Ive owned it for a while. I added to it after the close yesterday because of my view in the market, which identify been pretty clear b about. I dont only own it as a hedge, but as an outright investment. Anytime you buy that with a 12 or 11 handle, its gold. Its going to pop. An indicator like the peso is . I think its even bet. Yeah, its. Its become a general nervous indicator. You could even short, you know what, the dax right now. Europeans seem much more nervous about the election than we do. Youve been there, too. Yeah. Again, same thing. We have that hedge on portfolios and things like that. Long one call, short several strikes. So many people with so hedged rits now. Mark cuban. The people who have been fading it are being squeezed now, too. So, the it election news, perhaps . Is it people that are short vix by virtue of not having protection and theyre scrambling now to get it . That will continue tomorrow and monday next week. Obviously, tuesday. I think its worth pointing out, you guys are usinging it in a professional way. The vix is not like a longterm portfolio. Nothing reverts like the vix and if you look at the last two spike, one was in september. The other was around brexit both times just above 20. You had two or three days to unwind that position. Its otherwise, owning vix contracts even rolling them. Its like paying insurance. The reagan sell off was 28 and it proveded to be the buying opportunity of a generation. To your point, you cant oversay, you got to watch it. Youve binching toward this is way. It sounds like are you predicting a trump win . No, but im look at these indices, the vix. The peso. Like everybody else. Im watchinging these every day become more and more volatile and what im doing, my domestic portfolio, raising cash. Thats my way of feeling comfortable. So i can lair in my positions all over again. Wednesday morning, week later, a month later if its true trump takes it. If thats true, you would use it as a buying opportunity and be overweight on the u. S. . I peeled back. Way underweight in the u. S. Now because ive got cash. I go back up to 50 . Thats always my mix. By the way, asia outperformed again this year. Xwen. Last week, we told you about the charity, wings over wall street, benefitting the fight against als. Kevin oleary helped that cause by auctioning off a dinner, the chance to dine with our resid t resident. It raised 34,000. You can doe anytime. Thats great. Good to see you. Whoever im having dinner with, im buying the win and theyre going to love what i buy. Back to hq and power lunch. Im melissa lee. New numbers on the millennial vote. Just five days to go until the election. Also, more on facebooks big slide. Is the digital ad market hitting a top and its a party 108 years in the making. Coming up, youll hear from a part owner of the chicago cubs following their win. Batter up. Power lunch starts right now. Welcome to power lunch. Three hours left in the