In the United States. Eamon is covering the action from the white house. Hi, brian. President trump here playing his own good cop and bad cop with the c oreos. We saw the big three auto makers here at the white house today. You remember that back in early january, donald trump tweeted about gm, saying they need to make their cars here in the United States or pay a big border tax. That was received on the receiving end of g mrm, you can imagine, with surprise. The ceos are just getting used to dealing with a president a tweeter in chief, i should say. Look at this moment with mary barra in the white house today. Donald trump sort of playing a little bit of good cop with her here in the white house. Heres that moment. We have a very big push on to have auto plants and other plants, many other plants youre not being singled out, believe me, mary, i promise but to have a lot of plants from a lot of different items built in the United States. And its happening. Its happening bigly. Youre not being singled out, mary. I promise, the president told mary barra of gm. Well have to see what the specifics are. The ceos talked to reporters afterward. Didnt give indication of anything thats been decided today. Clearly, this is going to be a significant, ongoing conversation for this white house in terms of jobs, brian. Thank you very much. Guys, lets trade the autos. Jim, well begin with you. Youve been long General Motors t. Stock stock is up today. Does that concern you as somebody who likes the name . Doesnt concern me gm and the other oems are being pressured to bring jobs to the u. S. That makes sense. I hope what mary barra and others are saying to trump is, look, were going to do this but avoid a trade war at all costs, especially in gms case with china. They have a lot of Profit Growth. A huge Profit Growth going on in china right now. It is important for them. They will be in the cross hairs of any trade war with china. I hope she is making that point clear to donald trump. Josh brown, are you putting your money in for the buick bigly, the new model . I am not. Gm is better looking between gm and ford on technicals. Both trade more like bonds than stocks. Big yields, low multiples, not a ton of volatility. Gm wants to break the range its been trapped in since five or six years. This can get to the low 40s. What id do on a trade is fail it with a 50 Day Moving Average as the stock so im not stuck in it if the breakout fails. Gm was cheap at the start of december. All of the auto makers were cheap and riding on the back of a strong consumption story from 2016. Now that theyve had such a big run and going into this year, when youve got some of the tail winds that were supporting consumption now turning to head winds, such as lower gasoline prices, which helped consumers in 2016, now theyre higher, gasoline prices are up about 20 since the lows early last year. It is tough to say how much further they go from here. I appreciate the points on valuation. I guess if i was a shareholder like jim, id think, hmm, valuations do look good now. But ive got the president basically browbeating me to bring back manufacturing to the United States, probably going to drive up the cost. Historically, theyre not all that cheap. Six times is what peak multiples have been. You want to buy the stocks when the multiples are very high because the earnings are so depressed. If you go back over time, six, seven times is not necessarily cheap for these stocks, as earnings are at the peak. He hasnt spoken about the other side. Mercedes has 17 share of luxury car market. So thats what a trade war starts. Not when youre beating up on domestic manufacturers, bringing manufacturing back here. It is when you start beating up on german manufacturers. Youre right, youre talking to the companies and saying who is the german manufacturer . I mean, you know, if mercedes is made in alabama and the x5 is made in spartanburg. And my dads gm truck was built in ontario, canada no, no, no. Hold on. They have some manufacturing here. Some. Thats just show. Still, most of the manufacturing is overseas and theyre bringing them . I think every honda accord is made in marysville, ohio. Everything trump is doing forget border taxes, trade wars and all that is promoting consumption. Promoting the labor markets. Promoting wage growth. All of which is going to benefit the auto oems. The henry ford idea. Ill double the workers pay because they can afford to buy the cars they manufacture. Thank you for the analogy. Your comment about peak earnings is absolutely appropriate if youre a peak auto. Ive been saying, were not with the strength of the labor market. We should not be at peak auto here. How many cars do you need . If youve got a fleet thats the age of the fleet decreased over time, its still long by any stretch of the imagination. You have to look at gas prices, as you point out. You have to take a look at financing. You have to look at the sub prime auto market which, by the way, is not looking so good. All right. Guys, we have to move on. I will say, if all millenials are not just ubering their gravity boots, 85 million of them are going to be buying cars at some point. The other story in washington, infrastructure spending. Senior Democratic Senators are expected to unveil their own 1 trillion plan today. It sounds good. The Group Already had an amazing run. Donald trump just signed his executive order to expedite the environmental process. I know were focused on the pipelines but ill tell you something, environmental orders have been used as offensive tools to block Infrastructure Projects for years for nonenvironmental reasons. I want a new contract so ill file a lawsuit. These shares, 3 , 4 , 5 gains. Are you a buyer . Are you a seller . Of course im a buyer. Even because even the huge, 40 , 50 gains in 90 days. Again, we open the conversation talking about the auto makers. Of all the comments, josh points out technically, the one to own is gm because it looks like it is breaking out. Spot on. When you look at all the other conditions, the things that could go wrong, the pros and cons, steven mentions you have the possibilities, private sector borrowing costs rising, gas prices rising. Jim points out positive things relating to gm, maybe fuel efficiency standards gets lowered. Talking about infrastructure. Why wouldnt you buy these . Technically, the market right now is trading towards an alltime high. Why do we need to continue to make a binary decision after five days that President Trumps policies are either going to pass or fail and, therefore, you either liquidate your portfolio or fine. Get some names, ideas. Related to his actions today, refiners, takes you to philips 66, a part owner of the pipeline. Look at the canadian producing oil names. Suncore, cni. Look at Energy Transfer partners. That works well. Then those that go into building it, whether it is an mlm or a vmc. Im not telling the viewers anything we havent talked about the last three months. Keep it simple. Look at the vme. Pick the ten biggest names. Look for charts where stocks are going up to the right. Thats a trend that could continue for a while because this is the most underowned sector in the s p right now. Quite frankly, best performing in january, up 5 . Up 2 today in a flat tape. These are stocks that have been in the penalty box for a decade while the commodity, supercycle thing bound down wound down on side. Now, you have names people have to rediscover. New alltime high, above the february 2015 highs. Major breakout for a sector. I love your point here. We have to be careful though. Like banks, this is a big group. People who make gravel and people who put it in the road. If you go with the bridge, it is the company rebuilding the bridge. Theyre a builder. The stock is up 166 in 12 months. Yeah. I actually do know youre bullish. Im kidding. Oh. Im reaching for the names that havent done that yet. There are a lot. More than double. I actually do know the company. The issue with Companies Like that is that you never know the profitability of the contracts until the contracts are done. Because they fight to bid on the contracts. Weve seen jacobs, for example, way underbid just to get the business. Im not playing that. Go back to the banks you mentioned. I bought citi. The segment is not about banks. Using that as an analogy. To me, the infrastructure is joe is right in what he is talking about. Were in early days. It is going to take a while for all the plans to pass through. Some will. Some wont. Listen, i love the infrastructure names. We have acome, up 41 in the year. I love building stuff. It is great. But is there enough people . Enough projects . Will the money plow fast enough to justify a double, triple and some of the companies that put stuff together. Look, we agree with that point, that there is a lot of people chasing a lot of Government Spending thats going out there, and we dont know where it is going. Clearly, we dont know where it is going right now. Betting on all of them. Were getting fed day by day. Were macro investors. We say, this has been a private sector driven recovery from the bottom of the financial crisis in 2009 through the end of 2016. It was a private sector driven recovery and it will continue to be. A lot of investors who are ch e chasing all the government exposed names right now, i think need to rotate back to what has worked over the past seven years and what is going to continue to work in terms of the fact that youve got, to zwrjims point, wages starting to rise considerably. Look at the latest survey, consistent with around 4 wages growth. Thats private sector jobs being added. Private sector wages going up, as well. Instead of chasing the infrastructure names, we recommend moving into sectors that are benefitting from the private sector recovery. Such as . Industrials. Technology. Lets move on. Farm equipment maker deere in focus. The starting coverage of the states with a sell rating of a 90 target, 15 below the current price. The stock is not responding. Longtimeshare holder josh brown, why is this wrong . The market is going like this. Theyre buying it. Ill tell you why. This is a stock that returned 0 over the last nine years. It just started to get going. It is up 26 since september. Frankly, this is a name thats going to trade a lot more on a commodity agriculture commodity price rebound than any other factor out there. We all understand the average age of equipment out there. We understand there is a glut in certain types of things. At the end of the day, farm incomes, sully, have been depressed for five consecutive years. You havent seen that outside of the 1970s. And youre seeing positive price action in the commodity chain. Joe can speak to that. Youre seeing a lot more ebb ebulence and the stock will continue to be rerated. I dont know when the fundamental improvement hits the bottom line. Equipment company, it could take six months or a year. This is a stock in an uptrend, breaking out for the first time in a decade. As long as it is not manipulated put the graphic back up. I dont know how to put a graphic up. Hey, put that back up. Am i drawing it . Look at that. Five sells, eight buys, 12 holds. Going red or green . Hold on. The stock is 107. In the last four days, youve had two people go overweight. Price target 132, 115. Right. Were talking about 90 with a sell. There is an actual 80 with an underweight. Are they Walking Around the corn fields of the midwest figuring out the agriculture picture now . This is a stock thats broken out over an eightyear, sideways, do nothing frientrend youre seeing improvement in the agriculture pricing itself. You agree, the guys have to go to buys, jack up price targets, you should hitch your proverbial wagon the guys doing the buy and sell calls on deere are dressed like me. I think there is a disconnect right now amongst the Analysts Covering this space and whats really about to go on here. Its been pent up. Thats a steam boat. I know one of the smartest commodity people i know shorted the stock because the fundamental story it is a real player, not somebody who writes for a living. Okay. The fundamentals are challenged. You cant account for it. It is momentum. It is the scarcity plate. Cat should be traded at 60. Sorry to cut you off. We have a breaking news alert we have to get to with phil lebeau. Brian, remember last month when we were at the detroit earlier at the Detroit Auto Show and toyota was making a 10 billion investment in the United States . Within the hour, they announced adding 400 jobs at its final Assembly Plant in princeton, indiana, where they make suvs. This is what were seeing from all the auto makers. What is interesting, brian, is toyota is trying to be as proactive as possible to send a message to the Trump Administration that it is investing in production and in jobs in the United States. Because one way or the other, it is clear toy yota and the other auto makers, their production overseas could ultimately be targeted as part of the Trump Administration telling people, think again about where they manufacture. Phil lebeau, more and more jobs coming to the indiana. Thank you very much. Heres whats coming up on the Halftime Report. Biggest dow wave rowed in. Dupont, verizon, travelers, 3m, Johnson Johnson all reporting. What did the market learn about the rest of the season . Coming up. Before the break, our partners at kensho show the stocks of the first 10 0 days o a new president ial Administration Since 1993. More than express, microsoft, chevron and apple. The biggest losers in the first 100 days, procter gamble, mcdonalds, nike and, the worst, sysco. More Halftime Report coming up. 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 welcome back to the Halftime Report. 12 18 in the east. We have a dow edition of earning central. Why . Five dow components reported this morning. 3m, dupont, j j, travelers and verizon. Verizon, wow, on pace for its worst day in five years. Joe, are you a buyer on this . 100 . Absolutely. Thats all the percent. Yeah, it is. Reasons why . Core wireless business is declining. Weve talked about that. It is not what the company is anymore. This is a company that is diversifying. This is a company that wants to go out there and compete with a facebook and google. Can they do that . Not necessarily. Do they have the talent . Do they have the talent and the initiatives . Yes. There is walden, an executive, fantastic and initiatives have been phenomenal on the technology side. They will diversify. It is a long term buy. A marty maker . Dont answer that. Another dow stock in todays call of the day. Fan boy favorite apple. Well get to apple in a second. Johnson johnson, dupont. I watch this to know none of you are dow stock lovers but you fishing a bit . All of them have poor earnings responses other than dupont. Theyre all trending lower. The stocks are for sale. There are giant names you could be in, like gold mman sachs. Look at mastercard. The stocks are going up every single week. Volume is increasing on the way up. Rsi is confirming the uptrend. These are the stocks you want to own. I dont know why you want a name thats lower. Good news, bad news, different news. Id be avoiding the travelers, verizons. Theyre not working now. Theyll have their time. This aint it. Verizon has been working. You stay in that. Verizon is not a bad name but has done nothing in a year. The bigger picture, these earnings are not that great and the outlooks arent that great. Theyre fine. Good. Arent that great. Dupont is at a fiveyear high . Hold on. Wait. All of us are talking about the earnings recession of the last two years being over. What im saying, the results were seeing from the large cap blue chip stocks, you cant say the earnings recession is over. Theyre different companies. Chemicals, dupont, ago, the chemical deal. Johnson johnson. It is a Broad Spectrum of american industry there is a cyclical effect. Dupont, trading 95 near a high. The rails are trading phenomenally well. Listen, none of this were talking about coming out of an earning recession. If we want to be technical and say were not just yet out of it, okay, fine. I think we will be. None of it is leading to an ek m no ic economic recession. Thats the reason to sell stocks. Heres what were not missing. Maybe were just not talking about it but not missing it. You have to look at each company individually. You cant say a sector, everybody is missing. Thats what i just said. All right. Im saying it clear so the audience has an appreciation for it. In terms of companies, for example i fill in once every three months. J j has been challenged a long time. New ceo, levers to pull and he pulled them. Now it is back to the old j j. Tough to move. Theyre growing by acquisition. I would stay away from pharma. Jim, i know, likes pharma. Im staying away. It adds some sophistication. Are you a buyer of any of these names . J j, travelers . We like 3m. We think Global Production growth is going to move. The fastest acceleration in terms of Global Growth why 3m, postit note, why is that Consumer Company a good buy . It is a play on u. S. Production growth and global, as well. The stocks had a great run so far. Theres more in them. If you think the cycle will continue another two or three years, which we do, not only in the u. S. But broadening out globally. The stocks are great, global players. That is the benefit of investing in some of the dow stocks that you dont get if you go further down. The growth out of europe is very strong. All the latest indicators are showing great strength. You may say it is still growing. 2 inflation in japan. You have things you didnt have a year ago. A euro that was 135 in august of 2014. It is 107 today. The pmi has gone from 47 to 55. Jim cramer this morning at 4 30 in the morning is pointing that stuff out. Thats the right stuff to be pointing out right now. I dont know if jim stayed awake all night to post it or got up at 4 30 to post it. Value in reading jims tweets at 4 30. Hes up. Global growth is recovering. Will we will the tide that lifts all major boats . We were in 2016. Now the recovery is broadening out to places such as japan, which really hasnt had a recovery in the last 20 years. It is broadening to europe, which has been stagnating the past four or five years. The Global Recovery is broadening out. The u. S. Was the tide that lifted things in 2016. Now, every single u. S. Indicator is basically the strongest its been since the year 2000. Its Even Stronger prior to the peak in 2007. Good global discussion. Thank you. Your stock call of the day today is an analyst who dared to downgrade apple. Well tell you who did it and why they made that cut coming up. Plus, cracks are starting to show in the big bank trade. This time maybe from the bankers themselves. Well tell you what the insiders are doing that may have you a little bit nervous. Stick around. Welcome back to the ha Halftime Report. Check out shares of ak steel. Down about 2 to 2. 5 . Shares were as high as 10 earlier today on strong earnings. They fell to a loss of as much as 8 before rebounding just a bit. On the conference call, the company said it sees First Quarter average selling prices, quote, relatively flat, versus the fourth quarter. Shares are down about 11 yeartodate but are up more than 300 over the past 12 months. Brian . Thank you very much. Lets bring in from minneapolis, minnesota, pete. Well see you later in the show but you own ak steel. We said, get him ready. Will you buy more on the weakness . I probably am, brian. The reason is when i see the kind of volume spike like weve seen today on this news, i think itll create an opportunity. It is within the range where its been after this huge move to the upside. 9 to 11 has been the range. Because of that, i would probably be adding and i cant do it right this moment but ill probably be looking at this closely in the afternoon to see what the best opportunity is Going Forward from here. The earnings itself, as you say, look strong. As a matter of fact, stock was up above 10 early in the session and now here it is back towards 9. Feels like a wash. A lot of people tabi itaking mof the table. Lower end of the range. I like the trade. Steven, itching to get in here. Not itching. Patiently waiting my turn. Im a measured guy. Pete, what are you laughing at . Alternative facts. Hes measured. You on the other side of the trade . I was sure ak steel for a day, day and a half last year, and actually did make some money on it, surprisingly enough. The stock is huge. I think theyll be okay. But the fundamentals is still a challenge. I mean, these stocks have done incredibly well over the last year. Undeservedly so. Theyre still overvalued. Despite the multiple. Pure momentum trades. Im not looking to buy them. Im looking to short them. I was hoping ak would stay up, but saner minds took control and it is trading lower. These are stocks going from negative book values and earnings yearoveryear to positive earnings. Theyve doubled. Reflective. Right. So i dont know if it is unjustified. I would agree with you that there is a lot of enthusiastie yazzism. It is not a random occurrence. There is nothing random in the market. It happens because but overstated you know what ak steels main product is . Excuse me one second. Guardrails of highways. I want to get into it with my friend josh here. It is momentum trade. Explaining it. It is still invest in the market fundamentally. Theyre overvalued. They have way overshot valuation. Ultimately, momentum comes down to earth. Joe likes to buy stocks that are on sale. So does buffet. When verizon comes down, we say, it is cheaper than it was yesterday. The fundamentals dont reflect that. Excuse me, do you think that price sometimes is indicative of where fundamentals are headed or will be . Absolutely. Semiform of the efficient market. This is a rare time where i agree with steve. It pains me to do this. It hurts me. Pains me to have ill tell you something i thought pete, bring some rationality to the conversation, please, on aks. I think both sides are making a good argument right now. When you listen to what josh is talking about, these are companies that were struggling and, suddenly, the picture has changed. With that picture changing and with the potential of what donald trump is going to be doing Going Forward, and ive got to tell you, right here in our state, amy has been very, very aggressive about the dumping idea coming from china. There is a lot of reasons why there might be more to this trade than meets the eye right now. I think on this sort of selloff like were seeing today, there will be an opportunity. Probably not this moment. Maybe it is not today. But it is something i think you have to keep an eye on after the huge run and now this extensive pullback. I will offer you a trade i have witnessed that involves ak steel, involves High Yield Energy and goes back to a year ago. Ak steel a year ago was 1. 90. But a 70 stock in 2008. Doesnt matter. What you had people doing is stepping in and buying the debt in a lot of these toxic names. On the other side, hedging out, selling the equity. You have seen the unwind of that process, where people have made a significant amount, way more money josh, is it bigly bigly money on the debt side of ak steel. They sell out of that. Now they cover the short that was hedging the debt. Happening all the time on wall street. Happened for 30 years. Look at ati. Allegheny. The stock is up massively. From pipeline. Look at the short interest, 22 , to joes point. These are huge numbers of short sellers. Not so big. Of course. With the bigger companies. You get what im saying. There are a lot of people who have no position in the space. A lot have big short positions because of other reasons that maybe dont have anything to do with the outlook of 2017. Keystone and dakota pipelines, need liners, shorts, blah, blah, blah. Barclay is daring to downgrade apple to equal weight saying, quote, there is no needle movers on the near term horizon and smartphones wont expand the multip multiple. It is our call of the day. Jim, you own apple. 25 of the market cap of apple is net cash. Thats cash after you subtract out the debt. 12 times multiple or 13 times multiple, it is really x the cash about a ten times multiple. We can argue, maybe it should be 9 times or 11 times, but at ten times, with this amount of cash generation and that brand, ill buy this all day long. Ill stay in long. Ive never heard that before. I dont want to forget it. I need a pen. There you go. Thats an old story. What does it matter . By the way, i have a sharpie, which is more permanent and goes to the longterm trade on 3m. Im not writing it twice but thank you. Apple bottomed in may, and apple has threatened to roll over several times. Every time, buyers come in and take it to new highs. I initiate this call as strong ignore. My joke failed. Now to sue with the latest headlines. Thank you, brian. Heres whats happening at this hour, everyone. Israel says it has approved 2500 west Bank Settlement homes. Prime minister netanyahu says it is in response to housing needs. The election of the donald trump has reportedly emboldened prosettlement lawmakers. Iraqi police say a car bomb went off inside a car dealership in baghdad, killing two and wounding eight others. This comes a day after iraq announced the eastern side of mosul had been taken from isis after nearly 100 days of fighting. Syrias warring sides meeting for a second day in kazakhstan in an attempt to cement a ceasefire that could pave the way for political negotiations. The talks are backed by russia and turkey, who are eager to disentangle themselves from the fighting. Back at home, the u. S. Attorneys office releasing a photo that shows 20 million in cash found in a box spring in a massachusetts apartment. The money is believed to be linked to a 1 billion pyramid scheme involving telex free. A Company Providing to claim internet phone services. Thats what 20 million in a mattress looks like. Youre up to date. Back to you. I cant wait for the faxing scheme. Thank you very much. I know. Appreciate that. Crude oil up 18 since the election. Many oil stocks have nice runs but are they still a buy . Youre going to see us at the top of the hour on power lunch. Some of the stories, President Trump meeting with the heads of the big three auto makers. Their plans for jobs in america and what it means for the car prices. What wall street wants to see from the Trump Administration. Home building stocks have been rallying. What does it mean in the months ahead . More Halftime Report is back after this. 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 welcome back to the Halftime Report. Crude oil prices rallying over 1 today. Through the 53 mark as investors are focusing on opecs commitment to cutting production. Scott nations, i presume, or assume, that the pipeline news is having something to do with this. Certainly is. I think youre on the money. What we learned from opec is driving the market higher. We see opec is well on its way to implementing the 1. 8 Million Barrels per day in cuts we had expected. I think most interesting is the fact that iraq, which almost demanded a waiver, theyre on their way to satisfying their cuts. Theyre well on their way, about 80 of their scheduled cut has already been implemented. Jeff, weve been stuck in this range for a few weeb week. When will we break out . Great question. I think it is coming soon. No doubt, were stuck in this range. President trump set the stage with the initiatives today. Lets utilize the standard analogy. Were in the first half. Have not seen intermission. Due to the opec and nonopec production cuts are coming to reality. We test the 56 level which it was january 3rd before we go lower. The second half, talking about cuts domestically, it will keep a ceiling on crude oil for the next month. Right. Thats the big risk weve been discussing. For more futures, head to our web site, futures now cnbc. Com. At 1 00, were joined by michael gibbs, why we sees another market rally in the cards. Brian . Thank you very much. Pete, welcoming you back in remotely from minneapolis. Are you still long on energy calls . I am. I hold on to those. I prefer now the service area as well as a lot of the shale names, brian. I know you know this space as well as almost anybody at cnbc who spent time up in north dakota and so forth. I think the services are the place to be, particularly. If you look at oil, its been in this range but the range continues to rise higher and higher, right . Were seeing higher lows. Higher highs. The 50 to 55 range were seeing now. Look at the Oil Volatility index. It was at 55 not long ago early december. It was grinding near 30 ever since. Theres not a lot of volatility. Its been sliding to the upside. As oil slides higher, you think the Service Names look at the turn around from halliburton. It speaks for itself. A boutique Research Firm making a big call. Ill give you that in power lunch. Thats a tease. Thats why youre the man. Thats the reason i promote my own stuff. Theres the names. Transcanada, up 2. 5 . The parent company, the keystone pipeline. Would any of you jump in as a shortterm trade on the trump news . Do you own it already . I screwed up energy. I thought a lot of the policies that would be enacted would lead to a rise in Domestic Production and we would go back to a place it is. Youre right. Up 29 last week, joe. Technically, oil looks good. It is now at the upper end of its range, holding above 50. Technically, oil looks good right now. So listen, i can think what i want. The bank account doesnt like it now because im not making money in energy. Oil is the commodity we downgraded. Shorted others. Dipping our toe in. Commodities move, number one, on growth, the second is liquidity. China is coming off the largest stimulus package ever announced in the history of the world ever in 2015 and 2016. Theyve already started to tighten conditions. Even if play dont continue to tighten, fiscal stimulus has an end and that is in 2017. Commodity to pricing, not only a continuation of the strong Chinese Investment but a further rise in it over the course of 2017. Bart commodities priced in too much growth. We dont want to be there. Except oil. Except oil. We like oil. As u. S. Dollar dollar liquidity i could have used you in my steel talk. Where were you . Right here. Next up, fault lines in the big bank run. Plus some rather unusual activity well tell you about in a mining stock. Stick around. Before the break, broadcom hitting an alltime high. Ibm and Western Digital recent highs. And 17year high for texas instruments. All stocks are in the index, up 35 on the year. For more, go to cnbc. Com iq100. More Halftime Report coming up. [pony neighing] what . Hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. The full value of your totaled new car. The guy says, you picked the wrong insurance plan. No, i picked the wrong insurance company. With new car replacement™, well replace the full value of your car plus depreciation. Liberty mutual insurance. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . Big bankers are ringing the register on the rally. Get this. According to filings, since the election, nearly 100 million of stock has been sold by executive inseiders at wall street banks. This has analysts giving a warning. There is no likelihood dodd frank will be repealed. The stocks are moving on incorrect theories of interest rates, incorrect views about whats going to happen with dodd frank ask thnd that makes vulnerable. Lets trade the banks. Insider selling out tool. Dick warning. What do you think . Banks are great on Economic Growth recovering. Well look at loan growth, which will probably surprise on the upside for the next two years because people are looking at the lackluster environment weve had the last five. Itll pick up as Economic Growth impro improves. The expense lines will be flat or go down. Everything else, youre getting a free option on regulatory changes, et cetera. From a stock perspective, im focused on the stocks that sell below book value. It excludes some like jpmorgan. But includes citi group and bank of america. Those are the only two that i see below book value now. They could have another 25 price rise to get to 2. 5 times multiple. The rest of the sector looks fairly valued to me. I dont know. The commercial banks to us look pretty good. To us, it is great to buy the diversified players but difficult to tell what youre getting and theyre more susceptible. What do you like . Citizens financial. Wells fargo. Had a great run. We like them. Youre trading on dividend yields above the s p 500 and great leverage players on economic fwrogrowth and continu to recover. Im staying with jpmorgan and bank of america. Morgan stanley is getting away well so far. Done some trimming. Kind of a little regretful i did that. I do see the opportunity in the regional banks and a lot of people have talked against them. But the possibilities of the level going up 50 billion or higher are the insiders selling because theyre negative or the banks have done exactly. The only time they could what is the first first of all, the hole dick is in, if you recall, he came on the show three months ago and said, to see out over it unless hes standing on a ladder. Thats partial information. Josh brings up a good point. Some of their options they have to sell. Do you need to do it as a negative . This is the first time theyve had a chance. Thats my point. Interest doesnt matter. First of all, i heard him say in that clip, there is absolutely no chance whatsoever of dodd frank being and also said false information on interest rates. I dont know where he is. Any time you hear people in the Investment Business say absolutely no chance, that means its about to happen. This is an administration thats now signing things willy nilly. Theres no telling what could happen with Something Like dodd frank. It doesnt have to be repealed. He could rip out the six parts that jamie dimon tell him is no good. You dont need to own the banks for that. Nonbank financials, mastercard and visa earlier in the show. These stocks are going north. Lot of ways to win in these banks and i would not be listening to that absolutely no chance. I would say acadia is very cheap. Session highs for the markets . The dow is up 100 points. More half time in two minutes. The greatest population shift in Human History is happening before our eyes. 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. Time for trader blitz. D. R. Horton. It is picking up, seeing some areas. Look, youve got to go with strength. I think you like it, josh, dont you . Yeah. This is one of the name thats right down the middle of the road in terms of their mean product offering, one of the better ones to own. Following samsungs semi conductor, micron moving higher. Demand in chip pricing, giving credence to the belief that pcs are picking up. A lot of analysts are coming out, upgrading the amount of pcs sold this year, could be in response for stronger labor markets. That bodes well for micron, intel and others. Alibaba. A company thats got revenue in the Third Quarter up 53 . And actually, commerce is shr k shrinking as a total percentage of revenue. Company seems to be doing a lot right. Not getting a ton of credit on the street. I like them. Adobe. Poster child of the fall when the Technology Sector couldnt rally. Breaks out here. Love it. Getting away from microsoft. Speaking of a rally, market up 106 right now as dow 20,000 watch back on . I dare say it is. Were back after this. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise the markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. Welcome back to the Halftime Report, coming to us live from the land of the 10,000 lakes of wisconsin, as we know, superior and has more lakes, pete najarian, what unusual activity are you seeing . It you take a look at what copper has been doing, brian, theyre watching oil, gold, everything else. But copper, having another good day, around 270 right now. Look at freeportmcmoran. The stock has continued to move to the upside. Were seeing the march 18 calls, over 10,000 of those bought today around 60 cents. Very fwresi ivaggressive buying, brian. Look out to the upside. I think freesport ready to run. I bought these calls. Ill be in them for a couple of weeks. Watching copper and fcx. Final trades. Joe terranova . I like the exchanges, especially if the market breaks out above 20,000. Barrons round table, Merrill Witmer breaking out, ice, sme also. Verizon, i want to come back to that. Exquisitely run. Mcadam is a very savvy ceo. Taking what was a utility stock and turning it into a growth stock. Time warner deal goes through, opening up the gates for them to acquire more and grow faster. Im on the other side of that whole content play. Buying content that nobody reads anymore. Social is way more important than articles. Theyre nowhere in social. I would not be buying it as a tech play. Buy it for what it is. Good dividend yield if you like it. Adco. Big momentum. Thats for you, josh. Final comment . Thank you for being with us. Economic growth is accelerating at the fastest pace since 2010. Equities are expensive. If you can find cheap ones exposed to Economic Growth thats where you want to be. Tech, industrials, media. Pleasure. Thank you. Also buying calls on target. That does it for halftime. An awesome power lunch begins right now. It sure does, brian. Thank you. Well see brian in a few minutes. Im michelle carusocabrera. Big three automakers topping the big three things were watching this hour. President meeting them today at the white house. Ripple effects and more straight ahead. Were also waiting a White House Press briefing set to begin in less than half an hour from now. Well bring it to you live. And busy day of earnings, five dow components out with results. Latest Market Reaction from wall street coming up. Power lunch starts