Can last. Jim, i heard you say this morning, people are feeling liz stable, theres a lot of remorse. This cant be as good as it seems. Are we at a tipping point, do you think . I do think were at a pausing point because i know the fed is going to take action. And i think that everyone is excited about the fed raising rates until they raise rates. And this day you get a sell on the news situation. I do believe that theres a lull in earnings that makes it so you start thinking what is going to get 3m to 192 . Should i be buying boeing at 200 . What i find is that people are saying, geez, you know, the tweets are a little insane and the janet yellen who knows what shes going to say. Maybe take something off the table. That not radical. Thats fine. Continuation of what we saw thursday and yet friday turned out to be a benign day. I dont expect anything big enough to get out and get back . You said you would ride through it. Yes. Absolutely. I want to ride through it. Fault anybody for taking something off the table. I want to ride through it because i dont know if you can get back in. I dont know how many people it will be. Investors at home, 100 agree with you. If you think the market is going down 35 then you get out. But i dont think the market is going down 35 . If you think theres a tradable little correction that guys like me can participate in, then clearly last wednesday was a very euphoric type of day. It was either shorts covering or it was weaker hands coming in to the marketplace. In either condition, thats not good for whats going to go over the next week. I think were in the midst of a little bit of a sell any type of rally moment. But thats a tradable event. More than anything else. Im staying short. It feels like the street is starting to get a little bit more cautious. Right . Theres a goldman thing talking about maximum optimism. Jpmorgan, over there today drops a note that says the fundamental backdrop is supportive but shortterm Downside Risks is increasing. Natural to say that after the market has gone so far so fast. Cautious time or if its just pause and now were going to pick up time . I think i agree in principle with both jim and joe. I dont think the market is going to collapse here. Thats when it always does collapse but i dont see that. If you remember the movie and the play dam yankees thats what we have here. You make the deal with im not trump devil with the trump, things you tolerate you would not normally tolerate with the goal at the end, being on the championship team. And then things starts to happen the end of the movie not sure that its a great deal. Seeing the remorse. The tweet that came out over the weekend, to many we, is i wouldnt say a dissimal moment but do we have control there and how long can this republican, you know, coalition Stay Together . Let me take it a step further. How long is the market, if it is, going to give that kind of stuff a pass . Earnings hold sglup thats my pint. I think were nearing it. Thats what i mean. The more cradical it gets. Even if its true, you wait. Reasonable people wait until they have some evidence, some way to balance it. Dont go off halfcocked not even talking to your staff. That lack of stability that i see in the white house from that cause me pause. Is that what the market is reflecting today . 13 points on the s p . Trigger to to weaken. I think you dont have any other news so you come in and its like nixon, gawatergate. Those who lived through that, its like, hey, president chief, you know, thats a tough one. Because it took forever to build that case against nixon and watergate. You didnt just throw it out there. Responsible politician should not throw that out and even against nixon and nixon all guilty as get out. Remember, you had the buy back back out window. Now youre getting towards the end of that period where they were coming in to buy. So you dont get that trav gravitational pull higher you did. Several big Name Hedge Fund managers may be getting nervous about the trump trade. Kate kelly now with the New York Times did great reporting over the weekend. Joins us here. Great to see you again. Great to see you. I love the read. Whats the bottom line . Is it from the people you talk to . The bottom line is, i spent a week or two talking to 15 people and 9 of them, 10 of them were skeptical about the market rally. Theyre quick to point out we have good economic fundmentles a. A lot of things to be optimistic about legitimately. However, they think that 1 to 2 of the upside weve seen in recent weeks. Were up like 5 just since the inauguration and more than twice that since the victory in november is probably trump optimism. And specifically in terms of the policy agenda, they like what they hear in broad strokes. Like a trillion dollar infrastructure spend. Certainly roll backs on businesses like a roll back potential oi of doddfrank as well as some of the other measures. Corporate tax overhaul. Question dont have any details. We also dont know what the time frame is. Youre digesting the tweets from over the weekend. You may be thinking this is yet another distraction thats going to prevent us from seeing obamacare reveal and replace any time soon. If that doesnt get done, we dont have tax reform in 2017. It becomes a 2018 issue. Right. And then sort of the air lets out of the tires. If profits are okay im willing to tolerate the damn yankee. Lets just wish i think oleary is going to he doesnt like i saw him talk about the regional banks. Lets take key bank. Key bank was at 39 a decade ago and its, what, 18, 17, maybe sells at 12 times earnings. I need to get in there. Thats a buyable pullback. Its not a pullback that says, lookout, here goes key going whack to 12. I dont think key is going back to 12. I think business is better in the midwest. Kevin oleary, do you want to respo respond . Sure, it goes back to 12 easy piece si. Heres how. If you dont think youre ever going to get tax reform, doddfrank relief, more leverage on that Balance Sheet or Corporate Tax reductions and all you are rely on is the fed to get a better sprayed through lending rates through rate increases that goes back to 12 bucks because half of the animal spirit, im out of the regionals. I took my profits. I even didnt get the high but im telling you, jim, if were not going to get tax reform in to late 2018 the air is coming out of those tires. I want to make a comment about the tweets. I dont care what trump tweets anymore. Thats style. What i care about is policy. When you get an executive order that scares syrian coder from leaving the country. Second green card, wont leave boston because hes worried about getting back in. He doesnt care what the executive order says. Hes just watching the action. Adds instriblt. Style to say the fbi hold on. Its style to say that the fbi broke the law . Its style to accuse the former president of the United States of espionage and wiretap . Is that the style . I get the crazy chicken stuff. My point is the market doesnt care about the tweets as much as it cares about policy. Theres almost a one for one correlation between the s p 500 and trumps week to week Favorability Ratings since january 20th. The s p is up 5 since trump took office. That could be erased in two days if the narrative goes from, hey, deregulation, everything is sexy again. You can do whatever you want. If that narrative switches over to, oh, my god, theres a pfizer warrant being execute and a major overhang for next year, youre going to see youre making my point. Asset managers youre make my point. Its not just style. The market is paying attention to this. No, no, no. Tweets are style. Policy is the warrant. When you have real cold hard policy, changing peoples tone and feeling about the market. So five weeks ago we were told in five weeks ago we were told in two to three weeks theres going to be a, quote, amazing tax plan. So thats now two weeks past its selby date. Where is that tax play and the longer it takes the more theres going to be ruin for creeping suspicion to come in that this stuff is not getting done in this particular session of congress. Thats why you should be selling the regionals. You should be selling the regionals for that weekend. Delivered a terrific quarter without the fed raising rates. Margin was terrific. Second, to believe this market is going to take this stock back to 12 when Elizabeth Warren was going to be run that Senate Committee and Hillary Clinton was going to be president , thats absurd. And the third time is i was out here with you before and you didnt like the stocks and they had another leg up. You know what . Easy peasy is not in the gamut and the vocabulary of this kind of market. Nothing thats like i think you can take it to the bank, no brainer, none of those terms work in this market. Easy peasy . I love it. Jim, i love it. I know im right. Ill know im right now because youre going crazy. This is good. Im not going kay crazy. I let it go and they went up and i said nothing. I said nothing because this is the business weve chosen. Can i jump in with maybe 11 no one thing im trying to argue and point out in my piece today is that i think policy awareness and policy implementation is going to be a new and more important factor than it was in the past. Of course government policy regulatory issues were always going to be part of modeling for company earnings. I love you. I love you very much. If you look at citadel in chicago, thanks, kevin, i love you, too. I like her. Theyre taking a new risk factor here when it comes to political policy implementation. And looking at it in a number of sectors whether its pharmaceutical, financials. And saying, look, this is going to effect things perhaps more dramatically in the past. I think its because of the tweeting, jim. Tweeting is now policy tool. Right . Its a little disconcerting but the ones hes gone after is the best. I love the boeing action. Easy peasy boeing. Its symptomatic of whats happening. Because of where the market is. It wasnt that big an issue but the market is a discounting factor. It has discounted a good part of what the policy could be. We dont know what it will be. We dont. Now weve got to wait to see what happens. The longer they push out, pushing out to august, was genius. Because now weve got that period of time for the market. August for tax reform increasingly inrealistic because of obamacare. One thing on tweets being policy, keep in mind in fdrs term he was frustrate with the prisz me felt he couldnt get across what he wanted to get across. That started that every weekend they did the radio address. That was Brand New Technology back then. That was the equivalent of our president today saying, you mow what, the media is trust trading me. Im going direct to the people and using twitter. 140 characters. Thoughtful addresses. An hour and a half and fireside and it was like this is like nixon, watergate, bang. The point is we shouldnt say, oh its just its a campaign. We shouldnt say its just a tweet. Youre right. Its not just the tweet. I think the tweet is emblematic of the political volatility were not n. Right now. Fair enough. Youre a diplomat. I never knew you were a diplomat. New york timesing you now. Keep it smooth. What i think this tweet means is the presidency is losing its relevancy under this administration. I dont think the market cares. Im listening to whoa. No, what i think the market cares about is exactly, kevin, what you and jim have been talking about. Sorry, josh, not what you and kevin have been talking about. What i care about is the economy is going better. Profit seem to be coming along. I look at stocks and im not worried about the market. Im selling the ones that are too high. Bowing. I sold it on friday. Im looking for the ones to im give you a statistically fact the market is tweeting in line with the favorability rating. Fact. You guys are missing the signatu signal from the noise. I never miss anything that you say. I may miss things other people say. But you have pretty much i love value hire. Giving my opinion here. Is it time . Sure. If this were george bush, either of them, who put out a tweet like this about the fbi wiretapping his offices the markets would be down 5 , 6 , 7 . So out of character. Exactly. Exactly. Because nobody cares. This is losing its relevancy. Nobody cares nobody cares until they care. It would be out of character for any previous president to act like that. Thats my point. But how about deregulate i dont care anymore. I dont care. Currency affairs. Something probably we want as people what did you say . When you get rid of the transparency. Look. Lets get perspective. How much cash can you hold in your portfolio and how much cash have you held overtime . Where are you going . Youre always going to be long. Youre not going to ever short because you dont short. Cash. Im always long so i can ignore those things. I cant raise cash. I would be in 50 cash if i wanted to. Have you ever been . Yeah, sure. How long ago . Sometime in the last economic expansion, sometime in the last six years. I know i have. You know what . I dont care. Right now i am fully inest haved. I sold boeing on friday. You dont think the noise is going to at some point resonate scott, what i find is the noise is becoming less and less relevant. Pick up boeing as another example. He tweeted at air force one it went down. Now maybe its becoming more relevant. Weve not mentioned how its better. Asia is better. Youre so strong why doesnt that figure these other markets are better than ours . Do they have doing less tweeting . Economies are better. Well, on that im glad you brought that up. On that note, since jim was talking about europe and a lot of people are focusing on Deutsche Bank and that 8 1 2 billion dollar capital raise, mike mayo joins us now on the phone. Free agent. He is a free agent. I like that. The skins, the skins can grab him. Did you go down in the combine, mike . Were you on the bench press and doing all that other stuff . I dont even want to ask you what your 40 time was. I dont want you to embarrass yourself on tv. What should we think about the Deutsche Bank news . Well, this plays perfectly into the conversation youve been having. What a contrast u. S. Banks, keycorp. And no other large bank is going to decline by onethird. Seven years ago the largest u. S. Banks raised 300 billion in capital and now we have news that Deutsche Bank might raise 8 billion of capital. Seven years after the large u. S. Banks raised money. So better late than never i suppose but that highlights the contrast between the Balance Sheets of deutsche or the European Banks versus the u. S. Banks. In fact, if you look at the europe stress scenario for Deutsche Bank and put it against the Federal Reserve criteria, theres a chance they actually would fail the u. S. Banks stress test on that criteria. So and another point about this Deutsche Bank and European Bank in general they dont have the same Balance Sheet to compete against b the large u. S. Banks. For that reason over the last year in no Uncertain Terms the largest u. S. Banks like jpmorgan and others are gaining share. What are you telling us . Are you telling us that Deutsche Bank is worse off than we think because there are some people on this desk today who may be inclined to buy deutsche given the selloff like jim cramer who is just germany trying to avoid nationalist comeback in europe. I think thats what germany fears. They think its 1931 there. Thats what they think. I think their condition at Deutsche Bank, europeananks making it easier for u. S. Banks to gain share. Contrast about the strength of the u. S. Banks over the next couple of years. I think the question here to ask is, mike, is how far behind the u. S. How far behind the u. S. Is europe . Is it five years, is it three years . Is it catching up or is this the exact same playbook that was late in starting but if you get in im not buying Deutsche Bank in front of a 8 1 2 billion dollar Rights Offering because theyre going to price it lower and people are smart to do that. Activity, so much m and a activity in europe, both from europeans buying u. S. Asset, u. S. Corporations buying european assets. Talking about today a merger or an acquisition of a Steel Company in italy. You wouldnt have thought that a couple of years ago or six months ago. So you see getting better. The banks will get better there because the economy is getting better. How much longer should we wait . European banks are several years behind u. S. Banks in strengthening their Balance Sheet. U. S. Banks at this point can survive not one financial crisis but two financial crises. As long as they take the toucher measures the u. S. Banks have also streamlined aggressively. You have all sorts of laws and regulations that limit the degree of potential restructuring for the European Banks. So if theyre willing to pull the bandaid off more aggressively there could be more potential upside there. Cramer you need to see it first. Would you buy Deutsche Bank . Of the mechanics of it, but in my inclination is to be on the buy side. I dont know if you can get in on the price of the Rights Offering, yes. I dont think Deutsche Bank is well run. I lefthand to that interview this morning. Thats not necessarily that fellow is not my ceo of choice. But i do think that i want to get in europe. Im doing business in italy right now. Complete cash economy. Theres no banks willing to do anything. Im hoping unicredit comes back. I think that the when you look at merkel and the fact that the political challenges, i think she has to avoid a nationalist revolt. Thats whats brewing in a lot of these countries. Although the National Result was not a negative for the ftse when we saw it in england this summer. True. It doesnt have to be so binary that mainstream candidates leez elections in Continental Europe and 100 easy peasy negative for european stocks. I dont know if thats the case. Zero sum between germany and the eu and i think the eu is saying, come on, guys, share the wealth. How much us the it cost moderate in france might have replace himself on the ticket. How much does it cost germany to borrow on a of twoyear basis . Kevin oleary oh sghoe are nothi nothing. I want a royalty from everybody that uses the term easy peasy. Easy. You got it. I will owe you nothing. Look at whats going on in france. Look at whats going on in france. 50 50 chance le pen is getting in. Shes as nationalistic as anything theyve seen and the market is getting better. Talking about crazy tweets in the u. S. About trump, think about france. That is the beginning of a concern of the break up of the eu and nobody gives a damn this. Unemployment keeps going less. I like europe im going long europe. I think europe right. Why . I like the euro here, too, by the way. Im not kidding. I mean, literally euros. Mayo, before i let you go, are u. S. Banks, is the rally does it feel like its getting closer to being tapped out or not . The next two years will raise the strongest Balance Sheets in a generation. Accelerating revenue growth. The next two months it could have a bump in the road, set the rotation. Ang lot of people have bought the bank for the wrong reason, expect toog much from the Trump Administration too soon. So i would say, you know, both of the debaters are right. Jim cramer, youre dead right, over the next couple of years, short term just be a little more cautious. I just think i wish i had enough cat money to buy him for free. Because hes a free agent. I dont have enough cap money. Thats how good he is right now on these stocks. Michael, i appreciate you calling in. Talk to you soon. I know we will. Thank you. Mike mayo. Kevin, its good to talk to you today. Is kevin oleary sticking around . Yeah. Good. Thanks for coming . Pleasure to be here. Im sorry thanks for having me. Where are you going . I got to get back. Come on. How are the kids . Kids are awesome. 1yearold is walking, talking. Kate is sticking around for the trader blitz. Weve got to go. Get the 1yearold watching mad money. Heres what else is coming up on the Halftime Report. Activity pointing towards a big point in the stock jim cramer has talked lot object. Jon najarian is tracking trades in that name next. Plus, one wall street firm changing channels giving netflix a big upgrade. Before the break, our partners at kensho show the s p has jumped almost a full percent on average in the week before a fed decision within a rate hike cycle. The russell picks up a quarter of a point. The Halftime Report with scott wapner is back in two minutes. When ou have 4. 95. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. But who you invest with. Duexperience our mostand perefined models ever. T, including the ls, lx and es. Experience amazing. I work with people everywhere on sea, on land, and in the air. Inspecting towers way up high avoiding turbulence in the sky. Personalizing treatments with dna and recommending who should play. A dress that thinks, which crops to grow, tax prep to help keep payments low. You can find me on an oil rig, i answer questions small and big. Hello, my name is watson. Welcome back to the Halftime Report. Shares of netflix on the move today after u bs upgrades the stock to buy. Raise the price target to 175. Mixed firm, the most bullish one on the stock on the street and thats why we made it your call today. What do you think . This is hard. I love netflix. I off look at pieces like this and i want to see at the beginning mia copa, i missed netflix for the last but i dont think im too late. He does say the international is going to be better than expected. He uses that. Where is the, you know, heres why i didnt like it. And let me tell you why ive had a change my mind. Because otherwise just comes in like, hey, really likes it. This stock is up a lot. And i think that you have to put a little disclaimer on how come you didnt like it. The reason it is up is because i think many expected the international to underperform. Yes. Thats the surprise. So that has taken the stock from 120 to 140. I agree with you. Now hes coming in at 140. Hes saying, okay, 175. Now its a buy at 140. I dont think if youre long the stock that takes you out of it. I think you Pay Attention to what hes saying and you have a strong Risk Management strategy around it. But the international is coming around. Thats clear. And contentwise its a lousy quarter for them. Heres the problem. This stock should be up a lot more today. Its barely up. Its a really ugly candle being formed right now. And i would watch the close on this thing because if they get an upgrade like this and the stock ends up in the red for the day it really tells you that probably this stock is going to be stuck in consolidation at best. Reversal . No. Look, heres the thing with netflix. Heres the thing with netflix. This is now a stock selling 26 above its 200 day. This is a very extended name. Its had a huge run. Its 68 times forward earnings. If it cant go up on an upgrade like this where the guy has been barish for a long time, you know, its the kind of thing where you say, all right, i buy it here. Play the momentum but there is no momentum. Kevin oleary . Great idea. I always felt this name has an artificial bid underneath it the assumption mean that disney will buy it. If iger said ill never guy it it goes down 15 because its crating at a crazy price for content maker. Its not just a pipe anymore. It takes capital risk make congress tent. And that has always been a risky business. Nobody looks at that at all. Every quarter they spend more making original content with the idea of being its got such a long tail someone will watch crappy content. I dont think thats the case. I think it starts to have more risk as it takes on more of its own content. The disney is not going to buy it its going down. If disney tries to buy this company im shorting disney. Me, too. I own netflix. Content, the great thing about this is that renew one of the things that makes it so that you feel good about them is that they had so many hits. A hit is being described as something renewed. Were all watching blook mirror right now. Black mirror, 28th century twilight zone. They can do it year four, fooit, six. These are hard for broadcast companies to do. Their success, which is almost like machine learning, is rather remark an. Owner of the the shares you said. I do own the shares. You do. I do. Im staying with them. I dont think theres a chance disney buys them. Its way too diluted for disney. You can buy people to generate content. Its not crappy content. Something for everybody. Yes. Thats your view but clearly not true. Theres so much more cable cord cutting going on, so much over the top, theyre on every medium now or sure to be. The risk i would issue i would say with this, why nobody is filing, bs upgrade. Of course hes got to come in with the highest level on the street, otherwise it makes it even worse. You cant justify coming in at 160 and any my view is he wants to be in there case they do get taken out. Why couldnt he have waited for a couple of down days . He couldnt wait . I would say apple is the best buyer out there of this. No way. Youre out of your mind. No way. I would push that thing to them so far. Talk to the hand, jim. Theres no way theyre buying this company. No. At presumably a premium to the 130 multiple trade. I dont think they will do it. I think the best would be the only likely buyer. No buyers. Youre all making the assumption it needs a buyer. Thats right. Goes back to the disbeliefs surrounding the ability to grow the international. It goes back to the previous quarter all the analysts note saying, hey, its not that the content is not strong. Its just that q1 the distribution of new original content is going to slow dla matically. Doesnt matter how good the content is. Discrepancy between the lionsgate and this is ludicrous is its just a content play. This is about user growth. Distribution. Distribution. We should get to snap. Lets go get to snap. Neg 2i6 for the First Time Since the ipo. Barrons over the weekend, giving back 7 . Barons calls the valuation ridiculous. New feature. Disappearing in capital gains. Millennials love it. Youre talking about the stock price being low. Cut in half. They say about about facebook another 20, going to 10. I dont know about that. The sale does talk about theres no profits at 2020. Look, to buy this stock is not to believe that the average daily user is going to go up live. Theyre going to reinvent the site. Theyre going to reinvent it as mtv because putting a lot of money out to buy content and people say this is the way i can reach the 13 to 1yearo8year. You have to be belief that is going to happen. 13 to 18yearolds arent that great advertising. No. They like to avoid ads better than anybody in the world. This feels like the stock where the Young Millennials will lose their innocence when it comes to investing. Investing based on the name and their experience with it having no look at the fundamentals whatsoever. Im not happy about it but theyre going to learn this hard way. I wish they would say i really like stocks if youre on facebook and you see one of theirs mobile ads, 2013, right about the Time Facebook hit their stride on wall street there was a call to action. You could click something, you could subscribe to something, sign up for something. And if you encounter an advertisement on snap, theres a very pretzel like process that has to happen before you can take action on what youre seeing. So you might see a fitness model with her new weight loss tea and you might want to buy it. You have to go off line out of snap and find the product. That is not the same as facebook. Crumby playing for ads. We dont know if they work. We hope they work. It would be great if they did. I love the ads. Oh, geez, teeth whitening. How did they know that . Some who said the stock is definitely going through 30. They know that because they look at the image and say this guy needs teeth whitening. The stock had momentum on its side. Or comcast came . Going through 30. Sure. Im wondering, does the doesnt go to 30. Does the barrons reality check sort of reset where this stock there are only 200 million shares in the publically traded flow. If somebody big wants to get large in snapchat the stock is going higher. Most people want to invest on things like valuation, et cetera. How about the only reason this could go up is further quick adoption, not necessarily zero sum versus facebook and google. Would anyone going twitter and short snap . No. No. Could you go long facebook and short twitter and snap . I dont think you want to short snap. I think its look, i dont want to be in it. Okay . I said it the day of the ipo. You need to have it like when the lockup expairs then we go in there. But im just saying that no one likes twitter at all here. Isnt that interesting . No one. For good reason. The president does. True. He cant monetize it though. He did monetize it. He won the white house with it. The only person who monetized twitter p he did it before jack. The post election rally has taken stocks to the most expensive levels in nearly a decade but Cnbc Mike Santoli is making the case for why sky high valuations are not likely to stall this market valley just yet. Mike . Not just yet, scott. Basically my piece on cnbc pro is trying to ask andness the question of why investors are perfectly willing to to late valuati valuations. Bull markets tend to get up in the zone. High teens. 20 times multiples. Were basically there. 18 times forward s p estimates. To me the reason theyre okay at this take is that investors are looking to a rebound in Corporate Sales and earnings from negative or flat to positive through this year. And to me everything is about is the s p number for 2017 roughly achievable or is that estimate of 131 a share going to trend lower throughout the year . I think that the idea is anything that happens policiwise or Global Growth wise that allows you to think thats a plausible estimate is okay. We were at 17 forward earning in the spring of 2015. What we didnt know then is we were about to enter an earnings recession. Hold that multiple and have a 15 pull back on eerng recession. 23 earnings are on the uptick youre okay. Look, people have to be willing to except lower long term rurnlgs to pay up for stocks at this level. I think these willing to to it because of demographics or lack of alternatives, thats where they are. Like mike, its jim lebent l lebenthal. Im not so worried about the valuations. I agree theyre not nosebleed. Investor sentiment surveys are very, very high and have been for some time. And that seems to be whats reflected in these higher prices. I dont know at this point its kind of hard to identify where the next buyer is going to come from with the sentiment surveys as high as they are. Bonds. Jim, i agree with you in terms of the tacticals field position of this market and probably what were seeing with in give back today is some of that has to be worked off. I dont know that weve gotten to sentiment levels that tell you weve had some climatic peak but i think you have to digest that and theres certainly enough fluff in there. And also the medium piece, its also trending high relative to history. Its not as if theres a lot of expensive stuff and a lot of cheap stuff. Pretty much everything is fully valued. Again, its a pretty poor timing tool. I think you can have a 3 pull back work off that sentiment and then see where youre at. But that would be a gift. 3 would make it so that i think a lot of people would say, ive got my chance to get in to eaten. This is finally, i can this is caterpillar at 88 with the numbers getting better. Going back and forth with the ling center on that one. I think that class a trucks have come back. This would give you a chance for parker, thats what people want is a chance. When the chance comes, they dont talk the way youre talking now. No. We dont have to. We will hear. We will talk about discipline and buying down 3. Having such a different market than we have known historically. Like we said at the top of the show you think the market is going down 35 . Then you care about a high valuation. Algorithm 80 of the daily trading volume, careless about what valuation is. When you talk about Investor Sentiment and it being so bullish, think about the last couple of months, who expected a recovery in europe . Who invested in europe . Who invested in the merging markets at the beginning of the year . You did. I see Money Managers all the time who are chasing the tape higher because they were underinvested in all the asset classes. Youre right. But you know as well as i do when investor surveys get this high for this long its a precursor. It doesnt matter. Really not not going the convince me. It changes on a dime though. Heres the market. It goes by the last weeks performance. Sentiment will change the minute you a down week. 2017 market. Im not saying were going down 35 . I think our economy is strong. Youre nowhere near a recession. But a correction 5 to 7 on 110 . Grand conversation. You guys were talking about a half down today like its the end of the world. No, no. No. Jim, dont you shake your head, scoot. You were, too. 2017 market has now become something did you fall off the tractor this weekend . In market is something very difficult for you and i have whob around 30 years to understand. Its a market in which one month ago nvidia was 20 higher than it is today and not one thing about the fundamentals changed. Thats the market that were in right now. The same thing can occur in the overall equities moment in an instant. There is something that has changed kevin . There is something to change. Listen, many, many, many people manage balance mandates. Now for the first time were contemplating not one, not two, but maybe three fed hikes for a total of 75 basis points. Nvidia . You do not put capital kevin, its got nothing do with the fundamentals of nvidia. Youre willing to pay way more for equities than you should be because you have no home on the fixed income side. Kamt tall flows are favoring equities they havent in a way in two years. I cant find any one of my managers to put any work in any credit, any bonds. They just keep buying stock. Thats whats going on here. Thank you for joining us today. See you back here on the desk. Take care. All right. Kevin oleary. Thats when you think the next leg, if you will, comes from. Bonz. I think fixed income is seeing inflows. Whats he talking about . Did you see the velocity of the decline in credit instruments, sovereigns in particular, because i think you will see it, you will see more money going to equities. But i also believe that like jim when the market trades down maybe 3 to 5 , who cares. People will come in. Theyll keep buying and take it past lower levels. Let me make one quick point to round it out. Make it quick. Theres a graveyard on the corner of wall street and broadway. Asset managers, it matters a lot for the tenyear period where you start, one month, two months. Anything goes. We started into the 07 decline at 17 1 2 times earnings on the s p. So you are never going to get a sell signal or a buy signal just on valuation alone. Should not even be a conversation. Mike, thanks for joining us, too. Mike santoli. Make sure you read mikes piece. Cnbc. Com pro. More halftime is coming up next. My business was built with passion. 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 . Various shouting heigh ho its off to work we go woman on the gulf coast, new exxonmobil projects are expected to create over 45,000 jobs. And each job created by the Energy Industry supports two others in the community. Altogether, the industry supports over 9 million jobs nationwide. These are jobs that natural gas is helping make happen, all while reducing americas emissions. Energy lives here. Hi, everybody. Im sue herera. Heres your cnbc news update. Iraqi troops continuing to move into isis held western mosul. Iraq releasing video today of front line fighting on sunday that included six isis suicide car bombs, all were destroyed though before reaching iraqi forces. A country wide famine has swept across so molia because of an on going drought. 110 people have died in the southern part of that country. Last month the ub said up to 270,000 children could suffer from acute malnutrition. The illinois pet food company is expanding voluntary recall of dog food due to possible contamination with the euthanasia drug. Last month evangers dog and cat food recalled hunk of beef au spa jus and now brazed beef chunks and pulled beef food. Ford is testing 3d printing of large scale car parts. For consumers itth i could mean ordering customizable parts and the 3d parts could weigh less which could help the cars fuel efficiency. What was that old slogan, parts is parts . Anyway. Thats the news update this hour. Ty is back and weve got him. Hey, ty. Sue, thanks very much. A new travel ban announced this morning so will we see a new management style in the Trump White House . Fears about north korea sending stocks lower today. The four biggest risks to this record rally. Well take them apart for you. And a massive spike in human cases of bird flu. The fallout on food stocks and more. Halftime report is back after this. Now on the next page youll see a breakdown of costs. What . Its just. We were going to ask about it but we werent sure when. So thanks. Being upfront is how edward jones makes sense of investing. What if we could bring you by having better values . At blue apron, we work directly with more than a hundred family farms. So instead of spending on costly middlemen and supermarkets, we can invest in the things that matter most making farmland healthier. Cutting down on food waste. And bringing you higher quality, fresher ingredients for less than you pay at the store. Because food is better when you start from scratch. Blue apron. General motors hitting highs not seen since march of 2015. After striking a deal to sell to European Unit this weekend. Gm is a member of the cnbc iq100. That index is up 32 in the last year. For more on the cnbc iq 100 go to cnbc. Com iq100. New bikes arent selling guys. What are we gonna do . How about we pump more into promotions . Nah. What else . What if we hire more sales reps . Nah. What else . What if we digitize the whole supply chain . So people can customize their bike before they buy it. That worked better than expected. Ill dial it back. Yeah, dial it back. Just a little. Live business, powered by sap. When you run live, you run simple. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your fure. 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. It is time for unusual activity. For that we go to chicago, John Najarian from chicago. Double dose, too, doc, what have you got . One of jims favorite ceos. They came in and bought the may 90 calls and sold the 75 puts to pay for it, did that almost 10,000 times, almost a million share equivalent. Thats a pretty big, bullish trade, obviously just out there in may. Pretty quick time theyre expecting it to happen in. Also, apple, aapl, big trades. Two really huge ones. 30,000 contracts, two blocks basic average price 3. 20. Thats 19 million in premium, judge. Theyre buying at the 145 strike out in june. Theyre betting over the next hundred days that this thing explodes higher. Who knows whether its Dividend Increase or they do have a march event they havent announced yet that everybody is speculating on. Nonetheless, big trades. Both those two stocks today. Youre in both . Im in both. Ill probably be in the sales force trade two weeks to a month. Apple trade will be a longer, at least a month, i would say. Jimmy, your thoughts on sales force, which you probably know better than anybody . Alphabet, google, needs to get away from a model thats advertising base. People feel trapped. Thats why theyre doing autonomous cars, going very, very well. Dividend, the snap is paying. If you want to own it, just buy sales force. Take 80 billion and buy it. Does Mark Benihoff want to sell . Loving the independence of it. They have a close relationship. I think its up to benihoff if he wants to sell but alphabet needs sales force to get a higher price. How about apple . 145 strike on the calls that doc saw. The stock has a lot of momentum, it seems. Yep. You are on board now . And i guarantee, given how they set up that trade, theyre thinking the same thing. That will be the upgrade cycle, tenyear anniversary. And they want to capture the buying interest. At least the momentum going into it. Thats why they did the options. Well take a quick trade take a quick break, come back with final trades after this. Doc, thanks, man. 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. Deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced. Our senses awake. Our hearts racing as one. I know this is sudden, but they say. If you love something set it free. See you around, giulia 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 know you have a dedicated advisor and team who understand where you come from know you can craft an Investment Plan as strong as your values know that together, you can establish a meaningful legacy with the guidance and support of your dedicated pnc wealth management® team. Tonight at 6 00 eastern, mad money with the man to my right, jim cramer. You got patti doyle on, too . Yeah. No cheese button for me and my kids, vegetarian kids. Garmin. We featured them on mad money last week. You did a big bee piece on it. Love garmin. Anybody has a little boat, your garmin is everything. Not kidding. What about your tractor, do you have garmin on your tractor . I dont. Surf and a lot of microchip. Trimble used to be a competitor. Apple, all these guys are competitors. Do they really have the lot of different what i would say recreational uses. Its a really very good model. They figured it out. John deer and garmin . A lot of gps and telematics in them. Thats what im saying. We bought a tractor. Very quickly want to get this stock in, fastenal, fast. This stock has been tracked just below 50 almost the entire time. Has just broken above over the last week. This is a stock that now really no one in it has a loss. Everyone is up. There arent any natural sellers. Theres a lot of momentum happening here. Companies consolidating. This Company Works and i feel badly when people sell all stocks because of trump. This is not a trump sell. Classic sell the news environment, but the price of the stock is perfect. Its smaller, more nimble, more profitable. Airlines. I focused on one thing, delta saying no capacity coming on. Dead right. He joey . Palo alto. Need security. Great stuff. Thanks, jim. I like cat. Power lunch starts now. Thank you very much. Im brian sullivan. The tweeter in chief returns. 140 reasons why the market laser focused on the president. We are live at the white house ahead. Plus, are we headed for a showdown with north korea . Kim jongun rattling Global Markets by firing off four missiles. Were tracking the fallout ahead. This one stock definitely in need of a hero. Camera Company Getting hit hard in todays session. That and so much more coming your way as power lunch starts