Eighth straight decline. But it is those financials that are the big story this hour. The worst month for the banks now in more than a year. Josh, what is this about . Is this all about rates, which arent doing what people thought they were going to do. I think rates is in there. Deregulation is in there. Weve been talking about this stuff for a while. I would point out, actually, though, that beneath just pure price action, momentum on the sell side is stating to slow down. Take a look at Goldman Sachs. Starting to form a beautiful hammer. Of course, well see where she closes, but that would be the type of thing youd want to see, to say okay, enough is enough. Also, scott r bear in mind, financials are still the Top Performing s p sector going back to the election and quite frankly, by a lot. So, yeah, theres been damage here. Along with a lot of other down 10 . Morgan stanleys down ten. All of this taking place within the last month. We broke down last tuesday i thought was a consequential decline than weve had in the past. We have not recovered at all. The problem is that youre getting this sell af at a time S P Companies are in that blackout window. They cant buy back the stock thats been important to lifting rebounds in the past. Does it mean a dramatic de . No, just means we might be in the mind set until earnings. Were going to have to reset once again. Do you step in and buy here today . I dont think you do that either. I think the most important thing is getding the calendar the to earnings. Kevin joining us on the phone right now. The chairman of the etfs. Youre not surprised i take it from this move move in the banks. You said the regionals were going to take a big hit. Many are among the hardest hit. Why . Because at the end of the day, its a combination f concerns on earnings and deregulation and on stalling, tax relief, which all come compressed the potential of what these names could have done in 2017. It looks to me that you start, you have to start dif wrennuated the risk profile of your Financial Sector holdings. I can see an argument for dipping your toe into goldman, but theres no reason to touch the radio active waste now inherited in regional banks. These are going to go down another 10 . Maybe even more. Look at the charts of these things, theyre going to separate to qualify financials because their Balance Sheets are really leveraged and the deregulation, lend more because their asset base would have changed given the them more power, more leverage. This is going to happen to late 2018, 2019. Thats always been the case. People treated these as if they were the same quality as the Money Center Banks. The these are really very high risk products. Very, very levered. Incredibly weak in terms of earnings possible. And theres a lot to downside. I was negative before, 10 is nothing. These can go down another 15 easily. To that point, youve got fifth third down 11. 5 in a month. Zions down double. Lincoln national, keycorp, hunt l ton, sun trust. You can go down the list. Theyre all down. Minimum of 10 . I favor the Money Center Banks over the regionals. Having said that, i disagree about the damage yet to come on regionals. Heres why. This is taking place because of what i think josh mentioneded. Why are vated come down . Because First Quarter gdp is blocked. Thats going to turn around. Fridays Action Congress does ng to rederail the trump agenda. Theyll get through tax reform and this economy will reflate. It is hard to see downside. What makes you think getting the other part of the agenda through is going to be a cake walk . Not saying its a cake walk. I think it will get done. Heres why. Because its something both side of the aisle can agree on. Its something the country needs. The these are the guys that are the fiscal hawks. You just lost a trillion dollars. So now, youre going to have to be deficit negative and if you do that, you need 60 votes in the senate, so to me, youre a lot less likely to get any reform. Chuck schumer i heard on television this morning certain lip didnt sound close to wanting to come to the table and push this thing through. Market rs banking on. Make sure youre not mixing things up. You mentioned the senate in 60 votes. Freedom caucus is in the house. The house and republicans in the house have taken a weet booeting and they keep going to the reelection having nothing to show. They know theyve got to get something done. Tax reform and infrastructure. Were veering off path of the banks. Do you buy the banks . Or is kevin correct . I think josh correct to point out Goldman Sachs. Clearly, thats a standout name. I think kevin to point out the regional banks have lost momentum. I agree with that completely. Toxic waste. I dont agree. I agree that they have lost momentum. Thats what i said. I think that oil has lost momentum. I think if you look at tcbi, texas capital, if you look at cullen and frost, cfr, tloez energy exposed regional banks where you can make a play in the Options Market in a Risk Management strategy to buy some puts underneath the market. Oil is a problem now. Its not going to the downward move in rates. Look at where the tenyear is today. Youve got gunlock saying its going to go to 225 if not below before trying to stage a rebound. Understand that the problem is is, they havent been that volatile lately. Theyve been going down. Not true. You see the ten year . Im saying wee were talking about a month. Rates are inherently volatile. Scott, since last summer, understand the rate on the twoyear treasury doubled, it doubled and right now, it sells where the eight on tenyear was last july. Theres volatility in the rates market. I wonder why. We had an election. Didnt accounts of whats going to drive gdpp. Possible trax reform in the air. We have the fed out there. Of course rates are volatile. So look at one or two weeks and construct an entire narrative for how you should position a portfolio for the balance of 2017. Frankly, i think thats a loser. I think theyre a long here. Because in general, people may have gone from way under weight to the at best. Still a ton of money looking to buy financials and get overweight. I think Regulatory Reform is more than tax reform. Bigger picture, this is really important. Banks are selling off, regionals are selling off more. Thats fine. Theyre still up a lot from the election. But bigger picture, you have small caps now negative on the year. Still outperforming since the election, but underper foming big time since january. Youve got now only 56 of stocks in the s p above their 50day, so you have a lot of lost momentum in almost every sector and thats the worth levels for that figure, so you have some damage. Not just banks and not Bank Specific story. Its a little bit of bloom quomg off the rose. Our point, well, thats our point. Not me. Thats my point. I bought into this trump trade thing and went head over heels. Paying the price. Zwl zbl youre 2 off the high. Kevin. Yes, my issue is with on the financials, if goldman is down the same percentage as some regional bank, which is basically what happened and youre looking at going back into the sector now, you havent seen the remainder of the downside yet. These are not the same risk profiles. On the downside, that will not be the case. The small regional banks are going to go down more than the Money Centers and the Goldman Sachs t. The fact theyre come led now, down 10 each, makes me worried if you stayed across the board and equalled allocations like goldman, youll lose a on your portfolio. I would be coupling these completely. I think they need another 50 down. That wont be the case for Goldman Sachs or some of the money centered banks, but these regionals have been treated as the same quality and major names and theyre not. They have really very risky profiles on their Balance Sheets. If energy stays below 50, lets talk about the junk coming due in the Fourth Quarter of 2018 of which some regionals own a rlot of this stuff. Youre missing the big picture. I dont agree regionals are being treated as though theyre the same quality. I think theyre more levered to the things people were excited about happening. Thats not the same as saying someone saying these are blue chip Money Centers and guess what, a bank in texas that does 80 of its business in texas is a blue chip. I disagree. I think it was more greed than anything else and they fought, this is how i get the most bang for my buck. Let me own the companies most leveraged to tax cuts. Let me jump to brian. Breaking news desk. Something regarding bill brooks. Yeah, i do. In fact, just in, according to my source, bill grosds gross has filed a request to dismiss his lawsuit against pimco. Because they have settled, guys, my sources say that settlement, gross was asking for 200 million is between 75 and 100 million. Bill gross will throw in a couple of 10 million of his own money and that money will go to charity, the sue and bill gross founation. As part of it, sources at pimco will name a founders room at pimcos headquarters after bill gross, so bill, obviously filing that big lout, alleged a lot of different stuff in 2015. Sources telling me the paperwork has been filed to dismiss that because they have reached an amicable settlement, between 75 and 100, a name of a room after bill gross. Bill will kick in more money and it will all go to charity. So looks like the drama between bill and pimco has come to a close. Back to you. Thanks so much. Back to the mat at hand. Real question now is whether this trump rally becomes a prolonged trump slump. Its not. The markets bouncing ae ining todays lows. Guess what, the worst came to pass. Were down. 2 on the s p 500. I bet you by the end of the show. Its green. Sorry, ivb. If it closes where it is now the last three days of market activity. All the signs look great. Like at microsoft, the semiholders, this is not indicative of a market panic because the Health Care Bill didnt go through. Want the thank kevin for jumping on the phone. Go ahead. This is the beginning. Were in the seventh inning. You may get another shot toward it is highs, but then you have to lean into it. The reality is people are dramatically underestimating how difficult this tax reform is going to be and i dont think people understand. This is, theres a process here thats going to make it very difficult to make this deficit neutral. Youre painting the opposite scenario that you were laying out. So respond. Look, there are things they could do to make this incredibly hard. For instance, the border adjustment tax is the worst idea out there. Hopefully, thats a canard they give up. However, just cutting Corporate Tax from 33, 35, down to 28, 25, that is an easy sale. Wheres this money coming from . You know what theyre theyre going to, instead of having it static, theyre going to have it dynamic scoring. Trumps going to say if we cut the tax rate, the economy goes up. If youre not putting a bill to the senate thats definite flute ra neutral, you need 60 votes to get that through. No, you dont. It will be reconciliation. You can only do reconciliation point is, you think its not going to be that easy. The democrats are not going to, not going to jump over and do tax reform. Schoolhouse rook. Everybody is focused on the fallout from the health care failure, what it means for the rest of the agenda. We should also be focused on earnings because the drop in the market comes on the eve of earnings season. Forecasts show a strong pick up for quarterly numbers. Bob pisani, tell us about that story. Good to see you. The bulls are hoping a strong earnings season may provide a martial stabilizer for whats likely to be a rocky debate. Now, look here, earnings for the s p 500 are expected to be up 10. 4 this quarter compared to the same last year. If that holds, it would be the biggest gain in nearly six years since the Third Quarter of 2011. That could change the conversation about an entirely comfortable rally pushing more towards the mund mentals. First, the two biggest sectors, technology and financials are said to deliver earnings gains of roughly 15 apiece. Those are huge numbers and energy stocks, the other key piece here, after two years of declines, theyre expected to e report positive ironings over all, so right now, were in a delicate situation. Be nice for ail to get over 50, but so far, the earnings expectations, very strong for this quarter. Thanks. Then the question becomes whats more important. Tax x in the trump agenda or earnings. People are talking about earnings as much they should. Clearly. In january, we talked about earnings quite a bit and i think that was a catalyst for the market rally. How about the european recovery . How about emerging market, up 12 year to date. Did anyone predict that . I know josh was on the story. How about the nasdaq, the way it has performed. Sometimes, the best trade is no trade at all and i think thats where we are now. Yonk the market is going to fall precipitously. I dont think its going to rally anytime soon. I think were in a sit on your hands then. Because thats the thing to do in trading. Yeah, i understand that, but then tell me what youre going to get back engaged. You have to wait for the market to give you signals. You have to wait for a con fluns of technical indicators and you have to wait for fundamentals. Or one other thing weve not mentioned, which quite frankly, ive been saying i think is the trade of the year. Look at the relative performance of International Stocks versus u. S. And recognize you have other options besides trying to figure out the next 3 of the s p. Vgk turned green early this horng. Eem looks sick right now. Every time that dollar falls off, een gets more money and more flows. There are things making people money right now. Even if the u. S. Rally stahls here. Dollar, rate, oil, your three indicators since november. They remain. Its no coincidence that oil broke down. Market broke down or stalled out with it. Saying as long as as the dollar stays weaker, as long as rates continue to move lower, and as long as oil and as long as the dollar is at 47, as the dollar moves lower and oil does not rally with it, what is that telling you . Dollar lower, oil should be higher. All right. Heres what else is coming up on the halftime report. A day of big calls on apple and snap. Next up, jpmorgans apple watcher and a Rare Television interview. See what hes saying about the trend for the tech giant and 14 analysts initiate coverage on snap with a diverse set of ratings and price targets. Is the american investor about to miss the boat . Before the break, our partners report on big drop days, jpmorgan is up on the punching bag. The stock falls 1. 7 on average when the dow losing between 100 and 200 points. It falls 2. 7 . Global and jpmorgan when the dow falls more than tloo 30 0. When you buy the day after, jpmorgan returns 1. 8 a month later. Cat pill lear jumps, dow returns 30 days after a big sell off. For many, go to cbs. Com pro. More halftime in two minutes. Jooix jo oi at fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. When a fire destroyed everything in our living room. We replaced it all without touching our savings. Yeah, our insurance wont do that. No. You can leave worry behind when liberty stands with you™. Liberty mutual insurance. Were back. Shares up since hitting a low in 2016. Jpmorgan sees more room to run. That firm reiterating apple at overweight. The analyst who made the move is live with us in san francisco. Rod, are you there . Good to see you. Good morning. Im here. Sfl i think its the first time youve been on our program, so welcome. Your note got us talking. You say street expectations for apple are too low. Yeah, we think this cycle has been talked about a lot. But it really still is underappreciated when you look at how the market is forecasting numbers for last year. So we think street numbers are still too low. Our earnings number is 15 ahead of the street con ssensus now f 2018. All built around the iphone. Thats where you think the expectations should be raised. Yeah, thats right. We think that potential for upgrades here is very high. Weve got about 260 Million Units forecast for the next fiscal year. Thats up 17 on the last year theyre going to finish out here in september, so, we believe theres a lot of potential for momentum on that new iphone. Now, it e depends on apple delivering a good product, but we see a lot of evidence there is a good product here. We debate the Services Side of the business all the time. How do you think about that part of apples business and how you look at the whole model . Yeah, i think thats a pretty challenging side of their business. We are not super optimistic in our forecast there. We think theres a lot of potential for apple, but so far, they havent shown themselves able to capitalize on that. That doesnt mean they wont in the future. Theyve got a lot of talented people there, but still a lot of challenges. Its joe. On friday, i was talking with a Trading Group there, mining for strategies looking forward and they mentioned apple. They said we know the fundamental story, we know about the lift, but is this type of name that in a down market, will outperform the s p and in an upmarket, will outperform the s p baseded on its current fundamentals. You agree . I think it ought to outperform given the kind of earnings we see. If you beat earnings by 15 , doesnt matter so much what the markets doing. People are going to take notice of that. I think the stom will outperform. What does for apple . Are you factor iing that in qul when you look at the companys numbers or look where the stock price could go . Not too much, although i would say that the company has a lot of cash offshore. We believe one of the opportunities for the stock to rerate is apple paying a higher dividend over time and of course, having that money onshore gives them the ability to do that. We would see it as a positive for apple. Rod, ian here. Can the stock work just on the services alone . A lot of people have figured out the case here at 140 is services, but if the iphone doesnt work, can the stock work without it . No, honestly dont believe, i take little bit of exception to that opinion. I dont believe that it works on services. In fact, i dont think thats why were trading where we are. I think were trading here because people are optimistic about this next iphone cycle. People still have a lot of questions around it, but when you look at the iphone cycle, i dont think people have fully factored in how strong of a cycle this is going to be. Weve had two years of weak replacement, so were sit seth up for a good cycle. Its josh brown. Your note mentioned the iphone pro, which i dont see a lot of that in the media. Youre talking about a glass front and back. Wireless charging. Which is like the most exciting thing ive heard in years. And youre talking about things like 3d facial mapping, it just sounds cool. Is that going to be enough to sell a thousand dollar phone in numbers that will matter or is that just the bells and whistles that get people exciteded. You missed one thing were thinking, which is structureded light camera. So we think theyll put a main camera on the phone where you could refocus photos after the fact. So theres some good features on this device and a new factor. I think it will be enough to sell a lot of product. By the way, in addition to the really highend phone, we think be two other skews that will be glass front and back wireless char charging. That will draw a lot of people in. Thanks for your time today. Thanks, guys. Rod hall, j. P. Morgue ben, the analyst on apple today. You know, i think about this stock lot. Its 750 billion market cap. The question does come up, can it be a 1 trillion stock. Heres how it does. Rod has earnings estimate next year. At 13 times that, you get it to about 165 share price and thats about 900 billion market cap. Ill leave it for the technicians to say if that gets sucked up, but i think its easy to see that. All i sigh is run way ahead of us. I wish pete was here was that was as sobering a take on what the Services Business is and can be that weve heard. From any analyst lately. Dont you think . I do think that, but i sigh what pete has talked anlt. I think theres an upside trajectory in terms of the service ises business. For me, it goes back to we know the fundamental story with apple. In an up market, we know its going to work. Question becomes in a correction, is it a source of funds or viewed as a defense. Source of safety. Right. A great way. Two things. This idea that we can delineate between devices and services doesnt really work in practice. Theyre very intertwined. The more product apple says on the hardware side, the more uptake. There are no users of Apple Services not on an apple device. So, clearly, if you think theyve got a phone thats compelling more so than the last two upgrade cycles and you think were going into this cycle at a four year high in terms o f the arch age of devices that people hold, which the nlist says are 6. 4 quarters, those are very sold phones, if you think this is going to be next one to really drive the cycle that gets everyone excited, then surfaces are going to do better. If you dont think thats the case, you can want say services are going b to be great. Think about this. Think about this. A lot of people want to equate Apples Services with Amazon Web Services and its not. Thats the point. Companies and theyll do together and grow with the iphone. I feel like i should leave now. I dont think im going to top that. Coming up, jimmys wall street firms taking a place on snap. 14 analysts initiating coverage on the stock today. Watch our call of the day. Its next. Its next. 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. Snap moving higher today after 14 firms initiated coverage on the stock. Eight of them at a buy rating. Steve among those still on the fence though. He began Coverage Today with a hold and squloins us now on the phone for our call of the day. Welcome back. So, citi has a buy. Credit suisse outperformed. Morgan stanley, overweight. A lot of your buddies are bullish. Why arent you . Great franchise, a lot of potential to be b a significant consumer text message platform. Had plenty to execute against and still a young company. As support of that, its a 400 million revenue business last year that we project to be over 11 billion by 2025, so theres a lot to execute against and as a newly public company, theyre a unique supply and demand in the First Six Months of trading, so were a fan, we just think being patient is the right approach to take right now. Are you mostly worried about user growth and engagement the way they can monotize what they have . Whats the overriding factor . I think competition has been something thats been debate nd the media. In the past few months and thats something the company will have to prove as false as a risk and montization will likely take care of itself. Others have come before it. The key debate zboing to be sustainability, the dprout of users and these high value markets that snap is focused on. What do you make of the positive comments that david teper had, saying he owned the stock, had it, maybe didnt like it as these levels. Maybe out of the get gates. Got a little ahead of itself. Did that factor in to the way you think about this company . I did hear the comment. Generally agree with the positive perspective f. Go through our report, its optimistic in terms of the potential of the business and just in terms of having a stock that went public at 17, ran to 29, still about 40 where it priced 25 days ago, so just being cognizant of that. Especially like i said early on with Companies Given the magnitude of what happen frss from a supply and demand dynamic, sometimes, you can get a free look without taking much risk. Your price target is pretty much where we are. 24 bucks. Im wondering how at all your view lib mooib colored by twitter. Youve been dead on the money with what twirt has done and just not wanting to make mistake on another sort of hot social media name that comes to market. Does that play a role . Not at all. I think its a much different set up than twitter. The signs that twitter in terms of the potential problems exi existed very early on. This has a visionary founder. It has a product which you can see the innovation thats begun around it that will only continue, that is very undermonotized and i think the key difference between this and twitter is this company focused on product, which is why the numbers have been so low in terms of financial, where as twitter attempted to monotize a franchise and hasnt really changed since that point in time. Its josh brown. So i think this is what is everyone is wondering. For an analyst covering the company like this, that really didnt exist a few years ago and its a brandnew business, whats the thing on the first Earnings Call that you would hear that would say, you know what, this is a sell. And then whats the thing you would hear on the first Earnings Call where you would say, i might have to up this. This the best buy in space. What are those things youre looking for . Josh, you know, any single earning call on you know, companies that are priced on the duration of a security like this. Its a little bit of a challenge to answer that, but u i think that, i do think users are the key because the profit bability of the business and ultimately, the montization has been proven by others, so overperformance in terms of user growth, time spent or the things you look for in terms of whether this is going to be a wiping franchise or otherwise. Good to have you on. Talk to you soon. Ian, you like the stock. Its interesting in that sure theres a lot of love on the street today. Hes certainly gives a bit of a more muted view though he likes the company, not necessarily where some of the other people see it. Yet the stock ticks higher. And ifz struck by the comments he had regarding what snap has done and where their focus has been. Versus twitter. And the difference between how he saw both. Yeah, im looking at it from a lot of technical ways in the sense that everybodys poured into this on the short side without any proof just because they feel its got to be a short. I see mutual funds are going to be filing soon. Ive got the end of the quarter coming up where im sure guys are going to mark their positions and i would be shocked if the guys blue up blue up if First Quarter of the gate, then youve got a ball game. You can talk about what its going to do. Thats a good point, you would be shocked if they messed up the first Earnings Call. I dont know what the earnings are. Im seeing 11 times sales two years out, so i cant process this in interpreters of what the first Earnings Call should show me. I see an inverted hockey stick in terms of what others are projecting. I think you might be right on the technicals and timing, but i think this is going to be a heck of a short. The problem with that concept is that user growth has begun to desert a as of the littest quarter if you look at the s1 filing. So maybe that reaccelerates, that could happen, but thats probably not a good look if user growth is mott going to be at the same fierce as it was last year. Thats probably not a great moment going forward. Thats what were going to value this name on. Instagram might be more disruptive to snap chat than what people are currently banking on. Stocks highs of the day, almost 5. 5 higher today. Just ahead, we are tracking the traders and kicking off the halftime quarterly report. Were going to break down trades from joe, jim and josh, see you hey did that q1. First up, a quick check on the dow 30. Dow is down 56 points. Dou you want in the lead. Goldman pulling off the rear. G. The command performance sales event is here. Experience exceptional offers on g. Our most refined models ever. Get up to 2,500 customer cash on select 2017 models for these terms. Experience amazing at your lexus dealer. Why pause a spontaneous moment . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. Our 18 year old wase army in an accident. 98. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. Were the rivera family, and we will be with usaa for life. Wont replace 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 Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. The guys there in a second, first, heres whats happening. A new development in last wednesdays deadly attack in london. British police say they found no evidence that the attacker was associated with isis or alqaeda. They do say though he was clearly interested in jihad. He killed four people by mowing them down outside britains parliament. The Senate Intelligence committee is planning to interview President Trumps soninlaw. They want to ask him about meetings he arranged with the russian ambassador, the committee has been investigating russian interference in the president ial election. The world meet Logical Organization retiring two hurricane names. Matthew and otto. They tore through the caribbean last year killing hundreds of people and causing billions in damage. And fearless girl statue which stares down the iconic charging bull statue gets to at least for now. Bill deblasio says it will remain through next february. It was only supposed to be there for about 30 days, but it is a big hit with tourists and everybody else. Thats the news update this hour. Now over to Brian Sullivan with whats ahead on power lunch. Thank you very much. Coming up, the ultimate trump trade. How the president s agenda is evolving and what that means for you and your money. Plus, are low Home Ownership rates hurting the American Economy . And big financial stocks have been slammeded lately. We ask if it its to buy the dip. If so, what stocks. Halftime report is back right after this. After this. Yes . Please repeat the objective. Thrivent mutual funds. Managed by humans, not robots. Before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds. Com. The great beauty of owning a property is that you can create wealth through capital appreciation, and this has been denied to many South Africans for generations. This is an opportunity to right that wrong. The idea was to bring capital into the Affordable Housing space in south africa, with a fund that offers families of modest income safe and good accommodation. Citi® got involved very early on, and showed an enormous commitment. And that gave other investors confidence. Citis really unique, because they bring deep understanding of whats happening in africa. I really believe we only live once, and so you need to take an idea that you have and go for it. You have the opportunity to say, ive been part of the creation of over 27,000 units of housing, and to replicate this across the entire african continent. Adobe continues to move higher and higher. Joe making a bullish call on adobe. January 9th. As the first three month of 2017 come to an end, were holding the traders accountable with the halftime quarterly report. Wee going to review some of this quarters top calls. Maybe some bad ones, too. Joe, adobe, since you sold it, is up 18 . Yes, the it is. On the other side, that was january 9th. I bought the stock under 100. Does not dismiss the fact you were 100 correct. I sold too soon. The reason i sold is stock is my thesis has been this was a company primed to be acquired. As youre continuing to see the stock go higher and higher, you have to ask yourself now, its 63 billion market cap, boy, that is a big take after someone. A lot cheaper. One of the reasons i got out. Love trading the the name. Get back in at some point. Jillmy, msg, february 9th. Said you liked it. Up 13 . I think its got more room to run, scott. Its an asset play. They own the rangers, the knicks, quite a few things. Its worth 6 billion. Theyve got an enterprise value today thats 3 billion, even after the rise we swrus talked about. I think some of that discount is unwarranted. Still holding it. Deere, its up 2 in fairness to you, you had talked about this stock long before. The beginning of this year. Zwl thats a weird day they selected. Its up 34 . We were bullish on it in the summer. At 70, so its up very big, but the 2 , dont spend in one place. Heres the thing. Just the most important take away, dont be looking to buy cyclicals when theyre cheap because thats when earnings are peek i piquing. You dont need a lot of good news. Just an absence of bad news. You said at the time, this is is a stock in a major uptrend breaking out for the first time in a decade. Still is. Im still long. I still like it. Were going to do this all week long by the way. Talk about some of the best and worst picks our gang has made throughout quarter. Just ahead in the blitz, dow chemical, dupont, others, along with the headlines and trades up next, but first, lets take a check of the s p sectors today. Health care is a best performing. Financials is the worst. Down nearly 1 . Back after this. Ba after this. P. 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. i moved upstate because i was interested in building a career. I came to ibm to manage global clients and big data. But i found so much more. its really a melting pot of activities and people. applause, cheering new york state is filled with bright minds like victorias. To find the companies and talent of tomorrow, search for our page, jobsinnewyorkstate on linkedin. Lets do some blitz. First up dow chemical and dupont. The European Commission approving their planned merger. Jimmy . It looks like the merger europe was a thicker hurdle than u. S. Looks like the merger will go through. I think the stock is fully priced in, both of them. Id look at the more specialty Chemical Manufacturers that will have to combine to compete like chemours. Better value. Lets do starbucks. Growth ahead. They rated the stock at outperform. Okay. Its been in a down trend since september of 2015. I dont think this name gets interesting until it gets back above 60 and the down trend is broken. Until then i dont see any urgency. So, joey, viacom could rise 40 this year. I hate these calls. I mean, youre talking about a stock that was 88 in 2014. I think its 43 right now, and were talking about it rising 40. There are so many significant fundamental changes a new ceo. Great, excellent. First move, we have a long way to go. Were driving to california, were only in jersey. A long road to go. Theres a lot of twists. A lot of twists in the road. Lets get the stock to stabilize which looks like its going to be doing. Play a 40 move, play it in options. Buy pete and jons book. You dont think were in indiana yet. I dont think we have to buy it. Were in jersey. The book is free. Amazon delaying opening its first cashierless store. They had some complaints. Who cares . I have prime membership expansion. Its not going to 1,000 by the end of the year. How about who cares, exactly. How about the collecting sales tax . That may be a different issue. Thats a bigger issue. All right. Three hours to the close. Were going to do some final trades next. Missed the blitz or the call of the day with the innajarian brothers in go to cnbc to see the moves, the trades, who is winning and losing. Plus, breaking news and analysis of the top stories. Cnbc. Com halftime report. music plays throughout the power of the nasdaq market. The power of 100 of the worlds top companies. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. What . Pony neighing] 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. This is a fed that will lead markets rather than follow them. Real money. Everybody is looking for 3 on the ten year. I believe thats going to happen this year. But first a rally. Real debates. The market is not climbing a wall of worry. Its skipping along a slope of great optimism. The most profitable hour of the business day. Business is passionate. Business can never be emotional. The halftime report. We close in about three hours. Lets do final trades. Joe, you go first. Josh has gone a good job pointing out its not just about banks, about regional banks. Its about exchanges, its about insurance companies. All state is one of those names. I like it at 80. It technicals look good as well. Josh, do you like the call . I do. I think its one of the better looking charts in the group. Ill point out regional banks. In the first block of todays show, we were told there was toxic waste t. Might represent the bottom actually. Regional banks got down to a 28 rsi are a trolling . I like kevin but it if youre looking at the times who have sold them would have been when they made a new high in price about a week and a half ago but momentum, rsi, had a negative divergence, did not confirm the high. If you wanted to sell, i dont think you sell here as oversold as that after the big drop. And, in fact, theyre filling the opening gap if you want to look at an interday chart. Do you think i was going to let that slide . Listen, im just saying what price is doing. I hear you. I dont control the seas and the stars. This is whats going on. We like the debate. Jimmy . Im going to make it simple. Stocks, be long stocks here. I said this at the top of the show, ill bet the s p 500 is green by the end of the day, possibly by the end of the show. Were almost there. And the reason why is quite simple. People are worried about missing out on the rally. People who missed out on the l rally the last three months why not the pick an individual name within a group that you think is going to help . I like them all. You like them all . I do. S. P. Y. Look, im making it simple for everyone. I dont know what happened with you down on the farm this weekend, jimmy, but thats a different play. Jo josh . I did mine. I shot my whole wad here. I cede my time to ian. Not under this pressure since i was driving a pontiac fiero. Car prices coming off. Big esh use at car max. Im not long car max, all right. I was just surprised youve made the argument you dont buy markets, you buy stock. What im trying to find out is all the hand wringing from last week about this failed obamacare bill was much ado about nothing just like brexit, just like the election. We snap right back. Do you realize how monumental it is he ceded time to you . Thats great. Infrastructure plays as we talk about other stocks on the move, lower today. U. S. Steel is down. We need to kind of reassess some of the specific names that have moved because of expectations of the trump agenda. Ian . Absolutely. I think everything is a risk at this point. You have to crush the multiple a little bit. People got way ahead of themselves and this is a wakeup call now. Agree . Disagree . We have 20 seconds left. Watch the russell. The russell will be the key. I agree with what ian said. Commodities got ahead of themselves. Projection that ironore got ahead. Guys, good stuff. Well catch up with you all tomorrow. Bad jokes included. Thanks to ian, that does it for us. Power starts now. A question of the day, will eight be enough . Today is the eighth straight day for a dow drop. That is the longest down streak in six years. Everybody tries to figure out what is next for President Trump and congress. Could it be a big bet on big league tax reform . With health care in the Rearview Mirror are taxes the next battleground . We are live in d. C. Later, up in arms over will goings. The big outrage involving an airline, a dress code and twitter. Allout rages have to involve social media. Im Brian Sullivan. Power lunch starts right