Yesterday was 2500 executives from Regional Banks in orlando. I was a keynote at their conference and i love to do these things because you learn so much going out, start with a brake light of chardonnay, move to caber nay for dinner, and heres what i learned. This assumption that were going to get this regulatory relief, turn that switch and get instant earnings acceleration, is completely wrong. Heres why. They spent 1 billion as a collective implementing all the regulations into their systems, their logistics, their software, the compliance, the reporting, it took them three years to do it. And i said, you must be really excited about this change that could be coming. And they said, you must be kidding. Were going to have to unwind this whole thing. You will not see cash flow relief. Youll see a bigger spend on our income statements as we unwind all this stuff so dont kpt any good news. By the way, loan volumes over the First Quarter, flat. These guys are supposedly going to give us 7 increase in revenue this quarter . Not a chance in you know what and i think theyre going to miss their numbers left and right. So, mike mayo, youve come on the show repeatedly and said, got to buy the banks. Gone one after the other down the list. Why is kevin oleary wrong . Well, first, kevin, you were with Regional Bank executives. I think its important to make a distinction between wall street banks and main street banks. Wall street banks benefit from a little bit of a trump bump. Youve seen stock markets higher, 6 around the globe, fixed income markets went up a little bit in the First Quarter, youre seeing underwriting pick up. Youve seen some disintermediation from the banks to the capital markets. So if youre not playing both sides then youre not participating. So the large banks, im talking about citi group, morgan stanley, goldmansachs. The Regional Banks are not benefitted as much. Loan growth in the First Quarter at the banks, it was the weakest its been in six years. On the other hand, underwriting debt markets have been pretty good and youll see that at the large banks. Why should we expect the banks to perform any better than they are in the current environment . Pete . Earnings growth. Potential rune growth. I think the loans are going to be an issue for the banks in some case but when you really look and you go by the facts and fundamentals that weve gotten through the last kuala lumpurco quarters, theres nothing but positives Going Forward in any kind of deregulation but this is without that. This is what their nirmz are right now. I think they can still put up these impressive numbers. I think were going to be surprised tomorrow to see how well jpmorgan performs. Kevin oleary is not the only one putting out this negative view. Dick on sidewasquawk box, ano well known analyst, heres what he said boyfrie. I think that you should be getting out of banks. Theyre a very treacherous area to invest in because the theories are simply whacko. To that point. Thats a wise man, by the way. Very wise man. By the way, why is it whacko whacko if its fundamental numbers . I would disagree with dick. I think the word treacherous is a ridiculous term to describe banks have record capital, record liquidity. They can survive not one financial crisis but two financial crises based on the answer me this. When are we going to get bifurcation. Theyre all rolling over the same amount. When, according to your theory, do we see a differentiation . In other words, if im going to put new money to work, why wouldnt i go with your thesis that the big Money Centers are a better bet than the deterioration going on in the regionals . We havent seen that yet. Theyre all rolling over the same amount. That should be worrisome to you, my friend. Ones technical and the others fundamental. Im looking at the fundamentals. In todays paper, did banks get a trump bump or not. You know what i say to this question . You know, its too early to tell. That was my paper. Hes got great props. He always does. I was not told we could bring props. Im going to tear up your computer. Mikes here. They got the bump. Not yet. Are the yankees going to make the playoffs . Its too early to tell. Youve had a trump bump in Financial Markets to a degree. Banks are now negative year to date. Xlf is down 8. 4 from its high. Contextually, it was up 327 frm the election. This is what stocks do. You get some consolidation. Ill talk my book, two of the highest quality banks in the world, certainly in the country, i dont really care about the whole policy debate about trump. Some things will happen, some things wont and then some unexpected things that were not even thinking about will also happen. I think when you buy quality in the space, you dont buy the highest valuations, youre got a nice return of capital between dividends and buybacks and youre in the right space within banks to mikes point, i think youll do okay. Volatility is the price you pay to do okay. People were falling all over themselves. Not me. Drooling at the prospect of doddfrank and all this stuff, Interest Rates going up. To dicks point, two of the big catalysts thats strategists. The current trades if you go back a year, nobody wanted to touch this sector at all. Why do we want to touch any Regional Bank or big bank, oils at 25 and were going to go into recession and all of a sudden the wind came behind your back if you mikes point, were so early in the game. Pick your really good companies, youll have a couple bad quarters, you always do but if youre right on your stocks like a jpmorgan or morgan stanley, a couple of regionals even though theyre not all the rest but if you get the right area of growth and right Interest Rates youre going to do well. If, if, if. Well, thats how the game works. To joshs point. You already had huge gains on the ifs. But this is what happens now its the ands and the buts that matter. The sector thats rallying, even the best performing sector of any given year, its never a straight line. Show me one example. You must hate the 50 bits grind down every day. Not if youre a buyer. Every day, youre losing 0. 5 on these. Say the regionals, theyre rolling over and theyve got lots of downside. I say 15 more downside. Lots of downside. Last time i was on your show, i mentioned a speed bump with the trump bump. That was a month ago. You still havent had tax relief, infrastructure spending, deregulation, i think when we think of the trump bump, not in terms of a week or a month or a quarter but over the next year, so i think people got ahead of themselves in terms of anticipating the pace of these changes. I think thats a good and valid point. Thats the overall point that were trying to sort of ferret out here. Did people get ahead of themselves. Yes. In buying these stocks. Yeah. And what do you do now with the trade completely unwinding to some respects. Two things. Number one, i sat with john malloy and we said lets take out some of the financial crisis, just look at the last five years. The number was almost exactly the same and that was when you have the xlf correcting by about 8 to 10 as josh is correct about, what happens over that next 30 days, next quarter, its basically flat, which is what i think these banks are going to do. I think theyre going to trade sideways until we start to get a hockey stick up into the end of the year. Youre going to go along xlf before the earnings come out next week. No. I am long only one financial right now, kevin, its jpmorgan, and ive overwritten with calls. And i think exactly what Lee Cooperman said here last week, judge, when he said im selling at the money calls and the s p 500, hes not getting out. Im not getting out of jpmorgan. Sold calls, whoops for me but its back down to 84 now. And the call of the sale protected you. I do agree with you that the probably the biggest concern is not necessarily is there going to be tax or regulatory things happening quickly. Its why are c and i loans going down. Why are there huge pockets of the country where theres no loan activity. If this whole change in attitudes is taking place, if Consumer Confidence is high, i dont know if you have an answer to that. Is that seasonal . Are we going to come out of that in the spring . Any three reasons. One is you have seasonally softer loan growth in the First Quarter. Why . Just always . Thats typical. The second thing is there is pause while everybody waits for the policy from the Trump Administration and the third is youve had a degree of disintermediation from lending markets to the capital markets. You will see that in some of the debt figureses that are released tomorrow and as it relates to jpmorgan, youll see it there. Youll see capital markets, youll see great year over year progress for them and for others, the second c would be cost control, theyve managed their expenses quite well and capital return. Did you miss this in the ceo letter . They said theyd buy back their stock at two times tangible i didnt miss that. I didnt see that in any story. Thats great. So theres three cs. And the fourth c is for savings. The overall market, is it any coincidence that the overall market has been spinning its wheels. Not the nasdaq. But wheres the dow. Thats where all the market cap is. The five biggest canompanies in the country are nasdaq. Techs on its way down for the ninth straight day. 7 Revenue Growth on tech and 12 earning growth. Thats the advertisement for going into these numbers. If we dont get that delivered and we already know that energy is going to be soft, health cares only up 8 , that call for 15 by the end of the year, who gave that call this week . The index is going to go up 15 . How the there is no chance thats going to have was that morgan. That was the new strategist at morgan stanley. Isnt it true may be old. 2700 on the s p. If we dont get these financials to deliver what we need, thats the high end of the range, that is really tough to see happen. And if that doesnt work and we dont get tech working, this market is not going to deliver 15 . Those are the fs. You say ifs to us. What do we know about tech . They have killed it in the First Quarter. Right. And now, were going to start to hear a little bit more. Were going to hear from sky works and apple and facebook and all the big tech names. This isnt an if. This is the banks have retraced, theyve come back. The xlf is flat for the year. Its not working. Coppers not working. Techs coming in. Energys starting. The rotation of healthy rotation within the market that weve had for a long, long time, were trading at a very tight range. Even at a 16 vicks thats a 1 move per day. If we earned sf . Were making an s p call at 15 . You tell me the sectors if you dont think its going to come from financials. Im not making that 15 call. Ill take 7 . Which sectors are going to deliver a 7 to 10 growth. Financials, tech, and probably going the get some energy. Health care. Throw in health care. Now all of a sudden it might be 8 or 9 . Secular. Irrelevant to the trump trade. Load up on tech and health care and probably get the lions share. Thats not the question you asked. You said, where the growth going to come from. Those are the sectors poised to deliver secular earnings growth, Revenue Growth thats frankly not tied to any trump initiatives. They could serve as a tail wind but if thats where youre looking, whats the right ponds to fish in, thats where its happening. Now, you get deregulation, tax policy, any of these other things weve been promised, infrastructure, forget it, then you have a whole new leg to the story for the other 30 or 40 of the market thats not financial, health care, tech. But i think, you know, your point is really correct. Right now the markets not discounting anything going to come from trump. I think youre seeing that. Why is tech rolling over . So much of tech was because we were going to get tax relief and all this cash back. We dont know if thats going to happen so i think if earnings dont deliver in this First Quarter, you are you should see a pullback, which could give you a great opportunity if youre sitting an cash but then the market says, lets focus on earnings and you get secular growth from health care and a couple other industries. Bigger pile of cash. But i didnt put domestic. I had a 21 after i sold the regionals on half the financials and then i put them down to 17 in cash, all into international. I love whats going on around the world. Every countrys beating us around the world. Youre going to be dead right on that. When this year ends, overweight u. S. Equities, letting it ride from last year, looking at the last five years and thinking that poast is prologue, those people are going to underperform. People like kevin recognizing whats going on overseas combined with valuations are going to win. Im glad you went there, great segue to our next story. Mike, thanks for being here. The debate over whether the u. S. Market in general is too expensive adding another big voice today with word value act will return more than 1 billion to investors on concerns about valuation. Leslie picker wheer that developing story and the letter that has a lot of people talking today. Thats right. Value act says the firm has too much cash and too few places to put it. So, its giving 1. 25 billion back to investors, according to the letter, value act thinks the market has just gotten too expensive. It said the current valuations can only be justified if the high corporate margins continue and if we see lower Corporate Tax rates and a riskfree rate near alltime lows. Hes skeptical that any of that can happen. These concerns mirror what the firms founder said at an event in february about there just being a lot of bad stuff in the market. What that means at the top is youre not deploying capital. Youre mr. No, right . And thats where i would be right now and so im disinvesting. Im i got 3 billion in cash. However, value act is not completely on the sidelines, it said in a letter that it has put 1. 7 billion into new investments this year. The details of those will be revealed in future letters. Mr. No or mr. Yes, where should you be, jeff ubben says, similar to last year, we continue to sell our winners. Hes smart because thats his job. Thats the role hes playing in the portfolios of the institutions that invest with him. Hes not supposed to be fully invested, pretty much, at any time and certainly not if he sees a scenario where we could be topping so hes doing the right thing. I would also note one of the reasons why the big famous hedge funds have been so terrible over the last few years is they never give money back and they continue to raise new money from platforms, from banks, from brokerdealers. What hes doing is keeping himself at a size irrespective to what he is doing, what about the overall call hes making . Thats not a call geared toward the other 99 of investors. Thats a call based on what his role is as an alternative in let me tell you something. If jeff ubben looks around and has a hard time finding anything cheap enough to buy, dont you think the rest of us should take another look at what the market looks like . Its not a bullish call. Theres no way to turn that into a bullish story. The guys raising a ton of cash, its protectionist in every way. Hes derisking his portfolio. That is his mandate and hes sitting on the sidelines waiting for the next trigger. If its not going to be deregulation or tax relief, its going to be a flat market probably. Im going to give you exactly the wording from his own letter. The Broader Market context is explicit to us, the s p 500s medium pe ratio is 18 times these valuations can only be justified by assuming cyclicly high corporate margins will persist, a certainty of lower Corporate Tax rates and a riskfree rate that stays near alltime lows. We are skeptical of all of the above. That doesnt mean there arent stocks out there that fall under the category, right . Theres always opportunities. We all look for the winners. We take something off, we look for the next opportunity. Thats what this whole when we talk about a healthy rotation, sometimes the healthy rotation goes into cash. Kevins talked about how much cash hes putting in, judge. That rotation sometimes goes to cash and now youre looking and looking and youre going to find something and you start toe de ploying it once again. Judge, when he said that in the tape, the Interest Rates were over 2. 55 for the ten year and now here theyve pulled back to under 2. 3 . There you go, 2. 28. Thats not bullish. But its against what he said. He said we dont think thats going to happen. It is happening. He said, we dont think youre going to get or he said, you know, people are counting on getting these tax reform done. And i do still think were going to get that done this year. Were talking about short rates. Theres this idea that all of a sudden the fed is going to raise short rates and the 30year is going to listen. 30year doesnt care what the fed does. People they didnt care in 2007. I think people are too dismissive about whats going on in the tenyear. People act like it doesnt matter. That means a soft 36 months ahead. Thats what that trigger is telling you. Its pulling back in some of the animal spirits we talked about only two months ago. But it was dead wrong last summer. Look, i right. Dead wrong. I dont think you can just look at it and say it doesnt matter because when it rolls over, its telling you theres a lot of money in the market saying they dont see growth. I would argue this from these calls. If youre going to do anything with your holdings domestically at 18. 5 , 19 , whatever you want to call the pe, derisk it. Go look at the Balance Sheets of what you own and go for the Higher QualityBalance Sheets because at least if theres a correction, youre going to not participate in the full downside. It was over leverage that killed you 07 and 08 and 09. Learn that lesson and go to Higher Quality names. Or play the options. Play the options, baby. Like Lee Cooperman said. Your buddy does it. All of the Warren Buffett uses them. He sells puts like crazy. Its amazing. We got books. 22 rules out there, judge. Youve got to know all 22. Are they running again . Theyre running, baby. Sprint and a marathon. Podcast. Were just getting started. Heres what else is coming up on the Halftime Report. Love for lululemon. The athleisure stock taking a hit this year. The desk will debate it in our call of the day. Plus tech still the best performer of 2017. But tracking puts ninth straight day of declines. The traders take on if now is the time to buy the debt. The Halftime Report with scott wapner is back in two minutes. Hit this year. Were back on the Halftime Report, shares of lululemon, well, there they are today, up 0. 75 . Down, though, almost 20 year to date. Today, that stock is getting that boost after it was upgraded to a buy. The firm says the reset, presenting an opportunity for longterm investors. Weve made it our call of the day. Is this an opportunity for longterm investors . No. Yes. We got a debate. Are we going to have to reaccommodate you . Lets do it. We dragged josh. Im going to drag him back there to the telestraiter. This is a stock that we accommodate shareholders every 30 days, it could be 80, it could be 50 when you wake up. True but since its 50 here, i want to buy it because its going to 80. What if its 30. Its going back to 60, i think. Im not sure. Weiss and i bought it when the stock fell after that homewo horrible report. Real nice recovery in the quarter. Just fell off a cliff. I think got down to 48 or something. I mean, really just hammered down. I sold puts, i bought stock, now ive overwritten the stock with calls and im still short puts in this one. I was happier this morning when it was up a little over 2 but its still 52 and change. Listen to me now and believe me later. This stock cannot hold 50 on a closing weekly basis if this stock cannot hold 50, stay good night. Its a triangle handle upside down. Thats where support showed up. If it doesnt hold, i feel bagd. I dont know. If it does hold. Well, different conversation. Right. And im not saying you cant speculate here. This is a valuation call in part, right . Valuation assessment, suggest the reset is presenting opportunity. Lol. The nearterm stopgap measures to chase color and innovations. That is the art side of fashion, understanding the trends. Remember the story. This was a cult stock. It was the first to bring forward hiney Compression Technology where you could stretch yourself and squeeze yourself into shape and it was a monster hit and it grew dramatically and then all of a sudden everyone else brought out hiney Compression Technology and dhair competing. I get it now. He said hiney compression. I thought he said high knee compression. You knew what he said. You know what i mean. It compresses. Werent spanx the first . Spanx was an undergarment technology. This actually was an outer garment. Im a bit of a fashion i was like hiney, what the hell is that . You make a great point that happened five years ago and guess what . Surprise, surprise. Price action. Stock is trading exactly where it was five years ago. Full round trip. Six years ago, round trip and now testing the low end of that range. But they have two major problems, right . One of them is the merchandising and the the founder was a pretty major problem. Hes been a problem but the stock was reacting pretty well even though he was very, very critical of what was going on at the company but the mismanagement they had, absolutely, they talked about the colors but also their website, that was terrible as well. They have made improvements there. Ecommerce is slowing down. Thats been the growth engine. I still look at some of the areas that are growing still, though. How about the mens wear and the Childrens Wear and theyre going more international by exposing themselves in china. There is a growth story behind this thing. The battle of the beatdowns, lulu, under armour. I dont think they should be in the same space, one decision versus the other, but lulu is down 19 in a month, under armor is flat. Lulus down 19. Just on two stocks that have some products in the same space, again, because theres been suggestions that lulu should buy underarmour as if they make athletic pants. You mean the opposite . Are you kidding . I completely agree with you but thats thats been out there. Chip wilson, the former lululemon ceo, the founder, suggested that. Right. That is a deal on those bus ads. That would not help either of these guys. Ive never seen that work. In your country, no less. If you have a stock that never returned capital, youve been tied up in it for five years, youve had a full round, this is the horrible side of investing. That money died. It died. You got to this is a trading stock. This is not an investment. Again, i have no problem speculating here in the low 50s, the stock has had some unbelievable runs from this level. Im saying, if it breaks below, it tells you the people who are willing to come in at that level in the past have thrown in the towel. Do you go in, in the 40s. I dont like it anywhere. Thats really damning. I would not wear it here or there. I would not wear it anywhere. Tech has been on a tear this year. Holy smokes. As we mentioned, it is pulling back. Recently on track now the sector is. For its ninth straight day of declines. Is now the time to buy it . Traders are going to debate it next. Hey dad, come meet the new guy. The new guy . What new guy . I hired some help. He really knows his wine. This is the new guy . Hello, my name is watson. You know wine, huh . I know that you should check vineyard block 12. Block 12 . My analysis of satellite imagery shows it would benefit from decreased irrigation. I was wondering about that. Easy boy. Nice doggy. What do you think . Not bad. Thats why a cutting edgeworld. University counts on centurylink to keep their global campus connected. And why a Pro Football Team chose us to deliver fiberenabled broadband to more than 65,000 fans. And why a leading car brand counts on us to keep their Dealer Network streamlined and nimble. Businesses count on communication, and communication counts on centurylink. 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. Thithis is the new new york. E . Think again. All while reducing americas emissions. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov welcome back to Halftime Report, im julia borston in los angeles with a news alert on faks. Its messenger app announcing it has hit 1. 2 billion monthly active users up from 1 billion announced last july. Ceo david marcus telling tech crunch the number of messages has increased by double digit percentages. Messenger is working to expand beyond just messaging, giving users tools to share stories, similar to snapchat. Messenger along with facebook and whats app of course all top 1 billion monthly active users, dwarfing twitter and snapchat. Scott, over to you. Facebooks been a big run, north now of 139 a share. Tech is the best performing sector this year. It is beginning to flash some warning signs now. On pace for itself ninth straight day love losses. Is now the time to buy or bail . Whats going on with this trade . It was like money in the bank. Now whats going on. Rotation. I think its just plain, simple rotation that youre seeing right now which is again going create some opportunity. I own microsoft and apple and facebook and intel, i mean, i think there are names that you can feel comfortable having, scott. They might get dinged a little bit. They might pull back. I mean, i dont think we ever expect stocks to continually every single i do go higher. I think this is a sector thats being used for source of funds. If youre going to take money off the table, you feel the markets overvalued, take some money off these stocks. Where are you going to put it. Sit on cash or wait for stocks to come back. The market gives you enough opportunities every year. So you take it off and wait. You think were feeling a little toppy. I think when earnings season comes, you always get a couple stocks that you like that get sold off because they missed a quarter or had something bad in there. These are big liquid stocks. Apple is a 750 billion market cap. Microsoft and google are in the 500something billion. These are stocks that can be sold easily by managers who are doing any of the things that were suggesting, rotating elsewhere, going into cash, so i wouldnt take it as more than that because the earnings estimates, they hold and they continue to go higher. If you put a gun to my head and said you cant own any etfs or any stocks except for one, googles the one. I agree with josh on the sector call of all the sectors, the one thats not going to miss earnings and has potential to beat, its tech. I havent sold a single position. I own the dyno techs. I love microsoft and apple. Theyre going to correct a few percent. I think theyre not going to miss. And youll see, look, if youre overweight this sector or youve got too much of one of these stocks, this is the time to take the money out. Its a Risk Management issue, i think, a lot if you get a really good sector because you dont want to get greedy. 200day moving averages worked really well with all these large tech names that were talking about. And the reason were just talking about the large ones, by the way, theyre almost half the nasdaq. The nasdaq 100 is five stocks so thats kind of the other ones key off of them. Google, year to date, is up only 6 . I mean, you know, only is relative term, but you have those concerns about the ads, right. Which they seem to have addressed though. The ads, of course, showing up cocacola ads, pepsi ads, whatever, showing up on if tech is such a cantmiss place and that google is viewed, alphabet is viewed as one of the pristine names in this sector, that it would be up more than 6 . Stock went from 700 to almost 900 in four months. Its contr consolidating. I think its natural. 700 doesnt go to 1,000 or 1200 overnight. I think volatility is why, by the way, theres an 18 multiple on this thing because people arent running it all the way up. They understand that theres risk here. Thats an anecdotal story for you. 40 private companies now in the whole shark tank sphere and other companies, i looked at where they spent their money in the last 24 months, they have more than doubled google and facebook. This new facebook live, where you buy the geography, you buy the ad, you target your audience and your customer, this is on fire with these companies. Facebook is google. Yeah. Theyre killing it. Online advertising is like 17. 7 billion. Facebook google is like 13 of that and it aint shifting the other way. The rest of the world is carving up that other 4 billion and these guys just have a complete they got the eyeballs. Coming up on the Halftime Report, golf course glory, the lowscoring amateur at this years Masters Tournament joins us to talk about his impressive run at augusta and his business ambitions off the green. He has many. Hes a financial analyst. Who knew . Were going to talk to him 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 tbut with lightning fast shifts instant. And dynamic tracktuned suspension, what the road demands, the gs delivers. Experience High Performance through high technology, in the lexus gs 350 and gs turbo. Experience amazing. Hp, inc. , trading at levels not seen since october of 2015. Its a member of the cnbc 100 iq index. For more, go to cnbc. Com iq100. Im contessa brewer. During an appearance at a museum forum on the president and the press, white house Spokesman Sean Spicer apologized once again for saying Adolph Hitler didnt use chemical weapons. I made a mistake. Theres no other way to say it. I got into a topic that i shouldnt have, and i screwed up. I mean, you you know, and i hope people understand that we all make mistakes. A former president of iran says hes running for president again, even though Iran Supreme Leader recommended me stay out of the race. Hes back. Arriving to present his application for election with a number of cheering supporters. Hud secretary ben carson and his wife got stuck in an elevator of a Public Housing complex in miami this morning. Rescue crews managed to get them out. Carson is in town for two days of meetings, including one with former miami heat basketball star alonzo morning who was waiting and waiting and waiting for the cabinet secretary. Thats the cnbc news update at this hour. Fwook you for whats coming up. Lets tell you whats coming up. Geopolitics weighing heavily on the markets this day. Russia, nato, north korea what should you do to position your portfolio against these maybe chill international winds. United airlines ceo apologizing again, promising to make big changes at the company, but will it work . Is the damage already done . And weve got one redhot biotech soaring more than 20 right now. The ceo will tell us what is in the pipeline. Halftime report returns right after this. music plays throughout brian, i just need to know if the customer app will be live monday. Can we at least analyze customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. Welcome back to the Halftime Report. Sergio garcia may have won the masters this past weekend but it was another lesserknown golfer who might have stole tennessee sh stole tennessee show. Stewart hagestad was the low scoring amateur at the event, a me feat made even more remarkable by the fact that he spends more time watching the markets. He works for a Real Estate Firm based in new york. Mr. Hagestad joins us from irvine, california. Welcome. Its great to have you on the show. Thank you very much for having me. I cant imagine and i dont think anybody can what that moment was like for you to be in butler cabin, sitting next to Sergio Garcia and Danny Willett after the masters. It was pretty special. Sergio is someone ive idolized for a long, long time since i was a junior golfer. I still remember the shot he hit in 99 to it was a special moment for me but i wanted him to kind of enjoy that moment and that day was all about him but it was very special. And yet when jim nance asked you if you were going to turn pro or had bigger golf aspirations, you said no, that you were more interested in staying with your current career as a financial analyst, maybe going to grad school. Thats exactly right. I plan to get my mba. Hopefully at the end of this year. You know, professional golf is would obviously a dream come true and its something i think about all the time but at the same time, i dont want to let a great week on my end, on the golf course, kind of jade or, you know, influence my decision over something thats kind of a lifelong journey and i think you need to look at it in the longterm rather than being caught up by my success in the past, you know, week. So, i think im making the right decision but i guess only time will tell. We were looking at still photos, one of which was with you and jordan spieth. You guys know each other fairly well, competed against each other years ago. Yeah, yeah, we do. Jordans a great friend. Ive known his family for a long time and hes obviously had a tremendous amount of success at Augusta National so to be able to pick his brain this past week was very, very important to my success over the past week. So about your aspirations in finance, i mean, you obviously played golf at usc. Did you study finance at sc as well . I did, yeah. To my knowledge, i believe i was the only one in the Business School and that was always kind of one of my ambitions Going Forward. I had a little bit different career than most during summers when i was in college. I worked every summer for cvre and then after college i went to go work in new york but i always kind of tried to have lots of doors open and as a good friend of mine said, not to necessarily be a mile deep and an inch wide but rather a mile wide and an inch deep. Oak tree residential and management as a financial analyst so what does that entail. What would your day job, so to speak look like. I was a valuation analyst for them. We recently just closed an 18 billion portfolio around the new york area, so that was one of the deals. One of the really last deals i had worked on. I think theres been a little bit of a misconception here but i wasnt going to correct jim nance on tv. I took a leave of absence to help me prepare for the masters so i have to be honest about that. But i was with oak tree for just under a year and before that i was with a private read until it was sold off. My main role with them, any time an investor would come into town or any kind of valuation for potential acquisitions, that kind of fell on to my desk. I have someone sitting next to me who deals with valuation a lot, certainly in his role on shark tank. Kevin oleary has a question for you. Sure, mr. Oleary, id love to hear it. I want you to take a different direction. Hear me for a second. On behalf of the millions of us that are really horrible golfers, you have an incredible opportunity. The number of people that get to play at the level youve had a door open for you is 0. 0001 of the world. And now youre going to go back and get your mba . Let me tell you something. I got 50 mbas working for me. None of them can golf. Why dont you take this opportunity, build your personal brand, globally for a couple years. Every Business School in america and europe will take youack and you will have done something that none of us ever have done. Please, i beg you, pursue the dream. Dont go be another mba. Are you kidding . Well, mr. Oleary, you know, im an avid watcher of your show and if id like to make you a counteroffer, if possible, id love to get my mba and sit down with you and see if theres a potential opportunity with one of your firms. Any time for dinner. Any time. Id love to. But i beg you. That light is shining on you right now and youre wasting a hell of an opportunity. Shame on you. Shame on you. Well, thank you very much. Its i feel like ive passed a rite of passage to be lambasted on national tv by the main member of shark tank. So thank you very much. Weve given you a good memory for today, stewart and youve certainly given us and weekend hackers and golfers of all skill everywhere, certainly something to remember. Thanks so much for coming on. Best of luck. Congrats. Thank you for having me. Stewart hagestad joining us. Tomorrow on power lunch, do not miss the exclusive interview with new England Patriots head coach bill belichick. You can see much more on power lunch at 1 00 p. M. Coming up, brothers najarian tracking unusual activity in the options market. Stick around for their latest plays. We are back in two minutes. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. 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. Unusual activity time. That means weve sent the najarian brothers to the telestrator. Pete, you are up first. Im starting with ebay. On february 10 i put an x here. We had some huge call buying, scott. We talked about it on the show that day. It was the july calls. They went to july, the 32 calls. They were just in the money calls. Stock has performed decent since that time and continues on this upward trend. Today we see something even more interesting. Theyre back and theyre buying the may 36 calls. Huge. 8,000 of them traded almost immediately. That jumped to 10,000 rapidly. By the way, theyre hedging the position, scott, buying the may 36 calls, selling the may 38 calls. Thats a 2 call spread cost them 50 cents that could quadruple if we get to 38. Theyre hedging the upside. So they dont think its going through 38 between now and the end of may. Okay, doc, you have mro . Marathon, judge. Take a look at this one. Marathon year to date graph. You see it pushing right around 16. 60. What were they doing . Buying upside calls out in october. So pretty far out into the future. I could be in this one a couple months, as you can see. Yesterday they were right around 1. 20. Today theyve moved up to 1. 40. Over 13,000 of these, 1. 3 million share equivalent, so i jumped in here with them, judge. Ill probably be in it two months. Long term. Guys, come on back this way. Lets take a look now on ebay i cant imagine whats driving this upside but this stock is about to break out yet again and i just cant help but think you have these massive it technology companies. Why wouldnt they just buy . I can answer that. Theyve been separated from pay pal. Artificial intelligence is one of the things and theyre trying to capture more and more in terms of customers. Also, the partnerships in india, that is going to be huge. It is a big market. It will get even bigger. 57 of right now revenues on ebay will be a growth. How about that, scott . Good stuff. Im glad you made your way back to do that. Could Courtney Reagan for a look at gold and futures now. Thank you very much, scott. Gold rallying today hitting its highest levels since early november. Back on pace, up about 3. Geopolitical uncertainty giving a boost for certain. What are other catalysts pushing gold higher . When you look at marketability, that fear factor is pushing gold higher and certainly a hint in inflation. If you look at gold, the commodity space, were starting to rally off the lows as well and so certainly thats pushing gold higher. The rest of the commodity space has more catching up to do to catch on to gold. Some fundamental analysis there. On the technical side, gold broke above its 200day moving average. Yesterday for the First Time Since the election, what are the charts telling you . That its going higher. Its above the 21 day and the 50 day. I agree with what you and brian said about geopolitical and inflationary aspects. We havent mentioned the dollar. Thats helping support gold. Now that weve broken out technically, we could hit 1,300 in the next few sessions. The mighty dollar. For more trade ideas at our futures now, you can catch the live show every tuesday and thursday at 1 00 p. M. Eastern. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Thithis is the new new york. E . Think again. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov times up, insufficient were on prenatal care. Es. And administrative paperwork. Your days of drowning people are numbered. Same goes for you, budget overruns. And rising costs, wipe that smile off your face. Were coming for you, too. For those who wont rest until the world is healthier, neither will we. Optum. How well gets done. Your parents have been ittalking about you for years. Theyre all about me saving for a house, or starting a college fund for my son. Actually, i want to know what youre thinking. Knowing that the most important goals are yours. Its how edward jones makes sense of investing. Markets close in about three hours. That means its time for final trades. Josh brown, you, my friend, are up first. Jetblue yesterday. No, listen, its, i think, the only one or one of the only ones that buffett is not buying but technically locks the best to me. But broadly speaking i think if these stocks were as resilient as they were this week given the drama it tells you a lot about the commitment of the shareholder base. I was going to do delta as my final, had earnings, stocks up. What do we think of delta . Revenue on earnings. Doing everything they need to do. Its a wellrun company. The airlines will do well. You have all this stuff but deltas earnings is increasing. Give me your final trade. I want to watch xlf. Wll. Whole foods market. Theyre buying calls again. I think had is going to rock even higher. Cash is going to go up for a while and its really performing. Good to have you here. Power starts now. Scott, thank you very much. Welcome, everybody. Im tyler mathis and global tensions front and center on this day. Nato chiefs heading to the white house facetoface with president trump. Secretary of state tillerson meeting with putin, an unhe c unexpected meeting came in late, north korea also, of course, a big fear factor. This will never happen again. Thats what United Airlines ceo promises after that shocking video of a passenger being dragged off a plane there go the najarians again dropping their stuff all over the place. What united plans now in the future of oscar mu