Fargo. Pnc and First Republic also reporting this morning, guys it is a big bank day the overall market is up, sirott, the banks are down is this a buying opportunity for banks or wait, because theyre going to go even lower i think wait a little bit theyre great opportunities. I want to own the banks down road im pretty fully invested. I think Going Forward, if you believe that our economy is going to have steady, slow growth, you believe that Interest Rates will slowly move up over time, these are great management teams theyre going to underpromise and overdeliver. And i think the expectations Going Forward are not as good as what we think i hear you, but jon najarian, that doesnt look like its the case today it looks like theyre overpromising and underdelivering. Well, jpmorgan, you look at the numbers they put up, they were fantastic but theyre only fantastic with regards to expectations we know how wall street workes. Well, okay, but look at the number they put up, brian p i mean, that was impressive. Bottom line numbers, topline numbers, both beat however, loan growth, core loan what, i think it was 8 or Something Like that the street was looking for 10 to 11 because of guidance they gave at the end of may. Jamie talked about how the congress has not moved any of the agenda items forward and he said, that is a big problem. Thats holding back Economic Growth i think most of us would agree, we would get better Economic Growth if we had an infrastructure program, which theyre not even talking about and if we could do well, to be fair, there are three infrastructure bills that are floating around. Floating . Theyre not getting anywhere, because they need a bigger bill to be attached to. I hear what john is saying, but if the numbers were so good for Jpmorgan Chase, why is the Market Selling the stock down 1. 5 i dont think we should paint the whole sector with a different brush stroke jpmorgan for many years has punched above its weight class or at least above its competitors in terms of share price return for this reason, ive looked at something more like a citigroup. If i look at that name right now, i see its trading at tangible book value. And now its a good stock, but not a great stock to own what are you going to get from here youll get the return on the equity, maybe plus getting to 1. 1 times book value well youll get 10, 15, maybe 20 return in the stock. The point being, thats one stock. Thats not the same attributes as jpmorgan is going to have which trades at a premium to tangible book value. The point being, dont look at the whole sector look at the individual stocks within the sector. Youve said this 1 billion times. The market is going to tell the story. And the market is the only sector thats down today is the financials and the banks thats it. Okay, so there is a possibility, brian, that were making a really big deal out of like three hours worth of trading. Lets take a look at what the stock is it is television. Well, fine. The stocks up 47 over the last couple of years. Jpmorgan with todays earnings call, has now earned 26. 5 billion in the last 12 months. Thats not revenue, thats profit thats the most of any u. S. Bank in the industry of the world, coming in with a level of profitability and just a sheer scale of this organization so, the stock has worked this year, by the way the whole xlf is up 7. 5 , roughly in line with the s p, give or take its, a good 12 months. With really no help from the economy. Were still chugging along at under 2 gdp growth. Nothing going on with cni lobes nationally nothing going on with Interest Rate spreads so this is a bank thats getting it done, regardless. Its down 1 today and were like flinging ourselves out the window might be a little much im sitting here calmly look, theres something called brownie in motion in physics, which is particles moving around randomly lets just leave it at that. So a giant group hug for the financials are you advising clients to buy the banks . Yeah, i think banks are still one of the groups that you want to keep buying over the next few years, because i think you guys kind of mentioned this in this lowrate environment, theyre doing very well, and thats with regulatory restrictions that have been pretty severe over the last eight years. And i think as you look forward, restrictions return capital, rates rise, and i think people then have to figure out what these businesses are worth and i think they become real franchises to toms point, by the way, you dont have to have an overhaul of dodd frank there are two Different Things theres hard deregulation and soft deregulation. Hard deregulation might be a little bit more difficult than take time and actually require someone who knows how to work within the laws and thats not what weve seen so far soft deregulation is, you know what, were really not going to throw another lawsuit at this Company Every two weeks. Which is what went on during the obama years. Not through any fault of obamas, but thats where the nation was, mentally, with these banks. Every month was a 1 billion settlement you can argue kevin oleary, youve got to like these seem like oleary love stocks because theyre big, they make a lot of money, theyve got strong Balance Sheets and pay a 2 or 3 dividend yield no. Im not hugging them im not even dating them anymore. I have sold them all i dont think im going to miss anything for the next six months, not owning Money Center Banks or the regionals this whole sector, some perception that this is the next sector to lead the s p, i dont buy that this sector has been doing phenomenally well for almost three years. Its up over 40 , including the regionals. This is the pause that refresh is Going Forward now ill tell you why. Lets take citi. I saw those numbers. The reasons they even made them in the first place is reversing accruals, which i hate and secondly, reducing bad loan provisions thats called financial engineering, gentleman thats exactly what it is, to make the number. And thats not healthy bottom line is, loan book not growing. Margin spreads on Interest Rates, not growing you have to believe the fed is going to raise in december, any of these names if you want anything there and frankly, the rant that jamie dimon gave gives you the hint of why these guys are not going to make it for the rest of the year in terms of leading the market hes frustrated because the economy is not growing, because its overregulated and he didnt get the tax reform he wants. And justifiably so but in his words are caution and i think if youre looking at whats going to make things work in financials, you dont have to own banks. You could own Simon Properties or public storage. Those are financials that dont have any of these metrics or any concerns about Interest Rates and still can produce dividends and are very safe spleBalance Sheets thats our second reference to jamie dimons rant. Wilfried frost has more now on how jamie dimon kind of blew up on his companys Conference Call thats right, making headlines has been jamie dimons rant on u. S. Economic policy, but specifically over the last decade as opposed to today though, we should say, his main point was actually that growth in the u. S. Is resilient since the great recession, okay, which is now eight years old, weve been growing at 1. 5 to 2 , in spite of stupidity and political gridlock because the American Business sector is powerful and strong and is going to grow regardless. What im saying that it would be much stronger growth had we made intelligent decisions. But it is fair to say he is now ready to see some progress in washington. We have become one of the most bureaucratic, confusing, litigious societies on the planet its almost an embarrassment, being an american citizen traveling around the world, and listening to the stupid [ muted ] we have to deal with in this country. Crucially, on the u. S. , as i said, overall, he was upbeat say, if gridlock goes on sorry, if gridlock goes away, we will grow faster but if it continues, we wont grow slower. Guys all right, so gridlock is not a terrible thing the status quo, it sounds like, jamie dimon, is not the end of the world, were good but could get a little bit better. Wilfried frost, thank you so much we are joined by fivestar fund manager, anton schutz, adviser of men don capital we know you like the regional banks a little more. But what is your vau on j. P. Ien Jpmorgan Chase specifically . Look, the quarter was fine. I think everybodys nitpicking i debris with what i think josh was saying earlier, that weve gotten so myopic, oh, my goodness, the margin isnt there or the loan growth isnt quite as big, but net net, they beat, they beat taking all the adjustments out. Citi beat taking all the noise and adjustment out so i did expect the group, regardless of what they produced it was a crowded trade, everybody brought it, they were up strong in june. I think over time, well, whats really important for these big banks is the return of capital to the shareholders. I mean, the Regulatory Environment has really loosened up, many banks are paying out over 100 of what they earned to shareholders the buybacks are enormous, obviously make a bigger exact at citi a huge buyback, dividends are going to be on the rise, look, at the end of the day, i think that you buy pullbacks in these names. I do expect the fed to raise again this year. The Money Centers arent so great at deposits. Bank of america is probably going to be the best deposits, because theyre the most sensitive. Anton, do you have a favorite of the big cap stocks . Yeah, i just said it. It was bank of america i knew you liked it, but that is your favorite of the big boys yes, exactly. And its simply because theyre so intrasensitive. Theyve got huge deposit share and their Balance Sheet has more floating rate loans on it. Ill ask you, pinnacle financial is your favorite of the midsized regionaltype names. Pnfp, the ticker who is pinnacle and why do you like them . Well, pinnacle is based in nashville, tennessee so growth rate is phenomenal they just bought bank of North Carolina, which you heard me talk about in the past so theyve got great growth in nashville, got great growth in South Carolina and North Carolina theyre in virginia. A lot of those states are growing faster for many simple reasons. I mean, tax rates are favorable. Labor laws are favorable and very importantly, the panama canal expansion has allowed a lot of shipping t inping to go ports there. A huge amount of traffic going through those ports. All of those markets are really growing very, very well. Both businesses and people relocating to those markets. I love the markets, loan growth will be much faster. The first panama canal reference today. Hey, its josh brown. Can you think of a time, ever, and i know youve been covering the industry for a long time, can you think of a time ever where just generally speaking, the banks in the United States were, a, this lean, b, this disciplined about costs, and c, had this much Balance Sheet strength, all at the same time, possibly on the verge of a deregulation cycle has there ever been a moment like this . No, no. I mean, you havent had this with the excess capital these companies have right now, your point is very important. Theyve all gotten better. I mean, efficiency continues to be critical for these companies. Technology is helping drive it its very expensive to implement that new technology, but its going to keep showing at the bottom line. And then, you know, i focused on m a for a very, very long period of time. And this is a great time for a regulatory perspective again, that the pressure is going to be off the buyers, deals will be approved quicker, theres going to be some really good accretion and good shareholder creation from some of the regional banks. And you know, hopefully the regulatory foot will be off the buyers u. S. Bancorp, pnc, bb t, regions, sun trust, they havent been in the fray and i think that those guys will be very active over the next few years, buying other smaller regional banks and i think the whole industry will continue to consolidate we still have 6,000 banks out there. A question for the regionals, because some people just dislike them in terms of cni we like them quite a bit where do you see that Going Forward in terms of loan growth, because so many people are focused on loan growth and Interest Rates for these companies. So youve really got to think about parts of the country you know, where , i mentioned before, the southeast has some terrific growth going on i think you want to be in Growth Markets right now. Growth markets can get overextended, ie, precrisis but i think the justification for the cranes in many of those markets is there, its real. Markets like new york city, its slower its growing slower for a lot of reasons. Its been a little bit overbuilt. Tax policy hasnt been favorable. So youve really got to pick your spots, if you want loan growth, you want to go outside new york, go into places like the southeast. And i think texas will start to grow again as well its all about oil prices, but theyve diversified and have so good growth, as well, going on colorado has also been on fire if youve been to denver lately, its incredible. Those are places you can go way above trend loan growth. Youve been listening to this anton has a long and very successful track record. But i think you beg to differ a little bit on the regionals. I would say, anton, a question, going off the theme that josh gave, has there ever been a time ever in the history of american region nal banks whe the return on equity and the return on assets has been this low . Has there ever been a time in the history of regional banks where the loan books have been this week . And has there ever been a time when real estate represents more of their loan books right now in these Growth Markets youre talking about . Just the slipside of the coin in terms of being a little less optimistic that be you an you a. Look, the relatigulations hae made these banks carry more capital. Thats going to affect return on equity big time. As these banks can shed capital, trap capital, thats going to help their returns dramatically. In terms of return on assets, i think as the fed continues to raise rates, i think youll continue to see that get well above 1 again. And some of the topperforming banks are in that 1. 5 to 2 range. Take a home bank out of arkansas and florida, theyve got a return on assets thats close to 2 so i think you can be a stock picker, you know, i think you can generalize and say, you know, these guys arent growing as fast. I think you can general size and say the returns on assets and equities arent as big, but if youre a stock picker, you can find great examples of companies that have outperformed and continue to outperform and credit quality is terrific out there right now. And i think thats an important point. There dont appear to be any nearterm sort of chinks in the armor on the credit quality side a good discussion there anton, well let you go and enjoy your weekend thank you very much for coming on halftime. My pleasure a few days ago on power lunch, we posited that sales nib greatly exaggerated. The xlf coming off its best session in nearly 18 months. And today four names in retails are catching a little bit of love ross stores, ulta, gap, and walmart. They are all part of our calls of the day upgraded tom lee, your thoughts on retail the beaten up, beleaguered sector making a little comeback. Is it for real i think in the shortterm, it makes a lot of sense for people to rethink retail. Because its like, its almost like amazon has been poisonous for any stock in that sector it makes sense that not everybody is going to be, you know, a victim of amazon and amazon is only a tiny percentage of overall retail sales. I mean, weve got to remind ourselves of that. Yeah, thats right. But on the flip side, i do think that there are some secular, you know, headwinds. Part of it is demographics with millennials, but i think the other piece is, labor markets have gotten tight, and thats an industry that is so dependent on entrylevel labor. And it does make you think that maybe longterm margins are structurally weaker. And i go ahead just to the point youre making about retail, is the comeback for real or not its hard to say whats happened this week, youve gotten some anecdotal evidence yesterday target came out and said samestore sales were a lot better than anything expected. Penny did the same thing earlier in the week. But most of these companies have a quarter that ends july 13st. Theyre going to report in august which means youre kind of in this dead space. Youll get these anecdotes, but not enough to sink your teeth into until three weeks from now when the Earnings Reports really come out and then youll get the proof as to whether its been overdone i think it has been overdone and tom, that may be what im hearing from you obviously, amazon is having an effect, we cant deny that, but the beat down this sector has had is over the top. Thats the case, sirott, when we showed on power lunch, some of these stocks, target is selling at 0. 3 times sale, jcpenney, 0. 1 times sale thats like three plugs for power lunch, by the way. Thats my cutting you off here. Thats my pay if you look at it and look at the negative sentiment Behavioral Finance 101 will tell you, lets look at the sector. But you also look at, what is happening with being amazon. If you have a highquality brand or a Limited Brands near victorias secret and other things you can actually sell and you dont have to actually go through amazon, you will survive. And i think the opportunity today, as jim has said, youve got to wait it out are there any stocks you want yao li Limited Brands. Evh not brix acks and mortars, but brands we talked about under armour yesterday, making a nice up move today. Gap had nice activity yesterday. There were a lot of people willing to step back into the space because of jcpenney and because of target. And Goldman Sachs takes walmart to a conviction buy. That didnt hurt the problem with this discussion, were ignoring Consumer Preferences which have changed in a secular way the stores that are reliant on mall traffic are in very big trouble. The malls are watching these chains go bankrupt and in some cases, theyre actually forming consortiums to buy their leases in bankruptcy and operate the stores this is unheard of agreed, but ill push back a little bit most of the mallbased retailers that weve seen go bankrupt were also private equity, highly leveraged debt okay, so theyre the lowhanging fruit to get knocked down first but at the end of the day, the Consumer Preference has changed. The mere fact that you operate 400 stores in class a malls across america, hence you have a brand that people want to buy no longer exists. The fact that you can advertise on television no longer matters. You now have microgrants coming out of the woodwork using platforms like instagram, snapchat, facebook to build enough scale to pull that marginal dollar. Now, it doesnt mean every retailer disappears, but take a look at we talked about macys yesterday this is a stock thats down 70 in two years in two years haas loss twothirds of its market cap now, over the course of that decline, its had three separate 30 rallies. So if you want to buy these rallies, youre welcome to but the longer term secular trend is down and the Bigger Picture secular trend for consumers is they no longer need to just buy clothing from these 12 brands that have existed you want macys to start trading below the value of its real estate. I hope it doesnt, but thats whats going on. Kevin oleary, walmart, the forgotten giant. You havent forgotten it you love it. How come i think if i look at the amazon factor expressing p\es everywhere, the one place that can fight walmart in terms of attribution and scale, its got to be wall pamawalmart. If i want exposure to this sector, thats where ive gone the management has done nothing online mofor a decade finally got their act together some people think they overpaid for their assets in online retailing, but at least they have them now. Combine that with the Distribution Centers and the buying tower, now that the border tax probably is going to happen, i think its a setup for the next 24 months to be an outperformer the concern ive got with the other retail names, its half art, half science. When you have a name like coach or gap, youve got to have the buyers being great at forecasting what the trends are with millennials i think thats really scary. Walmart sells stuff everybody needs. Theyve got to eat, they have to buy things, they go to walmart thats why im taking my its nice to hear you come around on walmart buying jet we had a pretty contentious debate about that. Maybe they overpaid for today, but i like that youre understanding now that they have to play offense and maybe they had to do Something Like that. Josh, i get sick when i think about what they paid for that. Its against every bone in my body, but im willing to forgive them im willing to forgive them and go long the stock because they have that asset now. They also paid a billion for the clothing well see kevin in just a bit. Heres whats coming up on the Halftime Report. Announcer go big or go home. Kevin oleary is talking about the bigcap stocks you need to buy now if you want to score big by the end of the year thats next. Plus, antisocial media. The facebook snap battle heats up as more wall street analysts weigh in can Mark Zuckerberg scratch out snap before the break, the midsummer bake trade. When bought in midjuly and sold in midaugust, Goldman Sachs is the leader in financials, up on average 2. 21 , according to our data partners at kensho. The big loser, zion bancorp. For more on this, go to cnbc. Comeno. E alimrertisacin ksh two minutes. Hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade welcome back to the Halftime Report. Scotts off today, well deserved im Brian Sullivan lets hit our trader blitz oil up more than 5 in one week. Tom, you like the Energy Stocks longterm. Its been a rough sector yeah, we like pariahs and i think energys one where, you know, at the end of the day, these are businesses that and the credit markets are being valued as if theyre ongoing entities and in the equity markets theyre but youre hanging on yes okay. Yesterday, an upgrade, today, a downgrade. Snapchat cut to market perform by cowen josh brown i think this gets closer to 10 than 20 first, so i havent change mid views here at all retrohot wynn resorts up 55 today. Cooling down a bit that might be tied to exactly the sort of thing Money Laundering and the rest that a lot of the casinos face wherever china cuts back. Generally not a good headline to have any kind of a Money Laundering in your but take a look at how they bounced. Elmpel and wynn resorts bounced pretty significantly after a harsh selloff this morning. People came scrambling in is that millco crown entertainment . Yes, it is. F5 networks downgraded to neutral at peyer jaffrey sirott, what do you think . They missed earnings, brought down guidance the next quarter, i think this stock will be treading water for a while down 14 this year. Meantime, the best dow performer of them all, boeing upgraded today Jpmorgan Chase the stock has been soaring and, jim, youre not afraid of the gains either youre looking to buy more not at this price i like this company a lot, but youre basically pricing in to risk to the stock. And there are risks out there. Ill just name a couple. The kc46 tanker which keeps facing delays and cost overruns. The big one is emirates with this 150plane order for the triple 777x. Thats a lot of planes for one airline to take down these are the sort of risks not in the stock and boeing xm bank, weve got i just listed a couple. Kevin oleary says youve got to own the bigquality names, but thats a lot of companies. Can you be more specific im going to give you a list that i think is going to outperform the s p towards the back end of this year, all about quality on the Balance Sheets, return on assets, lower leverage, and here are the names across all the sectors i absolutely love. My theory is, i would either own these than the s p as an index apple, exxonmobil, p g, phillip morris, smomicrosoft and pfizer my whole theme is protecting against the drawdown weve had wonderful markets. Now i want to be a little bit more defensive these are the names that i absolutely love and i will be dating heavily exxon is down 10 this year, one of the worst dow performers. I would add to it that arent you afraid of oil . Youre coming from the land of oil, canada. You just heard a call on the Positive Side, you heard a Positive Side on oil this is pretty much the only oil i own because it has the best Balance Sheet miami willing to put on some exxon. But everywhere else has too much leverage frankly, the whole energy space so all this hope and it just disappoints every year do you care if oil goes up would you buy exxon if oil stayed at 45 bucks my assumption is it is going to stay at 45 bucks. And the only guys who are going to make a decent return are the Balance Sheet guys like exxon. Thats my thesis for energy. I dont love the space its less than an 8 weighting in what i hold im not a big believer that the sector is going to perform well, im a believer that this name will outperform the sector okay, there you go. Tom lee, lets talk about the overall market yeah. Youre a little wary . 2275 target still on the s p, right . Thats right. Thats below where we are right now. Yeah, its a lot below. And obviously, we have a little bit of egg on our face, i had to wipe it off this morning, but our view continues to be that theres a nominal gdp problem. That the stock market is rising because of liquidity, right welcoand money on the sidelines and there is no other assets but when you look at the market cap to gdp ratio, its now 91 the only time in history its been higher is 1929 or 1998. So theres you know, were really running up against is the market either has to correct or gdp has to really pick up. Or you make an argument that, look, market consolidation has made these businesses a lot better and they should, therefore, have higher multiples. But one of those threes can only explain where stocks are today not a lot of egg. Not a lot. Its okay. Kevin oleary from lake joseph, ontario, the greatest of all the lax. Can you tell kenny g one of your neighbors that we said hello i will tell him that, hes on a wonderful island i dont even know how to respond to that. Kevin, have a great weekend. Weve got to play some kenny g. Now. All right lets get to sue herrera with the latest headlines. Sue . Hi, brian, thanks so much heres whats happening at this hour, everyone two german female tourists were killed and four more Foreign Tourists were injured in a stabbing attack at egypts red sea resort of hergatta the attacker stabbed the tourists at a hotel after swimming up from another beach the assailant was arrested soon after. President trump wrapping up his visit to france. He and first lady melania depart the city after attending bastille day celebrations. President trump saying it was a great honor to represent the u. S. The trumps are headed to their resort in bedminster, new jersey honda recalling more than 1 million accords in the u. S. Because a battery censor can short out and potentially cause a fire the recall covers the 2013 through 2016 model years and a massive sinkhole has swallowed at least two homes in pasco county, florida. It started a as the size of a Swimming Pool before gradually becoming much, much bigger there were no injuries, but at least ten other homes have been evacuated. That is the news update this hour brian, back to you sue, thank you very much. Coming up a bit later on, josh, you guessed it on power lunch. Jpmorgans ceo, jamie dimon, going off on the d. C. Dysfunctioners, a warning sign that were losing even more faith in washington. Amazon everywhere is the retail giant to blame for low wages in the country . Well debate and get this the future of workforce automation one company now using robots to the make and deliver pizza theres your kenny g. But first, there is much more ahead on halftime. John tracking unusual activity in two tech stocks stick around for the bullish bets dulcet tones of sweet, sweet kenny g 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 at the lexus golden opportunity tesales event before it ends. Choose from the is turbo, es 350 or nx turbo for 299 a month for 36 months if you lease now. Experience amazing at your lexus dealer. The power of 100 of the worlds top companies. The power of a proven 15year track record. 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. The cnbc iq 100, up more than 20 for one year. Its an index tracking bigcap companies that get most of their revenue from their own intellectual property. Todays leader include stryker, teradyne, western detail and ibs. Welcome back to halftime senior economics reporter, steve liesman, has a rapid update. The negative data today, especially the negative retail sales data vz a downward effect on the outlook for gdp the cnbc rapid update, which is the median of forecasters on wall street for the Current Quarter or the one that were in the middle right now, Second Quarter gdp tracking 2. 5 . Thats down 0. 2. And we have been as high as 3. 8 when the quarter started, but the data has come in negatively and its been whittled down the range 1. 9 to 3 you can see the First Quarter there is 1. 4 who is where moodys is keeping the faith at 3 Morgan Stanley in action at 2. 6. Barclays at 2. 4 Goldman Sachs and b of a bringing up the here at 1. 9 all of this having a downward effect on the outlook for that third rate hike of this year it is now running for december at just under 40 . This contract is as high as 50 . Well below a flip of a coin now for that third rate hike, bruin . Steve, thank you very much. Sure. Well, jon najarian, always watching the Options Market for you. So we have sent him over to the telestrator for some unusual activity and a trade update. John exactly, bruin. Take a look at microsoft today because my favorite type of trader to follow is somebody whos been right and then gets back in. Today, somebody who last friday bought a bunch of calls in microsoft, sold those calls for a big profit, he tripled his money, or she, and hthey got int these, july 76 calls bought about 15,000 of those calls like that. These calls e s expire next weak i bought them along with them. I bought another tech stock for you, braian, but theres more. Take a look at whats going in western digital. Western digital, they bought, the stocks up 2. 11 early on this morning, they bought the 96 calls. The stocks almost 95 right now. Early this morning, more than like 93. Take a look, july 96 calls, these also expuire next week. Big numbers here, about 8,500 of those. I followed them into this one. Lastly, brian, take a look at nrg. This is an update, because its just been a blowout for pete this week. Stock has moved by right around 36 this week. Pete talked about it monday. The stock was 17is now 23 they were buying the 17 calls. These calls went from 30 cents right there to 6. 20 times your money on this one, brian. A fantastic trade. And nrg continues to work, but were out of it. You are out of nrg . Out of it all right, continues to work, but johns out thank you very much. You may have seen the headline at the bottom of your screen, if youre on the radio, s p 500, yet another record intraday high the s p 500 hitting another high level. I mean, really amazing 2454. 17. Nothing is derailing this rally. All right, up next, we are tracking the traders in our halftime quarterly report. Were going to give you their winning and some of their losing bets from last quarter but first, an s p sector check, all are higher except for the financial stocks, but they are off their lows, as well. The Halftime Report is back in two munns. Well, all this week, weve been looking at some of the traders most memorable Second Quarter calls and seeing how those stocks have performed since. John, lets start with you constellation brands, up more than 20 since you made your call yeah, you know, what do they say, a Blind Squirrel finds an acorn, brian this one worked out well constellation continues to hit it hard. Love it. And i think you stick with this trade. I dont think you get out of it. But as they get into these expensive stocks, i think its wise to maybe switch over into the options, brian josh, mcdonalds, flying past your 130 level. Stock has soared 20 since your bullish call you sticking with it yeah, look, i think this name can work its way higher. I think its gotten a lot of cooperation from the fact that largecap, highquality Growth Companies with good Balance Sheets that are returning cash to shareholders and growing earnings are what people are buying all year. I mean, thats look at all the quantitative breakdowns of whats working, mcdonalds checks almost every box. I dont see why it couldnt continue, unless theres some kind of a big shift in sentiment away from highquality or away from largecap u. S okay, jim, back in april, you said that everybody out there should own Alphabet Google the stock has risen 13 since then lucky 13 keep going higher . Or sell it, take your profit, and move on . I keep it here, and i think you can buy it if you dont own it here. I think the big question here is, is this a value stock . Im a Value Investor should i by investing in this stock . At 20 times forward earnings, im willing to say it is for two reasons. Look at the peg ratio. 1. 5. The other thing is frankly, the earnings estimates continue to go up. Thaur going to continue to go up and that 23. 5 times earnings estimates excuse me, multiple for next years estimate is going to look lower when the actual numbers come in yes, own google here okay, sirott, talk to us about utx, united technologies, up about 6 since your bullish call i think one of the highest quality Industrial Companies out there. Global exposure. Youll benefit from all their products its got a new ceo and guess what, as the dollar gets a little bit weaker, this company will have some good tailwinds behind it, too not all the traders bets this past quarter have done just as well. I like the nail its industrial, its got construction ramifications to the business, everything that you want to see. I think its a buy, not a sell i bought footlocker today, despite the fact that that was a horrendous Earnings Report i think these guys really do well Going Forward, after the dust settles john, footlocker . Terrible call continues to be under pressure terrible call you said it amazon, i mean, i might as well have made the same call about oreilly, i guess, because amazons killing these guys. And i still am long it so well see whether or not it makes any kind of a comeback but the good news, brian, is the volatility went up the bad news is stock has just been slaughtered and its a horrible pick by me. Thanks for being honest josh, fastenal down about 4 since your call. Oh, my god, shall i just take off me should we just not do a show . Should i just not say anything is literally anything we say going to be, oh, i i no longer like this setup here it was a technical idea and it was not acting well. There were too many charts that look unbelievable right now to waste time on Something Like this shorter term. Great company, but not important. Shaq misses free throws. Thats gods way of telling us no ones perfect so i got fastenal wrong zp should i not have mentioned mcdonalds up 20 . You made more on mickey ds. Do you want to talk about dun n Dunkin Donuts so josh, you said qorvo looked good and its down 2 . This stock is a bit of a schizophrenic stock. Would you like to apologize to the people who took this stock and its down 2 its up, its down, over the last year, its up 14 what is this . It provides chips into iphones, okay . Is it where you want to be in this cycle im going to argue yes, especially with the valuation ten times earnings, less than 1 price to earnings or peg ratio this is a valuation, you can own it, but its volatile, so youve got to stick with it sirott, youve owned qualcomm for a while now. For a long time a painful company having a lot of issues, to say the least. Well, with the main issues are apple and qualcomm theyre fighting and suing each other the lawyers are the only ones getting paid there and this has happened with nokia, the strae shhistory show with china they will come to some compromise and the stock will then move up from there. So youre sticking with qualcomm im going to stake with it. Of one of the technology plays, they spend more money on r d sw, have a great royalty income, and they have to settle with apple because they both really need it what would make you sell this stock . Youve been in it for a decade or more. 15 years. You would never sell it i would sell it if theyre not as innovative as they are now. If they were just sitting there saying, were going to be a Royalty Company and collect our dividends, i would move on to nvidia or some of the other companies that are really much more last time i checked, they had 77,000 patents at qualcomm or Something Like that. All right. Gold prices up on the week and on track now to break a fiveweek trading streak plus, were looking to the big names reporting next week. Netflix, more of the banks, it saunit United Airlines and much more. Halftime report back in two minutes. For your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. What in real time . Stomer insights from the data wait, our data center and our clouds cant connect . Michael, can we get this data to. . Look at me. Look at me. Look at me. You used to be the yes guy. What happened to that guy . Legacy technology can handcuff any company. But yes is here. So, youre saying we can cut delivery time . 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 half time report, im jackie de angelis. Were watching gold rallying nearly 1 for its fourth positive session in five the yellow metal now on track to snap a fiveweek losing streak ryan, the u. S. Dollar hitting 2017 lows today, giving gold a little bit more of a boost what else is driving it up well, i think thats the primary driver when you look at it, the dollar being weaker coupled with, you know, comments from yellen where it seems like the fed funds rate wants to stay around inflation if inflation stays below 2 we wont see the rate hikes were supposed to get and thats why the dollar continues to trend lower. Until the dollar breaks that down trend and gets back up through that resistance above 95 up near 100, i think gold still remains a play along with other crypto currency. This is the antifiat playwright now and for that i think gold at least stays above 1200 for some time if you want to still stay in there. All right, were trading 12. 27 right now. What are the charts telling you in terms of levels to watch. Well, jackie, when you look at the i brought a couple charts along with me the first is showing the move gold made when the poor and week cpi and retail sales number came out this morning gold rallied 9 off of that. Now were starting to hit real resistance 200day moving average comes in at 1232. 5 and theres some above that so if youre long, id almost stay long. Tough to buy right here. Id rather wait for a breakout through those numbers before i get long. All right, thanks, guys. Meantime for more futures, check out the live show on tuesday, 1 00 p. M. Eastern time exclusively on futuresnow. Cnbc. Com. Half time is back after this this is where i trade andrs. Manage my portfolio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access 24 7. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. Happy friday lets get a check on the markets. Look at that the s p 500 hitting a record high, the dow hitting a record high as well today things just keep going up despite the d. C. Dysfunction, tom, maybe d. C. Should stay dysfunctional. I just tweeted out stocks up, jobs up, wages up, real estate up. Just go Home Congress for about six months it does seem like it. But you know in some ways, again, it is hard to say what will derail this market. I think thats one of the things that i struggle with everyday. Theres a lot of liquidity on the sidelines. Still yeah. Because we heard that for years and now the market is up at some point do the buyers run out of cash . What we have tokeep in mind High Net Worth individuals havent really owned equities in a big way until recently so i think theres still a lot of money in liquidity on the sidelines, yes. Anybody else have a general market view here jim, are you surprised by the strength all we keep talking about is d. C. Cant get anything done guess what life is going on outside of the beltway. Forget the term complacency which people will want to add to what im about to say. To is right, there is liquidity on the sidelines from High Net Worth individuals. The general trend is higher in the markets until something interrupts it. What could that something be it could be bad earnings but, tom, i may disagree with ow on this the earnings season were coming into will look good because we didnt have many fry announcements. Wait, there was a school of thought, you know the school of thought, there was a school of thought that still exists that if we dont get tax reform the market is going to sink because we havent expected tax reform for months now. This Health Care Bill so we should put that to bed . Put it to bed that theres any trump agenda inside the markets case i absolutely believe thats the case if the trump agenda comes into being, then you have a reason for this leg to go higher but i think youll get slow higher unless something derails it like military action. That is gravy, we get something its gravy. It would have to be literally ignoring everything to think were rallying on the hopes of tax reform look at the country world index. You can almost not find a single Country Market let alone a region where youre not seeing double digit gains. Does that worry you at all in some ways in the best performing stock market in the world this year is greece. Its off a low base, doesnt matter listen, this is important. The s p 500 is up seriously, the s p 500 over the last ten years is up 95 , okay . Emerging market stocks from that same period of time are up 11 not even 1 a year what have european stocks done in the last ten years . Zero percent returns does it worry me theyre outperforming over the last six months absolutely not when you consider that Economic Growth may very well be higher over the whole continent. I agree with that. Multiples are lower. The point i tried to make unsuccessfully is that if everything is up, is there just maybe what was the term, rational exuberance . Everything is not up. Utilities are down, Telecom Stocks are not doing well. Im talking about the world. I think because were so globally tied in together, if europe wakes up, one of the big fears is how can we as the u. S. Do well when the rest of the world doesnt do well . The rest of the world is coming off this monetary surplus that everybody was going into negative Interest Rates a year ago and i think that slowly as money moves out of the fixed income world it has to find ott place to go. And i dont think you can forget about brexit because. Forget about it or cant . Ill never forget about it. As youve seen with the italian banks and Spanish Banks for that matter the ecb has been much more liberal than they otherwise would have. Every time we hear this is going to derail the rally we just keep going on. I think the xrt does continue to rally. The retail etf . Exactly i dont care if its trade or long term, its going. Schwab is in a break out right now, schw. I think look at j. P. Morgan if financials finish up it will be good. Bank of america, merrill, upside call buying, this outperforms after earnings. Contrarian idea, at t i think its an industry ripe for consolidation, big dividend, out of favor. Tom lee, thank you, gentlemen all, have a great weekend. Thank you for watching half time dont go anywhere because power lunch begins right now. We will see you in just a few minutes, welcome, im Tyler Mathisen here is whats on the then you jamie dimon uncensored j. P. Morgans ceo going off on whats wrong in d. C. , the media and went so far as to say being an american abroad is almost an embarrassment. Dimon, like youve never heard him straight before. And plus while everyones screaming that Social Security is going to collapse in 17 years we el l hear from one expert who says this is a phony crisis