Transcripts For CNBC Squawk Alley 20160711

Mike is here to talk about what this means. Mike, what comes next . 14 months without a new high. Whats going on now is of course you had yields globally suppressed and that helped the sectors support the market we talked about over the past few months. Now the question is what happens now. We have the earnings recession in the process of ending so you have the more cyclical sectors and the question is do we rotate or have a broader move higher . Last year the doubts were over it and it wasnt a broad based rally. How different is that this time around . Almost entirely different in the sense that last year it was the sexiest Growth Stocks taking over the world that were leading us there and now its the most boring stuff and its basically just these and to me the question is whether the stuff in the middle the industrial stocks, the consumer disgres nary stocks that have had their kind of quite bear markets can come back on the back of a rebound in earnings. Although the biggest winners since the last intraday high, amazon, ulta. You have your selective winners and those category killers in some sense or another that are leading the way and honestly, to me its much more about it and the dividend guys dont give up a lot of ground, then its a matter of the earnings coming through. People are going to Start Talking about there is no alternative. Thats the strategy. You cant go anywhere else in the world. You dont want to go into bonds. Is there any alternative . Theres plenty of alternatives and whats interesting about the there is no alternative idea is everybody is putting money everywhere but stocks. You have been trying to buy preferred stocks and closed end bond funds because youre trying to find yield. Yes stocks come into this equation eventually and thats where we are right now. Theres a move of people saying i held out long enough. The question is how much upside could you see from here . Because i dont think theres a good answer from that. Stocks are not cheap. Theyre cheaper than the last time we were here at these levels in may of 2015. Back then earnings were about to fall off the cliff and right now probably not the case. Why do you have the likes of goldman repeating the mantra that were in the top 90. Black out windows and the possibility of a sharp 10 drop. First of all its true. I do think because of these uncomfortable dynamics in the world and negative yields and Central Banks seeming like they pressed their bets too hard. We dont have top line growth. Its uncomfortable to make a bullish case on a broad basis when you dont have the growth story that you can apply to a lot of companies. Im encouraged by that reserve of skepticism. You can look at bank of america and Merrill Lynch too. Its going to continue and not be that easy attack. Very well could be the case. It makes sense to at least tack on to this high before we have to maybe worry about that. And at least dont want to take those edges off. Do you think theyre going to support these . I think on balance earnings should be okay. And its very benign and that gives people encouragement that youre not going to have too many at least across the board nasty surprises but i dont think its about companies broadly really wowing us with the numbers. Maybe its just good enough to hang in there. You did write this morning that earnings recession has an outside chance of breaking even in this quarter. It does. Basically the consensus is down 5. 6 at this point. On a typical quarter about 3 to 4 of upside to that estimate so you can get in the range of flat. Next quarter looks about flat. Were talking about helping us out here. Its all going to start tonight with alcoa. Meanwhile were still figuring out how the brexit will impact the markets here and were getting breaking news on that story out of the u. K. Wilfred frost is on the phone with more on the developments of who will be the next prime minute officer and when David Cameron will be stepping down. David cameron has confirmed he will be resigning his position offering his resignation to her majesty the queen on wednesday and the new Prime Minister will be in place by wednesday evening. This follows the development that he is the only remaining challenger that pulled out of the race early this morning. The certainty of the new government would come sooner but would cause slightly more proeuropean and she made it clear that brexit means brexit and the focus will be the break down of her cabinet. Thanks so much wilfred. Nbc news reporting that David Cameron will do the question time wednesday 7 00 a. M. Eastern time and well follow that of course when it happens. Meanwhile a push for higher rates from a fed official. Steve has that story for us. A wellknown hawk and also a voter this year saying she supports raising Interest Rates gradually. Youll remember she had descented for much of the year and then did not descent at the last meeting. Now she is saying rates are too low given u. S. Economic progress and she is concerned about financial ib stability from low Interest Rates. The june jobs report was welcome. A generally upbeat view on the u. S. Economy. The weak may jobs report and brexit influenced her decision. So well see. It sounds like Esther George may be back to her descenting ways. A lot of fed speak still to come. Shes one of 14 fed speeches and events this week well get. Now theres only 13 left. Thank you. Steve. Dow is up 106. Lets check in and see whats going on on the floor. Intraday highs on the s p but not on other critical sectors of the markets but its still risk on day. What utilities, what telecom. Their second day in the row to the down side banks. Industrials leading technology and Energy Stocks and utilities and telecom lagging here. We have been talking about this triple whammy throughout the morning. We have momentum from the new highs and new leadership happening faster than expected. You heard from wilfred that helped the pound over there and the big election victory in japan has people talking about more stimulus there. Nikkei was up 4 overnight here. Industrials a number of new highs and were expecting 3rd quarters to see improvement in the industrial sectors overall. Ge, 3m and honeywell all at 52 week highs here. Still shy of highs on other major sectors. The dow transports it isnt there. Below the russell 9 and the s p midcap. 2 below the recent highs. Mike was talking about the sector leaders and its been remarkable since the last historic high. Only about 2 each of the s p 500 by market cap. The only other one is Consumer Staples. We keep joking about clorox at new highs but the Consumer Staples pushed us to the end of new highs. What we need to see now is the groups nobody paid attention to. Energy stocks and financials that were down 7 since that time period has to move forward and kind of take up the slack here. Oil prices need to stabilize and move up. Some of the health care thats been flat for the last year and a half or so to move up as well and in the 3rd and 4th quarter thats what they are expecting. Big plans for industrials coming up. Plans for health care and plans for financials. And at this point, Interest Rates just a little bit too much and it could happen. We could have this earnings recession end. A lot of things could go wrong including a sudden move up in the dollar. About to throw a big Monkey Wrench into a lot of peoples plans. Back to you. Thank you very much for that. Microsoft and ge meanwhile announcing this new Cloud Partnership and the chief executives of both companies sat down with john fort in the past hour. John is in canada with the latest on an interesting interview. John. Thanks, carl. Yeah, the news here is that ges platform, its for the industrial internet basically. Its supposed to keep the trains running on time. Also planes, Health Care Equipment and more. Its going to be available on microsofts crowd and already available on amazon. So the advantage to ge to move into microsofts cloud is pretty clear. But i asked microsofts ceo what is in it for microsoft . Heres what he said. The way we always thought about our partnerships is what are the companies that are innovating in software . Building solutions that we can partner as a platform provider . In the past it was about tech companies. Ge is a Digital Company Building Digital software. So theyll continue to be a parter in and ge will be in the same class. And beyond that we also talked about nationalism. Protection i feel. What ever you want to call it. This move in countries to focus more internally and reject globalization. Jeff has spoken out on the dangers of that trend. Take a listen to what he had to say about that. Everybody looks at these trade deals and things like that to be from microsoft or ge or big companies. We already globalized. We had 400 factories around the world. Microsoft does in every country around the world. These trade deals help Small Companies and not big companies. Were for the Export Import Bank but if theres no Export Import Bank well move production around the world and take a look at banks around europe and other places. So i think smart Global Companies have very smart local strategies that allow them to continue to grow while politics are in that part of the world and allows us to serve our customers globally. And reading between the lines, that means viewer jobs in the u. S. Less Capital Investment in the u. S. And less policies are more trade friendly. Both talked about the upcoming election saying they would like to hear more of a both and when it comes to investment and closing the gap between the haves and the have notes and globalization and Companies Expanding around the world and doing work around this world. Instead of this either or thats more of the tone guys. Thank you for that. Well see you soon. When we come back some big news for twitter today. The Company Making a big announcement for its Live Streaming service and then retailers looking to take on amazon ahead of prime day tomorrow. Its all good news for consumers. Plus got to catch them all. Why a brand new game from nintendo has everyone talking. The nasdaq is five points from 5k since new years eve. [announcer] is it a force of nature . Or sales event . The summer of audi sales event is here. Get up to a 5,000 bonus on select audi models. Less than a month until the olympics headlines now on another athlete deciding not to attend. This is one of the top ranked golfers in the world. Jordan spieth, a former masters winner and u. S. Open winner now saying he will not compete in the rio olympics. It is unclear as to the reasons why but it is pointed out here that just last week he was speaking about whether he was going to play or not because of concerns about zika and perhaps security. But no reason yet that we can see given for the reasons why he is with drawing but he joins a host of others like jason day, dustin johnson, rory mcilroy opting to skip because of zika. Thank you so much. Twitter announcing it will live stream at Republican Democratic conventions in partnership with cbs. And more Live Streaming deal with the nba with major league soccer. And Senior Technology writer and buzz feed news. Good to see you both. Are you beginning to get the sense charlie that their tentacles are starting to find conviction in the new areas . Yeah. I think that what we have seen over the past week is this massive Live Streaming, live video push from both. But when you look at twitter, twitter is a place for real time news. As it happens, people are there to absorb all of this information. And to be able to have these Little Windows where you dont have to move anywhere. You can just click it and open it. Thats huge. Its something that a lot of people discovered because they are it in their existing twitter feed. Theyll have to put behind convincing people that this is a destination for them . I mean this is part of the larger push for twitter to get more users and to think about it as a destination to watch. You know, the conventions and all kinds of news events and even entertainment and sports but what we saw last week is that facebook is really moving into this aggressively and its a place where people check multiple times every day so thats what is going to be difficult for twitter i think. If they had done this six months ago it might have been easier but i worry that people are going to start thinking about this stuff on facebook rather than twitter now. This is being done in conjunction with cbs as we said but we also did some wimbledon coverage in conjunction with espn. The reviews of which were mixed. I wonder if you got to see it or if you are impressed. One of the things that is better on facebook is theyre targeting this to people that might want to watch them. Thats the difference between its feed and twitters chronological more chaotic system. So no i didnt see them. I think ill probably try to watch the conventions on there and one of the ways that i started to enjoy politics in the last couple of years is by watching twitter while i watch things on tv so this makes that part easier. Yeah. Thats going to be a big experiment. Meanwhile guys tomorrow is amazon prime day as you know but walmart is not sitting still. Offering Free Shipping on all orders for five days starting today. Also big discounts on hd tv and apple tv. Walmart is not alone. Target, sears, the gap offering diskounlts on items online and in store. How do consumers think about this . Do they assume that the experience will be equivalent on all of these different places . I they you can look at it a little bit like twitter versus facebook. Amazon is where people are doing their shopping. Where they already have the set family processes. Buy this, have this come immediately. Its engrained into the consumer way of thinking and i think that theres also something a little bit more smooth and that feels a little bit more progressive about amazon versus sears. Right. Where you have to enter your credit card again and develop a new password. Theres platform fatigue to some degree. I think so and they got a little bit of flak for having their deals be a little they ran out quickly and some of them were lackluster but if theyre going to learn from that theyre the worlds Biggest Online retailer so you cant beat that. Last year when amazon had its prime day we made comparisons to alibaba singles day and the whole day was at the expense of amazons own margins but the fact that theyre riding to this occasion does that mean prime day is a thing now. Its a thing. Im not sure if its a thing. Its a thing for amazon. People need to sign up for prime. Its what makes you but Amazon Shopper so i dont think they care as much about the margins as the shoppers and they have their own Subscription Services but theyre just offering kind of one day discounts. Finally guys, shares skyrocketing on the surprise success of this new video game that puts pokemon on your smartphone. Julia has details. Pokemon go is a new augmented reality app that they can chase pokemon characters through the street. Its all adding about 9 million to the game. And the first mobile game past october. And its downloaded and the highest grossing app in the countries where its available. The game was in fact so unexpectedly popular. And use your gps and you make it look like youre on your home screen in the world around you. It can cause a number of accidents as people walk around staring at their phones trying to find the pokemon characters and theres reports that teens used the game to rob people. Now theres a neutral rating on the stock saying that the share rally looks excessive based on profits from pokemon along. Theres revenue sharing deals. But jeffrey with the buy is more bullish. Saying its the tip of the iceberg for nintendos move into mobile. According today at a firm similar web, then tender and its close to being twitter in terms of daily active users in the u. S. On android. Not to mention the engagement and other things. Did you see this coming . No, i didnt see this coming. This took me by surprise. It took everyone by surprise and its like socially transformative phenomenon. Im not sure that itsz like going to be great for nintendo in the long run. One of the things that im skeptical about is nintendo didnt develop this. This is a licensing deal. The company that built it was spun out of google so im not sure that it tells us about ninten nintendos longterm innovation but its good in the short run and a great social phenomenon. How long until we see copy cats . Very soon. This is big for augmented reality which is sort of always been this thing in our minds that i was dont really know how it translates when you put it out there in peoples hands. And a couple of summers ago. The copycats dont always work that way. And people will put a lot of money behind this. You need it just like you need kim kardashian. Were going to watch and see how it develops. Thats for sure. Thanks so much. Nice live shot by the way. Coming to us from aspen. When we come back twitter and yahoo both under pressure this morning after two key downgrades from one analyst. Coming up why our next guest says the two stocks may have fizz ld out. Stay tuned. Hiim here to tell homeowners that are sixtytwo and older about a great way to live a better retirement. Its called a reverse mortgage. Call right now to receive your free dvd and booklet with no obligation. It answers questions like. How a reverse mortgage works, how much you qualify for, the ways to receive your money. And more. Plus, when you call now, youll get this magnifier with led light absolutely free when you call the experts at one reverse mortgage today, youll learn the benefits of a governmentinsured reverse mortgage. It will eliminate your monthly mortgage payments and give you taxfree cash from the equity in your home and heres the best part. You still own your home. Take control of your retirement today yahoo s impending asset sell off for the lower ratings there. Twitter down 2. 5 . Bob peck is the internet analyst and you made a lot of calls about twitter. Namely you counted a buy and said it would reach 18 and a lot of people doubted you but now you say its going nowhere from here. Its had a great run. Its run 30 over the last month. A lot of that is tied to the linked in acquisition by microsoft. Seeing other names have also run in that vain. As we have said, we dont think m a is likely in 2016. It may be inevitable in 2017 depending on how the trends go but we dont think thats like lie here and we look at the trends and the data currently. Theyre still challenged on users and engagement and peel are hoping for catalysts the second half of the year. Part of why it wont see any m a is it has no growth. No one likes to buy a falling knife to use a metaphor that ive heard from others. Not necessarily myself but the stock is up. And linkedin was down when it got bought so why not . Its still an intriguing asset. Its your best real time Search Engine out there. Its your news source so its a great place to go. Certain plays make sense. Apple, google, facebook, media companies, so it could happen if theres a process but with a new board that just started a new ceo less than a year. If theres m a its after this year. You write about moments not sparking engagement or user growth. What were you looking for when things like that were announced. We were looking for a new up tick in engagement. People using the platform more and from the data we could see none of that works yet. Theres still the back half of the year. More periscope content. More of the events being streamed. Wimbledon. The conventions we were covering earlier today but those are happening in q3. What are the second quarters earnings going to look like. This is funny so we looked at the street estimates. A lot of people feel the numbers are sandbagged for the year and people are making a rebound in 3q around nfl, olympics, political side of things and rebounding more so so if the street has it right, it hit our 18 target here around 13 times we thought it was fair. So we didnt take our target down. We just thought the stock was fairly priced and couldnt justify taking the target up further. Yahoo you also downgrade but thats a funny situation because how can you calculate an outlook for a Company Whose future you have no idea what it will look like. Theres two things there that are really important. One is last week the mozilla agreement and these that are attached to the bids and koul take bids down Going Forward from here. And as we have written, it really doesnt matter in the grand scheme of things. The bulk of the value here is attached to alibaba. I dont think investors understand these are hooked. If they ever buy them or do a did i have tend in the future theres going to be tax consequences to them. I dont think investors get that which takes the Net Asset Value down. But they suggested they dont want to do that. It doesnt matter if its a separate vehicle or own it in house. Why would they do that . Wed think they would want to do it depending on a discount so i dont see that happening near term. I dont think that will be an 16 event. 17 possibly. That means the value of the shares have to be lower. Less to do with fundamental share in digital or anything like that. Exactly right. The bulk of the value of why hoo yahoo is tied to baba. Were pointing how complicated that is. It will take 18 months before that rectified. I remember speaking a few days ago, if you downgraded yahoo you downgraded twitter. Amazon i think you said there were no more theres no bears out there so the favorites remain for you . Well, the favorites remain our top two picks as we said last week. Still remaining google and facebook and all during the quarter on how social is doing. Facebook is doing phenomenal. Snapchat is doing phenomenal. Twitter is losing some of the incremental budget. Thats part of our concern here. Its about 90 . So theyre right there with facebook and facebook has better techniques. Our viewers are googling right now. You know how to move a market. Thats for sure. Meanwhile markets are closing moments ago in the u. K. And across europe. Stocks are up for a third consecutive session. The hope, more monetary easing by Central Banks. Mining Industrial Technology shares. All of those sectors leading the way higher. David cameron announcing he will tender his resignation by wednesday. This paves the way for home secretaries to succeed him as Prime Minister. Speaking outside 10 downing street moments ago. Im delighted that were not going to have a prolonged conservative leadership election campaign. I think she has made the right decision to stand aside. Im also delighted that theresa may will be the next Prime Minister. She is strong. She is competent and more than able to provide the leadership our country is going to need in the years ahead and she will have my full support. Of course the pound liking that move as well in the lack of uncertainty at least for the time being. Speaking earlier to supporters in birling hamm england she told them brexit means brexit and there will be no attempts to keep the u. K. In the eu despite the fact she supported the remain campaign. The british lawmaker, her rival in this race, pulled out of the race earlier this morning. Saying she did not have quote sufficient support for the win bringing a two woman race down to one for the leader of the conservative party, carl. Big story and well get a bigger story on wednesday. Ufc selling itself for 4 billion to Companies Including one run by former dell ceo. Michael dell. The details of the deal in a moment. Heres your cnbc news update at this hour. Defense secretary ash carter arriving in iraq on an unannounced visit. Afterwards he proclaimed the u. S. Will send 560 new troops to the country to step up the campaign against the islamic state. Theyll advise local forces as they plan to retake mosul. House Speaker Paul Ryan will address the Republican National convention this month after his staff leaves to deal with Party Officials and donald trump. Hell deliver a 10 minute speech that contrasts the ideas between the gop and democrats. Starbucks will raise wages for all employees in the u. S. By 5 to 15 this year to an increase in base pay and stock awards. The chief executive is telling employees in a letter the increase will come in october. And Maria Sharapova will miss next months rio olympics. After they decided to defer the decision on her appeal against a two year doping ban until september. Thats our cnbc news update for this hour. Back to you carl. Thank you very much. We have been talking about it all morning long. Microsoft teaming up with ge. Both companys ceo comments on the news. John fort is in toronto with the highlights from his exclusive with both of those gentlemen. Hey, john. Carl, i sat down and talked about this cloud deal with ges platform moving to microsoft but we also talked about a number of other topics including the upcoming president ial election. Were heading into convention season. I asked microsoft ceo what issues, policy issues hes going to be listening for out of those conventions. Heres what he said. Theres many issues that i talked to all the politicians on both sides of the aisle every day. Whether its imfwrags or patent reform or trade. But quite frankly right now what im looking for is the politics in our country to get to a place where people can win elections by making a case for both globalization and addressing the inequities that do exist in our society and well have the right dialogue. They have to be the beacon of progress. Both the equities in our society are being addressed and at the same time we can shut the world out. Jeff do you see that the same way and what kind of message do you feel like we need to hear to get at that, if so . Three things, really three things. Security, theres other people smarter than the two of us. Not many. Its not going to get it done. We have to have more progrowth policies as it pertains to 5 of the population in the u. S. 25 of the worlds gdp. That doesnt end well for a country like the United States. So pro growth policies and unity. All of us want to see just more constructive dialogue that takes place between business and government and some of the tragedies that have taken place recently so i would say and that helps most people. Pokemon go after the past few days exploded on mobile devices. Its a popular game. You know pokemon. I never played. Im a little too old but it uses augmented reality which is an area you pioneered with a hollow lenses. With you missing an opportunity by focussing high end when people seem to be excited about simple applications or is there room for you to apply your technology in this more than you have already . Its fantastic to see these augmented reality applications getting build because the best thing that can happen when create a new category is for applications that are these killer apps to get invested in. So theres pokemon interest will translate into a lot because if you think about it, the game physics of that app are built for it. The phone is great. Because after all the install base of the phone is so enormous that it makes it possible but think about what that game would mean. Youre not trying to use a phone when you can actually just use your eyes to look through and have that augmented reality experience. Even just at this conference we showed not just gaming though because to me the industrial scenarios, whether it be education, training, manufacturing, architecture, industrial design, they will be fundamentally changed. So its the ultimate computing paradigm and im happy for pokemon and the industrial applications. So youre buying howell lenses. Were all over the technology. I think that what microsoft is working on theyre keen on. Theyre not the only ones but theyre advanced. If you can take the cycle time of lets see the utility or lng plant or refinery down by 10 . You had a chance to visualize and manage the human data interface down by 10 . Thats probably worth 50 billion or something. You know, im not a great gamer so i cant really i cant really say how much that is worth but the industrial applications of this are going to be billions of dollars of productive and thats where the industrial how far off do you think we are from Widespread Adoption of technologies like like this . Yeah. Within 24 months. And that was one of the big takeaways from this interview. Jeff immelt of ge. Just as excited about augmented reality and its ability to save Industrial Companies billions of dollars within a two year window right now. To an opportunity to make a lot of headway there. Back to you. Great stuff and really important. Well see what the next 24 months look like. Thats for sure. When we come back its set to be the most expensive deal for an organization in sports history. The ufc selling itself for 4 billion. Details on that in a couple of minutes. Coming up what one big money hedge funder told me about where stocks could go next as the s p hits a new high today. Plus does it mean more stimulus is on the way and what the number one integrated oil analyst on the street says you should do with the stocks . Well see you in just a few. Sounds good scott. Meanwhile breaking news on viacom today and sumner red stone. Julia is back with that. Yes, the latest in the drama this morning a california judge is rejecting a new trial for sumner red stones exgirlfriend. This out of a tentative ruling coming out of Los Angeles Superior Court this morning. The judge saying a new trial is not reasonably nest to protect redstones interest as a patient. This is tentative ruling and theres questioning about whether or not there would be an independent examination of his mental capacity so that has still not been determined but this appears to be a big loss for herzer and a big win for sumner redstone. Well take it from there. An update on the redstone situation. The ufc confirming this morning its being sold for around 4 billion which at that price tag stands to be the most expensive transaction for a Sports Organization in history. Cnbcs robert frank is standing by with all of the eye popping details. Eye popping indeed when it comes to wealth creation. The brothers made their first fortune in casinos. They hit the big jackpot today with the sale of ufc. They each held 40. 5 of ufc which they bought in 2001 for only 2 million. They will each get under that valuation 1. 6 billion in cash from the sale. Now theyll have to pay down some debt and other considerations but before this deal forbes put the network of each of the brothers at 1. 6 to 1. 8 billion. Their true network was far higher before the deal and now its higher and most of that fortune is liquid. Thats because this is their second big pay out in just three months. In april they took their Casino Company red rock resorts public and netted 400 million in cash. It was founded by their father frank jr. And went into bankruptcy in 2009 after the brothers took it private. Now that Company Red Rock has a market cap of 2. 6 billion. So thats their second company. Now these two brothers are equa companies and theyre extremely close. They work out together every morning at 7 00 a. M. , attend most meetings together, always with diet dr. Peppers, own multiple yachts and planes and are major art collectors. The question now this morning, what are they going to do with all that cash . Frank is still the ceo of red rock, but theres talk of them making a run for an nfl team, especially with las vegas lob ig for the Oakland Raiders. The Oakland Raiders valued around 1. 4 billion. Lorenzo if he did this could basically buy his team with his take from this morning. Back to you. Even though youre a tv guy, robert, you bring the colors, diet dr. Peppers. Thank you, over at hq. When we come back, uber and a airbnb, bringing it. A lot more is uncertain. Squawk alleys back in a minute. New date toe shows unicorns startup, 1 billion or more, venture Capital Investment. The numbers two be deceiving. Heres what it all means. Hi, carl. Right. In u2 unicorns grabbed the largest share in history according to a recent report out from the pitchbook. Investments and startups totaling 22. 3 billion. That money wasnt divided equally, though, across all types of startups. Almost 40 of all of the investment in q2 were 8. 8 billion actually went towards unicorns. Looking more closely at the data, its skewed because of one powerhouse startup in particular, uber. The ridehailing service alone accounted for 5. 6 billion. Of that 8. 8 billion, more than 60 . Even as professional investors piled into uber, however, earlystage startups are struggling to find funding. Q2, the number of first financing with vc involvement dropped to 525. A nearly 40 fall from the yearago period. Dyroen deeter tells me he expects this trend to change, starting to put more money to work in earlystage companies as the Public Market hits highs and private market valuations rationalize, and deeter tells me to look for a pickup in tech ipos after labor day. Of course, this week all eyes on line, trading on the nicee on thursday. Stocks trading near session highs. Watching the nasdaq and whether or not that can climb above 5k for the First Time Since new years eve. Were back in just a moment. They may want the latest products and services, but they demand the best shopping experiences. Theyre your customers. And by blending physical with digital, cognizant is helping 8 of the 10 largest u. S. Retailers meet their demands with more responsive retail models. Ones that transcend channels and locations, anticipate expectations. Creating new ways to engage at every imaginable touchpoint. Its a new day in retail, and together, were building the store of the future. 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Sixtyfive may get all the attention, but now is a good time to start thinking about how you want things to be. Go long™. Americans are buying more and more of everything online. And so many businesses rely on the United States Postal Service to get it there. Because when you ship with us, your business becomes our business. Thats why we make more ecommerce deliveries to homes than anyone else in the country. The United States Postal Service. Priority you as the dow and s p are near record levels, the nasdaq is still shy of its record level. Though it is closing in on 5,000. Bertha coombs at the nasdaq with more. The nasdaq had a rough time of it compared to the other major averages, and not at that 5000 level since new years eve, all year long. It has made a big recovery from the february 11th lows when it hit around 4209. The 20th will be the anniversary this month of its alltime high of 5231. Still got 4. 5 away from there, but among the stocks today that are moving the highest, a lot of commerce and internet stocks, including jd, by dew aadoo and tweet from the elon musk about new secret mystery plan for tesla he plans to reveal at some point. Amazon the biggest force hitting yet another alltime high. The one fang player operating on all cylinders in terms of gains. Netflix has a way go and apple a drag on this market. Back to you. One to watch for the afternoon. Whether or not it can close above that magic number. Netflix not helping saying could be huge downside. Winners since the last s p high, nvidia, top gainer, up 143 . And amazon. Yeah. Unbelievable. Over to hq check in with the judge and get the half. All right, guys, thanks so much. Welcome to the Halftime Report hrt. Im scott wapner. Stocks at new highs. Does it mean more risks for investors . With us for the hour, joe terranova, sarat sethi and jon and pete najarian. The s p 500 setting a new record high. Big question for investors, buy in or beware a question even some of the biggest Money Managers in the world are debating today. New at noon, one such manager telling me today stocks are not cheap, not crazy over valued either, ou