Youre bullish the market. I think it is a very good sign and if you look over 20 years, 30 years, 40 years, that actually happens they are playing catchup and thats a good thing. When investors, particularly index investors, are where they can still get some value and, of course, its small caps. Not only that, if you get these plans, and theres no expectation of market now, maybe some start to creeps in on tax, if you get infrastructure and tax in the u. S. The small caps will benefit tremendously for a lot of domestic issues trump is focused on i think they will do quite well. It helps keep the haters at bay. One of the arguments you can you make is, you know, small caps arent performing. Transports arent performing we hear all those lines all the time. Russell 2000, as we said, outperforming month to date. Thats a sign of a broadening and stronger rally. We talked time and time again about the rotation of the rally. Its between sectors and actually even between the s p and the nasdaq and the small caps and all of that, and we just continue to see it each and every day. The one story i thought yesterday that we didnt really cover as much is what a great move in the financials yesterday. I mean, we got caught up in so many other things. Talking about tech and the semis, and look at how impressive funny you would notice that. Funny that you would notice in a. One of our favorite stocks, citigroup. Citi over 71 and bank of america pushing towards 25 and Goldman Sachs back up near 230 and jpmorgan up in the 93s you look across in the financials as well so rotation, rotation, rotation we know how fast it is one day they love these and next day they roll into the next and thats a healthy market, and i think thats the market we obviously are in. The back. F. A. N. G. Stocks was starting to get a little weighed down by, you know, the weight that everybody was was putting on it. Yeah. To carry the load of the market now you get a more broadening rally to some of the things, some chips, so in technology its other things that are working, industrials, materials, these reflation trades back on seemingly. So youre wondering whats going on, and i think what steve said is exactly right, but i think Something Else is going on scott, youll remember it was two months ago that we had a pretty steady drum beat of people saying this market is too expensive. Look out for a correction. I dont mean to name names, but howard marks, these are good investors, jeff gundlach, stiller. All of this a steady drumbeat. A lot of people got spooked out of market because that have and now its catchup time. If have you to play catchup, where will you get the highest beta in smallps can a smallcap value is basically flat on the year its underperformed the whole year so thats a place i would expect to seal particular flows, the russell 2000 value on the upside. How about over the last month and in general, joe. Energy 7. 5 , health care 5. 5, materials as we just said 5, industrials 4. Ant it continues to be a rotational environment and thats the most important thing as pete is talking about one sector when it appears to modestly pull back so far year to date domestic cyclicals is up 8. 5 and global ones up 18. 5 so if you talk to a smallcap manager, they are doing great and seeing great returns. A lot has gone on with the lower dollar and that impacts small caption. Now youre getting the lift now and a lot is based on what were witnessing in financials not just the big five in financials, but the regional banks are recovering as well, and and understand the exposure not the iwm but the actual russell index is over 22 to the financials if you are going to get a continued rise in yields, if youre going to get a fed thats going to normalize its balance she had and pull back from buying treasuries then finally, finally youll get the yield story. Does this have staying power across all of these sectors that weve been talking about, not just the banks do the small caps keep working i would focus on financials because if financials work then small caps are going to work thats the key to small caps continuing the rally is the financials will will the financials youre telling me the russell cant work without the financials no, too much of a significant weighting and thats why youre seeing the recovery youre seeing right now. I agree, but i think financials will probably work. Talking about this for financials its been three steps forward, two steps back and when you get the two steps back, everybody thinks the wheels come off the bus and then you surge to a new high. I think the reason is yes for one reap are, and youre alluding this. Within sectors theres still pockets of undervaluation. You were mentioned industrials whenever that name comes up, i think about the United Technologies and boeings of the world, and i would look at them and argue they are too expensive, but within the small and midcap space in industrials, can you find real value. Give me a name. Chicago bridge iron this is a company, cbi, very difficult to value because quarter by quarter they have longterm contracts that they are missing on and might miss a quarter or two and get shot. I called that Company Chicago bridge and tunnel one many time by accident. Syntas, another name that fumt atherley sounded i would jump on Chicago Bridge and iron and thats a name that gets talked about with a potential takeover also option activity in there as well look at the performance out of this thing absolutely an animal the other name is boeing how great has boeing been throughout this entire run unbelievable, and everybody wants to point to valuations do they ever look at the cash flows . Thats the one thing i constantly want to point out. For boeing. You buy boeing fresh here yes if you look at the cash flows they got. The stock is up better than 62 . I still like apple up over 60 . Listen, ive made that game its up 62 , could be up 72 was. Almost dume in a year t. If were going to say so what, then weve basically got to say valuation doesnt matter. First of, its a fabulous cop its americas best shining light in the global economy. 14 times Free Cash Flow and 20 times earnings, i dont know you get much more oomph in the stock price at this point. What do you think, i disagree . I think theres plenty of upside and you look at the stock versus the cash flow and europe looking apt pe you look at pe but you take your eye and look at Something Else, and if Something Else is standing out, it makes a lot of sense i mean, theres a lot of tech names when you look at them. We talk bin vidya, how many times a day hon in network you hook at the pe saying, you cant be involved in reality but its look at the greet. If you got would you buy nvidia at 188 . I bought it the other day and have had remorse since i pulled it on friday you think its going 250 where the analysts say its going diagnosis is 8 to 250. Sound kind of cheap. Nvidia is almost amorphous. Boeing is a different story. Its a finite end market with planes, so i i think youve got to look at it more like jimmy does. Battle between nelson pelz of Procter Gamble taking a new piece this morning they are overseeing a melt weve heard over and over again the next guy in things are going to be great and the next guy is in and things arent great so what is dangerous to continue the way they are doing things today not me ill be one vote out of 12 how disruptive could i possibly be all right for more on nelson peltz rebuttal, lets bring in david faber who took part in that interview. David, where does this go from now . I think youll ton have this back and forth for the next couple of weeks until we have the annual meeting its a recommendtively Close Campaign from what i tell at this point why reason why, of course, you see both side willing to come and air thats thought it could isbly push it one would i or father in at the crux of this, i mean, as hell say, im only one guy. I want to be added to a board. Dont want to kick everybody off. Take it from 11 to 12 but this is the way pg e is currently managed as you heard is not to the benefit of shareholders over the long term or even over the short term lack of decisionmaking at highest levels and lack of accountability, inability to respond to changes in the marketplace in an agile and quick fashion. Alternatively pe says thats exactly what were doing right now. Fehave the right team, we experienced. And they are committed to win. The back will continue in what is an enormous company and its future really is, in some ways, you do argue in the balance in terms of the way its run. Youve got the other looming proxy fight with ackman and adp. I know well speak with bill tomorrow here. Right. And get his first comments on what he thinks about where this whole thick has gone youve spoken obviously with the ceo of rodriguez and ackman, us a made the point earlier, hes only a 2 common holder of stocks, so it makes it for a potential difficult battle on his end, i believe you said earlier. I think so, scott i think thats going to be a tough one. Hes going after three seats, as you know, and and some of his actions here have been somewhat curious. For example, the decision not to fully convert all of his derivative position into a common position prior to the record date passing so he cop spent by 4 . Its going to be a tough fight for him is the sense that im sort of getting. He believes they can massively improve their margins at the company. Ill be interested to hear thoughts tomorrow with you in terms of what he thinks we can do which is i would argue reversing the momentum here. Well ask him about all of it on a busy day for you have tmobile and sprint. The onagain, offagain, now its onagain. In fact, they aring. They are stocking about a trance for trance transformation in which is tmobile would be the joint owner of tmobile and sprint many theres been conversations about governance that they have been dealing with in terms what have say and what powers massa would have john ledger would run the combination, and they are getting towards and end point here they still have weeks tag, but my sources who are familiar with what is going on tell me that term sheets are out at this point or i should say they are being worked on right now trying to hammer out what would be an Exchange Ratio for the two companies. Tmobile has yet to do its Due Diligence though yet on sprint and thats still to come, and then the larger question, the largest question, even if they do get to a deal between the two is what will the antitrust regulators have to say about the prospects of number 4 and 3 getting together in the wireless market in the United States . And on that, well, a lot of people its not a particularly easy teal to get done. They are work very hard at heat getting something done. Good stuff, david thanks for sticking around. You got in. David faber with the Stock Exchange youre looking at the options. If you go back to last week and tmobile, somebody bought up 75,000 of the calls. That was on september 14 then yesterday on the morning somebody walked in and bought 20,000 of the october 67. 5 calls. Discipline dictates action thats why i dry to live off of. We had than well over 1 now but you have to sake some off. People want to think this stock has upside from here based on what they are hearing and all of the different discussion will tmobile get somewhere near the 69 number that it was . We looked on a chart last night and it looks like it wants to get there. You can opine or tmobile or sprint and now a contentious battle between nelson peltz and that company tomorrow well hear more about adp and that has the most opportunity in terms of price and where thats going to be going. Procter gamble, look, the stock clearly has performed and its rewarded you so far year to date its approaching 100. There is institutional support, a large Stakeholder Fund supports mr. Peltz in his efforts, so, you know, in terms of ownership of the stock, i dont think youre doing very much with it i think youre staying with it i believe that the stock guards towards is money and youre watching back and watching how this den hick you have to be careful. Its going to be a stock for stock deal however, the combined energy is taking the sin egypts out and the cost save is massive and that is what drives it fire . Nelson peltz clearly a great businessman. He can add value there i look at it from the funds sight, hes performed in line with the s p with his funds, yet youre locked up to five to eight years. Can i ask how is that and im not im not saying its relevant. Looking at it the from two different separate ways. Everybody is bringing up the trust. What does that have to do with Procter Gamble the relevance is hes not adding that much more value in a general portfolio to the names that he brings there he eat going the most. I to think joe, joe, joe. How do you get the numbers to make for you. De i said hes a brilliant businessman and cant outvalue p g. Im looking at it two separate ways. Lets see if nelson kean had. They got rid of a sclerotic bureaucracy and changed reporting lines show that everybody knew exactly who was accountable to who hes looking at Procter Gamble. He had a lot of help there. Notwithstanding the problems were there and they have been solved. Hes a great guy. Now hes looking at pentagon and saying i see the same hes looking at p g and saying i see the same thing they have performed okay relative to value overseas and they have massively underperformed the s p 500 maybe thats an unfair perspective. Maybe the s p 500 is too growthy for p g, a all right a reminder, dont miss our exclusive interview with persian squares big anointment. Tomorrow at noon eastern, his battle with adp and Hurricane Maria is about to strike puerto rico wtvj Steve Maclaughlin is back with us and back tracking this dangerous storm. This storm yesterday got up to 165mileperhour winds, category 5 its still category 5, 160 and just crushed dominica. Were getting reports of widespread devastation communication lines and more to come in the coming days. Up next, Virgin Islands tonight and puerto rico tomorrow, especially st. Gusts of 80mileperhour and 1 tomile winds. Four to sixfoot storm surge and potential tornadoes and we really quickly want to talk about hurricane jose winds of barely 75 Miles Per Hour barely a hurricane v. Warnings from coastal rhode island, cape cod to just south of boston where we have Tropical Storm winds of 39 plus, maybe up to 60, 3 to 6 inches of rain and perhaps a bullseye of 8 inches and the next question, where does maria go . It will encounter jose jose either brings it to direct landfall North Carolina and up the coast, absorbs it or it push ed it out to see we promise you are working on the details and back over to you. Thanks a lot. Announcer next, the cnbc fed survey has some surprising insight into whats next for chair janet yellen. Plus, debating under armour. After one analyst says get away from this stock. And wait until you hear about another call on tesla saying this stock could lose a quarter of its value the halftime rertpo with scott wapner and the traders is back in two minutes not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. Can we do that . Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Welcome back, everyone im sue herera with a developing story for you. You may recall theres been an Ongoing Investigation by 41 attorneys general across the United States into the opioid industry as the nationwide overdose crisis continues. Today the new develops is the attorneys general have basically moved to subpoena the companies and the manufacturers requested documents. The Companies Involved are endo international, jansen pharmaceuticals, Teva Pharmaceuticals and allergen in terms of the distribution practices, these Distribution Companies will also be subpoenaed you are up to date, scotty ill accepted it back to you. Thanks so much. Housekeeping time. Steve weis i have it on pretty Good Authority that nelson peltz has doubled the s p. Ill show you the numbers. I dont know what time frame exactly youre talking about. From inception. Im happy to show you the numbers. I got them right here. I got the deck right here. Theres a difference between sort of when you get involved for all the time frames that that maybe youre focusing on and what youre focusing on. Im focusing on from inception, his own numbers. His longterm performance this speaks for itself as he said. Im not going to get into it now. Im telling you, im not his presentation im looking at his numbers and furthermore since he went to a more concentrated portfolio in 2012, hes slightly underperformed with fees so hes making a lot of money for himself and the investors are making what the s ps make. They are giving up liquidity and youre supposed to give a premium for giving up liquidity and its a concentrated portfolios his numbers are his numbers. Ive got his presentation. More on this topic before this show is over. Im just going to leave it there for now. Leave it there. Ive got a document. He did show the document to me, i saw it. I dont know what youre citing specifically, whatever. Im citing his presentation from his hedge fund, from his marking people. Im not being critical of steve. Again, Procter Gambles trading 95. Its a good thing if nelson peltz is advocating to engage in a conversation how to better the business in this stock i dont understand why were talking about the mans track record what does it have to do . P g is bringing up the track record. Stock is trading great. Do you think the conversation that nelson peltz wants to engage in is a poor one . Is anybody doubting his track record im certainly not. The no. I started it all by saying hes a great investor however, hes a professional Hedge Fund Investor. Im not investing in his fund, giving up liquidity. Its a five to eightyear lock if i lock up money five to eight years i expect more than what the market gave me. Here are the numbers. You can go through the numbers. You can put the screen down as i said, this conversation is not finished, but i want to bring in our senior economics report Steve Liesman who is releasing a new cnbc fed survey on the eve of tomorrows fed decision, maybe giving us more insight on how people are thinking about janet yellen and her future she, of course, the chair. A real big change, scott, from our july survey to today and you know things happened in between. Well get to that in a second and i want to show you the change real fast back in july, it was thought President Trump would reappoint fed chair yellen and now thats 38 and we also asked should the president reappoint the fed chair and 59 of our 42 respondents, half economist, others strategists and other analyst, 59 said yes, donald trump should reappoint fed chair janet yellen look at whats happened to the fortunes of others nec director gary cohn making disparmging response abo d disparaging remarks after the president s response to charlottesville and kevin warsh, the former fed governor has gone from 24 to being the leader at 34 and jontay lore doubling his chances so all of this is a moving target. I dont know how your group of esteemed traders forget the specific names. Why are you laughing . I meant esteemed. How much of is an issue for the market if its anybody other than yellen . I dont want to say if its wa rah sh its this, if its cohn is this. If janet yellen is not appointed, does the market care . I dont think so, scott. Thats what this conversation boils down to, and heres why. In the last ten years, or since ben bernanke has come on board, the committee has moved towards more consensus opinions. Theres differing opinions on any decision not like the volcker or greenspan years where it was a heavyhanded chairman and i dont think that genie goes back in the bottle you dont think the known versus the unknown. I dont think it matters that much. In terms of how easy policy has been. I think its a Committee Decision more now than ever. Hold on. Go ahead. You want to react to that comment . I think theres two competing ideas for the president. One is that hes a guy who wants to put his stamp on it and saying im going with janet yellen is that right what he said, its more of a consensus thats the way the fed has operated it was sort of determined that the way that Alan Greenspan ran the fed was not the optimal way to do Monetary Policy and this sort of much more cacophonous way where youve got to listen to all 17 members of the fomc has seep as increasing better results. I think the president wants to put his own stamp on it and a president who get up in front. United nations and the first words out of his mouth is how great the u. S. Stock market is doing, i think he wants to not mess with that particular boat. All right steve, thanks. Thanks. A little busy, sorry. All right, go. Under armour down more than 40 and wells fargo thinks the pain continues they are downgraded the stock at underperform its our call of the day it. Ill read from the note. The Athletic Apparel footwear space was one of the strongest subsectors in the group and after an impressive multiyear growth cycle we see several areas for concern and the potential to accelerate those concerns, and under armour is at the top of their list. Ive not been a fan of the stock for a long time, and the reason is that, first of all, never deserved the multiple. Like chipotle. Like a [ iam growth stock and they had growth for a while once the lowhanging fruit was picked then you have a company thats continually disappointed, so now thats another commodity athleticwear company and its not worth the multiple that it has. He has a 13 price target and i could argument it should go lower to be an equivalence watch nike is to be a reliable performer. Im not a buyer of the stock they say that there is less than deal sentiment towards the footwear offerings of under armour, more customer attrition than any other sneaker brand and lower the price target to 13 from 17. You walk into a store and you still dont see them occupying space on the wall there. The biggest mistake kevin plank made was trying to aggressively go after nike and footwear and a long time we talked would he be able to accomplish that, and hes not been able to accomplish it just yet . Was that the biggest thing . He wanted to expand themselves and went right after nike and the shoes nike and add das own the space and underarmor, unfortunately, is the lager, and they are so north american centric that they point that out as well. Is the bigger story that went they went over the top on the lifestyle they missed the lifestyle because they focused on performance thats part of the knock is they got offsides. Im not sure im not they got offstride by focusing on an industry when the industry was moving more towards lifestyle and fashion. Its fair to say that. Thats what this analyst brings up. Normally, a lot of times we criticize analysts on this show and do the opposite of the stock. Im not saying buy the stock here at 17, but keep in mind this analyst just nine months ago had an outperform and a 31 price target on the stock. Lets not make it about the analysts and under armour. Its not about the analysts at all. They clearly are right now. They clearly are being punished in evaluation basis. Being punished rightfully so because the growth is falling back into line and downgraded. Thats where valuation is i dont think is this space in trouble . Of course its in trouble we know its in trouble. I dont mean to come right at you. Ill come to adidas in a second nike has been in trouble for a year and a half. Thats a good buy now. Remember, it was up at about 66 and now its 53 and change it dont really want to lambaste plank or under armour for the fact that the stock market got carried away, but i do think the under armour story with the stock, and, pete, i know youre going to go bananas. We live on the air its a cautionary tale for adidas and well talk about valuation. Different Companies Give me one second to finish i know adidas has knocked the cover off the ball, i get it. Yes. But now to valuation in the 40s, thats where under armour was, and i youre in a sector at das has growth, and this is my argument for lulu as well. Lulu has gone towards men, right. Thats the aggressive pivot that they have made and thats why they are still strong and if you look at adidas, they didnt have the kind of positioning in north america the way nike has had, and the problem with under armour is if you listen to this analyst today, 80 to 85 of the revenue is coming from north america for under armour and if they are not executing properly on the shoes and they are not and alt leisure and athleisure is starting to move away. I think theres room for growth. Nike gets downgraded a couple of times, finish line gets downgraded and under armour gets downgraded again, and as you guys were just talking about, adidas overtaking the jordan brand as number two sneaker folks out there which is significant in its own right. Yeah. At das if youre adidas and your Growth Engine is hey, our growth is north america. Holy smokes, dont i love that. And they are gaining tracks in market share hand they have been doing it for a while now in a geographic region that she needed to actually gain market share and doing it at the expense of others. Finish line, i mean, finish line. All im going to point out. Last point. Its been in the stock for at least six months. Lets do our blitz now. Tesla initiated as underperform at jeffries you think this was a real renegetive note . A real el negative note and put the price target down there at 880 and it closed and everybody who wants to call this a car company, Software Company, elon musk called it a Software Company in 2016 and 50 of the employees are involved in Software Engineering at tesla. That says a lot. Im saying its more of software than automobile and this analyst sin correct i thought i made in a pretty clear, bro. Hanging out with josh brown. Michael kors is up today and oppenheimer upgraded the stock to outperform. They are trying to find a stock to recommend in their group. He says margins are near bottoming. Lets wait until they bottom because my sense is they havent bottomed and they are not in control of the markets. Will kohls will offer free amazon returns starting in october. Jim . If you cant beat them, join them this is a cheap stock thats partnered with a category killer i think kohls on a valuation and partnership is a buy right here this is a good deal. Best buy the worst performer in the s p. Its pulling back and its confusing based on what were seeing in terms of the longer term 2021 guidance, not enough visibility for the analyst community. This is a stock that was up at 63 back in august. And it has the significant amount ofvolatility. I like the stock, but have you to acknowledge the technicals. It has not been below the 200day moving average and at 18 months its approaching that. Its in a retail bellwether well do it next plus, analysts versus panelists. Were trading the chip stocks. Stacy rascon get in on that. Analysts versus panelists. Back after this. Not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Becareally want to be there, but you cant. At cognizant, were helping todays leading Media Companies create more immersive ways to experience entertainment with new Digital Systems and technologies. Get ready, because were helping leading companies see it and see it throughwith digital. Expestandard. E lexus rx with advance safety. Lease the 2017 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. All right. Welcome back Pete Najarian always on the hunt for signs of unusual activity. Hes found them today at the telestrator. What have you got, pete . Im looking at macys, not a huge fan of the retail space and talk about amazon all the time and how its crushing retail this is pretty interesting in that a lot of people are looking at macys in a lot of different ways obviously they like to put in what it looks like from a real estate play and all the rest of that what did we see today . Very, very shortterm buying they are buying september calls that actually expire friday. Very aggressively at the 22. 5 stripe its just below where the stock was when they started buying stocks dipped a little bit because they had some cuts on some of the hires going into the Holiday Season when i see 5,400 of these being bought pretty aggressively between 32 cents and 39 cents h. Makes me want to be in there. Im in there for a couple of days at most these expire on friday a bump over 22. 5, and these start to move to the upside. I think we got that in the cards. Jim you know, one thing to consider here, pete, im sure you have toys r us and the bankruptcy filing, thats not a direct competitor to macys, not by a long shot, but certainly is affecting the space and probably will for the next couple of days a direct competitor to jc penny. Really, really . Youre asking a question like that, has a negative connotation about macys when youre sitting there riding jc penney into the ground. Fridays expiring calls. Youre raising the issue. If you want to rates issue, then were going to go there. Lets go there, fine. Whats the difference between jc penney and macys are we going to argue or can i answer the question. The answer is this is part of the downsizing of the industry that has to happen and since you brought up jc penney, if you look at the bond prices, there is no way theres a bankruptcy risk in the bond prices, and this is the market that is supposed to get it right well before the equity holders, so im im taking that off the table. Pete, is there any usual activity with jcp . Weve got to go. Other than the stock price itself, no. Now to sue herera with the latest headlines. Thanks very much, guys. Heres whats happening at this hour Spanish Police arresting a 25yearold pakistani man accused of having connections with islamic militants he is suspected of being part of a group of three pakistani brothers arrested in june of 2016 that spread jihadist ideologies through social networks. Former fox news Host Bill Oreilly is characterizing his firing from fox news at Fox News Channel as a political hit job and said the network made a business decision to get him of him. In a today show interview, he says his conscience was clear on how he dealt with women. In 42 years, all right ive been in this bills ive worked for 12 companies not one time did i have any interaction with hr, any complaints filed against me. Donald trump jr. Has decided to give up his secret Service Protection the president s eldest son is said to be seeking more privacy. The agency stopped protecting him last week, but its not clear whether his wife and five children will still be protected. You are up to date with the news update. Brian sullivan is here with whats ahead on power lunch. Hi, bri. Thank you coming up on power lunch, the fallout from President Trumps speech at the United Nations plus, massachusetts filing the first lawsuit against equifax over the massive data breach the states attorney general will join us on what she wants exnational to pay. Millenials and money. A complicated relationship between the millenials and their cash and what they really think about the stock market well hit all that, but, first, more halftime right after this 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. Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Welcome back to the Halftime Report. Time to be analysts versus panelists. Joined by stacy rascon of bernstein. Good to have you here. Good to be here, thank you. What do you make of the run that we eve seen in theeps chip stocks lately . Is it sustainable . Thats a good question. I mean, weve been somewhat cautious for the last year and i suppose weve been wrong i guess you could have bought anything, saved intel or qualcomm and been just fine. We havent been advocating avoidance. Rackers weve been advocating taking a selective view. Looking for stocks that have some kind of a structural or secular or other kind of component to them that can work well in a period of rising demand and thats what weve been seeing, numbers can go up and have been offering structural support in case everything goes down maybe they go down less. I want to read you one of the questions. We billed this as analysts versus panelists lets get it on. One of our viewers has a question for you his name is fred he says what cat lifts, if any, are there for intel . Will the stock break 40 ever thats a great question obviously its been in a trading range for quite a bit of time. When we downgraded the stock a few month ago, we got pushback, but it was all tactical rather than structural. It was youre early. Numbers are safe they are going to get a server cycle in the back. I agree with all of it this is a structural call. I agree on being early and frankly its been working so maybe thats okay. I do think numbers are save though the drivers have been lower quality and beating on things like memory and pcs as well as nonoperating income, and i do think they are getting a Service Cycle in the second half, but i think they need up just to meet the guidance they have already set i dont think theres upside to those numbers. If you want to think about it like tactical or trading sort of cat lifts, but i think the structural case against them in, particular competitions, slowing growth and data Center Margins come down, i think its going to be a long time before we know whether or not those structural constraints will ease or not in the meantime, i think it will sit on the multiple. Guys, what do you think well, stacy, apple rolls out the new phones last week, and clearly sure. We spoke about it on air, it seems to be a Second Derivative trade and a lot of the chip names that are so integral in the production of these new apple phones are getting a large lift do you see the visibility looking forward that maybe this gives a lot of these chip names another extension and further appreciation higher based on the apple rollout . Its possible, and you have to remember that smartphones are actually quite weak in the first half of the we are we had a genuine inventory correction in china which, by the way, didnt do anything to the stocks thats the first time ive ever seen that happen people were looking through that to what they are hoping is a very large cycle for apple people have been tossing it around the term supercycle, so to the extent that apple can get the phones delivered on time in large volumes, they may be able to take things up and the other question is how sustainable is it people are suspecting that maybe because its taking apple longer to get some of the parts out, maybe that can hang around for longer and actually stretch out and well see what that looks like when we get into the first half of next year. Stacy, another viewer called in on the phone with a question about nxp. Lets listen caller hi, my name is mike from philadelphia. My question today is what is the fair value of nxpi semiconductor . Good question the stock was 82 the day the deal headquarter it was a decent premium at the time its not hard to argue that the fair value is at or above that deal price the stock since the deal leaked is up about 40 . That by itself would have been enough to eliminate the deal premium if you thought they would have performed in line with the stocks and put together pretty good earnings and closed the standard products divestiture to enable them to drive the Balance Sheet which drives expansion not hard to see a fair value for that stock at 110 or higher. One reason weve been preferring to play that deal through nxp rather than qualcomm. Go ahead. Stacy, heres a quick question for you of all the chips out there, and we see paper every single day across the board, the semis have been on fire in terms of options, people have been leveraging, an they have been right. Micron, some of the their various names, what do you think . Micron, if youre looking for a glean structural story thats it i view this as a use of Free Cash Flow story. When they bought classic broadcam it was a gamechanger in cash flow generation. Doing 8 billion plus in Free Cash Flow, five or ten times that they used to do which has to be deployed half to m a because numbers are too low because everything is modeling a single organic model and the other half to dividends. Double the dividend, paying 4. 08 a share and if you believe their targets, which i believe i do, it implies an 8 dividend by the end of next year, 15 months. Even with 15 months even at a 2 1 2 yield that would be really appreciate you doing this for us. Well talk to you again soon thank you stacy rascon doing analyst versus panelist. Ahead of the fed the bond pits next first heres what our partners at kensho are saying about the chips. The semiconductor etf smh is up 8 in a month after similar moves many names still showroom to move when bought after an 8 jump for the index nvidia, cirrus logic, cree and skyworks all up more than 3 on average two weeks later. For more go to cnbc. Com kensho being the incredibly busy man that i am, ive asked chase sapphire reserve cardmembers to scout the world to find my next vacation. Elton, what are you up to . Im having breakfast in uganda. Uganda be kidding me, elton its a. Its a joke. James, were going to look for gorillas hang on, what . Thats a real silverback gorilla. Look at it no, dont look at it. Shhhhh stay. Okay. Im freaking out sapphire reserve, from chase. Make more of whats yours. Has gotten to know our business so well that is feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my small business. A dell advisor can help you choose the right products with powerful intel® core™ processors. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Welcome back its Halftime Report im Jackie Deangelis we are watching treasury yields rise ahead of tomorrows fed decision the yields on the tenyear hitting its highest level in a month. Brian stetland, what do you make of this move in the tenyear today . Certainly the tenyear should have stayed below 220 and since it hasnt its ticked higher looks like it might be moving higher and the reason being i think the fed is going to need to make some move to stop the 2 trillion plus that theyve printed into the market since 2008 the reason be being look at the crb index, the commodity price index. Weve seen a real bottoming process there, a tick up in inflation coming from the commodities side we havent seen it in wage growth yet in the u. S. Worker but weve gotten it in the commodities space and i think for that reason the feds got to do something to sort of curtail that and now youre seeing the tenyear tick up a little bit higher i think we continue to move maybe to 2 1 2 on the tenyear. Jimmy, what levels are you watching ahead of the fomc announcement tomorrow . The trend for the year is still low wrer yields. I dont think thats over until it can settle above 2. 32 second when the cameras off brians going to have to explain to me what thin flation thing hes talking about it is i never heard of it. Im not believing in it yet. I think yields are still going lower unless it settlesa boff 2. 30 today on futures weve got magot mark fobber. Plus joe zidle hes going to give us his bond market playbook ahead of the fed. Halftime is back after this. 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 the Halftime Report is honoring americas veterans with a live show from aboard the historic uss intrepid. We want you to be a part of the experience join scott wapner and the halftime traders for live trades and market analysis. The Halftime Report on the intrepid, friday november 10th for free audience tickets email us at veterantickets cnbc. Com. All right. Cannot wait for that, right . On the intrepid. Good stuff that will be fun. Dont miss our exclusive interview by the way with pershing squares bill ackman tomorrow at noon eastern it will be the first time were going to hear from mr. Ackman on the record about whats happening at adp you want to comment on what you guys are expecting tomorrow . Im looking for bill to lay out the vision, how much he believes he can improve a company thats been doing quite well number two, why isnt he more all in in terms of owning the equity thats the big question versus not converting so he can vote more shares. All right markets close in about three hours. Lets do some final trades pete, why dont you start us off . Freeport mcmoran. Just continue to see paper every single day very similar to what weve been talking about the last couple weeks in the chips we had that run in the steels for a while. I tell you what, it seems to me like maybe were going to get back up over that 3 on copper. We start to run it all freepo freeports going to run with it. Micron. Apple phones need a lot more memory as does every technology. Want to clarify one thing with nelson peltz if i can. He unquestionably has added value to the companies hes gone offer. My point is only as a Hedge Fund Investor net of fees that value necessarily wouldnt inure to me brilliant businessman. Royal dutch shell a the dividend yield is 6. 5 but heres the thing, its been setting higher highs and higher lows and finally, youre seeing oil break out west texas intermediate above 50. This thing has a good up trend i think it continues very, very quietly microsoft, s. A. P. We talked about it yesterday i think i used the term which you didnt like, hiding out. Dont hide out. Dont lean in, sully. Youre good. Lets continueto focus on the profit that it is deliverings and it is i smooth ride, less volatility than a lot of the other fangtype tech names. Good stuff. Now Brian Sullivan and the rest of the folks for power lunch, which starts now thanks, scott heres whats on the menu. President trump not pulling any punches in his first ever speech before the u. N. General assembly the president making it very clear it is America First and that quote we will have no choice but to totally destroy north korea if it continues on a nuclear path. Hurricane maria slamming the eastern caribbean. Now the category 5 storm is taking aim at puerto rico. It may be the biggest storm ever to hit puerto rico in nearly 100 years. And millennials and their money. The shocking percentage who say theyll never be comfortable investing in the stock market. We have that as well im Brian Sullivan, and power lunch begins right now