Split. Well tell you why invesetors ae piling in today. Energy companies have shut in production we have the latest on the impact of tropical storms marco and laura. Power lunch starts right now thank you, tyler as you mentioned its shaping up to be another record breaking week on wall street. That means even more evidence mounting that stocks are getting pretty expensive bob is following the markets for us bob. Yes it is. Right now we have very light summer volume. We have fairly narrow trading range today. I like what i see and i like what i see for one particular reason for once its not all about Technology Stock it started out that way at the open but it quickly changed and investers decided maybe the tech stocks are too pricey afterall today were seeing Energy Stocks bank stocks out performing, even industrials out performing the Technology Sec tore. Thats a big change of pace for the last couple of weeks i want to show you something to give you an example of how it changed. Apple started out at a new high but within a half an hour they starred off selling apple and the big megacap names and buying bank stocks. The bank etf started moving up at the same time theres a good example sell the stuff thats high price. Its valuation play. It makes perfect sense we have new highs but its still only 6 or 7 of the s p at new 52week highs. Thats kind of disappointing we have to broaden that out. We have apple, fedex and some of the builders like pulte. Lowes has been there for a while. Are we too high priced theres some indication. If you look at the forward 12month estimate for the s p 500 on earnings, this is the Second Quarter of 2020 the Second Quarter of 2021 right now were trading at 23. 4 times forward earnings is that a little, thats a lot you can get an idea the market is pretty pricey right now and most of that overprice is in the Technology Group back to you. All right thank you very much. With stocks at all time highs by many measures, can the rally continue from here and what can you still safely buy lets bring in liz young director of market strategy. Welcome to both of you liz, you say, as far as worrying about the disconnect seemingly between the economy and the market, get over it, folks its just going to be that way why to you say that . I say that because they are driven by Different Things we have to really keep that in mind i think this so called disconnect will continue for that reason. When you look at what drivers the market, first of all when we talk about the market, were talking about the s p 500. The three biggest sectors are technolo technology, communications and health care. Together they make up more than half of the index. When we look at the economy, we talk about growth, the labor market, the manufacturing side of the economy its driven by Different Things. A lot of those Small Businesses suffering are not represented by the stock market they dont have the same flexibility and the same diversified revenue streams. Theyre going to behave different in a recession and coming out of a recession. Alally, how do i protect whai have earned or earned back over the past five months and yet still leave room for more potential gains for the rest of this year . Thats the big question we were talking about the distinct realities that youre seeing one is you see people out of work you see airplanes, parked on runways. You see restaurants shutdown the see the market hitting new highs and doing that week after week. We have to get comfortable being uncomfortable. Are very low uneconomic buyer, which is the fed that is making the risk premium between equities and bonds grow. Its also continuing to make fixed income look much less interesting rel tiative to stoc. You have to stay there you have to ride the laggards. We have talked about new highs over and over. We have to wait and hope for breadth which were starting to see. You believe that europe and asia may bounce back quicker than the United States and you say make sure you not cutting out of those areas i think for the last three to five years, a lot of investors have been underweight. They have been disappointing as we move through this recovery if we believe its a global recovery, which we do. We see asia coming out of that fastest and we see europe not trailing far behind. You want to make sure you have exposure to that you want to make sure as an investor that if you had a strategic underweight, maybe reevaluate that. I think this is an okay time to take some gains in technology. I wouldnt rotate out of technology i think its a great long term play its okay to take some gains in tech and redeploy it into some of those areas youve been underweight or if you have cash on the sidelines, theres going to be probably a flood into some of the things that from a valuation perspective look more attractive than large cap u. S. Stocks you have a much more nuanced and studied thought on that. If a vaccine is only 50 or 55 percent effective and gets approval because thats the benchmark for effectiveness and its safe but only 50 of people decide they will take the vaccine, then that doesnt get you to the kind of immunity you need to have a fully functioning economy, does it no. The vaccine is not the panacea to this pandemic it could unleash another leg of the upside lets talk about those numbers a vaccine is effective were having this sort of debate daily when its somewhere between 50 and 70 effective in the population of preventing now we have the numbers of people who say they will take vaccines in this country is steadily coming down you have a 25 effective rate. That does not equal herd immunity i think while theres excitement and there should be in therapeutics and the vaccine, speed of that vaccine bolstering the economy, i think to hold on and say thats going to unleash this amazing amount of upside and once we can start to mass produce that were okay is a little myopicmyopic. Thanks very much. Stocks keep rocking. Concerns about the economy is growing. Debates for full recovery keeps getting pushed back. Steve has the details. They see the current recession ending in the second half of this year in the third or fourth quarter. 15 see a 10 chance or less of a double dip recession 48 see a 25 to 33 chance and 32 see a 50 chance or more looking at what they are looking at elsewhere in the outlook. They see fiscal policy they would like to be 1. 5 trillion they do see a fiscal package coming but like it to be 1. 5 trillion or higher 40 of business close e youurese permanent. Our rapid update looks at the incoming data for the third quarter. It ticked up by five points. We started the quarter at a 20 . The ytd thereidea theres a lot scarring going on in the economy. Go head, kel. As i look at those two final numbers there, it was a large p plurality said 25 to 30 double dip. A smaller number said 50 of a double did put those two together you have more than 80 . Its a big number concerned about there being a second go around here. Thanks very much. Kelly, sorry i stepped on you. That was my question. The answer wont be worth anything, but ill answer it thanks a lot coming up, energy, financials and materials leading the market higher. Well have the latest on what two potential hurricanes and the election could mean for the energy sector. The race for vaccine is on with reports that President Trump could fast track one ahead of the election. A top bio tech analyst will be along to separate fact from fiction. Thats always helpful. Simon pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. People who have recovered from covid19 to be used as a treatment in those who are still fighting it. At the same time the white house is considering fast tracking a vaccine from astrazeneca here is kayla. Reporter President Trump is aiming to kick off the week of the Republican National convention with positive news on treating covid which continues to claim 40 lives an hour here in the United States on sunday the food and Drug Administration and department of health and Human Services issuing an emergency use authorization for convalesce plasma to be used for more hospitalized patients fp move came after Senior Health officials including dr. Anthony fauci raised objectives because they thought the data was too weak to be conclusive. The president accused the deep state at the fda for making it very difficult for Drug Companies to test vaccines and suggesting those people want to delay until after the election that appears to be President Trumps new deadline for the operation warp speed the ft in the New York Times report that astrazeneca vaccine for covid that is in trial could be fast tracked before november 3rd according to their sources it has not discussed this emergency authorization with the government and it wont have trial results until later this year if fda on guideline say a vaccine would have to have 50 effectiveness to get approved and if vaccine were approved that were unsafe or untested, he would resign tyler and kelly. The mixture of science and politics would be concerning to a lot of people in the medical community. The idea theres an electoral time line on some of these studies that are going on. Reporter i think there is an important thread to look at here and that is what type of approval would be granted. Whether it would be a temporary or emergency approval that would be granted for only the sickest patients versus a broad approval for the general population thats not expected to happen this year because of the availability of data and the availability of the vaccine itself there was some reporting that the treasury secretary and the white house chief of staff raised the possibility of this fast track in a meeting with democrats in late july as part of their coronavirus aid negotiations im told that did not happen and are kiezi iaccusing democrats o mischaracterizing those conversations. A few officials at the fda said that acknowledged there was some hand wringing going on but said if they had covid19 they would want the plasma because its viewed as more effective than not taking it. Which bio tech name should investors now bet on michael, are there any names that you think are undervalued for their potential here well go back the michael in just a second. Tyler, back to you all right. Still ahead, the vaccine hopes are helping to give bid to the airlines as yesterday was the second busiest day for air travel since the pandemic began. Well talk about that plus Energy Leading the market. Energy as oil and Gas Production comes to stand still in parts of gulf of mexico as storms barrel down we have the latest details on ase storms brewing off the more power lunch right after this wow. Jim could you pop the hood for us . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. Can you change the color inside the car . Oh sure. How about blue . Thats more cyan but. Jump in the back seat, jim. Act like my kids. How much longer . Exactly how they sound. Its got massaging seats too, right . Oh yeahhhhh. Oh yeahhhhh. Visit the mercedesbenz summer event or shop online at participating dealers. Get 0 apr financing up to 36 months on select new and certified preowned models. So youre a small bor a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Welcome back with the government throwing its support behind more treatment and vaccines for more on the race for the cure, lets bring in michael are there any names that you think are undervalued relative to their potential here . Thanks for having me on its a huge pull back. We will reiterate, i think the data sets coming up will be positive i think the stocks will move up on that. How long the stocks will stay up and whether people flock to other sector s a bigger question that were now having on some of trading of these stocks. Interesting youre telling me that you look at some of those names that others would say are more speculative plays. Moderna never developed Something Like this. You think these pull backs are a good buying opportunity . I think that theyve had a 20, 25 pull back. I think theres still some uncertainty as to whether the a data sets will be positive i think the stocks will move back up on that. I think the bigger question on a two, three, four month time horizon is how sustainable those moves are. I think a lot of people are starting to believe they will be positive and other sectors within biotech are the market. Its almost like you would want to buy them in anticipation of them being effective. What about one of the kind of differences of opinion is whether investors should focus on these particular names like the modernas of the world. The vaccine candidates or focus on the bigger names like pfizer that have other levers to pull if the technology doesnt pan out for if it does, they are less vulnerable to buy the rumor, sell the fact what would you say about the big cap pharma names we believe in the vaccines are positive and we are going into 2021 in a better situation within health care that theres probably going to be a reversion back to focusing on fundamentals i think people will start to move away from the covid volatility in buying this on the hopes of how much sales are and become more of a focus on the fundamental stuff because not just within biotech but the Broader Market as well can i ask what you make of these vaccines coming from china and russia in insight of the development of them rather than the process were pursuing here . I think this is really important. You look at some of the data thats come out of china and i think theres a difference between these countries saying that they have some sort of accelerated approval in china giving it to the army and the defense and russia a bit of the same were giving our vaccines to 15, 20, 30,000 people in a clinical trial. They are getting it. I think theres probably a different standard for what people are willing to accept as emergency authorization and safe enough to deploy to different pop y enough to deploy to different pop ylation populations. Do you think the vaccine we come up with will be the global standard i do believe the technology out of moderna and j and j and merck, i feel very confident one quick question. Plenty of people have pointed out maybe with the exception of moderna, theyre noot necessarily going to make a lot of money off this vaccine. Even fp they work, do investors want exposure . I think there will be profits made moderna has a term there are profits. If youre going to do two or three billion dollars a year, is that worth the 15 or 20 billion dollar valuation or do you need other pipeline drugs to come there . It will be profits how you value that is a totally different question people had very High Expectations those come back down a little bit. Thank you. Very much appreciate it. Thank you Airline Stocks climbing higher this day. Phil joining us now with the details. A nice move higher for the Airline Stocks today as you take a look at the major carriers up anywhere between 5 an 9 american being the stock thats moving the highest today the reason were looking at american is because the Company Announcing it will be using surface wise two which is coding that will be sprayed on the interior of its plains over the next few weeks or a couple of months they will have this coating to be applied on the surfaces why is this important . The epa has approved the application of surface wise. Its a virus killing coating this is part of the airlines continuing to say were making it as safe as possible for you to fly how many people are flying right now . Well, on sunday, it was up to 841,000 people thats the second most we have seen since march still down 66 compared to the same time last year. In terms of the Airline Stocks and what they have done, its a lot like this chart. Its a bit of a pop when people thaw things were going to get better in may and june since then, its pretty much been trending sideways as we continue to wait for when we will see the real take off in Airline Traffic and nobody will predict that right now does it come in six months, a year, two years . Nobody is quite sure thank you very much the airlines etf Ticker Symbol jets is now up 55 from the march lows as those stocks do continue to bounce back for now. Lets bring in your trading nation team. You see the more positive but its qualified and a narrow kind of thread the needle trade on southwest. Explain. I guess were neutral here. Airlines review broadly, its a beta trade tied to the reopening of the global economy. They can move a lot in a short amount of time were kind of stuck in this middle where its too late to bet against them i think difficult to bet against them given how they move they still dont they havent developed enough to rate well. Ticker luv, it has stabilized. I see counter trend strength into 42 which is resistance at its 200day average. As long as support at its 50 day is up. Thats at 33 thats your stock level. 33 is the stop level. Not a lot of money to be made. Youre not saying you endorse buying southwest at these levels mark, youre down on the whole group. I dont own any Airline Stocks i just dont have the stomach to trade those day in and day out were still down like 65 to 70 from a year ago. Until that normalizes and when i say normalize, i mean down 25 year over year it will be per