and now, with the production schedule, ceo elon musk is responding to the nay-sayers and saying on the conference call, what i find ironic for the nay-sayers they transition from saying it is impossible to saying it is obvious. i say, wait a second is it obvious or impossible, because it can't be both. who is right, chanos or musk, pete? >> well, in the short term or the longer teerm term, it is chanos, and the reason i is a they is because they have had nothing but production issues for quite some time now, and the delays and the issues and now talking about ramping up, and going from 50,000 to 90,000, and supposedly getting 80,000 to 90,000 this year, and if they can get that number, it is impressi impressive. phil lebeau has been talking about i, and it is ing a graggro get to that level, and the 500,000 level in two years from now, and it is amazing, scott. we know great drives, and people are going after the model 3, and everybody put the $1,000 down, and maybe over $400,000 now, but they have to execute on the manufacturing, and so far, that is something that is definitely the laggard for tesla. >> and joe, they had a production dead deadline of july 1st of 2017 for the model 3 and they won't be able to meet, that and they are admitting that at this point, and what is the deal here, and who is going to be right in the end, and is there a credibility issue with mr. musk? >>le with n determi-- well, in determining who is going to be right, you have to look at the stock, and technically, it is so highly volatile, and josh brown talked about the possibility of there being a double top, and 282 top last july, and april goes up to 262 and fails and the fundamentals and credibility issue, i am not shure. and jeffrey gunlock did a fe nam nol job to identify, they made batteries, they would be okay, but it is batteries going into the cars, and accelerating the production, and are there is the free cash flow, because it is going to be burning like crazy, and now reintroducing the question that you asked us of aus month ago, do they need to do a caple tall raise and the answer to that is probably yes. >> and jim cramer had this to say about tesla, and elon musk this morning. >> he is getting a wway with th financial murder. okay. i have to tell you that she is boast ing fing for the seemingl impossible. >> all right. our own phil lebeau on the tesla story are, and phil, earnings, and executive departures, and you have heard what chanos had to say to us yesterday at the sohn conference, and what are you making of it? does musk have a cred problem? cramer say hs he is a financial and he is getting away with financial murder, and throwing whatever he wants out, and hoping that the street believes it. >> and the interesting part is that the street does not buy this 500,000 target. and i have looked at the analysts of the '06 or '07 of them them, and the estimate for 2018 sales, and it ranges from 129,000 on the low end to the most aggressive being 355,000, and nobody even think theys -- who even thinks they are going to bic 400,000 let alone 500,000. >> why does he say it? it is something that he has to say it to grease the tracks for the capital raise. and he talked and it on the conference call, a debt, equity or some combination, the but they need the capital raise at some point to, pand the production and not only in freemont, but po ten sally another additional plant in freemont or china or europe, and they are not getting into the specifics at this point, but they need to grease the tracks, and what is interesting is that when you talk to the analysts or looking at the research notes, almost all of them say the same thi thing. that is that nobody thinks they will get to the 500,000, but everybody knows they need a capital raise, and this is setting the stage to ask for it. >> and forbes out with a column there today, and the gentleman said that tesla's elon musk is ignorant of the basic facts of car production. >>. [ laughter ] oh, well, i don't believe he is ig nornt, but they are too aggressive on the volume. everybody agrees with that, and you can't get to the levels they are talk about, but however, when you talk to the people who have driven the model s or x, and yes, the x had production problems as they were developing it, but if you talk to the people who have driven the vehicles, and the folks at "consumer reports" and everybody in the auto industry, they say the same thing, it is a pretty darn good car or pretty darn good suv in the case of the model x. so once they build it, they are finding that the market is will there, and the question is can they build them as quickly as they had set out to do. >> and doc, people are not buying the stock because of the great consumer experience, but they are doing it to fill the consumer needs of make ing the car. everybody likes to ride in the car. >> and everybody likes to ride in it, and likes to drive it, own, it, sense of pride to participate in the new wave. but judge, you are exactly right, there is no belief that musk can make it happen. the giga factory, plural, that you will have to put up to manufacturer that many cars is going to be an act of desperation when he said by 2018, and moving up the target by two years and i said, that he has pushed himself all of the way out to the edge of the cliff with that one, because as phil said, the highest estimate is 325,000 and not even 400,000, u but he is saying that 500,000 is a possibility, but it is not. and i was talking to john thompson at villas factory. and he said they stole a factory that toyota left for dead, and the next factory is going to be in the billions, and this is true. he has to spend like crazy, and raise cash, and that means giga factories all over the country, and that is quite costly, and dlutive -- delutetive. >> yes, they got freemont for a song. they were notch ngnat to get it because they came in right after the collapse of the auto industry, and gm and toyota were unloading it. it is a huge advantage for them, a and they won't have the advantage coming around on the next plant or the expansion of freemont if that is where they go. >> jim? >> well, one is the operational execution of getting 500,000, and whether or not he gets there, and frankly on that one, i would bet with elon musk on thx because this, because if you are looking at spacex, he has done it to launch a rocket out of nowhere, and so he can do this, but the fact is with chanos, it is the valuation of the stock. and elon musk has to be looking at the stock and saying, if i want to raise capital, the best place is to water down the stock, and this is why i am with chanos. >> what does it say about tesla wen you have a stock in need of capital and general motors and ford stuck in neutral launching into the business, and why are they not dialing up tesla. >> why are gm and ford not dialing in tesla? >> yes, to solidify the entry into the business and the capacity problems and you want to grow the production of the cars, and with tesla, and do a partnership with gm and ford? >> no, that ist not in the dna of gm and ford, and they do the technology and the expansion internally. and look at how both of them were resistant to google in forms of, in terms of the simple collaboration on the test vehicle, and that is test vehicles and let alone collaborating on the broader scale. they won't do it. i would be stunned if you ever see an established auto maker reaching out to elon musk saying we have capacity, and come over to us. i would be stunned if that happened. >> phil lebeau, coming over from chicago, and you will be scrutinizing those production targets, and now, scrutinizing the targets, david einhorn making the case saying that the financial financials are healthy and thriving and do our experts agree? we have talked many times about the look at peak auto and whether or not it is here or not, and why in a strong auto market gm and ford can't get out of their own way? >> well, peak auto is not what is experiencing here, and pent up demand, and the average age is high, and you should not be at peak auto here in the u.s., but the other thing to pay attention to is that gm is a global company, and so if you are looking at europe, they turned around the opal division, and that is on the way to being profitable, and they are on of the car manufacturers winning in china. so a lot more than the u.s. auto sales that are to look over. >> and one of the core parts of the thesis when einhorn was on the phone call, high margins. >> yes sh, the margins are pick up in china, and the buick name plate is doing well in china, and also, a stock that trades six times the earnings with a 5% dividend deal, and a lot of downside protection, but the only thing that i don't like about the stock in the short term is the sentiment is overwhelmingly negative. we have been talking about gm for months, but it is stuck right here at this level. >> and why is the stock so n negative? >> well, it is not going in iwhere, and you are not seeing it grow with the terms of the stock sale, and the opportunities for growth, and the lone opportunity looking forward is the emerging markets, and the emerging markets with a difficult time over the last 6 to 12 months, and going back to the question that i asked phil about tesla, why wouldn't gm and ford pick up the phone, because the reality is that they don't believe in the future being selling the electric. >> well, i think that if anybody did a partnership with them at all, but i understand that they won't do it, and the only ones who would do it is a bmw or the mercedes might entertain the idea of a tesla in some sort of partnership in that regard, but back to gm for a second, because the fact that the emerging markets and everybody is so negative that is why you can be positive on gm. remember, gm had every hedge fund on the planet piling in at $36 and expecting it to fly high ir and not happening, and now $ $30. so there is, jim i many, to your point, a put is in place, and a multiple, and 5% dividend yield, and the fact that you have emerging markets right there, and china could be something, and suvs, they have got them. pickup trucks, they have got them, and gm is in a great spot. >> and i will disagree on one thing. >> well, you can disagree on more. >> well, no, the opportunity play, because the sales in the u.s. are beginning to decline. >> no, they are not, and february and march were not good, but april above the $17 million, and so march and f february are much more like the blip, and you have several months of the 7 million times sar and that is a great number. >> it is about the sentiment. and everybody loved it at $36 or $37, but now at $38, nobody loves it. so i call it the upside. >> and now, here is what else you are going to love on the "halftime report" coming up. thousands are evacuating as a wiltd fire is raging in oil canadian country. we will have the latest from alberta. >> and now, find out if anybody is buying the dip in the runway. >> and why is our panel picking with sarepta? it is all coming up on the halftime report. those who have served our nation. have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. man 1:man 2: i am. woman: ex-military? man 2: four tours. woman: you worked with computers? man 2: that's classified, ma'am. man 1: but you're job was network security? man 2: that's classified, sir. woman: let's cut to the chase, here... man 1: what's you're assessment of our security? man 2: [ gasps ] porous. woman: porous? man 2: the old solutions aren't working. man 2: the world has changed. man 1: meaning? man 2: it's not just security. it's defense. it's not just security. it's defense. bae systems. back on the "halftime report report" and the oil is on the move as a wildfire rages through north eastern alberta in the heart of the canada oil sand. deidre is on the phone with the latest there on the wildfires. deidre? >> yes, and put another way, up in north dakota of canada, and all roads in are shutdown, and 8le 0,000 people have been evacuated and 80,000, and the latest development is that a state of emergency has been declared and prime minister justin trudeau says they will match donations to the american red cross similar pledge from the alberta government yesterday. and for the oil sand operations, they are not directly affected, but the shutting off operations altogether affecting the operations. a and the market is estimating over 800,000 barrels are offline and you are seeing that reflected in crude today. we know you will continue to monitor it. >> yes, and thank you, joe. incredible pictures here. >> yes, is it is a serious situation, and it does not change in terms of the market consequence, because the price of oil is up today, and the right thing the do, and energy is a great trade for the last three months burkt is time to pear ba pare back expectations, and go to the consumer discretionary allocations. >> and joe said the other day that the commodity run and the oil trade is over? >> well, i am not sure it is over, but -- >> not the suggest that it is not a day here or there, but he is saying that it is ending. >> i am not sure that it is ended or not, but it has made the trade difficult, and i have taken off the positions, and the only thing that i have on is conoco philip s wis with the ex schoos sure and a cup cole of names with the pipeline. and that is why it is difficult to be short, because these type of events, and you see what it is going to do to oil, and the xle is way off, and well above the $200 average. >> and without the wile fire impa impact, you wonder where it is trading for oil? >> and i am not timing the right time to get in or out, but i am saying that the risk to reward right now in staling in a lot of the high beta names that kevin ta talked about with us last week that have been rallying in the energy space, i don't want to make that trade. i oknow that the technology has gotten slammed and names out there like a microsoft, like ackimide. >> and weatherford fell off of a cliff today. the cap x is going to be cut massive isly, and the number of momentum is immense and that one of them in my opinion rolled up into somebody else. we have talked about with baker hughes and halliburton pulling apart and not doing that dial, so we will see the oil field service names getting together, and this going to be bought, and i don't think that the stock is going to be higher however, because they have the debt, and the problem wills, and that stock despite that, you look at the srp which is the price index for spdr which is up on the plc. >> and you have a trade? >> well, i'm with joe. oil is way ahead of itself, and part of the reason it is up today, is because of the libya fighting there is curtailing the supply, and iran is ramping up rap rapidly, and frankly, the situation with the isis is much more favorable for the west, and that means the iraqi oil production which is already high is picking up. >> and now, from bit bit to dick's sporting goods, we have the trade. the athletic socks are selling off. >> and legendary invester will b be join voing us from the sohn conference. this clean was like, pow! it added this other level of clean to it. it just kinda like wiped everything clean. my teeth are glowing. they are so white. i actually really like the two steps. everytime i use this together it felt like leaving the dentist's office. crest hd, 6x cleaning, 6x whitening. i would switch to crest hd over what i was using before. [ that's a good thing, eligible for medicare? but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they could save you in out-of-pocket medical costs. call today to request a free decision guide. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks, and virtually no referrals needed. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. but are you gonna bring fiup that stock again? well you need to think about selling some of it. my dad gave me those shares, you know. he ran that company. i get it. but you know i think you own too much. gotta manage your risk. and you've gotta switch to decaf. an honest opinion, even if you disagree. with 13,000 financial advisors, it's how edward jones makes sense of investing. . time for trader blitz on the "halftime report." four stocks making news, l brand s? >> well, it is weak, and only up plus 11%, and the expectation was plus 5. that is perhaps having the effect of the easter week. so up plus 1%. and this is a stock that i would look at buying, and we are often critical of the analysts, but be complimentary of a nice buy there with that one with fit bit. >> well, it did not meet my expectation, so i dropped out and now i am back in. >> and now, beating stocks up 8%, qorvo. >> is that a supplier? >> yes, and it is not going to break down how much goes to any one supplier such as apple, and they have a high presence in samsung and some of the chinese manufactu manufacturers, as well. one, the two take aways, the business is in china is doing well sh, and maybe some thought that the iphone se is getting a pickup. >> and what about this one dick's? >> well, it is a downgrade, because looking at morgan stanley, what they have isolated on and this is a 1 to 3-year call, and the square footage continues to the rise, and yet as they continue to expand, and yet looking at the store sales, flat or negative, and point out a couple of names, walmart, bed, bath & beyond, and dick's is on that list, and they are take out the online brand, and just as brick and mortar not so great, and that is why there is a 39 target on it. >> we will talk to to a manager on a wild ride with the health care stock. find out why he is keeping is a republican ta as a top fund, and the best per for ermer in 2012 as well. you don't want to forget that. i know breaking the neighborhood speed record looks easy... but i wouldn't be able to burn rubber without optum. see i have diabetes... which can make it a little harder to become a racing legend. thankfully, though, i have an optum nurse and in-home biometric monitoring that really work with my doctor's plan. which means diabetes doesn't get in my way... unlike the neighbor's front yard. this is healthier, powered by optum. from health plans to providers to employers. we connect all parts of health care. healthier is here. i am a first responder tor and i'emergencies 24 hours a day, everyday of the year. my children and my family are on my mind when i'm working all the time. my neighbors are here, my friends and family live here, so it's important for me to respond as quickly as possible and get the power back on. it's an amazing feeling turning those lights back on. be informed about outages in your area. sign up for outage alerts at pge.com/outagealerts. together, we're building a better california. >> all right. welcome back to the "halftime report." there is the market picture. oil is leading the way with energy with a bump perhaps due to the wildfire in canada, but the s&p 500 is up 3.5 points. welcome back to "halftime report." we go to sue herera with the latest headlines. >> than you, scott. this is the news update. the turkish prime minister is announcing the res ug nation to paf the way for the country's president to pursue a tighter fwrip grip on fire. and evacuations under way in four neighborhoods and elementary school in houston as multiple explosions are seen coming from the blaze. >> and a judge is order former quarterback johnny manziel to have no contact with his ex-girlfriend who he is accused of abusing. he was in court for less than 15 minutes when the judge set rele release for $1,500 bond, and his attorney says he is going to plea not guilty. and lorenzo is hailing thes presentation of a new alpha row mare owe, and four models parked right in the yard of the headquarters, and rinzi is expecting a beautiful new model. >> i can see you with that, with the hair in the wind. >> yeah. >> going down the italian coast. >> sure. i can see myself on the coast, but i am not sure about in the car. you can dream. thank you, sue. >> sure. >> and now, over to the flash desk fork the buyers. >> yes, look at merck which is off by more than 1.5%, and the revenues was small, and merck saw negative impact from the currency and other stock drop off because of a drug slash in medicaid. and also, amerisourcebergen is down overall due to drug introductions, and becton dick inson is beating stocks today up 3.33. back to you, scott. >> our next guest is the fifth largest holder of sarepta, and one of the top shareholders with his fund up more than 50% in 2015, and joe edelman is here on set with us, and our own meg terrell as well. and melg, so good to have you here, and kick us off. >> well, joe, you have to start out with the sarepta, and the up and down road in what was thought to be a negative are revow to the panel advisers and after the panel concluded with the vote negative against the approval, and what is the way you stand on it? is this drug going to be approved? >> i think it is extremely likely. and first, you have to see what they are talking about accelerated approval which is designed in the cases of the deadly disease duschenne muscular dystrophy. can it be approved in essence reasonably likely to work? if so, we give it a commercial approval, and make the company confirm that it works in what is called a confirmatory trial. the two essential things is that this is a disease caused by a lack of the protein dystrophin, and it is going to be a case where it makes dystrophin and can debate of how much, and the debate is does the presence of dystrophin have a clinical benefit, and in the case of the 12 boys tested, they were still walking after four years while only 9% were walking after four years in the historical control. so when you take it together, it is very compelling, and meets the standard of the accelerated approval, so the way i sum it up is that i would say it is not certain that the drug works, but it is certain that it is reasonably likely that it is working. >> thor ba case here, and the one that seems to be espoused by most analysts is that there were only 12 patients in the trial, and just not enough data to prove if the drug work, anden some coming out with a note saying that the fda does not believe that it has any real efficacy, and how do you respond when there is so much negativity coming that way? >> well, the complications within the fda and the reviewers clearly took a negative stance, and maybe we can talk about why that might be. the people above the reviewers have the ability to approve the drug over to the heads of the reviewers and the ability to overrule the reviewers. and in fact, you had the very unusual situation where the head of the second in charge of the fda was at the meeting basically saying i support the drug. she was saying that, janet woodcock, don't be afraid to approve a drug that is later found to be ineffective, and she said, there is no known level of dystrophin that is known to confer clinical benefit, and that is going to address the question of the reviewers too little dystrophin, and there was testimony of one of the subjects that it would have several lines of evidence that are complicated that go in to say it is par tik ck you late to have a beneficial effect on muscle. but don't forget that 83% of the kids are walking after four years versus 9%. so it is easily going meet the standard, and hee is supporting it, and the ability to overrule, and she knows that everybody knows this. >> and can i ask you more broadly, because you have had amazing returns over the last 15 years or so, an annualized at 30%. 2013, 18%, and so on, so the presidential campaign cannot help your holdings because of biotech and health care. >> well, you know, honestly, i'm a little like warren buffett says, i'm not sure where the group moves, but the values are very good here. and once you get the perception out of the way, people will be generally know that whoever is the president, they are not going to be destroying, because we are leaders in the biotech, and it has not impacted the drug stocks that much, and so they run so much on the perception, that it is easy for people to get scared, and these companies because most of them are losing money. >> it is more than perception, right? hillary clinton puts this tweet out many months ago, and it takes the group down, and donald trump and whoef else on the campaign trail, and the whole spectrum takes on drug prices, and the whole space is hit. you know what i i am saying. >> yes, the high drug prices are actually good. good thing, and the reason they are good is that if you want and say you have a disease of alzheimer's, and it is very risky to develop a drug, and you want the reward to be great which causes the drug developers to take more risks to develop the novel drugs, and the orphan group as well. because you won't spend $1 billion to take on the risk to charge the few thousand patient, because you won't make back the money even if you are 100 u% sure you are right. they don't talk about that, but given where the industry is and how productive it is right now, it is good to encourage a lot of risk taking which means that you need high drug prices. >> one last question for you, and if the sarepta decision goes positive, is that a entire boon for the whole industry, and could that turn around the bear market that we are seeing? >> it could help. it could be a positive for the industry, and you know, but what i would say is that we see so many opportunities on the long side, so we are sticking with all of the major positions, and we feel that they are really reasonably valued here. >> no valeant? >> no. nothing negative the say about valeant except for the high drug price issue is focused on valeant, and valeant does not in fact invest much in the r&d, and so if you want to make the exception, and unfortunately, it is valeant, and maybe their high drug prices, you have something to complain about it, but they are not reinvesting in the r&d, and vast majority of the companies the more money they make, the more they invest in the r&d, and the morrisk in the drug development. so that is a good thick. >> thank you. joe edelman, and meg terrell, thank you. sfwroo and coming up, billionaire stan druken mill ec says it is time to get out of stocks and buy gold. and also other stocks that are down ahead of the trade. , social updates. we call it dark data. 80% is invisible to most businesses. the ibm cloud has tools that can help see dark data and put it to work. hello, my name is watson. working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion. and help a start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. coming up in 19 minutes on "power lunch" the biotechs are down this week, and is it a buying opportunity or are the stocks headed down low eer? and one of the stock categories bullish on amazon says it is going to be a 3 trillion tlrz bill -- 3 tr$3 trillion business, and should you buy? and with will look at how business and conservatives will back trump, and if the that is going to happen? back to you, scott. >> thank you, michelle. welcome back to the halftime report, and gold is higher today after the legendary investor stanley druckenmiller called to sell stocks and buy gold at the sohn conference yesterday. jackie dean jeangelis is up wit report. >> we are seeing a bounce in the goal gold, but -- gold, but it is a quick run, and ki see why people are cautious getting into the gold trade, and do you? >> yes, u but more room to the upside and the dollar continues, and the fed speak, and they want to buy more gold, because they are will create more uncertainty of what they will do, when they will do it, and the impact on the equities market drive mes to buy gold. >> and now, greg, what are the levels that you are watching with the trading here? >> well, it is going to be a focus of 1330 which is the upside of the technical level so you don't go in the face of stanley druk en mckenmiller and fed funds and the expectations here in chicago for the june rate hike is 12%, and therefore the dollar should be stagnant and allow the gold the go hi higher. >> for more on gold, go to website of futures.com/cnbc. and we have peter schiff to talk about why donald trump revealed america's little dirty secret on "squawk box" and why paul hickey believes that stocks are ton th upward trend. >> and stan is one of the best. the bull market is exhausting itself. get out of the stock market. gold remains the largest gold allocation, the fed has no end game, they are obsessed with the 20% drop in the s&p and if the stock market is the future, we should be selling at a discount right now and not a premium. thoughts? >> well, provocative thoughts. >> yes. >> and well, listen, it is provocative and a lot there that most of us agree with, but overall the tone yesterday, and for pete and i were there, and you were there for most of the day, and i think that everyone was very, very pessimistic and bearish as it relates to the economy and the stock market, itself. but that being said, getting out of stocks completely, that is not something that i would advocate, because there are ways to hedge out the expose shure i the stock market and as it relates to gold itself, we saw in 2008, and 2009, gold did not work as diversification tool that many suggested it should be. gold is only going to work for you if we melt into the great depression, but it is going to be a trade. >> i don't think it is true and it is shocking to say that you should sell your stocks and go to gold. because it is something that doesn't sound like it is something that should come out of his mouth. >> well, he is not saying that -- >> well, liquidate your 401(k). >> right, hopefully no. and the out part to me to joe's part of hedging, and we talk about it on the show, but the hedging at the lower end, scott to, hedge the portfolio and whether it is a s&p portfolio or more and more micro in the portfolio, you can have the volatility on the low end, and 250 and 200-day averages, and because of that, you might want to hedge, and we have been in gold going back to december, and an incredible run. it can continue to run, and that is really the question, i guess. >> on the stock call, you can have two bays to be pessimistic of not going up forward or pessimistic of the cataclysm look going forward. so there is nothing in the earnings or the economic fundamentals or nothing more that the central banks can do the break us up to the upside and so i'm pessimistic about future gains being meaningful in the stock market for the same reason i don't see any cataclysm decline that would force me to get out. i am focused on the dividend payeriers and the cheap one. >> dan is not here, and we can't get his full context or rebuttal to what you have said, but the bull market is exhausting itself. >> agreed. >> we would take that one? >> not entirely. >> you don't? >> no. you have been in a trading range for two year, and while you are not seeing anything immediately to break us out of the upside, it does not mean that the secular goal is out for a long shot. >> a long shot? >> yes, you have an opportunity to pick it up in the u.s. and globally, and you are seeing better in europe, and you will see better in europe as well, judge. >> i don't say they outperform us, but the fact that they are going to be trying to get these banks to do what our banks have not done which is to firm up the balance sheets, and draghi is pushing it out there longer, and that is something for a considerable amount of time to help us to put a hand under the market. >> all right. >> that is my belief. >> and alibaba is on the move on earnings, and jim chanos said he is still betting against the company. and on the other hand, we were told that others are long, and so we will hear more on that. and the dow is up 30. we will be back after this. no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. ♪ ♪ (charge music) you wouldn't hire an organist without hearing them first. charge! so why would you invest without checking brokercheck? check your broker with brokercheck. we're back on the "halftime report." alibaba is on the move after reporting stronger a than expected revenues, however the stock has a high-profile investor betting against it. he explained yesterday. >> we are short it for accounting reasons. we have real questions on some of their metrics. we have real questions on their cash flow. >> our own josh brown disagrees. he does own the stock, joins us now on the phone. josh? >> hey, what's going on? >> not too much. you were there yesterday. you heard what mr. chenos had to say. >> one clair fisk. i don't necessarily disagree. he's dodge a lot of research and the accounting questions are known. i've been in the business too long to pound my fist on a china stock. now short, about eight days to covering, and i think there is a ton of skepticism around it already. it's really been languishing in the 50s and 70s for a long time now. >> i guess the question is -- he makes the point you can't tell how profitable the fulfillment side of their business actually is, the delivery. is there a point where you think those types of questions, one that jim chenos and other are raising becomes more scrutinized. >> from a fundamental standpoint, when you go through the numbers that were reported, there's plenty of rock tore skeptical about gross merchandise value, which obviously is a huge number, $115 billion goods changing hands over the platform. people have been harping about that since prior to the ipo. but i think what's clear here, 423 million active users. it's a huge business. the cloud business is coming on strong as well, sales of 175% years over year, they 500,000 paying customers using their cloud service, which is kind of liable getting involved with amazon's cloud service four years ago. so there's a lot of positivity, but here as the bigger problem for me and why i might not be in the stock much longer technically there's a ton of overhead supply. there's a nice spike, but if this were an american company that put up the growth that alibaba did yesterday, this stock would be up like 15, 20%. but it's only up 4%, because people are just not willing to believe a lot of what they're saying and there's not a lot of enthusiasm -- >> you have a transparency issue, some would say. >> big time. >> sometimes that runs its course, and that becomes the more dominant narrative that starts to take hold. >> yeah, so look, i think still it's a decent hold here. if the stock were to erase its post earnings gain and start to break meaningfully below 75, i probably would let it go. again, this is the type of stock that i bought it after it got crushed on a washout. i'm up a bit. oil not willing to lay drown the train tracks or anything in china, but i do still feel that there's a ton of skepticism around the stock already, and so maybe it doesn't take that much in the way of good news for it to form a more supportive base here. i would not say that jim is wrong, that already a lot of questions around the company. the way it's been set up as a legal entity, they have allowed for a lot of non-transparency. thajz kind of by design. thanks for calling in. see you soon. >> you gout it. coming up, jim, joe and jon are making trades. that's next when we come back. this just got interesting. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card as long as you love me, it's alright bend me shape me, any way you want me... shape the best sleep of your life. sleep number beds with sleepiq technology adjust any way you want it. the bed that moves you. only at a sleep number store. welcome back to "halftime report." they're getting ready for "power lunch." see that shot there? hair spray in full effect. druckenmiller and his thoughts on the market, our sources are telling us that he's up 8% this year. >> whatever he's been doing for three decades. >> that's why i said he's the best, if not the best. >> at the not yet, just -- obviously maybe part of the reason he's up 8% is his gold exposure, right? potentially. >> look, all of us on the desk are going to follow the beat of our own drum. obviously stan druckenmiller is a talented investor, but what we don't have, and you have pointed this out, he's saying sell all stocks? if he's up 8%, he may be trying to lock in gains, which actually would be wise if you're in a trading range and at the top of the trading range with down side. >> let's look at our leaderboard in our own portfolio competition. drumro drumroll. >> that was a drumroll? where's lebeau? >> joe terranova is up 13%, in the lead. there's jon najarian up 9.5%. jim up almost 10%, and you bought an etf? >> i bought a bit of a volatility hedge. got to stress this is a short-term position. if you ever used these things to hedge, you can't stay in them for a long period of time. there's a lot of questions about tomorrow's employment report, but apropos of what we're talking about, i think the secular bull market is still impact, but i think we're at the top of a short-term trading range, with low gdp numbers, i want to have some hedge here. >> joe, you made a move? >> out of energy exposure as of last week, trying to find opportunities whether it technology or confusioner discretionary. domino's pizza is a name we have talked about on this desk for the better part of the last 1 months. finally had an earnings miss, gave you an opportunity to buy it, and bought it for the portfolio and myself personally. i think temperature accelerate in the next few months? >> i bought jd, getting the benefit from baba today. it's a chinese online reseller, or seller of electronic gear. bought that one, judge, earnings monday, i'll probably hold it through monday. go pro and wynn tonight. we'll talk about those on the other side. that does it for us. power starts now. and we are following a big story out of canada at this hour. tens of thousands forced for evacuate their homes as a massive wildfire burns unchecked in the heart of canada oilsands region. crude oil rocketing higher on fears that the blaze will disrupt the flow out of the country. i'm michelle caruso-cabrera along with melissa lee and tyler mathes matheson. brian is on assignment. deidra? >> reportee

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