intel and qualcomm are ones that we own, and they are nicely yielding stocks with multiples of 11 to 13 and depending which one you are looking at, and is cisco with the 3.5% yield, and intel is the same, and qualcomm with the 4.5% yield, but we have talked about it before, is old new? but looking at a name like qualcomm, and in particular, you are seeing the the breakout that you have not seen this year, and this time last year in the high 60s and now in the low 50s, but i believe it can get back to the high 60s with the breakout on the chart. >> and now, i will throw in the ibm and both of the hewlett-packards and the western dij, because they are outperform ing. >> yes, the applied are crushing it. and now, intel is up 80 cents today which is a 1.5% move, but of the stocks, unfortunately the one that you named, mel, the only one that i own is microsoft on the list. i should have been in some of these in lower price, and i have not seen it. >> and what are the investors missing here on the stories? why so reluctant to get into the old tech names? >> they are not missing anything, because the companies are slow on the, peck tau expec and they are appropriately valued, and doc, don't despair, because you will get another opportunity. the yield support, and talked about on this show the other day, and 3.5% can go in a heartbeat (and what to you like? you don't like the names or the yield names, and what do you like? >> i like activision. i will tell you why, they are coming out with a new product. they have, you know, i don't think that the street is giving them credit for the potential growth of the company, and i think that you can trade these stocks, because the question is have they near-term botm tom, and when the new entries come into the market, they will go for the junk that is sold down, because they rekuwaiting the price to value, and that is not always the case. but on a positive note, if the fed is saying that the economy is strong enough for them to raise the rates, that mean ss a spending cycle in technology, and that is going to be more of the e focus, and you could look at the stocks in technology that grows. so i have nothing against technology, but i want to play the higher quality companies. >> josh? >> well, i hate to be with weiss on the throwing the cold water thi thing. >> and you mean, just being with weiss period? >> well, no, i love weiss, bu ht hate to agree with something -- >> i thought that last night was a memory. >> oh, god. >> can we make it through the week. >> tmi. come on now. >> and here is the point, the risk on day and it feels good, and three straight weeks of the down s&p and looks like we may get out of the cycle, and 243 names in the s&p 500 up more than 5%, and 15 names are down more than 1%, and it is totally risk-on and transport is leading and financials leading and tech leading and in every country, the etf is green. so you have earning reports, and huge underperformers and look at amat, the stock is up, but it is trading where it was in 2014. and qualcomm trading at the same price in 2012. it is a nice one-day event. let's not extrapolate that out into the future, because they are not going to bet beating earnings the next week or the week after that or the week after that, and it is a one piece of news in a slog of down trend and underperformance. >> and the thing is that there is no news on these today. part of the thesis, and why i am focuseded on the yield with the stocks is that i don't think that the s&p 500 as a measure of the broad stock market is going much higher than it is right now. we are stuck in the broad trading range 2100 to 1,900 on the s&p 500 for most of the last two years, and there no reason to think that we will break out of it, because as soon as the market picks up, the fed is going to be greenlighted there, and the fed will put a ceiling on it, and the yields of 3.5% and 4%, and they are absolutely safe, because looking at the cash on the balance sheet for the companies, the yield is maybe all we get in this sort of of market. >> and the point is that the yield is not safe. my point is that if the stock moves appreciable lower, there is no such thing as yield support, and fundamentals control, and not y50e8d any more. >> and you are saying that the companies won't have the cash to pay the yield? >> no, exactly. they will have a safe balance sheet, and where the yield is protecting the appreciation -- >> oh, from the stock -- okay, i see. >> and melissa, we will see the schips are up more than 3% of the day, and 5% on the week, and tracking for the best week in four months' time, and all constituents are positive with amat leading the way of applied, and up double digits on the strong earnings, and they have it for the record eps and that track is on track for the best day of the six months and surpassed the 30-day average volume of 30 million, and marvel te tech, and also leading the wau in semi space with those names up 2% to 5%. >> thank you, susan lee. and now, let's drill down there. and the ceo said big inflections and waves that could be maintained for the next three years, and orders at a 15-year high. and you are poking at amat before, because you were saying that they were trading at levels of 2014 or so? >> well, i am saying that it is having a great day, and good things to say, and that is great. i don't want it to not be the case. i hope that he is right. but what i are will say is that we hear it from the sector particularly the semiconductors, and we hear it once a year, and never turns out to be true, so maybe this time it is true. i am not willing to rush into the name of 12%, and make that e bet. this inflection point talk is happening every year since 2012 and 2013 and the investors in the group are seriously disappointed. >> are you skeptical of what amat has to say, and josh raises a good point of the investors in the semi space, we have heard the story before, but this time, they have got the wind at their back with 3d and ram and old cell. >> well, mel, maybe it is a significant driver, and some of the consolidation in the space though that is what would put me on josh's side of the trade, because the consolidation means that there's fewer folks out there buying it. they have been consolidated into buying what amat does, and that is going to make it tougher for them to actually grow and to put up these kinds of numbers and to hold the margins. >> well, josh is right to ask the question of whether the fundamentals have really changed or not, and you have to be more granular than that, and for instance in the pc space, nobody should expect the pc market to pick up. it is not going to be happen, and if that is part of the investment thesis to get into the names, that is the wrong investment thesis, but however, if you look at cisco, they are sewing that the enterprise spending is not dead, and it could be growing better, but it is growing something, and that is for intel in particular on the data the center group, but the other chips who are catering into the enterprise spending could be a positive. so you have to look within the actual fundamentals at the granular aspect of it. >> yes, the enterprise spending is the only part positive in technology in terms of growth. definitely not pc growth. in terms of the companies though, they are commodity companies so once in a while, they will get ahead of the supply, and the demand is ahead of where the supply is coming on, and then eventually, the supply will catch on and so short cycles that are a lot shorter, because of how efficient they are in the manufacturing, and so in these stocks, you have to take the profit whns that ri there and go to the sidelines until they appear again. >> and this is what is coming up on the halftime report. still ahead, sarepta therapeutics is on the move on the final ruling of the key muscular dystrophy move. and city slicker john brown has been riding the john deere trade, and we will get his reactions to earnings. and investing in bad behavior could pay off. we will debate the sinful strategy coming up on the halftime report. man 1: you're new. 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. shares are moving higher as the fda is awaiting the next move of the drug company's drug, and meg is here to break it down. in premarket, it is a stronger move apparently on no news today. >> yes, the analysts are saying that people are speculating ahead of next week, and the fda is set to decide by thursday to produce this drug to help duschenne muscular dystrophy and it is one of the most closely watched one, because the swing in the stock could bes astronomical and it is emotional, because the families of patients are ed a vadvocatin it. they say there is not enough data, but they should know by thursday. the stock is trading around $18, and most of the analysts thinks it is going to be rejected next week, and the different scenarios there are that they have to falling below $10 on the rejection, and seema says that they are going to be asking for a whole clinical trial which would take a long time and rejected fully, and will go down to below $10. and if it is accelerated approval, it is going to $60-plus, but on the investor side, you will see the stock risen into the decision, so the inv investors are diverging from the analysts of what they expect. >> but it is off of the back of the heels of the massive decline on april 26th when that fda meeting said, no, we won't accelerate the approval, and so it is is digging itself out of the hole at this point. >> yes, what is interesting is that i have not found any analysts on the street except for one that is thinking that it will be approved and yet the expectation is that it will, and not really when you think back, because when you go through what i have heard, and the upside is con sservative at $40 and i'm i the stock, and in and out of the stock and i can't tell you where i will be on thursday and i want to think about it right now, and right now down $6 to $8 and up to $40, so i like the way it sets up particularly without the decision, and the fda can ignore the panel, and the 12-patient study is not the first study where a drug was approve and we have seen them approved with much lower participants in the study and the people i have talked about and are knowledgeable about it think it is will happen, but they are buyers in the stock. >> and you are mentioning a lot of the paper activity today, and sarepta, and the selling calls, and i have been saying for basically the last month that this is the gift that keeps on giving with 5% volatility because of the binary event that meg and steve are talking about, that is what you will get, and the volume has fallen off dramatically, and a month ago when the stuff hit the fan and the stock fell from 20 to 10 basically, the volume was about 200,000 call contracts per week, and 180,000 puts. this week it is falling all of the way or last week down to 39,000. in other words, this is dried up today even. i am sure it is hot next week, tuesday, wednesday into the thursday decision, but right now, the bets are substantially to the upside, mel, substantially on the 5 to 1 basis, and people are betting that it break s s to the upside rather than the down. >> and the more interesting and curious view in my view is the pct who has the duschenne drugs in europe selling, and the stock today is much greater and steadier than that of sarepta therapeutics and anything going on with ptpc? >> well, it is a good point, and the folks are saying that the fda has said with ptc, we will delay it, and not approve it right now even though they do have the approval in europe, and some folks say that the data set would not get fda approval in current standards and the reason that the analysts say they should not approve that ptc drug is because of the open doors for the file in the, the da and companies like ptc would fall into that category, and there are other supporters who would disagree that, but they are thinking that if sarepta's chances are good, maybe pct's are as well. >> yes, and it is already on the market. thank you, meg thirrel. >> and who has campbell soup, guys? any takers? >> ooh. well, i have not traded it. >> well sh, i think it is saltyd so i don't eat it. >> it is a value stock. do you not like it? >> well, it is not a value stock. >> well, it used to be. >> and with the run-up, it is not. >> and unfortunately, mel, it is not a name that i know. >> and the revenue is lighter, but they held the forecast, so it is more of the same, but disappointing, because if you miss a little bit on anything, you get hit. >> yes. >> and athletic retailers are on the move with foot locker under pressure with lower than reported sales, and dick's, and morgan stanley hinting at improvements in apparel and footwea footwear. >> well, in terms of foot locker, they are dependable, but they are saying that basketball is slowing, and that is right, and if nike did give lebron james a $1 million contract, i am looking at shorting it, because lebron is no michael jordan on the basketball court in terms of the personality, and off he gets nice marks, but michael is still a nice guy. i don't want to go with the middlemen, but the manufacturers so if nike comes down lower, i am taking nike. you disagree, a chicago guy? >> well, michael must owe weiss money on the golf course, and that is why weiss feels the way he does. >> not really, because i have never met him. >> and now, 6.8 million shares and $215, and dr. j? >> well, the panasonic has traded well, and goldman is the lead underwriter for the raise they are going to be doinging, and certainly having more cash coming in from the likes of panasonic from giga factory and that is a big plus, too. >> and deere is beating the top and bottom line estimates, but the stock is lower after the company gave cut the guidance for the full year for the second time this year. and josh brown is bullish on the name for some time, and this is the case. >> it is a buy, and we said in the low 70s it is a classic and iconic american company, and when the farm incomes get better and the global demand for agriculture gets better, this stock has massive leverage to that and it is going to go higher from here. >> and now, what, josh? >> same thing. >> really? >> that is like 15 days ago. >> i know, but they cut the guidance for the second time. they don't have visibility, and the second time this year they have done it. >> if your investment process is buying and selling on good and bad news, you will lose, guaranteed. >> what about the credibility? >> this stock does not break lower and put in a pattern of the high or low, and that is where the stock has gone for five years and the news is bad, and yet the sellers don't take it lower. so i started to buy in the the low 70s and 76 right now, and it could get back into the range, and that is where the buyers come in, and it is not a trade. it is something that you are not going to be able to anticipate the turn of the cycle in advance and when it happens, the stock will have been discounting that and trading much, much higher and very inexpensive name, and good dividend and i'm perfectly fine with the fact that farm income s as are in a depression it is not going to be changing a great deal right now, but when it does, you will gain. and now, kentucky derby winner nyquist is readying for the preakness, and if you are makings bet, we have tips on how to win even if the favorite d s doesn't. as we head to the break, look at the best performers in the s&p 500 this week. ♪ you should hire stacy drew. ♪ ♪ she wants to change the world with you. ♪ ♪ she can program jet engines to talk and such. ♪ ♪ her biggest weakness is she cares too much. ♪ thank you. my friend really wants a job at ge. mine too. ♪ i'm a wise elf from a far off shire. ♪ and sanjay patel is who you should hire. ♪ thank you. seriously though, stacy went to a great school and she's really loyal. you should give her a shot. sanjay's a team player and uh... ♪ ♪ (singing) you wouldn't haul a load without checking your clearance. so why would you invest without checking brokercheck? check your broker with brokercheck. real is touching a ray. amazing is moving like one. real is making new friends. amazing is getting this close. real is an animal rescue. amazing is over twenty-seven thousand of them. there is only one place where real and amazing live. seaworld. real. amazing . >> wellcome back, i'm eamon javers and where president obama has received a briefing on the zika virus from the oval office, and take a look at the tape and listen to president. >> are we all set? >> well, i had an opportunity to get a full briefing from secretary burwell are from the director and frieden and tony foucher from the cdc about the zika virus, and give people a quick update where we are. and it has been explained repeatedly, but i want to explain that e zika ist not like ebola and not a human to human transmission with the one exception that we will talk about, but it is primarily transmitted through mosquitos, and a particular type of mosquito, but what we do know is that if you contract zika, and even if you don't appear to have significant symptoms, it is possible for e zika to cause birth defects including micro - mic mic microcephaly. and we believe the that there are other neuro causes as a result of zika, and we don't know all of the potential effects, but we do know that they are serious. right now, what we have seen is little over 500 cases of zika in the continental united states and they all appear to be travel related and not mosquito transmitted, meaning that somebody from the u.s. went down the an area that has zika and got a bite, and came back. we have seen ten cases in which an individual went to one of the areas that got infected and then sx yulely transmitted zika to their partner. a more significant immediate concern is puerto rico where we know there are over 800 cases that have been diagnosed, and however, we suspect that it could be significantly higher, and the reason is that for most peop people, you may not have a lot of symptoms when you get zika. if you are not pregnant or the partner of somebody who is pregnant or trying to get pregnant, then you may not know that you have zika, and that means that people are not affirmatively going to the doctor to get tested on the issues. and now, here's the good news, is that because of the good work of the department of health and human services, and the cdc, and the cdc, we have a plan over the next several months to begin developing a vaccine, and to continuing the improvement of the diagnostic tests, and working with tats to they are properly prepared if we start to see an outbreak here in the continental united states during the summer when obviously mosquitos are more active. and what we are trying to do also is to develop new tools for the vector control meaning, how do we kill the mos e key itos and reduce the populations, and particularly this type of mosquito, and that is a tricky piece of business, because we have been using a lot of the insecticides for a long time that have become less and less effective, and new strains of p mosquitos are resistant to the insecticides and the methed tos that we are using are not as effective as they used to b and investing the time and research and the logistical support. we are very concerned about puerto rico, and the other the territories, and also working in the states to be better prepa prepared. all of this work cost money. we have put forward a package that costs $1.9 billion in emergency funding in order for us to pake sure that we are -- to make shure that we are developing effective diagnostic tools, and distributing the vaccines that will ultimately prevent tragedies that we have seen so far, and end up having children with significant birth defects. and we didn't just choose the 1$1.9 billion from the top of te head, because it is based on public health assessments of all of the work that needs to be done. it is to make people feel secure, and people of child-bearing years who want to be kconfident when they start a family, that it is not an issue, and to the extent that is something that we feel important, then this is a modest inves investment for us to get those assurances, but unfortunately what we have right now is the senate approving a package that would fund a little over half of what has been requested. the house so far has approved about one-third of the money that has been requested except that money is taken from the work that we are using to m monitor and prepare against ebola. so all that house has done is that you can rob peter to pay paul. given that i have at least pretty vivid memories of how concerned people were of ebola, the notion that we would stop monitor i monitoring fbttyly with ll lly and work on e -- on zika is something that we cannot switch out. we don't need to panic, but we need a modest investment on the front end, and then this is going to be a problem that we don't have to deal with on the back end. every child who has something like microencephaly may end up costing millions for that family setting aside the pain and the sorrow and the challenges that they will go through. add it up. i it is not going to be taking a lot of cases for you the get to $1.9 billion. why wouldn't we want to make that investment now? so my hope is that we would have had a bill that i could sign now. because part of what we are trying to do is to accelerate and get a vaccine going. you won't get a vaccine overnight, and you have to test it to make sure that any potential vaccine is safe, and then test that it is effective, and you have to conduct the trials where you are testing it on a large enough bunch of people that you can make scientific determinations that it is effective. so we are have to get moving, what the nih and cdc is doing is to take the funds from the universal flu fund or the ebola fund tot get the thing rolling, but we have to reimburse those pots of money depleted and we have to have to be able to the sustain the work to finish the job. so bottom line is that congress needs to get me a bill. it needs to get me a bill that has sufficient funds to do the job. they should not be going off on recess before this is done. and certainly, this has to get done over the course of the next several weeks in order for us to be able to provide con fidence o the american people that we are handling this piece of business. if i am a young family right nwu or somebody who is thinking of starting a young family, this is a piece of insurance that i want to purchase. that is true for most americans. so, and understand that this is not something that where we can build a wall to prevent. mosquitos don't go through customs, and to the extent that we are not handling this thing on the front end, we will have bigger problems on the back end. so, for those of you who are listening, tell your members of congress, get on the job on this one. it is something that we can handle. we should have confidence in our ability to take care of it. we have outstanding scientists, and researchers, who are in the process of getting this down, and they have to get the support of the public in order for us to accomplish the goal. okay. thank you very much, everybody. >> mr. president, do you -- >> thank you, paul. we have been listening to president obama talk about the effort to fight the zika virus and urging congress to take action and get a bill in front of him so he can sign it. >> and he said you can't build a wall to fight zika, but what is happening is a negotiation, between the executive and the legislative branch on how much money they are going to the spend here. the house has passed a $622 million zika bill, and the white house says not enough, and they want $1.9 billion the fight zika, and the senate is stuck on $622 million, so somewhere in the middle is the price for the right negotiation, and the president is putting pressure on congress to get what he wants. >> okay. let's bring in the biotech reporter meg thirrell and the usual suspects ticked higher talking about inovio,and also, another case where they want to follow the mosquito. >> yes, follow the vector, and this is part of the strategy in the near term where they are developing a strategy of programming the mosquitos to wipe out their own kind, and right now the tests are pending in south florida. there is some local resis tense to the idea of the gmo mosquitos and over the next few months we will see how it plays out, but in the near term, it is not something that they will roll out at least in the next couple of month, because they have to get through the testing and the public response. but that is something that really drives intrexon a lot. but it is interesting to hear obama talking about the urgency as the weather warms, because there is more mosquitos around and this is going to be transmitting in the united states. >> yes, it is no a southern problem, but all over. in just a few weeks. meg tharl thank you, our biotech reporter. much more "halftime" after this. lepe's foods is a locally owned here in santa rosa. as a small business, we're always looking to save money, and pg&e was able to help us. i help the small businesses save money and energy. it feels great. we looked at their lighting, their refrigeration system, and with just those two small measures, they were able to save a good amount of money. i was shocked. i couldn't believe that i could save $1,500 a month. with the savings that we get from pg&e, we're able to pass it on to our customers. it's pretty awesome. learn how your business can save at pge.com/businessenergycheckup. together, we're building a better california. report" an over the sue herera with the latest news headlines. >> this is the cnbc update for this hour. three french investigators are arriving by bus tole help investigate the missing egyptair 804 flight. they said that the radius could be expanded as necessary. >> and the fda is changing food labels to list how many grams of sugar have been added by manufacturers. other changes are the definition of a serving size to more accurately reflect the amounts of food that people now eat. jason dalton, the uber driver charged with the kalamazoo shootings was hauled out of court after interrupting the proceedings as a survivor victim testifies. it is called one of the biggest food recalls across the united states, and at least 400 products under 40 brands from cr frozen foods are being recalled. two people have died from complications with eight others sickened by lis teteria, and th recall started last month, and it has been steadily expanded. we will keep you posted on that one. that is the news update for this hour. >> i lost my appetite. thank you, sue he herrera. and now, more uncertainty is gripping the markets and the next guest has three value buys to take advantage of the shift. karen firestone is here with some of the new positions. you started to buy some oil company. >> we did. we started to buy mobile, and the last time i was on we talked about schlumberger, because we were underweight, and now we have added little more risk and it is about that the oil prices will stay at the price and maybe lower, but nobel is diversified globally and half natural and half oil, and they have gone all over the world, and on the ebida basis, it is selling for 7 time, and it is one of the companies that has cost control, and cap x discipline, and unlike many participa participants in the field, and so we like it here. >> and another one that you are adding is paypal, with an investor day this week, and the stock took a dip on the back of that, and what are the investors not understanding? >> well, paypal, the digital mobile payment space is growing. we know that there is competition, but they are the dominant and the leading field, and they have first-mover advantage because they did it for ebay for years, and we believe that the transactions are going up per user, and 108 million users on the system. and the mobile app one touch is very are very good product. easy to use, and agnostic across all types of payment, and it is a lot of press spots, and more pitch is good, and the paypal platform is robust, and the technology is strong, and we think that it can continue to grow, and the earnings will justify the stock price moving higher. >> and we have been talking about retail this week, and a lot of misses in the sector, and a couple of bright spots, tj maxx and you have been adding to the position, and why at 22 t e times current pe would you add here? >> well, it is 19 times next year. >> yes, next year. >> but it is a star in the retail wreckage and one of the companies that has been able to grow. they just reported an 8% comp overall, and home goods up 9%. this is an environment where they are taking the market share from the traditional retailers. they compete with amazon, because it is not the amazon experien experience. they buy from various retailers at very high quality product that they sell at very low prices. that is good for tjx and giving people what they are looking for and craving if they don't want to shop on the phones all day. they have woner derful management, and also, they have been able to provide revenue, and that is exceptional manageme management. >> are ta going to be able to repeat the comps though? because isn't a that the problem of the retail stories, growing at 9%, 10%, and ten you do 6%, and everybody is looking at you like, oh, no, the deceleration, and the story is over, and what have you done for me lately? >> well, tjx has weathered the hurdl hurdles, and the stock at times of fast growth, and other times not so fast. but it is still within the framework of retail, it is a place that you can go. it is in a sense one of the safe places in cop sumer discretionary, and i don't have doubts that it is at a certain point that it went up 20% it would not be somewhat pricey, and we are not buying it there -- >> but forget the valuation, can they keep fwroeing as fast as they can? >> well, can anybody keep growing at 9% comps, no, and the answer is no, including apple. right. >> and karen, you brought up apple, and news that samsung is partnering with al areley bau ba to have a payment is system, and to what extent can the competition help paypal? can samsung look at paypal, and say, instead of competing with them, we want to partner with them, is that a possible? >> oh, yes, an salutely. it is a definitely possible, and that is one of the reasons that we like the stock, because it is out there with the system, and the platform that is undeniably excellent that the bugger players will say, we can't do it ourselves. >> and so it is well known for the peer-to-peer as well as commercial transactions where they believe they can have an edge. >> yes, other retailers and phone companies and the networking companies no doubt. >> karen, thank you for coming by, and karen firestone. come up from cigarettes to beer to fast food, sin is in for the motif of the month, but the traders are not loving the badly behaved strategy. we will debate that. f as we go to the break, looking at the heat map, the greens with staples there at the end lagging. more of the "halftime report" after this. if you're going to make a statement... make sure it's an intelligent one. ♪ the all-new audi a4, with available virtual cockpit. ♪ i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound) mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile... even when i'm on the move. sign up at etrade.com and get up to six hundred dollars. oa skin transformation that rivals the leading department store moisturizer. revives skin to fight 7 signs of aging. with olay, you age less, so you can be ageless. olay. ageless. technology moves faster than ever. the all-new audi a4, with apple carplay integration. the e-class has 11 intelligent it recognizes pedestrianss. and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2016 e-class. lease the e350 for $499 a month at your local mercedes-benz dealer. playing for talways stacy.? at kpmg we've always believed leadership is about vision and integrity, confidence, inspiration, and passion. ♪ pitching wedge. thanks phil. and always having the courage to take your best shot. see the best of the best at the kpmg women's pga championship coming up on power apple. the new flagship store. a whole new look and will it fuel sales? chip stocks are rallying pacing for the best week since february 1st. positive weekend vibe. listen up, tsa. want to solve the problem of the long leans at the airports? a ceo of a health care company is taking the scanning technology, applying it to tv screening. that and much more top of the hour. meantime, here's an investment idea you don't want to tell your mom about. our next guest seeing an opportunity in sinful stocks. ceo of motif investing is here. welcome. most people know what the seven deadly sens and find stocks that fit each sin and put it into this basket. >> absolutely. it's a 20-stock basket. as you might expect, heavily waited to gluttony, tobacco, alcohol and fast food and 10% to the sloths and vinny, 20 stocks that track these sins. and we looked at this as a serious investment because a lot of people are moving away from discretionary to staples and there's a growing trend with, you know, anti-sin, carbon free, gun free investing and this was a sector that's actually often neglects and up 2.6% over the year versus down 1.9% for the s&p. it was up 6% last quarter. it could n't withstand the mighty fed. still outperforming the s&p over the past month. >> seems like if you wanted to make the most money, be in gluttony. how do you weight the sins? seems gimmicky when the other ones looks like the list like the other sins dragging gluttony down. >> it is an adjusted market cap. take the percentage of revenue and ajust the market cap and actually come up with this weighting methodology in here. we look at the weighting methodology. >> i like to keep my personal life separate from professional life. i don't want to double down. some names are interesting. why do you go with an oxif when there are others? >> it is the largest tradeable hedge fund, for example. there's a 50-stock endeposition behind it and we track the risk return of the bigger index and not stock pickers. we try to build indices behind these things so it actually was the best mathematical way to track is the complex answer. >> the correlations here are questionable. certainly the gluttony stocks we understand and just as an example church and dwight. i understand why it's in there for lust. they make trojans and arm and hammer. unless there's going to be lust in the laundry room, that's dilluting -- >> another motif, jim. >> interesting on a friday afternoon. >> cigarettes are up for the first time in 15 years. alcohol is trending up. >> pure plays. >> pure play. they take the majority of the weight. right? so most of the weight in the 70% is gluttony. to be clear, a lot of it is. and you discount the other ones, 1% for church and dwight, for example. for the very reason you mentioned so it is very methodical even though there's subjectivity into what is a sin and what isn't. >> how about for sloth? >> they're all in the index and we pick the best stocks to track the index. >> okay. >> no intent there. >> all the binge watching. >> exactly. dante says sin is technically if you're not obsessed with god that was sloth. that was the original definition. so all these things have very -- a lot of subjective view on sin itself. >> nice to see you. >> thank you for having me. a busy week of earnings coming up. the trades ahead of the numbers next. before we take a break, look at the halftime portfolio leaderboard. stay tuned. [crowd cheering] i could get used to this. now you can. when you lease the 2016 es 350 for $329 a month for 36 months. see your lexus dealer. michelle's getting ready for "power lunch." i'll be there in an hour. take a look at the big earnings out next week. these guys are all watching them. you're watching tiffany, jim. >> expectations are really quite low here, melissa. the question is whether the hurdle is low enough to clear it if. they can, thing give insight of the chinese consumer and japanese consumer and the american luxury goods buyer. again, this stock first off in a down trend for quite sometime. expectations and estimates coming down with it. but if they can clear the low hurdle, this is a stock that traditi traditionally traded with a mid-20s multiple and could go back to that. >> in this retail environment, in this dollar environment, in this international market environment, do you like tiffany? >> i do. this will be the last report, the cfo is stepping out. as of today i believe is his last day so going forward we're going to see this as his last report he will have his name on i guess having to sign off on and as jim said trend is down like this but i'm optimistic. i know oppenheimer is, as well. the target from 70 to 80. $65 stock. >> are you watching gamestop? >> i am. for a couple of reasons. >> you like activision before. maybe not entirely surprising. >> right. subscription model is picking up and online model and that's been hurting gamestop. but they've been managing cash flow excellently. tons of free cash flow and see what they're doing with what the trends are. hit's not been without issues and some of the real value players exited. as long as they keep buying back the stock it's okay and not really where i want to be. >> gamestop, it's becoming less and less dependent on games because they started to buy these at&t wireless stores not from at&t but the independent ones. it's called spring something or other and seems to be where they see their future more involved in wireless mobile at the store level and they clearly know how to operate a store and maybe not a bad idea. >> not by choice, though. >> a hail mary. >> we have three hours until the close for trading for the week. let's get the second half trades, dr. j? >> a couple of stocks. one, our guest was talking about, miss dpirstone of tj maxx, but hanes brands. hbi, i bought calls in there because of the strong activity. >> we started with this and going back to qualcomm because it's continuing to rise as the session goes on. if you look at the chart, this is a level it's not reached for six months and feels like it's breaking out here and watching to tonight. >> yeah. look, i have a bid out there for endo pharmaceutical, a complete disaster and should be and see if i get hit an on it. >> trb? >> i'll just reiterate. deere. because i think it puts in a decent candle today. will not close on the lows and i did not mention this before but warren buffett is a buyer. i like being along for the ride. >> all right. have a great weekend. "power lunch" begins right now. >> buy now! ♪ ♪ what he just said. i don't know what he said. melissa, thank you. we'll see you in a bit. it is 1:00 on wall street. 10:00 a.m. in downtown san francisco. you are looking live as brent mu mussberg eer used to say. the flagship set to open in downtown san francisco. welcome. i'm tyler matheson. apple shares are high up right now but they have been hammered as you know over the past year. how much have they lost? 27%. that makes