Lets begin with the earnings story. Pete, im going to you. We said its the busiest day. Numbers are coming in. What are you doing as a result . I think the most important thing is when you look to the start of earnings season, we look at the financials. Weve kicked more and more into overdrive when you look at whats going on in technology, and technology sticks out. Texas instruments last quarter great report, stock jumped up and its maintaining where it was, scott. Is it moving much . No. Had a great number but theyre not moving a lot. Part that have is because they ran into the number. Intel, on the other hand, when they reported they missed on certain areas that were very concerning to people and thats why that stock has sold off and now it is wavering around. Western digital today, look at june perfect yesterday, technology continues to be very, very strong and that stands out big time this week in the earnings. Wow, look at wdc up about 7 1 3 percent. How does the market here look to you . Earnings have been pretty good yet it feels a little uneasy. The major averages feel uneasy now. It feels like were at an inflex point. We think the status quo weve been living through of rates going down and stocks drifting higher and being led by the defensives and yield chasing stocks we think theres a change coming. We see a little inflation and you see it in a lot of different sectors and in the way stocks are reacting in the Earnings Report this season. You look at whats happening with the tenyear yield today at 185. You said you were short bonds. You told me youre massively short right now. Today its probably our biggest position as a collective group, and it is really a swaps trade, so its not what a lot of people who watch this but its short european bonds, u. S. Bonds, and japanese bonds. We think the concept, though, is understandable by everybody watching, however. And low yields have infiltrated everything, right, so whether its 500 stocks that do m a deals or share buybacks, its everywhere. You look at Big Companies that are even great, Simon Properties group. This trades at a sub 3 yield because people have chased it, because theyre come pg it to government bopdz. When the yields start to go up, people are treating stocks like bonds and if those yields go up, you could see the equity prices get killed really. You guys believe that . Uty, the utility index had a massive correction and sort of consolidating now but it will go down. And i agree with you. It wasnt that long ago, it was the beginning of the year, we were at 215 on the dump. Anything where people it will take a while. Its going to be gradual. Well see the fullon dump. It depends on the rate of change in the ten year. We had japan come out and say, you know what, we dont have to necessarily increase our buying of sovereigns because we think we can get to where we need to. So central bankers are finally getting it and theyre saying its more important for us to have a healthy Banking System and to have a consumer thats earning money on their Bank Deposits than it is to keep driving zero Interest Rates or negative Interest Rates because they really havent worked. Theyve actually been a negative. So thats the trend. So well see a ten year back over 2 as i pointed out on the show before the ten year was at 3 in 2013. We can get there. Joe, what jumps out at you today, the it teslas, the twitters, the fords, barclays, you have some big names that came out with numbers. Listen, the bond conversation is a good conversation. I think the yield curve obviously needs to steepen. That would have a positive impact. The one thing i dont think you want to get caught up in is the macro call. They are having a field day right now anytime the market gets up to 2165, 2170 they slam it right back down. You think it will break through for the 5 to 10 correction and it holds these levels. So im in the camp of what pete is talking about. I own texas instruments. A couple weeks ago i sold off some of it because i was concerned coming into october. Im going to keep what i have because i like what im hearing for technology. Im coming back around to financials and a couple names ive added today, usb. Usb to me could be the winner in the wells fargo saga because now that becomes the trudee domestically oriented bank. Staying with my bbt. Some of the regionals are performing well, still think thats a potential m a target and the earnings that havent been good it like yesterday i wasnt here but pandora to me below 12, thats a gift. I still think that stock is getting bought 18, 19 when it does. You have an activist always talking about that. Judge, when you look at the fixed income trading and you look at what happened after brexit, look at jpmorgan, citi, the big banks, bank america, merrill, those are the ones that made the money from that, right . Each one named exactly that and said their fixed income trading was through the roof. What steve is talking about with rates going back up perhaps even over 200, 215, the short position jon has in bonds, that would benefit these guys in a huge way not just from what people think. Not just from the interest going up. Thats a minor piece of it. Look at how well they did in basically a flat Interest Rate environment when the fixed income trading went nuts. That will be huge for these guys going forward. Let me ask you, jon, about tesla which posted a profit, sort of gave the bears a sucker punch yesterday. Are you short it . Yeah, yeah. Its a tesla quarter, right . That Free Cash Flow is not Free Cash Flow you can take to the bank. They extended their payables by over 600 million. They worked out some inventory, dropped their cap dramatically. That was a one quarter blip. Its still tesla. Elon got pressured by the street calling him out that it hes never going to make a profitable quarter, and so he fab ricated one. Fabricated is a strong word and thats not where i wanted to go with the analogy. He manufactured a positive free flow quarter. It sounds like the same you heard about besos. Hes going to go back to running the business how he wants to run it. But thats losing money is how he wants to run it. Payables has cost of goods doubled from 15 to 36 . Its been 15 forever. It was clearly a different quarter in the way he completed it. Anybody see this on the other side that have . No. The posting of profit doesnt sway anybody . No. I was actually thinking the same thing. He needed it. Hes got solar out there which makes no sense to me, and i dont know who it makes sense to. I think hes run out of funding mechanisms for solar city as a Standalone Company because spacex cant do it anymore. So what do you do . You buy. He needed to make sense. So its just stark how all of a sudden this quarter when its at its low they come out with a profit. So i do not think its susta sustainable and competition is picking up markedly in the in it his space plus, also, what youve heard on their latest car is just stark. Consumer reports has gone from tesla being the top car, the model s to being the worst car. He need ed it now more than eve. So if theres anything in the kitty, bring it on. Halftimes resident shark is live with us today from toronto. Good to see you again. Thank you very much. We were on tesla. Lets go there. This profitability quarter change your view in any way . No, it doesnt. I have a different take on tesla. I understand why people are short it but i see the tension in the market. All the young guys around me right now own this stock personally. We dont touch it within any of our mandates and my reasoning for that is this. One day gravity will strike on multiple. This is a car company. Bmw has an equivalent product Getting Better and better all the time and i understand the amazon argument but let me explain the difference between the amazon years when they never made money and the besos story versus this one. The rouen reason gravity will strike tesla it makes one thing, a car. The platform amazon has become and defied gravity for a decade is it is a tremendously diverse platform of income, all kinds of products, the cloud is a big part of business, many of my Small Businesses use it now. It tesla makes a car. One thing. Cars. And why it can stay is beyond me. All around me we have this bull and bear debate with my people at work here. They own it. They love it. Its bart of their culture. They want to own one one day. This does not trade at multiples. They wont listen. What we node to give them the lesson they deserve because all these young guys have never faced the down side of a stock that collapsed 30 , 40 , its coming and big daddy will be right. Right now theyre smiling and laughing at me. It defies gravity. Youre endearing yourself to your workforce. I just want the truth, judge. I just want the truth. Tell me why this can trade at a crazy multiple in perpetuity and it doesnt make a single dime of Free Cash Flow on anything it makes. I need these guys to learn that lesson. Otherwise all the things ive learned over my decades of trading means nothing. So then what are you buying today, kevin . Im taking a counter trade on health care. Im going in i had an anecdotal experience i want to tell you about, some of you have heard this. A couple fridays ago i went to philadelphia and this is a democratic strong hold, a big spread in the differences between what they think will happen and 400 stores in the area taking my wine so i went for two hours about 1,000 people there. Coming up to me im signing wine bottles with a felt marker. After 20 minutes i get bored. I want to take an informal poll. I start asking people, who are you voting for . Half of them wont it tell me. 525 of them did. And i would have expected a wide margin going for the democrats because that is their country. Thats their zone. Hillary won by two votes. Thats it. When i left there i realized maybe the polls arent right. Maybe we all have it wrong. I dont know. I decided to put on a health care trade. Im going to venture into four areas i think will spring back just in case trump wins. I dont know. I dont have a horse in the hunt. All im saying is something is awry. Its not right with what i saw because many people told me we dont talk about it. Im not willing to tell you who im voting for but secretly i cant tell my husband im voting for trump. Youre a woman, youre voting for trump . That was the kind of thing i saw there. I went into it four health care positions. I said im going to go ihi, which is medical devices. Its been pounded down as a result of hillary and all the things negative on health care. I also went into pjp, my pharma play. These are all etfs. One that no one has ever heard of gnfx, just generics global, and i think it will respond positively, and ibb. I put that on 25 cents on the dollar, and im just going to sit through the next 90 days. If trump gets in, i think ill make 7 to 10 on these trades. Even if he doesnt, these things have had the you know what pounded out of them and i like to hold them. The market will come back saying were through the election. Hillary cant get the stuff done against the pharmas. First question is do i want it to short oleary wines if clinton wins, away from that the second question is banks have acted counter intuitive to the trade because theyve moved up. If clinton gets in, now with warren attached at the hip, theyve been going the other way. You were short banks. Is that still a trade you have . I still am because my thinking is we have a 30 chance now. Look, the banks are moving up because everyone thinks they will do the 25 bit. That may be 72 saying that will happen. I actually think theres a chance, more than 30 that they wont. If that happens, youre down 7 to 10 , this it will be the sixth head fake on financials so i am short. Im definitely short the regionals and the main names, and, look, i could be wrong. This is a trade but i dont like the balance sheets, the return on assets. Dont worry, the fed will rescue us. This time for sure theyll rescue us. I guarantee a fed rate hike, i say sixth time we get the head fake. Long pharma and short financials. We havent even talked about twitter yet. I want to ask you, john, daily active users up 7 , cutting the workforce. Are you short that name and, if not, why . We were. Were not. I think its an interesting asset. I love using the product. Its an Unprofitable Company and somebody might buy it and maybe somebody wont. I sit on the sidelines and watch and occasionally send out a tweet. Kevin, whats your view on twitter post earnings here . Is it any more attractive to you or can you just not get there . No, i cant get there. Im coming to the conclusion that twitter is a feature. Its not a business. It cant get more promoted than it is. Its part of the psyche of the election, but they cant seem to monetize it. Something i call the shark tank ind index, the 32 small cap privates that use social every way they can to garner customers, twitter has fallen out of favor there. They are using snap chat. They use instagram. Theyre using linkedin, facebook live. So when i talk to those 32 ceos, whats up with twitter . They cite no growth. And there is no growth. There is no growth there. And so they have not been able to use it in a way to monetize it in consumer goods and services. And so maybe this thing gets attached to something as a news feed, but weve already heard that story. The stock went people that bought that thing in the 20s a 20s are hurting. I dont know how you monetize it. The night when grown men cry over amazon . Amazon i used to own the shares when i could get yield out of it years ago. Ive not owned the stock since then. It is part of everybodys definition of a unique company that flies in a different around a different planet. It doesnt have to trade off multiples to cash flows. Thats why i dont own it. But one day, my friend, one day it always happens because you cant trade in perpetuity. You cant trade against nature forever. And i just believe in multiples of free cash and it will affect twitter, tesla. Tesla is the one that just me off. I dont get it. These buckaroos every day i come in this office they laugh at me. Theyre going to pay a horrible price and daddy will teach them a lesson. I dont know when. This trading for good deal today, its iex is hosting a charity to support wings over wall street. Here is a look at what theyve raised, more than 31,000. Doc, youre involved as well, and kevin is involved, too. Kevin is the guy that when i reached out to kevin he said, doc, i never do this, but kevin was nice enough to say, yeah, ill go out to dinner with three folks. So thats going up on the bidder for goods site you see there on the screen. And you can go out to dinner with kevin. You can pitch him or you can tell him why hes wrong on tesla and hell take it, but he might end up being right on tesla so be careful about that, folks. Anyway, that you could bid for, that dinner with kevin and ocean prime. It will be great. And as you see iex has run up 31,000 just from the share trade of 1,000 shares or more through their exchange today so thumbs up to brad, all the guys over at iex for the great donation. Thanks so much for doing that. Thanks for being here today. I know well see you again soon. Take care. Thank you. Wings over wall street. Org is how you can donate if youre interested. Next up, new short ideas from john fichthorn. Names in the health care industry. Michael ovitz, one of the entertainment industrys players in the media and where he is looking for new stars out in california. It may surprise you. Hey nicole. Hey i just wanted to thank your support team for walking me through my First Options trade. We only do it for everyone gary. Well, i feel pretty smart. Well, were all about educating people on options strategies. Well, dont worry, i wont let this accomplishment go to my head. Im still the same old gary. Wait, you forgot your french dictionary. Oh, mucho gracias. Get help on options trading with thinkorswim, only at td ameritrade. This is the new comfort food. And it starts with foster farms simply raised chicken. California grown with no antibiotics ever. Lets get comfortable with our food again. Were back on the Halftime Report today with john fichthorn. I want to talk about new things youre doing and express scri s scripts. This whole drug price craze where they are ramping drug prices. This is the next phase of that. People do what youre paying them to do. Buying cheap drugs and marking them up 500 . They are not managing drug prices for the people they should be. Theyre managing for themselves because they get paid a percent on the drug price. So guess what they try to do . They try to keep the drug prices high. You have this case with express scripts and cvs and the pressure, people are figuring out the joke, right, they announced earnings the other day you have a company thats at flat revenues for a number of years and yet operating margins have basically doubled, and we know where thats coming from. And so anthem, one of their biggest customers, sued them about a year ago for 13 billion of over charging. When anthem went into the lawsuit and started investigating, all the errors are to you. Youre either making a prescription thats for too long, for the wrong drug, whatever it might be. And so on the latest earnings a couple days ago we had a couple of department of justice, attorneys general say they wanted to call u. S. Attorneys office for the Southern District of new york, september 12 a subpoena from the department of justice and the u. S. Attorneys office for the district of massachusetts this is about subpoenas over a drug company and their fapharmacy ties. And these guys i think it plays embolden you . I think it plays out like valiant. Somebody will be sitting in it front of Congress Talking about what theyre doing and its a black box, and you can look at their financials and figure out theyre making a whole lot of money, and that money is coming out of the u. S. Taxpayer and out of Insurance Companies. People are starting to fight back. Knowing you were coming on today, they obviously sent a long list of reasons why they were in defense of their company. They say the following regarding the subpoenas i would like to read and ill quote. Given the ongoing focus of drug pricing its no surprise the pharmaceutical industry and by extension our industry will receive inquiries like these. We generally do not comment beyond our filing but as always we intend to fully cooperate. So just put that go out there on the record is what express scripts is saying. I look forward to their full cooperation as well. How new is this short position . Its something weve been fiddling with for the last six months, right, and it really it took a while to even figure out where this kind of excess margin was, even anthem couldnt figure it out. It took them auditing the numbers last year to really see it and all they saw were a lot of errors. So youve had massive consolidation in their customer base, right . Middle men always have a limited life span in terms of their business, so youve seen cons consolidation on their side, too, cvs, a relatively new entrant into the business. Youve had better care cant negotiate drug prices under obamacare. When they can negotiate drug prices, as Congress Comes on and pressures drug companies, what is their earning power . Well, you know, were only going to find out in the future. I think margins are set to contract. People are pushing back on the the Insurance Companies are pushing back. 60 times earnings now. Its at a market discount. If you see margins cut in half, top line, theres no top line growth in this business. So this is a company that has fallen significantly from a year ago, this stock was close to 90 this time last year. And now its 70. Youre saying the stock has not endured the type of pain to the down side that you believe it can. Thats correct. Okay. I want to switch gears to a company i dont think weve ever mentioned on this program. Its ptc. Sure. Its another new short of yours. Its a software maker. It is. Tell us about it and why and why you dont like the name. Theyve been around forever. Its an old software, Life Cycle Management company, and in software theres always room for creative accounting, right, and it always happens in the transition from license and maintenance to subscription as a service. And wall street pays a much different multiple for subscription business than it does for a licensed business. Rightly or wrongly. At the end of the day its a couple sentences in a contract but wall street thinks its worth almost in order of magnitude more. What you have is a bunch of guys sitting around designing products on computers that use their software to do it. And they wept from license and maintenance to subscription and it is our belief that what theyre really doing to grow their subscription is just going to people and saying, hey, convert your maintenance to subscription because youre seeing the maintenance go down and the subscription go it up and its basically the same number. This is a company thats had six quarters of down revenues and earnings, doesnt really make money as a Software Business which is kind of shocking and yet the stock has gone crazy up. Its been up. They use great accounting techniques. They take a monthly number and multiply it by 12 and use a factor of two and we dont know where it comes from. So theyve reported great backlog growth off of a zero base. But youre looking at a company that you look at crm. Sales force. Salesforce. Com. In the case of sales force you have an entire labor force using this stuff and it makes sense. They may lose seats with subscription. This is the real risk weve never seen. If theres a downturn, people can now turn it off. They couldnt do that with the Software Companies beyond but now they can just turn it off. We havent seen a real downturn since it became a thing. You stop using it so you bring in engineers, they design the product and want to stop using it which the ceo said is why people love their business as a subscription because everybody can just cancel it after using it a year, a year and a half. It may be a very different business, maybe one you dont want. If people are in defense of this company, there was a wall street journal story that came out not two, three days ago, ill read the first line from it because i think it underscores why the stock is going the other way. Software maker ptc is suffering from declining revenues and earnings, its cut staff and taken restructuring five years in a row yet shares are up 70 since february and analysts are almost all bullish on the stock. Were shorting something where the wave is pushing so strongly against you despite a thesis that doesnt appear to be all that wrong based on some of the other reporting thats been done. The thesis is right, unfortunately people dont pay you for a right thesis. They pay you for the stock to go in the right direction. The key is that, you know, weve reached this point now where its been going on for six quarters and were going to they keep missing numbers. They Just Announced negatively a month ago, the quarter they announced last night, and well see how it plays out. I think the stock has had such a run now theres a lot more risk because the multiple is very high. Well take a quick break and do more stocks with john fichthorn. Super agent Michael Ovitz will join us. On the agenda today the future of the music industry, his search for new stars in some surprising places. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Is happening before our eyes. Shift in Human History sixty to seventy Million People are moving to cities every year. At pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. Partner with pgim the Global Investment management businesses of prudential. This is the rx. Elevated. Rx hybrid and rx f sport. Get up to 5,000 customer cash on select 2016 models. See your lexus dealer. Welcome back to the Halftime Report. Mention the name Michael Ovitz and you think of the super agent once called the most powerful man in hollywood. Today mr. Ovitz is still look ing for stars only this time its up north in Silicon Valley where he invests in and consults for Tech Companies in the ecommerce and bioscience field. Michael joins us live now on the phone from beverly hills. I know you dont do this all that often. In fact, i dont know when the last time you did do an interview was. Its great to have you. Thanks for calling in. Hey, scott, congratulations on the five years and all the fantastic interviews youve put forth and for coming over to insist that i do this or you would kidnap one of my kids. I twisted your arm pretty good. I have the luxury of knowing what youve been up to for a good number of years. I dont think our viewers know. What has attracted you to go up north in california to Silicon Valley to look for the next big things and the next big people . I was very fortunate in my in the 90s to meet a gentleman, two gentlemen, and i went on their board in 99. Prior to that while i was at ca we did a lot of work up north in the 90s in the years of the internet and one factor obama very clear which was that there was a very strong and growing talent pool up there which mimicked what we did in the entertainment business, but a different type of expertise. And as i started going up more and more and meeting different young people about ten years ago i started to go up regularly. And now full time and have discovered an environment up there thats very, very similar to what we lived with in the 70s, 80s, and 90s in the entertainment business we considered really golden years because of the flush economy and the need for content. And we see it happening all over again but with a different set of players. Its funny. Those players the star names are still there. Theyre not stallone, of course, but theyre zuckerberg and hastings. Are those the kind of people who you are attracted to that you think theyre the ones who are creating the next big things up in the valley . Well, sure ly mark and reid have done extraordinary things. When you realize that you look back ten years ago there was no netflix. Facebook was in its earliest stages. Now the reach they have is extraordinary. I find them to be very talented, good barometers of what the f future will be. I look for younger people who are getting started, that will be the next hastings and zuckerbergs. You look at someone like evan spiegel, for example, who came out of nowhere and you have snap chat which didnt exist. And now the user growth is extraordinary. You have young people up there i consider to be talent that are names you wont have heard of. In bioscience two young guys, dr. Scott dalia and brian slingerlan had stemcentrics that has been working on cancer issues and just sold. You go to the other end of the metronome, you have a bunch of young guys led by a h ph. D. In robotic engineering from our own carnegie melon and theyre making very smart toys unlike anything youve ever seen. So you run the gambit from one end to the other with all these smart people. Its similar to what we saw in the heyday of the entertainment business where ideas were turned into visual, audio or materials you could read by young, brilliant, creative people. Media and entertainment, one of the things that is clearly in your wheelhouse, weve talked often about and ive heard it from you privately about the possibility of more consolidation in the media and entertainment world and now we get at that ti t and time warne. Do you think that just further opens the flood gate for more deal activity . You consulted on a number of industry deals throughout the years, so how do you see the landscape . So i must say i think that the consolidation is something thats been discussed, anticipated, and, frankly, more expected than it seemed in the aftermath. Weve seen a complete change in what the definition of content is. Weve seen a complete change in simple issues like how do we consume content, what is content . Is content social media . Is content entertainment . Is content in a 30minute form, a 60minute form . Is it binge watched, watched as needed, everything has changed based on the mobile device. I watch young people that view their content on a small screen and, scott, you and i discussed the fact that in our day all we ever wanted was a larger screen, that was the biggest screen imaginable. Today you see young people watching tv shows or sports on their smart phones. And i think the individuals that are running these Large Companies that we call the northern companies and, by the way, theyre not necessarily all based in the north, but if you look at apple, facebook, microsoft, amazon, you look at the chinese companies, alibaba, google, all these companies are providing distribution and content. But the content has changed geometrically. I think the screen size is irrelevant but whats in your hand is relevant. And i think youre going to see a lot more consolidation in the industry. Companies down south surely know how to make the content that is more on the entertainment side. The other Larger Companies flush with cash need that content to put through their pipes, whatever those pipes might be. The industry, as you say, has changed so much. Whats happened to the big movie star, michael . Are they more difficult to create this intermediation of the whole industry has changed the way content is delivered, the way stars are made and delivered to audiences. Whatever happened, it seems as though something has changed from the days prior where you had ten huge names and now theyre just harder to come by. I think its a different world today, scott, as we discussed in the days that i was in the Agency Business and building stars we had a Controlled Distribution system. There were barriers to entry. So you could pretty much with a flush economy, you could have young, talented people work with other talented people and plan ahead years in advance the kind of projects they were going to do. Today we live in an instantaneous world where you can put something on youtube and the next thing you turn around it has a million viewers. If you translate that into what used to be the old ratings on television, thats a giant impact on an instantaneous product. So everything today is easily accessible, and there is no barrier to distribution. The idea of Building Talent is very difficult in todays marketplace. It gets done. But for every Jennifer Lawrence who comes out as a young star upwardly mobile doing really amazing roles of all different kinds, you run into so many other talented people that dont have the ability to build their career the way we use it had to we used to do it 25 years ago. Young people weve never really quite heard of and do something very interesting and they become a rage on either instagram or on some social media platform and the next thing you know theyre youtube stars. You know stocks are our bread and butter but hard assets come into play in various conversations. Ive seen your Art Collection which is pretty amazing. You probably have a good take on whats happening in the art market right now amid suggestions its peaked. Whats your view on that . You know, the view is i dont have a view. I collect art because i love it. I was just looking at some old files and an article from the wall street journal fell out that was in the 1988 front page story has the art market peaked and i kind of laughed because i think at the end of the day theres a much wider interest in art than ever before. When i started collecting art, Art Galleries had 200, 300 people on their mailing list. Today they may have 10,000. There are thousands of people on thursday nights in chelsea and on saturdays running around l. A. Looking at art that have this newfound interest. If you look at the really great artists, theyre going to continue to do really well. When you look it at the strong work that they do as it continues through time, i think where you may be hearing a lot of information thats questionable, the younger artists and the speculation that went on and the art market is just like the stock market tends to correct itself and drive that kind of speculation out of the market every in certain cycles, and i think were going through one of those cycles right now where Young Artists that are putting out a lot of work and the paint gts are selling for astronomical sums of money, i think you will see that start to tone down. Great lichtenstein is a great lichtenstein. Theyre not replaceable. Theyre not going anywhere and they will stand the test of time. Michael, im glad the arm twisting worked. I appreciated the conversation on a whole, wide range of topics. Thanks so much for calling and spending time with us. Scott, congratulations. See you soon, thanks. Michael ovitz. Well ta move on. Earnings from google and amazon. Tyler mathison has a look at whats coming up. Coming up at the top of the hour, power lunch. 12 days to go until the election. New polls and new email leaks. How it is all playing out. Big oil earnings on deck. Is the worst over in the oil patch . Plus an exclusive with the ceo of bristolmyers. They Just Announced the major shakeup and the stock is flying. Halftime report returns. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley ebecause the ultimate expression of power is control. Get up to 5,000 customer cash on select 2016 models. See your lexus dealer. This is the new comfort food. And it starts with foster farms simply raised chicken. California grown with no antibiotics ever. Lets get comfortable with our food again. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Hi, everybody, welcome back to the Halftime Report. The u. S. Tenyear yield hitting 1. 85 , the highest level in nearly five months on the back, of course, of weaker than expected Economic Data released this morning. Anthony joins us. What do you make of this move higher today, anthony . This is a big move. The tenyear futures youll see they broke below the 200day moving average at 129. 14. If we could settle below that theres more room to the down side. 1. 87 to 1. 89 is the next resistance. I think the fed wont raise in november but is on the path to raising in december. Yields still continue to go higher. Bob, would you be a buyer at these levels . Yeah, i think im going to buy the ten year at these levels. You have to look at yield and hes right that break above 1. 79 is a breakout but there is a lot to get through. Were not even at the trailing thats when the fed hiked rates. About 197. So, theres room for it to go. But id rather take a shot at the long here. For more futures now, head to our website and today at 1 00 p. M. , were joined by top oil analyst, tom kloza and hell tell us why he thinks crude could be handcuffed to 50 for a very long time. Halftime report is back after this. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. I had to leave my happy home in exile oh which way should i go . Home is where i want to be home we love being green. So the nest learning thermostat connects to your phone, and learns what you like, to help you save energy. And thats something everyone can appreciate. Is it a professor who never stops being a student . Is it a caregiver determined to take care of her own . Or is it a lifetime of work that blazes the path to your passions . Your personal success takes a Financial Partner who values it as much as you do. Learn more at tiaa. Org is it because so many go after it the same way . Chasing after short term returns. Instead if getting caught up with the crowd, the Investment Managers at pgim take a long term view, teaming specialized active investing with riskmanagement rigor, to seek out global opportunities. We manage over a trillion dollars this way, attracting many of the worlds leading investors. Partner with pgim. The Global Investment management businesses of prudential i want to mention one more time today, iex is rubbing a benefit to fight als and theyve raised more than 38,000. If you want to help, go to wings over wall street. Org. Back to our conversation with john. Talk about some other ideas in the medical device space a. Its interest, kevin oleary was on sort of going long one of the etfs. You are short resmed . Start there. Resmed cures spleep apnea and the thing is, its of these companies zblsh talk about the commercial i hear. Its c pap, right . This company is valued from bigone era, where they had control of the market and there was no pressure on pricing and markets were expanding and now, youre look at something very different. Cms has come in and put pressure on this industry in a real way and said theyve rates to the Device Distributors that distribute your cpap things, if you were to get one, by 50 . This wasnt going to go through congress, then it did, so now, youre going to go to congress whos been looking at money to buy back stock. It trades at a multiple thats the Device Distributors are losing money on their cpap devices and that pressure is going to work back re srkmed and theres a real valuation coming. Exact sciences. Forgive me. Exact sciences. Yeah. This is the ad with the little box that dances on your toilet. Seen that one. Now you will. You will notice it next time. So, instead of getting a colin os ko pi, this one, you take a dump in a box and send it to a tuser and it saves you that trouble. So, its very appealing. New snl thing. You know, the joke in the office. The stock is a bag of, so, any way. The here is that the test doesnt in fact you know, give you the right answer. Kole lon os ko pi is preventati preventative. Thats all this test really tell yous and in addition, it has 10 o false negative. So, all of a sudden, it tells you dont worry, youre free and clear, but you might not be. So currently, the companys revenues are the same size as their losses. Theyre going to have to keep advertising to drive growth. The growth has been disappointing. Its back to 20. And now, its started to roll over out here. Lets call it got pulled back the last ten days. The subscription numbers we think are disappointing. You remain negative. We talked about tesla, which is its own sort of case, but you remain negative the autos. Whether its car max or auto nation. You think we have reached peak auto and everythings going to roll . At the end of the day, low rates drives people. I think this is such an important sector. Low rates drivers people to borrow more money because the carry cost is lower and borrowing money is nothing more than pulling future revenues into current periods. Whats so frightening about this cycle is here we are still at record low rates, and yet, youre starting to see the false tick up, especially in subprime, especially in Companies Like harley. Harley, which is stretched, has a cyclical problem. Has stuffed its channel problem. Borrowed money to buy. Its kind of o representative of everything wrong with this market and youre sitting here all of a sudden seeing this cycle turn and youre see lg could bott knot be more negative. Theyre shut doung f150 factories. Where the biggest margins are. I got to run. Thanks for being here. Does it for us. Power lunch starts now. Im michelle carusocabrera. New poll, new leak, just 11 days until the election. Whos counting . Were going to inside both campaigns straight ahead, plus, well hear exclusively from the Bristol Myers ceo. Forget terrorism, climate change, even death. A scary new sign of the times for america thats no laughing matter. Power lunch starts right now. Welcome to power lunch