In the dow specifically. Does it continue into this new quarter . Look, i think its news driven at this point. Were done with the quarter, so that means earnings are coming up. I think the markets okay, so im going to let steve take it up. Earnings could break it out for positive news in terms of congress not being at a stalemate. Ab septembsent that, if you loo the indices, the quarter was even better than the 6 for the s p or worse, so youve got to be careful in your selection, more so now than at any time over the last five, six years. Big surprises this quarter. If i would have told you at the beginning of the quarter that tech and health care were going to lead the way and financials were going to be one of the laggards even though it was up, you probably would have told me youre crazy. I agree thats surprising. I dont think however that thats necessarily the trend. I do think financials will regain their mojo. I thought health care was undervalued for far lopger than it should have been, so its probably going to back. But my lesson is one has to be disciplineded. Whether youre looking at sectors or stocks, if you have your buy target on a stock. Dont force it today because you see the markets up u and youve quot to get in. Just be patient. Youve got your buy target, stick with it. Same with the sell side. Be disciplined with this market. So, josh, check up 12 . Health care 8, discretionary, 8, financials, 3. Sure, but i want to focus on the last week that weve just been through because it is so, so important from a technical and internal standpoint. What happened here was probably as good as what you could have asked for. S p up 1 . Leading stock, resume leadership. Amazon added 20 billion more in market cap over the last five trading sessions. Iwm, russell, which was the trouble spot, up 2. 5 . This is what you needed to see to feel good about the we are not in a new trend that the existing one is still in tact. It could have gone the other day. You could have come in and questioned congresss ability. It was resilient as he can this week. Item on the golf course with teper sunday, my new way of making a living. As were looking at futures down and you come in monday and then the market all of a sudden brushes it off. We see that time and time again. We saw it with brexit. The Market Information moves so quickly. Gets discounted and debated before the event happens, its like yesterdays news. Not going to see that though if were not able to get taxes done, some infrastructure done. That will not be the case. The thing though is is earnings. Youre going to get that hot and heavy coming up an they bet r show up. I thought it was the best point made on the show. A couple of note bable good ones like ford and the actual data across the s p, no one field like they had to come out an drop a bomb on us. I felt like thats really interested because if you remember the prior pattern for this was the whole disappoint early and then be lowered expectations. Were not even playing that game this time around. On full display. Consumer congress is huge. But at that point do you need other things so start showing up. Meaningful extent, right, so the inreinvestment in the businesses, most businesses turns up new technology, new equipment. Its been deficient since weve turned the corner. Now, i think youre see iing it and its going the drive the market in my view, one o it have pillars of it. Next week from a macro point of view, you got the jobs report. Now, it would be surprising if you had a pad jobsz report at the stage f. You did, that would have strong implications for the fed and Interest Rates and the overall economy, which as we know is is tracking between 1 and 1. 5 for this quarter. I dont think one jobs report. Could be a one off. Moving average of jobs. You guys are right, but you know what, the market, if you have a weak jobs report, there will be some hand wringing on friday. Lets play it this way. So, the tech leads the way in this quarter. Its immune to many of the issues that have dragged some of the other sectors. These ceos in the valley are not hinging on every word that donald trump says. Theyre not hinging on what bull lard or stan fisher tell Steve Liesman necessarily. Those are the stocks that have outperformed. Nasdaq is up 10 . Its a weird time because were going to print less than 1 gdp growth for the fist quarter, but we had a number. 14 being a notable example. The markets saw through it that time. We have a weird season bable quirk in the First Quarter gdp number and when the other stats say no, that number is not true, we should look at the weight of evidence rather than just that. Nasdaq has had 21 record closed in the quarter. 100, best in five years. Is this the place where you want to continue to be . I think theres other places. Yes, you can be there, but josh, you mentioned the transports earlier. Basic materials as well. Now, i have an opinion here, scott, that we will get an infrastructure bill. Having said that opinion, i would like to see facts to back it up. I would like to see on the political talk shows this weekend and next week, what the actual pace and cadence is going to be of bills getting through congress. I hope they dont go back to health care. Are they going to do infrastructure . Youre going to get off the apple train . No, im not. The facebook train . No, but im not 100 tech. Its been a great part of the portfolio, im sticking with it. Im a value guy. This week, 73 of the s p 500 names were higher. 92 of the financials in the s p 500 were higher. So, there are set ups elsewhere outside of tech, then there are these tech stocks we never talk about. Ibm. If this stock can hold the recent lows and not give up, the recent gain, heres a name thats a 14 forward pe, an incredible uptrend, support from Berkshire Hathaway buying every dip. Its not the om one in there. I would put apple in there, cisco system, qualcomm. The nice thing about tech is is no matter what type of investor you are, theres a segment of tech for you. You want to be a growth momentum guy, netflix is right there for you, so the facebook and i know theres fundamentals as well. News alert with meg. Hey, scott, were looking at forward pharma, those shares plunged before being halted on a patent decision in a case its fighting on the multiple scler oasis drug. Biogen getting a little pop on that. In other patent news today, we just updated folks on acorda. That stock falling on a decision invalidating four of its patents. So a lot of negative patent news driving tech stocks today, all negative, except for biogen. Risks and rewards of theodse stocks. What about health care . Second best performer of the quarte quarter. Which i think surprised everybody. People get so negative. They get so despondent. Its all wash ed out so you buy for a trade. Energy, people have to be surprised at energy. Opec is going to make this deal. Would you expect oil b to be trading back into the 40s . P i dont think they will. Theres a paradigm shift. And the responsiveness of the shale oil producers. Its not like it takes two years to float a rig up to alaska. This is one month. One week you finish drills, wells that were drilled 90 . If you look at xle, your Large Cap Energy proxy, youve got a bullish meaning the low of this week was lower than last weeks by the high and were finishing is higher than last week. We ran out of sellers there and now, were precipitationing a higher number and thats indicative of a trend change. Weve had week after week after week of a lower close in the xle really since the beginning of the year. That pattern could be interrupteded, possibly coinciding with crude over 50. Got over 50 yesterday. I know we veered into energy, but how about health care . Were so worried about a president ial tweet. Then this interview in time magazine, many, many weeks ago. Im going to attack drug prices, theyre getting away with murder, whatever he said. Health care, i think the plan does come back. If the thing about trump is he could switch the middle and bring the democrats into the fold. I think that would be the smart move. Disenfranchise the far right, socalled freedom caucus. Thats whats holding the market, too. That would be very positive. That would eradicate gridlock. With the market, with the exception of tech, you always get an opportunity with sector while the market has done nothing since february 21st, its flat, the rotations underneath. Airlines down 20 . Steel stocks down 20 . Some retailers down 25 . The largest decliners, five of the six, are all retail. The way it cycles underneath except for tech, which seems to be you just have to pick your sectors carefully. Its been that way. Julia boorstin, speaking of tech, has another news alert. Hi hi, julia. Thats right. Snap just announcing its launching a search for stories. Now allowing users to search publicly shared snaps. There are over 1 million stories on snap chat as the company used new Artificial Intelligence to cure rate snap that is 158 daily users share. Snap doesnt mention anything about ad, but this opens the door to new snaps that could be severed alopg with the results. Shares are up over half a percent. Up over 30 from the ipo price of 17 a share. Thanks so much. Josh, you alluded to the only thing i could think of is that snap and ib sinsta and zuckerbeg and speeg l are going to be going back and forth this entire way. The only thing that i can think of would be the user anduin for young people sick of being on the same networks with their parents, you had to know their handle in order to connect with them. So if youre now going to change that, and make peoples stories searchable, this could be one more thing that pushes ma len yals to say maybe snap is not quite the garden of eden of privacy that i expected and i really think on the other end of that, instagram is just going to continue to kick butt. Of course, were not talking about peoples and grandparents joining to find their kids. Its indecypherable for people over 40. I think a lot of the appeal of it could come along with it. Theres an underlying story here, you alluded to it with ibm. Jewulia mentioned i got your snap by the way last night. Super hot. Funniest thing ive heard all week, by the way. Whether telemetry in cars, youre going to need Artificial Intelligence to sift through this. Same in medicine. If youre an oncologist, too much information for you to sit there. Whos at the vanguard of Artificial Intelligence is ibm. Not so sure sflchlt which part . Vanguard. Its highly competitive. Watson supercompeter, that bit of Artificial Intelligence is the vanguard. You can beat watson in jeopardy now . Is that how youre rolling now . Judging by what youve told me lately, he could beat you on the golf course, too. Theyre challenged by other tech businesses. Artificial intelligence. Getting, making money on that. Is going to be challenging. I got burned on a it is worth a look and josh, youre right to bring it up. One area of tech, we got to get, chips are going their thing once again today. Ahead of most of the tech sector. Ive talked about amd, im in. Huge move today. 4 spike. 400 . This is like have been a breakout thats stopped in february, consolidating, looks like it wants to take out the upper end of the range. Sets up for disappointment. That was amd. Just getting started. Heres what else is coming up. Do you want to buy the rentals . The rental car stocks big time in the last six months. Hertz down 56 . Avis up 14 . Are these names worth a test drive . Plus, our traders calls of the quarter. See where they hit the target and misseded the mark. If you listen to Jim Levinthal and bought cisco on february 2nd, youd be up 20 . More call, stocks and trades when the Halftime Report are back in two minutes. 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. Experience exceptional offers on sales event is here. Our most refined models ever. Get up to 2,500 customer cash on select 2017 models for these terms. Experience amazing at your lexus dealer. Back at post nine in a week when the future of stock picking has been hotly debated, one wall street firm out today with a list of names it thinks can benefit in the weeks ahead from both man and machine. Bernstein listing 11 stocks. The criteria are stocks attractive based on quantity taiftive bases, not too crowded and where fund u mentals play into the story, to melds both man and machine and at the top of their list is apple. Which is up 24 . You want to scream, Biggest Company on earth. Really under the radar. Not too crowded. What i take from this, weve seen the announcements over the last couple of weeks and fid fidelity is going more quantity. Bernstein is like the quintessential Value Research house and now, theyre saying wait its changing a bit. All due respect to bernstein, do you know who invented the screen . Literally ben graham 100 years ago, so lets not act like this is some man melding with machine cyber netting. Ive been using it since i got in the business. What price to book. What pe. The roe. Thats quantitative, right . This is how you do it. We did apple, american experres delta, yum brands, motorola, you can look at the performance over six months for these stocks. Theyre all winners. Obviously yum is down a couple of percentage point, but you have winners over the last six months, can they stay in that category if you meld fundamentals and quantitative analysis. I think the key is you have to own all of them. The thing thats going to dictate this is how youre waiting these and how long do you wait in a stock falls out of the criteria before you get out of it. So almost do a technical overlaw. Ill by it. These are good stocks. Then i want a sell discipline and reason to replace. You can say this makes this, this doesnt. Yum, too controversial. Didnt make a lot of sense. Take a look at the underperformer. Apple, yes, it makes sense. American express, yes, it makes sense. Hp, too soon so tell. It was up marginally. Kudos for thinking out of the box and moving weight from their value based strategies. Look, theyd be the first to say its not a guarantee by any stretch of the imagination. They point out that five out of the eight previous picks beat the market when the report was last published. My question would be to what degree is this quaunts and to degree of the Decision Making progress is a flesh and blood person making a subjective decision on the company. We run money and rules based strategies like all the time. We opt for 100 rules based. I want i dont the subjective pl layered on to the quaunt because you could have a guy mess it up by saying yum is too controversial. Its already reflected in the price and you miss out on a home run. I think part of the point were trying to figure out, too, is whether just traditional if you want to call it that, put it in quotes, stock picking baseded on fundamentals alone. Is that dead . No. This is just probably enough. The its wh its what i do. Doesnt mean i just slavishly look at the fundamentals. Its what i love doing. You mention ben graham. Whos got a Business Model with a mode around it. Now yourks overlay that. Anyone, whatever their stripe is, should look at other ways of doing this. So i always look at charts. Doesnt mean i base my decision on the chart, but i look at it and see is this an up or down trend. This is a quantitative screen of fundamentals. If these are published, things like price to book, earnings yield, whatever it is, do we think those are. This is not quantitative. That definition has been stretched. Those strategies are hundreds and thousands of stocks trading against one another. May be Equities Trading against currency. Maybe bonds trading against currency and they trade and keep trading tabd the formulas, renaissance rewrites the affordables. Youre describing an al gor rhythm. They are quantitative strategies. Right. And thats the way the frequency with which a program trades does not determine whether or not its quantitativquantitative. Its the inputs. Theyre using the inputs, whatever they are, they call themselves also quantitative str strategies. Scotts going to blow his brains out. Can we get a shot on scotts face . Were done. Next. On the Halftime Report, the quarterly report. See which stock calls the traders nail and regret. Josh, finish this up. Well be right back after this. Yes . Please repeat the objective. Thrivent mutual funds. Managed by humans, not robots. Before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds. Com. 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Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading Companies Lead with digital. Ive yoened facebook and google and both are great. One of the cheapest napes in the dow. Valuation is so forgiving. Whats the downside . Today is the last trade dag of the First Quarter. All this week, weve been looking back at some of the traders m