Nothing the last couple of weeks . I think the last ten days, weve been talking about the distinction between having a longerterm portfolio and wanting and needing the exposure to technology and really not touching the technology in the longerterm portfolio. This is a shortterm trading event. I think today we are bouncing. I dont think its over for a lot of the volatility that were seeing in the fang names we could see more, if you want to selectively buy in your longerterm portfolio, im fine with that, and as far as getting out of amazon, longer term, i dont think thats the right thing to do. Okay, difficult to get inside the head of somebody whos not sitting here to answer the questions himself or herself but weiss, what does it say when a guy who runs a tech fund at a big place like t. Rowe price, whos beaten 99 of his peers over the last decade has said enoughs enough on amazon and says the following when sentiment lifts, that is when we usually take money off the table. That is hard to do it feels bad to sell when storks do well, says josh spencer and i think thats what separates the really good ones from the ones not so good, having this sell discipline. Its easy to buy something thats beaten up its always tougher to sell it when its doing so well. What it says to me somebody like him likely has to be fully invested or at least cant hold more than 10 cash at any point in time. It tells me hes found something thats cheaper theres still some value out there in technology. You can find a lot of things that are, quote unquote, cheaper than amazon. Thatll do better than amazon does he have stocks in his portfolio that can double . Amazon the not going to double from here. Its going to take a much longer time so i come back to tableau, frankly. The ceo of tableau was the individual who built a. W. West at amazon. Amazon controls 40 of the cloud. Thats the next place that you want to own so he says, look, i found three better places to be other than amazon and tesla, by the way, josh, which he unloaded for intuit, workday, and ultimate software but the statement this sale makes is what. Is it anything to be concerned about for the average investor whos holding some of these stocks that have done incredibly well, and saying maybe its time to heed the advice of a great fund manager and do the same so, he sold it to someone and we dont know who that is or many people, more likely and probably some indexes, too thats one number two, there were probably people saying the same thing the whole way up maybe 200 a share from now, someone else will make that statement. So i dont know that regular investors need to necessarily heed what any one fund manager is doing, even a super successful one but, to steves point, this is a stock thats made people a ton of money the bigger it gets, the harder its going to be to continue those gains on a percentage basis. It can still continue to go occupy, but this is now maybe the consensus long in all of growth stock investing maybe right alongside apple and google i dont think there are a ton of new bulls out there in the world that are all of a sudden going to discover amazon for the first time and take it substantially higher so its probably not a terrible idea for him to take a profit. But, you know, again, hes got a different agenda than any other investor in the market different time frame, different ideas about how long you want to hold the stock for different ideas about where they would rather redeploy the money. I think people need to think for themselves talk to the fund manager in front of us, erin brown. Is there a statement in this do you disagree with the move . I dont disagree with taking profit on the way up i think any type of trading discipline will tell you that you want to take profits and lock them in, as youre making money. That said, i wouldnt abandon the fang names now i think this is the place where youre actually seeing real growth youre also seeing real innovation and i think last weeks example of amazon buying whole foods tells you that there are areas of the economy that digital has not penetrated yet and thats where, i think, the growth communities lie. So i continue to like the tech sector i think you really want to overweight tech, but also overweight some of the value sectors in the economy but i think when you expect when you look at what parts of the economy are growing, tech is the place to be investing in right now. Okay, so, pete, erin has exactly what barrons says, right . The new barrons over the weekend says, will tech stocks keep rallying, and the answer emphatically they say is yes for the reasons that erin just laid out. After a tomb, the tech rally will resume. Its going to continue deliver strong Earnings Growth few concerns based on actual fundamentals and no, this is not 1999 those barrons guys listen to us a lot, right . We talk about the fundamentals, the fact, with the earnings. What have we seen the last couple of quarters, phenomenal facts and fundamentals when you look at whats been reported to us so far. So what has really changed i think when youre talking about this amazon and this move out of amazon into somewhere else, why not . I think every time i put on a trade, my goal is, all right, i have an up and a down. Where im going to get out of this and i use discipline to actually continue to do that. So amazon, maybe 1,000 was this mans number maybe in 1,000. You know what, this is where were going to take this off thats discipline in the market place and thats moving around it doesnt mean the fang names cant continue or the fang man as you and i have started to call some of these names add microsoft in there and nvidia in there and alibaba in there and suddenly youve got a very Interesting Group of names along there, scott but its about value and its about growth what has technology been giving us plenty of value, some with i e high pes, but also with lots of growth youve had a debate on whether its time to rebalance your portfolio and move out some of these overperforming or outperforming at the very least sectors like tech into those that have lagged go back into the financials. Keep that small cap thing working. The russell 2000 has done well. And those areas that have seemingly left behind for these sex area areas like fang and other parts of tech. Thats always the debate. And on the other side of the debate, what were not talking about is that active management has to outperform, right theyre down again their back is against the wall. Theyve lost so much assets to indexes and indexes keep going so theyve got to make bets about where the next double is going to be, not where the next amazon that every index have theyre going to outperform. This is almost like a 2 x 4 across the head, saying dont give up on these names just yet . And i dont think you should. If technology is growing, the economy is going to grow and this resembles the nifty fifty. Go back 50 years, before i was in the market, josh, if you go back 50 years, youll see you had a core group of stocks back them it was brand name consumer names its a great analogy. We are absolutely with all these acronyms and every day we have to change the acronym to add a new darling, we are 100 on our way to that, if price continues, by the way, to that nifty fifty kind of ethos, which is, it doesnt matter what you pay for a company, because this is going to be one of the company that leads in the future a very similar sentiment in the 60s and some other parallels, such as the onset of rate hikes and et cetera. But i think theres already a little bit of a rotation happening away from just owning tech and wanting to own medical tech and biotech and i want to talk about whats going on today, because we have a massive breakout happening president xbi, which is the equalweighted biotech index. As im speaking, this is occurring. We are now at the highest levels since december 2015. Its more than a year and a half ago. Now take a look at the ivb this is your largecap biotech 300 has been resistance for a long time. Looks like she wants to take that out here. If you can get above the 300 level, thats another massiv breakout even xlv taking out new highs. So people are looking for Growth Stocks that are not directly tied to the economy and that can grow regardless. Tech is obvious. But health care, also, fairly obvious. The aging population, around the world, china, japan, u. S. , europe, everyones going to want to spend more and more money to live longer and longer and have a happier, longer life and this is a sector thats got a secular story to it, just like the fangs or whatever were calling it this week lets stay on tech for a second well go to the other areas, as well microsoft, right a stock that you guys have mentioned, but not generally in the fang group Morgan Stanley raises the price target to 80 bucks they make a sizable case for why this stock can go higher strengthening secular positioning, a return to doubledigit epps maximum goeso 180. I recently have been aggressively going after microsoft. Anytime i think technology dips, i buy microsoft. I think microsoft for me right now in my hold sings is a Better Holding given the volatility im seeing in some of the fang names. Steven mentioned before managers having to go out and create some alpha. I think the alpha opportunity still right now when you look at tech is in moving out of some of these gogo growth names, going into some of the slower volatility tech names and financials lets not forget financials in this conversation, because the last two weeks, theyre performing well and candidly, i want to see the financials, right now in this moment, i want to be in a Morgan Stanley versus, i want to be in some of the gogo growth tech names. They need to do some catchup after out of the gates and the catchup started when they broke out of that 23 to 24range in the fxlf, and all of a sudden you see the leadership start to see Goldman Sachs jump back along with jpmorgan and citi and all of the names we talk about all the time you see that breakout. Since that time, its been moving up and up and up and towards those highs. Im glad you mentioned Goldman Sachs. You know why thank you, sir. Because Lloyd Blankfein, the ceo of Goldman Sachs, pete, will be on with jim cramer tonight. My favorite new account on twitter, by the way. Hes a heavy tweeter. Hes so good. A heavy tweeter so youve got to watch lloyd. If youre interested in investing anywhere in the banks, youve got to watch lloyd. Hes awesome. Speaking of ceos and speaking of microsoft, sachi nadella, one of those ceos, part of President Trumps American Technology council. Its a meeting at the white house today along with briothers eamon javers is live at the white house. This will happen late this afternoon . Were waiting for some of the ceos to arrive right now you were just talking about jeff bezos and showed that graphic of all the ceos that will be here jeff bezos, here in his capacity as the ceo of amazon and theyve been making some big moves lately, but he also owns the Washington Post which has been report ving very aggressively on President Trump and the Trump Administration so theres some subtext there. Also some of the biggest names in technology that will be here, including tim cook of apple, eric schmidt of google alphabet. And the challenge here for these two worlds that are colliding in this meeting today, theyre going to be talking about government i. T. , how to bring in ideas from the private sector, but youve got an administration that has been focusing on old economy jobs for lack of a better phrase. Theyre focusing on coal, oil, theyre talking about manufacturing plants and keeping those plants here in the United States and then youve got the tech sector, which is really focusing on automation, driverless cars, ways of pull iing technology out of the economy in many ways. Let me toss it here from the north lawn of the white house over to the Southwest Gate where Kayla Tausche has been on duty and shes monitoring arrivals over there kayla . Reporter well, eamon, its just about less than an hour before this meeting is officially slated to begin and we are seeing the ceos trickle in you mentioned eric schmidt of alphabet, the executive chairman we asked him what he and alphabet hope to get out of the meeting and what role he will play and he said, no interviews here we saw the ceo of qualcomm, a chip company that does the lions share of its operations in china and as you mentioned, eamon, there is going to be this dynamic where the ceosss and their companies will want to be talking about initiatives that are close to home to them. And the government wants to discuss how these companies can play a role in modernizes the governments system. Safra katz, the coceo of oracle arrived 10 00 a. M. , a couple of hours before this meeting is slated to begin, but well keep you posted a as they continue toy a arrive Kayla Tausche, thanks so much many morequiarquise names arifit the white house. Snap shares higher i love this story. Just because theres so many naysayers, they can continue do this, they dont do that, they cant compete with them. Okay i dont think anyone was a naysayer about snaps ability to get big brands to commit to the platform i think the naysaying is around the deceleration of user growth, and i dont think this does anything to change that. Its a great deal, a great headline im rooting for snap i dont want to see them not succeed. And time warner is a great partner. But can you tell me what the nfl did for twitter . Im at a loss. I dont know that this look, you have a lot of shorts in the name im not surprised to see a nice rip today on Something Like this i dont think that this changes anyones minds about how tenuous snaps position is right now but isnt it noteworthy in a conversation where youre talking about, you know, snap versus instagram this is a meaningful yes, this thing could end up like by the end of the day i dont know the details of the agreement. We dont know all the details. We dont know what its dependent upon there could be kickers in there that if they dont get the user grill to a certain level, that numbers not 100 maybe its zero or 50. Before the lockup, okay, when is that, august . Yes, coming up. Would you buy this stock ahead of the lockup . No, i wouldnt buy it after lockups over, unless you got really depressed for a trade somebodys buying it today. Good for them i think this as well as fridays announcements both show you that youre seeing more and more of these internet companies, these Startup Companies penetrate additional media forms, traditional, you know, every form of the economy is being really penetrated and disrupted. And i think you cant discount the ability for these companies to transform to be nimble, to be flexible, and to be able to take market share from Traditional Market players except when they disrupt each other. And you know, if you invest in this, de facto, youre saying we think theres going to be room for two or three of these types of platforms and instagrams not going to take the whole ball game and that would be ahistorical. When you look at the fang names we were just talking about earlier in the segment, what they have in common is their monopolists. And there isnt room for two there arent two ecommerce giants, theres one. There arent two search engines, theres one. And facebook has rapidly made itself the dominant social media platform and its tough to say theres going to be Instagram Stories and snap stories side by side. Snap may win, okay, but thats not that foregone conclusion and market value of over 10 billion is saying, they probably have it, its in the bag i dont think its that simple heres my equation, okay . The Department Store is to amazon as snap is to facebook. You mean your analogy you said equation its an equation. No, its actually an equation. Okay, sure. Lets find this sum so we can go to break. Hold on weve got a genius here. Okay, were going to break. Heres what else is coming up on the Halftime Report. Cleanup in aisle 3. Cleanup in the entire grocery aisle. Next up, wall street catches up to the mess in the sector left behind after the amazon whole foods deal plus, joshs surprise sell of a dow component see which stock he decided to dump and why before the break, dont miss mad money with jim cramer tonight at 6 00. The big guest, Goldman Sachs at tig om meynkfein thsonhtn adon at 6 00 eastern at fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. Over hereno ver here dog barking whoever threw it has to go get it. Not me somebody will get it. Is making it a reality is the hard part. From the b2 to the upcoming b21, Northrop Grumman stealth bombers give america an advantage in a turbulent world. And were looking for a few dreamers to join us. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. Become a villain again. Mmm. [ minion babble ] [ minions cheering ] [ minions sighing ] [ minions cheering ] [ minions booing ] okay minions, were going back to villainy. [ minions shouting ] so bad so good that im so bad. [ honking ] so, youre villains now . [ nervous laughter ] i mean, hello sweetie. Despicable me 3. Rated pg. For years, centurylink has been promising fast internet to small businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. We do business where you do business. Halftime report. The food fallout continuing today from the amazon whole foods megadeal our call of the day is two downgrades on Grocery Stores costco downgraded to hold and kroger downgraded to equal weight at Morgan Stanley super helpful, by the way well, i want to lets talk, pete lets take the costco one at deutsche they question whether its past its prime. R