It is starting to develop a centric eye wall, which means it is close to that eye wall replacement, which means we could see temporary weakening as we head through the next hour or so but after that, it is likely that will intensely, rapidly intensify and continue to work its way toward the gulf coast, as a category 3 storm, as we head through the rest of your friday, expected to make landfall later this evening. So well show you here, its exact track, as it continues to track really to the north of Corpus Christi, is where we are expecting that heaviest impact as a category 3 storm, before it swoops down, back into the gulf of mexico, as a Tropical Storm early next week. So heres what were tracking in terms of rainfall, because weve been talking about it all day, flooding will be the primary threat, as we head through the next couple of days. So here are those impacts again. A major impact for wind. This will be a category 3 hurricane. Winds in excess of 111 miles per hour, storm surge also a major concern, that storm surge between 6 and at 12 feet the rainfall, expecting anywhere from 15 to 25 inches of rain locally, up to 35 inches of rain which is, of course, a threat as we track those types of storms lets talk about the last time we saw a storm like this it will be the fist major hurricane like this in over 20 years to make landfall in the united states. The first time in over 47 years texas has seen a storm of this magnitude. The landfall for Corpus Christi, expected between 10 00 p. M. And 2 00 a. M so this is going to move in overnight, increasing the threat for that danger. The worst of this storm surge damage expected to start around 8 00 this evening, and last through 4 00 in the morning. So thats kind of a timeline of when were expecting to see the worst of Hurricane Harvey. Well have much more coming up here in just a bit all right, kaitlin, well see you soon now lets get down to Corpus Christi, texas Jackie Deangelis is there and shes waiting for harvey to move in jackie reporter good afternoon, guys well, Corpus Christi is one cog in the wheel youve got five refineries here, a little less than a Million Barrels per day of capacity, and its about 4 of overall u. S. Refining capacity. The larger gulf coast, were talking about 35 refineries. 9 Million Barrels a day, and 46 of the Refining Capacity of the nation so what happens here over the next few days is really going to be key when it comes to the Energy Markets some of the refineries here, two of them have shut down already, as a precautionary measure the other three have said theyre monitoring it. They may follow suit later on today, as this storm definitely gains some steam but this is a bigger story than even just the refineries here. Its also about the residents, the businesses, everything thats happening in Corpus Christi. Weve had an opportunity to talk to some people who have said theyre actually staying here. They may not have the finances to necessarily leave, they may not be taking it so seriously or they think they can just stock up on food and hunker down one woman told us that she went to the grocery store, all of the different stores, the walmarts, the corner stores, everything, the shelves are empty. So people have either made their plan to stay and probably are indoors by now, or theyve hit the road a couple of people said, were going to wait it out a little bit longer but i can tell you from being here, from the Early Morning hours, these winds are really starting to pick up. And you can see, were standing on the beach, the water levels are rising the wind is pushing the water around, the waves are getting rougher. So some of the expectations, some of the predictions of what people thought we would see today are starting to come true at this point. One couple that we talked to earlier was literally on the beach with shovels they were digging the sand and putting it in bags they were taking it home they were going to reinforce their doors and tape their windows to hunker down and brace for this storm whats interesting about this one is that its not necessarily going to just hit tonight or tomorrow morning and be over its going to hover, potentially for the next three days. And thats where a lot of the intensity and flooding problems could come, as well. So were going to be monitoring this for you, guys, throughout the rest of the day. And let you know how it goes down here in Corpus Christi. Back to you. All right jackie, thank you, be safe well see you soon Michael Brown served under president bush as fema chief during katrina he was with us live on the newsline and joins us right now. Michael, thank you for joining us obviously, what have we learned from katrina what are we going to do better now that we failed at the last time well, before i answer that, let me go back to that last report i was just listening to if you listen to that last report, we apparently havent learned anything from hurricane katrina, because your reporter was talking about people saying, hey, i cant get any food or im not going to evacuate or im going to weather this out. And i think part of that is because its been 12 years since weve had a major storm hit the gulf coast so people arent aware that its not necessarily the wind pap category 2 or 3, depending on the kind of structure you have, where you live, you can probably withstand that but im more concerned about the fact that all of the weather reports and all of the things ive looked at online in terms of the National Hurricane center indicate that this may turn out to be more like Tropical Storm allison, which hit houston back in 2001. That was probably one of the top, i would probably put it the top five most expensive and damaging storms, and it was a Tropical Storm and thats because of the catastrophic flooding. Everyones predicting, all the meteorologists, everyone ive looked at are predicting that in some areas, you know, from Corpus Christi to almost shreveport, upwards of 36 to 40 inches of rain now, if you know anything about houston weather, its been raining most of the summer anyway, so the grounds already saturated. So im more concerned about true catastrophic flooding from 40 inches of rain so people that think they can withstand the winds, ill give them the benefit of the doubt. That may be true but they c what they cant withstand is a 6 to 12foot storm surge or catastrophic flooding from 40 inches of rain short answer to your question, after listening to that story, im not sure we learned anything we had more than 70,000 homes damaged, more than 100,000 cars were destroyed in hurricane allison. Is the trump administration, michael, from what you know, on the case is the government acting proactively here yes, brock long, the current fema administrator, was my representative for the National Hurricane center during my tenure, and then he went on the to be the state emergency manager in alabama brock long understands the relationship between federal, state, and local government. So as long as he has the ear of the president , i think were in good shape because brock gets it, brock knows when and how to ask for the things from the governors. He understands the governor, that Governor Abbotts in charge here i guarantee you hes sitting down with Governor Abbott and his emergency manager and asking the very simple question, what can you do and what cant you do, if its the things that you cant do, let me see if i can take care of those Michael Brown, thank you for joining us on short notice tonight news line. Be safe. You bet thank you all right joining us now for the halftime hour today, jim lebenthal, josh brown, steven weiss, and josh seecheng obviously, Hurricane Harvey is a big story. Its threatening oil, threatening gas, threatening infrastructures, and more importantly, it is threatening lives. Cnbc contributor jeff killberg also joining the conversation. Hes live in the commodity pits at the chicago merck jeff, obviously, this is a serious storm, people are still in harms way. This is about life and death, first and foremost but what are you guys talking about in chicago, about the possible impact to the commodities complex from the storm . Well, the storm has certainly put a bit in our guess we started the conversation on wednesday and have seen additionaled ed bbidding in ga. You talk about anadarko, shell, exxonmobil properly evacuating employees as theyre going to be reducing that production. Right now the focus, the oil is a little bit of a confusion. It was actually down 2 while gas was up 2 to 3 but right now it seems like the impact is going to be grow and grow and a category 3 is going to make the longevity of the storm last a lot longer than i think anticipated. Yeah, and the with rain, theres not just the possibility, jeff, of pipelines and refineries that we have talked about, but also, theres some new concerns, barclays, i believe, has a note out about the onshore damage, eagle ford shale, which is really in southeast or southwestern texas, about 1. 4 Million Barrels a day in production there. Even farther north in the permian, we could see rain shutting down some of those operations what could that do to crude oil . Well, i think that really is going to be impactful on crude oil. Theyre talking about affecting nearly 3 Million Barrels a day that water, like we talked about, if we get up to 40 inches, theres nowhere for it to be pumped when you see the refinery shut down, thats reactionary component to crude Oil Crude Oil has been stuck in a range from 46 to 50. But i think it continues to play that range i think energy in the refineries, by and large, we have seen energy beat up this year, down about 16 if you look at the xle i think some of these specific names like a valero or a schlumberger, thats an opportunity to buy some great names at a deep discount, as theres a lot of emotion coming into the trade here as we have seen harvey grow and grow. Jeff, its jim lebenthal. Im looking at this price action youve been around, ive been around a while, too. I think back to katrina or hurricane ike, something that really affected Oil Production in the u. S. And spiked oil prices higher. Youre definitely not seeing that here. What this is telling me is that the swing producer in the u. S. 10, 12 years ago, it used to be gulf of mexico, deepwater, and those rigs either got turned off or got damaged badly you probably remember thunder horse during katrina, a huge rig tilting to the side. Nowadays, whos the swing producer its north dakota, its pennsylvania notwithstanding what you said about eagle ford, what im saying is our production is so distributed across the country now, dont you think that these events of a hurricane hitting texas are now a nonevent for the oil sector i would not go as far as to say a nonevent. They still are impactful, but fracking has changed the game. Unequi u u unegivably changed the game this really helped rebalance, because weve been fighting supply and command for quite some time. Domestically, this may really help balance the supply from what youre talking about from north dakota all the way down to the gulf coast hey, jeff killberg, well let you get back to work jeff, thank you for joining us. Appreciate it. Rob, lets talk about oil. Oil is up, but its not up that much are you surprised . Im not surprised, but i want to get back to something that they were talking about a little earlier, as it relates to the storm. And certainly, our hearts go out to everybody facing the storm. We hope they avoid disaster. But from a business and investment perspective, i think what it does is it underscores how vital and Important Energy infrastructure, diversified across the country, is going to be for our economy sk and we still think one of the best ways to get involved in energy today is through the mlp sector this is an area where you get paid to wait youre going to play the export market for natural gas youre going to play the infrastructure build out you have yields that are 200 basis points, essentially, above their average tenyear spread. You can get an 8 coupon and get paid to wait youre talking about pipelines . Yeah, midstream pipelines like, without getting into names, im referencing Energy Transfer partners, only because it is run by kelsi warren, who will be on power lunch today so well talk aboutli pipelines youre also seeing some of the biggest and smartest investors like blackstone coming into the space with an acquisition of an mlp manager a few weeks ago let me push back on you on this i own Embridge Energy partners these thing just got hammered in 2015 when oil came down by more than 50 they havent recovered that. You and i would probably both say the same thing theyre toll takers, theyre supposed to be dependent on the volume of flow going through their pipelines. Do you still believe that . Im still in it but theres a question hanging out there of, is that really the case . These things have not roecovered anywhere near the price of oil first of all, they had a big recovery and it sold off the reason for that is is i think its the best way to play the energy sector. Because these companies have been cleaned up from a debt standpoint, as has the industry, right . Private equity keeps putting money in theyve collapsed some of the structures that were, i would say, arduous and difficult for investors. But heres why i think they havent recovered and why i think its an opportunity. Its because you had a relatively limited segment of the investor public retail, because of the nature of the stocks the k1s the k1s, that would play it. And they have been burned and they are scared, so theyre not going in for a long time theyve got long memories. However let me put this back to you guys let me just finish. Ho however, for those who can think forward and looking at them as an industry that has been cleaned up and is in much better financial shape, if you go into where youre suggesting, the midstream as opposed to at the well head, you dont have the risk you used to have. So i think the possibility for a shortterm trade but this is really a longer term secular investment theme for us. Weve been buying them for years, always have been focused on buying when theres a dislocation. Theres a dislocation between fundamental distribution growth and whats happening to the price of the stocks. You put your finger on a key element there. Fundamental distribution growth. You have to believe in that in order to be in this space. Im in it with one name, which is, im in, but im not all in and the reason is is because im not convinced that the sector earns its so hold on right there. You give me another sector out there that has the distribution coverage, theyre paying it out, and its growing at about 9 that means the implied return, i dont care where youre looking in the investment space, what has an implied return of 16 nothing else rob, im differing guys, ive got to say, the elarian etn, which is the biggest etf pipeline industry, Jpmorgan Chase product, down 17 in six months. Are you using that weakness . Youd be using weakness to add to 100 . In fact, all this week ive been a buy over mlps, more directly, the securities even if oil remains at 45 to 50 bucks a barrel. What if it does you wouldnt be concerned . Natural gas . To his point a little earlier, theoretically, and again, this has to be proven a little bit, its about throughput, right . And i think youre going to see improved throughput and ultimately thats going to flow down to the price of the equities theres been no recovery. And if you look at the mlp in x index, its about 275 right now. Theres been no recovery at all. It was up 100 last year. Hold on, yeah, thats fine. But it collapsed to a greater degree theres been no recovery but there are opportunities to buy let me finish you would have to be pretty delusional to look at these things as bonds. Essentially, theyre equities with high coupons and thats fine but trying to earn an 8 yield while having your money cut in half, congratulations. Maybe youll get a 16 yield, but more likely, not because not only are these commodity plays, whether they want to call themselves tollbooths or not is something else, you can get roughly the same performance with regular Energy Stocks without the k1 lunacy and when you actually look at the capital structure beyond the top five mlps, which i dont like, by the way, sector wide, these companies are reliant on cheap credit they happen to have been able to get it for most of the last ten years. It is not a fate acomply that that will be the condition in the bond market going forward. And you have a lot of these companies that are returning Investor Capital and people are saying, oh, its a distribution, youre getting your own money back. So highly leveraged, not necessarily earning their cost of capital, huge Commodity Exposure, annoying tax situation that your accountants will hate. Can you earn a premium return on these . Absolutely, but lets not call them bonds i dont think nobody nobody called them bonds at all. Tollbooth implies its an income nobody nobody called them bonds. It doesnt imply that nobody called them bonds. So in terms of the kmcommodi exposure, first of all, im not buying energy at all my view, if i were buying it, this is where i would be buying it i have a different view. In terms of Commodity Exposure, its there but if youre in the midstream, the Commodity Exposure may not be there because they still have contracts with except that the price has collapsed and dividends get caught when theres a problem with the commodity this is not my opinion, we literally watched it happen. Okay. And i can tell you that im i can tell you that i bought them and i was very visible, and we put a number of our no ones arguing you congratulations, no ones saying you cant do that i think josh is highlighting the risk is there. The volatility of the asset if it dropped 25 with an 8 coupon, thats not a good thing. But my point is, guaranteed contracts and we went through every Single Company we went through every one of their customers, the creditworthiness if youre just coming in there as a casual investor, rather than doing all the im going to support what youre saying. Its easy to be deluded quick comment historically dominated by individual investors, so you have high correlations between mlps, because the individual Investment Community is not distinguishing between what is great and what is not great. Theyre kind of selling the sector josh absolutely right, too that theyre fundamentally dependent on financing theyre in the short run, dependent on Energy Prices potentially exposed to rising rates. But fundamentally attractively valued and now is the time to fair point. Okay, you laid out the risks clearly, rob, but youre willing to accept those risks. One final point, thats why you dont buy the alearian i just brought that up because its heavily i know. People look at that and say this is mlps, its not. Like an enbridge, like jim likes. Still an enterprise products. Im not saying they dont go up. Im saying that a portfolio works without them and just a reminder, guys, weve got an exclusive interview with billionaire kelsi warren on power lunch. He runs Energy Transfer partners so tune in skpe wiand we might address heres whats coming up on the Halftime Report. Much more on Hurricane Harvey, as this potentially recordbreaking storm zeros in on the texas coast and a lot of this countrys Energy Infrastructure plus, janet yellen giving a major marketmoving speech at the fed conference in jackson hole, wyoming. And a big, bold call on twitter. The analyst is with us live for todays call of the day accountday. The Halftime Report will be back in two minutes. And why a Pro Football Team chose us to deliver fiberenabled broadband to more than 65,000 fans. And why a leading car brand counts on us to keep their Dealer Network streamlined and nimble. Businesses count on communication, and communication counts on centurylink. 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 welcome back twitter under pressure again today. It was downgraded to hold from buy at jeffries. Analysts simply say there are better social place elsewhere. It is your call of the day brent fills is joining us live from San Francisco one of the key parts of your downgrade is that you say that advertisers are simply not getting their roi, their return on investment, maybe that they had hoped for or that they used to get what are you hearing from advertisers about their use of twitter as a platform . Thanks for having me. We launched our internet playbook today, 200 pages. Advertisers right now are just finding more proven roi with facebook and google. And we dont dispute twitters global reach and the user base is huge, but users do not equal revenue. The revenue has been falling, the rpus have been falling management has obviously gone through a major reshuffle. Theres some encouraging science of new management that theyve added, ned siegel, we worked with intuit, did a fantastic job. So, you know, there are steps that theyre trying to place to get the foundation settled in, but our job is to help our investors find just better fundamental areas and better stocks and we think that facebook and google and potentially snap actually offer better opportunities from current levels is it a zero sum game, though, brent . Is it advertisers like Procter Gamble saying, well, were going to go on facebook or twitter cant they do both they want they want multiple platforms its i covered software for 20 years they want on microsoft and they want to be on oracle its the same thing here but what they dont want is every time advertisers we speak with go back to twitters platform, they dont get the roi and then they turn off and they just stick with the proven categories. So, you know, we believe that in many ways, in the conversations weve had recently that snap has actually seen better engagement than twitter and we also think when video takes off, and it is taking off, that snaps just a better platform for video so, we again, i think if you separate proven roi, facebook and google, if you separate experimental, you have you have snap and twitter. And we think snap is actually, in many ways, catching the hearts and minds of advertisers in a little bit way than twitter is right now hey, brad, its josh brown. I agree with what you said and i think twitters problem, not just being compared to facebook and furthermore, instagram, which is like an impossible comp for anyone, given how good they are, twitter just doesnt have the data on your lifestyle that facebook and instagram have and potentially snap could have. And they never will. Between anonymous accounts and the very topheavy nature of a handful of celebrities and Media Companies that a lot of people follow and not much else, they dont have that kind of onetoone engagement and they dont have the personal data and thats what valuable to the advertisers. So my question is, can that be fixed . Or is twitter really going to be like driving past billboards on the highway, and thats the ad model, and it is what it is, its never going to be indepth. I mean, never say never i think they have the chance to pull this off. But we dont have the signs to your point, you make a great point. I went fly fishing with my family and started following fly fishing ads on instagram or pictures of fly fisherman and all of a sudden i started to see a lot of merchandise marketed to me on instagram about fly fishing. Right and i just have never seen that and so, ive actually engaged. Ive bought things through the instagram platform so have i through that readthrough, so we dont see it yet. Doesnt mean they couldnt make that transition. And twitter stock is down right now, about 0. 2 . Brent thill, jeffries, thank you very much. Lets get a trade update from steven weiss who bought snap as a trade earlier this week, but now youre out not completely. Im not 90 out. It was a great trade over 15, sold the rest this morning at 14. 70 to 14. 72. I made money quicker than i thought i would, so you dont get greedy in things like this you move your stops up, but i kept 10 , which is the house money, basically i still think theres potentially some upside, but ill be quick to pull the trigger. Okay, steven, thank you Pete Najarian seeing some unusual activity in a major mining name. Hes going to show us which way the stock is likely to move, coming up. But first, lets get your s p 500 sector check on this friday and we are seeing every sector in the s p except for Technology Higher technology, though, very fractionally down. The s p is up about 0. 3 overall, the dow up 53, and we are ba rhtft ts. Ckig aerhi and welcome back to the Halftime Report. Let us get katelyn the National Hurricane center has been seeing those bands all morning long, you can see it on our looping radar, continuing to work its way towards the texas gulf coast, bringing in very locally heavy rain and gusty winds. That eye wall is still well to the south and east, but its going to continue to track closer to the coast, as we head through the day today. We do want to shift focus and show you our High Resolution satellite imagery here its also looping since about 10 00 this morning, showing something rather unique. You can see the welldefined eye wall becomes a little bit cloud covered over the past couple of hours. Thats because its indicative of eye wall replacement. This generally happens when you have two eye walls coming together and replacing one another. But once that happens, the eye wall comes back stronger than ever so we are still expecting Hurricane Harvey to upgrade to a category 3 storm before making landfall later this evening. So lets time out the track here, as we head toward the overnight hours, when it will make landfall in texas you can see, upgraded to a category 3 hurricane, later this evening, making landfall, really, overnight, right around the time of high tide. That is only going to contribute to the flooding threat, as we head through the evening hours and into the weekend you can see, once we get to saturday, it does weaken to a category 1 storm, upon making landfall, but then kind of swoops back into the gulf of mexico as a Tropical Storm, before making its way right between houston and lake charles by the middle of next week lets talk numbers lets talk about the impact that we can expect to see over the next couple of days. Because this is really a triple threat storm we have the rainfall, the surge, and the wind rainfall expected anywhere from 15 to 25 minchinches, locally u 35 inches. Add on top a storm surge between 6 and 12 feet, we are talking about catastrophic flooding, not just as the storm makes landfall, but in the upcoming days once it works its way into the texas gulf coast, its really going to sit there and churn through the weekend, pulling in some of that warm, gulf moisture and continue to dump rain across much of texas. And the winds also in excess of 111 miles per hour, as this will make landfall, again, as a category 3 storm guys, thats the latest on Hurricane Harvey kaitlyn mcgrath, thank you. Lets send it down to mike seidel live in port lavaca, texas. Reporter good morning. The wind is ramping up were in some of these tropical squalls. The outer bands, winds now gusting 30 miles per hour. We have had special marine warnings, concerns about waterspouts moving onshore we have also had a couple of tornado warnings the next county up in Matagorda County these tend to be quick hitters when you talk about tropical weather, not the large tornadoes we deal with in Severe Weather season in the midwest and plains and down south in the springtime the waves, too, the white caps, the water rolling in into the sea oats, the grass. This is texas 35, traffic going the other way, away from the camera is heading towards houston. There is going to be a curfew here in the town of port lavaca, a city of 12,500, that kicks in at noon local time the Evacuation Order went out late hormorning. Were about 25 to 30 miles inland from the gulf, but theres nothing to stop the wind and the water rise weve got about a 5 or 6foot wall here. Our hotel is build up. They built this hotel six years ago and keeping hurricanes in mind, this is a steel and block and concrete structure so we feel very safe here. In fact, on the other side of the building, we are on the downward side, so youre out in front and you dont even get wet or dont even really feel any wind so this is a pretty safe facility for riding out this hurricane. Again, its going to intensify a little bit more, expected to landfall late tonight or tomorrow morning or saturday morning. And probably coming in just south of here. So were going to be on the north side thats where youll have the highest surge issues, the highest risk of tornadoes and everybody is going to get the rain, brian, because this thing is going to slow down, throw on its brakes both models, the american and european models keep it just meandering and ferrstering in te area what that means is a lot of rainfall, 2 to 3 feet total. So inland areas that dont get the surge and coastal issues will have prolific amounts of rain this is going to be catastrophic from corpus inland to san antonio, austin, in the bullseye, too, for heavy rain, all the way up to houston. Brian, well be here as long as we can stay safe here and then well head to higher ground. Back to you. Mike seidel, thank you, and please do stay safe. Lets get to sue herrera with your latest headlines. Sue . Thanks, brian heres whats happening at this hour of course, with harvey about to make landfall in texas, some of that states tiniest residents are being moved to safer ground. Using specialized planes, hospital workers in Corpus Christi moved newborns, some weighing just a pound, from their nicu to safer places. The president of catlonia and mayor of barcelona were among the patrons paying tribute. Charlottesville has hired tim heapy to lead an independent review of that citys response to the recent farright rallies that led to widespread violence and the death of a protester the announcement follows an angry town hall meeting, where residents voiced frustration over that citys handling of the matter and the new York State Fair held a flagraising ceremony today to kick off its pride day. That event includes concerts and a parade new york is the nations only state fair to host its own pride day. You are up to date thats the news update this hour the Halftime Report is back in two minutes time. Well see you hour on power lunch. Heres whats coming up on this program. Well have the very latest on Hurricane Harvey and a look at how it could impact your money, as well. Plus, a rare interview with billionaire kelcy warren, talk about the future of energy and his battle for the dakota pipeline and we are live at the new 1. 5 billion Atlanta Falcons stadium. We are speaking with the mayor, the mercedesbenz ceo and former running back, wark dunn, going to give you a really cool inside look at that expensive new facility it does look spectacular well show you that. The Halftime Report resumes right after this where to get in. Where to get out. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. You myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Theextreme risk of burstd a pipes and water damage. Y. Soon, Insurance Companies wont pay for damages. That is, not if they can help prevent damages from happening in the first place. At cognizant, were turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. Get ready, because were helping leading companies see it and see it throughwith digital. Welcome back to the Halftime Report. Pete najarian joining us now hes watching the Options Market out of minneapolis, minnesota, and hes found some unusual activity, pete, whereabouts . Well, i have. And you know, the material space has been absolutely on fire, lately, brian, as you know and i know you cover this very, very closely, but take a look at whats been going on in names like freeport mcmoran. And today, bhb billiton, thats the name thats hitting our screens. This is the stock thats had an absolutely incredible performance already. And i think theres even more to go if you go back and look at a tenyear chart of php, you have a stock that has plenty of room to break out to the upside and Jeff Gundlach was just talking about, there is room in many of these material names, he doesnt feel like that were covering it enough, we are on halftime, because weve been talking about all of this unusual activity the december 45 calls, very, very active, 7,000 of those were purchase today, 1. 12 all the way up to 1. 20. That gives plenty of time. Stock was trading around 72. 40 during that trade. There is a lot of enthusiasm and continues to be in these industrial metals. Hey, whats your Holding Period for this one . Im out there to december im in the exact same options. I actually love what im seeing here it just sort of solidifies what were thinking right now in the materials space. Weve seen that growth, weve seen that strengthen weve seen many of these names move to the upside i think this one has plenty of room, when you look at where its trading and did not have to dilute at the bottom like so many others, this is a stock that has plenty of power behind it right now Pete Najarian, certainly a spirit in the materials world. Pete, thank you very much. Well, the markets are higher at this hour the dow and the s p 500 on track to break two weeklong losing streaks. Markets reacting today from commentary from fed chair janet yellen at the big jackson hole symposium as well as from gary cohn on the push for tax reform. Sol were seeing a move in the markets. The dow is up 56 not a big move up. The nasdaq, by the way, which has undergone a fourweek losing streak, down a little bit right now, but should end the week, unless we see a reversal, higher, and that would snap a fourweeklong losing streak guys, macro view, on the markets. Im going to talk about jackson hole, because weve entered central banker season right now, and weve got a lot of news that can come out of this one, yellen speaking today, about the health of the economy and the benefits of Regulatory Reform thats in complete dichotomy with what were hearing out of the white house on regulation. You also have mario draghi speaking later today, and our suspicion is and weve unwound some of our euro longs, as it relates to this, not as it relates today, but on performance for the year my suspicion is with the give back in the youeurozone that w seen recently, that you might see some commentary to try to weaken the euro a little bit the one thing ill note, is that the bond market has rallied in response to this news and i dont think the yield could go much lower. I mean, basically, what the market is saying is that they think that yellen has just gotten dovish with this call i dont think thats what shes saying in this speech at all i think what the markets responding, theres no talk of timing about Balance Sheet reduction. No timing of when there will be a next hike. I think thats probably the wrong read i think this is a fairly innocuous speech that shes given, as far as the shot across the bow regarding regulation, i thought it was a pretty tepid shot across the bow. I think the speeches if shes taking any shot, and i dont think janet yellen is capable of really taking shots like that, but if shes talking about it at all, shes pretty much given up hopes of becoming you know, extending her term or another term can i just say one thing in regards to that . And honestly, i would like her to continue on i think, and weve been talking about this over the past few weeks, lets see what happens with this administration you know, they may need to throw a bone to the markets, to just keep some stability in order to get in order to get that should be disposable define throw a bone. What kind of a bone . In terms of keeping the status quo and look, ill be more specific, okay there is talk out there of will trump serve out his four years look, weve discussed it on this channel here and if something happens in the shortterm, where he decides not to continue on for four years, i think in that environment, whoever steps in, and it would tof obviously be pence, would say, im not messing with anything that doesnt need to be messed with the market is telling you, though, gary cohn is much more important going forward, because the interview that broke today, that came out of the uk, said that hes staying on, where he said hes staying on thats why the market took off so, you may have that rethought, because he doesnt have the experience as a central banker, but thats what the market its so weird, for like four years, janet yellen and the fed have been telling the markets and the public that theyre going to go slowly, and then thats what they did, they went slowly and all of the drama, every month, every time theres a speech, every time two speakers say the same phrase in slightly different cadence, but, its all, its all for naught, because they said what theyre going to do, theyre doing what they said they were going to do. There really hasnt been a huge divergence in monetary follows based on any exogenous things that have happened to us in the to quote the great philosopher, denny green, they are who they thought they were were going to move deliberately and slowly. Were going to press conference, and lo and behold, thats something we did wait, this is important. Whats the readthrough for investors . Well, the hottest sector in the market is tech guess whats number two right now . Utilities. Up 13. 5 , utility sector is taking out a yeartodate skmi getting close to an alltime high and take a look at reits iyr is a good index for that reits are on the verge of a major breakout here. Theyre bumping up for another time against the top range end of that up trend and this could be it you know what . Its an underowned space we talk about alternatives, this and that reits are an alternative theyre also the 11th sector in the s p. Theyre an equity, as well and these are the types of things that investors continue to buy the only thing about reits, be careful, i had a conversation literally last night fastby, accounting rules are going to change where companies will have to start putting their leases on their Balance Sheet as of january you might start to see some noindebted or lowindebted companies suddenly look very indebted rob, are you surprised with the dow up 18 in 12 months that the benchmark tenyear note is still just 2. 17 you know to joshs point, quickly. So, what i would say is theres been a dislocation in that it does not necessarily make a lot of sense, right . But it kind of tells you the environment were in you had on a week ago, i think, you had howard marks on the show and one of the things hes been out there talking about is todays environment, where uncertainty in terms of the number of things were uncertain about, in terms uncertain about and insol uability of those and we did a survey recently, ubs, that surveyed 2800 High Net Worth individuals and what they said is 80 of them responded this is the most uncertain time in history thats no surprise 80 80 the other interesting part of that, somewhere around 50 and i might be slightly off, feel that they are able to deal with that environment today so what they are saying, we have a goldilocks environment. They are rich, ubs clients. I feel they can deal with it too. Thats called the availability bias, they feel its most uncertain because the media is telling them its so uncertain how uncertain was september 10th, 2001, nobody felt uncertain then. There are always things that can knock you in another orbit. Thats my point. Whether we feel certain or uncertain the only thing thats been certain is uncertainty. With that we have to go to a break. Best buy, lulu lemons, those trades and more on the Halftime Report what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at td ameritrade. Starbucks graded to outperform. I think its a rational case they are making, its a stock that deserves somewhat of a premium. It has come down in terms of multiples on several metrics still not a buyer here this thing in the middle of its range xbl auto desk, a smaller than expected lost. It was actually a beat and it was a raise on every line, top line and bottom line this is a quality story, company transitioned their model perfectly. Id wait for a pull back though. Id want to see all right broadcom its kind of a schizophrenic stock. A lot of people were looking for it it was a good earnings report. What do you do with it now you buy it and hold it into the iphone 8 hype that will pick up over the next couple of months. The dollar tree dollar dollars dont grow on trees that i understand falling 9 and you think the pain in the u. S. Dollar may be over in the short run i think thats right but longer term i think its overvalued. We started the year u. S. Dollar is overvalued no, im sorry started the year very strong, u. S. Dollar performance, given up a lot. On a purchasing power basis yes, it does remain overvalued and you start to see a reacceleration later in the short run, like i said, theres going to be stuff that probably comes out of jackson hole for mario draghi and others to talk down their currencies on a relative basis may see a reversal of that longer term we think the dollar is going to continue to strengthen. All right, go ahead. Not with trump in the white house. I still think its going to be in youre lying, i have the strongest dollars we almost had a segment that didnt mention trump we failed. Coming up, more Halftime Report after the short break. And why a Pro Football Team chose us to deliver fiberenabled broadband to more than 65,000 fans. And why a leading car brand counts on us to keep their Dealer Network streamlined and nimble. Businesses count on communication, and communication counts on centurylink. That had built his house once thout of straw. Tle pig one day a big bad wolf huffed and he puffed and blew the house down. Luckily the Geico Insurance agency had helped the pig with homeowners insurance. He had replacement cost coverage, so his house was rebuilt, good as new. The big bad wolf now has a job on a wind farm. Call geico and see how easy it is to switch and save on homeowners insurance. Lets look ahead, best buy, dollar general, box, Palo Alto Networks any more of those will be key . I think lulu will be interesting, nike has been hanging in there adidas doing well but look at foot locker and how it got beaten down and it makes you wonder which way will lulu trade . Have you noticed the retailers are swinging 20 either way zm. Theres nothing going on in the market. I do love the german pronunciation. Adidas. Adidas okay, lets get to your final trades. Ive been watching gasoline prices sell off. It ran up during the week more importantly, wishing everybody safety down in the gulf that is the biggest and most important thing whats going on down there gasoline distribution in this country is very prolific theres nothing to worry about down there gasoline prices will not spike. A lot of stuff onshore. Alphabet found support at 920. As long as it holds, stay long this name. Airlines, the only caution, a lot of cancellations. And a lot more expects. Mlp, you should be buying them right now and the reason is the financing markets are open as they discussed theres risk with that. We like it. Thank you for taking it easy on me have a great weekend power lunch begins right now. Heres whats on the menu for power lunch, bracing for category harvey, barreling towards the through the gulf evacuations under way and a third of the nations oil refinery are under threat. The governor of texas set to hold a News Conference this hour on wall Street Investors doing somethingthey havent done in 13 years what it is and why it could be a good thing for the record breaking rally whole foods planning to slash prices monday after it closes its deal with amazon will rivals do the same . Are we entering a new Supermarket Price war
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