More bullish than two decades . Absolutely. Because the risk that youre taking is so much less than it was any time since the financial crisis. We made our big sell call at 1999 and because we saw all sorts of additional risk whether its leverage and the types of loans the banks were making and the lack of oversight now its night and day. The degree of oversight on the banks, i mean, you know, jamie dimon cant leave the building without someone watching what he is doing. What were talking about here is the amount of capital at record levels. The liquidity is at record levels. The oversight, record levels. The First Quarter it was a terrible environment but you know what, the quality of loans even with energy, its fine. Book value is still growing. These are resilient banks. Theyre banks that are becoming more one way or another and the valuations are pricing in levels that werent perceived. Does that give me upside . What generates the rally here . When youre going to see revenues have been over the last three years so they should be better the next couple of years. That is efficiency and efficiency should be better the next few years and the risk, i mean, you can charge off another housing crisis over the next five years and still have more capital than you had before the last downturn. And by the way, this is not like invest in these banks and walk away. Were recommending these banks and were Holding Teams Accountable by going to annual meetings. April 26th, you have a bank of america. April 27th you have bank of america with a meeting. Its efficiency so this isnt a recommendation. Were there along with invest s investors. We displayed here what is it best performer here do you think. Jp morgan . Which returns the best . They are the a and b students. Citigroup is a d student that we think will become a b minus student. So going from a d student to a b minus student that creates a lot of upside and citigroup was the only one of the large 8 banks that got effective pass. I like the banks and they made a lot more investment in yields. Its better and it seems as though that is leading. How can banks grow when they dont have the talent they used to have . I dont want banks to have to be so smart and they have to out smart the rest of the world. I want banks to go back to basics and you have back to the future with regard to u. S. Banks. You dont need the smartest guys in the room. You need to stick to the bases and not swing for the fences like you did before the financial crisis. Youre not seeing that outrageousness you saw before. I see your excitement from the down side being protected. I get that. In terms of the upside, theres upside but were never going to see the valuation we saw before. The banks are atms for the government. They have taken away the ways. Also the risk, granted but never get wealthy by being scared and just worrying about the risk. They have taken away the upside from the other business that they had so verse 20s years ago theyre shadows of their former selves so to increase their returns on investment so i think theyre cheep but i dont think that excitement is warranted. Youre a smart guy but you made a mistake in what you just said. The banks are not utilities but they have more utility like out comes and news flash remember to the investment community, other stocks that have annuity like or utility like outcomes have skyrocketed this era of low rates. Go ahead and look at utilities. It might trade higher. Banks trade at 9 or 10. Just to be clear here youre suggesting that they have bond like qualities . They should rally . Thats what youre saying . Theyre obviously in yields. For steves comment if you adjust the dividend yield for buy backs that adjusted dividend yield is better than activities. That adjusted for rates is the highest in history so we are saying that banks have more utility like outcomes. You just skoeldgot me for sa that. I think what we need to find out is what is the best bank to go with. Best Management Team jp morgan. Management teams dont matter. But i think they to. But thats the best Management Team but the bank trading the cheapest is the one i want to be in right now and you look at the liquidity is bank of america. You only have a 16 price target on there. That seems low when you consider the fact that book value is closer to 20 or 22 a share. We recommend bank of america for the first time in several years. You flipped on that one. We did. He came on board. They have the most upside right. I was on your show and i talked about it and as much as i hate their oversight and the lack of accountability for management i love the franchise and book value. Thank you. And one other bank though thats not being, we upgraded for the first time in over two decades. Theyre many michigan, texas, and california. The stock is trading at tangible book value. They have the efficiency among the regional banks. They havent changed a director this decade. Is that a good thing . They have the lowest returns and havent changed director. Sounds like theyre not accountable. But this is the most flammable Shareholder Base at a major bank in years and i think this flammability leads to structure or change. Ill be there. You want to mention jp morgan which is your top pick . I do. I disagree with the premise that the loss of strong intellectual capital and the lack of incentive for people to stay in these Financial Institutions like there is right now could be a positive thing. You need the best of the best in these institutions to grow their earnings. To grow loans. To take the other side of the rhetoric coming out of washington d. C. Which we all agree is obstructing the growing earnings potential. Were at the later stages of these legal settlements. Youre not concerned at all with the rhetoric in the president ial coming election from the democrats . Look if you want to break up citigroup, if you want to break up bank of america and break up the regional bank, fantastic. Investors will have a field day. Youll have Elizabeth Warren and you can get carl icahn all dancing together because theyll all be happy. Leave it there mike. Thank you very much. Yeah. Clsa. Heres whats coming up on the halftime report. Still ahead, extreme investing. Gopro hires an apple design executive and john buys the stock. Will it pay off . And the pfizer allergan deal. Treasury secretary jack lew defends the crack down. Plus chipotle all on the move. Those stories and the trades are next in the blitz. Its all coming up on the halftime report. I could get used to this. 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Are you suggesting fundamentally that this is a stronger one. Its not so much that kate is the best its how they carry it as a brand. Theyre very tight with their promotions and that is better overtime. Its to out perform. So its been great and we recommend it. How do you get the valuation for more upside Going Forward . Its not a cheap stock and its got that in there and its in pretty good shape. We actually dont have an expensive stock. Youre looking at it on a pe basis it looks expensive but you need to look at it on a paid ratio basis but it rarely exceeds any of the other companies in the apparel and footwear space. So its only trading at. 6 times. Its really closer to one so we think thats the opportunity and we support our valuation with the discounted cash flow and thats pointing to 32 for us. Last quarter they had great concern in terms of the growth there and thats what everybody always points to. Thats what were always looking at is can they grow online . Can they continue to grow at the pace in which they grew last quarter . We think so, yes. Theres a couple of attributes that we really like. 75 of its business is direct to consumer which means they are in control of what theyre selling to the customer. 20 of that business is online. Thats double the industry average in terms of online sales penetration but what we like about the upside potential is the propensity for increased productive and thats stemming from the fact that a lot of their stores are under 2 years old and as the stores get to 4 years old thats when you start to reach much better sales for square foot and better productive. Theyre also introducing a lot of licensed product in their stores and it will just drive the comp, we think, further. Thanks for sharing the time and your analysis with us. Its good to see you. Thank you. John are you a buyer here . No. I think she made a good case. Especially with the online numbers, simon but no im not. About a month and a half ago there was strong activity in the underlying stock and in the options but that was when it was 18 bucks. Up here at 24 it keeps hitting between 24 and 25 so until it can make a break out im not going to be interested. Kate has underperformed relative to coach and if you look at the last part of the inventory up 21 . Sales growth up 8 . I agree with john. You get out of the stock. It had a nice run here. Take your money and look elsewhere. If you want to stay in the handbag space maybe look at kors or coach. Theyre all competing with each other. Theres a lot of handbags in the world. Thats the issue. Theres enough competition out there but i bought into macys today because of unusual activity and i have been waiting to see that. Look at what this thing trades at from a valuation perspective. We always talk about Management Teams. Its important. We talk about jamie dimon. This is a guy you want to bet with when hes trading right now at forward pe right now is single digits. Macys is going higher. I dont like spade here because i dont think you look at your forward growth targets as to say thats a valuation. Thats the price theyre valued on. Look at their historic growth. It hasnt been that great lately. So a agree here on macys however im disgruntled and hasnt been there for a long time. New today for me. Guys we have some breaking news. We need to go to d. C. What do you have for us . New dow jones reporting just hitting the wire. Saying that microsoft has filed suit in a federal court in seattle against the u. S. Department of justice over whether or not the department of justice can go after and investigate computer users, files in the cloud without telling the ultimate user what that information was all about and who is being searched. The report here says that microsoft says in its filing in federal court that it received 5,624 requests over the last 18 months but 2,576 came with gag orders that preventing the company from telling customers the government were looking at their data. To Southwest Airlines this is another big instance here where we have a tech Company Going against the us. Government on this issue of privacy and security. So similar to the apple versus fbi fight but a very different issue here at court but once again we see the Tech Community on the west coast at odds with Law Enforcement here on the east coast guys. The doj is controversial for many. How did you trade this guys . Whats the view here. When it came to the apple case we all said why is this going to effect apple in anyway, shape or form. I dont know wln this is going to actually effect the stock price quite frankly in terms of microsoft. Coming up on the program, at least one ceo called the governments new rules on tax inversions on america. He was headquatered in ireland. Sarah has spoke to the treasury secretary jack lew earlier today. Sarah. Well, simon, i got secretary jack lew to respond to those comments and criticism that what he did was unamerican when it came to the antiinversion rules. He responded and it came as a total shock. Ill share that with you coming up next on the halftime report. By debating our research to find the best investments. Dplsh. Welcome back to the halftime report. U. S. Treasury secretary jack lew crack down on tax inversions. A couple of weeks ago. Sarah has caught one mr. Lew in d. C. Today to talk about some of the backlash. Sarah take it away. Well, simon in response to the Companies IncludingAllergan Jack Lew says its wrong for a company to merge with a Foreign Company in order to gain a more favorable tax rate like pfizer and allergan planned to do. Secretary lew says the companies should have been paying attention. It was our third action and we had vowed to go against inversion. So i asked how can you plan a business when at my moment the government can swoop in and change the rules. Everyone who engages in business knows that its subject to changes in law or rulings an important thing has been unnoticed for a very long time. It hasnt been a secret that this is an area of deep concern. Bipartisan concern. My only frustration is that legislation hahn been enacted to deal with it in the best way but we remain focused on what administrative tools do we have to stop the pipeline as much as we can until congress acts. Importantly treasury secretary jack lew has more actions when it comes to inversions and he also reminded us that most americans in his words are offended by these practices and this is an issue that gets bipartisan support. Interesting i did talk to the managing direct tore of the imf about whether it was more harmful or helpful. She doesnt get very political. She did say s backs governments to take action to improve taxes but also noted its important to be transparent and open and engage in dialogue and that is something that the treasury is getting dinged on when it comes to actually implementing the new rules that broke apart that deal. Back to you. Thank you very much sarah. The world bank imf meeting. Steve whats your view . Its not only americans that have done it. We only have one player that was involved in allergan. And nine months we do something. And shame on them. However what the government has done is taken it away. Congress hasnt passed this. Jack lew should be that congress hasnt passed revision to put it in a Competitive Position with other countries. Rhetoric coming out and the government told you they were going to do it. The government is very consistent. They told you what theyre going to do as it relates to business. Theyre going to continue to tell you what theyre going to do and theyre going to do it. The answer and solution to me would be Corporate Tax reform. Im not in politics but that would be the easy thing. More important in this instance one of the most powerful lobbying on capitol hill is the pharmaceutical lobbying. Its inconceivable that they didnt know this was going down. The break up fee was much reduced if it broke up for this very event so clearly they saw it coming. Whatever they were saying in public they thought it was a risk worth taking. They didnt know it would be a look back as well. Thats fair. A agree with hank paulson who was also of course treasury secretary before and its a bad one. So, you know, these are two and actions at these companies. However the president needs to stand up and take some of the responsibility here because he has said that he will not sign anything coming out of congress that done include an increase just to the 1 . Thats what he has said. So when mr. Lew says you havent seen congress act thats why they havent acted because its as useless as trying to charge for air. You cant do it. And so i think that the president should get together with congress and they should reform the tax code for syringes as well as corporations. Coming up on the program, the debate over two pro. John is the lonely bull on the stock and bought it yesterday. Is the companys big design hire enough to get it going again . Well debate that. Plus betting on batteries. Its an Old School Technology thats getting a second wind. Our experts will weigh in on the companies that benefit. P . P . O . Gv Sharon Epperson has the details. Nancy pelosi says lawmakers in the house are making progress on puerto ricos debt crisis. Charges include securitys fraud, wire fraud, and conspiracy. And the chairman of parliament in what could mark an end to a month long government policy. The out going this week after weeks of pressure to step down. And Rutgers University announcing that president ball balm will deliver the graduation address at his 250th ceremony on may 15th. Sit the first time in the University History that a sitting president has agreed to speak at his commencement and what an honor for those students and alumni. Thats the update at this hour. Back to you simon. Thank you. Gopro holding an event in San Francisco as we speak to announce new initiatives. Josh lipton is there live and im hoping that you join us. Well, nick woodman is just now taking the stage to unveil gopros new Developer Program which the helps with innovation. So gopro has made it ease wrer for companies to go with apps in the gopro eco system and its the platforms. And as well as video and that app is going to be available this summer the Company Tells me and fisher price is designing gopro compatible camera housing and mounts stock down 70 over the last year. Saturation and changes and try to make it more versatile by building in this greater functionality and hope that that is going to remain greater sales. Thank you very much. Gopro shares rallying after announcing they have an important recruit from the apple team. John, you bought this, correct . I did. I bought it yesterday on unusual activi activity. Explain the connection. They make the chips for gopro and others its what makes the miniature video work. Both are moving up. Im hoping what josh lipton had to say is why the stock makes another one. Its up 15 in the last 48 hours. If it didnt make it easier for fisher price to put gopros in toys, why not in commercial extensions. Theyre so efficient in their strategy of introducing a new product. They have not moved fast enough. They had the audience and the active sports user and engaged in new products and theyre not introducing a product isnt it just up on the hope of the announcement of hiring. Is there a sustainability in that rebound. Reading through on that one theyre dangling a bunch of Stock Options in front of this gentleman and that gentleman said i see more upside in gopro over the last 18 months. Look he is going to make a much prettier commodity product and the developer conference, ill just harken back to blackberry and all the ways they expanded their developers, right . Developer base as theyre going down, down, down. So the problem for me is not this is one of the problems. I think design is going to be great and i think this is a feather in their cap but its not enough. They have to get somebody operationally in there and the problem that started this decline is they came out and i dont know if the product was terrible but they put it out at the wrong price. And thats a problem. Theres another hire theyll have to make. And apple is the right one to do it. I said for a long time that they fit somewhere in that Apple Ecosystem and at these levels it would make sense. It almost makes you wonder why someone has not come in alrea already. In the next three to six months i wont be it in that long because the options are shortterm options that expire in one month so ill probably in two weeks. Interesting. Lets get to our trader blitz. Four trades on four stocks making the news today. 3d systems following an upgrade to buy from bank of america. Squeezing the shorts. So look, everybody has been calling the death of this company for so long but when you have a 24 or 28 Short Interest dont be in the stock. You should have learned that from just the last couple of months and thats what is driving it. That is what will continue to drive it moving away. And its the outlook. This is the third time they have done that and its just not there right now. Margins dont look good. We talked about this the other day. It was suggesting 20 upside. We said at the time we were really skeptical of that. Lets focus on the airlines moving today. Delta reporting a mixed quarter. I have on calls in this actually. But i still hold on to some more of the upside just hoping this can get up into 50. If not the rest of the calls are going to go out at zero but its a nice trade so far. I love the earnings call. If theres any concern at all, Richard Anderson will be stepping down soon. Hes the catalyst behind a lot of what have seen in terms of how they treated the shareholder. Everything that they have done and its not a concern but its something that has to be thought of. Chipotle upgrades to overweight at jp morgan. Put a 10 target on it simon. This one really should be a debate, i guess, because jp morgan loves the stock obviously. Sees 60 at least in upside from here. As far as goldman sachs, they dont like it. They went the opposite direction just over a week ago. Clsa same thing simon. So there is a fight going on today jp morgan is winning. Well see who wins in the long run. Coming up on the program from poor performance to big redemptions. Another pinch fund voting to drop hedge fund investments. Steve will weigh in on the latest trend hitting the industry. Plus gold is having its worse day in three weeks. Is it time to take profit on the precious metal . Well be in the futures pitts for the trade. That was an expression of love. Im not used to looking at it. No more bickering. Halftime will be right back. Here at the Td Ameritrade trader group, they work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. Perfect driving record. Perfect. No tickets. No accidents. That is until one of you clips a food truck, ruining your perfect record. Yup. Now, you would think your Insurance Company would cut you some slack, right . No. Your insurance rates go through the roof. Your perfect record doesnt get you anything. Anything. Perfect for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claim centers are available to assist you 24 7. For a free quote, call Liberty Mutual at switch to Liberty Mutual and you could save up to 509 call today at see Car Insurance in a whole new light. Liberty mutual insurance. Ashley bryant, you are a teacher of small children. Thats right. I have read it is the hardest job in the world. Thats why im here. Can you. I can offer advice from the accumulated knowledge of other educators. Thats wonderful but. I can tailor a curriculum for each student by crossreferencing aptitude, development, geography. Sorry to interrupt. But i just have one question how do i keep them quiet . pause watson . There is no known solution. Coming up on power lunch in about 18 minutes, theranos under fire and we have a guest that says the company may have faced less scrutiny from experts and the media because the ceo is a woman. In our series, at least the founder for sure. Our series capitalism at a crossroads why thousands of American Workers are walking off the job and calling all movie fans we have a story that will make you think twice about heading to the theater. Full details at the top of the hour on power lunch. First back to simon and the fast money halftime crew. Thank you very much. Time for a segment that we call the big hedge. Due to high fees and low returns new york citys Largest Pension Fund or Public Pension Fund voted to stop all future investments in hedge funds and liquidate 1. 5 million of portfolio items. Steve whats your take on that move . Performance has been horrendous. But for hedge funds, theyre going to charge fees but this is not the death of the industries. 2015 over 2014 and id say that new york state and others have no further to look than their cons consultants and themselves that keep putting money. Nearly 90 of all assets go to largest managers and they all own allergan and valiant because the bigger you get the fewer opportunities you have where as the smaller funds tend to do better. Right now with this building is always the time you want to take a look at the other side. So similar to what we saw all these long only managers go into vcs and now theyre writing down the positions, once that rush happens you want to start going. Its truly Global Markets and its truly a Global Economy so you have to go take a look at whats going on and see who is able on the hedges. So look im as depressed and frustrated about hedge funds as all day long and i see light at the end of the tunnel. This the is the same story 2014. They took money out. Look at where they get it in terms of that was a true negative selection process. Unless you gave minimum fees. Unless you gave them other stuff, they wouldnt invest. So the best managers wouldnt give that. I think these guys said it all. Its true. You cant negotiate against the best of the best and when you want something that youre saying well im not willing to pay for that suit simon, that somebody isnt willing to step up and they buy kenneth cole, when you get that, you dont expect the same sort of quality. Okay. What do you think of this move to set up what is it . A billion dollars that some people are saying is to get around the rules . Where are you on this . Theres no doubt in my mind whatsoever that steve is going to be running outside. He has a thousand people working for him and in order to meet those costs which he has a problem meeting now, have outside capital to pay for it. I was in dubai, those sovereign wealth funds and those Family Offices miss them. They want to go back in. Its a question of when and how he does it. Is it worth the headache . Thats the only question i have. If you look at what hes managing right now and its all his hes able to do it the way he is. The way he wants to do it. He has a thousand employees. So thats a lot of change and theyre not making 15 an hour. Good point. Well, minimum wage is higher than that, isnt it . Not yet. Isnt everyone going to make 15 an hour soon . Only if Bernie Sanders gets elected. Now to gold on pace for the worst session in three weeks. Jackie is down with the futures now crew. Good afternoon to you, simon. Thats exactly right. Were watching gold under pressure. The recent Dollar Strength has been an issue for gold and also on pace for its worse session in three weeks. At 1227 or about that range. Would you be buying on the pull back . Jackie, you can consider. Look at tuesdays high of 1263. Its been taken to the wood shed but were range bound. Look in february. We maintain that range so now as long as this u. S. Dollar undercurrent is in play the fed is most likely not going to do anything for the rest of the year. Its a buying opportunity. What tow think . Your take on it . I disagree and the proge progression here today. I have been long gold twice. The stocks are stubbornly strong signaling a risk on. People are selling rate products. I think gold head do you understand close tore 12 and who taught you the word precipitous today . Hes always learning new things and sharing. Beautiful i love it. More gold on the online show where im talking to peter schiff. Hell have lots of comments and tell us why we shouldnt be discounting a recession right now. We also have tom kloza who is going to tell us why oils next stop. Coming up on the program, making a bet on telass elon musk hoping to light up your portfol portfolio. More halftime next. They may want the latest products and services, but they demand the best shopping experiences. Theyre your customers. And by blending physical with digital, cognizant is helping 8 of the 10 largest u. S. Retailers meet their demands with more responsive retail models. Ones that transcend channels and locations, anticipate expectations. Creating new ways to engage at every imaginable touchpoint. Its a new day in retail, and together, were building the store of the future. Digital works for retail. Lets talk about how digital works for your business. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Are you looking to charge up your portfolio . Hadi walia is here. What is the motif of the charge . This is a battery that gives you exposure to 5 billion lith upcells sold every year. Think of the component manufacturers that build the components for the batteries, Companies Like fmc and albemarle. Think of the Industrial Solution companies that help you restore renewable energy. Fuel cell energy is in here. Plug power is in here. Think of the automotive companies, tesla is in here, advance automobile parts is in here. And we even got a consumer plan health care called great batch. It is a motif underperforming by six points, down 5. 9 for the year. But it is catching up. Up 16 points in the last quarter. 4 points over the last month. Who will buy this motif . I like it. I had a quick question if i could, though, as far as hardep. Ive been hering about qualcomm getting more involved in the ev space. Would you ever consider a stock like that more or less the rest of us feel them as a chip play but qualcomm does so much more than that. We actually thematically wait the motif. Not all of the market cap is driven by batteries. We take components of it. As it starts to take a greater percentage of revenues we attribute it to that way. A lot of what is driving the growth in this motif is the electric cars. Youve seen an accelerated adoption of it, it takes ten years to get to a million hybrids. It took us five years to get to a million plugins, that was the inflexion point last year in september. Youre seeing accelerated growth but a lot of what is driving this are the traditional plays like mobile devices, which is 64 of the market. There is not as much growth as some of the new areas like electric cars and storing solar and wind energy. Some of the solar stocks have not traded very well. We all know that. I have a curious question, which names were potentially on this list that you didnt put in now, but maybe would be in there in the future . There were a lot of the some top tier names. Top tier. All of the phone Device Companies are in here. Small percentage because batteries drive a little bit, as they start to command more value, they will make it in here. There are a lot of Mining Companies that are diversified that are in here. A chilean mine company in one of them. But anything a lot of the exposure is so small. The purest exposure in the motif are the Industrial Solution companies that actually store solar. I want to get a view if people should buy into it. Is it a good idea, please . One im probably not that interested in. I think it is further out. Right now, no. Guys . Im with pete. I would buy it. I mean, because i like the focus on this space. So, yeah, i would. Good to see you. Thank you very much for coming in. Coming up, jon is finding unusual activity in one tech name and showing signs that the stock could pop. As we go to break, a look at the halftime portfolio leadership calls. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive weinto a new american century. Born with a hunger to fly and a passion to build something better. And what an amazing time its been, decade after decade of innovation, inspiration and wonder. So, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. You are buying a chip stock, take a listen. Applied materials, this say really interesting stock, hits every once in a while. When it does, it seems to be big paper. Big paper more often than not seems to be very correct. Theyre buying the april 20 1 2 calls for call it around 60 cents. That will hit very early, scott. So expect over the next very short period of time, im probably in this trade for less than a week, maybe just a couple of days. But i like when we see this paper hit this particular name. Okay. Pete, the Holding Period was a few days. Are you still im still in the trade but took off half of it yesterday. Ive been looking at this, and waiting. When nice move in the stock, up near 21 1 2 now. Im about to get out of all of it. Okay, thats it. But im not out yet. Okay. Jon, youre seeing bullish options action. Yes. A name that doesnt come up all that often, sensata technology, they make Circuit Breakers and sensors for airplanes. This is down about 16 year to date, simon. About 33 over the last year. And it is about a 6 billion player i think. Somebody stepped up and bought a lot of just out of the money 40 strike calls. Both unusual activity because of that. I bought the stock, myself, and i havent been filled on my calls yet, but i bought the stock and edded edadded it to halftime portfolio today. What is your time horizon. Probably next 25 ill probably hold it 14 days or less. Over the next 25, 26 days, somebody is betting that it goes over 41 1 2 in order for them to make any real money on this trade. Thats a little over 6 pop pretty quick. Okay. 3 1 2 hours, of course, 3 1 2 hours into trade, 3 hours to go, lets get some of the top trades for the second half of the day. Oil. Oil is going to be my top trade until further notice, particularly going into sunday in the doha meeting. I want to see how it sets up. To me, it may be a sell on the news, kind of interesting. No sign of that, so far. Tomorrow, very interesting day last day to trade before sunday, of course. I would look at a lot of the regional banks. Regions financial, reports tomorrow, i expect that to be a strong report. Market still approaching all time highs, positive momentum we talked about at the beginning of the month. It is firmly in place and earnings right now, the expectations were incredibly low and youre seeing the evidence now where theyre beating and the s p is responding positively. Okay. Simon, i love those delta earnings we got this morning. Im looking at that stock. The other stock in that space, i like it even more, which is spirit airlines, one of them. This name is really reacting today, up 3 . They dont have the International Type exposure to the degree of the big three. So because of that, that quarter will end up being fairly solid as well. I like that name, i like many of the different airlines. I know can you say american too. Love american as well. I like we started the show with mike over at clsa. Mike mayo, and i think northern trust, state street, bank of new york, melon, those three, they would be on my list because i think these are going to rock because of what mike is saying about how well the banks are going to do Going Forward. It is a pleasure, guys. Thank you very much. That does it for the halftime report. Power lunch begins now on cnbc. Welcome to power lunch with Michelle Carusocabrera and brian sullivan, im melissa lee. Tyler mathisen is off today. We start off with that bombshell at theranos. The wall street journal reporting that regulators are considering banning Elizabeth Holmes from owning or running any lab for at least two years. This follows a journal investigation published in october that questioned the integrity of theranos lab results. Holmes came on cnbc late last year to address those claims. This is what happens when you work to change things. And first they think youre crazy, then they fight you, and then all of a sudden you cha