Before . Well, there is some catalyst pushing us around, and the catalyst and we have talked about it time and time again, over the last month or two, and the correlation with oil, and 37 to 42 is the new range that we are sitting in with oil. If oil breaks through, judge, that is because the primary catalyst in my opinion that has been moving the markets, and that is where we areal following the very closest, because you can talk about the dow or talk about the 10year or the chinaer to fed i was going to talk about the dollar. Make the can case that the dollar is the most important thing. Well, it is important, but you can almost right now close your eyes on the weekly basis and not every single day, but on the weekly basis, close your eyes and see where oil is, and you know where the market is. And rob, is this the time, maybe it is, sentiment is different than what it was in the beginning part of the year. China is maybe beter thab it was in the beginning part of the year, and oil is stabilizing from where it was in the beginning part of the world, and the dollar has come down from where it is at the worrisome higher point on earnings, and sentiment and Everything Else . Well, maybe some short run things that have come off of the table, but overall, over the long term, this is fedinduced, still. You have slow growth, low inflation and i think that in a supportive policy environment, and what that is going to lead us to is the same thing that has driven the markets over the last several years. I worry that markets are pricing in a little bit too dovish of a tone from the fed, and there could be a surprise in some of the ae yas of the market. We could have led year to date, because they are loose policy induced the recoveries whether it is utilities or the emerging market markets, so you have to be careful. I would say in the shortrun, we are probably overbought, but long term, you know, if there is a dip, i think that you still want to be a buyer. Jimmy, do you see it a different way . Well, similarly, and i want to focus in on a kocouple of things that rob rob said. We are in lowgrowth environment, and gdp is tracking 1 , and last quarter 1 here in the u. S. , and guess what . That is not large enough or big enough numbers to get meaningful stock market appreciation in my opinion. So we have osee the gdp growth in the u. S. Closer to 2, 2. 5 , and the problem is that i dont see it coming. Appreciation from the alltime highs . What is that, scott . And what do you mean stock market appreciation . Meaningful higher than the a alltime highs. And you right to point out that we are 1 away from alltime high on the s p 500 and it is possible to break through it, because the momentum is on our side, but what i said yesterday the fundamentals are lousy here, and it does have me worried. But you have to be amazed at the resilience of the market, and you looked at what happened after sunday, and no opec deal reached, right . That could have been a powerful catalyst for a negative market reaction, right . And you didnt have it, so when you have the mixture of the underinvested investors, and the low expectations, this is the type of thing that can happen. And i will tell you that in terms of the amazement, joe, from the february 11th lows and the socalled diamond bottom or whatever you call it, the materials are up 20 , and energy up 20 , and the financials up 19 , and the discretionary 17 , and industrials, and so has anything materially changed from mid february . Yes, they had a g20 meeting and went to the back room and made a deal, and they wont admit to it, but they did and that is why the Federal Reserve backed off and the u. S. Dollar is lower, and what is the risk to the whole strategy . The risk is that the s p 500 goes through the highs of last year, and keeps appreciating and then the surprise in june, because then the Federal Reserve has the free pass and the markets are great, and now we can give the extra 25 basis points that the street doesnt really expect. That is the risk, but in the near term, sentiment is incredibly bearish still, and everybody is skeptical. Pete is talking about the oil, and it is well, somebody is pushing the market higher. Those are the shorts. Those that are short are pushing it higher. And crude oil is 41. 15 and the next stop is to go through the 42. 17 high from last week, and then off to the races towards 45 and what is that going to do to the equities . That is what i said to germany gundlach and what do you think about the rally, and he said it is last man standing, and i said how long is it going to be lasting and he said well, the air is thin. You could be at base camp, and it is still thin or sell and go away this in may is the trend. And it is dramatic the speed and the velocity in front of us, but looking at the list while joe was speaking, scott, you look at the energy, and the materials, and the finance, and it has been for the most part, and now it is great participation but dash for trash, and those not performing is where a lot of the money has gone. The caterpillars. And a great one, how about the fact that ibm on february 11th their 152 stock hit 117, and they still cant make money. So what has been hit the most, the emerging markets, and brazil, and going through the list of what is the reaction and the reaction is extremely fast. And everybody is surprised by the where we were and the now where we are. Right. And people were surprised at how low we went in february. That is definitely an overreaction. And the upside is 26. Well, a lot of it was an overreaction as well, and looking at china, and everybody thought that the floor was coming out underneath the chinese economy, and you had year over year numbers announced by the government gave a 6. 7 gdp growth rate, and this week, a quarter over quarter number that indicates more like 6. 3 , and people are not paying attention to the negative numbers when they come out, and that is a negative data point, and 6. 3 versus 6. 7, but it is not being paid attention to it. And it is the momentum of the tape, and it is a sellers in the e be ingoing of the year, and now silt a buyers. And the momentum. And the buyers tape, but it is not aligning to what the overwhelming holdings were. And so think about coming into the year, everybody wanted health care, and everybody wanted the consumer discretionary, and give me some applea and the amazon, and best of breed, and to petes point, not only is it going up, but it is the wrong names. The value over growth, and we have discussed it the last two months. Worlds best values are really, really struggling this year. And intel is not. And it is a really tough environment. And there are different environments, because if you are talking about basic materials, a rnld energy and talking about the dash to the trash, that is what we are talking about, then Higher Quality values, and the cyclicals that are not tied to the commodities or the old line tech names that should be moving higher and you have to make the distinction and so far the market hasnt, and that leaves vul nrability in the basic materials and energy names. And rough shares of netflix, and the subscriber guidance is lower than expected, and Julia Boorstin is lye with us. Hey, scott. The earnings beat expectations, and the stock plummeted down about 11 , and disappointing guidance for the secondquarter subscriber numbers, and overseas growth in particular the projections are falling short of wall streets expectations a. Number of the analysts are lowering the targets as they reiterate the buyer neutral ratings. Noting that they will face difficult subscriptions over the next two quarters, but rita hastings, the ceo dismissed concerns from competition of hbo and hulu and others, saying that expansion of tv players is a good thing. Only the inhibitor of our growth is how great is the service . Can we make it so there is never buffer, and starts up instantly, and the recommendations are credible and the content is exciti exciting. If we continue to do that, we will glow globally even though hbo and dish are also growing. And the ceo ted cerando said he is not interested in acquisitions, but they want to grow the company organically, and not interested in buying sports rights right now. Certainly interesting area to watch. Thank you, julia. And speaking off buying selling, and tom najarian, you saw an opportunity, and joining us now, what is the buyin, doc . Well, i like to buy it in the afterhours and i did not sell it like an idiot at 101 and change where it opened up, but nonetheless, traded out of that stock, and got into the option position, judge. So instead of spending 300,000 which is what it would have cost to buy 3,000 shares of netflix this morning, i bought some calls, and sold some upside calls, and spent just 48,000 or 0. 06 of that the. And if this stock is over 100 but tween now and june, i will make 400 on the june. The reason i bought afterhours, is because it was on sale, and the options dont trade in the afterhour, and so i had no choice, but as soon as i could this morning, traded out of it, and got over into the options side where i can define the risk, and get in here, and love what Reed Hastings had to say, and on demand is where everything is going, and we checked with kensho and you know, nbc has a partnership with them, and checked with them, and last time that netflix has dove 5 , each time outperformed the s p 500 over the next three months, and in fact, the last time in october, it beat it by a substantial amount. Cool. Doc, we will see you back here soon. Thank you, judge. All right. Jon najarian, dr. J, and here is what is coming up on the Halftime Report. Still ahead, the ibm hope trade, and the number one analyst on the stock weighs in on the turnaround story. Dont think about it, just because he is on your show. And plus, pete najarians High Conviction buy. The Popular Consumer stock that he is liking for the long haul. And energy is on a tear. We have got your game plan on how the play todays surge and crude. It is all coming up on Halftime Report. Man 1 i came as fast as i could. Whats up . Man 2 this isnt public yet. Man 1 what isnt . Man 2 weve been attacked. Man 1 the network . Man 2 shhhh. Man 1 when did this happen . Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Welcome back to the Halftime Report. Tesla shares are reducing after a report was released saying that model x had issues. And there is problem s wis with quality of the new version, and there are reports that the company has seen some issues with the model x builds, but the issues are not widespread and the report says that the quality issues are expected from brandnew models, and tesla just recalled model x models because of a third seat that failed safety tests. Thank you, dom. And i would like to ask you if you like the stock, and everybody says no, because i know what you are going to say. Okay. Moving on. Pete najarian is known for a nimble trader, but he has a bull ish bet that he believes is a longterm play, so why do you like it . Well, it is starbucks, scott, and we have earnings, and in the short term, i am looking at starbucks, and i like what they are looking like going into it, and option activity on april 7th, and jon and i talked about it, and the 664 strike calls that hit, and that is something that got me back into the stock. If this sells off on the earnings in terms of the catalyst, that is when i would actually shift out of the options, and obviously not going out the way i would want, but shift out of that and consider the stock, and anything underneath 660 a share, and the reason is so many catalysts Going Forward and if you break out what they are doing in the asian markets, that area could be something that is absolutely unbelievable for them, and it is not just that, but the mobile pay, an all of that as well as getting themselves involved in the right way, i think in selling the merchandise in different venues including the costcos of the world, and they serve it on delta air lines, and pa partnerships, and starbucks is reasonable under 60. Back to tesla or an second, because i have said that i believe that the tock is going to 300, and last july, 285, and 262 in the last run, and josh brown pointed out the potential for there to be a double talk, and this news of the roll over of 240, i want to take away the 300 market, because it is leaning away from what josh says. It fails at 282 high, and where it is is now, it is not looking good technically. And the reason i said what i did, is because i get tired of hearing the same old target, and from people who i am not saying that you have to like it, but the valuation, and the valuation, and i cant buy it. It looked good technically and looked like it would take out the highs, but i am with you. It is great to move on. Move on. And trader blitz with four stocks making news today. First up is ill lumina, and wow, what a disappointing forecast, jim. Yeah, and i really feel bad for the holders of the stock, because it is a terrible time, and the stock quintupled in the years 2013 to late 2015, but it is cut in half, and really what this is a story of is that if you are going to be buying a growth momentum name here, you have to have the earnings to support it, and the earnings are not there to support this multiple, and hence off 50 from the high. It is a tough stock to own right now, and id stay away. But the earnings are there for united tlt health . Yes. And getting above 130 and that is the bellwether and a lot of the commentary talked about pulling out of the obamacare state, and so i believe it is above 130, a weak long shakeout, and down the 120, 125 and long or term, it is a great secular story. Harleydavidson . Well, it ha had a nice trade of over 47. And total reversal up this morning. Yes, and usb was going to propel the north american sals,s but it did not pan out, because the strength was internationally at 4. 5 , and domestically down 1. 5 , but that is concerning, but when you look at the valuation of the stock, it is a buy and a yield, and i like it Going Forward. And freeport, robbie, they were downgraded today, and up 74 year to date and speaks to a number of things. The dash for trash stock, and what is taking place in commodities and iron ore, and what are you seeing . Well, from the macro standpoint, it is clear that the cyclical markets like dovish fed and weaker dollar. So you have seen a rally in the areas. I think that it can continue for a little bit, but you have to worry the minute that there is an inflection point, and id be careful. Okay. Coming up, debating the ibm turnaround trade. Any believers on the desk . The streets number one trader on the stock will join us after the break. And as we go to the break, the halftime portfolio. And who is in the lead . There it is, we have pete trying to work back into the green, but we are back after this. This morning i read over 4000 articles on leukemia. In less than a second. speaking japanese i can understand euphemisms, idiosyncrasy and complex metaphors. I know every detail of every public Quarterly Report in the last 20 years. And im just getting warmed up. Hello. My name is watson. Together we can outthink the limits of whats possible. Welcome to the cognitive era. I want to show you the markets here and it is a different story than what hap n happened here with the game going op, and the dow is giving up 18,000, and the s p 500 and you did have the dow with less than 2 away from the alltime hi highs and giving back at this hour. We watched the market move around a little bit, and there are a number of cross currents today, whether it is earnings or disappointments from ibm falling sharply, and this is what jim cramer had to say about the stock this morning. I would not buy this stock ahead of when tony sack is on the show. I would not do it. If you want to buy ib, in, wait until after the Halftime Report. Watch it and then see if you feel good about it, because tony could put the wood to it. He could bash it up. He gets, and he has the ability, because he is number one. So your show is going to be determining the direction of i be, m and not ig in that we say here. And all right. Lets bring in tony who is the senior analystt a Sanford Bernstein and a whole rating on the stock, and 135 price target, and tony with that buildup from cramer, the pressure is on big time, and the note says it all, the hope trade fades on q. Are you a downer on ibm . Well, look, we have been cautious on the stock for a while, because it is a very big company, and it is understood going a transformation, and there is a lot of at foot there, and when we look simplistically at it, and say, is the transformation occurring . Is the Revenue Growth improving and the answer is that we have not seen it yet. It is very difficult to make a bet on the stock that is trading at about 12 times cash flow which is very much more expep issive than the comparables without really feeling confident that a turnaround is afoot. And tony a quick question, it is pete najarian, and looking at the legacy business versus the transformational side, and the security and the cloud and all of the rest of it, but at what point does it tip the scales . I know that it is right now 37 , and that is the only growth that ibm has, but because of that, when is that going the kick in . Does it need to be at least 50 of what we are looking at right now this is well, look, that is the operative question. So if you are going back five years ago, those strategic imperties were 10 billion in revenue, and today, they are 30 billion, and if i had said five years ago that ibm would have a 10 billion going to 30 billion, you would have said that the company is going to grow, but what has happened is that the rest of the company has shrunk by 20 billion. And so the company is significantly smaller despite the fact that the initiatives are doing well. Right now, they are not additive, but simply replacing the business that is being challenged by secular forces. I dont believe there is a crossover point, and we sneed to see that ibm is going the grow incrementally, and they are capturing client wallet share, because they are simply replacing the business that ibm used to do and other kinds of products and services, but they are not net accretive to the business. So the math says that as the math is larger, the growth should improve, but it has been happening for five years, and it has not been any improvement, and the growth has gotten worse. When does ibm deserve the benefit of the doubt that the transformation is actual ly taking hold . Well, you know, look, the company has a lot of assets, and great brand name, and Strong Customer relationships. The tech landscape is really changing, and ibm is unpremised provide, and they help people to build i. T. To run on the premise, and the world is moving to off premise, and moving to cloud. So it is a big transformation and the market is giving them a little bit of the credit, and again, 12 times the cash flow is not a bad multiple, but for the stock to really work, we are going to have to actually see revenues start to grow, and at Constant Currency organically it was at minus 3 this quarter. And katy huberly over there at Stanley Morgan and maybe you heard cramer talking about her and you, and she has a more positive view of the stock, and her headline is that the transformation will begin to bear fruit, and we asked her to be with us today, and she could not b but she is with us in spirit. She is going to be making some arguments here, and i want you to respond to them, well, it should trade to the premium at the hardware peers, and if the stra t strategic investment s as are pg off, and the currency headwinds have stabilize and in some cases reversed and why isnt that the view, toni, to the take here . Well, it is a complicated company, and they have started the segment reporting, and so it is difficult to get to the heart. The key metric is to compute what Revenue Growth is on organic basis on the currency. So take the invest churs and take out the currency. This quarter minus 3 and in the last three years minus 2, and prior to that, it is flat to up. So over the last five years, its been declining at a relatively steady rate, and a little bit worse this quarter. So i think that when you look at it on the simplistic basis, there is no evidence that the overall portfolio is transforming. And i think thats, those are the facts that when we think they are paramount for the investors to think about. And moreover, i would note that ibm is guiding for the tps to decline about 15 . So revenue is going to go down, because they are fighting really hard to transform the business, the e peshps is going to go dow about 10 . So again, given how significant the structural headwinds are, and this is a company with 400,000 employees, and so you have to be careful to give it forward credit ark on the investors who did give it forward credit on the initiatives are e growing, and the growth rate should ultimately stabilize have been penalized for that. It is still too early to make the leap. Toni, appreciate your time today. Thank you so much. From Sanford Bernstein, the number one ranked investor in software. Who are you going with . Well, i dont own the stock, and i owned it six months ago, and he she says it is going to be right, but not right now. What toni said is absolutely right. You have to see the top line growing again, and this is the 12th quarter in a row of declining top line. That is as for that you cant get out of the way of the you own the stock. You used to be a big believer in the big blue, and now not so much . Early, and i have realized the wrongs of my ways and changed, but basically the Artificial Intelligence and the analytics are great business, but they are not growing fast enough yet. Well, modella and sake, 450 billion company, and they could make the transformation, but ibm cant make it, with a 150 billion cap, and you are saying it sarcastical or well, not now. And you could say that in the last couple of years they have gone to well, it is unbelievable. Microsoft has done it, and doing it, and they continue to do it, and that is impressive and the other one i brought up cisco, wa theywhat they are doi right now in the transformational process, they got 16 quarters of revenue declines, and holy smokes, how do you survive that a ceo . That is something to be questioned by the investment company, as well, and even though Warren Buffett is there, it is not saving the company. And 100 , and pete is talking about cisco, and another great example of it. Thank you, i appreciate it. You it to all of the time. You guys want to hug . How many quarters are we waiting for ibm to turn . Im not in it. It is too early to be in the stock. It is too early. You have to see the top line turn, and not the new business initiatives, but top line term. I disagree with too early, but a it is way too late for them. I give katy the last word, no, all of you are wrong, and overweight is where we are going. She is great in apple, but off on this one in ibm. And coming up, the energy play that our trader called essential to the United States. His call is bullish, and we will get the update. And also our john harwood got the exclusive ride along with Vice President joe biden, and how the close the loophole no matter who wins the white house. And now, looking at the negative territory, and the dow is flat, and the s p 500 is as well, but the nasdaq is under big time pressure. We are out. Back after this. Your unlimited data travels with you to 140 plus countries and destinations at no extra charge. And thats not all. Because with tmobile theres no overages. Ever. Switch your business to tmobile at work. And get four lines. With 10gb of 4g lte data each for just 35 per line. Nobody does business data like tmobile. We need to be ready for my names Scott Strenfel and r im a meteorologist at pg e. We make sure that our crews as well as our customers are prepared to how weather may impact their energy. So every single day were monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. During storm season we want our customers to be ready and stay safe. Learn how you can be prepared at pge. Com beprepared. Together, were building a better california. All right. Welcome back to the halftime e report and over to sue herera with the headlines. This is the news this hour. The death toll from the japanese earthquakes is rising to 45 with more than 1,100 people injured. One person was found in a state of cardio arrest as they continue to look for survivors. And today, Hillary Clinton casting her vote in the New York Primary this morning. She greeted poll workers and posed for pictures joined by her husband formert president bill clinton. And cvs is going to offer Curbside Pickup at most of the stores called cvs express and piloted in a few markets in c. A. , North Carolina and georgia. And former new york giant football star Michael Strahan is leaving live with kelly and michael to join the cast of gma full time. They are hoping to shore it up with a decline in viewership among the 25yearolds, and we wish him luck, because he is a nice guy. Back the to you, scotty. And oil is rebounding today up more than 2 , and cnbcs Jackie Deangelis is back to tell us that crude is up 2 , but it is bigger than that . Yes, that is right, scott. There is a upside over 40 and psychologically that is significant, and the headline is that kuwaiti oil worker strike. And jim, is the headline making it higher adding to the oil crude price or more Short Covering . Well, i want to split it half and half, and up until the meeting, the weeks to the meeting people were buying it, thinking of small chance of a deal, but towards the end of it, plenty of people, and jeff and i were two of them willing to short it knowing that there was not going to be a deal. So as soon as the news hit, we broke a bunch, and now everybody is racing to cover the shorts, and then the kuwaiti oil strike happens, and the combination of the two have pushed to the levelsch i am more bearish than bullish, an unless the june contract can settle it down. And jeff killberg, are we going higher from here . Did he just drag me into the bad trade there, jackie . Did you hear that i kind of complimented you, i thought. Backhanded compliment. Well, nonetheless, momentum, jack i can k and jim is talking about the short coming, and the momentum is still intact to the upside. I am looking for the target of 45 to the june contract. And we had a disappoint out of doha, and the bears got excited, but they landed a punchf on the bulls noses, and now back to the race, and the elevation in crude oil is going to persist up to 46. For more on crude go to the futures. Com, and coming up on the show at the top of the hour, we have former president ial candidate ron paul who is going to tell us about it all. Tanning you, jackie. And now, there is a case that mlps are a good place to be. Lets take a listen. The energyinfrastructure in the United States is essential and we have values that we have not seen since 2009, and when the Asset Classes were shutdown. Today is no different. All right. It is up nicely since you started to say that, and what are you thinking now, given the environment of where we were and where we are . Well, two things that i said back then that are still in place today at least over the short run is that the mlps are hostage to the Capital Market activity internationally, and oil prices are bouncing nearly 50 off of the lows, and just recently i was reading in march and april that theres been issuance of 3 billion in debt and equi think in the space. And low rates help. Yes, the low rates help obviously, because there sis a shortrun correlation of the lower rates and, you know, mlp price prices. I do think that energy insfra structure in the United States is still essential. And the mlps are an asset class to get an implied return which is the dividend yield plus the growth of the yield that is in the 13 to 14 range. I dont know many other Asset Classes, but maybe you do, that have the implied return profile. And macro risks associated with that, because we are fundamentally oversupplied in the oil markets. So tremendous uncertainty around rates. And obviously, the Capital Markets activity can shutdown rather wickly as you know, but it is a long rather quickly, as you know, but it is a longterm investor as i talked to josh the last time i was on and not on the same page as you were last time, right . Right. And the fact is that you have to have some assets in the portfolio to provide potentially incrementally higher return because of the negatives in place in the abatement of the negatives, and will that allow the assets to move higher . That is what we have seen. And again, the risk s as are ou there, but it is still an asset that is attractive, and incidentally, the eld yoos of the mlp are in the 8 range, and incredibly good relative to what you will see out there today, and distribution growth is still pretty high in the 6 range. You know, having them in portfolios at a spread of 625 basis points above the 10year when the average is 325, it is f fundamentally attractive rare ya, and because of the risks i would not say it should command the weight that it used to, but it should have a place. I wanted to agree with you and stress one point, because the distribution growth of 6 when these stocks got clobbered last year, the people said that distributions would slinhrink, in one important noteworthy case, kinder morgan, that did not happen, but it is important in a stock class well off of the highs. And in the midrange space, you have seen limited disruption there. We still own it, and we have cut the weighting, because we still believe we are confident after the call. And now, is it time to jump into a trade . It is going to be our call of the day. And checking the sector heat map. There is the s p, and there is the sector heat map. One of the places for marketmoving interviews, real money, real debates. The most profitable hour of the trading day. Dont be surprised if you see a 5 to 10 move the other way, because that is what we are having for a while. The Halftime Report weekdays at noon eastern. Here at td ameritrade, they work hard. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. Years ago, i was starring in a allergic to other cats. Cat opening slash closing night it hit me hats for cats. Everyone said i was crazy. When i went online. I got my domain, catswithhats. Com from godaddy. Now these things are feelyin outta here. Got a crazy idea you think you can turn into a success . We know you can and weve got a domain for you. Go you. Godaddy. You ppremium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . 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And in the state of the negotiations with dish Networks Viacom is saying that they are extremely disappointed that dish is not engaged in a serious way to reach an agreement for the viacoms number one family of Cable Networks including nickelodeon and Comedy Central going on. They say it is par for the course for dish which has derailed ten renewal negotiations since last year. We have reached out to dish for comment, but not heard back from them, but it syndicating that things are coming to the head with vie come and dish, and vie come is looking for higher payments, but dish not wanting to pay more, so a battle between two media giants. More Halftime Report coming up after the break. Every year, the amount of data your enterprise uses goes up. Smart devices are up. Cloud is up. Analytics is up. Seems like everything is up except your budget. Introducing comcast Business Enterprise solutions. With a different kind of network that delivers the bandwidth you need without the high cost. Because you cant build the business of tomorrow on the network of yesterday. Because you cant build the business of tomorrow 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 schedulen 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. We are back. New yorkers are heading to the polls with donald trump and Hillary Clinton the favorites in that states primary vote. John harwood sitting down with a man already in high office. John is going to join with us the latest installment of the speak easy series, john . Well, Vice President biden have been trying to eliminate the carried interest loophole, and it has not happened, and i asked him why not. There is no indication of a hedge fund paying 15 to 17 , and there is no justification. Everybody from Warren Buffett to everybody, and it is just anyway. Are why havent you been able to get it done . Two reasons. One is that we havent had the, because of as i kid the president , i say, mr. President , everything has landed on the desk but locusts. We havent had the clear space to do nothing but talk about how unfair the tax system is as it relate s relates to the tax expenditures and loopholes that we want to eliminate, and the consequently what happens is that a lot of people can go home if youre republican and say these democrats are just going after business. If i sat here and explained everyone, i dont have to because your camera crew is really bright and say let me tell you what carried interest is. Youre making and paying at 30 , paying at 17, and they are making some of them made 1 billion, 28 made 1 billion. You think thats fair . Now, Vice President biden predicted the next president will succeed in getting rid of that loophole and theres some reason to expect it. Both Hillary Clinton and donald trump on the republican side, the two favorites for the nomination and in todays New York Primary have both called for getting rid of that loophole. Guys . John harwood, thanks so much. John with the latest out of d. C. Im sure all you guys have something to say about this one. Yeah . Ill start. I mean, i think the cause maybe i was wrong. I think the cause maybe some people are afraid to talk about it. Issues such as inversions or carried interest is an outdated tax code, and and when i look at it, some of the greatest engines of growth in this country come from that industry which is Capital Allocation in the Venture Space to build new businesses obviously and then official Capital Allocation number in the private equity space and im a big believer that these folks should be rewarded. You have to look at everything and not just isolate one aspect of this. Some think no matter who wins the white house that thats going to change, that what Vice President biden or is that just hope . Are we trading on hope on that that well see some change. House and senate changing along with the change thats coming in the white house . Do you have a view on this . Well, i think, you know, i wish everybody would actually focus directly you can speak freely on it. Okay. My hope would be maybe you cant. Something i put out there a couple of years ago, and it hasnt happened, but the corporate tax, an everybody talks about it now in the election year, but that is a job creator. It it can handle so many different elements of what the problems are that we have here right now, and yet even though they all agree upon, it they cant agree to put it into law. A good portion. Population, and im sure people who are watching now who agree with Vice President biden. Yeah, yeah. Im sure they are, although i think he definitely was able to spin that in the right direction towards what his intentions were for this whole thing, and i think if you had somebody from the other side, maybe from the hedge fund community, they probably would be able to put this out there in a completely different way. The entire the entire tax code system you sure you want to do this . The entire tax code system is way too complicated. We all just finished april 15th filing. It should be much more simplistic. Simple things work in life. We can figure this out. Its an antiquated system. It needs to be remodeled. It needs to be refined, and it needs to be simplified, and thats got to be hopefully something that were going to see in the next four years. Coming up, emerging markets are on the run. Bank of america is jumping on the bandwagon as well. Its first bullish call on the ems in five years. Wow. Well get the trades coming up and intel sets the trade after the close. Well get the traders takes on the stock next. Real is touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing were back, as you know, emerging markets have remained quiet over the past several months. Bank of america, more upside, turning bullish on the group for the first time in five years, so, rob, youve been bullish and now youre taking it off. Just a little different perspective of buying low and selling high. A matter of risk worth taking, right . And i think this emerging marks rally has been built on the back of the weak fundamentals and those are recovering in a commodity environment thats still way oversupplied. A very do havish Federal Reserve that may change. Theres a lot of forecasts that are that are included that expect two moves which year end and i think were in going to take off everything. Eem. Which a lot of people own, who are watching, has had a great run. Rob makes a great point though. What do you do now. If you dont think its been based on fundamentals improving. Right. First time in five years they they raid them at a buy. Look at the performance year to date, brazil, russia, up 40 . India up only 6. India is actually the one geographic fundamentally sound and only up 6 and i would stay and that is another great example of dash for trash. Things going for the worst. The names hit the hardest are the names they went offer. No fundamentals that really gave us a reason and that took off. You get to a pivot point. Any time, you cant squeeze every bit of juice out of original. So im with you except i took all of it off so i think the dash is done. Lets talk quickly about ebay. Got downgraded to a sell today. The stock is on the move. What do we think of the stock, any takers on it . Thats 24 right now. The target was cut to 2250 from 24. Okay, all right. Maybe i could see it. I dont know necessarily. And its obviously youre looking at, if youre not watching or listening, its at 24 now. A lot of the reasons are concerned for weakness internationally. The concern i have as it relates to ebay is that the Revenue Growth does not hey line itself with the ecommerce growth which is double digit but yet the guidance on Revenue Growth, the ebay is 1 to 2 . Too much competition, i think, in the space for them, and i think its, as josh brown said, i think last week, its yesterdays story. They are worried about competition, the official that downgraded, morgan stanley, competition with amazon. Right. You have two interesting stories that are book ending the show. The netflix concern, netflix is at the lows of the day, down 13 , put it up as youre talking, please, concerns about amazon in the new service and weighing perhaps on netflix and there it is and then you have the downgrade now to ebay in part because of amazon. How many times have we heard on top of that, scott, how about the idea that we hear from ibm today and cloud is part of ibm. Its part of microsoft and part of all the others and thats also part of amazon as well. It gives you a little sense of just what amazon has become over the years. Rob, give us your quick sort of last big market thought as were, again, back over 18,000. Now were low, but you get my point. I get your point. So stocks are fairly valued, bonds are expensive. You have to have a goalsbased approach. I think you can buy things selectively. Im still cautiously optimistic. That msnbc were con. Were out. Power lunch begins right now. Well cede you a fewing seconds. Brian sullivan is traveling today. Melissa lee is in miami beach for the emerge conference and well get to her in one second. First well begin to begin with the markets and could be a new full charge as the major averages hit fresh 2016 highs again today. Now, we have pulled back some since then with the averages hugging the flat ne