Its obviously a report that was somewhat shocking for wall streets economists. But i would say if you look at the reaction in stocks today, its fairly muted. Dollar down about a percent and a half. Gold is up 2. 4 . But its kind of sloppy. That charts all over the place. But then you take a look at equities themselves. And pretty clearly you can see the nasdaq, after being up seven days in a row, is down 0. 7. Small caps down a little bit more than 1 . S p, large cap nams are really down barely. Yeah, because because the market believes that june is now off the table. Isnt that the because a weakening dollar is not a negative for whats been ailing the market in a positive. Q4 and q3 of this year were going to lap what went on last year with that dallas racing higher, wrecking the earnings of the commodities. A plunging dollar but a weakening dollar is being viewed as constructive. Liesman, what happened today . You know, im looking at you. You got your hair all together. Your suit is well pressed. Me, im a mess. Im an absolute mess over this. I mean you think you have a view of the world, that the economy is strengthening to the second quarter. Youve got decent jobs. Youre prepared for the jobs report to take a step down. But not to crash. So you got to go back shuffled. Im feeling internally dishevelled. I cannot evaluate myself on air. People will write in. Internally im feeling a little intellectually dishevelled. June is off the table . I think june is off the table. The easy way to think about this is youve got a very cautious fed. The behavior has shown when theyre faced with this kind of uncertainty, given where weve been and the performance of the economy theyd rather wait. Christian had some good points about that. Theres no down side given where the Inflation Numbers have been. Youve got to think, okay, is some of the fiscal anomaly the idea that you came along and have the three month avenue. All of a sudden it crashed. You know you have 35,000 verizon workers youre going to add that back in. You think construction is doing better given what weve seen from the construction numbers than down 15,000. However you still have to stand back and say wait a second is there a material weakening going on. Not the softer i was going to add that in, scott. The first time ive ever done maybe back in 08 i did it, where the jobs arent. Usually its where the jobs are. But the negative really you have Capital Industries lost jobs this time around. And thats the lop tine there is your verizon workers. Temp help. Good leading indicator, down 21,000. Manufacturing now maybe were seeing some stability in manufacturing. But you want to see the whites of the eyes on any rebound. Dr. J. , what are you going to do . You didnt think they were going to go in june jean way. Nope. Youve got to believe they have to wait for the next jobs report if this wasnt an anomaly or something to be concerned about. Weve tauxed about the brexit and the pressure this put on the fed and i believe that pressure is still there. Even with ms. Yellens speeches and so forth that are going to be delivered ahead of the june 14, 15 meetings. Monday she speaks. Now it becomes even more important. Markets going to be hinging and hanging on every word. You wouldnt have jamie diamond over in the uk right now basically talking about the workers that work for jpmorgan over there, and more or less trying to gather this consensus that this is bad for them unless that vote was a heck of a lot closer than most of the polls are saying. That is that ms. Yellen doesnt want to screw up. With her speech on monday. So where i think it puts us, that is a horrible number in april followed up by an even more disgusting number in may, and then the april number, is revised the market is moving off of the lows and isnt as bad as a number like this would perhaps cause liesman just said june is off the table. No. Its one number. Thank you. We got god pce earlier this week. Im not saying july is awful. Im not really sure july may be on the table. July has been did heres whats off the table today. Banks. Banks are selling off. Banks were a bright spot because we figured okay, economys improving, Interest Rates are moving up, good for the banks. Thats why those stocks have been running. Not today theyre not. We could be down a lot more. Some of them are only down 2 or 3 . Theyve had a really big rally. Was the bank trade just killed today . I dont know. No, i dont think so. Because i dont think this is one number and its a crummy number. So im not going to sugarcoat it at all. You could say the 2. 5 wage number wasnt horrible. The work week number wasnt horrible. So lets see some of the other theres no tisilver linings within this. Wait a second. This is one number. We got the pce number earlier this week and steve was talking about people going to 3 gdp for the second half of the year and raising their numbers and whatnot. Maybe were not 3 . But were probably somewhere between 2. 5 youve got two key parts of the trade thats worked. Where the money has gone. Were following the money. The moneys gone to banks. The moneys gone to tech. If we think the economy is getting soft, cyclicals like tech may not work. Banks if they stay low may not work. What does that do to the market . Its a very fragile market, scott. Thats one of the reasons that the fed has to stand pat in june because josh you mentioned this a second ago about strength of the dollar or weakening of the dollar. If the fed were to go in june, and i dont think it is, the strength of the dollar would then carry, would really kill all of the cyclicals. It would kill the ism which is barely above 50 and has been below 50 for quite some time on the manufacturing prior to the most recent call. The fed just cant afford to have a strong dollar. That would kill all these fragile cyclicals. I want to ask you a question, steven, isnt it logical to conclude that when weve had quarter after quarter, year after year after solid gains in employment that the closer we get to full employment, the more we should expect a deceleration in jobs growth . Its absolutely actually before we came on air talked about this idea that maybe were seeing some evening out in the productivity numbers. The idea if output remains high, and the number of workers goes down, productivity, will come up. You should have some kind of cyclical bounce back. But youre right, other economists also point out exactly what you say. As we reach or near full employment, the total number of employees hired should begin to go down. Ive talked about i anumber of steady state employment number coming off what fed officials said of about 100,000. Maybe in a mean reversion world where you did 150, it would really calm with 75,000 if you add verizon back in. This is not out of line. I didnt expect that stepdown to happen as quickly. Set the stage for monday. Give me the context of the kind of forum shes speaking in. What shes likely to say. Most recently the fed chair was talking we didnt expect much. Maybe we got a little more than we thought. I would like to say the fed is rewriting that. A couple different versions of the speech already written. Thats the way they do things. They come in with options like a chinese menu of economic characterizations. Theyre probably going with the more cautious one that says look, the fed no matter what you hear the one that hardly anybody is writing latelyly . Exactly. I dont know what you hear the fed say. What the fed does say is well do x, y and z dependent on the data. The data has not come through with what they thought in their forecast, so its not hard for them intellectually to say okay, im just pushing it ahead. I think were going to be okay here. Thats the baseline forecast. But its not happening right now so im going to wait. And im just going on what janet yellen has shown us about how she runs the ship. She runs it very cautiously. She waits and she waits until the moment is right. Its been six months. I think i went back, ive never found a period of time in a rate hike cycle where the fed has waited six months and still call it the same rate hike cycle. It almost isnt. Lets bring in another voice for more on this. Jeff kleintopf is at charles schwab, nearly 2. 6 trillion under management. Welcome. Thanks. Why dont you weigh in on what youve heard already. I think you kicked off the show on the right topic which is the dollar. You can see here in the u. S. But look overseas. Japans not open but boy you can expect a big down on monday morning, because of what it means for the yen. Remember, yen strength bad news for the japanese economy. Thats going to be but look on the emerging market side. Take a look at these etfs for emerging markets today. Theyre up nicely. A weaker dollar, good news for those guys. Take a look at todays moves. Do the opposite of them for the second half. The fed is still likely to hike rates, and i dont think this is this is one report. I dont think it takes the fed off the table. You can buy the financials. You dont think it takes the fed off the table in june . I dont know a whole lot of folks who expect to move in june but we do expect to move at least one move in the second half of this year. Fed fund futures pointing to 90 likelihood even post this report of a move by the end of the year. I think thats what really is going to currency is going to key off of. Jeff, its josh. So average out earnings running at a 2. 5 growth rate year over year. Thats fairly healthy given what gdp is. And given the Labor Force Participation rate, et cetera. Is that something that can accelerate from here or is your expectation slow but steady more of the same . Im afraid its the latter. Little bit steady, more of the same. Its not a deterioration. I think the fed is focused on the wage numbers. Weve heard them talk about it. Thats the key to inflation. A lot of this is about the labor market that comes back to where is inflation and whats the risk of deflation look like globally . As long as we can maintain modest wage growth and were seeing that in europe as well thats a positive and puts the fed on a track towards raising rate. Last question, jeff, if the bull market almost in its entirety some argue was a product of fed accommodation, what happens when more of that accommodation comes off . This whole thing is about the fed, is it . Theres certainly a lot of suggested, if you look at the charts, every time we had qe, markets disconnected from the economic fundamentals to the upside and they came right back to them. I think theyre close to them now here in the u. S. Overseas youve still got positive policy being put forth in the eurozone. Note that just adding as of wednesday of next week corporate bounds being added to the program in europe and japan is going allout. Theres still a lot around the world and you can expect that to continue to destroy markets as it has been. Perhaps to the upside. Thanks. Jeff kleintop, charles schwab. Steph wrap it up. I dont think this changes in terms of hes a big portfolio management. Thats what im talking about. You want to continue to do what you have been doing which is kind of a barbell. I still want to own cyclicals. I think the lower dollar is very good for the industrial. Pretty good for energy, too. So well have to see. Monitor the dollar. I think thats very, very important. I like cyclicals but i also like it as lowyield environment. Youve got to have some yield. So the staples trade i think still works. Im going to continue doing that. Good conversation, guys. Heres what else is coming up on the Halftime Report. Controversial, expensive, and risky. Thats what one analyst calls tesla. So why is he saying its time to buy . Our call of the day is next. Plus rates, real estate and reits. Steve leblanc breaks down the best places to put money to work in real estate. And wall street greets its shareholders today. Were live at the meeting with a look at the companys future plans. And well debate the stop. That and more, ahead on the Halftime Report. charge music you wouldnt hire an organist without hearing them first. Charge so why would you invest without checking brokercheck . Check your broker with brokercheck. Man 1 i came as fast as i 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. Were back on the Halftime Report. Tesla shares under pressure this year. Our next guest says the slump wont last long. He thinks that stock could rally 37 from here. Rob sira initiating Coverage Today a buy rating and 300 for the price target joins us in our call of the day. Welcome. Thanks very much. Why did you make this call . I think teslas a really important company. I look at it as a technology company. Increasingly important as hardware and Software Plays a bigger role in the auto industry. I think theres a lot of growth ahead for these guys. I dont think anybody would argue with sort of any point that you made. The question is, does it deserve the valuation that it has, can it make the number of cars it says . And is there really enough of a market out there for what tesla thinks . I think those are all legitimate pushbacks. Absolutely. So i mean, its expensive. Theres no doubt about it. Youre paying a premium for the growth. On 2019 numbers but i think thats the way you have to look at it. Theyre investing a lot now, for much bigger volumes than theyre doing now. What i think is important is, is the demand for electric vehicles there . I think they are proving that its there. The challenge really is to now execute, and to manufacture those cars, but i kind of feel like the important part of the demand is the demands there, theyll be able to get there ultimately on a supply. Im going to unleash the wolves. If you will. Rob, dr. J. Is first. And im sitting in front of a panel of traders and investors who all dont like the stock. Dr. J. Is number one. Well, rob, again, took guts to make the call so hats off to up for that. I can trade this name but i cant put customer money in it. As an investment. Just because of this valuation. So in other words i can own it for days, weeks, even just hours at a time when i see something that merits it, but boy your faith to have to have that belief in somebody thats got the reality of the field second only to steven jobs as far as what he can actually do versus what he thinks or what he says he can do. I mean, that statement moving up his production numbers, that i thought was just ludicrous and it really put the gun to his head. You dont fiernd that pressure to be something that should be avoided, rather than encouraged . I mean i think teslas goals are certainly ambitious. And theyre going to be challenging. But, at the same time, you know, i mean if teslas actually able to get to a point where theyre making 400,000 to 500,000 cars a year which theyre hoping to do in a couple years, i mean that is about the number of bmw three series sold in a year. Its not like they dont have to take over the car market they just have to get their small slice of it. Rob i appreciate you coming on kicking this around with us. Talk to you soon. Thanks very much. And i want to underscore, no one here wants to buy this stock. I think you were kind to cut off the wolves to use your term. Look theres a lot of things to question here. And it is the a bold call on his part. But one of the things, and just one of the things i think about is competition from other sources. You know, chevys got the volt and im not saying that people appear to have the volt the way they aspire to have a tesla but when bmw comes out with an electric car or any of the other luxury cars come out with electric cars, which they will, thats going to eat in to the demand for tesla and make those multiples that rob is talking about even harder to achieve. Lets spin this a little bit and say rather than all saying no, we wont buy tesla. You like General Motors. Correct. Give me a General Motors versus tesla conversation. Which one has the better upside, the better longterm performance capability . Well i strongly think General Motors. Thats why im in it and not in tesla. A lot of this does have to come down to valuation, but it also has the execution risk with the tesla which hasnt met any of the production goals theyre trying to reach for now, whereas gm has this in the bag. I think on gm theres things that could go right for them. South america they could see less losses. Europe they could grow and stay profitable. China theyre making inroads. There are certain things for General Motors i think where the valuation is so low and the expectations are so low and you get a nice yield while you wait, i would not own gm or tesla, id own the Auto Parts Companies because thats where you get the leverage. Greater return in five years. Being an investor in General Motors or ford or tesla . I think you could make money in General Motors, ford or tesla in five years, the thing is for which company do more things have to go right . And thats what when you Value Investors talk about margin of error, you dont have one in tesla. Everything has to go perfectly just to justify this name having a 200plus stock price. With gm and ford, everything does not have to go perfectly. Youre being paid a nice yield to wait for things to go right. Everything almost has gone perfectly and the stocks havent im not in any of these and id rather be in aerospace, frankly. Companies involved in growth areas. Autos are not going to be a growth area. Theyre going to be a grind it out area. Look i know when jim leben thal pulls up to the hamptons in the chevy volt the girls go crazy. I dont look at that as a competitor of tess lore. The real competitors will be bmw and porsche are not eating crayons while tesla builds out the model three. Hes more likely to be heading up to woodstock in this tractor. Theres going to be serious competition and im not talking about apple cars, google cars. Throw deer the real competition doesnt come from companies that actually have the experience to turn out half a million vex in a year. That can actually put millions of cars on the road. Tesla may be able to do it but theres a lot of faith required here. So i think theres room to say, i love him. I think you can do that as a reasonable person. Some call it the super bowl of pharma and biotech. What stocks are likely to move the most . Plus shares jumping higher on better than expected earnings . What could results mean for go pro. A 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. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. 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Remember, all Medicare Supplement insurance plans help cover what medicare doesnt pay. And could save you in outofpocket medical costs. Call now to request your free decision guide. And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. The worlds biggest Cancer ResearchConference Begins today. Cnbcs meg tirrell is here now with a look at what to expect at asco this year. Heading there in a couple of hours. Thats right. Some people call this the super bowl of medical conferences just for sheer size. 30,000 oncology professionals head to chicago for this conference. And it really has in previous years kind of turned into a big pharma focused conference with this focus on immunotherapy. The harnessing of the immune system to fight cancer. There is a showdown happening between bristolmyers and merck. That will be closely watched over this weekend as more data come out on those. Other folks working in that space include roche and astrazeneca. Roche just got another drug in the class approved. Ands aextra zen ka working in that space as well. Pfizer and eli lilly have a new class of Breast Cancer drugs. And smaller names can be watching also. Of course monday well be there with a lot of these guests and ceos, biggest names in the business, and here on Halftime Report were going to be interviewing the Roche Pharmaceutical ceo daniel oday. Let me ask you, m a. We expect anything like that to come out of this kind of a conference . You had pfizers ian reed saying we consider another mega deal, just not an inversion . Thats right. Well, pfizer just did that. But that wasnt in cancer and they are really investing a lot in cancer. We could look to see at least what kind of targets they might be looking at. We dont necessarily see announcements of m a happening at asco but the precursor information can lay the ground work. Ariad is one name. You brought him on this program. Thats right. As a company and that one is a potential takeover target if the data are good. Have fun. Thanks. We look forward to it. Lets kick around some of the names. Meg you can stick around. Jim . I do like pfizer. One of the Breast Cancer drugs is a great franchise. Bristolmyers which is the immunooncology drug is terrific. Meg with regards to this asco difference cos it have as much importance now as ten years ago . Because, a lot of these drugs are on the market right now whereas asco is usually groundbreaking results that thats what gets people excited. Those groundbreaking results happened ten years ago and now theyve come to market. Do you feel that way . Thats a good point. A lot of folks say this year doesnt have the big phase three data that are going to show us a new class of medicine. Exactly. Were looking at how drugs are going to be combined. How practice is changing in that way. To that point i agree. This is a really important medical conference for doctors. Also just to figure out how to prescribe these new drugs. Can you give us something were going to hear about m a given evaluations of the sector overall . I think it will be a focus of investors and analysts at the conference. Another thing that will weigh in the opposite direction where m and a tends to buoy valuation is this discussion of pricing and financial toxicity as a new side effect for cancer drug. Whats interesting is the timing of course with how the sector has performed over the past year. Since asco was last held its become this sort of political firing line, and you sort of just wonder how that all plays in, josh, to the way people are going to view this sector moving forward. Yeah, its been a very tough sector. A lot of the best companies have the worst price in their stock. From a trading perspective what youre looking for here are stocks that are acting better than the pack. Not necessarily the ones that are acting the worst. Maybe not the best way to invest longterm but two names that jump out to me, biogen, stocks have been consolidating most of the time since last october. Looks like it wants to challenge the up limit of that range. Finally have an upward trend in 50day. The other one is bristolmyers which just looks incredible. Stock wants to break out about 73. There are no sellers in this name. Nice accumulation. Everything looks bright from rsi to any other factor you can look at. But price pays and price is in the right direction. Bristol, lilly, pfizer, all great picks. Abb number one for me. Meg look forward to your coverage as well. Steve liesman has some breaking news. Thanks very much. Fed governor saying that a Risk Management approach to Monetary Policy suggests that the fed should wait to raise Interest Rates. She wants to see more data before the rate hike, brainard is a fairly outspoken dove when it comes to the fed and Monetary Policy and raising rates and shes really bouncing on todays data. Bouncing off todays data saying that the data has slowed. Talks about coming down from the 220 three month average to just 116 three month average now and she still sees labor slack in the economy. She knows involuntary part time work has gone up. The Participation Rate has gone down. She goes on to say that the risk to inflation and the growth outlet are both tilted toward the downside. She said theres uncertainty surrounding the brexit vote. She cant rule out adverse nearterm reaction to brexit that could affect the u. S. And possible risk from china remain as well as emerging markets. She goes done on to say conditionsion behind financial turmoil we had. They remain pretty much in place as far as shes concerned. Overall shes progressed towards the feds goals but not enough to warrant a rate hike, scott. Okay so the employment report was a dud. Now if the next one is a dud, or even a disappointment, youve already had people, multiple people on the tape, saying two to three times is appropriate to raise rates this year. Im just wondering why is it that the fed seems so willing to walk itself in to a credibility crisis almost time after time after time. I can hear the conversation coming back front and center if we get into the summer, the midst of the summer, and the jobs report again is bad, and then were wondering why theyre not raising rates when theyve said two to three times multiple times. Scott, when you set out from your home to go to the office, you expect yourself to make progress going towards the office. The Federal Reserve does essentially the same thing. 245i bring Interest Rates down to a level that makes them think theyre putting the economy back on track towards growth. Whats happened repeatedly scott is that that growth has disappointed. Things have happened or some sort of endemic weakness in the global economy, and the u. S. Economy, that keeps derailing this. The fed every morning wakes up and thinks its policy will work. Now, if you ask me what happens when we have another weak july report weak report in june that comes in july, we may stop talking about two or three rate hikes and Start Talking about additional easing here, because youre right, it gets a little confounding in some point but ultimately the fed acts and talks in a way that it expects its policy to work, as policymakers i dont think they can do anything else. Well, i dont know that they need to be so explicit. Especially from multiple people, that, yes, two to three times, now it seems like we should go the next meeting, or the meeting after, things like that. And then right. You back yourself into a corner where the credibility is already being questioned. It is fair enough to say that the world changed a lot at 8 31 this morning, scott. In that before this we were looking at a much higher threemonth average growth rate. We had data that was generally pointing towards a 2. 5 or 3 gdp growth. But then we got the weak ism today through the Service Sector and the very weak jobs report and the negative revisions. The world as they understood it, as a lot of economists understood it is one that said a quarter point is probably warranted here. That case may be off the table. We could go on forever on this. Steve, thanks. Pleasure. Right you guys hear me here i mean i can already sense that this is where the conversation is going to be heading now. If theres youve got ism, under 50. Yep. Jobs horrific. You get another one or more and this was the second jobs report that was horrific. The other one was not well april was a big 160 is not a horrific number. Everybody was looking for over 200. Over 100 is what you need right . Its horrific with 9 unemployment. With 4. Something unemployment its not horrific. Participation dropped again and was revised lower again. Demographically driven. When you look at College Educated unemployment alltime low theres nor nuance to the data. And some of the jobs are not coming back. And some people need to reshuffle it to other areas of the labor market. Its unfortunate. It takes forever. It makes the data sloppier than we would otherwise like it. But this is a gigantic economy, and everythings going to be a little bit sloppy. So i think its one month. Lets not throw ourselves off a bridge. Walmart announcing it will test grocery delivery using uber and lyft. Just one of the initiatives announced today at that Shareholder Meeting. Were live at the event. Plus, were looking for the best ways to make money in real estate and one investor says just follow the jobs. The good jobs, that is. Private Equity InvestorSteve Leblanc is coming up next. Were good. Okay. 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Thats not the way the world works. Well, the worlds changing. Are you asking enough questions about the way your wealth is managed . Wealth management, at charles schwab. Ato speed up your Car Insurance search. R ways heres the latest. fast sound effects problem is, we havent figured out how to reverse it. For now, just log on to compare. Com. Plug in some simple info and get up to 50 free quotes. Choose the lowest and hit purchase. Now. If youll excuse me, im late for an important function. Compare. Com. Saving humanity from high insurance rates. Welcome back, everybody, im sue herera. U. S. Fighter jets launching strikes against isis from the Aircraft Carrier uss truman in the mediterranean sea. This is the first time a u. S. Aircraft carrier targeted areas in the middle east from the mediterranean since the iraq war began back in 2003. Hundreds of families fleeing fallujah as iraqi forces attempt to retake the city after two years under isis rule. People using small boats to cross the u freight tess river to safety, some others attempted to swim across. France hosting top diplomats from the west and arab world to organize a peace conference to launch long dormant israeli peace talks. Secretary of state john kerry says it remains to be seen. And game one of the nba finals between the Golden State Warriors and the Cleveland Cavaliers got a 13. 1 overnight rating for abc. It was the highest game one rating ever, breaking the record set last year, and it was the mostwatched nba game ever on espn. Golden state won 10489. Coming up more halftime, next. Im melissa lee, coming up on power lunch, how to play the gold miners. Plus Florida Governor over the zika outbreak. And later were talking lunch larceny. Wait until you hear how many people say they have had food stolen from them at work. Should be very showstop, simon hobbs, youre going to come on. J. B. Is going to join. Yeah. Lay off my sandwich. All right. Exactly. Ill see you in a bit. All right. Going where the good jobs are. Thats how our next investor looks for the best opportunities to make money. Steve leblanc is the cofounder of a private equity group specializing in commercial real estate. Hes with us live from austin on set today. Good to have you here. Thanks. I couldnt think of a better time on a day where we get a jobs report. How should we read into this report today . So much of what you do focuses on where the good jobs are. Absolutely. And if you look at the economy, s. T. E. M. Jobs, science, technology, engs nearing, mathematics, those are the economies the advanced industry economies driving this economy. If you look at the Unemployment Rate among College Graduates its only 2. 5 . 2. 5 , its half the national average. Thats where the jobs are going. And 50 years ago you had employers decide where employees needed to live. Today, employees decide where employers need to live. Its interesting when i look at and you say this s. T. E. M. Growth job index is what you look at. Science, technology, engineering and mathematics. I said youre based in austin. Not by accident. I suppose. Right. Because thats where your survey says or your index shows the highest level of job growth in those areas. Yes. And the index was built with r. C. Elko one of the three eminent organizations in the nation. It measures not just the s. T. E. M. Job growth but the percentage of College Graduates in the market. More importantly the growth in College Graduates. Where are they moving to . Where are they deciding to go . The quality of life. That drives their decision. They want to go where its a fun place to live and the cost of doing business and the cost of living. You mesh those four together and you create a s. T. E. M. Dex. Its great to talk about reits and things like that in the context of it the fed and where we think Interest Rates are going. What kind of investments are you making now . Well, we like value. Were very deep discount value players. We buy Office Buildings at deep discount replacement cost. We think that protects us against downside. Theres always broken buildings and private equity when you buy a business, its not the maximum amount of ebitda. We buy Office Buildings that arent producing the maximum amount of net income. We fix whats broken, primarily we focus on the rest rooms, common areas, Great Customer service. We put mouthwash, lotion, scent sticks in all of our rest rooms. Isnt that nice . Oh, yeah. Last time you were in an Office Building that was so nice. I go in an Office Building they have these nickel roll of toilet papers locked up. Whos going to steal the damn toilet paper. We just talked about people stealing lunch from your coworker. You never know. We put nice toilet tissue, mouthwash, lotion, we fold the toilet paper in a v so you know the rest rooms been cleaned. Its the little things. Its customer service, knowing where you tenants are. Stephanie how was your vacation. Good to see you back. Welcome to the building back, josh. How are things going. Are you like are you also doing things like i see in aclass buildings in manhattan now, taking space on the floor and creating i dont want to call them play rooms but kind of like these open space lets put in an arcade game, a beer tap, et cetera, are you doing that with the buildings to make work feel a little bit less like work, and encourage a little bit more i guess joy from the millennials that you expect would inhabit this office space . Tenants are absolutely doing that. Youre seeing a lot more open space. Seeing the Square Footage per worker shrink. You know, the average of 10, 15, 20 years ago, 350 square but the common areas more. How are you thinking about commercial real estate right now . Malls . We have a conversation about the weakness in retail all the time. Simon Property Group is on your list. And its held up well relatively speaking in that space. That stock is not that far from its high. Right. It is a dominant player in the mall space. The reits own well over half. 60 , 70 of all the malls in this country, they are the dominant players. Malls are not going away. Theyre being reengineered. Retail is now entertainment. The other space we like, regency is a good stock. I think the grocery anchored retail. I like the idea of being in either grocery stores, or fortress models. Do you worry about them . Some of them will be repurposed. Some of them will be reused. Dollar general is a great stock. But the b and c malls are the way to play the value play in those malls. Thanks for being here. Appreciate it very much. Thank you for your time. Steve leblanc. Coming up walmarts annual Shareholder Meeting just wraps up so whats ahead for the Worlds Largest retailer . We have a debate on that stock just ahead. As we go to break take a look at the halftime portfolio leader board. I promise there it is. Jerry now in first place. A little friday surge. I had to pay off lebenthal. Its working. Hey honey. Huh. The good news is my hypertension is gone. So why would you invest without checking brokercheck . Check your broker with brokercheck. 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. Walmart is rolling out new initiatives. Courtney regular san live at the meeting. Courtney . Hi there, scott. The meeting actually just wrapped up. Can you see the associates here behind me. Walmarts executives are getting ready to sit down with analysts to discuss the strategy behind the billions of dollars the retailer is spending to improve both its store experience as its online experience in order to better compete with a rival like amazon. Walmart spent a lot of time showing off the ways theyre embracing digit allen hansments from samz club to the neighborhood super centers. Walmart will begin testing using uber, lyft and deliv. And feen nix denver, that will start in the next two weeks. Now walmart employees will then shop for the items that are ordered online, request the on demand drivers, make the pickup at the store to deliver right to the shopper. The standard 7 to 10 Delivery Charge will remain the same for shoppers. These are initiatives that are improferriving the digital relationship with customers. Does it have a lot of work to do. It is ecommerce sales growth decelerated for sen of the last eight quarters. And the ceo says that that is too slow. Now emarketer estimate thats only 5 of walmarts total sales come from its online operations. So theres a lot of room potentially to grow there. Walmart is working a lot of ways to cut costs and improve worker productivity. Things like having goods delivered directly from the truck and to the store shelves. And that sim proving worker productivity time and cost. The jd to plow the savings right back into the form of lower prices. And walmart accelerated the price cuts in the First Quarter because as you might remember, the First Quarter was a little stronger than some had expected. Scott . Courtney reagan, thanks so much. Live down at the walmart meeting. I love this. We have a pure debate here. We have two buys and two noes. I like it. I think that theyre competing very effectively against the biggest competitor on the planet which, is of course, amazon. And i think im not sure that lyft and uber deliveries are the weight way for them to go with this. But i love that theyre not just seeding that to amazon, the delive delivery that is. And i naej strategy is going tow volume of to be much more like amazons strategy going forward. Hes shaking his head. Lets hear it. I dont disagree with what john said. I just disagree with what it just smells of desperation. Uber, lyft and have burrittos and selfies. Its like so thirsty. The reality of trying to compete with amazon for anyone, even though walmart he is normous and has great resources, they also have a lot of legacy stuff that amazon doesnt have to worry about like stores, like employees. So i dont think its going to be as easy to turn this thing into a really ecommerce. They may spend a lot of money in the process of trying. Sam walton would roll over many his grave if he saw what the initiatives will bear out which is red ink. A tlost is capturing the low end consumer. If you like the Dollar Stores and you this have to like walmart. You like the stock for a while. I did. A lot is because its so massively underperformed last year. I actually like that theyve already made all the announcements in terms of the investment spend. Now were waiting for it to bear fruit. 1 come notary public a quarter where everyone is blowing up left and right and 1. A traffic is encouraging. Its not where they need to be. I like it. I like 2. 8 . Theyre building their own u. P. S. And fedex. Theyll have the capability to deliver. That walmart has to spend way too much to do. This. They have the largest truck fleet in the country. I agree. But trucks dont make home deliveries. They have the big boxes. They can turn them into distribution centers. They have flexibility and the balance sheet. Its going to take time. Its definitely going to take time. I think you get a 2. 8 yield while you wait. Its not a bad stock. But 16 times and eight times enlt price value, im not sure it has anything higher to go here. John is seeing some bullish activity in the tech name that has him buying n well break down the trade next. Plus, take a look at the biggest movers in the market. There say look at earnings. Owen hey kevin. Hey, fancy seeing you here. Uh, i live right over there actually. Youve been to my place. No, i wasnt. Oh look, you dropped something. Its your resume with a 20 dollar bill taped to it. Thats weird. You want to work for ge too. Hahaha, what . Well were always looking for developers whazo are up for big world changing challenges like making planes, trains and hospitals run better. Why dont you check your new watch and tell me what time i should be there. Oh, i dont hire people. Im a developer. Im gonna need monday off. Again, not my call. Where selfproclaimed ofinancial superstars , pitch you investment opportunities. Ive got a fantastic deal for you gold with the right pool of investors, theres a lot of money to be made. But first, investors must ask the right questions and use the smartcheck challenge to make the right decisions. Youre not even registered; im done with you i can. I can. Savvy investors check their financial pros background by visiting smartcheck. Gov with usaa is awesome. Homeowners insurance Life Insurance automobile insurance i spent 20 years active duty they still refer to me as Gunnery Sergeant when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and im a usaa member for life. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. All right, were back. Power lunch getting under way. This is not the nasdaq. Everything will be okay. Doement worr dont worry. Ill see new just bate. Bullish activity today in a tech name. Doc, what it . Siena, judge. Real strong upside activity. Its from somebody who made a big winning call already. I love following when they basically decide to roll that out again, judge. So what they did was took profit onz a big trade. Then they bought a ton of october calls in siena. You see the october 23 call volume. You in . Yeah, im n basically, judge, trades about 1200 calls a day in the month of may. This one trading 18,000 of these calls today. I think somebody thinks somethings up. They want a big bet. But theyre all the way out to october. So it may not move this weekend. But theyre thinking its going to move over the next several months. Yeah, thats a long way. They had a good quarter last night that they reported. And, frankly, this transfers through to the whole router and switcher space. Its interesting to see them both move. Cisco from the price action looking at the chart, if they can get above 29. 50 that, will be a 52week high. Above 30. 50 is a ten year high. Cisco is looking for a break out. Big movers to day. A jump on the earns, right . Yeah. Its up 8. 5 . It has run into prior resistance. This is a stock in a consolidation for 11 months, scott. It looks like it wants to take out the upper end of that range. Quite possibly co. I would wait for confirmation. Is go pro moofg proving on t too . Not as much. Broadcom, steph . Really good. You own it. I do. Really good quarter. Better gross margin. It is real i didnt think guidance that kind of beat everybody. Took a sigh of relief, if you will. They have a lot of exposure to the iphone. The iphone is going to come sooner than expected for them in terms of buildout. Also the diverse fiction of this company is getting more recognized. 70 of the revenues is coming beyond the iphone and apple. Did you know it was National Donut day . Josh . Where are our donuts on the december snk. I dont know. Thats a good question. A fumble. I cant believe you didnt dress me up as a donut or something. You are still in dunkin . Yes. Im long dnkn. And when you long that name, can you make every day National Donut day. Do you like it over krispy kreme . Yes. Have a great weekend. Have a good one. Power lunch begins now. Josh, your donut costume is waiting on the power lunch set. Well see josh in a few minutes. Welcome to power lunch. Brian, michelle, tyler is all out. Have no fear. Simon hobbs is with me. Scott will join in an hour. We have three hours left in the trading week. These three charts tell the story of the session. Financials, the worst performing sector right now on the back of the lousy jobs report. Kbe having the worst day since january. Take a check on gold rallying big time. It is higher by more than 2 . Of course that, being impacted by the trade in the dollar index. And were seein