Thats the catalyst. Seems to be. This is fed fear front and center. Yes. I am very calmly panicking, scott, which i think is appropriate. No. Whats really going on, biggest decline for the tft going back to 2015. Not big. Less than 3 . Could be worse. Last night on the double line call probably were as widely heard and reported what he said, those who might have missed it. Im going to quote. Interest rates bottomed ebott. May not rightness near term as ive talked about for years, i think its the beginning of something and youre supposed to be defensive. Fine. You see this, people start to freak out or calling a growth scare, i find adorable. The reits will catch a cold. Utilities catch a cold. Thats a big area in the market. What happens if the overall market catch as cold . Tony dwyer suggested a correction. Could be 5 percent pr . I hope that happens. Let me finish my thought. Go back to prebrexit, june 2nd to fi june 22nd. You need fear in the market to work to the upside in the intermediate to longer term. This is perfectly healthy. Doc, will it get worse . Is this the start of something because of the fed what it could do . Start of much higher volatility, judge. What weve been told over and over from the fed the vix already. Did a little. Did a lot of hedging in there for clients and so forth. Like josh, i believe well see Something Like that happen. I mean, that being a selloff. Now, two to three or three to five, like tony dwyer said yesterday, speaking in percent terms, how much he thought the decline would be, thats if its relatively calm. The reaction. I think the fed is out there so aggressively now, for the first time this year steve weiss is right and the fed will move in september. Just on with santelli, in his words a vicious pullback. Yeah. I think you doubled up the size of the move. In other words, instead of three to five, i think six to ten could be the move that you see here. Just at 11 in february. Just did 11 in february. Did anyone lose your life over it . A lot of people are losing their stuff over it. More about yellen sticking the landing. Unorth dokz monetary policies have driven rates to zero and negative across the world, and now investors have reached for yield, moved out on the risk spectrum. We start normalizal Monetary Policy how well are central bankers going to stick that landing . This is about yellen and company even making a landing. Right . The planes come in several times and pulled up and gone back and circled around. And the markets gone up as result. Now, if the plane actually touched down, you could have a problem. One rate hike of 25 basis points a year is normal . What started rates to back up, even yesterday, draghis commentary. Much more hawkish than people expected. Right . People thinking do more. Actually, maybe wont do more. Thats a dove where hawks close. And then today, another new high in rates. Youre seeing a this big rotation into financials, into technology, away from defenses. Exactly what you expect to happen as rates start to back up and the yield curve steepens. Hang on. Liesman is in d. C. Senior economics reporter who did speak with Daniel Tarullo earlier today. A fed governor. Exclusive, but i know he has thoughts on the rosengren comments as well. Steve, wondering if this is the longawaited telegraph and finally clarity that its going to happen . You know, youve got to price it in, scott. Things are getting from confusing to different to understand. What you have is you have rosengren was definitively in favor of rate hikes saying low rates increase the chance of overheating the economy. He goes on to say that a gradual rise in rates is going to support full employment and that anything else could really delay or shorten the expansion here. Meanwhile, Robert Kaplan from dallas says the fed can afford be patient and deliver on raising rates and goes on to say the markets have gotten many notice saying the fact rates may go up. Tarullo you expect maybe more dovish. He was. Had a lot of questions about outlook of inflation, momentum of the economy and then very much in the middle whether or not rates should go up. Heres what he said while consumer spending, for example, has held up pretty well, and there are some indications that maybe Business Investment will finally pick up, at least a little bit, on the other hand, the labor market has basically been flat for a while. Weve had unemployment not going down for a year. Some of the indicators of underemployment have flattened out rather than continuing to improve. So i thought tarullo might have been more convincetive an concerns of raising rates. Did not. Said possibly rates would go up this year. I thought he leaned not september but our voices speaking and more, scott, on monday. Amazing. Maybe you then do have a schism of sorts weve talked about in the fed now, as result of those disappointing isms and now people are saying, well, we should. Then the economy is screaming at some levels, to whatever day of the week you want to pick, maybe he shouldnt. I wonder if youre going to get something in september and maybe you get a kaplan or whoever as a dissenter on the other side for the first time in a long time . You could. You know, its a very close call at this point. I think the markets, though, dont see it that way. Last i checked the chance of a september rate hike was quite low, although there is a substantial chance of a rate hike this year. Thats the better bet. What najarian is saying there, what josh is saying, i think you have to be on the edge of your seat on this one going in, and well wait to see. By the way, a Third Quarter cnbc rapid update runs 3 suggesting the economy is in the middle of receipt bound the 23ed was waiting for. Go to the airport. Got to catch a flight. Appreciate you doing this for us. Jim, so steve says we should be on the edge of our seat. We should. Were not supposed to be, because the fed is supposed to telegraph this enough that its not going to be a shock. Yeah. I mean, youve been saying that add nos yum ad nauseam but thats no were seeing. Rosengrens comments are effective because hes the first, in my opinion, made it clear its not data dependent. Hes worried about things unforeseen. What hes throwing a bone is those people, im one of them, who think the housing bubble of 0607 was created by a too easy, too laxed fed Monetary Policy nap to me is what hes saying but the first one to really leave out the data dependency here and thats why we should be on the edge of our seats. Rich sapperstein what do you tell your clients to do today . The fundamentals are weak. Weve had three years of no change in earnings per share. S p, ps, 118. Ebitda declining on the s p for three years also. Markets been going higher. Time to be cautious. What were doing now is moving capital. We moved it out of the equity markets, and we are moving into middle maturity corporate bonds, below Investment Grade. Getting out of stocks in a big way. Holding cash . Did that in q1. Reduced from 50 to 40 . Still 40 invested, but we think its time to be cautious. Even 50 below Investment Grade corporates are going to act like equities in a negative market environment. Are they not . Not where the theyre cash flow coverage. Interest rate high on buying short term. Go to a high yield. I dont suggest defaults but volatility. Id rather own the yield, get lets say the 2 to 3 yield on that capital versus exposing it right now with the uncertainty of elections, eps, ism, all the factor, occurring right now showing weakness to us. We want to protect capital. Remember, our clients dont need to get rich. They need to stay rich. Rich, on this just below Investment Grade and i inserted the word just below Investment Grade talking double bs, maybe triple bs. Low single as. Correct, and where the value is in the two to the seven yeear. Industrial companies . Oil, drillers, we like financials, by the way. We think inflation is underpriced in this market on the base effect of rising commodity prices. Lows were about december, january. So were going to see a base effect increase there. Were seeing wages starting to leech higher. So inflation is underpriced in the market now. Debt though, you dont want optionality of the bank et kw k equities . Banks, utilities, right. Discussed this previously. Sure. We like the banks, because the ten year is trading like it wants to go higher. Right. We added banks. Right. So the ten year is trading like it wants to go higher. Overall market trading like it wants to go lower. Banks could still get cheaper in an environment, guys where stocks pull back . Right . If theres a correction, its not like the markets going to correct. 9 banks stocks rip . Relative, outperform. I think. As a matter of fact, they are, as technology. As are the cyclicals versus defenses. Look at staples, utilities, telecom, hammered today, but a lot of green in the Financial Sector and makes sense. Again, the yield curve is steepening and obviously the ten year is backing up. To the point, i mean, nobody has been pricing in the possibility of a september rate hike. I think rosengren puts it on the table today. A lot of people saying maybe not this year for a rate hike. On the margins, the idea Interest Rate for banks pick up this year thats pushing them into the grave. Maybe 2. 5 , 3 gdp, loan growth, and margin and operating leverage. And the price target goes to 70 today from 72. Not surprising. Say its our valuation challenging rate environment remains even if rates go up a quarter point. Not like theyre going out of control unless the fed completely loses control of the curve. Its barely down on that news today and if the yield curve starts to go in favor of this group, then jpmorgan will participate. It will be more defensive versus say a bnk of america much more beta and more tied to rates. But i think this is a quality company. Quality Balance Sheet. Great yield. This is what you want in financials, and so i think if this pulls back you want to buy t. Charles schwab in that category . Etrade, schwab, all of them. You own wells. The stink on that one is fierce today, right . Selling is down. Still own it and our firm owns it. We like it long term but, yeah, thats not, obviously not good news and the stocks not cheap. Hard to defend it here but if it were to pull back along with the group, this is the group you want to be in. Every quarter we rebalance for that uit as well as etf work doing now, and we took out wells for this particular next quarter, and replaced it with jpmorgan. We thought that, you know, it made sense before having it the opposite way took jpmorgan out. Now putting them back in. What do i want to do with sectors like energy . Buy them. Yeah . I mean, if fed raises, dollar goes higher. Dont buy the ones you need to borrow. Oil lower. I think well, i think the dollar why would energy continue to perform in that environment . Oil could pull back if the dollar goes up materially dont you think it does if the fed raises. It might. Its in a trading range. Listen to what draghi said yesterday. Maybe growth will impreserve internationally, globally, not so bad for the demand side. Supply we know about. You dont think the European Market believes that today . We dont really know. I mean, rates look, our rates backed up when their rates started to. Jgb. Look at the global spectrum. On this energy thing, saying it all year. Youre right to bring up the dollar. Right to bring up the fed. What matters more than anything, how much is above ground . Still have the rig count increasing, Shale Oil Producers starting to pick it up again. Apaches big discovery in the west. Theres a lot of oil out there, and its just the fundamentals of supply and demand pushing the price lower. You think we get a sizable correction . Like tony dwyer says, maybe 5 . You think its bigger than that . You think were ripe for something to be worried about . I think the biggest risk for the market right now is continued weakness in ism and new orders. And that will lead to weaker eps, because the markets trading at levels where its expecting hire e eps. And if that occurs markets will go down. You think we have a recession on the horizon . No. But i think we are not growing as fast as the monetary authorities would have expected. And so theyre going to now start changing or tinkering with what theyre doing, and thats going to cause more vol and likely lower stock prices. If the market goes down say 5 , that correction. Do you take your 40 stock position and do you raise it . Are you a buyer in that environment or still remain on the sidelines . Depends on what causes it to go down. If its fundamental economic weakness, no. But if its just volatility based on fed changing fedinduced volatility . Im comfortable with the fed normalizing policy. The problem is they dont have policy normalized, penalizing savers and large parts of the economy now. You wanted to make a last point . The only things i wanted to say is, i know youve been in the world of investing a long time, rich. I think there are plenty of times i can remember at least where you have these punkish lousy ism surveys and theyre something to worry about with the economy but the market still rallies in the face of it. I think thats probably whats going to happen here. Uhhuh. Simp willy because were late in the year and a lot of Money Managers are chasing benchmarks buying in a dip. Not a fundamental call. Its a very technical call. Right. Unless theyre trying to preserve capital and not make it worse that it has been. I dont think youll see a correction. To answer directly. I dont see a correction happening in the next three months. The last word. Good to see you. Hightowers rich salverstein joining us. Next up, big name, on the Halftime Report, founder and chief Investment Officer of corvex, a Major Energy Company is live after the break. First, though, take you to the market picture on this friday. Not a pretty one. Its ugly on the street. Dow down 236. 1. 25. S p down nearly 1. 5 . Back after this. Ncial su rst 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 [phone buzzing] some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. The suv that dares to go beyond utility. This is the pursuit of perfection. Were back on the Halftime Report. Stepping up a fights with Pipeline Company williams. Last night Enterprise Products withdrew a bid for williams saying the company failed to engage that news not sitting with with one of the largest shareholders and recently quit the board. Joining us live in a halftime exclusive. Nice to have you on. Thanks for having me. Enterprise tried to engage with williams. Williams gave the company the heisman. Williams says, no. Thats not true. We were considering actively considering the bid. Who do you believe today . Well, ive been one of the largest shareholders five years served on the board over a year and a half, resigned in late june with the view that i didnt think it was the right management of the company and right leadership of the board in that i could be more effective from outside the board. Im very skeptical of this board and said publicly i dont think its the right people, i dont think its the a team on the board and williams deserves to have an a team and im having a proxy fight about Good Governance and williams having the best nine, best 12, best 13, whatever the number is, the best people to represent shareholders, because things like enterprise will come up and you need to have a board thats qualified to respond. Are you saying, you sound skeptical that you believe that williams engaged in any way, shape or form with enterprise as it says it did . Look i dont know what happened. Im skeptical that there was constructive engagement, but the facts are its facts. Enterprise is a worldclass company with a pristine representation who put out a public press release saying malt moll postals, because of lack of engagement and no actionable path forward, denied a wonderful opportunity. It very well may be. This is an industry where scale, cost to capital, synergies, expertise makes tremendous sense. The combination of enterprise and williams a complementary as compared to competitor the assets. Look at success of another merger this week, these companies are building multibillion dollar needed Infrastructure Projects where you need an Investment GradeBalance Sheet and get rewarded for taking those cash flows and passing them on to shareholders or unit holders in the form of dividends. Enterprise has a strong Balance Sheet and in a healthy place. Williams because of strategic missteps over the past five years is off sides. They can get back to the right place. Maybe thats a path. Or get more value engaging with enterprise today and getting back on sides more quickly and having more opportunity to access for capital to invest in itself and grow. Are you concerned that enterprise was trying to get williams on the cheap . Reports trying to get a less than 10 premium . Does that jive with you . I mean you like those terms . So i dont know thinking about the specifics of the terms. To me its not about whos buying who and what the terms are. Look, the williams board should get the best deal possible for williams shareholders and im for that. Aye am not an enterprise shareholder, im a williams shareholder. Step back, combine a plus b, one and one, you get more than two. Ebitda, and williams has to rethain share of ebitda and pay down debt. Together they could pass the cash flows on as predictable, reliable dividends to shareholders. I think the world would like that. I suggest the company engage and figure whether its a merger of equals, whether its a purchase. Whatever the form, figure how to Work Together to get the best deal possible and have two options to present to shareholders. This deal or status quo. Am i surprised . No. I do not believe that the sixth legacy incumbent directors are the right people to engage in this kind of analysis, and when they say they were surprised, think about that. Theyre surprised and the other guy, another guy wants to buy. A failed process. The good news is, i want to focus on the positive, and one of the reasons i came on the show, share what i intend to do. That was next, anyway. Lets hear. Right. So my goal on monday is to send an open letter to the new directors. Because while i dont know Scott Sheffield or Stephen Bergstrom or bill met stephen the first time coincidentally yesterday. Ill keep the specifics between us. Three new directors, even though i dont know them well they have reputations, experience and qualifications i believe are appropriate to be on the board of a 50 billion company like was. I say, guys, thank you joining as share holder. Thrilled to have you. Used to have six or eight directors, stepped down. Now three new directors i hope. The six who stepped down stepped down because we didnt have the power to effect change. I believe the three new directors with me out with a proxy for november 23rd have tremendous power. You didnt sign up for this or realize what you were signing up for. Had you reached out to me or other directors or the advisers, you probably would have learned lots of this, but thats water under the bridge. Youre now on the board. Theres 750 million shares outstanding, shes shareholders are counting on you and looking to you for leadership. You lead great companies, and i believe you have lots of power. May say, were new, just getting up to speed, try to have a copout, but unfortunately were counting on you guys. You cant do that. What im going to do is reach out to the three new directors and beg for their help on behalf of all shareholders and ill ask them to do a lot like what Frank Mcginnis and zsugg did, get informed, meet with shareholders. Do a road show. Hear their opinions. Get informed. Reach out, get your own Investment Bankers. Meet we those Investment Bankers without management present. I suggest form their own Strategic Review committee and were counting on you. You didnt want to have to do the work now you do and your represent tanations at risk and know youll do the right thing. Did a great job last time. Move quickly. Two years of knowledge. Reach out to them. A tail on their fee, im certain. What standard industry is. Paid anyway. Call them, say help us. Get us unto speed. Talk to the lawyers without management present. Im confident then that youll see the value, and say to enterprise, were willing to talk, willing to do a deal if it makes sense. Give us a little time, not a lot, to get up to speed and youll deal with scott, steve and bill and well come back to you and there will be a deal to be done it if makes sense for williams share holderses. You may run a proxy fight, youre returning one, but you may, sounds like youre going to give these three new board member as chance to prove themselves before you make a decision to take control of the entire board, throw the whole, try and throw the whole board overboard, and take control of the whole thing . Yeah, look. I have no reason to believe that Scott Sheffield or Steve Bergstrom or big spence are not capable of being worldclass directors and im more hopeful than any they are. I want them to step up, form a Strategic Review committee and drive the process. Either way on november 23rd ill have a proxy contest about getting more people that look like scott, steve and bill on the board and have a company with worldclass directors with worldclass assets have a true potential. My proxy, is about Good Governance. Theres a flaw here. Much as i dont want to do this. Maybe in too deep for too long. I know what happened last time. I know despite what williams says in its press releases, my opinions, my belief, the other six directors dont care about whats going in the best interests of shareholders per se. I dont buy that. Thats why me and six others stepped under the board. Thats water under the bridge. We have an opportunity. So thankful enterprise went public yesterday. Who cares whos right or wrong . Clearly they werent talking well to each other. Shareholders can goethe benefit talking well in the future. Scott, steve and bill can fix this and shareholders are counting on you. Get advisers, form a committee, tell enterprise youre going the work when youre up to speed youre excited to engage and then have a debate with shareholders and im thrilled to have a debate with you privately. Scott, threated to go on your show with them and debate and go through the merits, why deal with enterprise . Create more value than the status quo. Shouldnt do it in public but in private and do it in a manner that gets the best deal for williams shareholders. We invited the ceo on to join us with you or after you, before you, whatever. They declined our invitation. Wanted to at least get that out there. Is there under any scenario, keith, where you could envision yourself going back on the board . Did you feel like you lost any leverage by leaving the board in the first place . Look, i will tell you i have no intention. There is no scenario whereby either myself or anyone else at corvex would intend to go back on the board for any meaningful period of time, period, but we believe there are enough highquality people who arent about corvex or any other shareholders but all williams shareholde shareholders, represent the company and do the right thing. We dont think the six legacy directors are those people. The three new directors, they have the credentials. Let them lead the charge, not have to wait to november 23rd. On november 23rd augment them with a handful of new additional qualified directors but we had six great directors a year ago. They went out and engage pd didnt want to sell williams. Met with shareholders. Heard there was value to combination. A combination is not necessarily about a sale. These are stock deals. Synergies. Value gets shared. Lets do whats right for williams shareholders and i think when you engage in that there is a transaction with enterprise better than having a standalone williams with a nonInvestment GradeBalance Sheet having to retain earnings and not pay dividends to pay for past cycle mistakes. I got to run in a second, keith, but stocks at 30. Call it 30 even. Whats a fair price for this deal if it can get done . Whats a number . Your head makes sense . To me this isnt about price. This is about obviously ultimately the boards have to come to that determination. Its an engagingened a figure a way to combine these businesses creating short term, medium term and longterm for shareholder. I think there is. If, scott, steve and bill take the charge, engage in those up to speed, work independent of management and drive and frankly do more than they signed up to but have to because their represent aces are on the line. A deal that creates value for everyone. Appreciate the time, as always. Thank you. Of corvex. Steph, you own williams. What do you want to see happen here . A fairly new position. I love what i heard there. An activist holding the management accountable or at least getting them more accountable. A lot of selfhelp this company can do. One way you can win. Second way is maybe they do get something done with m a. Have decent assets in natural gas. Thats ar area i wanted it to very exposure as well. Valuation makes sense from an e ebb it to ebitda basis. Something will happen, theyll create shareholder value and i want to be a part of that all right. Breaks news or General Motors. Sue herera with the headlines. We know General Motors saying it will recall nearly 4. 3 million vehicles worldwide for a software defect that can, it says, in rare instances prevent the air bags from deploying during a crash. That issue has been linked to one death and three injuries. Heres what the automaker says. They are recalling newer trucks, cars and savannuvs froms 2014 t6 model years but do not list specific models. Go to the website or Transportation Safety administration for that. A diagnostic module controlling the air bags deployment which has a software problem, a defect if they are in that particular mode would prevent the air bag from deploying. Again, its linked to one death and three injuries. Its 4. 3 million vehicles worldwide theyre recalling. Back to you. Sue herera there. Stock down 2 . Mr. Shareholder . Yeah, well, the bad news is thats a large number of cars to recall, 4. 3 million. The good news is, this sounds like a Simple Software fix. The wild card here is what sue just said, one death and three injuries. I hope thats all it is. These tends tend 20 trickle out, news out in the weeks after. Hope thats all the damage done. Obviously none of us wants deaths or injuries. Before the break, a sector check. A tough day for stocks as you know. There it is across the board. Dows down 239 points. S p down 1. 5 . Its a loss of nearly 32 points. More halftime in two. Hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade every great startup begins with a simple idea. But with growth comes complexity. Thats why so many innovators are on the ibm cloud. Like refinery 29, with nearly a billion views a year. Or runkeeper, a training app used by over 50 million runners. Or Game Developers whose popularity depends on launching new updates fast. Helping to keep a companys success uncomplicated thats what the ibm cloud is built for. Everyone thought i was crazy to open a hotel here. Everyone said its so hard to be a musician, but i cant imagine doing anything else. Now that the train makes it easier to get here, the neighborhood is really changing. Im always hopping on the train, running all over portland. I have to go wherever the work is. Trains with innovative Siemens Technology help keep cities moving, so neighborhoods and businesses can prosper. I can book 3 or 4 gigs on a good weekend. Im booked solid for weeks. It takes ingenuity to make it in the big city. All right. I want to show you where markets stand at this hour. Were prit it much hanging out at the same levels. Dow down 233 points. Is the worst day for stocks since june 27th. The worst day in some 51 trading sessions. Its been that long since prebrexit that weve seen a day like this on wall street. Well continue to follow it, of course. Lets do our traders blitz ow. First up, harley davisson. Outperform at bernstein . Josh. No thanks. About to break below its 50 day. A stock, look a great company, i love the bikes all that, but the truth is, the market for these products is not grown. Its shrinking. Financing picture is more difficult and a huge glut of these machines on the market that have to get sold before they can sell more product. Stock cut in half from 2014 to 2016. Retraced half. Now rolling over again. You do not buy this updrad. Restoration hardware, steph . Beat on the top. Street loves it. Down 55 year to day. Thats why i said the industry loves it today. Thats right. I dont know. I mean, look, a fine quarter. They did pull in a lot of revenues for the Third Quarter to the second quarter. Now giving that back next quarter. I cant get excited. Gross margins better. Down less than people thought. Samestore sales down 3 . A ton of initiatives under way the fix the company. On the right path but it will take time. Im not chasing it. Seagate. Yeah. Supposedly seagate went out and recruited. I cant remember this ever happening with an activist being invited in. But thats exactly what happened here. 9. 5 million shares almost 4 of the company goes over to valueact, and i guess they try to compete more aggressively against wdc now. Have a good story. Jimmy, kroger. Once a darling of wall street. Whats happened . A tough industry, scott. A very low margin industry. Hypercompetitive. This particular stock has been stuck in a range of 30 to 40 almost two years now and now threatening to go below that range. Better be careful here. Yes, an acontractive valuation, but unlike a lot of the other Consumer Staples not much consumer dividend yield. May not be done with the decline. Coming up, unusual activity with guess who . Who . You, jon najarian. And jam kramcre jim cramer join. Cautious given whats happening. Talk about the documentary he did on 9 11 when we come back. Ok team, what if 30,000 people download the new app . Were good. Okay. What if a Million People download the new app . Were good. Five million . Good. We scale on demand. Hybrid infrastructure, boom. Ok. What if 30 Million People download the app . Were not good. Were total heroes. Scale on demand with the Number One Company in cloud infrastructure. Hewlett packard enterprise. [ala m beeping] the highly advanced audi a4. Hey, everybody. Brian sullivan. Whats coming up on power lunch, if 40 to 50 is the new reality, where should you invest . Maybe not texas or north dakota. How about right here . Live in Oklahoma City with a big show. President of ges oil and gas division and all over this market selloff. Dividends getting whacked. And nuke test in north korea. What does that mean for emerges markets and your money . Talk about that as well as we are live in the sooner state. A lot to do on a big market day. Power lunch coming up right after Halftime Report. See you after this, two mince. Two minutes. Announcer Halftime Report with scott wapner is the place for marketmoving interviews. You dont call a company a sewer because the company made a mistake. Announcer real money we are short both tesla and solar city. Announcer real debates. People think that globalization has hurt businesses. Its not. It is technology thats hurt businesses. S ps around 2165. Market fair but fully valued. Announcer the most profitable hour of the trading day. I love this show all i do is get to tweet about this show im on the show. This is like the greatest moment of my life announcer the Halftime Report. Weekdays at noon eastern. Mapping the oceans. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the global economy. And you thought we just made the gas. Energy lives here. Were back on the Halftime Report. Unusual activity. Doc what are you watching . Nvax. Novavax. Yep. Getting love and fast today. The stock moving up. A lot of people jumping on the stock. A lot of chat room chatter about it. And then they rolled from the 9s in september out to the 9 calls in october. A phase three trial, judge, youre expecting something to happen within the next, lets say, 60 days or so. So somebody picked october as the time frame. Its about 16 out of the money. Normal turnover in this thing is about 4,000 call days. Already traded 17,500. So theyre obviously betting something happens. Youre in it . Yes, i am. In call spreads in this one. Long the seven, short the nines. Trouble on the high seas in the wake of a bankruptcy last see. Denied access at ports, could mean 14 billion worth of cargo stranded right before the Holiday Shopping season. A take on this . I know you guys are watching this. Yeah. All of my exercise equipment is on one of those containers. So come to my house. All my protein shakes. Do you have an extra treadmill . Absolutely. Excuse why youre not going to the gym . What do you want me to do, scott . Seriously, though, one of the most cyclical i am being serious, jim. Sorry. Sorry im laughing. Heres why its really important, though. Because with this bankruptcy, you cant just pull into ports, because nobody will unload the cargo. Meg brennan was talking about that earliers in other words, you have to pay for it twice, judge. Morgan, brennan, meg, morgan so youre going to have to pay for it twice, if you want it unloaded. A great segment, scott. Vendors like in the retail world. The vendors probably would see higher costs. A columbia sports, nike. Keep an eye on those. Most companies at the barclays, excuse me, golden conference this week didnt say they saw impact yet. Its still early. Could effect the rails, Kansas City Southern or if you want to call it something else, judge, but ksu, take a look at that one. Look at some of the shippers, too. News in swift today because their ceo is stepping out but that could be one of the Trucking Companies that could be impacted. Jb hunt, the others. Less to unload, in other words, thats bad for these guys. It also doubled up on the cost of a container to move from china over to here. And Morgan Freeman . Did you say done. Moving on. All right. Run you through areas in the markets give didnt is the worst day in 51 trading days. Worst day for stocks since late june. Show you Home Builders today. Down 3 . Reits are falling. Prospect of higher rates. Weighing on that sector. Airlines under pressure forward and then the semiconductors are a weak spot as well. More halftime back in two minutes with jim cramer. Hat a re . Its a great school, but is it the right the one for her . Is this really any better than the one you got last year . If we consolidate suppliers whats the savings there . So should we go with the 467 horsepower . Or is a 423 enough . Good question. You ask a lot of good questions. I think we should move you into our new fund. Ok. Sure. But are you asking enough about how your wealth is managed . Wealth management, at charles schwab. 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. A moment of silence today at the New York Stock Exchange marking 15 years since the terrorist attacks on the World Trade Center. Today, Lower Manhattan is back and open for business. Mad money jim cramers wonderful documentary will reair sunday september 11th. Jim is back with us today. I cant believe its 15 years. I know. I mean, its like 15 years 1941 to 1956 as pearl harbor day for a lot of people who were not around. One world trade, scott, more than just a big new office building. I tried to focus on the forward, not just the backwards. It had to be one of the safest. Take a look at why this has to be. The unique safety features inside one world trade are a key reason it costs 3. 9 billion, 2 billion more than any other skyscraper in the world. It was designed precisely to survive a 9 11 type attack, which makes it both a shield and a bulls eye. The World Trade Center remains a target. Remains a target for the al qaeda groups, for isis reporter don berelli spent 25 years with the fbi and helped lead new york citys Antiterrorism Task force after 9 11. Hes now an nbc news analyst. Do you think there have been any Credible Threats even during the time of the building of this . Lots. Reporter lots . I would say lots. I got to tell you, hes a total heavyweight, was the chief investigator of the whole situation. People in Law Enforcement love this guy. Says the biggest threat is one that no amount of preparation can completely eliminate, which is the lone wolf threat. While we were doing the documentary, we have an unbelievable documentary team here, three separate terrible soft target incidents made it so that it was quite obvious that the tower could be a target, but so is nice, so is orlando, so is brussels. So as we got through the documentary over many months, i felt less fearful but not necessarily because the tower doesnt instill that, but because you should be fearful everywhere. Thats not the american way. Right. But im saying and fearful i dont mean as much as vigilant. And don was saying if were vigilant and we call, and we see, america calls and sees, other countries, they dont. They overlook. Don total heavyweight guy. Just thought you succeeded in capturing the right tone in the way that you and the team did this documentary. Not an easy subject to tackle with some of the subject matter that you had to talk about, whether its the new retail down there. But you succeeded in doing that. And thats why people should watch this documentary if you havent seen it. Thank you. I know you had some good tweets. Thank you for everybodys support. Thank you. Every word was chosen carefully of the words that i spoke. And then every inflection was chosen carefully because we want to show respect. Okay. This is about showing respect and remembrance. And to be able to think forward should not necessarily be anything other than a measure of our resilience, not a measure of our success. Okay. This is not about commercial success, its not about the beautiful kate spade store in the oculus, its about our resilience against the bad guys and remembrance for the good guys. If you havent seen it, check it out. If youve seen it already, check it out again. Its called ground zero rising, freedom vs fear 10 00 p. M. Eastern sunday here on cnbc. Well be right back. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Now businesses can get were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Its a very specific moment, the launch window. We have to be very precise. If were not ready when the planets are perfectly aligned, thats it. We need really tight temperature controls. Engineering, aerodynamics a split second too long could mean scrapping it all and starting over. Propulsion, Structural AnalysisMaple Bourbon caramel. Thats what were working on right now. From design through production, Siemens Technology helps manufacturers meet critical deadlines. I think thisll be our biggest flavor yet. When you only have one shot, you need a whole lot of ingenuity. The worst day in 50 looks like that, Dow Jones Industrial average down 243 points, thereabouts. Jim, its the worst day since june, for stocks. Is this the start of something more . I dont know. I mean, steph worked with me for a long time and we had to raise a lot of cash. One of the reasons why we did is because were willing to forgo a couple of percentage points. I feel people arent prepped and havent looked at what happened in december. You had a down, then a stable then a real down. With vix finally going to 15, but why not miss a couple upside points and bet that they do take action . I noticed what you sold though, Something Like a p g. Yeah. And kraft heinz. I love p g, its 3 yield. I know, but youll get it back i mean, 3 yield, thats great. And going to 1. 0 on the ten yrp, but going to 2. 0 on the tenyear, we know theres a lot of bias to get the rates up for whatever reason we were talking during the break, right . Whats your signal to buy back . Is it down more or is it a new high . Lets take clorox and skyworks. Clorox if it went below 120 i would suddenly have the yield protection. Skyworks, at a certain point this is kind of like seagate which we just heard about and kind of like western digital. If theyre going to be six, seven times earnings and apple is still going to have bad numbers, ill take a stand. But not yet. Let me ask you, people obviously remember, you know, they know nothing about the fed of some years back, you know, precrisis time. Do you think the fed has a good handle on where we are . And what do you think happens in a couple weeks . Well, i think they have a good handle on the idea theyve made up their mind to tell everyone. I mean, when you have stan fisher tell Steve Liesman with that elk, i mean, i wanted im not a hunter, but i wanted to yeah, listen to stan fisher, get so angry because hes basically saying, listen, it could be two hikes. It makes me angry because were obviously, i think, not set up for two hikes in the economy. In the stock market are we set up for one . A great point, whether we might not be set up for anything in the stock market. Right. In the stock market were set up for nothing. In the economy i think were set up for one because were at emergency levels. Im not calling for a rate hike. I listen people come on say rate hike is good. If you like stocks and you have a stock portfolio, which a lot of people who watch the show tend to have, its bad for you. Thats okay. You cant have them do everything that we love. Bad doesnt have to be catastrophic though, right . Interesting point of view is whether youre going to have dramatic falling out of bed if they raise or bad like immediately. I mean, look, were so not used to down 1 , we think its catastrophic. No, we go down 3 , 4 ahead of this, you know, okay. Okay. We forget. Do you remember january . It was as january goes you should forget about the market . Lets bring in a little more of that fear. Get the vix up to a little bit higher. Recognize that these levels of the Consumer Products come on, steph. 2. 3 does not protect you. Im there with you. You want to like kelloggs, yeah. You get 2. 6. What is at 2. 6 . Thanks for being here. The 2. 6 seconds overboard right now. Thank you, guys. Power lunch begins now. And we will gladly give you those seconds any day of the week, scott, jim and the fast money halftime crew. Welcome everybody to power lunch. Im tyler mathisen. This is a day unlike any other weve seen in a couple months on wall street. Heres whats on the menu today. Summer seemingly over now on wall street. Fear is back. Stocks are falling today triple digits, as signs say Interest Rates could finally be on the rise. Big bank downgrade, the wells fargo fine leading one top bank analyst to sla