S p, nasdaq positive. Big story, though. What bond yields are doing today following that big spike in the yield on the tenyear note. Pulling back just a bit. Maybe giving some feeling of ease to investors today. Pete, boy, the commentary yesterday after delivering alpha was mostly negative from the biggest investors. How do you see the landscape . Volatility is back. Volatility is back. You follow it so closely. Weve seen an explosive move out of it. Weve been talking all the way back to july about this low grinding volatility and the fact that weve been trading on the vix between 11 and 13, and finally, we get the big spike this past week. We got a big spike in volume because people are back and now they want to be involved in the markets. I think theres enough concerns out there, scott. When you really look at whats going on, they delivered at this delivering alpha a lot of really gray clouds, didnt they . There was not a whole lot coming out of there. Bill miller stood out for me the most, and the reason i say that is he is one of the most bullish bulls. He talked about the s p 500, and the like the fact that he did calculate out some very individualized names. It was amazon and some of the airlines. He really did pull out. I think delta is his favorite right now of the airlines. When you really look at what bill was saying, he certainly didnt sound like everybody else. He seemed like he was looking through glasses completely different than everybody else at the conference. Heres a good point then. Is it a bill miller market or a paul singer market . Paul singer was among the most negative speakers of the entire day, talked about the possibility of bonds and stocks going down together that the risks now its getting dangerous. Let me put it this way. Bull, who is a great investor, has been a great investor for a long time, ledger investor, has a different perspective. He is a long only investor. He is a long only equity investor. If you look at the perspective of the other investors, whether its paul singer or its dalio or carl icahn, they come at it frr a more holistic way. Theyre looking at bonds. Theyre looking at the credit portfolio. Theyre looking at the spread. The tenyear over the high yield. Theyre saying not so much that were looking at a valuation, but theyre looking at theres nothing out there to buy. Thats what resonates for me of all the Hedge Fund Managers that i have talked to and investors. I cant find anything where theres a compelling riskreward. I can only find very, very little. Its not that markets overall are overvalued. They come to that almost from bottoms up scenario. Individual securities, individual asset classes. Im just not finding whats worth the risk. The question is whether were going to have some kind of meaningful pullback, correction, reset. However you want to phrase it. You think we will. Your target on the s p for the end of the year is 2000. Its the lowest of the major firms that we find on the street. I think the right thing to say is theres a lot of caution mongsz investors. If you look at which parts of the market have rallied it and done well so far this year, within equities, within s ps, its your low tstocks, your yied plays, right. They are trading at record valuations, and theres a lot of need for volume to stay low in order for the markets to keep these levels. The reason for our ka us is basically linked to the fact that theres perhaps a little bitcomplacency. I would watch for further correction and take advantage of that to turn slightly more constructive. Fundamentals are improving, but, you know, from fairly low levels, but i would say prices have ran ahead. There has been a reliance, and thats an understatement of Epic Proportions on Central Banks around the world. Heres paul singer yesterday from delivering alpha on what the impact of that has been and what it could be as they pull back. What they have done is created a tremendous increase in hidden risk. Its a risk that investors dont know or have faced about their holdings, and i think its a very dangerous time in the Global Economy and Global Financial markets. Tell you, part of john Singer Agency comments yesterday sent the yield on the tenyear ripping. Almost at that very moment. That pulled stocks down. Whats the most important thing to watch today . Its something were not talking about at all, scott, which is earnings. Weve been talking about Interest Rates for a long time, says and, look, i do think at 1. 7, 1. 75 on the tenyear, there is a natural tether with which Interest Rates are around the world. Im not going to worry about Interest Rates rising too much from where they are now. What i am worried about is earnings because this market the stock market really is priced for a second half pickup in earnings that should crescendo into 2017. We really need to see that. Well get the Third Quarter earnings season coming up in a few weeks. We need to see confirmation that the Earnings Growth is resuming after two years of flat earnings to justify the stock market where it is. You think the fed moves this month, next week . What is the whats at the heart of your risk in the market . You see what a 6 pullback from where we are now. Thats a good correction. The risk that i think we face number one is volatility. You mentioned equity volatility has been close to record lows the last two months. Its been in line with bond volatility. Not very typical. If vol starts to pick up, that could trigger a series of deleveraging events. Just to give you one example, systematic strategies. Theyre currently at 97, 98th percent ill. Very low. Longer than they were prebrexit. Any sort of pickup in equity vol likely results in some type of deleveraging and puts pressure on the market, and the other part we need to watch. I think thats a fair question. We need to see on the 21st of this month what happens to bank of japan. Do they continue to provide further evaluation. If yield spikes up, that could pressurize the market. You think a pickup in volatility is going to scare people and force them to sell . Not immediately, but what it will do is it will likely result in further deleveraging, and that could then eventually start to scare people, you know, result in negative sentiment, pickup in risk aversion. Ill make this quick, but to your question, i see a lot of retail flow. Speak to a lot of clients. Volatility does scare them. Certainly saw that in january, february. A lot of people did decide to sell out or at least reduce risk right at the wrong time. As we see volatility. It does scare people. We would have had kags prior to the election in any case. We would have had some caution. Theyre reacting because theyre active managers, even if they have a longterm view. Theyre reacting to what happened on friday and what happened friday was basically the fed threw the playbook out and said we dont care about data anymore. The three data points, both pmis and the jobs report, were negative. I will push back with you on this. Why did he talk about hidden risk this time . These people were warning about dangers within the market well before the fed on friday said very true. We may raise rates next month. Very true. The hidden risk that i think mr. Singer addressed very accurately in that clip that we played is exactly that you just changed the game plan, and the volatility that you are talking about, that just got reintroduced in a big way, and the volatility that jim is saying that his clients are worried about, its much bigger moves when you are at a 12 level. Its much easier to get a 40 move in vol than when you are at 22. Youre not going to see very many 40 moves when you are at 22 for the vix, but when you are at 12, its an easy move just as it was last some will have you believe that you should go long the s p, and you should short the tenyear treasury. But he is an equity guy. Right . Thats thats where a lot of people watching our program are. Whats the better call . To go long the s p now or short . We always talk individual stocks. Broader market trend. I think clearly if you take a look at history, you are going to see that the equity risk premium on the s p, which means that when its safest to buy, when you get paid most to buy on the s p, says is not at an attractive level. If you take a look at the valuation, meaning the yield and sovereigns, thats even more unattractive. If you have to put money in one place or the other, you are going to put it in the s p. If you take a look at whats happened with the rates, you can just say in terms of central bank, we havent really talked about this, if the u. S. Is not easy anymore, its a question when theyre going to tighten. Theyre not buyers. The ecb has said there are no more sovereigns to buy. Thats why were buying corporated. We dont know what japan has done. Theyre going to run out of their own debt to buy in the next year to 18 months. Theyre talking about buying equities as the ecb maybe. Theres no more Central Bank Buying of sovereign debt. Those yields cant go down. Theyve got to go up for that reason alone. If i can add a few thoughts. Please. You look at japan, government yields. You look at bond yields. If you look at even treasuries from a foreign currency perspective, theyve all basically hit skblzero or negat territory. Thats had spillover effect into equities. I referred to this term low vol. Its basically sustainable income stocks. Stocks that provide the 2. 5 , 3 income with decent balance sheet. Thats what has driven the market. If you look at the multiple price, its rerated quite a lot, but if you start looking beneath the surface, we estimate almost entire rerating of the multiple comes from a select 50 to 100 stocks. You freeze those, multiple has not changed this year. Thats i think when they refer to hidden risk, thats one of the risks they might be alluding to. Utilities, telcos, staples, safe havens, unchanged. If you go back a couple of years also, utilities have continued to outperform. Then you had health care the one sector also you say those are the places to get out. Exactly. Rotate from. Because theyve been the biggest beneficiaries of these macrotrends off central bank policies, falling yields. The market is exactly where it was last may. 15 months ago. Theres been no movement in the s p. Pete, if you are inclined to be a bill miller guy which i am. Im listening to these guys, and theyre talking about, well, all the money has been in these places, and theyve been performing. Yeah, i do think theres a rotation. Thats why i am not sure why youre quite as bearish because if theres a rotation out of those and theyre still going to be looking for equities and still looking for yields, sounds to me like youre telling me, look, tech, that sounds like a great place to be still. The semisounds like a great place to be still. There are places out there where valuations are great, the yields are fantastic, the Balance Sheets are incredible. By the way, many of them are still growing. If you look across and you look at what the earning season told us, there is growth. There was a low bar. You want to answer it . Just based upon the if i was in 1900, 1800, 1700. 2,000 means i expect some form of rotation Going Forward. Roughly a sideways moving market. Areas that have benefitted from a lot of these policies might be at a relative disadvantage in other parts of the market be it hek or health care. I think its an attractive sector. You could continue to see this. We saw 6 in january alone. Right. So are you just looking for a slow drip, or are you looking for that one event you just dont know when its going to happen for that vol spike . I think september. What im looking for is perhaps the next few days. Up until september 21st. Theres a lot of us going into bank of japan meeting, and theres some im not sure exactly whether rettic Going Forward. Will the degree of compensation resist or will they turn marginally less dovish . It could be higher, and you could continue to see further pressure in the market. Thats the rusk that im thinking. Do you think the market is complacent at that point . I think there is some complace ensy, both from a yield point of view and as we were talking earlier, from an equity vol point of view. If it normalizes, that could just mean some deleveraging, some parts of the market get flushed out, and then i would say perhaps turn slightly more constructive. As weve heard from others, tony dwyer who was with us, looking for maybe 5 pullback and then it becomes attractive. Big Money Managers out there are looking for the same kind of thing so they can actually get money to work. Thanks foreign coming out here. Thank you. Head of u. S. Equity strategy. Heres whats coming up on the Halftime Report. Apple picking up steam. The stock is up big since monday. Still time to plug in . Carl icahn making headlines at dlirg alpha. Lets not confuse stock market and the economy. I know maybe you dont want to hear this, but, you know, stocks can go down. Carl icahn hitting the markets, the fed, politics, and, of course, the herbal life trade. Before the break, if you think higher Interest Rates mean a drop for stocks, check this out. Our partners at kensho show when tenyear kreelds yields rise above 2 in the same month, the s p 500 rose 10 on average. Semiconductors, materials, energy, and industrials were top performers. For more on that, go to cnbc. Com pro. More halftime with scott wapner in two minutes. Builds an appliance, they put everything they know into it. But once its sold, there usually isnt a way to keep improving that product. Today, whirlpool can analyze iot sensor data from connected appliances on the ibm cloud. So they can continuously learn how customers are using their products. And how the machines respond. Harnessing data to make great products better thats what the ibm cloud is built for. This is the new comfort food. Harnessing data to make great products better and it starts with foster farms simply raised chicken. California grown with no antibiotics ever. Lets get comfortable with our food again. We are back. Take a look at the stocks of apple. They have been soaring. The rally has legs. Five reasons why apple is still skrening by. Theres the list. Samsungs most recent woes. Pete, among them its definitely. Quite a move. I think the samsung thing is becoming bigger and bigger. You look at the ecosystem. They point that out. I think that the most important thi thing, after they released some of the specifics about the phones and so forth, we all know the phone, the big percentage of what that really is for apple still. When you look at the phones and you look at the process or and you talk about its more water resistant than water proof. Its absolutely i think its cutting edge technology. Its much Better Technology than they had in the past. I know you disagree. Ill tell you what, i think that is whats propelling this. Thats why youre seeing record numbers at t mobile and sprint, and you start looking around. Why is there so many preorders . Because theres a difference. The phone itself looks the same, but what the phone is capable of doing, including the camera, which actually does replace the need virtually to have a regular camera, scott. Now the phone truly has this dual camera that actually is a difference maker as well. You still maintain thats not innovation to you . How can be it innovation when samsung and its innovation for apple. Samsung had the dual camera. Lg had the water resistance. That has been the story. Its something weve gone back and forth for a long time. Years now. Thats been the story for apple forever wru forever. They make things better. That becomes innovative after some time. I dont know that they made it better. Really . I think they did. The battery life. The processing speed. Their own chip in there. Yes. You can tell me that youve compared it to samsungs camera. You compared. You dont know if theyve made it better. Its innovative for apple, and i get that. It gives you a reason to upgrade your iphone. Now, i get that. The numbers are so blatantly good for the apple preorders, theres going to be a mystery behind that. Now, look its not a mystery. We just talked about it. Thats not the mystery. Its a mystery to you, about the it is a mystery to me. Clearly. Look at the numbers. I think i dont have anything how about the fact of the pods and everything else. How long has it been since you have carried a camera . Forever. Okay. Give me a reason not to carry a camera. I see it in times square all the time. Youre going to continue to why has the stock been running the way it has been . Well, because its what i talked about too, judge. It is that these damn things wear out. Its not true that you can take that thing for four years. In a year and a half the haptic is shot on my iphones because im a heavy user. Anybody else who is a heavy user and thats an awful lot of the people that are devotees of this country, are wearing the things out. Also, says when you have the things that pete talks about, stereo speakers built into it, the much faster processor, the a10 fusion, much faster processor. I would say i mean, for instance, when i got on the plane today, steven, you know what they said. Hi, john. Hi, john. Buckle your seat belt. Welcome aboard. Heres your bloody mary, sir. When i got on the plane welcome to teeterboro. Please do not power on any samsung 7. Please do not charge any samsung device on this plane. I get that. I get that. Clearly its better than the samsung. Attractive valuations. Asps, theyre looking for higher prices. Something that youre sort of talking about. Also the december boost that the stock may get into the holiday. Right. And as you know, apple doesnt release these numbers. The numbers were seeing right now are from tmobile. Tmobile, great carrier. One of the smaller players. Great carrier. Good carrier. Were talking five years. Its one big i love john and what he has done. Let me purse some stuff out. We dont know if theyll be around in five. Were missing that for a year the stock has been in the doldrums, and the shares have been changing hands. Everybody who road the growth wave in apple, it more than doubled from mid 2013 to mid 2015. Then it had to go through a yearlong process of changing hands from growth to value investors. Thats done. Everybody is now looking at the valuation and saying 12 times, 10 1 2 times if you strip out the cash . Were all in. Nobody is selling it anymore. Theres only buyers. This stock is going higher, just like it did after the selloff in late 2012. What did we talk about last week . If you get a chance this thing slams down to 105 which it did, well reload with more of the 110 call spreads. Im not looking for it to go to 115 and 120. Would that be great . Sure, it would. Im looking for just that little 5 pop to the up side. Now weve had it from 105, actually, to 112 so weve had a 7 pop. Im very happy with that, and i think if you invest right just to be clear, im not a bear on apple. Im not negative on apple. I think its a great company. I just say that its not this tremendous Growth Company anymore, and they still do lack innovation. Theyve innovated and they have upgrades. The big innovation will hopefully come with the anniversary model, and theyre right to save a lot of that innovation. It is a cheap stock. Its a perennial cheap stock. I disagree. I think its the same value story it was i year ago and a year before that actually less of it because they dont have the growth they had. So it will trend up, and theres some momentum. Okay. Put the bag back on the shelf. Why Morgan Stanley thinks the recent pain for retailer coach is just beginning. The call of the day is next. Plus, much more from delivering alpha, including my conversation with carl icahn. Alpha is not gone. Alpha hasnt disappeared. Weve had three quarters of consistent outflows and hedge funds, and everybody thinks, you know, says my gosh, whats happening . Is it its fine. Its fine. Capital is shifting. This massive move to indexing from a trading point of view has changed the way stocks trade. My strategy has always been longer term. One to two years out. If im a manager, i have to start looking further out if i want to generate alpha. Hedge Fund Strategies are cyclical. What weve seen of late is a function of crowding into certain strategies. Places that a manager can create an advantage in the past are also disappearing. Eventually the strong survive, and, by the way, its not a bad time to have a weeding out of people who, you know, arent the best stock pickers. Now that fedex has helped us simplify our ecommerce, we could focus on bigger issues, like our passive aggressive environment. Were not passive aggressive. Hey, hey, hey, there are no bad suggestions here. No matter how lame they are. Well said, ann. Ive always admired how you just say whats in your head, without thinking. Very brave. Good point ted. Youre living proof that looks arent everything. Thank you. Welcome. So, fedex helped simplify our ecommerce business and this is not a passive aggressive environment. I just wanted to say, you guys are doing a great job. Whats that supposed to mean . Fedex. Helping Small Business simplify ecommerce. Remember here at ally, nothing stops us from doing right by our customers. Whos with me . Im in. Im in. Im in. Im in. One, two, wait, wait. Wait wheres tina . Doing the hand thing . Yep we are all in for our customers. Ally. Do it right. Zbliefrmt were back. Coach shares under pressure after a downgrade to sell from Morgan Stanley. The firm questioning if a sustainable turnaround is actually taking place. Its our call of the day. What do you make of this . What do you make of it . I think this is such a tricky sector to invest in. I take a look at cores and i see another stock that really hasnt been doing anything. What are we going to do, break from coach into coors . Its the same thing all over. Its hard to decide where the fashion trend is going. Yeartodate the stock is up 8 . People have been clearing betting that the turnaround is taking place. They raise questions, and he this say our definition of a turnaround is sales growth with stable margins or stable sales with negative is it down side to our unchanged 3 price target. We move to underweight. Coach has not delivered on whoo they say their definition of turnaround is. Again, to my point, this is just a really tough sector to invest in, and unless you really have a fashion sense and you have the inside scoop on where the next trend is going, i stay away from these things. Same thing with kate spade. Its another stock that goes nowhere as theres a circular rotation from one name to the other as theyre perceived to have the nets next greatest thing. Thats why exactly i jumped into kate spade. Its not just a recent trade, as jim knows where. Because you carry your bags yourself. Exactly. Its called a man purse. No, i jumped into this kate spade on the big selloff. If coach had a big selloff, jim, i would jump into that. Its not had. 88 cents. Come on. When kate spade went from the low 20s to 15, judge, or 14, thats when i jumped in. Still hold it today. They only have two sells. This call becomes one of those. They have 19 buys and 13 holds among the analysts who follow the space. It has a fat yield on it. If you are looking, which you dont typically see in retail, other than some of the broad lines, look, we had numbers come out from hermes, and the numbers were good from last quarter, but Going Forward the guidance was squishy. Mont blanc coach in the same category as those . No, im not. Coach is thought of as a luxury brand, and its not a luxury brand. Its a betweener brand like michael kors, and those are too fickle. Fashion, with the internet and online, it seems to move a lot quicker, and it is very, very fickle as the shoppers are. I would stay away from it. I this its too difficult to play. We do have to give a disclaimer. Before john talks about fashion, we have to do a closeup on his tie. Take a look for yourself. All right. It is just past 12 30 on the east coast, and heres where markets stand. Take a look at the major averages Holding Steady from where we began the program 30 minutes ago. The Dow Jones Industrial average at 18, 131. Its a gain of 65 points. Onethird of 1 . The s p is at 2,135. Nearly half a percent gabe. Nasdaq, the outperformer today at 5,196. Sue herrera has the latest for us. Hi, scott. Thanks so much. Heres whats happening. Fords chief, mark fields, says all of the companys small car production will be leaving the u. S. And heading to mexico over the next two to three years. He made the comment to wall street analysts at an Investor Conference hosted by the company. Two of the syria men believed to be sent to germany by isis leaving a federal court of germany today. They were detained along with another syrian after a series of raids the day are. The three described as part of a possible sleeper cell by authorities. British Prime Minister theresa may says controls will be imposed on the movement of people from the European Union to the united kingdom, but she refused to confirm that e. U. Citizens and none. U. Citizens will be treated the same under postbrexit immigration rules. Once again, the worlds Busiest Airport is Hartsfield Jackson in atlanta. It moved a recordbreaking 100 million passengers last year. Thats according to an airport trade association. The airport is within a twohour flight of 80 of the u. S. Population. Youre uptodate. Thats the news update this hour. Scottie, back to you. Zoo all right, sue. Thanks. Casino stocks are on a roll after a bullish call. Plus, options, activity pointing to a big rally in one commodity etf. The nagarians are on the case, and theyre doing it coming up. Energy is a complex challenge. People want power. And power plants account for more than a third of energyrelated carbon emissions. The challenge is to capture the emissions before theyre released into the atmosphere. Exxonmobil is a leader in carbon capture. Our team is working to make this technology better, more affordable so it can reduce emissions around the world. Thats what were working on right now. Energy lives here. With dand bold styling to to stay ahead of the curve. The lexus rx, rx hybrid and rx f sport. This is the rx, elevated. This is the pursuit of perfection. Zbliefrmt welcome back. The always entertaining and enlightening carl icahn at the sixth annual delivering alpha conference yesterday. Heres a look and a listen. I would think there are tremendous risks, but i think anyone who is going to tell you its going to go down tomorrow, next week, even next month or next year, its sort of a guessing game, but you could look at the environment and i think its very dangerous. In other words, you walk on a ledge, and you might make it to the end, but, hey, you fall off that ledge, youre going to really see trouble. If you dont raise Interest Rates, i think were in a major bubble. If you dont have jobs and you dont have people working, sooner or later this blows up. You know, it blows up in so many different fashions, but its simplistic. Our economy is not doing well. Im not here to sell herbalife. I have permission to go to 35 , and heres a secret for your show. Ive asked permission ive gone to the fcc to get accelerated treatment for the right to go to 50 . They make some good products, i believe. I personally dont like the drink. I drank it. It gave me a lot of gas. I didnt like it. But a lot of people love the damn drink. Yeah. He doesnt disappoint a crowd. Thats for sure. A couple of things. We talked at the top of the show about the market anxiety that so many of these legendary investors are feeling and talking about. Now, what about his point specifically on the Interest Rate question . Okay, you had jamie dimon this week saying you should go ahead and do it. Ray dalio said dont do it. He disagrees. You have asymmetric risks. Icahn says if you dont do it, youre going to be in this tremendous bubble, and thats a thought that was somewhat echoed, i think, this week by i think eric rosengren. Maybe it was one of the other fed officials who said it. The point was made about these bubbles and rates. Whats the right call here . I think they should do it because you dont know. Right now you can do it. The market has essentially done it for you with backing up rates globally. Its almost like the fed has a freebie. That theres even though the odds of doing it according to fed funds futures have come down dramatically, i dont think the market would be surprised if you did it. 25 bips isnt going to throw anybody over the edge. Its not going to impact any real asset class. 25 bits, you are at historically rock bottom rates. I say do it. This comment that he made, in other words, you are walking on a ledge, and you might make it to the end, but you fall off that ledge, youre going to really see trouble. I think that could well be. Its not that big of a drop. Im just going to ek tend metaphor and what steve was saying here is what you are implying and i am agreeing with that its one and done. I dont care if they go in december. Theyre going to be on hold six to nine months after that. The economy globally isnt Strong Enough to support a rate hike campaign, which if it this were 2006 and you had ben bernanke raising a quarter point every meeting, then you would have a very sharp dropoff off that ledge. Right now its just 25 bates points. Its nothing. Ill extend it a little further from metaphors. Theyre walking on a ledge, but theyre on the first floor. I mean, you know what im saying, scott . When you really look at this thing, look at where we are with the rates. This quarter point, like you say, were at record lows. We go a quarter point. If that really is going to mess up the market and get us to get some sort of an 8 selloff or some crazy thing, then i think it will create some opportunities because that would be an overreaction of the markets once again. Listening to everybody yesterday at delivering alpha, its basically an inside of what it looks like at the fed, right . You have guys who want to raise. You have guys who dont think you should raise, and everybody has their opinion, and theyve got good strong arguments. To your point, steven, i dont think it rocks the boat as much as people expect. Look at it this way. Were not at crisis lives in the economy anymore. Look at how far employment has gone. To think that you still need crisis level rates, i think, is ridiculous. Give a nod to the market. Give a nod to the economy. Things are improving. Go that 25. The herbalife, last time i checked it was up 6 . Maybe its come off that a bit. On this notion that he could go up to 50 , and even entertaining the idea of a tender offer at one point. He says he has thought about it, considered it. Theres herbalife today. You look at the short. Thats obviously a factor at what were looking at, which is a a little more than a 4 move to the p up side. The percentages that carl was throwing around and even talking about potential of this thing even being private he said it would be better off private. Not having to deal with all this that certainly makes a lot of people start to think, and how committed would this be, this whole process, when people are sitting there with this big short position that theyre on right now in herbalife. He is still at 20 . He has to go to 35. He has not bought maybe he bought a few hundred shares in bretts names. How many traders do you know say i think its going to be private or i filed to go up to 50 when they havent bought any additional shares. Im advertising to the market so i can buy at a higher price to get to 50 . Right. But the flip side of that would be isnt that a shot across the bow more than anything else . Would you want to be on the other side of the potential of that . No, but my point is i dont think he has any intention to go to 50 or any intention necessarily to go to 30 . I think he is doing the short squeeze. If you go back to what is going on in the markets, if you go back to what he did with conseco and irwin jacobs where he was on the other side and allegedly had a 22 Short Interest, in 2000, 2001, and it was mentioned by ackman when you did that famous thing on january 25th. He is on the other side. He did what he said no professional would do. He had a similar size Short Interest in a company, and jacobs was squeezing him. Conseco went brought, and it worked out. Its a great way to squeeze the shorts. It was provocative icahn, as usual. Apple soaring since monday. Up almost 10 , as we said, and john is tracking some unusual options activity in a stock thats benefitting from that jump. First, michelle car reduka russa has a look on whats coming up. Coming up at the top of the hour on power lunch delivering alpha delivered a lot of fear. Many of the worlds top investors ringing the alarm bells. Are things really that bad . Two big reasons why tim cook is literally dancing today. And the rich closing their wa walle wallets. What it means to the economy and highend luxury. Power at the top of the hour. The Halftime Report with scott wapner is the place for market moving interviews. You dont call a company a sewer because the company made a mistake. Real money. Here i am. Building a jet engine. Weve been hearing so much about how youre a digital company, so you can see our confusion. Ge is an Industrial Company that actually builds worldchanging machines. Machines that can also communicate digitally. Like robots. Did you build that robot . Thats not a robot, thats my coworker earl. He builds jet engines with his human hands. What about that robot . That is a vending machine, ricky. John, give him a dollar. [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. 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. Back on the Halftime Report. Well at the telestrator for the options market. What do you see . Take a look at this one. It pains me to say it because jim has it in his halftime po portfol portfolio. Good for you, jim. I see unusual activity at the 60 strike in october. The stock has been moving like this. Its been moving like that because of at least some because of apple and with this good news from apple, take a look at these calls theyre buying. Theyre buying the 60 called in october. Those are 5 out of the money. Theyve already moved up from yesterday right around that 55 cent level. Take a look, judge. Already pushing to a buck right now. I bought them. Ill probably hold them for at least two weeks. Okay. Good stuff. Pete. Im talking about silver, and the reason im bringing that up is the sl skr, some huge activity. You got this great view. You can see this huge ramp off, but weve been sort of choppy ever since. Even maybe a little downward. Here we are right there. The interesting thing i think Going Forward is somebody decided to come in today. The 18. 5 calls october going out and buying those 7,500 of those. Paying 41 cents. Interesting to keep an eye on that, and the reason its even more interesting is then theyre also buying in silver. Slw. When theyre buying calls in both, the expectation is we might see the metals start to move to the upside in the next couple of weeks. It was shorter term. These are out to october. The others were september 23rd. You still like the metals, the miners, gold miners, things like that. Im holding on to gld, and i also had a previous slv. I added slw, silver wheaton today as well. Because i just sold out of it last week, had some good profits. I think theres going to be more coming. I want to get back in. Im in both. Yes, silver and gold. The brothers negarian with unusual activity. Well stick with commodities, though. Copper surging to a threeweek high today. Jackie deangeles at the nymex with the futures now traders. Good afternoon, scott wrs. Were seeing a 2. 5 move to the upside. We talked about that china data a little bit earlier. Is that whats driving the move in copper . Yeah, thats it, absolutely, jackie. Copper is an industrial metal. The numbers out of china were good. The bank loans were good. The industrial number was good. The thing is copper has held some pretty good levels. It hasnt sold off. I think that the numbers coming out of china while not great, theyre not as bad as everybody thinks they are. Bob, can the momentum in the copper trade continue . Well, you know, china not only is the Largest Consumer of copper, but theyre also the largest producer. Thats interesting. The same way that the u. S. Is the marginal producer of crude oil, china is also the marginal producer of copper. This is an interesting story. Copper has been an awful trade. You couldnt buy it down that low without some sort of catalyst. We got that catalyst. A 2. 5 move in copper is huge. Thats definitely Short Covering as well. If it doesnt get back below 214. Expect more futures now. Futures now. Cnbc. Com. Jackie, thanks so much. A surge. Shares are jumping on news from the fda. Thats coming up next. Plus, cracks at cracker barrel. The stock is on the move after weak guidance. The trades are just ahead in the blitz. Im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. Theres no one road out there. No one surface. No one speed. No one way of driving on each and every road. But there is one car that can conquer them all. The mercedesbenz cclass. Five driving modes let you customize the steering, shift points, and suspension to fit the mood youre in. And the road youre on. The 2016 cclass. Lease the c300 for 369 a month at your local mercedesbenz dealer. All right, lets do our trader blitz now. First up, ford unveiling a new growth plan today. A bunch of thoughts on ford. I prefer gm to ford because they seem to be a little bit ahead of the curve on autonomous driving vehicles. But you can own ford here and one of the things to note, they are as was reported earlier moving small car production to mexico, where they get their least profits from small cars. So it makes a lot of sense to ship it to mexico. There is a lot of Cyclical Companies like railcars that have done the same thing to pick up their profits on low margin metal bending industries. This is a good move for ford. Cracker barrel is lower. They missed on the top to bottom line cut guidance as well. They missed by a penny on the earnings, not that bad. But you cut the q1 and go to full year and cut that as well, people wont like that. 7 back now. 7 back now. I still like this stock. You look at the valuation, the yield, this is a name i think can grow back into the level where we hit those 180s again. I think this is a buy. Las vegas sands upgraded docket argus, the stock up 3 . And at the end of august, we cited on this show, the 26month losing streak as far as revenue was declining every month for 26 straight months. They broke that streak at the end of august, mpel, wynn and mgm and lvs all have made moves since then. And argus gives them a recognition of that today, stock moving up nice on the heavy volume. Serepta soaring after the announcement that the fda long critical of one of the companys drugs, a member there has departed. Look at that move. You owned it. You warned of the risks that have existed here all along. The stock could easily go up 25 or down 25 on any given moment. Yeah, actually could double from here if they get approval. The controversy is that the fda panel had not approved the drug, this is for muscular dystrophy, for younger people. But the commission of the fda, i believe, is going to come out and overrule the panel and approve it. And then hopefully happens by the end of september. The individual parkous was one of the main obstacles on the panel, he left to go to another company, so clearly thats why this stock is up. Steve made a great call on this one earlier, got us into it. I have no position in it right now, but it was a great call by steve and we said wash, rinse, repeat. Every time you get this chance in this stock, because it is giving you two or three of them this year where it slams down that big risk that he talks about, and it has been a screaming buy each time and you get moves like today. I do own some puts. Deep out of the money puts, deeper out, i keep losing money in the puts, thats okay. Thats your insurance policy, thats why you buy the protection when it is cheap. You dont complain when you dont die. Some others do, but not you. Okay. Just three hours left to the market close. Cut his mike. Your final trades are next. Plus, wells fargo down 5 in the past week after revelations that employees open fraudulent customer accounts. Could this be a buying opportunity for the stock . Halftime report back after this. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Tell me, how do you like to learn . Songs are my favorite ooh elmo likes songs puzzles me love puzzles. Well. Puzzles are a great memorization too dinosaurs yess puppies ooh i love puppies so do, i. Actually. Pets can teach important lessons abou dancing elmo loves to dance. Okay then, lets dance. everybody cheers yeah baby wells fargo shares under pressure over the past few days after it revealed employees opened unauthorized accounts for clients to hit sale s targets. We know running a business that not everyone is going to do everything right every minute of every day. Thats why you build compliance programs. That why you do training. Thats why you do coaching. And unfortunately, 1,000, 1 of the 100,000 in a seat at any one time in the year, you know, they didnt get it right. All right. Damaging to the banks reputation . Among other things. What do you do with the stock today . I think you buy it. Stock has corrected almost 20 . It has the best financial metrics of any big bank out there. If you want to take a look at textbook in terms of how to handle Something Like this, you do it exactly like theyre doing it. You dont hide, you meet it head on, they have gotten rid of the people that were involved. Undoubtedly it is damaging. If you look at volkswagen, since the beginning of the year, it is apple, ford and gm. Dont know when they go takes another leg down and there will be some reverberations throughout the customer base, but at the end of the day, it is the highest quality Bank Franchise out there, with the best metrics. If you want an opportunity, this is how you get the opportunity. You agree . I dont. I agree with everything except that this is the time to buy because this is the election season, this scandal is catniped to politicians. There is going to be another leg down when he has to appear in front of the senate and explain this. Youll get another opportunity. We said it last week, were putting together another of those uits. We have to do it every quarter and rebalance for what will eventually be an etf as well. And we took out wells fargo before the news broke. Luckily. And then we said, were going with jamie dimon, were going with jpm. And now it looks like you could be getting to a level where you could, you know, perhaps do a little horse trading there, but this is a portfolio we put together over months and years rather than just, you know, week to week. Pete . You like wells . I tend to lean with jimmy on this one. I think the worst isnt completely over. But, you know, we never are going to buy the absolute bottom. I think there say little further to go, especially when you get in front of, you know, you start going through all the different hoops that theyre going to have to jump through in the next couple of weeks, that will give us better opportunity to buy. What i caution, but it is going to be Elizabeth Warren wont just pick on wells, shell pick on the whole sector. This is so finite, the way it was just described even by stumpf himself or whatever, so finite, a thousand versus the 100,000, all the rest of it. I dont know it permeates throughout the rest of the banking industry. I think you nibble at it here. And then you look to put a full position on. It is on sale. You cant find quality franchises on sale, we see time and time again, the wells scandal, buy it. Something quick on disney . It is a quiet period now before earnings, before the next star wars comes out. I think it is going to bottom soon. It is a 92. I think it bottoms before 90. All right. Good stuff, guys. Thanks. Thanks to all of you for watching. See you tomorrow. Power starts now. It certainly does, scott, thank you very much. Gentlemen, thank you. Im tyler mathisen. Welcome to power lunch. Delivering doom and gloom, we heard a lot of that coming out of this years delivering alpha yesterday in new york city. But are things actually as bad, as ominous as some of the suggestions from yesterday . Were going to dig in on that. And too little too late, thats the message from one high profile banker sounding off on that wells fargo scandal. And dancing tim. Well tell you why apples tim cook, yes, he can shake it, has every reason to shake it like a maniac. Power lunch starts right now. Maniac on the floor