Quh chair and keep acts as a chil. The question is, what happens now . With us for the hour today josh brown, jim, courtney gibson, Carrie Firestone is here as well, ceo of arius asset management. From toronto, kevin oleary. Josh, i go to you. While some are calling this first week chaotic. S p is up 1 . Dow is up better than that. Closed over 20,000 for the first time ever. Yeah. Investors seem to like what theyre getting. Its so much more than the u. S. Market story. Youve got just incredible performance around the world. You have global pmis, surprising routinely to the upside. The best ratio of positive to negive the surprises. You have to go whack to before the financial crisis. All of this is happening in concert. And so i think when you look beyond just u. S. Stocks and you say is there optimism around the world about the economy . Even if were not all thrilled with evenry political headline, i think you would have to conclude that, yes, people feel like there are some things that are going to go right now that no one was counting on and that is reflecting in share prices. Courtney, first chance to speak with you since the election or since the oath of office by the president. What do you think of the first week and what do you think its going to mean for the market . Im not quite sure if the market is saying, oh, were loving what were seeing other than the fact that the market likes consistency and they like to know where youre going directionally. And trump said he was going to do certain things and hes been in the office a week and i dont know if its six or seven executive orders that have come down. Hes doing exactly what he told the public he was going to do. Like it or not. Well, the market seems to like it. They like consistency. They like to know what someone is doing. And i think thats very key. He said exactly what he was going to do before he got elected and hes executing on it as much as we can see. I think thats exactly right. There was so much uncertainty for so long, going into the election, and then there was even a lot of stuff going on between the election and if t. Inauguration. Now weve got a week of the new president. You dont have to like his policies or agree with them but hes absolutely doing what he said he would do and i think to courtneys point investors, a lot of uncertainty. But its the agenda that the market is happy with or seems to be as well. Is that what they told you . You dont think that . Well, we comp a lot of Institutional Investors and right now everyone is kind of i dont know if if this rally is a he retail rally but the institutional clients that we have are not moving based on these policies. Not the long only active investors. We have some quaunts that are moving based on technical signals and i know shs josh, thats right up your alley. Were seeing folks waiting to make sure that the positions and the movements theyre making in their portfolios are for the long term, not based on one tweet here or one tweet there or what they think might happen. My point of this conversation though is that the tweets and all the other stuff are not so relevant. Its the tax cuts. Yeah. Its the infrastructure, its the regulation. If they get implement sxwled i was on a plane the other day, from San Francisco to boston. I watched Halftime Report. And the crowd here was it good . You were not. No worries. Everyone was so euphoric and high on the market i thought that you were going to be leaving on winks. So we need to have a little bit of sensitivity to the fact that there hasnt yet been a tax cut. We dont have deregular lagtion everything yet. We dont have an environment of grks dp at 4 . It was less than expected. Im worried that people who are pundits, not just retail investor, too optimistic right now in the market today and the market yesterday is not following through. You cant argue with the optics though. First full weekday, business day in office he sat there in the morning around a boardroom table surrounded by some of the most influential ceos in the this country. Absolutely. But weve had a runup. Remember, on november 8th to today the market has moved up 8 1 2 . Financials have moved up must have more than that. Its not as if its been ignored. And i think that we have to be careful that buying here into the names that have moved the highest and those sectors may be a little premature. We may need to pull out. I think what youre saying is the distinction between the optic which you call it which are valid in saying they are positive for the market and the fundamentals. The fundamentals may be temporary. Gdp was light. A lot of that was expected because of the trade deficit which in my opinion is exporting growth over seas. Lets see how the first half of this year comes in. The other item that sense august has been propelling the market is the belief the earnings recession is over. So far you know really this is the first full week of earnings. Im unimpressed. Im not depressed but im unimpressed by the earnings so far. Yes, theyre growing but not rapidly enough to propel the market higher from here. Next week will be a bigger week for earnings. Im hoping to get more impetus from the market as well. Growing from what they were doing last year. Which supports the market, scott. Which supports it. But it doesnt propel it higher. Youre right, they are growing better than last year. But that just gives a floor to the market. Recession before. The earning recession was a misnomer. S p 500 was flat for two years. Solidly flat. You could call that a recession. Maybe im quibbling with the word choice. Were seeing growth, just not the growth thats going to propel the market higher. Kevin oleary, why dont you weigh in . You know what i think . This is all p expansion. When you talk about animal spirits, trump has unleashed them. The risk in the market is i argue 25 higher than it was december 8th because no earning estimates in any sectors have been bumped up for any reason at all. And as noted earlier, no change in the Regulatory Environment for Financial Services which was a big part of the move in the s p. I spoke with some Institutional Investors and sovereign investors this morning in europe, what they were doing for allocation in u. S. Holdings. These are very large sovereign funds. Theyre moving more into the russell 2,000 with the theory being they dont know the outcome of the protectionist taxation in theern many borders are concerned about whats going to happen on our policies in nafta and they say that if you buy straight domestic russell 2,000 revenue you have no risk of taxation result of that. So theres a new tonality, the concern is you dont know whats going to happen with mexico and canada and britain and other g7 countries as trump goes through this. So to derisk the portfolio theyre going smaller cap which is the first time ive ever seen that happen. Yeah. You want to make a point . Well, theyre derisking the portfolio by buying the russell now at 23 times earnings. Our clients moved into that much a little while ago. As soon as trump came into office. If you werent focused on those u. S. Focused companies. Let me finish my thought. Ive been buying small cap stocks the entire time, since they were 12 times earnings and couldnt get arrested. Look, we run an Asset Allocation model, various different types. At the end of the day i think diversification is starting to help investors global, small versus large, value versus growth. Having exposure to factors and different geographies is no longer a drag. It is becoming additive to performance. Thats the first time ive been able to look into the camera and say that maybe in three or four years. So, yes, we can have concerns about s p, about valuation, et cetera. But there are a lot of places where you can make money right now as an investor. Hasnt been the case in a while. Thats exciting. One of the things, scott, this is really important i hope so. No. Gallop poll just put out fernl financial Assessments Survey for right now 66 of the americans think theyre going to be better off a year from now than they are today. 49 think theyre better off now than they were a year ago. This is a huge uptick in terms of just the way people feel about t this not personal, footba financial situation. When you say animal spirit and too much optimism, its not just about optimism on wall street. Theres a lot of optimism. For whatever reason, this is going to have a read through effect to the way people allocate their portfolios for the balance of the year. This is not the type of data that turns on a dime or a week or a month. I think as a backdrop we should understand people are feeling better about their own personal financial situations. Millions and millions of people, not a handful of us on a desk in new jersey. Moments ago british Prime Minister theresa may arrived at the white house. First foreign leader to visit President Trump since he took that office. Johnarwood is there with what we canxpect today. John . Scott, i think what youre going to see is President Trump and theresa may trying to lay the groundwork for a bilateral trade deal between the two countries. Theyre people who feel a kinship with each other because of the nationalist sentiments that propelled both of them to power. Theresa may following the brexit vote. Donald trump in novembers election, the u. S. uk special relationship is one that they are underscoring with this first visit. But it also comes against the backdrop of the heightened tensions with mexico, possibility of a trade war, that i think is worrisome to many people in economies around the world. And so all of that is going to be on the table. You had theresa may yesterday when she was at the republican retreat cautioning about the security obligations to of nato countries to protect places like the baltics, to threats from russia. Of course President Trump is going to talk by phone with Vladimir Putin tomorrow. All of that is i think going to be on the table for this meeting. Yeah, you mentioned, john, the relationship between the United States and mexico and how it certainly is strained and how the tensions between the two countries are we main high over President Trumps plans for a border wall and who will pay for it. Mexicos president as you know by now cancelinglans for a visit next week. Heres the former mexican pres ent, vicente fox, this morning on squawk. We get this ceo trump coming on, coming in to sit in the president ial chair and keep acting as a child, as a ceo of his corporations, making deals, he says, but he in reality is making mad everybody, like it happened with mexico. For fatally president pena stood up, faced him, and con sell can the visit. Michelle Caruso Cabrera also for us today on the white house lawn. The comments from vicente fox not a surprise. You noted in the last hour the difference in optics you expect today from the british Prime Minister and what we had in the last many days regarding mexico. A deep contract. Honor guard, arrival for the british Prime Minister. Very, very warm welcome. In the meantime, the Mexican Foreign minister was here for the last two days. They held a News Conference last night after the meetings here at the white house. They were at their embassy. And this was a somber, angry at times News Conference, explaining here they were in the white house planning the protocol for president enrique penas visit on tuesday when President Trumps tweet went out saying if they dont want to pay for the wall maybe we should cancel the visit. They stopped the meeting right away. They were very angry. They called the president back in mexico. And it set off what has now, this discussion look at what were talking about right there. On the screen. Trumps trade war. I can tell you the mood in mexico is very angry. And its gotten to the point where carlos slen who normally doesnt hold News Conference, doesnt like to, doesnt talk to the press that often late last night announced he was going to host a News Conference today. We presume its because hes angry about whats happened here over the last 48 hours. Yeah. Michel michelle, thank you. John harwood there as well, thanks so you. My point kind of earlier is the market doesnt seem to care all that much. Yet. Yet. Yeah. It has to. But you could easily, if you thought there was going to be some kind of trade war with mexico, you could easily say a substantial pullback yesterday when this meeting was canceled. You didnt get anything. Think about this first week. Hes taking a lot of executive action. Hes not consulting with congress about what hes doing with mexico or what hes doing with the pipelines. Hes taking executive action. Now, that works up until a point. I think the point at which it fails is if he unilaterally gets into any sort of conflict that involves armed forces overseas. I hope he wont. I think hes smart enough not to do that. The texas economy cannot sustain another hit like it had from the price of oil crashing in half. That was brutal for a lot of areas in texas. They cant go through this again. And youll notice when you look at the comments from the house of reps people in that state, there are no fullthroated endorsements of what trump is talking about. There are finished goods where things get done on both sides of the border. About a million jobs in texas are related to logistics and shipping across the border. This is not a slam dunk that this is going to happen in the way that sean spicer casually mentions. Qul yeah, maybe well do a 20 tax on imports, on a helicopter to a handful of reporters. Thats not law. Thats not how we create rules in this country. To your point, the market doesnt seem phased because the market doesnt think these things are just going to happen the way theyre being tweeted. The market is giving him time. The market is giving them the benefit of the doubt and saying, we are hearing things that we like, these are policies that we as a market, buyers want to see. The economy we have a sense may be getting better. But the market isnt falling. The market is sort of holding. And if there were some cases where we have real action, whereas he puts on a trade barrier and then someone else does and sudden we see them in other countries, thats when the market may take the hit. Or where vicente said this morning, look, we have china. Do we really want to play that game . I dont think we do at the end of the day. Weve never had conflict with that country. I mean, you know the saying you get more flies with honey than you know what, right . Why is it that we cant just have a civil discussion with the partner that weve had, with so many years to talk about how we renegotiate. Because weve done that for 12 years and hes basically saying no more. He has campaigned and won on saying the old way im not doing it. Regardle of whethe honey or vinegar works, hes saying im going with vinegar. To the poi that you made, i think some of these actions do actually have teeth right now. Josh, you make a good point ability taxation requires congress. But the pipeline executive order, saying were going to go ahead and build these pipelines. Hes done that. We saw the day it happened, the market crescendoed after that news and the materials and Pipeline Companies went up with it. Thats a case where the market responds to the actual action that is going to take place. Kevin oleary, former president of mexico going after canada this morning. Lets listen to that. Well react on the other side. Why he does not speak about canada, canada exports more cars to United States than mexico. He doesnt say that word there. All right. So potentially the leader of the conservative party in canada in the future. What do you think about those comments . Hold on, let me tell you the story about canada. 38 states, we the number one trading partner. Canadians are responsible for 9 million u. S. Jobs. So this is a relationship that i dont think were going to be messing around with too much. Its too big. This border is the largest peaceful border on earth. Canada bias lot of procurement in military goods from the United States. Were a nato partner. Probably the longest ally. So the way i look at it getting down to business is the most optimism ive seen out of this Trump Administration is getting excel pipeline back on track. But let me give you those numbers, too. Weve spent im a huge investor in canada and trans canada pipeline. Big position for me. So i know that we spent 3. 2 billion getting screwed around by the Obama Administration for 8 1 2 years. I want my dough back. Im not happy about it. Weve got pipeline all over canada and the United States sitting on the ground waiting to go back to work. Listen, im interested in negotiating nafta. No question about it. Im ready to go. Lets dance. We may. We may. Heres what else is coming up on the Halftime Report. Next up, a call of the day that may have come two years too late. Plus, debating three big caps after earnings. Chevron, alphabet, starbucks. All pulling back. Is this your opportunity . More Halftime Report with scott wapner and Halftime Report team coming up. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. All right. Were back on the Halftime Report. Microsoft shares hitting all time high after reporting strong quarterly results. Its Cloud Business doing well. Today, citigroup upgrades stock to neutral after two years with a sell rating. Weve made it our call of the day as a result. What do you think . Theyve missed 40 of the upside by being on the wrong side of the microsoft trade. Why would anyone listen to this . If youre an investor in microsoft and youve been in it all this time while this firm has been telling you to sell it when you know whats going on with the company. Why you own it, what the Earnings Growth is, whats happening with management, new initiatives. Its almost irrelevant qul they have its a neutral, overweight, strong overweight. I would tune all of that out. If youre a trader technically this is one of the best stocks in the s p 100. Of all the meta cap names this one is almost flawless. Stay lodng. Tune this call out. It doesnt matter tomorrow if they changed their minds. Is there anything to be concerned about with microsoft . You own the stock. This analyst is joining the party, albeit quite late. No, this call i dont get. My problem with microsoft is it keeps hitting my 5 cover covenant. This thing is a beast. One thing that is relevant to ibm. Think of the transition of the old man leaving microsoft, bringing in a new team that got the entire internet and webbased business transition, no company has been more successful make that transition than microsoft has. I see this their products everywhere in small, midcap and Large Businesses now that i didnt see three years ago. If i were sitting on the board of ibm right now i would be talking to my management saying, you know what, why didnt you do the same thing . Why have you not transitioned your service, businesses the way microsoft did . You were both at the starting line at the same time. I spell trouble for microsoft in the sense that they may start to have more competition from the amazons of the world and Everything Else but on excusae executional basis. Im making a noise, burning the torch up to the bridge, im not happy. What if youre not a shareholder at microsoft yet, 22 times and 65, can you buy it . Is this an entry, or no . I dont think so. I think its remarkable whats happened to microsoft. Remember, ten years of underperformance. Right. And now were starting to see the out performance. They have Revenue Growth of 1. 3 in the quarter. I know they have a lot of Cloud Computing business and run rate of 14 billion but its not as if theyre burning it up on sales across the board. Im going to stop you. Heres play back of the meeting between the president and the british Prime Minister. Thank you. Thank you, press. Thank you. Thank you very much. Come on. Thank you. That was clearry just tape playback of a meeting between the president of the United States and british Prime Minister theresa may. Theyre going to hold a formal joint News Conference at the top of the hour. So clearly not wanting to make any comments and front run their own remark which will take place in 30 minutes time. But they did have what looks to be a brief meeting since the Prime Minister just arrived a short time ago inside the evil. They will meet the press, if you will, in a short period of time. I would let you know that were learning from the Associated Press that the president and the mexican president held an hour long phone call earlier today over the dispute regarding the border wall. So as the meeting was canceled for the mexican president s visit next week, the two gentlemen holding a phone call today which lasted were told by the Associated Press which is quoting sources that it lasted for an hour. So were following all of it and, again, were going to go to the white house live when the president and the Prime Minister do meet the media. Kevin, thanks for joining us today. Appreciate your opinions. Have a good weekend. See you next week. Take care, my friend. Dow component apple is set to report earnings next week, tuesday. Shares up 5 since the start of the year. The desk takes their positions ahead of their earnings, next. Well also take a look and well do it now at the dow 30 heat map. Microsoft is leading the way. Up 2 2 3 . Is it because so many go after it the same way . Chasing after short term returns. Instead if getting caught up with the crowd, the Investment Managers at pgim take a long term view, teaming specialized active investing with riskmanagement rigor, to seek out global opportunities. We manage over a trillion dollars this way, attracting many of the worlds leading investors. Partner with pgim. The Global Investment management businesses of prudential hey nicole. Hey i just wanted to thank your support team for walking me through my First Options trade. We only do it for everyone gary. Well, i feel pretty smart. Well, were all about educating people on options strategies. Well, dont worry, i wont let this accomplishment go to my head. Im still the same old gary. Wait, you forgot your french dictionary. Oh, mucho gracias. Get help on options trading with thinkorswim, only at td ameritrade. [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. Im sue herera. Nikki haley arriving at the United Nations to begin her new job as u. S. Ambassador. She presented her diplomatic credentials to secretary general Antonio Gutierrez as two began their first facetoface meeting. Our goal with the administration is to show value at the u. N. And the way that we will show value is to show our strength, show our voice, have the backs of our allies, and make sure that our allies have our back as well. For those that dont have our back, were taking names. Queen elizabeth attending her First Official engagement of the year. She visited an exhibition on art and culture in norwich. She was flanked by men in traditional clothes. Earlier this week mcdonalds was giving away 10,000 free bottles of special sauce at select locations. Well, some of them are now selling online for hundreds of dollars. Mcdonalds gave away the bottles to celebrate two new versions of the big mac. I dont know if i would pay 100 bucks for secret sauce. Sue, thanks. Well, with markets near record highs what stocks do our traders like right here right now . Court any, tick things off. I bought facebook lastmonth. You know not to say microsoft over facebook or facebook over microsoft but facebook in your portfolio over the long term is a good play. Its a play on the millennials. Its a play on a new news service. Tinge advertising dollars that theyre going to get is real. Our analysts at luke capital blake harper has price target of 165. I dont know if i would sell it there. At the end of the day facebook is an Incredible Company to buy, to 18. They have nowhere near moneti d monetized. Facebook live, instagram live. Im a fan with the company and what theyre doing. So nothing that you said i dont think anybody would disagree with. Really . I doubt that. No, i think a lot of people like facebook. My question to you is why did you wait so long . I would have heard the same kind of things you just said a year ago. Before that and before that. I waited too late. I think the first time the stock was somewhere around 28. Im kicking myself every day. But when you talk to a trader everybody wanted to get in on 28. Global desk of 15 traders that my head trader said to me, no, you cant buy facebook here. Its over priced, overvalued. Should listen to myself sometimes i guess. You own it . So, yeah, all of the reasons you cited to own it are true but theyre pretty wellknown for like, i dont know, 100 points now. Whats not in this stock price, what are the bulls not betting on that could propel it higher . It is that aum sayi. The advertising dollars that could go into febook live, instagram live, i dont think anybody knew that was coming. I dont think anyone knew that snapchat competitor was coming on and as quickly as its come on that platform. Facebook has so many different tools and i do not think the pulls have priced it all in yet. 360 market cap, not pricing it 25 times earnings. And its growing over 25 a year. Absolutely. All right. Thank you. Any time. , at t. I bought it and added to it. With the talk and with the potential merger and everyone thought it was going to fall through and some say thats why its rallying. Im not sure thats why its rallying with but the Company Overall is good. We have seen with that risk off trades a lot of ur clients going into telecom and utilities as well. But i like telephone. I still call it telephone from back in the day but i do love at t still and getting in at 41 is still a good place. Carrie, blackstone. Blackstone is a laggard among financials. You look at the last year until we started to see again the move of all 07 them, blackstone is picking up. Ten times earnings. Cheap stock. Its been held back because it has different type of structure. That may change. So we may both have some improvements for blackstone. Steve schwartz man remember is on the president s advisory. We could also get the ability for 401 k plans to invest in alternative assets. And theyre global. Gdp growth globally is good for them. Real estate, energy, et cetera. We like this stock. Asset allocators are continuing to shift more and more into alternatives and stone is king. You mentioned the lp structure of it and we looked at this halong and hard. That lp structure, clients are going to have to fill out k1s. Tax returns harder than they already are. Unrelated business income if theyre in iras. How do you deal with that . A good point. We need to see real changes if Institutional Investors are going to buy it or if you have the large individuals who dont want to deal with the k1. Having owned it for our clients oh, theyd dont mind. They definitely could change it to a c corp. It probably makes sense for all of us structured differently. A change in the tax structure, it might be. Charter, why charter . Its interesting. We like charter here. We inherited it because we own time warner cable. And we kept it and we bought more. So its a multiple system operator. It does not content creator. Thats what we refer prefer. We do not think its a great idea to invest billions of dollars in content with all the supply thats out there. Its better to be a buyer and taker of that content. Net neutrality rule changes could help charter. So we think the stock can go higher. Straight ahead, the casino stocks after shares of wynn surge, plus Ryan Sullivan has power lunch. Thank you very much. Just ahead, President Trump and uk Prime Minister theresa may set to hold a anythinews confer. Tension rising between the u. S. And mexico, former mexican president vincente fox on cnbc earlier slamming the u. S. Auto industrys price and quality p but is that really just an alternative fact . Were going to dig in. And get ready for a cornucopia. Our guests are going to name some of the best stocks to buy ahead of a big week for earnings. White house with new trade czar peter navarro. It is coming up on Halftime Report right after this. So if you have a flat tire, dead battery, need a tow or lock your keys in the car, geicos emergency roadside assistance is there 24 7. Oh dear, i got a flat tire. Hmmm. Uh. Yeah, can you find a take where its a bit more dramatic on that last line, yeah . Yeah i got it right here. Someone help me i have a flat tire well its good. Good for me. What do you think . Geico. Fifteen minutes could save you fifteen percent or more on car insurance. Mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. Welcome back to the Halftime Report. Were trading some of the biggest movers thus far. Chevron missed on the top and bottom line. Biggest loser on the dow today, all right, jim, i mean, this wasnt an eps miss. This was like an eps disaster. 22 versus 64. The other thing here is theyre being rather tepidnt their cap x spending going forward. Thats going to be a problem because you blend that with the fact, scott, the rig count in the u. S. Is going up. Supply is going to be going up. Which means prices for oil are going to be going down just at the time theyre lowering their cap x. Theyre going to be getting less volume and price. I dont like that. Its like a tale of two jims then gaubecause cramer noted th issues in the quarter and this morning said, and im quoting, i wouldnt sell chevron. Okay. You would. I would. I wish i had heard jims comments so i cant say what hes speaking to. Most of the bulls in the space are going to say the opec agreement is going to balance support and demand and thats going to propel prices higher. Thats already happened. Thats why hoil is at 53 and that is this rig count which continues to accelerate here in the u. S. Brings more shale oil supply online that youre going the see oil come back to the low 40s. Thats what i think the markets are getting wrong here. What about is there another take on that stock . I think people have been talking about wait for the pullback in energy stocks, wait for the pullback. Here it is. Down 5 from the alltime high. Not on a ton of volume. I think this thing structurally as far as the up trend thats been intact is still intact. So if you are waiting for that pullback you got it and say thank you. I think the only issue is its a Big International play. There may be money coming out of the internationals going to domestics because theres less concern about trade, tax, tariffs, et cetera. 3. 71 yield from where its trading here. I think this stock probably, if it gets a little bit worse, bounces from a 4 yield, its very hard for me to imagine a sent mario longer term investors let it sink much further below provided they believe the dividend is okay. And provided they believe oil stays this level. Starbucks under pressure after posting lower than expected comps in the u. S. Carrie, what do you do with this one . I think its attractive. The fact that they missed on something that was really a desirable situation that they have blew, there are too many people ordering on mobile apps and when they get to their starbucks its not ready. So its the type of problem you really can fix and it shows that theres a lot of pent up demand for coffee andre drink. This is a Consumer DiscretionaryGrowth Companies we can count on and we believe its a good buy here. Im on the other side. I think the share price peaked in november 2015. Way too many stocks working right now. This one is not. Its in a downtrend. I think there will be a better entry. Phenomenal company. I do want to own it. I just dont want to own it while its in this downtrend and continues to print lower highs. Its just not a good look right now. It depends on how long youre holding it. I bout it. Owned it for a while. Of course. Im a strock proponent of strong leadership. Its a high class problem that they have and not going to be the ceo anymore. Hes not. He said i will be there. Ive had hes handpicked his successor, lets be honest. I think hes there and said we will be there together moving forward. That company is going to do well. And if youre looking at it for the long term, looking at them opening a store a day in china assuming the chinese dont decide were going to boycott american product, i think starbucks will be okay. All right. Alphabet hitting a new alltime high. Did reverse though. Google Parent Company missing on the bottom line. They did poost top line beat. Josh, you own it. Yeah. Whats your take then . Stock hit an alltime high this morning. High as 840, as low as 820. Down a couple of sticks right now. I think, again, this is another stock thats in a structural up trend. The buyers continue to come in. I think as long as thats intact you want to be long. This is going to be a thousand dollar stock. I dont know when. Its going to be one of those names where people say, of, man. Global app praises down 15 . Sure. Its a bigger pie. Quite frankly, google and facebook have a doopoly of advertising. Its not going to go away. Theres no third challenger. They split the bit. Yahoo is not around. Think about what is going to challenge them. No one is. Theyre going to carve it in half. Google is a name youre going to need to be in. Now you see tv advertising budgets shift online in large numbers. Facebook will grab a lot of that. So will google. These are going to be must own stocks. And google now with sirius cfo in place and real discipline and financial controls i think this is going to be a name that people wish they bought when it was still three digit, not four. Quick thought on this if i may. Heres an item that cuts both lays, 85 billion. Right. Its treating at 20 times mum multiple. You get fang like growth for value type multiple. I love that. What are they going to do with it . They bout some things in the past. You want to make sure they dont do that again so that cuts both ways. I think youre right. Look, theres a company that has had a hit and miss m and a strategy but who hasnt. They were ridiculed for buying youtube. It was a home run. They bought nest, everyone was excited it looks like a bust. They will not hit on everything they try to do but i think given where were going robotics, ai, virtual reality, you want to be in companies that have the money to figure these things out. Google is going to be in the conversation for every one of these technologies. We were excited about microsoft up 1 . Google up 21 . Futures traders take up the drop, next. And look at some of the stocks hitting alltime highs today. Cat, e trade, general dynamics. Halftime report back right after this. 90 of the Worlds Largest supercomputers run on intel . That means you can take a universe of data in your case literally and turn it into medical discoveries, diagnostic breakthroughs. Proof that black holes collapse into one singularity. I dont know what that is. But yes. Innovation runs on supercomputers. And supercomputers run on intel. You are super smart. And super busy. Ooh ufo false alarm, eyelash whether youre after supreme performance. Advanced intelligence. Or breathtaking style. Theres a cclass just for you. Decisions, decisions, decisions. Lease the c300 sedan for 389 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Welcome back to the Halftime Report. Im jackie deangelis. Looking at crude oil today plunging 2 , falling below that 53 mark on supply concerns. Jeff, what else is driving us lower today . Well, jackie, this has been the most sensation tug of war we have seen. Lets remember, when opec and nonopec members suggested the cuts we have seen crude oil elevate 20 . Right now those opec, shortterm cuts, are coming to realreality. On the other side of the rope were seeing additional rig counts come on domestically and which will mean more and more production. Right now i think it seems were closer to 55 than 50 in the bulls are in control as this state bid all of january. Looking back to test that january hyigh potentially on th 3rd of 56. 02. Meantime, jim, youve said you prefer to be short over a long oil right now. So explain why. Yes. If it settles be we low 52. 50, i think the bigger story is jeff pointed to is that when were in the low 50s rig counts come back online. What really happens after that is as rigs come back online here, those opec countries that have agreed to cut production get more and more frustrated. We know eventually they jump and become noncompliant with their agreement. The faster that happens in the u. S. , the faster that might happen there. Meantime for mow futures nous head to the website futurenow on cnbc. Com and catch our live show every tuesday and thursday. See you next week. Intel, american airline, colgate all ahead in the blitz and we do that when we come back. Before the break, four stocks in the cnbc iq index hitting multilevel highs. Broadcom trading at highs not seen since august 2009. Intel, at levels not seen since january 2001. Microsoft and dow chemical both at alltime highs. The cnbc iq iq index is up 38 the year. Go to cnbc. Com iq 100. The Halftime Report is back in two minutes. This is where i trade andrs. Manage my portfolio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access 24 7. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. 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. And theyre absolutely right. They say that its hot. When really, its scorching. And while some may say the desert is desolate. We prefer secluded. What is the desert . Its absolutely what you need right now. Absolutely scottsdale. Lets do the blitz. Intel beat. Here is the interesting thing about this. Pc growth was part of the drive here. You are seeing pcs being sold because gaming is going on. You have virtual reality. These are drivers but so is ploimt. Intel is very attractively priced here. I think it will continue to go higher here. What are you doing with American Airlines . Stock is lower. Better than expected revenue. Do you pick it up . No. I dont. American airlines has been a very, very strong stock since it has been a rocket ship. You have problems now with latin america roots. Currency travel from south america. Im worried about gate on occasions and fees and tariffs across the world with airlines. So i think i would step on the sidelines. Wynn missed however stock is up 9 . Revenue was up 37 and the new wynn palace is delivering all of that. Las vegas not so great. Here is the stock setup. It dropped 80 between 2014 and 2016. Then it doubled in the three months very quickly into last april. For almost a yearsolidated side ways. If it breaks through the stock could absolutely explode. I would be keeping this on my radar. That is where i would want to pull the trigger. What do you do with colgate today . I know it is trading near lows. That latin american exposure, 24 of sales is coming from latin america. It concerns me right now. You like to get good guidance from management on the call. They guided truthfully which said uncertainty troubles our business. What would you do in business with staples in the Bigger Picture . I love proctor gamble. You have a u. S. Company. You have strong sales on a global basis. I have been a holder of proctor gamble. I would keep that in the portfolio. What if trump doesnt like their toothpaste . You make a trump specific toothpaste. Know that market and ride that golden elevator. Morgan brennan is working a story on lockheed martin. Take a look at shares of lockheed martin. Those have turned lower down about 1 . This is as the pentagon says it is going to review whether the boeing fa18 could be an alternative to the f35, specifically the f35 c variant, u. S. Secretary of defense has directed reviews of the f35 and president ial aircraft recapitalization program. You take a look at shares of lockheed down about one percent. They were trading higher earlier. We have seen the complex trading earlier. Back over to you. Every doll. Thats why i have the spark cash card from capital one. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . We are back as we look ahead to a big week of earnings. Apple, amazon, lilly, exxon. Have you seen the share price . I dont know if this is all about expectations for this quarter but this is like one of the biggest bull stocks out there right now among the large cap names. Its going to have a lot to live up to. This better be a really good quarter. It better not be trading this high on expectations for this quarte that inot going to do it. The expectations have to be about the iphone 8 coming up in nine months. That has to be propelling the stock. Tax rate and repateeration of cash. At the end of the day like you liked alphabet and said you have to hold it, apple is a stock you have to hold. At the end of the day you have to hold it whether you like buying it at wherever it is you are keeping it. Quickly who has that . It will come in right at expectations. I expect nothing different from them today. You have big drug stocks. Amazon is the earnings volatility is about about 10 earnings volatility. It will be the same thing this time. Final trade. Give me a name. Apple. I like it. Netflix keep going. Used up all our time right now. Welcome to power lunch live from the white house. We are awaiting the first News Conference between President Donald Trump and uk Prime Minister teresa may. This is the first visit by a foreign leader one week into the presidency of donald trump. We thought this was going to be the big event of the day but increasing it is the tensions between the United States and mexico. We just learned that there was an hourlong phone conversation between prest