Nasdaq drawing our attention this hour. The index is up 9. 5 this year. Nasdaq 100 by the way on pace for its best quarter in years. Pete, the nasdaqs the only major average positive for march. And youve got the leadership coming from technology. You look at the fundamentals and facts of the earnings season, then you look at how everybody starts to read into, even this coming earnings season. We know april 13th, jpmorgan is going to kick it off. When we get to tech, how about the fact of what weve heard from many of these various Chip Companies post apple. Post many of the facebooks and many others. Valuations are still fair. Theres still growth and thats why these stocks continue. Why is this the sector that is outperforming so much . Is it the one u thats not so tied to what the fed says . The one not so sigh ed to healt care . No matter what happens, this is the space that continues to grow up. Because tech can grow. In a low growth environment. 2 right now. Some are speculating its less than that. It could also grow in higher growth environment. I think you have to stick with the end markets and where theres secular growth and that is social media. That is cloud. Companies that are transitioning from legacy stuff. So i think you can pick growth and value and the valuations are not that extended. These are the top s p performers. Act vision, sky work, smant sa tech, 28. Facebook is up 23. Yahoo up 21. Of course, apple is up 24 not out of the internet space, but its representative of just what this space has managed to do. There are so many sectors that are attractive here. Youre talking about the things growing nicely. And still have a great price. Apple is one of them. The stock price hasnt budged, but theres still great value there. Like an intel, like a cisco system, qualcomm. No matter what style you are, there is something to like. So, youre telling me its not too late the buy these names. Or is there a lot more room to go. Techs got a secular tail wind and but its b beyond that. Its 20 of the s p 500. This has been the leadership group. These are companies with the highest profit margins, the best growth stories regardless of what goes on with europe, with the u. S. , with brexit, republican versus democrat, interest rates. More and more of our lives are spent utilizing technology and by the way, theres another thing going on, which is interesting. If youre afraid of robots taking jobs or nation, the big story that black roc last night is one of a million stories that happens every day. The only way out is to own robots, by being invested in the companies that are bringing this type of radical change to every industry under sun. So theres some element of that. It all combines to come together and these are the stocks that are changing our lais every day. Robbi, do you like this space . Its been one of our favorite sectors. I think the main message is technology is changing the world more than people think. Its going to continue to do so. The Customer Base of these companies is going to continue to expand because companies recognize this evolution. Its your largest overweight, is your largest overweight. Its been and its been one that works. Partly, the secular drivers are there, this blackrock story that is Technology Creating efficiency for investors across the board. I think its changing the world more than we think. One other thing about technology. The economy can now grow without the same inflationary impulse weve seen before because the disinflati disinflationary effects. Barbarclays, start with facebook. They launched coverage at barclay, overweight, 154 bucks is their target. They say it is in their words, arguably the top consensus long in the group. Do we agree . So theres a sorry, the question of the stock has done so well, can you buy it here . I think look, i think you can buy it here, but you have to recognize the fact that one missed quarter, theres going to be a very, very large move to the downside. Because theres a lot of hot money in this stock and you can see the same for a lot. But when you think about facebook, tieing into this technology idea, keep in mind, this isnt a bad advertising. Theyve always said 50 of money spent on advertisinging the wasted. The problem is, we just dont know which half. Facebook does. Facebook knows exactly where the money being spent has the highest roi and thats why youre seeing them eat into traditional tv budget, display advertising. You want to call a top in that . Say tomorrow, that wont be the case . Very hard to do. Its not relative to the growth youre getting, its not that expensive. The its about 35 times forward. Youre growing about 35, 40 . You have depends on what numbers. Im looking at forward. The point of it 35, 40. Margin expansion here. Theyve invested heavily, but still able to grow their margins, so you get operating l leverage and the ad dollars are going to two places. Facebook b and google and thats not change iing soon. If snap thinks they can get that, i think its going to be a tough one for them to achieve. I think theres another thing, we know and were not mentioning here, theres a ton of cash this this space ch its one thing to have the cash an another thing to put it to use and youre starting to see the activity pick up. Youve seen mxpi picked up. Both by the way foreign company, so it gets around the repatriation of cash issue. Not even going to take the like the cherry on top. You dont need the cherry, youf got to sundae, these companies are willing to go to work. Cisco keeps picking off these acquisitions thats building up in security and internet of things business and thats percolatinging through the sector. I think seeing that cash go to work is important. Thats important because its also, we have much Bigger Companies now than we used to that are much more dominant of their spaces than they were. We had thousands of thousands of more publicly traded companies in the 1970s. Even in the 1990s than we do now. The wilshire 5000 could only get to 38,000. When you look at concentration in the tech sector, there comes a point in every poker game where one player has too many chips. Mathematically, you cant win. Theres no way. Theyre going to take you. Thats where facebook is right now. Thats where google is. Microsoft in a lot of respect, they can compete with each other, but theyre not facing an extra 100 companies that realistically have a shot to knock them off their perch and if youre zuckerberg, youre a king. People are coming to you with venture deals. You get the final say. Somebodys going to buy for 500 million, mark says well take it for a billion or we dont need it. Imagine being in that position. There are five guys in tech that have that. Its about the transformational process. When you talk of all the names you just brought up, where have they been able to maneuver themselves . Na della, intel, google. All of these companies have transformed themselves. Id even say an amazon. Stef has done a great job with it, but you look at valuation, i cant do it. And yet, what have they done . You look at the aws, the growth, e commerce continuing to grow. This is a company that continues to execute and its the ceos that are so good in the tight spaces. You go to amazon. Barclays, they ask the question, could amazon be the first to a 1 trillion market cap. Maybe amazon gets there first. They have overweight with 120 price target. I think apple beats them. Only one on the desk who owns amazon. Oyou have to deal with some f the parts analysis. Thats your issue, i get that. If you could do some of parts ang angel is, you can get to a higher price. Last fauquarter, margins were higher than expected. Maybe top line wasnt as robust, but still pretty darn strong. They got the margins right and if they can get that equation to continue, i think the stock continues to work higher. Stocks like have upended the entire Economic Framework of retail, theyre Game Changing and when you have a Game Changing process, a Game Changing business, youre in a benefit. Just a matter of what youre willing to pay up for. In the growth space, youre paying for growth. It was fashionable to look at amazon for like 15 years and say, oh, this time, its different. The its actually different and not only is it different for amazon, its different for macys, target, jc penney, walmart, go down the list. If youre a retailer, traditional, your best Case Scenario is mid single digit growth comps. Amazon said all right, if thats what theyre aiming for to keep costs low an not invest too much, were going to aim for Something Different and it worked. This isnt one of the million thing. Its not going to be repeated. I think the Investor Base when you look at amazon, what other stock does it sound like in terms of okay, you got a high valuation and a really creative guy whos running the whole show. It sounds like tesla. Where youve got an Investor Base that will continue to hold on to this stock until they wont. So, we mentioned Alphabet Google at the beginning of the conversation. They are overweight within 1,065. Im in that one. Price target. Overweight . Both. Both. And thats the one that has felt like he was thats the one that has the most real. Its a mike drop moment. Has the most reason bable valuation. Trading about 19, 20 times. Theyve multiple growth drivers. Margin expansion. I would will caution though shortterm. Scott. Hold on a second. Let me finish. I would be caution about the quarter coming up because they have issues with regards to youtube, so you mig get a better buying opportunity in this one, but longterm, the secular trends. Maybe buy half now and have after earnings. Another stock that doesnt get enough combo on this show. Is ebay. They niche wait overweight there, 4i buck, pete. I own it. Theyve got revenue growth, which you like. Its a turn around story and you start to look at this company, wow, this thing trades at an inexpensive sort of a level. Because of those reasons, we compare it to amazon. Ebay does what they do, but they do it extremely well and its too cheap right now. So on the value, when youre buying, how scared do we get when a growth stock becomes a value stock . I personally its a value stock with revenue growth. Its a revenue growth. Talk about google. It is entering value territory. You strip that cash out, i know steve weiss i was going to say apple. Its been a value stock for four years. My point though is to answer his question is is not very scared. And that would be your poster chil. You are correct. You are correct in apple. He is correct in general that usually, a fall in growth stock is something where youre going to get a hole in your hand. I dont think thats the case with google. I see the growth in revenues, the profit, the cash in the balance sheet. Why do i not you just dont want the next rim. Its funny. Were having this conversation about why do we think tech has outperformed the way it has and maybe its not as sensitive to some of the thing that is the other part of the market are. How do we feel today about the market . Dow is down nine of ten days. A lot of fed speak. Stan fisher maybe made people reassess where they thought the fed was going to be. Rosengren says no, look, you can get four hikes this year. So, markets, i think were in a bit of a place where political commentary because thats what the media is focused on right now, is maybe blurring fundamental progress because youre not getti a good look att because were in between Earnings Seasons right now. You see a trajectory, whats likely to be earnings in the First Quarter that are pretty good. Economic growth picking up. And so, i think well make it through this transition pretty elegantly. I dont think the feds going to do anything thats not pragmatic right now and so i think were in a sweet spot for seeing a positive risk on environment. To your point on weve seen this down eight day, our high was 24. 01 on the s p march 1st. What are we today . We havent moved. Reality check. Nine of ten days that are down on the dow, but ds not like weve moved. Not representative of the mark. On this sort of conversation over whether its the president , the fed, it is earnings that are ultimately going to you know u, sort of its all about the facts. We joked back and forth on this thing, but it is about the facts. Its about the fundamentals. If you focus on the fundamentals and facts, youve done very, very well. When you look at what stocks have performed, you look at technology, killeded it. When you look at the financials, they killed it, now theyve eased back because a lot of people have their concerns of the huge run it made, but theres still opportunity and when those facts come out again april 13th, jpmorgan. The message was one of resiliency. On monday, market could have any reason it wanted to go down. It hung in. That was the point. Again, we said you have an s p thats 1 from all time highs and in the meantime, you have a sitting president whos being invested for treason. If you told me that three months ago this was what was going to be in the news every day, agree or not, if you said thats what the nations going to be focused on, how far will the s p be from its high. I would have said 15 . Is it trump or fundamentals . It could be trumpamentals. It is until you get to earnings. Until you get to earnings and you can focus on fundamental, sorry, you can focus on fundamentals, thats very important. The Economic Data has been pretty good to support the fundamental, so you have the Economic Data good. Earnings are probably pret thety good and i think thats whats going to propel the market higher. What has been interesting has been the rotation this year. That is what the theme is this year. January started off with cyclicals, february was defensive. March has been a combination of a lot of things. When earnings come out, i think the market will be excited. No preannouncements. Two days away from the end of the quarter. Not count iing forward. Leave as an outliar. Micron going bananas. This has been a quiet preannouncement season. This bodes well. Heres what else is coming up on Halftime Report. Blackrock overhauling its active stock picking business. Planning to use more computers. The dao bait on man versus machine ahead. Dunkin brands cut to sell at sax. Its our call of the day. Plus, the halftime quarterly report. Were tracking the best winning and losing trades so far in 2017. Scott wapner and the traders are back in two minutes. Ckn two min. Usaa gives me the peace of mind ckn two min. And the security justike the marines did. The process through usaa is so effortless, that you feel like you a part of the family. I love that i can pass the membership to my children. Were the williams family, and were usaa members for life. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Shares of Dunkin Brands under pressure today. The firm citing peak valuation, risk bs to growth as the reasons why. Josh, you own the stock. I think its a reason bable call. The stock has had a huge run. Its come a very long way. Got a premium valuation and quite frankly as a shareholder, theyve been spotty in terms of execution. They tend to have two good quarters, then one bad one. And so, if you get caught in this thing on one of those bad quarters, the punishment is severe. Because that premium valuation, so i dont mind if youre long this thing, take a profit, you see a rise in 50day. About 53 bucks, if it takes this level out, expect continueded sell iing pressure and take som gains, i may end up doing that. I think its a great company, but there might be a better opportunity. Its not like they see the floor dropping out below. Whats your average costs, what were you expecting to get out of it. Are there better opportunities with fresh cash. I think right now, there are i dont mind this call. I dont think necessarily theyre going to be wrong. This is the type of thing where you have a defined downside if you could work with the stock and maybe trail it. Stef, youre not a fan. Not at this valuation. Theyre trading at the same multiple. Yum has lagged year to late. I like it because i think theyre going through a transformation. Doing more refranchising. They have focused on cutting their coses and have a lot of costs they can cut and are working on pizza hut, which is a problem child, but some of their other businesses are okay. The one i had my eye on is starbucks. Havent been involved in that one in a long time. Its trading at 29 times forward. The reason i like it is you have this global brand, this opportunity in china and were hearing good things about the consumer in china. Thats really a nice upside for them. They have been at the forefront of digital and they are really the lee leader there, so if this were to pull back, thats the one id want to buy. I think 17 states did minimum wage hikes and probably more next year. Isnt that an issue for these names . Isnt that why they seem to have all stopped on a dime . I think thats a real issue. For all consumer companies. Any of the retailers. But this is a very labor intensive type of retailer. Thats why i like yum because its a special situation story. They are really trying to focus on cutting costs and rebranding themselves. I think that will off set some of the pressures from wage costs. Starbucks is a much more Global Company and they have other areas where they can grow, so thats where i think you want to be specific on which names in this space. Duncan is much more of a u. S. Company. Theyll have much more issues. How come in one talks about the transformation of leadership in the way they talk about disney and iger. That issue koseems to come up a the time. Howard schultz is is not running the company anymore. He had to come back to save it. I thats a real issue. I think hes still going to be very instrumental in driving the growth, particularly the International Growth and that is the reason why if you like starbucks and if you have a longer term horizon, thats how you can get excited about the story. Its almost hes there. I think that concept will work. That theme will work. As long as as schultz is is there. As long as hes still there. Doesnt have to be running the daytoday operations. But hes still the visionary. Apparently, he does. No, not saying hes not physically in the building, but hes not running the company anymore. Okay. Part of the leadership. Yes, he is. Who do you think runs the Trump Organization right now in real life . You think eric trump runs it seriously . On that note, mcdonalds and wen wendys, no takes on those . I like mcdonalds. Hes another one of these ceos who transformationly, hes changing it to a much more digital company. Theyre improving their menu. Doing all kinds of things to provide growth and being very innovative. I milike mcdonalds. I think yum and the pizza hut branch, that is a focus by them. I think thats going to be hunl for them. Coming up next, we are tracking the traders in our halftime quarterly report. If you follow stephanies call on amazon on january th, you would be up on that trade. More on the traders wins and losses. Thats up next. First though, the most actively traded stocks on the New York Stock Exchange right at this very moment. There they are. Bank of america, chesapeake, ford and xr. Alpha ems more elusive today. Is it cae so manygo after . Chasing after short term r rurns. Instead if getting caught up with the crowd, the Investment Managers at pgi take a long term view, teamg specialized active investing with risgement rigor, to seek out global opportunities. We manage over a trillion dollars is way, tracng many of the rlds leading investors. Partner wi pgim. The Global Investment management businesses of prudential can i get some help. Whatever they went through, they went thugh together. Welcome guys. Lifeelplanned. What a rmond James Financial adsor can do for you. Hes a nascar chamon whos shs a worldclass swimmers whos stared down the bestn her r ort. But for both of them, the most challenging opponent w. Ers pe blood clots in my lung. It was really scary. A dvt in my leg. I hatoeaea all i could to hp protect lf octor and i choose xareltoto xarelt®. Help keep me protected. Xarelto is a latestgenationblo. Thats proven to treat and reduce theisk of dvt in clinicasties,lmost 98 patients on xelto®. Did not experienceanothet o. Heres how xarelto works. Relto® works differently. Warfarin interferes with at ast six bloodclottingactors. Xalto®s selective. 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I think they can overcome this Department Store exposure with mid single digit organic growth, so this is one i like for the full year. Gl i think disney is going to Start Testing that 115 level in the not so distant future. This is not a p pc chip company anymore. Its a company thats selling to ali baba, to google. This is a whole new ball game. Just three days left in the First Quarter, we are reviewing some memorable calls. Josh, well start with you. Amd. Up 29 pi . Awesome. Feel good. James brown. Still in amd. I think i added to it since then. Not sure. But so, i really feel that amd sits at this really interesting place where a lot of the market still looks at it as all losers try iing to compete with intel. Amd has incredible strengths in driverless cars, video gaming, all kinds of applications for machine learning, deep learning. All of the things that are going to drive the next five to ten years in tech. Amds processes are instrumental. Huge design wins with google, baba. This to mejias a potential to be a much bigger company. Just added last week, 6 billion market cap now. And a new ceo who i think has done the right things financially. Cleaning up the balance sheets, so i yoen it and im going to stick with it. Nike, its up 7 since the end of january, but now, its a battleground again because what happened with the most recent earnings report. So what do you do . You said it was getting its mojo back. It is. Lets go right there. The Earnings Call last week, wasnt good. Low quality and guidance wasnt great. Stock fell off Something Like no, no, but heres the thing. After that one day, its bounced right back. Got down to 53. 92. I was going to pick some up at 53. 50. Stupid me. Its back at 56. 75. That cheap, 40 cents is going to make a difference . Of course. I may have to buy it here at 56. I may have to pay. Can we get alexandria on the phone . Goodness. It bounceded right off of that bad thus. Its its mojo back. Stephanie, estee lauder up 8 . I still like it. I think this company can grow 6 to 8 organic. Theyve got very strong brands. The stock kind of turned they made the announcement theyre going to distribute mac at ulta stores. Mac is in Department Store, thats one of the reasons people were nervous about the stock. So, its up from its low. But i still think the story can grind higher, so im still involved. Pete, disney. Okay, we heard you in the clip. Its up 8 since january 4th. This is a stock that i look back stock. Ive been in this thing since the end of 2015 and ive added on a couple of different occasions. I continue to want to own this. I look at it, this is a cash flowing machine that has incredible content. The focus finally came away from oh, its all about espn, no, its not. Even if theyre struggling there, there are other areas of disney that are doing extremely well, but when you look at the fact they cash flow enough money to not only pay for dif dends but buybacks as well, this is a company thats in very, very solid shape. And iger reupped. If he doesnt or wasnt staying as long as as he now is i think that was a concern for all of us. We were just talking about that with schultz. If he doesnt reup, its because theyre going to sell the company the to apple. Tim cook. Its not all fun and games. Not all of the calls have workeded out just yet. This company has very Company Specific things they are doing with a new ceo, cost cutting and eventually, if it doesnt work, they will sell out, so im a buyer. Okay, so, what do you do with e trade then . Its down 7 since the end of february. I have been adding. Around those levels. I dont think the story has changed. A lot of o the price wars with the Online Brokers is certainly real, but its a small percentage of their total revenue. Two, the kind of special situation story why i like it with the new ceo, with them trying to find additional growth, they have a goal of growing 2 to 3 incremental organic. If they cant find growth via like denovo or making an acquisition, they may sell out. I think this industry is consolidating. I dont think the industry is really that challenges and if the rates go up, theyre very levered to that. Sue has the latest head lains for us. Indeed, i do. Heres whats happening. The eu has officially received the letter from brit formally triggering two years of negotiations for the uks exit from the european block. European counsel president says he is not looking forward to it. Theres no reason to pretend that this is a happy day. Not in brussels nor in london. After almost europeans including almost half the british voters, wish that we would stay together, not drift apart. Toshiba says its westing house subsidiary will file for bankruptcy protection. It remooifs the lost from to toshibas april to december 2016 financial report. In his weekly address, pope francis saying it is urgent to protect civilians in iraq. He says he said particularly concerned about populations trapped in western mosul. Thats the news update at this hour. Other to michelle with whats coming up on power lunch. Coming up, 25 minutes top of the hour on power lunch, man versus machine. What blackrock Computer GeneratedMoney Management means for wall street and your investments and why automation may be the biggest threat to jobs and brexit set in motion today, you heard it from sue. A man said to be the frontrunner to be president to be president trumps Eu Ambassador is going to weigh in. See what he thinks of the eu. Halftime report is back after this. Power starts at the top of the hour. Dont move. Dont move. Zblncht the rise of machines claiming another victim. Blackrock saying it will lay off worker, cut fees and rely more on computers to p pick investments. Hi, leslie. Perhaps the biggest repudiation of active management to date. While they are known for their index funds and etfs, it has a 300 billion active management unit, which has been struggling, so in revamp announced yesterday, they plan to Fuse Technology and data science with traditional stock pickers to form a sort of active passive hybrid. For client, it will be cheaper. Theyll see savings of 30 million annually as they slash fees for Portfolio Managers though, its a bit of a question mark. Blackrock is letting several go as part of the revamp. Others will have to learn how to incorporate other technology and data science into their investing styles. Most predict this will be a positive sign for blackrock and its come ppetitors will have to follow suit. What do you guys think about this . I know this is going to be a provocative topic. I would say this is the most thoughtful Management Team in the industry. They showed that with their puchls of i shares years ago, however, this is not a move from active to passive. This is a incorporate Rating Technology like weve talked about in the past. To focus on artificial intelligence, factors and identifying things that value managers and active managers have traditionally used to pick stocks. Dont you think as leslie said, if this isnt a repudiation or the largest one to date, of active stock pickers, what is . This is the Worlds Largest asset managemer. I would argue this prior deal was that. This is different. This is creating efficiency. What does it mean for investors . It means better access to information. It means better fees. At the end of the day, so i think theyre responding to shotgun totally different. Its active management using a quantitative overlay. The difference is you dont have this subjective element where you have a Portfolio Manager looking over it. The its pure rules base methodology. Which is active. People have to understand that. Im a big believer in using both active and passivefoli portfolios. This is not a pe puduation of human stock pickers . Its a pe putuation of the idea that you can be big and develop alpha. They have 5 trillion assets under management. The New York Stock Exchange. But these funds shuttering are not 5 trillion funds. Theyre very small and they still cant do it. Theyre making their point they dont want to be in that business. Those Portfolio Managers will go find other smaller shops to be at. The point is sort of what this says. Its not active versus passive. Its im giving a speech tomorrow to 500 executives and professional allocators in the Fund Industry in the town of manhattan and the gist of what im going to tell them, they know it. Im going to phrase it for them in a way that is more palatable, active versus passive. Dont blow the whole thing. This is so much bigger the media has completely missed this. It is not active versus passive. Its not factor versus market camera. Its system iblg versus faithbased investing. And so when you see aqr, cliffs shop, taking in billions of dollars, its not passive. Hes doing Hedge Fund Strategies in a repeatable, rep lickable way. What does that look like over the last 30 years and the reason why this is happening is because the industry is shifting from ill sell you products that generate alpha to i will plan your financial future and build you a port foal area that addresses your plan. When you do that, you need to show people day that that says if you have this portfolio, for the last 40 year, youd be fine. All of the money going into black rocks products is not being run passively. Smas, there are hundreds of them. They buy spy and sell it the next month. Theres a huge gray area. Of these actively managed funds at black rock managed by humans were doing so well theyre not. 50 are its 11 of their asset base. This is not a pivot in the whole organization. Zpl thats true. Most of it and so, it is a reaction to what hes talking about which is the evolution of the Wealth Management industry towards planning. And having a set of tools that allows you to do goals based investing and actually achieve those goals. One of the challenges in any of those models is they work until they dont. Right . In factors tend to be created looking at backward dated information and so, the subjective component where you need an adviser or money manager is to take that information and say what is likely to work perspectively. Okay. Theyre great tools. Just part of the mosaic. No one disagrees with that. We constructed this thing like its man versus machine and the reality is its really man working with machine. Thats really what this combination is and yes, some are being eliminated, but theyre going to find spots. Its engineers being hired in service, which is what blackrock said theyll be doing versus guys listening to Conference Calls and saying oh, the cfo sounded really confident. Im going to up my position. We know that doesnt work. Its not reliable. The spiva scorecard that comes out every quarter makes it abundantly clear. Even if you only buy funds in this top performer, five years later, its random flip a coin whether or not theyre in the top again or even in the bottom. Even in the bottom. So very hard for an adviser building a plan trying to marry a portfolio with it to use active fund track records. The average tenure is three years at a fund. If youre using a Building Block like a sector or factor strategy, you have data that goes further. Up next, were on a hunt for value. A list of stocks that have started to be nibbled on. Well let you know when the Halftime Report coming right back. Back. Poweto turn this enemy into an ally . Microsoft and its partners are using smart traps to capture mosquitoes and sequence their dna to fight disease. Ere are over 100 million pieces odna invery same. With the microsoft cloud, we can analyze the data fasterhan ever befor if we cadetect new viruses before ty spread, we may someday prevent outbreaks please repeathe objectiv thrivent mutuafunds. Before investingcarefully read a consider fund objectives, risks, charges and expens he prospectus at riventfus. M. i moved upstate because i was inrested in building a career. I came to ib to manage global clients and g data. But i fod so much more. its really a melting p of activits and people. applae, cheing new york state is fill with bright minds like victorias. Finthe companies and talent of torrow, search for our page, joinnewykstate on linkedin. Rious shouting heigh ho its off to work we go man on the gulf coast, new exxonmob projects are pected to create er 4000 jobs. And each j created by the energy stry altogether, the industry supports er million jobs nationwe. Ese are jo that natural gas is helpi makhapp, all while redung amicaemissions. Ergy liv here. Welcome back. Cnbc has learned at t has been awarded a 25year contract to build and maintain the nationwide Public Safety broad band network. At t was the only bidder who reached the competitive range. The deal calls for them to build the network in exchange for 6. 5 billion and access to a chunk of highly valued spectrum. Now, at t will have the right to use or sell access to those air waves when theyre not being used for Public Safety. Now, analysts Craig Moffatt tells us this contract is effectively a break even proposition for at t, but it does provide a subsidized path to build a network that some of the time, they will be able to use for their own purposes. This is the First Network created by the 2012 jobs act. The official announcement is expected tomorrow. Scott, over to you. Thanks so much. March has created some stock buying opportunities. Dom joins us now with a breakdown of what investors have been picking up. So, we decided to put per our last discussion with you guys in the last block about stock picking using models. This is a hud rudy meantry way to pick stocks right now. Youll understand how this kind of quantitative approach works. We took universal stocks, the s p 500 and looked for only those stocks that have negative month to date performance, screen td out, and among those left said how many of those have positive oneweek performance and ranked them as such. Among the top performers on that oneweek chart, take a look at some of these names. This is showing where at least some investors are buying stock or covering shorts. Either way buying pressure is pushing up prices. Over the last Week Chesapeake Energy up 8 just in one week. Airlines, United Continental up 6 . The transportation stocks takinging a much bigger beating. Kansas city southern, railways, transportation, nordstrom up 4 . We know how bad retailing has done. Cfs industries up. Some of those names themes for buyers in the market right now. Back to you. Dom, good stuff. I would pay for that screen. I think thats how citadel does it. Dom, whats your minimum . 100. Im in. Come on over. Jcpenney is down. Youre looking at it again. Im in it. Im not kidding around. This is not a widow and orphan stock. Really . This is how a stock trading where it was two years ago. Two years ago it earned 377 million in profit. Last year it earned 1 billion in profit. This year probably going to earn 1. It billion. Its your top long idea . It actually is. However, huge by volatile, scott. Hugely volatile. Where will you sell . Where will you say this was a bad idea . 4 . 5 . 5. This is important with these stocks. Its not actually that simple. I think you know that as well. If it hits 5 because the sales are really down, yeah, you have to get out. If its hit that and is hitting the metrics, 1. 2 billion have you seen a stock break below 5 and go straight to 4 . Thats a 20 fall from there. A i know what youre talk iing about. I dont think it will go to 5. Ill have to evaluate it then. Ill summarize with this. This is a double. No, i will summarize with this. Pete is tracking unusual activity. The stock is down more than 40 . Bullish bet just ahead. The trades on hululemon. Hululem. You do all this research on a perfect car, then smash it into a tree. Your Insurance Company raises your rates. Maybe you shouldve done more research on them. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Liberty mutual insurance. Itthat can make a worldces, of difference. Expedia, everything in one place, so you can tvel the world better. Welcome back to the Halftime Report. Im jackie deangelis. Crude oil gaining after davis showed a smaller than expected rise in u. S. Inventories. Were hovering just above 49 a barrel. This was a big move today. Do you think theres been enough momentum here for us to break 50 . Jackie, the other thing is opec announced theyll extend the production cuts until the end of the year. I think that could take it to 50. I think they get above that theyll have to do more here. They want the results of Higher Oil Price but not do the heavy lifting. They have to realize fractioners will produce more. They might have to cut less to get these Prices Higher than where they are now. Jim, what are the krcritical levels investors should be watching here . Obviously everybody has eyes on 50. This is one of those times i think market positions outweigh the fundamental story. The fundamental story is balanced. It respected a longterm trend line. Around 46. 50. A couple days now of basing some strength today indicates to me it could go significantly higher in this trend up to lets call it the high 50s, just within this trend. Wow, okay. Well be watching very, very closely. Meantime for more futures now head to the futures now website. You can catch our live show tomorrow at 1 00 p. M. Eastern time. The Halftime Report is back after this break. After this bre. Hey gary, whatd you got here . After this bre. 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 is happening before our eyes. Shift in Human History sixty to seventy Million People are moving to cities every year. 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Pete, youre a buy. Yep. Jim, youre a sell. I expect a strong quarter. I like the margins that i think are continually expanding. They just opened the store in china at the very end of last year. When you look at this storyline, id like the idea theyre growing in mens and childrens on top of the womens. I think the readthrough from nike theyll have a bad quarter. I think thats too easy. I dont think thats the real reason. Thats what im going with. Final trades. Two sectors i think you need to buy, one lacking year to date, one month to date. Xlf month to date, xle you can buy them now. Good having you here today. Jimmy, give me a pick. The top of my sell list but not until it stops going higher. Numbers are going higher. Theyve got a good Margin Expansion story. Josh . Schwab, false breakdown, now rallying back. Tempurpedic. Unusual activity. Thank you for watching. Power lunch starts now. It sure does. Im Michelle Caruso cabrera. Cutting jobs, dropping fees, overhauling the way it manages money. Man versus machine over at black rock. Their big shift to Computer Generated management, what it signals for wall street and, better yet, is it going to help you make more money . Junk equity, some investors think snap sets a bad precedent for shareholder rights. The call to get snap and other companies to choose to do the same thing banned from the benchmarks. And, yes, were not kidding fitbi it t for cows. They take