The way up into these numbers. I think well start to see some of the numbers actually come back into these financials theyve lagged, they havent performed. They had that great run after the president was elected and theyve basically poaused. I think its ready to finally start to break to the upside weve seen the kind of option activity that tells us right now, its not just the individual names, the entire xlf. People come in there and buying huge numbers there, looking for more upside. And it doesnt headquarter that yield curve have been cooperating so far this week in just the past week, were up about 0. 1 on the tenyear yield curve. But its not even just about where rates are going with the financial names that were in. Theres so many other reasons to own these big banks, and especially with ccar coming later on today, its a situation where youre going to start to see some of those buybacks potentially coming back. You already heard yellen talk about the strength of the banks already. So she kind of gave you a little foreshadowing into what were hopefully going to see later on this afternoon theres so many reasons to be in financials, whether its the big banks or some of the Asset Management firms or even some of the boutiques like the moles that are out there theres lots and lots of opportunities in financials. And heres the biggest reason, that goldilocks im not talking to you, pete i thought he was thatsmy pet name for him im trying to figure out who has more goldilocks. Im not that bad. The story here is you had pending home sales declining, right . You had somewhat of a weakening in t economic data. You may not have a fed thats in the hurry. On the other hand, draghi yesterday giving hints that hes finally going to reverse i think he overstayed his welcome on qe. But thats what got the market down yesterday and got bonds going. The tenyear had a huge move as that happens, now we go to a steepening yield curve the banks will make more money the banks in europe which had to invest with a negative yield no longer will have to do that, hopefully, as you look forward so thats very, very positive for financials i dont think therell be any surprises. Youre a buyer of financials . Which one . I own them p i own citi im not adding to them theyre nice positions why not . I mean, theyre still cheap. Look, im in them, as well. Im in citi, as well im looking at blackstone, but not for any of the reasons that you guys are mentioning. The tenyear has gone up the last couple of days. Its still at 222. That spread between 2 and 10s is paltry its less than 100 basis points. Its hard to say at this exact moment in time that the steep yield curve is propelling these higher as for the ccar, i think thats an asymmetric risk to the downside everyones expecti ining glowin colors in terms of sell the news, in other words. Not necessarily sell the news what i mean is, the only reason that somebody would be surprised, if one of these banks doesnt get approval to do what theyre expecting. Im not saying thats whats going to happen. What i am saying is, i dont think this is a sector play, per se i like citigroup probably for the same reason you guys like it, right it trades at a nice discount to stated book value and tangible book value i look at Something Like blackstone with a 10 yield that i think is sustainable and could get propelled higher if they change their corporate structure. My point being is that its stock by stock, not necessarily sector i think the move is maybe 10 stress test and the other 90 draghi thats what i think. And a tightening cycle thats going to occur slower here than we thought, because the economic data, and then it will pick up i think thats the reason for it jim, im 100 right with you on blackstone. Im looking at it as well right now for a slightly different reason if you look at asset flows within the pension plans, whether its public pension plans, foundations, endowments, corporates, what are they doing . Theyre investing in alternatives for their active strategies and who is one of the largest Asset Managers in the alternative space . Its blackstone. They are knocking the lights out. You talk about fundamentally strong, financials are strong, Business Trends working in your direction. I hope im not too late at this point. I see it running today some of the lights if they change that corporate structure, so its no longer an lp passthrough and you dont have the k1 issue, thats a quick pop in the stock as well thats not on the radar screen, but it will happen mel, ive been only in the xlf here in and out of a couple stocks in the financial space. Goldman, when it gets sold off too hard you think its a sector player i do think so, because ive been burned trying to pick individual stocks in this space. Because well see unusual activity for a day or two, and then it fades. But now, with the i dont know that the tenyear low is in for the year, but its been awfully close down there what is it, 211 on the lows here now were 222. I like the xlf, huge paper, huge tens of thousands at a clip. Thats a million share block at a clip theyve been buying into the xlf. So i think whats going to happen is that even after the fed has made all of its moves, mel, and the market or the bonds have actually rallied, yields have gone down, now i think were about to reverse those pete, im curious your brother says, okay, the unusual activity in individual names will be very active and then theyll fade. For you, though, that was convincing you to actually be a buyer for some of these names. Why the difference here . Every time i see the option paper come into there, thats strictly going to be the trade for me im owning the stock and trading the options in bank of america and the moves you get out of a stock like that, and you look at whether those options are bought, oftentimes 20 cent option goes to 50 or 60 cents. Im out. I love the trade and im getting out. Those trades my longerterm holds bank of america has been one of my longer term holds ive had that stock for a couple of years now but i think you can trade the xlf, you can trade bank of america, citi, Morgan Stanley, blackstone, and many of these names. But in terms of the hold, bank of america has had the most to gain right now im curious, anybody know wells fargo . Todays results are qualitative results. And if theres a bank that could possibly fail the qualitative results, it could be wells fargo because of their sales practices. Yet theyve been outperforming the overall Regional Bank sector for the past week. Weve talked about this name a lot for obvious reasons. And i think there is going to be a time to buy it i dont think its yet, mel. Usually when you have a big issue like this, and think about target with the credit card hack from a few years ago or gm with the ignition suits from a couple of years ago, it usually takes a solid year before thats in the rul rearview mirror. I think its the right place to look, just not the time to buy theres nothing wrong with your tv, its just johns shirt and tie. So, why go wells when you go elsewhere . But go back to blackstone, blackstone is hitting the cover off the ball its nice to have that pipeline directly to the present, but a couple of hedge Fund Launches theyve had, some very, very noticeable hedge Fund Launches have been disasters. They launched a multimanagement product last year. It was down, i forget, teens the first year, teens the second fo. So the private equity cycle has been a little delayed. M a activity has been a little slow but theyre also huge in secondaries. Its the management is incredible. And you know, ive been always really big on it its why i love j. P. When you have someone strong at the helm sitting that vision it, takes the firm you need to go. You can buy the others, too i want to go to another sector, which may be perceived these days as a value sector, oil stocks that sector has now seen six straight months of losses. That is the worst first half of the year ever, down 14 this year so im going to start off here show of hands, who would buy xle right now . None probably the reason to buy it, though if youre going to you know, you talked about liking the sector i think if theres a time to buy, and i am not i own two of the individual names, but buying the xle right now gets you broad exposure where its cheap. If youre going to be in it for a longterm play, this is absolutely win absolutely, i think, the time. And i think the second half of the year, you might actually miss some of the run that may come everybodys trying to pick the bottom and its been going on for quite some time and its about to find risk. If you look at the markets, where have been the most active plays for options right now . Outside of the financials, its energy everybodys trying to buy the bottom and theyre not getting it, but at least theres a defined risk they know exactly how much money they can lose to the downside, and theyve been losing it and ive been along for part of that ride at least its a defined risk you know going in, when you buy calls, when they come in and buy 10,000 callsing in Something Like a weatherford, you know exactly how much you can lose on that trade but its interesting to see, there have been nothing but buyers coming in looking for energy to bounce theyve just been wrong. This is an area where its been better, i think, anyway, to be in the futures contract or futures options the than actually in these names. So its one of the rare times that ill be in those. Like gold, with for instanfor ie youve got 300 billion or 400 billion in equity in the gold miners and so forth. And i dont like trading gold, the futures contract as much as i like trading the gdx or the gdxj so what are you my range is 4248 and ive been making money when it rallies i sell but that range has got to have been moving lower and lower and lower. You bet it has, but im trading shortterm, trading 20 day out, 30 day out. Roughly the front month contract for the crude oil, thats what ive been focused on, selling buts at the 42 strike, ive talked about that a lot, or selling calls as we rally to the upside i want to get a little bit agnostic to the price of oil, okay you guys have heard me say this, i really Pay Attention to the rig count. And its probably six weeks at this price six weeks away before you see the rig count rollover and that will start to curtail production and youll see prices rise in that time frame, what im seeing is oil has come way down. Gasoline has come down, but not nearly as much what does that mean . That means crack spreads for refiners are doing really quite well a company like marathon petroleum, my favorite in the space, valero is another good one. And its not just the crack spreads. Its the fact that these guys all have associated mlps into which theyre dropping down assets and unlocking values if refinery space is good for two reasons. Its detached from the price of oil and has something specific going with these mlps. Quick thought on oil . Everybody is talking about oil, nobody can figure it out on i was at a macro conference of whos who of investors, except for me, it was a, whos that and nobodys really investing in it i think its too tough to pick it out and you didnt have natural bloodletting and death spiral of a lot of companies, so they were all bailed out i think the pricing powers in the u. S. , and thats no pricing power, i dont think i have to be involved in oil i mean, to jims point, rigs are at threeyear highs at this point. Production is up 10 year on year in u. S. Shale and iran is pumping as fast as they can. And everybody else will be cheating i want to take a check on fedex here still halted the stock was halted a little bit ago on pending news. This is something were watching very closely, but it got halted at the highs of the day up about 2. 1 as soon as it starts trading and we know the news, well bring that to you. Meantime, lets get to shares of General MotorsMorgan Stanley resuming coverage of the automaker with an overweight rating. This is our call of the day. Adam jonas is the head of the global Auto Research at Morgan Stanley and joins us live. Adam, always great to speak with you. Thanks for having us. Part of this sb youre expecting a rerating because of the exit of european operations. But you also make it seem like this, perhaps, could be a precursor to the exit of other businesses or other operations what are you thinking of, specifically we think that some of the optionalty, the importance of General Motors, and perhaps its peers into the auto 2. 0 or the future of transportation might be undervalued the race to autonomous driving, melissa, is a race for miles, quantity of miles, and quality of miles. And lets say tesla does about 5 million miles per day. Uber does about 100 million miles per day. General motors cars, collectively, 2. 5 billion miles per day. So the challenge for the Management Team and the opportunity is how do they harvest those miles, process them, and create a market place through which they can monetize. They may not be the best ones to monetize, theyre not going to do paid search and advertising, but perhaps through negotiation they can get in touch with some of the tech firms who are desperate to get into that ecosystem and learn from the miles is the new eyeball of market sure. Do they have to acquire something in order to better utilize those miles or better understand those miles you also make reference in your note into interesting strategic combinations you mentioned samsung, harbin, mobileye these are all acquisitions are you thinking the same for gm no, were not those transitiactions that you mentioned, those are symbols and examples of this industry is undergoing strategic change and there are Many Companies that are assessing what do we have thats part of the future of the industry we call that gm revolution what do we have thats part of the existing industry . We call that gm evolution. And how do we create transparency for investors and for potential Strategic Partners to get paid for that and that might involve some difficult decisions like getting out of europe, paying for some businesses to go away. And then other reconstituting creating new entities, perhaps, that can create a currency to direct and retain human talent, which is probably the single biggest challenge the Auto Companies have its not so much acquisitions, melissa. Its more creating structures and currency hey, adam, its jim leventhal. Im a gm holder. I like the way youre thinking you have some edge to what youre putting out there im going to keep it real simple if i look at your note today, i see that 18 earnings are wel below what youre estimates for 17 is that your call, that peak autos obviously, peak autos is a topic and the question is whether we plateau somewhere around 17 million or do we really falloff . It seems to me like youre saying we really fall off. Im glad you brought that up. Lets be clear here, folks we think if gm and some of its peers are run as business as usual, lets hold the ship together and not think outside the strategic box, these are probably not going to be good investments, okay . At this point in the cycle, year eight of the biggest out cycle weve ever seen, we pointed out used car obsolescence and what that doeses to the Consumer Credit in a used car tradein environment, gm is part of that. So our message to the Investment Community or a prospective gm investor is if they dont do anything, this is not a buy. We are giving them some benefit of the doubt to the opportunity they can seize, but vision without execution is hallucination. So its up to management to take advantage of these opportunities right now. Otherwise, the destination i think they can tell you do you think they have it in them we do we do, but again, its up to execution. Yeah, and if they run their business as is, according to adam, its a 30 price target. Adam great to speak to you youre a holder, so i want to get another perspective. Im a holder as well. It is about execution and its a value trap how long have we talked about both ford and gm but when you look at whats the pe 7. Youre talking about between 4 to 7 . Theyve been value traps and thats what sucks so many people in its about execution if adams right, that 40 number does seem reachable. Im going to probability weight that. And you do have autos peaking. Now youre onboard, because you say they still hit a peak. Stocks go down when production schedules go down. Ford jumped in with microsoft years ago, 2012, 2011, whatever, and i think the first person to really get something done here with apple, if its gm or whatever, that could be huge for that brand something done with apple you mean some sort of partnership or just using their software some sort of partnership on the ecosystem inside the car, not on making cars sure. A lot more ahead today on the Halftime Report. President donald trump taking aim at amazon and jeff besoutheabesos. Should investors be worried or just keep buying amazon . Plus, f. A. N. G. Week. Do these stocks, facebook, amazon, apple, netflix, and alphabet have more bite . Were also talking about the tech stos tse ckouidof f. A. N. G. That may offer some opportunity. The Halftime Report is back in two minutes. At johnsons we care about safety as much as you do. Thats why we meet or exceed 15 global regulations for baby products. And where standards differ, we always go with the toughest. Johnsons. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. I have respect for jeff besos, but he bought the Washington Post to have political influence. And ive got to tell you, we have a different country than we used to have we have a different he owns amazon he wants political influence so that amazon will benefit from it thats not right and believe me, if i become president , oh, do they have problems theyre going to have such problems that was donald trump on the campaign trail back in february of 2016. Today, hes taking new aim at amazon and ceo jeff besos, firing off an Early Morning tweet. Cnbcs eamon javers is live at the white house with the story reporter heres the tweet from the president this morning that you just mentioned. He said the amazon Washington Post, sometimes referred to as the guardian of amazon not paying internet taxes, which they should, is fake news. The president this morning apparently upset by a piece in the Washington Post which revealed that his golf clubs have been displaying a Time Magazine cover on the wall that was faked and never actually ran in Time Magazine the picture of trump, a story, apparently, about his Apprentice Television show, nub none of that real, but nonetheless hanging on the walls of his golf club the president didnt like that story in the Washington Post. That would have prompted the tweet. A few moments ago, i was in the roosevelt room with the president and a number of reporters for an energy week event. At that event, i asked the president if hes prepared to take any specific steps against amazon after his tweet this morning. Heres how that moment played out. Mr. President , are you prepared to take any actual steps against amazon, sir . So the president there, you can see his response, he sort of nods and looked at me and gave a smile. He resisted the temptation to answer that question a lot of times were asking those questions as the press aides are hustling us out of the room the president not prepared to answer any specifics on what steps he might take against amazon the big issue thats been raised is antitrust, thats a department of justice measure that the president wouldnt necessarily have a whole lot of control over thats a great point, eamon thank you so much, eamon javers at the white house for us. Just quickly here, you know the stock is not reacting to this. Its actually up by 0. 6 weve seen it time and time again. Going back to hillarys tweets, but all of these types of things, when they were running and all of this, theres going to be an impact, but i think those create opportunities and if amazon drops, im in it all day long. And they pay taxes and im sure jeff besos approves every article, every biryb byline and every picture youre saying that sarcastically . Of course this is f. A. N. G. Week on the Halftime Report. Michael lippert of the baron funds is with us live. Ill ask you first about this. To me, its honestly just noise. Amazon is benefiting from two massive, disruptive changes, generational shifts, right, the way we shop, and the way we build commuting infrastructure today, and these are longterm plays that are going to last for the next 15 to 20 years. This is a good thing to talk about today, Donald Trumps tweet. Jeff besos thinks very much about the longterm. He bought Washington Post, i think, just to understand that that was a business problem. Not going to make a lot of money anymore, but hes really focused on what amazon needs to do and Donald Trumps tweeds are not going to have any impact in the longterm. Theres not one iota of concern whatsoever that what he could do could make doing business in the internet sector a little bit more difficult, even at the margins . He could change some regulations. But obviously, to change laws, youve got to do it in congress. And the changes in the way we shop, the changes in the way we build commuting infrastructure, those are too big and theyre moving already i dont think any small legislator or even regulatory changes will disrupt those types of things. Amazon is a clear leader in both of those things. Lets turn to f. A. N. G granted, over the past month or so, its been a little bit of a rougher ride for technology investors, but outside of f. A. N. G. , do you see a lot of values f. A. N. G. Gets a bad rap in that it could be a crowded trade, a passive money, where else are you looking . Were looking against these big secular changes. I talk about them as disruptive changes or generational shifts honestly, the way we shop, the way we drive the way we communicate the way we socialize the way we use computers all of these things have changed in a massive way and the businesses today are way better they have direct connections their users, they have all the data they constantly get better in the old world, the most you lost something, it got worse you lost value there are opportunities in all these areas, whether you talk about software and sas, whats going on with mobile, whats going on with the way we change advertising, whats going on in ecommerce. We have investments across all of these areas these big names are the ones that its easy to talk about but we own Small Companies like costar group and plenty of others have you used the slight pullback weve seen in tech as any sort of buying opportunity we always are looking at our portfolio and trying to find buying opportunities, but a small 2, 3 move that we have over a couple of days, really has no influence on what we do, right . Were trying to make doubles in four or five years so were 2 or 3 moves in a stock is irrelevant. But late last ear, when we had donald trump elected and the market leadership change, there were 20, 25 pullbacks so absolutely, we acted. And we maxed out a couple of Companies Like costar group that ive talked about, godwire software and those stocks are up 30 to 40 from this year, because there were opportunities to buy would it have to be, at this point, a doubledigit percent decline for you to see an opportunity in technology . No, because it depends on how long you measure it, right if you want to measure the next three months or the next month, i cant tell you what the trading activity is going to be. If you look over the next four to five years at investors coming in today with money, you want to buy. You want to buy a little bit today, buy a little bit next week, buy a little bit the next week these are the big changes. This is where the growth is in our society. My portfolio has averaged 20 to 25 , weighted average growth against the top line whats the economy growing on a nominal basis, , 5 , at best thats where the growth is happening. Thats where we invest mike, lets go to one risk. Going back to a third of the conversation, not so much president s or regulation, but legislative and judicial bodies that might look at some of the bigger Companies Like an amazon, which seems to be taking over the world, right and saying, hey, theres a m monopolistic issue. It does raise the specter of, as these companies become so large, do they just get crosshairs all over them, not from president s, but from judicial bodies that can levee fines and or maybe cause them to break up i wont say its not a risk investing in any stock has a risk these are risks. But if you look at whats happened in the antitrust area over the last 10 to 20 years you get slapped, may get a little fine. When have you had a change thats really been disruptive to one of these kinds of companies . Go back to microsoft. D but did it really change microsoft. They didnt understand how the internet and moesbile was changing i dont think its going to have any effect on these kinds of companies. I think google will negotiate with the eu, theyre probably going to appeal. They may change a little bit their search result page, but i think it will keep going on. When you think about these companies, they may be bad for theirgaining market share, but think about what theyre doing for the consumers . Would anybody say that amazon is bad for a consumer i dont think anybody would. Outside of f. A. N. G. , how about alibaba . Can you speak to some of the other names, like salesforce and alibaba, some of the other names that have been performing just as well as the f. A. N. G. Names. Weve added fa eed f. A. N. G. Man l sorts of things. Is the same opportunity there as well measure over the longterm, i do we own alibaba, maybe not quite a top ten stock, but maybe my 11th largest position. Its the amazon and google of china. Fairly big company, 1. 3 billion people they do both commerce as well as information. More their revenue comes from the marketing side than it comes from the commission or commerce side its not like amazon, they dont own the inventory. But they have a direct and persistent relationship and connections with their customers. And they have more and better data about these customers than anyone else. And so theyre changing the game about the way retail is developing in china and like were seeing in amazon here, theyre not just going online, but theyre also going offline they want you to walk into a store with your smartphone, know exactly what you want to buy and personalize it for you digital will change the real world of retail and alibabas doing it thats the exact same thing when you think about a facebook. Not only do they know what youre buying, but where youre going, who youre going, everything youre interested in. And ive said that for a very along time the information and data that these companies have is what will continue to propel it for the next five years. If you think these names are going to continue to grow and theyre solid companies, then yes, you can get in right now and youll see the same growth, maybe even better over the next five years than you saw in the last five. I couldnt agree with you more and im asked all the time now about quote unquote, in a bubble today like we were in 2000, but technology is so different today. Look at the leaders back then. Dell, cisco, microsoft, intel, just to name a few they sold you or an enterprise a product. They had no connection you got to use their software, they had no idea you were doing. Salesforce knows everything you do with their Software Facebook knows everything you do on their site. Amazon knows every single product that you buy the data that they have from these direct connections with customers is is a really different sha differe differentator. Its definitely winner take most and were seeing that with amazon and retail and certainly with facebook and google and digital advertising. 80 of the advertising is going to those two companies Michael Lippert lets now head to sue herrera with the latest headlines. Indeed, i do. Thank you very much. Melissa. Heres whats happening at this hour, everybody. The owners of the three Mile Island Nuclear plant in pennsylvania have formally notified regular urtors of thei previously announced intention to close the plant exelon sent a letter saying that that plant would be shut down around september 30th of 2019 for economic reasons ford recalling more than 400,000 transit vans and buses from the model years 2015 to 2017 its dued to cracked drive shaft couplings that could cause the vehicles to lose power pope francis repudiating the idea that suicide bombers could be considered martyrs. He says true martyrs do not harm others, but rather are meek, honest, and persecuted for their faith as true children of god. And michael bond, the creator of the Paddington Bear has died at the age of 91 at his home after a short illness the marmaladeloving the bear first appeared in a bear called paddington in 1958. The books have sold some 35 million copies worldwide so everybody have a little marmalade today. Thats the news update this hour melissa, back to you sue, thank you, sue herrera lets get to our trader blitz now. First up, General Mills popping, 1. 7 youre long calls . Yep and knock on wood, the strong was roughly 56 and change a couple weeks ago unusual call activity. Again, last week, unusual call activity they beat on top and bottom line they increased the dividend and theyve cut back on promotions, mel, and various other expenses. Thats how theyre beating here. Im out of it here, though, because it popped and it was almost 2 higher in the premarket than where it is now. K. B. Holmes shares are trading higher as well, up 3. 7 . So its trading at a fiveyear high, i think. I dont know how many times i can miss this sector another notch in the belt. Lennar doing quite well. Sector seems to have some legs underit, despite the bad news we got from the data. I dont think theyre expensive, terribly expensive, but definitely not cheap Western Digital being sued by toshiba for interfering in its planned sale of a unit its been a monster of a performer. And when you look at where it trades at a pe, relatively speaking, this is a grower and theyve been doing a great job with acquisition people are looking forward, theyre looking ahead, they like Western Digital. That could be 120, according to Morgan Stanley i believe that as well Madison Square garden shares on the move after the New York Knicks cut ties with phil jackson. Jim, you own this stock. You know, i do own the stock, mel. And its fun to think about, what if the knicks were really a contender, maybe this gets them there, but i dont think the knicks being a contender is whats going to move this stock. This stock is severely undervalued if you look at the assets minus the value to unlock, someone cease got to come in and somehow take it private. That should happen at some point. I just cant tell you when i love it at this price. Sees a initia s avisa initia, mastercard initiated at a hold weve had a buy on both of these names for a while, not because we think its cheap, but you look at the longterm prospects, look at management. Youve heard me talk about it, its tremendous, and particularly wheng you think about visa, we actually think youre kboigoing to see better s out of europe than what the Management Team has led on and interestingly, theres increased credit card usage in japan, which could be 1 billion in incremental revenue on deck, the najarians with unusual activity in a stock and a steel name and after the senate punts on a Health Care Vote, the names in the sector to own and vo on ud capitol hill no matter what happens next Halftime Report is back in two munns. Their experience is coveted. Their leadership is instinctive. Theyre experts in things you havent heard of. Researchers of technologies that one day you will. Some call them the best of the best. Some call them veterans. We call them our team. Where can back to Halftime Report. Im Morgan Brennan i have some news for you on fed fedex, which the stock of fedex has been halted and still currently is so fedex announcing right now that the worldwide operations of its tnt express subsidiary have been affected due to that infiltration of the Information System virus thats affected so Many Companies in the last several days while tnt express operations or Communication Systems disrupted, fedex saying no data breach is known to have occurred that the operations of all other fedex companies are unaffected and services are being provided under normal terms and conditions but heres the key part of this release. The company also saying we cannot measure the Financial Impact of this Service Disruption at this time, but that it could be material. Melissa, back over to you. It could be material. Very interesting, morgan thank you, Morgan Brennan. We should note that fedex shares are just a pennys, basically, away from its alltime high, which was set just a few days ago. In terms of the potential material impact, when this stock opens for trade, what do you think happens, juim i think it may go down a little bit, but this is not going to affect very much. In the amazon economy, fedex is a huge beneficiary this is not a stock i worry about. I think if it drops a lot, you buy for a trade. This is sort of like geopolitical risk. Always want to buy when it happens. All right, lets move on. Health care in focus after the senate sidelined its vote on reform yesterday landon dowdy is reporting how the senate has performed since they passed their bill health care has been front and center under the trump administration, and even more in focus following yesterdays decision to delay the vote to repeal the Affordable Care act the xlv is up more than 5 since the house initially proposed its version of the Health Care Bill last month, compared to the overall s p 500, up just 2 . And there are some real bright spots in the sector. Regeneron up 26 , although Chris Raymond of Raymond James thinks that the reaction has more to do with regenerons recent successful launch of a new product, as well as the leak eed executive order on drug pricing, that doesnt call for direct price controls Cooper Companies and mckesson are also recent standouts, both popping up 20 but on the flip side, alexi ioi sliding 7 universal Health Services is lower by 3 . But if and when we do see hsa legislation, he expects hospital stocks and insurers to benefit the most all right, landon, thank you. Kourtney, where are you yo finding value in health care colonel, we dont Cover Health Care at luke capital as a sector, but our clients are absolutely buying and overweighting, whether it is buying some of the etfs to get broader exposure or some of those specific names like the pfizers or the mercks on the megacap names. Im in sell ji, a biopharma play, up about 16 since that move that landon just talked about. Im sticking with that one im in bristol and its not moving its a little better than the s p over the same time frame up 3 versus 2 but the other is up 16 im shooting for those bigger returns, the dioubledigit ones i still like the xpi. I like biotech, but i dont like the pbms theyre going to be the odd man out. The xpi and iwbi. The xbi was so oversold for such a period of time im hardly surprised. And there are specific names within it that you can look at alexion just came up as a loser, but honestly that had nothing to do with aca or any of the other legislature. It had to do with personnel turning over within a sector like this welcome you can find plays like that alexion is a great value unusual activity in a steel name and a logistics player. The najarian brothers are tracking all the activity. But first, take a look at the dow 30Halftime Report is back after this if you could book a flight, then add a hotel, or car, or activity in one place and save, where would you go . Expedia. Tget ready. Oh, no run for the breakout event. [ minion gibberish ] of the summer. Were going back to villainy. Despicable me 3. Rated pg. The financials are up more than 5 yeartodate our Financial Partners at kensho reports, when the xlf gains more than 5 in any sixmonth period, they pull back 1 in the next month. The biggest winners in the group, moodys, invesco, franklin resources, and xl group. Now back to the Halftime Report. Well, the brothers have made their way over to the telestrator for a double dose of unusual options activity dr. J. s up first. It turns out the former cto over at trade monster moved over though this company about a year ago. Its up 165 way to go, san jooeb take a look at this one. Xpo logistics, up big again today. And people are betting on more coming out of it, mel. Its up 9 yeartodate. They scrambled in today, bought twomoney out of the day calls they sold the calls against it theyre setting themselves up in a 5 bull card spread or vertical call spread evening thats a great way to play it. I scrambled in and bought these calls, as well loved the upside, here i never wanted to get out of this one since sanjeebs been there and the stock continues to perform today. Pete, youre up take a look at the steels last night we had an opportunity to talk about the performance recently and how much activity weve seen across the entire space, whether its aks, ak steel, or mattel first up, u. S. Steel weve had activity in here this is number eight for the month of june where weve seen unusual upside buying. Now were seeing the july 24 calls being bought aggressively. We saw the august calls just a week or two ago. It just continues to come in you can see these volumes. Big buyers just continue to want to be in this. Are they investing or trading . I would tell you theyre trading. Im trading, as well ill be in this and aisle hoim on to my previous calls before in august, but ill be taking those off fairly soon as they react. And i think we got an update n n something from earlier last friday we sat here and i was in minnesota by remote, we were talking about arcelormittal. They were paying 30 to 35 cents for those calls. Today those trades are trading a little over a dollar its a great opportunity im a trader im taking this off. Im out of that trade. Great move fortunate to see how these metals have been moving to the upside so fast thanks, guys. Lets take a check on fedex. It reopened for trade in the past few moments or so it is now higher, still by about 0. 7 it had been halted up 2. 1 a little bit of an impact. Fedex saying that it and its tnt network is seeing significant outages. Were watching fedex but this is just about 1 plus away from alltime highs is this your nobodys going to fall for selling this at this point in time look, if you own a fleet of airplanes, you can get into a hailstorm. Acts of god occur. This is going to pass quickly. I dont think that was an act of god i think you know what i meant. Smart alec all right lets take a check on the markets here weve got the nasdaq up by about 1. 2 its the best day for the dow and the s p in two months here but it looks like, in terms of yesterdays losses, when it comes to technology and some of the growthier areas, the russell 2000, those are the areas that are seeing the strength in todays session. And they were the weakest yesterday, to your point, exactly. So seeing that turnaround be so qui quick, mel, i think yesterday was overdone people said it was because they delayed the Health Care Vote i thought that was complete crap i think its a great opportunity like all of us said here on the desk with desk, when you get a chance to buy on a 2 pullback if youre an investor and youre waiting for the pullback, youre sort of just waiting. You are waiting if you like a name and you like it for the longterm, you better get in figure out where you think your price target is at the end of the day and get in if you like the fundamentals of the company, get in. Youll be able to wait and wait. And mad you bought on the high if you like the name for the longterm, get in where you can. And you know what else . You dont have to buy the full position, if youre worried about the price, kourtneys exactly right. Buy half the position. Then youre feeling better if youre waiting and the stock is going up, youre making money. And its okay every once in a while. But you never do that. Steve definitely not, ever. Goldilocks and the three bears. Power lunch is coming up. The rise of cost of health care, can it bring down drug prices . Plus, all the new technology in cars is supposed to make it safer but is leading to more distractions and more accidents. Well speak with a competitor named freshly. Could they be next in line for an ipo in the meantime, up next on halftime, well have the trades stay tuned for your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Welcome back to the Halftime Report. Im Jackie Deangelis supplies still hover near alltime highs for gasoline. Weve talked about this. Twice in the past decade have we seen it that it was cheaper in june than in january why is it happening . Jackie, its actually a phenomenon that is hard to explain but i would attribute it to fracking. Youre hitting cheap crude oil out of the ground. There are great margins and they are refining it into product they are making too much of it demand isnt there right now we are at record high near supplies i would expect cheap gasoline subpoena plays to continue through the summer. So what is the trade . If it settles above 1. 46 today, i think it heads higher to 1. 53. I think id rather be long than short. Thanks, guys. Meantime, catch our live show tomorrow at 1 00 p. M. Eastern time halftime is back after this. Announcer miss the blitz, the call of the day or unusual activity with the najarian brothers no problem go to cnbc. Com halftime to see the moves, the trades, who is winning and who is losing. Plus, breakingnasis t alyofhe top stories. Cnbc. Com halftimereport. 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. [ light music playing ] youve wished upon it all year, and now its finally here. The mercedesbenz summer event is back, with incredible offers on the mercedesbenz youve always longed for. But hurry, these shooting stars fly by fast. Lease the c300 for 399 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. The power of innovative thinking. The power of 100 of the worlds top companies. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Announcer todays leaders are bank of america, General Mills, prudential financial, and for more go to cnbc. Com iq100. Markets, as you know, closing in about three hours time lets go to jim. Lets go back to where we started. Citigroup has the most to gain they could really raise that and get share buybacks theyve been held back in the capital return id like to see them and i think they will get approval for meaningful capital return. Steven . I bought stock and, john, you also bought it yep, still in akamai. This stock has those periods, a bad quarter and then a couple good quarters. I like this one. Courtney . Well, our analysts today upgraded dollar tree and i think it was the right move. Pay attention. I wont give away all of the secrets. Pay attention to Family Dollar its time to extract shareholder dollar how they do it, we will see. John . Somebody is probably nervous about the big run for Chicago Bridge but its getting calls. How about during the show somebody brought in 38,000 calls. And that does it for the Halftime Report. Power lunch starts right now. Im Michelle Carusocabrera best gain in two months as three major head feds, including yellen into pl plus, one senator says its time to ban all of the directtoconsumer ads what is the evening newscast going to do . Well debate. And amazon under fire. President trump taking a shot at the internet giant for avoidin