Were declining again today. More on the catalyst markets moving lower guys, what do you think is causing all this, and, joy, what are you doing today . First of all, i dont think this is over in the short term if you want to be in the markets, this is clearly more of an active traders market. Apple, when you run the quantitative model, you can take apple, we all know the fundamentals are fantastic thats what ive done. Yeah. But youve seen the range expansion and the volume increase again, thats for a trade. The larger narrative is about whats going on in the marketplace right now. Its elevated volatility why is the volatility elevated i think a large component of that is the breakout window were in for corporations where they cannot do the buybacks, so that period is going to end in a couple of weeks. I dont think its over, but if you have a longer time frame, this is what everybody is talking about. Everyone wanted a market decline. Well, okay here it is finally. Its upon us. And then everybody gets frightened. Is anybody buys what are you guys doing . Im panicking, michelle. Youre supposed to. Listen. The max decline at todays lows from the high in the s p was 4. 86 . If were calling this a correction its her lailous. Because its not a correction its 10 . Everyone needs to contextualize the fact we ended the streak 202 consecutive days. That is an aberration, the likes of which we have never seen in this market. You have to go back to 95 96, and that was half the length of time they need not to look at this as any strange. You said 4. 6 from high to lo that tells me, shoot, if everybodys looking for 10 , you dont know. A lot of people have been waiting for a correction. Perhaps. For more than a year, right they say they are they dont really want it. People are uneasy because of the velocity of what has happened to rates. Theyre going up very quickly. If you step back and figure out why rates are going up really quickly, its the Global Growth environmental thats picking up. You had the atlanta fed. That number will get revised down for sure. It always does if youre thinking 3. 5 here and then you had a great china pmi number, and a pui number almost at highs, you are seeing that growth rates are going to go up inflation is going to go up in a controlled sort of way, and the fed is going to move three, four times this year. Okay we know all of that. What are you going to do i quite frankly have been very impressed with Earnings Growth and the revisions higher to earnings not only that, cash flows are huge i dont think if you do get 5 or 10 , i dont know why you wouldnt be picking at Great Companies who just reported great earnings. Just to add onto this, youre so right, stephanie. J k is outperforming the act today which means Credit Conditions are not breaking down in fact, its just the opposite. In fact, we had a consensus s p 500 earnings of 11 growth now its 18 . Some are at i get it that its getting bigger but when Interest Rates rise, dr. J. , theyre going up. Theyre going up but still extremely low. Yes. To all the panelists, i believe its the rate at which they go all. Obviously it was a great acceleration last week and thats why the market gagged and backed up a little bit, and as it did people pulled back their bids and said im going to be patient. Im going to wait and see if it. Obviously at a 5 pullback, michelle, theyre high. Look at cigna. App. Lapper. Schlumberger i guess my point is not buying the whole market but pick stocks that have very good fundamentals down more than what you think the market is where you think over the next eight to 12 months the stocks will be higher. So bids disappeared last week, to johns point. Weve gone from a passive investing environment to an investment that might be more active they need to be wary theres going to be more volatility in the marketplace. If youre an active trader, this is what youve been looking for. This is the environment that youve been looking for. So i think you kind of fills so if lick have to be whats the underlying premise where the 10year yeardley has to stop . Or is it going to three . Its going to three. Is it going to four if its goes to three, well go to 10 . It stopped there to the extent that it stays and doesnt make those leaps, banking through 290, 3, so forth, just on a oneday movement then were not rm people panicked, got tapped on the shoulder for margins or other reasons decided to get out on their own every one of those was a bad decision wells far does was a made decision buying the vix at 19. 21, bad decision all right lets look more at the catalyst. Lets bring in bob pisani. What are you hearing from the traders . What do you think is driving this there are three rriffing. But its unquestionly affecting the market look at the home builder down 7 this year, the utilities, the re reits. We talked 18 1 the tines thats obviously a concern but its becoming less of a concern. Then we have the political risk. This is hard to figure out not only trumps battle with the f but u. Theyd have a hard time articling than you vuld shwoulde now its creeping up again therere not quite sure how much fear should be in the market it was 41 declining, 21. Now its back down again the bottom line is this. Were trying to finding a Comfort Level and the market doesnt quite have it figured out. Got it, bob thanks a lot a lot of people have been called for a pullback, its been so long markets bought a dip. Mark santoli, is this the dip we should have expected heres the thing to keep in mind this is the more normal environment. Whats not is straight up every day without breaks and pullbacks. You had too many things going right at once. New inflows into stock funds, a week ago we were talking about a meltup i think theres a good chance were in this kind of tape for a while where its at, trying to figure out where the furnd mfund mentdals are i do think this is the dip you should have been hoping for, mostly because its really unlikely to be the big whip. Lets dig a little deeper into specific stocks. Stephanie was high lighting components are in correction territory already. Dom chu has some of the biggest moves taking hits lower. Hey, dom. There are a lot of stocks already in connection. But a lot have been recent winners weve seen we took a broader view we decided to scan the russell 1000 out of those, more than half of the ross 18 thousand just in 2018 along e loan. Around 2 of them have dropped a smattering of them is in view. Delta air lines, down 2 macerich, believe it or not they were at 52week highs. Now an 13 fp 17 down from its recent high and wynn casino resorts. These and others, people are looking for it i want to talk about what michael said he said were going back to a normal market and thats spot on we have been in an environment for many, many years where weve characterized the market as not normal we are normalizing rates, were normalizing the way thyme. That does not mean you change your strategy in term. Realizing the gdp is accelerating and the Federal Reserve is putting more supply into the fixed income market theres going to do be mirror. Its what you wanted, here we are. Ironically enough, i thought the statement from the white house was perfect. We were headlined for the show were all concerned, but the economic fundamentals, they remain very strong isnt that true . Are you all agrees with santoli, where he says it doesnt look like the. The big effort kwets you have to ask our is it. In fact, the yield curve is flattening instead of steeping ems. Two in the its twoes the two and the ten. Two and the ten wejts from 48 basis points to 73 thats pretty severe deepening thats a good sign so everybody is buying the bank as a result the 200 day is still 8 below where we are right now so to be even talking about a change in trend, its so premature, i think the Bigger Picture is maybe 20 vix doesnt make sense or 19. 2, wherever it stopped, but probably 9 double either and well find the spaces that is more appropriate. You own banks . Jpmorgan s a fund flow. The stocks been in a remarkably steep uptrend there are stocks you can buy that are not going to be boohooing over higher rates and might be a benefit into the next quarter they report. Of all the banks ive been adding to and i own a lot, goldman gave an increase in the volatility, an increase in the commodity complex, the cheap valuation. The stock has lagged big time. I added to it. It got hammered last week. Nibbled at it again today. I think the environment sets up. The volatility, the whole thick premise as to why they should do better. Recommendations on a financial strike. I like it steph and i were talking as we were getting ready for the show, i said a lot of folks pumping out wells fargo at 57 and 30 this morning in the premarket, but i think when you look at the washout that mike santoli was speaking of that we havent seen yet, friday came pretty damn close though because we had 36 million contracts change hands one of the biggest option turnovers came on friday with the 666 drop. Buy wells fargo everybody and their mother concerned about the ability to grow because feds are going to cap their assets. The Financial Sector is still not all about wells fargo. Yes, it is painful when you look at wells fargo. Youre not saying buy wells fargo. Buy something else. Why would i go after wells fargo where it sits right now when there are other things we talked about it last week when we were up in minneapolis with jimmy cramer. Could we still hit 55 . Yes. Getting to be the beneficiary that came off the table in there but still says higher rate, theyve already made their bets today. Back to the financial, what about the and exchanges . What about cfe, i. C. E. , mastercard these positive fundamentals that everyone keeps high lighting, they k50e7 highlighting it you might be very successful, but you need to be nimble. I would encourage you to look elsewhere where the other fundamentals are like i mention thad are in the banks and you get your financial expose insure Insurance Companies must be thrilled with the steepening curve. Theyve been so desperate. Some are worried are they going to pay them out because the fed has suppressed Interest Rates for so long. Great news for the Insurance Companies as well. Yeah. And at the benefit of metlife because they have some internal execution issues i like aig its like a hybrid of life and property wells fargo is trading at 12 times its other estimates. You can get other regionals like suntrust and pnc and you dont have the your hang thats why i think the stock is going to lay i dont think you need to be buying it, not yet. Metlife down 9 in a month. They have their own execution issues for sure. Lincoln financial to me is the best its got momentum, strong fundamentals nothing do with the super bowl and eagles victory lincoln financial is the one to buy. Theyre all happy people i bet. Sure. All right. A lot more on Halftime Report. Dont move. Next up, see why this stock is getting a sudden upgrade. Plus, what the charts are telling one top technician he has a market note out today that makes a very compelling case for investors to do something very specific. Before the break, our data partners on what happens after big s p days like we saw friday. Volatility stays out for a week. In the end, the index winds up positive a quadriplegic la, teup 1. 4 the Halftime Report is back in two minutes. Sometimes, they just drop in. Is and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. 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. And at 4. 95, you can trade with a clear advantage. The markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. Welcome back to the Halftime Report. Lets see whats going on with the market the s p is off by 25 points, the nasdaq is lower by 44 points russell is off by 12 points. Its threequarters of a percent. The s p lower by nearly 1 so the selloff continues, not as bad as we saw at the open, but still. Shares are lower the analysts raising the stock to buy from hold and putting 129 price target on it. Highest on the street. It is our call of the day. Gentlemen do, you agree and lady, do you agree she knows more than all of us combined we say lady and gentlemen. A quick comment, the report is hilarious. The report is, why cant you be more like home depot its about something home depot does really, really well and the big one is catering toward pros which could add up to revenue per square feet. Do you agree with that absolutely. And the dow was lowered by 300 points, go ahead. Lowes has underperformed the reason is they havent been able to execute. Now yu have an activist in it gets interesting. A new buyback. It gets more interesting the valuation to me is a little rich i dont own it i missed it. I do black decker. Theyre in both. Strong opinions on lowes and home depot. We talked about when does lowes catch up to home depot . I think we would all agree youre finally seeing the catchup happen i do think there is some form of a shift. If we want to call it a fundamental story, i agree with stephanie. Its more about the activist being involved i dont see the need to get out of it now as long as you have the strong consumer and you have the momentum in the moment for the name to me us like the update. Lets get to alex sherman he has a news alert. Hey, alex. The entire media world right now is on hold waiting for at t time warner to figure out if that deal will or will not go forward. One of the dominos that may or may not follow is whether or not comcast decides it wants to have an overbid over disney on those assets that fox sold to disney late last year now, my sources indicate that this is still something comcast is considering theyll only do it if the at t time warner does go through. Therefore they would say we believe the vertical integration is okay. If it doesnt go through, comcast wouldnt risk overbidding. Thats one of many possibilities that may or may not happen as Media Companies continue to wait for regulators to weigh in achlt and the court system to weigh in i dont know if you see in your report, alex, disney is moving lower as well maybe the idea is theyve got to up their bid as well but you are saying nothing is imminent here, correct, as we see these stocks respond in a nanosecond. Absolutely. Nothing is imminent. Nothing is decided here. You can read more on cnbc. Com. Yeah, comcast is considering this if a number of things happen no decision has been made. And, in fact, the idea that they may overbid is not exactly new but the fact that theyre still thinking about this may decide that traders look at this one way or the other so many Different Things have to happen between now and when that may or may not happen that were still a ways away with that decision. Thanks, alice. Straight ahead, jon najarian is using the market for a big move hoe see as what he sees next i just read the teleprompter folks. Only the utilities are positive today materials discretionary all the way to energy are negative when it comes to a s p 500 check. Halftime report is back in two minutes. That youre idling in your car, youre sending about half a gallon of gasoline up in the air. That amounts to about 10 pounds of Carbon Dioxide every week. malo hutson growth is good, but when it starts impacting our quality of air and quality of life, thats a problem. So forwardthinking cities like sacramento are investing in streets that are smarter and greener. The solution was right under our feet. Asphalt. Or to be more precise, intelligent asphalt. By embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. Then that data runs across our network, and we use it to optimize the timing of lights, so that travel times are shorter. Who knew asphalt could help save the environment . Hey maya. Whats up . Hey so listen, i was taking another look at your overall financial strategy. You still thinking about opening your own shop . Every day. I think there are some ways to help keep you on track. And closer to home. Im all ears. How did edward jones grow to a trillion dollars in assets under care . Thanks. By thinking about your goals as much as you do. You myour joints. Thing for your heart. 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 halftime lets get the headlines from sue herera. Thanks a lot. Leaving the Customs Union will lead barriers in trade he also says its time for britain to decide whether it wants to remain in a Customs Union, arguing time is running out ahead of that plans departure in 2019. An alleged computer hacker has won his appeal he had been charged with cyber hacking in three states, new jersey, new york, and virginia. Russian sports officials criticizing the iocs decision not to allow 15 russians to the Olympic Games after their doping ban was overturned. And nc says preliminary nielsen data says the Television Audience for the super bowl dropped nearly 3 from last year about 40 tuned in to watch the Philadelphia Eagles beat the new england patriots, 4133, and that parnl was down from 2017. It was a great game. Thats the news update this hour michelle, back to you. I dont watch football but i loved it hardly any penalties, they moved fast. You got it. Lets head to the telestrator. Jon najarian is tracking two brands. H brand and hmi its moved up a little bit theyll be in these calls for about a week, by the way february 21 calls. So theyve got a little time to run, but theyre just in the money. They were also selling another call against it. So its a call vertical spread but nonetheless, like the activity, and on a down day to see people speculating on the upside and in the money call, like that. I bought it. Second one, take a look at Anadarko Petroleum this is furt