We have second half strategies coming up for you. Vertex, activism, blizzard, and within resorts are among the winners in the stock market today. Good gains thats just showing you todays gains there. Foot locker, devon energy, and kroger are some of the bigger losers we always try to discern larger trends from looking at the individual stocks. The kroger story we know well. For sure. Whats old is new again well get you details on a firms turn around plan. You may have heard Berkshire Hathaway is now the largest share holder in bank of america. But thats not the only company where warren buffet is the top shareholder. I love that story, he bought the preferred. They raised the dividend he converted and now he made 12 billion in the process. You have to hand it to hill when everyone was panicking, he stepped in and made so many deals. Buy low thats how that works. Lets get to the market. So far the nasdaq is up more than 14 while both the dow and the s p are up roughlile . But thats starting to show signs of changing here lets get to the closing bell he can change for strategies for the second half of the year. Chris care daro is next to peter costa from empire executions and Rick Santelli checks in from the cme in chicago peter, you famously exited the market before the beginning of this year. I dont think you have gotten back in. You have been shorting this market im going to tell you im almost thinking about doubling down because i really think we are getting to a point where you have valuations you know what everyone is saying the earnings have gotten better and better. They really havent gotten all that much better and i think that, you know what, you have had this move, its been nonstop that there is going to be some point, an Inflection Point i think its coming up fairl soon you have a you have washington, d. C. As far as i am concerned is a big mores of problems i dont think people are looking at whats going on there as thats going to trickle down, but i think it is. Chris, what about you i see you have picks here. How do you think the mark is setting up for the back half there are values out there. Rts pa of the market like the fangs that i think are definitely too richly valued but i like oils, i like financials and you know weve been moving more of our assets into foreign vem investments. Thats where we are seeing the best values. Funny you should mention, oil and Energy Energy and financials im trying to say, are two of the worst performing sectors the first half of this year i guess you are looking at the bottom of the list hoping they play catch up the rest of the year is that the idea financials came back this week after the stress test. Yes. I think they have got a lot of room to go. As Interest Rates start to increase, a lot of the strategies that these banks employ will start making a lot more money and i think the markets really discounting that. Chris, quickly, on the energy piece of this, granted wtis bounced back a little bit, crude benchmarks over 46 a barrel what if it slips again ble 40 what does that do to your picks . Kinner morgan where the price of oil or gas doesnt matter that much. We are just talking about how much is going through the pipelines. The demand for oil and gas hasnt decreased that much the toll roads got hit this year i think they are great opportunities. Rick, here we are, 2 30, as michele pointed out, the ends of last hour on the tenyear, when we began this year there were plenty of pundits who yet again began the year saying maybe the bull market was finally over fortress reese yet yields are now lower than they were earlier in the year. But they are showing signs of moving higher here. Absolutely. I think the latter actually is the i go bigger story. Bill, you are kplooit completely right, started the year at 2. 44, the high is 2763 that 2. 63 is technically significant. Its impossible to test 3 in 2017 but ive seen wild markets. I wouldnt lay a heavy odds bet on that but i wouldnt rule it out. I continue the say the most important issue if you are monitoring Interest Rates is a yesterday i thought it had an effect on equities, and it did b, you have to really discern what the motivation is, whats the guns hot aspect why rates are going up, not only here but up 21 basis points in the boone on the week . What is going on i think the fact its hard to correlate with economic fundamentals personal consumption expenditures, anything with inflation, should be a big driver of long rates they moderated today as we hit 230. University of michigan was good. Thats not the issue the issue is there is more than fundamentals going on. Its not easy enough to say the long end is looking at growth, it isnt that great. If you look at the gdp for the last six years, it really isnt huge movements year the year to year a little below 2 , a little above 2 if you take our current 1. 2 and the 2. 7 that atlanta moved to today you could argue that really hasnt changed. So why all the volatility in Interest Rates its because there is a lot going on with central banks. I continue to think if that is overlooked other combed over and put into a fundamental economic argument only there is going to be big missing pieces to that type of trading strategy for the rest of the year all right, chris, let me circle back to you you mentioned sitti is one of your picks there exposed to those rates, total being an energy play. You also have apple, already up 25 this year. Are you nerve u. S. That all the hype about the new product cycle will be a risk that is the risk for apple. If you look at apple and strip out the cash its selling at a 15 multiple, i think thats a tremendous bargain for such a bran like apple that just can mint revenue i mean this is a cash machine. And when you are buying it at a 15 pe and you have got the possibility to repay treeiate some of that foreign cash back to the u. S. I think it is a tremendous buy. Peter im going to finish up with you we shoe remind everybody, you are note new to this game. You have been here at the New York Stock Exchange since they built the building. Yes, more than 30 years almost 35 years here. Right. You have seen your run of bull and bear markets here i admire your persistence to stick the our guns on this position how long do you think you can hold out i think there will be a point where im going to have to throw in the towel and admit on national tv i was 100 long, but im italian so really the chances of that actually happening, pretty slim no, i think that if we see, you know, start with third quarter, you start seeing the Second Quarter earnings coming in and they are Getting Better and better, i think im going to have to bite the bullet and say you know what, this is the third or fourth leg of this bull market and all right, i missed the 12 or 15 move on the upside. You know what, earnings are growing and the economy hopefully will continue to grow and start the gdp will start picking up at some point the only thing there is a concern about the fed raising rates, but i you know, i dont know if thats really going to slow anything down. So well wait to see at the end of the center and see what happens there. By that time ill eithering broke or ill be right there is no middle ground. Try to enjoy your fourth of july weekend nonetheless. Thanks guys, see you all later. Appreciate it. Have a good weekend. The dow is up 108 points today. The s p is up 10 the vix is still over 10 the brussels up 3, the nasdaq rebounding as well. E trades board now wants the companys ceo to reinvigorate profits. Have you seen the ads, fly me to the moon with tony ben skpet theity idiot on the yacht . They are funny splashy ads. Like the e trade of old, irrefuse vent. The journal reporting they want their ceo to boost account rates and increase client assets they are targeting those who trade 30 times or more a month but there is stiff competition from firms like Interactive Brokers out there. Will this strategy work . Can you make money on trading and commissions these days commissions is a tough market. There is price wars out there. Schwab and fidelity charge 4. 95. E trade has 6 6. 950 e trade also doesnt have as many Diverse Revenue sorlss as does a rival like schwab they have a bank, they can invest the cash available. They do well on that but they dont have a significant little of independent advisors buying etfs, mutual funds, and they can charge for services that they dont have very maul mutual Fund Offerings compared to competitors. Thats another offering. If it doesnt work they say they will put themselves up for sale . Who would buy them eight ameritrade and schwab and maybe capital one would be interested who knows at this point. What i know for sure guys is that fees are the way a lot of these guys are doing well right now. The board said to him had, figure out what this companys strategy is going to be, what its going to stand for. When it comes the point where they have to make that kind of declaration they have lost their way. Setting targets of 2 or 3 sound modest, easy to do but if you want to do that over a period of many months and many years this is competent competitive. I think its going to be tough to obtain over long periods of time sounds like they are setting the company to go up for sale. Periods of low volatility people are not trading etfs are the way to go these days people are not trading its tough. Record inflows into etfs we reported 16 straight months. I could be flippant and say maybe they need to think about producing tv shows im also thinking if they dont come out and slice commissions or do something how much lower can they go. Zero, they could go to zero and tie other methodology of making money for example, just making money off of selling client services. It is a tough game, though. It is a tough game. Very, very tough. Thanks bob see you at the close. Warren buffett now the largest shareholder of yet another bank lets get todom chu with more on this story and other places where he is a major shareholder. Kelly, bill, first of thul bank of america has one of the biggest brokerages out there in merrill lynch. A nice segue about the exercise of options warrants factoring in the wake of the financial crisis berkshire gave an investment to bank of make with the understanding if they got to a certain financial point down the line they would be able to convert that stake into Common Shares that happened and all of a sudden weve got 700 million shares that berkshire hagt away under Warren Buffett owns. That makes them the largest shareholder in b of a and has a value of 17 billion its interesting because you have 12 billion paper writeoff profit right off the bat its not of course the only company that buffett has a massive stake in berkshire is a major share holder in a number of different companies. Kraft hines, over a quarter of that company is Berkshire HathawayAmerican Express he is a big investor that 17 stake they have makes them the biggers shareholder in American Express wells fargo, the most highprofile bank company he has owned, 9. 6 stake. Cocacola, 9. 4 stake. United 9. 3 . Dealt a, ibm, and others arent up there these are Many Companies that Warren Buffett had a say in investing in and in many cases a personal hand in investing these days its not just about Warren Buffett he has top lieutenants helping him pick these stocks. Still though its amazing when you become the biggest share holder in this many iconic American Companies out there, b of a the latest, guys. Look at that wall there, a whos who, a hall of fame of american iconic brands. We wouldnt have enough real estate to put all his stocks up here. Our wall is not that big. Heading into the clouse the dow is up 94 points at the moment rebounding somewhat from yesterdayses los. The s p is up nine up next, trying to win back the cord cutters a major Cable Company is testing a new streaming service aimed at providing customers with a cheaper alternative to good oldfashioned tv we will discuss the Game Changing potential on this next move coming up. As wall street buttons up the first half of the year, two Mainstream Investors tell us how bullish or bearish they are for the ckalba hf. You are watching cnbc, first in business worldwide baby crying minutes old. A babys skin is never more delicate. What do hospitals use to wash and protect it . Johnsons® the number 1 choices in hospitals. Update today to close out the first half of the year here. Lets see, the best performer, the dow. Look at that, of the major averages today, up almost half a percent. Thats not the high of the session. We were up 117 or thereabouts at the peek to this point, up 97. Not much of a bounceback for the nakd. Check out this years three lagging s p sectors. Energy, telecom, and Real Estate Telecom and lets see and energy especially. Of the 11 s p sectors this year, so far only two are negative the others are all positive here. And its those. Those two right there yeah, exactly. Charter is testing a new service. Its called spectrum stream, an alternative to the traditional cable bundle they will be able to watch select tv content and it can be streamed on mobile devices and doesnt require a set top box. Is charter changing tv service . Good to see you both amy, they have the do something to keep growing this business as consumers consume media in different ways different channels what do you make of this new strategy thats right. I think they are really trying to win back customers and also try to probably address millennials who have been going to alternative ways to consume media, including obviously netflix. Then this quarter you are seeing the launch of hulu and googles you tube video i think they are trying to at least establish a relationship with customers it comes at a time where its two q seasonal week, and one q, you saw cord cutting accelerating. I think i am one of these spectrum users thats the old time warner whatever we are going to call it mike is the idea here that i would be able to keep my internet that im already paying for, layer this on too much it, and the bill would be much cheaper than paying for cable right now. We have got a good deal right now, basic cable, and its like 80 a months. Connect this offer probably would be cheaper. Its currently the test from charter is currently priced at 20 a month. You know, that may or may not be cheaper than what you are paying now. On top . Its really to have a smaller bundle of channels, importantly, espn has been removed from the bundle of channels so its a much smaller offering. To lower the cost is that why . Right, to lower the cost. The removal of espn from this makes the offer much cheaper let me ask you, you mentioned a 25 price but that is layered on the broadband piece of this how much do you think thats effectively going for these days. The price of broadband has been relatively stable throughout the past couple of years. The problem is that so much more tv viewing has been move onto the internet you can continue to pay 50 a month or whatever it is for broadband but you are still able to get a lot of video content. And you can get it from companies that are not charter thats a major drive for charters offer is that this is a service that you can stream over the internet, you can view it on mobile devices probably its much more cheaper than traditional cable bundles. Amy, will we ever get to total single channels a la cart as they call it . Im a boomer i would watch i could guess your three channels golf channel, tcm, for sure, and cnbc. Exactly what i was going to say. You know, there is no skinny bundle that just includes those. I have to go with a much larger bundle. I think skinny bundles are probably the first move that you would see, and probably a la cart is ultimately what Consumers Want i think consumers really do just want to pay for what they watch. The question how do you search and discover new content i think Cable Companies are still trying to push that. Mike just to circle back to your point again, we have very skripd down basic cable type service lets call it paying 80 a month, you would tell me im paying 25 plus the broadband. Is this going to be enough of a savings that its going to attract customers . Right the way that charter is offering this is as a test. Its only being offered to select charter customers right now. It is fair to say that this is definitely a test bay charter to see what kind of pricing options really make sense in the market and whether or not they will be able to get some of the customers that only subscribe to broadband to sign up for a pay tv package as well i think this is not necessarily targeted at the customers who are paying 80 or 100 for internet and tv. When its really being targeted at is the customers who only pay for broadband, who only wand broadband and who dont want an expensive cable package. I think what we are talking about is a specific target market that they are offering this to and that they are worried about losing permanently from the pay tv industry yeah. Mike ill ask you the same question i asked amy do you ever see total a la cart viewing possibilities . I mean its certainly a possibility. But i think you know we are already starting to see some cable tv channels go direct to consumer i know just yesterday outdoor tv offers now has launched a new service that, you know, its 5 a month and its outdoor tv programs and is he you can buy that individually. The problem is that, you know, you budged four of those and you are already paying 20 a nt month. Ill not sure that the al la cart is something thats going to takeoff weve seen amazon attempt this strategy with a program they are calling amazon channels. You can sign up for amazon prime and also add svod services from the likes of hbo and stars and showtime but i still think that there is you know, theres a reason that these aggregated channels make sense im not sure anna la cart scenario is going to be the one that wins the day. Eke. But its certainly going to drive costs lower overall. Yeah. Thats for sure. Amy i dont think, mike danault, thank you for joining us today i think we should brand your that is so funny. You nailed that. Anyway i dont think they can hear us anymore. We are going to a la cart. 35 minutes left in the tra