We begin with the stocks on the rebound this hour led by of all things the banks. Financials flying on word of a big shot jumping in. And buying his own stock. Jp morgan chief jamie dimon with 500,000 shares on the open market. It is a 26 million move that has us asking, and jamie, we trust. Steve, should we . I think its a great move. A lot of his employees get paid in stock so it really shows that theyre safe because that can really, you know, disenfranchise a company and plemployees. But yes. You should. The valuations are dirt cheap. I was talking to somebody about this yesterday. Its in the banks and wells only 2 of their book is in energy loans. Citi is less. Jpmorgan with other exposure and far up in the cap structure and theyre compellingly cheap. European banks are not quite as clean but very clean and not worried about them going out. Thats good. Josh brown, banks good enough for jamie dimon, good enough for you . Great to see somebody express confidence in their own stock. Its one of the biggest ceo insider buys ever. Okay. One of the wealthiest in history. Clearly making a statement looking at the performance of the stocks jpmorgan before today down 7 and year to date, the stocks worst performing. Goldman down 30. Citi down 30. Keep going down the list and cross the pond with losses worse than that. Yeah. Two elements of this. Separating the two determines whether or not you want to be in the banks. First element is seeing european banks cut in half almost overnight thats a very frightening prospect and they think twice about buying and thinks very hard about maybe they want to lighten up. If you dont buy into that, the second question is are they going to make a lot of money in 2016. If were talking about negative rates in february, its not a great picture. So, you probably dont get much multiple expansion, might have negative Earnings Growth. You have negative revenue. Wheres the Profit Center going to be . A combination of those two things. Separate them out and you say, you know what in the names too cheap. I dont care if they make a lot of money this year. This is where you buy them and then good things could happen and youre a buyer and if youre a buyer you want to err on the side of caution and own jp morgan and wells fargo. Its a sign, jim, the worst is now over in terms of selling in the financials . Well, we can never tell in the short term whats going to happen but i think this is a great sign. Two things i want to point out about this. One, jamie dimon is a proven money maker in banking shares. Again, another group sandy wile and apostles who know how to make money in banking shares but we have certainly had worries in the european Banking Sector and no way he puts money a global bank unless he feels confident that the european banking iffiao doesnt affect the rest of the world. You can see the performance on the newses of, you know, deutsch bank with the bond tender. Rumored to be doing it. Now they confirm it. That stocks up 11 . You have bill dudley coming out a short timing a and saying its extremely premature. Negative rates. All of that kind of conversations is helping out and already decent market today. And the financials, steve, as well. And also oils helping quite a bit, the. No doubt about that. The banks are not going to earn what they used to be able to earn. We know that. Whats been discounting the price . Its been overly discounted, too much discounted. They have traded down with oil, as well. Because of loan books. I like them. Europes more troubled area and solid except italy and the next news is consolidation among the italian banks and another positive step and theres been rumors about that so far this year. Is there too much fear in the stock market right now . Lets ask tobias, citigroup chief u. S. Strategist. God to see you again. Nice to be here. Markets been trading on fear, maybe more than anything else. Justified . Too much fear . Too much fear. Sitting at a lower level than the First Quarter of 2009 staring down the abyss thinking entering a new depression so investors kind of taken on an extremely negative narrative and every piece of data negatively or if its good they say dont worry, next month it will be bad so there is a kind of context that is weighing down and their potential for negative feedback loops and ceos see the stock prices down and worry and cut back. We dont think that happens in a month or two but if it persists months and months then that kind of feedback loop could occur. You could see sort of what kind of fear and where investors were going and thinking by virtue of the move in the tenyear note yield. Over the last really 24 hours alone is a pretty good perspective. Down to 150, low 150s yesterday. Now youre back over 1. 7 . Its interesting when you talk about the idea of a disconnect of whats happening in the economy and then the stock market. Jon paul sen had comments yesterday echoing that. Lets listen and react on the other side. Its a disconnect between the performance in the stock market and the performance of many companies, particularly, you know, that we have invested in our portfolio. That the companies are actually doing very well and yet the stock prices are declining so thats kind of an imbalance and eventually that will sort itself out. Tobias, is he right . Look. I think so. Let me give you two examples. We look at hiring intentions. The nfib survey showing hiring intentions. Thats a oneyear lead indicator on the unemployment rate. Number two, if you look at things like the pmi manufacturing ism numbers, it broke below 50. Everybody says recession, recession. This is the 14th time breached below 50 since 1990. Im an old industrials analyst and i like the data. Only prior three times ended in recession and three beats ten in a new sport im not aware of. You say in a note it feels more like 2011, 2012 than 08. Yeah. Look. Again, we wrote a piece a couple weeks earlier listing 16 Different Reasons why it wasnt 2008. You were talking about the banks. The banks better capitalized today than 2007, 2008 timeframe and you could say lower leverage in an institution means it more valuable and valuation should be better. But nonetheless, you know, thats one of the reasons but there are 16 Different Reasons we play out. If you think about 2011, 2012, it was a mid cycle correction. People got nervous, fearful about the debt in europe, fearful about the u. S. Losing the aaa rating and this was going to turn into some kind of disaster. And its kind of hard to get there. On the data im looking at. Tobias, good to hear your point of view today. Take care. Thank you. What about this notion, jimmy, of what john paulson had to say . Its absolutely true. Absolutely true. The paradigm is a man walking a dog down a park path. The dog is walking all over the place side to side. Thats the stock market. The economy or in this case Company Fundamentals how theyre doing is the man walking just down the middle of the path. And thats what you have to remember. The stock prices gyrate all over the place and buying the right companies over time the share prices match up with the Company Fundamentals. So i would agree with that for the most part but i would count we are the fact that there are documented instances where youve had the stock market throw the real economy into a recession. 2000 most recent example. That was a stock Market Driven recession. And, of course, the most famous example, the excesses of the stock market in 1929 causing an economic crash so it it can happen. It just doesnt usually happen. And we can have a bear market for stocks thats cyclical. That happens, too. People need to i think have that context and not interpret every stock market slide as this is it. This is the big one. There are a lot of different examples of things that happen in between but i would not knee jerk discount the idea of that negative feedback loop, especially when the wealth effect is what the feds banking on. You have your eye on 1850, where we are on the s p. Seems reasonable to you . Its fair. Its fair value. 15 times. So whats the catalyst to drive it to excess value . To get to the 18 times . We dont have that right time. What josh is talking about is very true. Reflexivity. Its a negative feedback loop that feeds on itself. Take a look at why its happening. The normal tools that we use to see if the economys slowing giving us a head fake and thats a cds spread. We have talked about it in europe. Thats the 30year bond. Right . 30year and tenyear. Tenyear trading at 15. Recession levels. You think this is a head fake . I think yes. I dont think its recession. The fed does not hold on. The fed does not control Inflation Expectations in germany. The fed does not control debt dynamics in china. This is a Global Economy. There is no playbook for when you have this massive gravitational pull down in bonds and to steves point, youre looking at these things and not looking at them in a vacuum. Forces at work beyond the fed to influence with their jawboning and its just something that we have to get used to. Paulsons point to michelle is the stock market is reacting out of whack with the real state of the economy is and going to in his words sort itself out, ie, the stock market is poised for something once it realizes that the economy is not as bad as people want to believe it is. Not saying its amazing but not nearly as bad as people think. S p 500 with more than half of the revenues and profits from overseas. Many parts of the Global Economy in outright recession. Manufacturing here in the u. S. Is pretty much in a recession. I dont know if thats entirely true. You know, there is a factor at work that i dont think were talking about here. Distressed sellers. We are seeing it in some of the smaller cap names we own. On tuesday we walked in and a small cap name opened up down 9 on two thirds of the volume traded in the first 15 minutes. You know what that is . Thats a margin call happening. We dont know who that is and thats another distress seller. Lets wrap this. Finish your point. I want to take a break an come become and talk about oil. The margin seller is not working the order. Hitting the sell button and thats it. You can have the market going higher. Im not sure we have seen all the distress sellers yet. Traders holding out hope a Production Cut is coming. Plus, netflix downgraded today. The stocks already down 25 in the past month. We are going to debate the future of that company. As we head to break, a look at the s p factor heat map. Led higher by the financials. Youre watching cnbc, first in business worldwide. To thrive in an everchanging environment, Companies Must adapt. But one thing should remain constant a financial relationship with someone that understands and cares about your business. Pnc corporate and Institutional Banking offers strategies tailored to your companys needs. Know that our dedicated teams of local experts offer insight to help you achieve your business objectives. See how working with pnc can help your company grow at pnc. Com ideas welcome back to the halftime report. Shares of l brands turning negative now after being up by more than 2 as the Company Announcing the resignation of the victorias secret ceo. L brands ceo leading it in her place. The shares down more than 13 over the course of the past 12 months. And, yes, i know its hard to Pay Attention to what im saying seeing videos like that. The most important part of this discussion, vick tore whys secret represented 63 of the l brands. Impacting the stock. Back over to you. Dont sell yourself short, dom. Get that confidence up, my man. Up there. Crude is rebounding sharply today following reports that opec is ready to cooperate on cutting production. Our next guest sees more. You dont think we put in a bottom this week . 26 and change. Im sorry to say, no. Why not . There is just too much bearish news out there to come and there is nothing new yesterday that was said. This is overblown. There was a lot of momentum players in this market and, yes, this is your worst nightmare. Short covering. This is your worst a headline this, short of the market an youre going to puck your position. Thats what we are seeing here today. You dont believe my of the opec hype. No. What pushes opec to finally do something . I think if theres got to be more wreckage globally. We are starting to see it. Starting to see the dividend cuts and cut dbacks and the saudis arent satisfied with the level of pain inflicted to this point . In. Thats when youre saying, right . No. You havent seen nothing yet. Not accomplished yet. Theres no bankruptcy. Dividend cut ice the Oil Productions fall that we saw from last year has plateaued. Its 9. 2 Million Barrels for 5 months even with the plunging rig count and today it turns out the oklahoma folks underreporting to the tune of 100,000 barrels. Why wouldnt the refiners be a screaming buy . Theres two phases. Diesel glut and huge gasoline glut building. Differentials pretty hard. The winter grade now moved out is going to just be gibb away. I think in the next few weeks. Without a meaningful Production Cut, can you not call a bottom . Is that the definitive signal that, okay, thats it . Yes. Well, i think my target is 18. Because i think that is the level where pain should be sufficiently inflicted where you will see real Production Cuts and damage to the oil sector. 20 and 18 . 24 and 18. I think i know it sounds funny but the teenager handle, thats when you get the real attention. I think it also engenders pain in opec and producers. People saying you will see 50 bucks by mid year. The saudis respect going to let it trend up that high that quick. I agree with you. Then everything is wasteful in terms of what they have done. Thats right. A long move back up. Thats apparently it was International Petroleum week in london this week and thats the attitude, too, of the major ceos. Is deepwater drilling and Arctic Drilling done . Done with that story with it in easy to reach places and forget about that . The thing about that, jim, theres so plans already been made and but an opportunity cost. Youre done with it. Thats what the money thats actually whats kept the u. S. Production level at 9. 2 Million Barrels. Rigs are finally coming online. Is a good enough u. S. Economy enough to put a legitimate bid back in oil or is the global weakness elsewhere still driving the train . Its the global weakness. We need asia to come back. Even just some signs of life out of china, when they come become here from the lunar new year, theyll implode and probably deal with that on monday. After that, if they do aggressive action stimuluswise and point to hopelessness demand is still growing. Not enough, though. Its the production issue. Mostly production issue. Right. Mostly production issue. You can make a case its all production issue and cutting it to a certain level you will still have excess demand. Right . I think the slowing the slowing in the economy has cut those demand growth forecasts sufficiently that you need something on that side of the equation. Last point before we got to go. I havent seen anybody an you correct me if im wrong and miss it and i havent seen anyone refute what that statement was yesterday yet. About opec. Theres getting a hard look right now. It was translated, a tweet from the dow jones news wire reporter and to me its the same exact line the saudis using. Of course theyll cooperate, willing to cooperate, happy to cooperate and not cut production. Saudi is only thing that matters. They havent come out an killed it yet. The uae part of that contingent. Saudi arabia thats what im saying. They didnt say anything different than the saudis said and no new news in that statement other than a gulf producer. Other than saudi arabia. Some significance in that . We see crude turn a little bit lower than the best levels. Thank you. Thank you. Coming up, gold is having a best week since 2011. Miners are on a trade today. Did you miss the golden opportunity . Bottom fishing in bio tech. Looking for bargains with a Health Care Fund manager. Want to get their hands on. If they could ever catch you. Think of it as a seven seat for an action packed thriller. All right. Golds been on a tear lately as you know pulling back though today as stocks gain some ground. Jackie deangelis with the latest. Hey, jackie. Good afternoon to you, scott. Gold is taking a bit of a breather today as you mentioned. More risk on the tibl and still on track for the best week since 2011. Anthony, would you want the gold trade here . I would. The reason its rallying is the uncertainties in the equities market and expect it to continue. That provided a Good Opportunity for people that do want to get long to buy it on the dip right now. Brian, talk to me about the levels. Yeah, looking at levels, three things to keep an eye on. Dollar index below hundred is bold. Tenyear below. Love 1189, a true breakout for gold here. It struggled many july and back above the 1189 and staying above there, the bull target is on and bull target in the cards for gold. Thank you for that. Well be back on tuesday with the live show. Scott, have a good weekend. Likewise. Thank you so much. Coming up in the crosshairs, the maker of call of duty and world of war craft is plunging today. Whats going on with that activision . Defanged, last years big winners, this years losers. Look anotht those performances to date. Which ones to bet on in 2016, which ones would you buy right now . Well find out next. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Hello, everyone. Im sue herera. Saudi arabias foreign minister says the Islamic State will only be defeated if syrian president assad is removed from power. Speaking at a security conference in munich, he says that that goal will ultimately be achieved. Facebook losing a crucial legal battle in europe. A paris court ruled it can be sued in france over its decision to remove the account of a french user who posted a photo of a famous 19th century nude painting. The ruling could set a lega