About 18 times because earnings are slowing and thats a premium valuation that we get when earnings are moving higher and its expanding. You can go back down. You can go back down to 1850 but you have issues coming up. One of them is the dollar to be strong and everybody is going to focus on the brexit which is a june vote but the news will pick up and then of course president ial election. You tend to look at the economic numbers that were not great. Thats good because i dont think that the fed goes you dont know what to believe when it comes to the fed because what some have called a dove fest of last week and then now this week you get some of the seemingly more dovish people talking like hawks. Well and its confusing to the marketplace and its the reason that were correcting right now and its a healthy correction. I dont think its being met with much volatility in the marketplace and looking forward over the next couple of weeks the economic numbers are going to be important. Ism manufacturing and payrolls but an extension of the rally comes down to the earnings were going to get coming up in the next three weeks. Guidance is going to look good. Some of the comps are going to look good. Flat continues to be the new up. Were in a sideways range basically. If there is an opportunity for the market to correct i think it presents itself more in a may time frame. Not necessarily april. Theres people that think that the market over the last five week period has just gone too far, too fast when not enough of the fundamentals have changed. That it was as we have talked about on the show, the dash for trash, the Short Covering that have lead stocks higher. I think he was mentioning over the last couple of days that the average stock is still 20 off of its highs have we gone too far too fast . We have probably gone too far too fast however the reason i think we can go much further is because much lower for much longer. When you start factoring in what mario draghi said just two weeks ago when he said much lower for much longer, banks will be available to borrow from 2021 at a ridiculously low rate. Theres going to be negative Interest Rates throughout much of the european zone for years to come, judge. I dont know why you would want to bet against that. Now as far as a 5 correction, could we get Something Like that . Some of tlefls steven just talked about . Sure we could. Its not really what im betting on but after a sharp rise i wouldnt be surprised to see us pull back a little but depending on the stocks they buy on the pull back that will be telling us how far we go next. Our next guest isnt just looking for a 5 pull back. Hes looking for something more than that. Lets bring him in. Welcome back. Thank you, scott. 10 is around the level youre looking for. Why. Because we are like you just discussed in a rangebound market but the range is big on the way up. We overshoot due to liquidity issues so we get excited about central banking and we get excited about Corporate Cash being put back into the market but we overshoot because of liquidity and on the way down we overshoot because markets not only price in fundamentals but they amply identify the effects of weakening fundamentals this is a range bound market. The range will get bigger overtime which exposes it to break out one way or the other. Its too early to say which way but dont be surprised if you see a 5 to 10 move the other way because thats what were having now. What drove us here over the last five weeks . Wasnt it the belief that the u. S. Was moving further from recession rather than closer to one. Has that tie anonymousic changed once again . Two things. One is we overdid it in terms of the recession call. Things in the u. S. Arent that bad and second we had Central Banks become more active. You spoke about the ecb. Lets not forget the peoples bank of china so youre getting that and also we get support every day from the massive cash sitting on corporate Balance Sheet that gets deployed back. Either merger as m a activity or through stock buy backs so there are liquidity reasons that push it up but nindal reasons that push it down. What about the notion that the fed just simply lost its kred . Every day now were hearing another message that seems to conflict one that we heard previously and in some cases for the very same people. Yeah. Thats a fed thats data dependent and the data is all over the place. So if it were just the u. S. , just focus on the u. S. , they would hike at least two times this year and they would be very consistent in terms of their message to normalize but the u. S. Is operating in a weakening neighborhood. The Global Economy is getting weaker and not stronger. Therefore they get conflicting data globally and the dollar has a huge influence on that so when youre data dependent as they are you will come out looking inconsistent but theyre not really. Theyre just trying to respond to very different messages. Domestically and internationally. A question on europe. I seem to get it wrong. Europe cant seem to get out of its own way yet you see some of the economy is getting better. Spain is getting better. Whats your take on europe and is it a place to really put a descent size in your portfolio in terms of your equity portfol portfolio. There are pretty big differences. Valuations are incredibly fluid right now its very hard to make money in this market the Old Fashioned way. The strategic longterm positioning. Money is made in two ways. One through tactical positioning and second, and the tactical position means you have to respect the rangebound markets and secondly, through volatility trades. That is how you make money in these markets. Enjoy the long weekend and well see you again soon. Lets hit one call. This ubs call to sale wells fargo. They say some of their Energy Exposure is concerning. That the majority of the exposure that they do have is below investment grade. Its a little bit late though. And relief as it relates to high yield. Lets not forget the value of the mortgage franchise wells fargo has and the ability to have that be a catalyst in the spring selling season. Thats going to work to their advantage. I disagree with the call. Buffet was adding to it on the latest release of numbers that we got so we knew that one of the Worlds Largest investors wasnt getting scared out and was buying more of it. Barclays moved their target up to 63 you use this to get back in. Everything thats great about wells fargo he took as a negative. I like it. It made me want to buy the stock and not sell it. Heres whats coming up on the halftime report. Still ahead, he was offered the coo job at yahoo and turned it down. He was also streaming media online before netflix even existed. Billionaire investor and tech visionary weighs in on yahoo . And the next frontier hes disrupting right now. Plus, turbulence in the friendly skies. The activist investor who is shaking things up at United Airlines goes on the record. He joins us in an exclusive tv interview. Its all coming up on the halftime report. Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. patrick 2 pretty great. Ke to be the boss of you . patrick 1 how about a 10 raise . patrick 2 how about 20 . patrick 1 how about done . patrick 2 thats the kind of control i like. And thats what they give me at national car rental. I can choose any car in the aisle i want without having to ask anyone. Who better to be the boss of you. patrick 1 than me. I mean, you. Us. vo go national. Go like a pro. Were back on the halftime report. Once again targeting yahoo . Dom has the details and this is stepping up its fight to the upmost level i guess. Absolutely right. Its been on going for quite sometime now. Taking to the next level here launching a full proxy fight with yahoo over Board Members. Starboard managing partner, Jeffrey Smith wrote, quote, we believe the board clearly lacks the leadership, on apologetic activity and perspective needed to make decisions that are in the best interests of shareholders. If you take a look at the names, starboard is nominating here, you have bridget baker. Brad buss, a former cfo thats a hand full of the names. Starboard has been a vocal critic of the management here most recently asking yahoo to separate its asian assets to sell its core business. Starboard does own less than 1 of the Overall Company and you can see those shares flat down fractionally on the day. Scott, back over to you guys. Thank you so much. Yahoo is responding say that theyre going to study the director nominees and theyll respond in due course. The good thing is we have somebody to respond on that story right in the here and now. A man that once sold a business to yahoo . He is todd wagner. The cofounder of broadcast. Com. The man who along with mark cuban sold that company to yahoo in 1999 for some 6 billion. Today he is the ceo of 2929 entertainment with Properties Like hd net films, landmark theaters, Magnolia Pictures and a stake in lions gate. Were going to talk netflix, twitter, so much more. Hes going to be with us for the rest of the hour and were excited about that. Its good to see you again. Its been awhile. Thank you. Great to see you. Lets get into this yahoo story because you have this really interesting connection with this business from long ago. Whats your read on whats going on there . Well, i think to cut to the conclusion of that story and hopefully well talk a little bit about the way yahoo was before. I think theyre at a point where you have to sell the company. I mean they are at a place where they had the do overs. More do overs than most companies. I dont know what it s. Likes six ceos in the last 8 or 9 years. Unlike other companies were going to have unified leadership thats been there for a period of time and you can count on. Yahoo has been almost the opposite in that it breaks my heart because we were there when yahoo was google of that era and watching what has transpired over the years. What would you have done had you and mark somehow stayed along for the ride after you sold broadcast to them . Well, as you know i was offered the coo job at the time at yahoo . It was a difficult decision because again they were so high profile at the time. I think what happens and you see it with the company that are succeeding how quickly it can change. I know well talk about twitter, yahoo this was only 12 years agatha these things were happening and i think what happens sometimes is Companies Get in the lead. There can be a bit of arrogance and prevenn defense as opposed to risk taking. With all the companies you must continue to take risks. For example, one of the reasons why i love facebook is zuckerberg takes risks. He buys instagram and does things. Yahoo sat on their heels for awhile and said this is how we do things and we have watched a steady decline of a company that shouldnt be in this situation but i think now it is. I am so struck by comments that you made with us five years ago and im going to read them because you could have made the exact statements today. What yahoo faces on december 6th of 2011, the classic case of brain drain when you have a vacuum of leadership and some of your key people leave. Its very hard to turn the ship around. Its like getting your mojo back. They have to get their mojo back. The best way is to have the right leader, the right ceo and theyll attract the people that give you the chance to turn it around. You said that six months before Marissa Mayer got the job. Couldnt we be saying the exact same things today . The only reason id say its different today is i dont think theres the chance for the next turn around. In my opinion its almost too little too late its time now for someone else to own this company and do Something Else with it. So yeah its still a great name and a great brand and a highly trafficked website but i think that the day has passed and now its time for new leaderships. What should yahoo have been . The next great media company. When he the opportunity to buy the mgm library back in the day. Theres so many opportunities that yahoo had when it had a 100 million market cap and growing that it didnt take and including an almost acquisition of google so theres all of those theres always those stories. Monday morning quarterbacking is easy but this has been a trend that we have watched for many years and to your point, my quote from years ago could almost apply today except for now unlike then i said oh lets see what happens. Now i dont feel that way. I feel like maybe its time for them to be sold. I would have sold microsoft years ago. A lot of people wish they did that were involved in that period of time. Who potentially would be someone that would be the acquirer. Would it be a google or a verizon or someone of that nature. I think to me at this point its anybody that wants those. It could be someone that wants to Better Connect with the consumer base. We might be surprised. Not to mention an international buyer. So i think to just think whats going to be the obvious candidates may not be right. This could be a surprising story. Lets talk about twitter. One that people are trying to figure out what exactly is going on. Can it improve itself . Where did it go wrong . Whats your view when you look there . I look at twitter as it would be where we spoke a few years ago about yahoo . The difference to me with twitter now, twitter is incredibly relevant. It got an incredible brand. Its now ten years old so it has all the things that would make me say hey, lets slow down and say lets see where we go. Im a little concerned that a person is ceo of two companies that always troubles me. That somebody is going to be busy to be able to do that but its way too early to say that its over for twitter anymore than when we were on here and spoke about netflix. They are relevant and they matter as everyone on this program knows people use the product and its not going anywhere soon but you question whether jack can run twitter at the time of a company. To be a Public Company ceo is an incredibly complex task in and of itself to rye to have two organizations is doubly hard and theres only so many hours in a day. Hes a founder. Hes clearly a very bright guy and the board made the decision knowing full well that that was what they were signing up for. So lets wait and see before we call that one. We have a lot more to talk about. We are going to discuss the ten Academy Awards hes been nominated for. You have probably seen some of the movies he has helped get off the ground as well. Wouldnt you guess that the people who have seen the contents of that envelope might have who. A better idea of what makes someone a danger to his country. Who are these people . Are they elected . Are they appointed . Is it you . Were going to get his take on media, the streaming wars. Yes, of course netflix as well and so much more. A new business he is disrupting as well. Plus our exclusive interview today with the activist investor taking on United Airlines. Brad gerstner joins us to set the record straight. Those details are ahead. As we go to the break a look at the dow 30 heat map on a day when the dow is down 70. Were back after this. Some say free the whales. For them, nothing else is acceptable. But nothing could be worse for the whales. Most of the orcas at seaworld were born here. Sending them into the wild wouldnt be noble. It could be fatal. When they freed keiko, the killer whale of movie fame, the effort was a failure and he perished. But we also understand that times have changed. Today, people are concerned about the Worlds Largest animals like never before. So we too must change. Thats why the orcas in our care will be the last generation at seaworld. There will be no more breeding. 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Its a new day in retail, and together, were building the store of the future. Digital works for retail. Lets talk about how digital works for your business. He was a pioneer in the streaming business paving the way for Companies Like netflix. Lets talk netflix. Youre a shareholder and youre a true believer in read and what that company is doing. Has any of that waivers at all. Its nice when youre right. But nothing has changed. In fact im almost at the point of i dont want to say, quote, double down but to the point that i admire them even more. Theres a theme i look at with Successful Companies over and over again. In the Sports Industry you try to find a great coach. In the movie business you try to find a great director. In these businesses im trying to find great leaders. And the folks that you trust to make the left and right turns. Reid focuses on one part of the business. Ted is very much the hollywood Creative Content force. These two guys, basically, to use an old anlage, they have been playing chess while everybody has been playing checkers out there. A few years ago, everybody was like the studios wont license content to them anymore. Theyll never been b