What we did, we needed help, obviously, from jordan and he gave us that. What was the feeling to have Jordan Spieth standing next to you and draping you with your green jacket, knowing what he must be feeling as well . Yeah. No, it must have been tough for jordan, you know. But he had a bad bit on 12. And, yeah, just, you know its obviously fantastic to be able to stand there in front of all the patrons and all the augusta members and have jordan put the green jacket on me. Callaway is a sponsor but youre going to get a lot of phone calls this week. I wonder, what kind of machinery do you have in place to field all of that interest . Were just going to im letting the guys sort that out while i have a bit of time off and enjoy just, you know, what weve achieved. What is the victory lap look like, danny . Augusta is not a bad place to celebrate. But i imagine there are a lot of friends and family back home in england that are awaiting your arrival. Yeah, thats the one, really. We had a nice get together last night. And now its just a case of trying to get on the plane and get home as quick as i can. Nick and zach and walk in the door and just enjoy it between ourselves. Finally, in terms of what youre doing for the uk, first champ since faldo, in 96. You must be especially proud of that. Yeah, its astonishing, really, there havent been more english winners. So, yeah, you know, very privileged to be alongside nick, you know, as a masters champion. Our congratulations to you. You made a lot of people happy who would like to watch golf this weekend. Congratulations, danny, on the tournament. Thank you. And as kayla said, new dad. Danny willett, masters champion for 2016. That does it for squawk alley. Lets get over to scott wapner and the laugh. Carl, thanks so much. Welcome to the halftime report. Im scott wapner. The masters melddown, not for Jordan Spieth but underarmor shares. One firm doubles down on its controversial sell call. With us today, joe terranova, steve weise, josh brown, Pete Najarian by phone making his way to t to the studio. Under armour, a wall street darling, calling out the companys growth, dropping last night right along with spieths hopes for another green jacket. Josh brown, what do you make of another epic 50page or somewhat note from this Morgan Stanley analyst . They could be on to something. And if they are, the question is how much of what theyve been saying negatively has already been visited upon the stock. Youve got a recent split, the charts a little bit wonky as a result of that. But at the end of the day, it seems to have found support today at a rising 50 day. 200 day flattening out. Not much momentum for two quarters and earnings on april 21st. The real issue for a shorter term trader right now is whats the hurry . Why do i need to be in this a week before earnings that, quite frankly, could represent the companys chance to say, all right, youre right. You know, womens apparel a little weak. Footwear a little weak. Lets talk history. January 10th of this year, is when this analyst over Morgan Stanley put out another, you know, 50 or somewhat page note, questioning all of the same things that were questioned today in large part. January 28th, under armor knocked the stuffing out of the ball. And the stock rose almost 20 that day, throwing shade all over the negativity that was surrounding the stock. It was a tremendous buying opportunity the day that this gentleman put out the note before. Why is it not today . Gave it back. The short answer. People are worried about the bigger picture, not last quarter. The stock is fairly valued, right in the middle. The question becomes he puts a 32 price tag on it, i completely disagree w. You talk about the earnings in january, footwear up 95 . Consensus looking for 60 . Earnings coming up april 21st. The problem is not i think josh mentioned before its not the company thats the problem. Its retail thats the problem. Q4 was lousy for retail. And under armour did well in that environment. Do you know under armour has only missed one time in 4 of 2006. If youre worried, i completely disagree with a 32 price target. I dont see the catalysts out there right now. Because the sneaker business, the margins are so low. To get it back to 53. But 40, 45, you cant go wrong. Thats where it belongs. Forget about a 32. Pete, youre listening in. Do you agree with this call . A longtime supporter of the stock. Is it right to throw a double bogey, if you will, on under armour here, or do you jump right in . I dont know that you jump right in. I think i would have to agree with what josh was saying, that maybe there is no hurry right now that youve got to jump in and a little bit of time to wait. Maybe wait until april 21st date. But, you know, the problem right now for under armour is, they are seeing that great growth. Joe mentioned the 95 quarter growth year over year, just this last quarter. The problem with that is, it only represents 17 of their business. And we heard for so long, scott, that lululemon was getting beat up and everybody was coming after them. Well, if you look at the way lululemon has traded in some of the recent numbers out of them, it seems to me theyre doing very, very well, and they have consistently been able to bring themselves back from what was considered to be a grave. Now its up for under armour. The Morgan Stanley note talked about losing market share. I dont know whether or not thats absolute fact. Were going to find out pretty soon. But the previous quarters havent shown anything like that. So this is a very, very big call. This gentleman, steve, says they believe that under armor q4 same store sales negative. They think running footwear sails trends are decelerating. They criteria a slow down in growth of the womens business. Under armour would say look what we delivered and continue to deliver. Were investing in the future. Were doubling down in the investment in Technology Already paying off. And as kevin plank has said in the past, were just Getting Started here. Whats the street missing . So i dont know if the street is missing anything at this point. When you take a look at the stocks that have had good runups, and under armour had one, back where it was, as josh pointed out. You have a stock selling at a premium to the market multiple and substantial premium always probably will. Unless their growth slows dramatically. So i look at it as others are looking at it. Theres no rush to get in. I mean, this brennan is basically saying look, i didnt get it right last time, longterm story right. So its curious he puts out this report at this point, where all eyes are going to be object him. Either you get it or dont. So i like the story. I dont like this price. I open hes right in terms of the quarter. Because that will provide a great buying opportunity, because markets are very unforgiving if you miss. Totally agree with that, by the way. If they crush this name, because of a seasonally weak quarter, and youre a longterm believer that this brand is important to the up and coming generations, which i am, thats where youre a buyer. Are we discussing that . Right now f youre a longterm player, you dont want to buy the stock here. You would rather wait, even if youre not a shortterm trader . If you dont care. A lot of people care. If you do care, its probably a higher probability estimation that youll have a better crack at it if any of the stuff Morgan Stanley is saying is true. That doesnt mean its a 32 number. You know. Could be 38. If youre buying it in the low 40s, you have to believe its going to the 50s and above. Whats the catalyst to get to the 50s when as pete has talked about and josh and steve, there are head winds for the company. Pete is right. Im talking about footwear. That is a small portion of the business. That is correct. The International Side of the business was very strong as well. But, again, thats something that has to be grown in the future. So you want to hear something on april 21st thats going to tell you, okay, this is a 50plus stock. There is no evidence to that right now. Thats ying its fairly valued. Interesting timing, pete, wouldnt you say . Spieth has the meltdown at the masters. This note drops last night the same time that the Golden State Warriors tie the Chicago Bulls for the alltime wins record in a single season. And theyve got steph curry, their chief endorser in the nba and selling a ton of sneakers. Yeah. It is interesting timing. And as you say, spieth unfortunately with that just awful day on sunday. But its not just about Jordan Spieth. Weve got to remember, this is a Company Moving mens and womens. And theyve got all son lee on the female side for shoes and clothing when it comes to golf, scott. The steph curry thing would take much more center stage. The focus on the nba, the focus on the fact they have tied the Chicago Bulls with 72 wins have a potential to possibly break that with one more win at the end of the season. A home victory sure would make that nice. And i think that puts under armour in front of people. Lets also not forget this. There is a 30 short on the stock. So if there is anything that plays against what this particular analyst is predicting right now in terms of some of the losses, if they actually are able to surprise the street in any way, shape or form, scott, that could dramatically push this stock up and all of a sudden you could see this thing with a five handle very rapidly because of some of the short covering. Even analyst himself mentions that. Im quoting from the note. Short interest remains high at almost 12 of the float. We think that scenario, if it plays out, could cause a short, if the numbers come in better than expected. If it plays out, cause a short squeeze and the stock to move materially higher. Whats more of the risk that theres a short squeeze and a stock goes up, or is the risk to the down side that under armour misses for the first time in, you know, a blue moon . Well, weve talked about that for a long time too, scott, about the fact they cant afford to miss. How many times have we talked about you look at a premium valuation. Youre always going to be okay with that premium valuation, until somebody misses. And once that miss step comes, forget about it. You can look to the down side further. The best way i would. Want to approach this, closer and closer to the earnings date of april 21st. I want some kind of options trade in there, scott, where im doing a spread, where i am controlling my risk, i know exactly what ive got on the table. And gives me an opportunity. Because if they do surprise with that short interest, we will see this move dramatically to the up side. The analyst isnt, you know, saying this quarter is going to be a terrible quarter. No, they say this quarter looks good. Hes talking about the future, so really on the fence on this quarter. He wants to win both ways. Because if the guidance is bad, even though this quarter could be good, stock comes in. So i still think you want to wait until after the quarter, because its not about this quarter, its about what they say. 21 buys, one sell. Weve had this conversation season about this particular segment of the retail business. Ath leisure, as everybody calls it, is the place to be. Is the runway getting shorter . Are trends about to it change . Slow down in q4, no doubt about it. Slowed down from the majority of 2015, for sure. Companyspecific, i think under armour, relative to the rest of the space, is doing okay with it. But it clearly has had a problem here, as we the other thing is that the other thing is that trends like ath leisure, which i hate saying that word out loud. Theyre not linear for every company that participates. So a company like nike goes through a quarter or two where inventories are too high or pull back marketing spend because theyre waiting for something else. It doesnt mean the trend is over. It just means that individual company pulled back on the brakes a little bit for three months. If youre a serious investor, that doesnt freak you out. Bigger picture, probably, people are wearing sneakers further into their life as they get older. Wearing them to work. Women are wearing workout clothes for the rest of their day. Its not something that turns on a dime. So if you believe in under armour and you believe in the kids affinity for it continuing, you look for a miss. Thats when you want to buy. Youre not looking to buy after they blow their numbers out like they did in january. Pete, well see you in a few minutes. Pete at the mercy of air Traffic Control this morning, making his way here. Heres whats coming up on the halftime report. Still ahead. This is rapidly becoming a house divided. You should all be ashamed of yourselves. The fight over pulte group heats up. Plus, googling for profits. You can google t. Its worth a google. Alphabet upgraded to buy. Why that stock could be headed nearly 30 higher. And financials in a funk. As earnings season kicks off, is the bad news banked into the banks at this point . Well debate it. Its all coming up on the halftime report. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Is our partnership with habitat for humanity. Pg e is committed to clean energy and part of that commitment our mission is to build homes, community and hope. Our homeowners are lowincome families, so the ability for them to have Lower Energy Cost is wonderful. We have been able to provide about 600 families with solar on their homes. Thats over nine and a half Million Dollars of investment by pg e, and that allows us to provide clean energy for everyone here. Its been a great partnership. Together, were building a better california. Welcome back to the halftime report. The stock market, we are in a green session so far for the major indices. The dow up 76 points, the s p by about 6 and the nasdaq up by a third of a percent as well. If you look overall at the markets, off our best levels today. The dow up by 155 points at one point. Also checking on crude. Oil is on the rise today, an early rally lifted wti crude over 40 bucks a barrel. Wti crude touched its highest level today since march 23, overall. One big energy mover today, chesapeake energy, up by double digits, percentagewise. The nat gas producer said its Borrowing Limit reaffirmed at 4 billion at a time when most oil and Gas Producers are bracing for steeper cuts to their credit line. So, again, some interesting stories developing on both the macro, scott, and companyspecific front. Back over to you guys. No doubt. Thanks so much. Steve, what do you make of the market today . You get out of the gates fast and then come back. I think the market is fine. I think its moving up into you know, into the quarter. Youve got alcoalcoa. But people want to get on the right side. Im assuming the guess is expectation has been taken down so low, why not go in. Plus the tenyear trading below 180. Where else do you put capital . Its driving you to equities. I c i think the market continues to grind higher during earnings, volatile. Volatilities are there. But man, youve got to buy some protection. Have the risks, joe, decided that had existed, you know, not seven, eight weeks ago . Is. Not necessarily. But i do think the value dollar has come down . Dollar coming down. Oil moving up. Dollar coming down has helped significantly. I think whats happening here in the nearterm, though, is really about folks being very skeptical of the rally and the s p. A lot of people stepping in, like this morning, trying to short it. Which i think is the wrong move. I think the runway still is long. I still think for the month of april there is further up side. Earnings week. You know that, jpmorgan kicking off a big week of Bank Earnings wednesday with already low expectations, how bad could earnings for that sector be . Lets bring in christine short, Senior Vice President at stimmize. Good to see you as always. Nice to be here. Expectations obviously are incredibly low. Do you think its going to be as bad as people think, or not . I dont think its ever as bad as we think at the beginning of the season. As we know, wall street historically is off by about 3 Percentage Points when it comes to predicting growth for the s p 500. Yeah, were entering the quarter with negative 2. 5 growth, is the expectation right now. Very rarely, though, do you go through the quarter and actually see that number come down, as companies report. So it always ends up popping up a bit. Yeah, thats the bad news heading into the quarter. The good news and its very early, only 20 companies have reported thus far. 80 of those beat expectations and thats our expectations at estimatize. 80 on wall streets expectations. What is the mix of companies that report early on, a lot consumerfocused and consumer discreti discretionarie discretionaries. The banks, talking about the banks, a note today from fred cannon at kbw who said jpmorgan is going to disappoint. All of the big banks out this week were, you know, looking for sort of dismal results from. Each expecting a decline on the top and bottom line with the exception of wells fargoo, expecting a modest increase in sales of 2 . I think you should expect to see all the same commentary you saw in 2015. Weaker ficc trading, Investment Banking revenues. A challenging Interest Rate environment. Those all remain concerns. But i think investors are really going to want to be focused on comments like what jamie dimon made, Energy Weakness is going to be worse than initially thought. Were expecting a 600 million hit in the first half of the year. Lets see what other banks say about that this week. Since those comments were made, we have seen estimates come down. Bank of america another concern. Loans to energy. And space. Well not much of a reason to jump in. Financials, no reason to jump in. They have been cheap for a long time. Im still there in citi. Frankly, i sold part in the 50s. These companies are worse than utilities. Because theres no theres no commission. They can go to and say, hey, we need to increase our level of return. S