Strong week for the markets, and strong broadbased tech, and financials down the list, and it is big against a big backdrop of the oil hitting 50 this week, and the fed chair speaking in an hours time, and josh brown, i go to you first, new highs in the offing . We are not that far away . We are not that far away, and what is really, really great about the positioning that we are seeing here is that the advance of the climb line, and it is absolutely cooperating and breaking out in and of itself, and you have a lot of the small and the midcap issues getting the job done, and it is a marked contrast to last time we challenged the levels, and way different from what felt like the end off a bull market a year ago, so it is a Long Time Coming if we punch through, and one very clear positive is that it is a lot of stocks hanging out here, and not just, you know, the nifty nine or fang or Something Like that. And you know, serrat, you have apple back to 1,100, 100, that is a closely watched story, and it is is back at 100, and you are looking at tech, serrat, and it is old tech, and apple and the fangs and the chips and the cloud, and the significance of that is what . So you are seeing the cyclical move now, because you the confidence back with the consumer, and confidence back with the industrials, but sort term what you have to watch out for is that we have the fed out there, and brexit out there, and i think that the election, so we might test the new highs, but we come back, and then longer term at the end of the year, we are much better off, but i see another pullback come ing ing i cards. And you mentioned the fed, and now, steve liesman, janet yellen in little more than an hour, and you dont expect this to be groundbreaking, because next week, look out . Right, right. The store are i have that she is having a conversation with the harvard professor greg mankian, and she is not going to be giving the market the policy outlook that everybody is looking for, and maybe she is going to be watching it, and some risk she does it, but ultimately next week, adp, and the jobs and the personal income spending on tuesday, and big week for the data, and the jobs on friday, and what happens is that yellen will give a speech, actual speech to wind out what she is going to be saying on june 6th in phillie, ay, and the day of the guidance from janet yellen. Yes, but the market is ready even if the fed goes . Yes, it is priced in for a move in june or july, and we were speaking in the green room about it. And you dont have the microphone on, but paul richards, and medley advisers and new gig, and congrats, and what do you think . Well, is the market ready . No, i dont think so. You dont . No, the fed is prospectively ready, but the market is not. Where have they been, paul . Not paying attention . And i agree with you, steve, but every client we are trauk to, and we have been having client meetings in japan and europe and u. S. This week, and no one knows, and there a lot of the power of just sitting on the side right now, and if you are listening to the fed, they will go, and if the data is good, and then yellen in philadelphia, she will tell us. And isnt the market activity this week proven that the market is finally ready . Well, it is coming, but there is a lot of the cash sitting on the sidelines that could move, and lot of and remember, two weeks ago we would be sitting on this same agenda, and talking about the bears out there, and those bears have not covered yet. So i think that the market could get a genuine surprise by if they move, and the market rallies then you will see a genuine rally, and european stocks might be showing us the green light as well. And john, i have been looking at the issue of the movement into tech, and the movement into financi financials and the bears within the stock market, and those invested, but in the bond proxies and hiding out in the places like utilities and telecoms and other areas to catch the yield, but now it is a shift into the cyclical plays to portend a more optimistic economic environment ahead. Yes, the atlantic fed went up, and the new york fed up, and the global dax is up 10,000, and the Global Economy is heal iing and india is up 500 basis points, and rebar is up, and what yellen said, and the fed is prepaired to go, and again, in june or july. If they go in june, they will take a chance on the brexit. If they dont, and wait for july, they will have an extra free pass of brexit, and extra month of data here, and so sit thing at the highs, and churning into the seventh inning stretch, and ready to take off. And 40 points away from the alltime intraday high on the s p 500. 40 points. Well, i dont believe that the market has what it takes to push through it, scott. The two things hold iing it bac are that you dont have the growth in profits to propel it forward and as we have been talking about, the fed is out there. And the chances of the june hike have gone about from 12 two weeks ago to 40 , and that is is a huge jump, i have frankly never seen this group of governors and feds telegraphing the possibility of a june hike, and the probability, and the certainty of it. And that is a good thing, assuming they follow through . That the market has not sold off . And that it follows the language. And it better, or otherwise the credibility of the fed is shot. The fact that the markets have not sold off in response to this is is a positive sign, and frankly, scott, it is giving the fed the cover they need to do the rate hike, because remember, for most of the last year they have been worried about the market conditions, and they have said financial conditions and instability, but it is really market conditions. It is not any more benign than this. And more on that, paul. What gets the market to the point to accept it, and you think that it can deal with it . Well, basically, based on the people we talk to, they need the data. If they have a good round of data, 160 is good enough for payrolls of the fed, and maybe not enough for the market, and if you have 180 or 190 in a week followed by yellen, it is going to be great, and not upsetting things, but i would like for yellens speech in october to pave the way in december, and we handled it well. And if you get 160 or thereabouts on the jobs number next week, you will discuss if the market does not like that number or the market is dictating to the fed whether you can move or not. And i can hear and see thatp happening. Well, last week, i did a story of to difference fof markets and the feds and expectations over the jobs, and the market wants the 200,000 number, and that is speaking to the health and growth, but not the fed. The feds numbers are closer to 100,000, and where they are and job growth commensurate with the growth force it is near 100,000, and so 60 is enough, so i am telling the market to get more attuned with the fed if you want to know what they are going to do, and if you look at the idea of the market digesting the rate hike. They went in december and paused to what is going to amount to at least six months, and then forward ahead, but when is the next time to move . They wont go before the election, and maybe december, and so when i think of the path of things, it is a quarter point every six months right now, and ki live with that and that is the reason that it allows me to value the stocks in a way that does not overly emphasize the rate. And housing looked good . 16 . Retail looked good this week, and maybe some of the apparel folks in the last couple of weeks are hurting, but overall, retail is pretty good. And the xrt is up 1 today, and maybe up 1 yesterday, and those stocks have bottomed. One of the things to point out is the modern history of this big bad wolf that we know when the date is, the market gets used to it, and by the time we get there, we are rallying into it. So if it is a fed hike, so be it, and we did the same thing with the taper, and the same thing with the end of qe. It is just this repetitive pattern, and it seems to be playing out again, and i dont think that people should fall out of the chairs as a result of it. The other thing is that we have a possibility of an earnings acceleration in the second half, and keep in mind what was going on in the second half of the 2015, the u. S. Dollar was absolutely recking sector after sector, and forcing the companies to come out to are rip down the expectations, and we are lapping that period. And the commentary is better and so are the numbers. And another part to add to that is energy which is back to 50, and the confidence coming back to the Industrial Companies is much better than you saw at two quarters ago or three quarters ago and a little bit more visibility, and if the oil is going to be coming back down a little bit, you add it to the increased demand from the consumer, and inflation from the wage, and the consumer is, there and and you could see some acceleration from the wage, but you could comp it, but is it sustainable . Well, the investment has been lame, and part of the reason on the back is because of what has happened with the oil. And some thinking that the worse. Of it is over, in terms of the drag of the Overall Economic growth both in the oil sector, and business investment. And trade. And i thought that what cramer had to say this morning was interesting, too, and worth reminding ourselves of as we are seeing the financials pick up. Oil back to 50 is taking some of the pressure off of the loans from the banks that everybody is worried about a month or so ago at 6 to 8 weeks. Well, that is a tiny piece. We way of discounted it. Huge concern. And what else is there. And the high stress of the yield sector. And yes, it was extrapolation, because it is not the loans, but the percentage of the writeoff that you take on the bankbooks, and that is what is scaring people. And last thought are from you, paul. Two to three hikes this year, and is that even realistic or over the e skis on that talk . Well, i think that steve is right on the money. Start with one, and then december prospectively comes into play, but we have a lot of stuff between now and then, an including a president ial election, and globally people are worried about, but lets get this one out of the way, and then talk about that. And what we should talk about because it is in your wheel house, the dollar. And the currency moves and brexit to consider, and the dollar is a very important part of the entire equation. And let me tell you about the dolla dollar,b the euro this week has ranged 108 to 101. 50, and the center is 105, and so stop thinking of the dollar being volatile, because it is consolida consolidacon sosol day consolidative. And it is important. And steve, dont bite the hand that feeds you. It is not us, and we take it from the market, and the market gets that concern and starts to talk about it, and we reflect, that and now they are talking about the same things out there, and brexit was capital letters last week, and lower case this week. And with the dollar, the volatility, and if you take it out, it is lot easier for the companies to manage the currency r risk, and right now, the volatile si gone from the currency, and that is a good thing. Yes, thank you so much. Guys, good stuff as well. And here is what is coming up on the Halftime Report. Still ahead, retail maybe in a funk, but one retail stock up nearly 30 this year that just keeps delivering the goods. We will explain in the trader blitz. Plus, going beyond the dollar menu. How fast food is getting the consumers to spend more by offering meals by the bundle. And planes, trains and automobiles. A record 231 million americans will be flying this summer. Phil lebeau is live at ohare where the travel season is heating up. It is all coming up on the Halftime Report. 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How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. We are back. Summer travel season ready to take off. What can travelers expect as they are heading to the airport . Phil lebeau is join us from ohare in chicago. And phil, we have been thinking that we should expect big lines at the security, and is that how you see it today . Well, we will see that this afternoon, and during the rush hour in the afternoon, but we definitely saw it this morning, but certainly nothing like we saw a couple of weeks ago where people were waiting 1 1 2 hours or 2 hours or longer to get through security. We have video from earlier in the morning, and we saw essentially, people were waiting 30, 35 minutes and not at the precheck station, because the e precheck line for tsa it was ten minutes at most. The airlines and the airports are reporting shorter security lines, which helps the trav travelers, because they know how bad it is going to be, and they are getting to the airports earlier, and not as stressed, and the airlines are adding the contract workers to assist the tsa outside of the security stations. Not doing the security, boutside of the security stations, and get ready for the busy summer, guys, because if this is what we are going to be seeing through labor day, and 231 Million People flying over the next three months, and record passenger levels driven by lowerer fares and the economy is driving the traffic, and yet when you look at the airline index, and the shares of the different airlines, they are not doing much, and why . Because of the lower fares, and the pas ssenger revenue is goin to be down 6 to 7 for the major carriers, and that is why the stocks are not get anything love right now despite that we are seeing the record passenger levels here in the u. S. But the bottom line is this, scott, behind me, maybe a tenminute wait for people at most. And phil, you took the words out of my mouth, and going through all of the thing, and i was going to say to myself, and yet, the stocks stink. Yeah, they do. They do right now and phil, have a good weekend. Phil lebeau. And serat, they stink. Yes. Why . Because delta is trading six times earnings, and great cash flow, and raised the dividend. If you look at what they said and all of the airlines have said, we are cutting the capacity, and cutting the capacity more, and the demand is there, and we are an oligopoly situation and they have all committed to the declining capacity, and raising the prices for next year, and every airline said that it is is going to be increasing, the revenue per seat mile going up, and you look at that, and say, how cheap can the airlines get . Well, year to date, the stocks are down doubledigit, and in some cases more than 20 . Looking at the value there, and the huge cash flow, and the Balance Sheets are strong, and the demand is strong, and no capacity coming on, and no new airlines are coming on, and so i think that as a Value Investor anybody on the other side . I am on the other side of this, and i usually agree with sarat, and the problem is energy, scott. You have Energy Prices that is in the industry that is burned by hedging. They u stau big collap they s collapse of the oil price, and they didnt take advantage of it. Now, fuel is going up, and they did not hedge, so they will be in trouble again. And they were facing trouble from the government to have the price prices where they were, and the second one, they made money when oil was 80, so they are ready for it as they cut the capacity, but this is where the earnings have to show as opposed to the stocks actually coming through beforehand. And scott, you dont like the charts . No, they are brokenment cant own them. And everything that you are saying may turn tout be true, but the market is not recognizing it yet. And you could be right on the fundamental change that may or may not take place in the next year, but you could end up owning it, and another 20 down. None of them are buyable, and jetblue is the worst, and delta is probably the best, but the best comparably speaking is na good trade. And now, in may, the stocks are picking up, and yet, american is down 14. 5 , and delta down 1 , and jetblue down yes, these are cyclical stock s. And if we think that things are improving which we believe they will be, you will get more demand from the business side, and the consumer side which is strong. And if they are cyclical though, a six multiple is a n negative, because it means that the street is saying that the earnings have peaked for the cyc cycle. Right, if oil is at 50 and you get the demand back from the business traveler, from the Oil Companies that were shutoff, and you will see the higher prices for the business traveler. Which is what they want. Issarat, a ton of the compans have a lot of debt. Yes, and traditionally they do, but delta is not. And so you look at the cyclicals, and the transports are one key areas of the market that is not doing anything. When oil doubles, the transport struggles, and the airlines struggle. And sure, if the economy is pickinup, and you believe that, and the transports should start to performing. Yes. And is it a tell that they are not . No, i dont think so, because the transports a lot of things that go into it, and the rail car loadings is down, and other stuff is down, which is obviously are going to pick up if the atlanta gdp is going to 3 like it is going, and it has the industrials and the cyclicals should start to tick up. And it is not so black and white. The e kconomy could pick up, an the Oil Shipments fall off because they have peaked for the cycle and you dont see the benefit of people shipping auto thes and the same for coal, the economy is doing better, but is nsx doing better shipping coal from kentucky to the midwest . It is not so black and white to formulate a trade based on one step. And now, big lots are soaring, and a lot more coming up. Plus our resident value hunters sarat and jim will unveil their top prospects coming up. And coming up, the heat sectors, all up and the s p 500 up b