Terranova, jim lebenthal, josh brown and Pete Najarian. How worried should people be this week for a sector thats made a nice comeback . Not worried at all. The sector is rallying into this dnc and a big difference between word and deed. Very easy to put things in a platform, harder to actually enact them. And history suggests that these things typically dont play out based on the worst case scenario. Most important thing here, scott, technically speaking, look at xpi, equal weight biotech index. A much better measure of the broad sector than the ibb. That is on the verge of a breakout. 60 resistance and a pattern of higher lows. Exactly what you want to see. Sellers are less aggressive. Buyers more aggressive, and once this thing gets going, typically set up for a nice run for a little time. I would not be worried about headlines this week. Theyre just headlines. Theyre not actual policies. Pete, word alone, though, to sort of refute what josh is saying, has already crushed the space . Doesnt refute what im saying. Thats making my point. No, no. Its not. We had the reaction prior. Talking about now rallying into the news. You dont think if the platform gets loud this week yet again. No. They killed these stocks already. The market how the market works. It doesnt react. The market pictures what could happen and spends time adjusting itself. When you get to the actual veept, its a naan event. How markets work. They dont necessarily need to have a linear relationship with the news of the day. Weve crushed stocks two years based on what will happen in the next two days. When it doesnt happen, a lesser version happens, you get a green light. Not a red light. The red light already happened. To joshs point, youll get the lesser. He means by that, look how bad they were knocked down, scott. A little rise ever since and a lot of the smartest guys on the street covering the space covered it very well talking about in cases michael ye one of these, some cases these companies are beaten down to the point, their briced as if there is no pipeline left in their names. Because of that, i think there has been opportunity there in some of these names in biotech as well as the big pharma, but the threat was out there and now that the threats been out there, to joshs point, i dont disagree. These names were absolutely bashed to the down side. So a Clinton Administration, josh is going to be all hunkydory for the Drug Companies . The way that markets work is, they envision listen to me. You dont need to school me on how it works. Not schooling you. Making point, theres a shooting incident somewhere. Theres a huge hubbub, ban guns. What happens . Gun sales explode, and the stocks go wild. Markets have already priced these biotechs for really, really terrible news flow, and now you see people coming into these names as the event is about to happen, because they know the adjustment has already been taken place for years. Okay. Since the end of june, or there abouts, im talking about the sector comeback. The ibb up 12 . Xlv up xbi up 13 and biogen up 25 and many other names followed suit. Are they about to get smacked down to earth or to joshs point, the damage is already done . The damage is already done. Josh is right. To answer the question you asked a second ago. Buyers, stocks then . All three of you . Absolutely. To answer the question you just asked a second ago is everything hunkydory in a Clinton Administration . This is rhetoric. You can tell it when theres points in there, things like these companies are spending too much money on advertising versus r d. The lft thing the government needs whether democratic or republican for the federal government to dictate how much a company or industry should spend on advertising or r d. The sort of thing would never get through congress. Would never be accepted by the american people. In a republican congress. Okay. Joe . Glad we understand how the markets work, first of all. Second of all, important to understand is the change in the style of the sector itself. This was a sector in 2015 where if you were a Portfolio Manager you chased it as growth. Its almost become value. The biggest value name to me in the space reports tonight after the close. That being gilead, josh is 100 correct. A series of higher lows going back to the middle of next year. How markets work. Markets work how they want to work. Confusing to most people. So gilead could be a very significant contributor. How do markets work . Moving. Platforms dont move stocks. The other part of that. The importance of gilead i dont think can be underestimated going into tonights report. Trading 87. Price target on the stock, pete, you follow it, well above 115, 120. Gilead comes out, and helpsy numbers look good. Entire sector off to the races. If gilead does not do that tonight, then the sector, modestly rebound since june may go a little sideways. Or be careful are and not give a knockout quarter because they see the government is on top of it and know Hillary Clinton is one quick one. Do this first. Bring in two more voices and continue the conversation with les frontlighter, east squared Asset Management right here on the set with us as well. Its good to have you here. Thanks for coming in. Thank you. You take issue with anything you heard or agree with everything . Ive learned how markets work. My job is done. The the answer is i agree that we are historically, biotechs been bad or down and by Democratic Administrations only to run a lot afterwards. Saw it clinton first, obama. Going to be a very good time. I would just say one caution. Theres a connection between Interest Rates. So we dont think Interest Rates will ever go up. Should they go up, bio tech is very sensitive. You dont think that that language, the profiteering of pharmaceutical companies is simply unacceptable as part of the Party Platform that will be on display this week in philadelphia, has the chance of taking the gains that have been enjoyed since the end of june out of the picture . I think that most people, other than some very, you know, nonnewsaware people, realize that a Democratic Administration will be status quo, and theyre going to look through it. I dont see i just dont see that scaring people as much as real policy real policy choices that will actually do what they say they want to do, and thats been absent. If they could tell us how they were going to do that, then there may be some more substantial concern. Bring in michael ye live in San Francisco with us. Michael, welcome to be program. Thank you. Love to get your opinion on where you think this stock, these stocks, could go, and how much risk is in there from this weeks events . Yeah. I think you guys hit on a couple, the major key points. Number one is, weve been talking about this in and democrats talking about it so long and the stocks reflect that. Already still down 25 off the highs. So look where were coming from. Number two is, i think we appreciate that, and still maintain control of congress. None can actually get done. Controlled by republicans. Third, when i go out talking to Institutional Investors long in the tooth. In other words, talking about this so long, talking about pricing, at this point i think people are willing, and the market is willing, to look past it and with the stocks where they are traded no point values we move higher. Earnings are important this week, too. You mentioned gilead, amgen and se celgene that will set the toenchts which do you like the best in the environment were in . Well, i think given what we just said, i think amgen and celgene are poised to move higher. Celgene, important one. Trades at 14 times below the market. I think that ones best poised to move if money flow starts to come forward into this space. Michael, youve bought this up, i totally agree about the whole idea the pipelines have not been priced in. Because of that, who has the best pipeline of some of the big four or five you cover now . Who has the most excitement right there . Yeah. So i think celgene, number one. I think biogen number two, with the alzheimers pipeline and third i think is vertex, a great move in the last month, put up good numbers this week a new Cystic Fibrosis pill, billion dollar drug reads out next year. Another big one poised to move. And amgen, trading in a channel, not going anywhere since essentially christmas 2014. Now a 13 forward pe. How is this not a screaming buy . What is keeping this thing at a below market pe . Yeah, well, you know, amgen has been sort of a tweener, trading sort of flat. I think the key is that as money comes sbook biotech, in sis a laggard in biotech. We can move higher. I think, again, good earnings this week would be the one that sets the tone. I think ive got more confidence on amgens numbers this year than any of the our four biopics. Confident in the guidance. A great point. Interest rates. Sensitivity to the sector. Explain that and your expectation Going Forward . The nonprofitable bio techs that they are capital use egg. Cost of capital goes up, they go down. Access to capital goes down, too. Not the big guys, like the celgenes but the small caps, making up a lot of the nasdaq index will go down. Just make the point that we say the heck with biotechs anyway and own some of the med devices like Boston Scientific and hmos like united. If you really wanted to be in biotech own the real estate, the reit that owns the property underneath the biotechs and dont have to worry about pipelining and get yield. Thanks for coming out. Thank you. Michael gye, thanks. Talk to you soon. Thank you. Marissa mayer want to stay at yahoo . Verizon, noncommittal. Up next, former interim ceo of yahoo ross levenson, his choice to weigh in and do it exclusively, new at noon 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. Hthis bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade it is official. Verizon buying yahoo for 4 billion. A onetime sill con valley heavyweight, one time during the height of the boom, capped 125 billion. For more on what the deal means for the company and its ceo Marissa Mayer, former ceo, ross levenson. Ross, welcome back. Thanks, scott. So Marissa Mayer said, a very proud day for us. Is that how you see it . Well, i think its an exciting day, if i were an employee at yahoo . You now get a purchaser that brings you incredible scale, deep, deep pockets to invest in this business, distribution on not just phones with fios tv and the like. A really, really tremendous operator in Tim Armstrong and marni walden and the team at verizon and aol who understands the business and is committed to it. So if i were an employee, id be excited that this is the, perhaps, the beginning of a revival. Not without pain over the next, you know, year, but certainly as good a strategic a buyer as there could have been. Interesting you say that. Rosenzweig, dan rosing zweig, former coo was on the Prior Program saying its a disappointing day for employees. Meld three different cultures. Who nows how it will shake out . Longterm employees of yahoo whichever are still there . Im okay disagreeing with dan. We dont always have the same view but hes a super, bright guy. Look, theres six different cultures at yahoo alone right now. So this is not anything new for anybody whos spent a month, a year, ten years at yahoo . And its true for any company. I think what yahoo has yearned for, at least my experience in dealing, from the inside and outside, is clear strategic direction, and, you know, hats off to tim for what hes done at aol. He took an asset that when i was at yahoo and he and i had conversations, was there something to do . At the time aol was a quarter of the size of yahoo and now, you know, 4. 5 years later, acquiring it. Hes done a remarkable job getting the company focused, getting the transaction to verizon through and now youve got a company in verizon thats really put stakes in the ground in and around the Digital Business and are committed to it. So congratulations to them, and, again, if i were an employee, id be excited, if i remained. Id be certainly, theres going to be a lot of consternation inside about what happens next, but i think, you know, this is not a company thats, you know, likely coming in to just slash and burn. This is a company that has publicly stated it wants to be a powerhouse, and certainly has the resources to do it. So in a digital ad market in the u. S. Thats, lets call it about 70 billion, and if, if google and facebook have half of it, and yahoo has 3. 5 of it, what does yahoo look like in three to five years . Whats the headline going to be as we turn the, the book open three years from now . Well, thats clearly will depend on the strategy, but if you just take a look at what tim focused on at aol, and what verizon has been doing in an around the content space and monetization space, youre probably looking at a Digital MediaTechnology Media company that embraces premium content, embraces Ad Technology and monetization and Marketing Solutions for advertisers, puts its arms around commerce, and thinks about how it can leverage its hundreds if not billionplus users globally to monetize through ecommerce. You know, and then you have the wherewithal and the opportunity in and around virtual reality, augmented reality, because of the premium experiences that these companies are embracing. I think you have, and you have a scale player thats an alternative to google and facebook that really has focused on premium content. So i know this sounds a little like a broken record, because ive been saying it a long time, but tim took that strategy, really invested in Ad Technology and now has massive distribution and capital with verizon. So i were an ad buyer, they love tim, what hes done since his days as google. Id say its an exciting time and why i disagree with dan and the employees are great at yahoo . They just need to be pointed in the right direction. So marissa says she wants to stay. Kara swisher of recode says thats not going to happen. What do you think her legacy will be . One of the spectacular stock return, since she first took that job . Or one of value destruction that some will say, if you look at the greater picture of some of the moves that didnt work, some of the opportunities that were missed, and the like. What should it be . Well, hard for me to say. I think youll look at somebody who came in with incredible enthusiasm, and, really, you know, at least from the outside, a very clear direction in her own mind what she wanted to make yahoo . And as i said last week with you guys, you know, clearly the numbers show that it didnt work. So you know, she took definitely got the company focused on mobile. Obviously put a lot of energy into search, and i think we could look at the asset today and say, even though the market was changing, the company probably eroded faster than than some of its competitors. Aol being a prime case where tim, you know, over invested in a positive way in monetization, and buying huffpo and it seems to have paid off. And marimarissa, not just on he this is a company that struggled to find a direction for ten years, not just four years, but certainly over the last four years the erosion has been, you know, troubling, and thats probably why im, you know, clearly i was in the mix. Wanted to see the right outcome here, and i think this is probably the most strategic and right outcome it could have had. So, look, the pundits and analysts will write her legacy is, but she worked really, really hard to try to get yahoo in the direction that she saw fit. The numbers dont belie that it paid off, and its, i think, as a shareholder, you know, i think tough to sit here and say, gosh, four years later, the company, when you extract the real estate value and some of the ip value, this things selling at low 3s . Couldnt have believed that four years ago. Ross, appreciate you coming to the phone. Leave it there. Breaking news to run to. Always enjoy speaking to you. Ross levenson for us, former interim ceo of yahoo this other new at noon story, just breaking now, a big call hitting the street. Downgrading apple and its to a sell. 85, the price target. Colins on the phone with the call of the day. Scott, why this move . Look out at the back half of the year, we are not excited. The sixth grade upgreat cycle has been slower than the sixth and we think youll see a continued slowdown when the next iphone hits. A lot of people are going to be very surprised at this call if for no other reason than the 7 is what is generating the enthusiasm for the expectations moving forward . And thats right. You know, the concern is, that youre not going to get the growth that people are expecting. Particularly in the september and in the december quarter. So, you know, a year from now, when we get the, the next phone, the anniversary phone, that may be a slightly different situation, but youre looking at a Smartphone Market thats fully matured. Right . Thats growing, you know, less than 1 and looking at a Management Team that has not diversified revenues away. In five years the only product category theyve opened up is the watch. That hasnt had Material Impact on revenue. Squandered domestic cash buying back stock and we think that, look at the next 100 billion in value, thats to the down side. You think they should have taken some of that cash a