To have every reason to be down again today in a followthrough and fought through. What do you make of it . We are not buying the same stocks. People have to understand. Part of the market on fire, no good. Look at a stop like bank of america. Look at wells fargo. There havent been bids underneath these stocks. Stocks that the liesman interview with stan fischer is calling for multiple rate hikes. Now, maybe they walk them back, but we get a strong employment number, these stocks continue to fly. Something to live more. Best performing sector today. On fire. This the buy signal in the group . Saying it the last six months, been dead wrong. You have to keep buying these. Buy the ones jim said, the regional banks. The signal that will happen, the economy is okay. If the economys okay, banks will do fine. Trading below book. Trading at a market discount. No money is in the sector, strong balance sheet, dividends, everything people were buying in staples and telecom. And also the ability to increase share buy backs. Also could potentially see dividend growth. Now, the market right now, which has been a buyback market the last couple of year, buy backs plunged this quarter. Look at sector, say to yourself, cyclicals outperforming. Of course im looking at financials. An environment no one is buying back shares financials can. And back to the very top. Is this some kind of a statement kind of day . Yes yes it is. I was watching, candidly friday off, but glued to this and my tomato plants. Ones growing faster than the other. Look at this dusted off the 200506 playbook and remembered selby oh tech, sell the drug stocks, that you buy industrials. By the way, the dollar. How about that reversal dollar goes high around still buying stocks that are international. Incredible. Materials, industrials, financials. These stocks, the groups now to focus on . Absolutely. And weve been talking about materials for a while. I know jim has. Right. And quick one for you, jim. Did you think summer is right, larry summers, when he says eliminate the dot plots . One of the things that yes. I never liked them. Judge, it implies these multiple rate hikes, and then it doesnt happen. Its worse than when the fed governors go ot and just kind of talk about hawkish tone. I dont know why they dont reinvent why investing . Taking money in buying . I mean, there are theres a time when we should go back to common sense. Let the bonds rollover. Watch the dollar not go too high, but i am seeing look, i like normalcy. The dots is from that period of, like, well, listen. Who knows how were going to get remember come on say, if the martian came down we should be at 4 percent brs. No one will let us to do. When you look at the rest of the world, how can you not want to buy our notes, our bills . Holy cow. Giving you money to run do i say, listen, i only want to you lose a certain amount . Long as its not too big. Right. Justless me this. Tell me lose a lot more than you . I dont want to get paid in that scenario. Maybe at the point where the market was leading the fed. Right . The market had been right, telling the fed what to do. You wonder now if maybe that starts to shift a little bit where the fed tries to get back the upper hand . Wonder what the investing environment looks like in that scenario. The fed starts to do what it says and the market has no say. The only caution given the flipflop fed, data doesnt go their way, something happens overseas, come back and say were going to wait again. The only caution i have. Data, stocks are leading the fed and the fed needs to catch up. Yep. Housing, very strong. Retailers that rally, fuller price, not promotion retailers. I look what consumer spends. What dovetails to have the stock go down. Did not deliver in the quarter. Autos very internationally. Normally say they should work. But i see a robust economy with good job growth and under that scenario we have have higher rates and still go higher. Were not falling out of bed. No, but i think it changes the strategy. You have to focus on the u. S. Dollar. Whats the impact . If rates move higher the cost of issues debt obviously increases. Right . Cost of equity is real cheap. Make sure youre staying away from companies that high debt level and really not getting the profit margin expansion. Watch out. Profit margins did not expand in the last quarter. Being selective in stocks Pay Attention to that. Takes you back to financials. You do a quarter point, too, not talking about anything that disrupts everything. Sure, people are going to change their outlook to joes point, and that will be part of the equation, but what i see playing out in europe, jim, is, i see paris, for instance. Tourists. Its not happening. Right. I mean, there is a lot going on in europe right now because of some of the violence in germany and france, that people arent going. Theres going to be a lot more stimulus coming out of mr. Draghi, because he has to, and in other words, were going to move a quarter point, and it will be ten seconds before they talk about, when do we walk that back . Because i i dont think its going to stay. I dont think were going to add one, this past december and then one again, judge. I think by the time were early into 2017, say that all already be talking about walking that back, because of whats happening overseas. I take the other side of that. Negative Interest Rate policy has not worked. Agreed. I think the governments in the world are figuring that out, saying, wait a second. U. S. Goes up. Were negative here. People are not saving. Gold goes up. Everything is going the other way. That could be Something Interesting which would then come into fisks polifiscal pol. Governments say, things improving in the country. We need ports, bridges, roads. Wheres the money . Spend it. Get employment back where i is and that could be sel selfsupporting. And conference calls, on the move. Eaton hasnt moved because international is bad. Ingersollrand, honeywell, nice move here. General electric finally another leg up. Boeing may be harder. Im a believer in caterpillar taking costs out. Deere . Do you like deere . I think that deere faked out more people, because deere makes more money that was has laye hilarious. That conference call, doing badly, doing badly. That call was amazing. Doing fabulously. Talking micron, texas instruments. Havent talked about tech. Tech is something, look at xlk and micron technology, all we had, paper after paper after paper. Look at names. Suppliers going to all of these Tech Companies and chip names, absolutely on fire. Yes and a yield, jimmy, and great balance sheets. Yes and takeovers. Where you want to be. In your portfolio. Theyre vikinglike. Why you own sicko, microsoft. Yes, microsocht, sales force ahead of dream force. Look at this jimmys in a all over the place. Has anyone, am i the only one on that conference where they and yes attack, attack. And if you want to be yes. If you want to be in financials go with the beta names look at bank of america, look at citi, those names. Baeta names sky faster. Holy cow were going to make the playoffs playoffs . The d. I broke the huz huddle. They let me in. Its not a stock symbol. Means, take no prisoners. And on the deal for a while. Got it back for you. Throw it this side of the field. Tech. Yes. Tech. Been ripping t. H. Stay with it. Consolidation, higher margins. Six months ago, again, nobody wanted to touch summy conductor. Qualcomm now up. Microchips consolidating these. To watch, staples. Sectors peak you see consolidation. Be careful, the idea of semiconductors is why i like them, different, because there are not too many other players coming to the field. Thing this whole thing full circle before we take a break. Talking about the markets what it should be. No breaks because it was a special, they told me. Better not be now have to break . What the heck are you talking about . The yield plays and dividend stocks. What happens to them now if the sectors that you say start to [ mumbling ] is that it . Not where you want to be. 3 does not protect you from a tenpoint down move. The accept ysemiconductors. Cisco, yielding three. Insane microsoft. Looks good. Cash flows. And growth. Do you want southern with that possible risk of nuclear. Exactly right. Do you want to go into the Big Oil Companies that the move they had . Have to talk about that. What a move. Mentioned oil ten minutes into the show. How do you like that . We should talk about simmerex. Havent talked about apple. Invites went out. Follow cnbc. Invites went out. You follow it . Cnbc. Its good. Its worth following. No commercials. Right . Not yet. Going straight through. Especially with these two. Ready for that . We have a news alert, by the way, on apple. There you go. Josh lipton has it. Josh . Thats right, scott. The invitation a lot of investors waiting for, apple putting out a formal invitation for its fall event on september 7th. The convenient, the invitation saying, please, join us for an invitationonly event at the bill graham Civic Auditorium in sfr San Francisco. 10 00 a. M. Dual camera, updated home button. The question whether the iphone 7 can help revive growth in the iphone franchise. Analysts like Pieper Jean Munster says still about 275 million active phones has are on the iphone 6. At least two years old. The bet there for the bulls, theres enough people selling older models upgrade even if we get in the fall are incremental changes. The event on september 7th here in San Francisco for apple. Back to you. Josh lipton, thank you. Time to take a break. Not at the muss coney center. At graham. You and i been there three, four times for events always at the muss coney center. Does this event have the same gusto assess in the past if we know its longer and getting so . The hp call, the flash was driven, really, by cell phone. Im not a chartist but play one on tv. This stock is the worst in the book and i like apple as a stock. As a company. Holy cow. The rollover here. Got to break out to 110. Got to do it now. I mean, like, now. This afternoon. Why is it the worst in the book . Because people just say, in the end its going to be a blah 7. They havent beefed up the service, the Service Stream could be 28 billion. No ones willing to put a malt pull on it. The worst buy in the world. Look, i hate this. Terrible. Its almost like theyre afraid of getting shut off by the company. And tony bullish on this. Right . 130 target, Something Like that, when on here. There are a few bulls out there. He did say that the best times are in the past. He many the one that said that. In the 100 calls against the 110s in the short term, september time frame. Really . Yep. And 105s versus the 115s out in january. Because im a believer. But think about how much that is to the upside . Thats not a lot. Even the 115 is 8 from where the stocks trading now, but if i get either of those moves, judge, either in september time frame or, jim, all the way out into january, ill triple my money on those trades. Thats great. You can sleep with those, too. Because i dont see a lot of down side. Ive slept with them. Not bad. I couldnt kick those out of bed, to use the analogy. The Perfect Place to take a break and what well do. Before we do that, speaking of markets, investing legend Lee Cooperman will be with us on wednesday. Exclusively here for the entire hour. Dwha a great time to have lee with us, too, talk about markets, the fed, politics. A whole lot more. Speaking of there is a lot more ahead on the Halftime Report. Announcer mylan, under fire for the high price of the epipen as a new solution. Make its own generic. Will that cure the companys troubles . Whats it mean for the generic drugmakers . Plus a street fight over netflix. Two big wall street firms on opposite sides of the trade. Which should you believe . Also hitting microsoft, alphabet and sales force. The Halftime Report with scott wapner is coming back in two minutes. Announcer Halftime Report is sponsored by 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. Using 60,000 points from my chase ink card i bought all the framework. Wire. And plants needed to give my shop. A face. No one will forget. See what the power of points can do for your business. Learn more at chase. Com ink all right. Welcome back to the Halftime Report. New at noon, herbalife releasing a new series of videos taking aim at short seller bill ackman. Theyve just posted this along with a news release. They say its the first in a new series of videos. They say it shows how, in their words, bill ackmans hubris drives, making unsound decisions costing his investors hundreds of millions of dollars. The company said, i quote, for close to four years big ackman launch add wellfunded aggressive market manipulation campaign filled with false statements to support his reckless 1 billion bet against herballife. Jim, get your take on this whole thing. Really, this amazing news on friday. Yeah. I was thinking of it the whole time. It started with akman on cnbc and then ended with icahn buying more than 2 million more shares. One of the things that could be happening is jefferies, rumored, aggressive firm. Mean it in a positive way. Make a lot of calls. Love to cover that. The handler is terrific. I thought this is possible. You could show, could show a bid to carl. Say a buyer, multiple sevenfigure buyer and mulls it over. Word gets back and ackman did something youre not supposed to do. Talk about the actual buying and selling of stocks and naming names. The protocol is the not to do that. Was this something pitching him saying, blow some out . Remember, theres five Board Members. To blow it out, say perhaps it was the obituary and herbalife didnt do it. Thats why some say manipulation. Ever see anything like this . A story that wont go away and seems to have a new twist just were you you think its going to possibly wrap up. Ive never seen anything where the company itself and the stock and earnings per share means less. No one is saying, listen, at 5 per share, i pay 12 times earnings. No one seems to care about the earnings on either side. Ackman says, no earnings. Betting on zero. New firms betting on 100. Herbalife, providing supply in the 80s but have a lot of debt. A bank piece of debt that is, that cant let them do anything, but why is this a Public Company . Why . I mean, geez. You got to believe this should be a private company. Right. Obsession. A total obsession. I dont understand. Why didnt ackman call up carl and say im going to talk about this. Why didnt he do that . We asked on the show, dont you believe youre spending too much meants caste on all this . Sorry. Dont agree with his answer. There is as a process, a trader or investor, you spend a tremendous amount of time, energy, mental capital. End the day, who needs it . The stock price is in the same place it was a year and a half ago. Isnt it . Basically in the same place. We dont look, theyre still doing that volume points thing. Johnson, still talking about, going to run these things dual, the way the ftc wants, the way they want and know how earnings are on march 17th. March, period. What bothered me, if icahn was indeed the seller does it mean a thing the pe guys, a couple seats, blow out and bought the stock and blow the poor, devastating for herbalife. Devastating if he was the seller. Drive the stock lower. The ultimate confidence voenchts vote. 40s. Icahn looked at it with Board Members decided no earnings power. It isnt like this team has no fundamental analysis. They do great fundamental analysis. Interesting as well, the timing of the horse thing. People questioned whether he had, hes an insider. Right . Five board seats sddoes he haveo alert the company he would sell . No, he didnt. Look at the rule. It states that because the average weekly volume in herbalife shares had spiked to such a high level after the settlement with the ftc hit, that it opened a window for icahn to use, if he wanted to. Right. To sell into that, at a time where otherwise, because of being an insider he wouldnt have been able to do. Somewhat moot now. A, he didnt sell. B, he bought more. Right. Sometimes you think totally nefarious. I mean, this would be, i dont think this happened. He lets go, maybe im a seller. Then ackman immediately goes on tv and blachts it down. Comes in with that buy at the end of the day. Truly luciferlike, huh . Can you imagine if he thought about it like that . Look, hey carl likes poker. Yeah he likes chess. He bluffs sell and then came in, and full house wouldnt that be something . Good at both, by the way. And you have covered the story better than anybody. Got to hand it to you. Just wont go away. I mean, a battle of the billionaires is a great story. All right. Yeah. Yes it will. By the way, lets switch. Talk about netflix a moment. Carl icahn in that too. Made a great deal of money there. Down 14 year to date today and analysts initiating coverage says sell the stock. Whats that music in my ears . Does that mean something . Got to go to break again. Pay the bills. I dont have one of these things in my ear on mad money. Why are they playing music . I cant concentrate. Talk to analysts coming up. Mylan that story. Making a new generic version of its epipen drug to address the recent controversy. Will that turn the tide for the stock . Getting a little boost today. Halftime report, back in two. Whether its bringing cuttingedge wifi to 35,000 fans. Or keeping a Hotels Guests connected. Businesses count on communication, and communication counts on centurylink. Were back on the Halftime Report. Mylan responding to the epipen pricing firestorm announcing its launching a generic alternative at a 50 discount after being criticized for dramatically raising the price of the lifesaving drug. You first, jim. What do you make of this story . Do you even like mylan as stock . No, i dont Like Health Care to begin with, mylan specifically, i dont know how many other company any other drugs they may have praised the price. This is social media. If you social media and children. So i felt like this is issuing generic when you know theres no generic competition. Basically, please get me off the front page. Brian sullivan, the ceo expressed she was outraged as the people have to pa