Below expectations. Investors betting it will keep the fed on the sidelines a bit longer. Doc what do you do with this jobs report and day and what could or not happen in a few week sit is important what happens in a few weeks. Not important until today and what happens in a few weeks. Get more data, sales and that that could be something that could cause again, data point after data point after data parton rather than just a single point. You dont think theyre going in september . No. I think they should but signs theyre not going to go based on what youve seen in the past. A buyer of stocks . Buyers of stocks today. Well talk about them. Yeah a modest jobs report. Not the catalyst for something that drives the fed at all. If it would have been 200 it wouldnt have been either. What do you make of this year . The financials have been one of the trades to be on in hopes, thoughts, expectations, that rates were going to rise subpoena that trade derailed . It doesnt appear so. The reversal today tells you everything you need to know about what the buyers are really expecting, and the buyers, you know, this is this is an interesting day. The adults took over at some point midmorning. Say from 8 00 to 8 45, 8 50 it was children only. Oh, no, were off the table forever. Probably not, though. Number one, august has a tendency to miss. The most revised month of the calendar. Number two. And when the number comes in and needs revision upwards, that takes 25 years. Upward revisions 80 of the time. I dont think anybodys looking at this answer like its a final answer and doesnt derail anyones idea that the banks are cheap and at some point there will be higher rates. September, december, i really dont believe anyone really has a good handle on what raises the question how well the market is going to do in the months ahead. We spoke with Lee Cooperman the other day. Sat right on this set and it said the following about his expectations for stocks. Market is fairly but fully valued. Okay . Its i would not expect the market to do that much on the upside. We have to accept the reality that if Interest Rates belong where they are, thats a slowgrowth world, returns in equity lower than historically. I accept that fact. Do you agree with lee . I totally agree with lee. The question, where do you put your money . Bonds are not a good place to be. Stocks in this country still a place to be and a question of which ones . Whether devalue, wait for opportunities in stocks you know and like, like broeth stogrowth. But i think lee is exactly right. That means are you afraid to put money being very cautious. Jon . I consider it to be positive and bullish. A lot of things are going on that are positive. Indeed a rail. Right . Breaking out to new highs. A new central bank chief there. China numbers are getting better. Our numbers are good and getting better. I think atlanta fed is still above 3. 5 gdp. 3. 2, right . Came down. Came down from 3. 8. Positive signs. Going towards the election. Everybody is watching clinton and obviously trump, but the senates going to be the big determination how the market does, i think, going forward. I also think no matter who wins we have to ax cut. A huge stimulus. What the fed does, doesnt matter who touch. Stay 50 50. The big number to watch next week, the what if the fed goes in september . The fed moves, catch a lot of people offsides. Not now. Not after fischer. They have to telegraph it based on the numbers. Not only the jobs report and jon and josh pointing out just one number. Right. Had other numbers this week that hadnt so good. Ism survey yesterday, on a contractary mode. Thats not good. Factory orders today not good either. And to what youre saying about the atlanta fed report for looking forward. If you look backwards and gdp, the first two quarters have been terrible. So if the fed were to raise right now, it would surprise the market, and the thing weve been talking about, scott, a lot on this show about fed credibility, they have to telegraph it in the next two weeks and dont have the data to back it up. Literally were having this conversation. Sending right now saying lowers the probability for both september and a december rate hike. Absolutely right. Wall street is way offsides if its going to happen in a few weeks. The only other thing that could get both sides on the same side is if somehow the data now looking forward, john to your point. If the data looking forward starts to come in better than expected one cant ignore the trend over the last few weeks, punkish economic data. Steve liesman is here, watches the fed. Talks to the fed as much as anybody. What do they do with this number today . You know, i think it tends to lean them towards not hiking. The number was okay. It wasnt that weak a number relative to underlying terms. Wasnt what they were looking for. Right . I think sat with you said go maybe a couple times. Right . I think theyre okay with the number, scott. Yeah . Its within the margin of error. Go in september . Didnt stan fischer say that . He said its a possibility they go in september, if the data cooperates. What he said. I think this number is in line with hiking. Its on the edge. Asked me questioned, what that bottom number was. 150 was my bottom line number. Same as Lee Cooperman. Was that lees number . Yeah. We had a talk in the makeup room before i came on. I dont know if he took my number, i took his number, just saying we had a conversation. Its to come. A fed chair said the case for hiking rates has heightened pap possibility of one in september, maybe more than one this year. You use this term, scott, way off sides. Im investing for 10, 15, 20 years for my retirement. I, no matter what happens to the fed in september, if they raise a quarter point, my portfolio is not way offsides. If my portfolio is way offsides from a quarter point i need to find a new financial adviser. Sure ill get a couple messages here. A really screwed up portfolio to have, so sensitive to a quarter point rate hike in september that the entire tenyear horizon why arent bear stocks up today . Why are stocks up triple digits today. Because they like the idea the fed is not gawk to hike for now. Exactly. Let me ask you this question. This question why do we have protect ourselves so much from a market dip, because they go a quarter point in september versus december . Like what is is that going to change the world if we have a quarter point hike . I dont think anyone responsible in money thinks so. Yeah. If your portfolio fed funds futures have been unfazing lately. Havent moved at all. Wait. No. Since jackson hole, yes, but not since ism and showing you bae ining basica points and up five points for december. The market is kind of actually increased the odds that may be why the twoyear is kind of unshining in the day. Yield went down, came back up. I think josh said grownups took over . I think kind of said, hey people are coming out of the woodwork talking whether the fed will blackrock says december more likely. I go back if it happens saying september. My mom says says 55 chance in september. I think its 53 . But and so if they raise rates in a couple of weeks, how much does the stock market get hit . I think it gets hit not at all. Its attempt error. Studies show in the show its a positive, because theyre raising rates because the economy is strengthening. It would be positive for the market. And, judge, your point which is well taken, is, if were offsides, if the market is thinking the exact opposite of what happens on that second day when they make the announcement. Yeah. Then well see that 3 to 5 decline like that. We will see it. It will come back. But we will see that, and we always say, oh, it will come back, and this could have been and could be one of the times when it doesnt, depending what other things are out there. So, i mean, im not saying that that i think its going to go in september. I dont think theyre going to go until december and well see. Its less important. Do they go. Whats more important, what is the spread looking like . What happens with 2s and 10s is more important than a quarter basis point this month or in two months. I think whats more important is what happens to the economy. Do we have that 3 turnaround . The atlanta fed and cnbc wrapup looking for, 2. 8 , so you know. Another number, should have gone up today, actually, because trade was a little better than expected. If you told me i could trade a quarter point rate hike for 3 growth, ill take that trade any day, scott. So what sectors do you want to be in in an environment where the economy is clearly not firing on all cylinders as hatzius said and thinks the economy is good enough to possibly raise rates . How do you mold those together and do an Investment Strategy . Again, look at materials and industrials and Infrastructure Spending which is going to come no mat here is the president next year. So those are kind of a winwin either way. Right . The economy gets better. We have tax cuts. We have infrastructure. We put people to work. Those things are obviously very economically sensitive, as well as the banks. Jit somebody has to lend them the money and the banks are going to be the ones lending money to all of that construction and all of those Industries Getting or we continue to buy utilities and telecoms. No. Please. We know how that movies going to end and are waiting for act five of that drama. It doesnt end well, to be clear. One thing i differ on, the materials sector. I think if you get a fed that raises hike, puts pressure on the dollar, downward on commodity prices. I agree mostly. Cyclical, the value space, barb, a growth manager. Well be on the opposite side of this one, but value worked very well this year. When i talk about cyclicals im not just talking about the caterpillars or gms of the world. Old World Economy is a cyclical trade and works think of microsoft, Cisco Systems of the world. Lastly, before we let you go in my shoes, have a kid going into college on monday, you buy a highyield emerging market nearly bankrupt country and hope for the best. On the issue make this the last thing about the fed. But if the fed wanted to telegraph what it was going to do in september at jackson hole. Yeah. Didnt they fail . If people are still undecided on whats going to happen . A good question, scott. One of the things they did, try to get back optionality and flexibility. They didnt want and dont want the market to be offsides. I think what youre looking at, scott, a couple speeches next week. I believe rosengren and william both speaking. Listen to both of those guys carefully and waiting to get a finalist of speakers next week. Still have time to telegrapher and blackout period a week from tuesday and watch the data. Retail sales and cpi to help lead the way, on the cusp, the number could have gone either way. Didnt you say it would be better if we heard from yellen today rather than later . I dont want to treereact to every number. They want to set a basically where we were last week at this time . Remember, fischer said possibility in september, if data cooperates. Now we got have a debate. Is this cooperation or not . Quanti cooperative or not . Last thing. I want to move. Any time theyre close to a big level in the market they flowed tightening out there. When they dont, almost like an e. A credibility issue. One thing in the column of possibly raising rates. Oh, that one again. Steve, thanks. Heres what else is coming up on the Halftime Report announcer if youre long lulu, the trade isnt working out for you today. In fact, its been a tough month. One top retail analyst is telling investors to buy the dip. Shell make her case, next. Also ahead, the Hillary Clinton health care trade. A new proposal today designed to blunt drug price hikes. Is the sector about to be socialized . The Halftime Report with scott wapner is coming right back. Now that t makes it eier et here, the neigorod is rlly chging. Im ysoppi on the trn,nning alon i have to gowherever the w is rlly chging. Trains with vative help keep cities ming, neighbooo and businesses can proer i can bo 3 ogigs on a good end. Im sid foree. Takes ingty tmaket in the big. Expece brehtakingxurformanceee. Get great offefe at the xus golden opportu sales event. Geupo 5,000 ctomesh on sel2016 models. Ends seper 5th. Seyour lexus dealer. Molityveryportant toe. Thas whi u tre mobile. And it keeps minveststnts fumobi. Evenhenm on the mov sign up at etrade. Com and get up to x ndars. This is the new comfort food. And it starts with foster farms simply raised chicken. California grown with no antibiotics ever. Lets get comfortable with our food again. All right. Welcome back to the Halftime Report. Lululemon you look at it. Under big time pressure today down 9 after reporting weak quarterly guidance, but tells the advisory group, says to stick with the stock. Reiterates outperform today. Says buy on the weakness. Dana is live with us for our call of the day. Welcome back. Thank you for having me, scott. So the stocks getting hammered today. I look at a stock up 30plus percent year date and i look at their guidance, and i say, why even put myself into that kind of risk for a stock that has done so well . Why not wait . So i think overall this is a buying opportunity for the name. I think when you take a look, yes, the comps are up 5 . Look under the hood a little bit, because last year you had a Warehouse Sale event that generated 6. 6 million dollars. Kind of normalize, 7 . That was a good comp. They guided to midgel guidance comps. Always conservative on guidance. Walk the stores. When i see goods being sold at full price, theres traffic in the stores, for the First Time Since the First Quarter of 2014, gross margin is up. Inventories are down. I think this is the opportunity. Growth names that have been impacted, if you believe in the sustained momentum of the business, i like them and i like lulu. I hear you. Fundamentally, you make all good points. I just go a stock move of 30 and say, gosh, how much better can it really get . I think keep in mind you have many new Stores Coming into the comp face. The bottoms which has been a good category, has been up double digits, improving tops and starting to see good sales growth in the tops category that has a decent margin. Look at their website, also its been updated along with the fact theyre brusiness trends overseas, from that, too. I like the category. Yes, more competitive, but to be able to be a share gainer in a category, thats tough to do, and i see lulu doing that. Dana, josh brown. So its a midsingle digits comp, which is pretty good. Especially versus many of its peers. And i think one of the issues is its up against an 11 comp in the prior period. So then the question becomes, well, then, does midsingle digits go to lowsingle digits or can we see reexceleration itself . What drives that . The comp compares are 9 in the third, 11 in the fourth quarter. The base is those digits. What drives acceleration . About the tops business and a new introduction of new fabric bottoms coming in the fall selling season that is tested very well. Ive got bottoms. Ive got top. I have the updatened and upgraded website thats out there, and i have a category thats still rocking and rolling. I think thats what basically makes it get some comp acceleration. Dana, appreciate you getting in front of the camara for us. See you soon i know. Have a good candidate. I bought it today. Yeah. Shorted yesterday. Into the bell, though, yesterday, because of unusual put activity. They bought puts from the 75 strike down through the 70 strike. Whether it was protection or not, a lot of people wanted it, and so i jumped on those. Covered it at 69 last night. Got in on the long side today. Bought a couple hundred and im with dana on this. You look at stock went from 80 in 2013 to 30, and into the 30s, anyway. Not 30, but 35. Back up towards 80. Its a recovery. So in other words, when you asked her about the, you know, the 30 move and is there room for more . Its a recovery. Its not like the stock was on a burn 30 . I think a decent entry. The recovery has gotten a little ahead of itself. I dont know. Based on the numbers i dont think it did. The stock had a rising 50day all summer, served as reliable support. Each time it pulled back on the way up was where you bought. Today it snapped that. Maybe give it a day or so. Fine to support in the high 60s, which was resistance back in 2015. Had a lot of trouble getting above. If it can hold high 60s, low 70s, its a pretty lowrisk entry for investors. Still choose a nike over a lulu . Its not either or. I agree. A great buy and opportunity for the stock. I think the miscounts 5 , run up 80 since last november, up 54 year to date, this is a normal reaction but i think theyre in a mitts ofdst of recovery. Nike is a very different ball of wax and nike is under a little pressure. Fairly valued at the moment, but this is a 30year story of great brand management. Great product innovation. Looks like under armour and adidas are taking a little share in the u. S. Something that has to be watched closely. You dont own under armour . I dont. You do own nike. I own nike and will continue to own nike, because theres a little bit of a step here in the u. S. , a stutter step. Huge international growth, a history of superb execution and coming back from this sort of thing. Its not something i might not buy today but its something for a core holding. Yeah. I was surprised how much under armour is down here, judge. Looking at it today under 39. I know planks a friend of the show and a great guy, great manager. Visionary. But this stock looks way too cheap, too. Registered those 2 million shares hes going to put on a regular rotation. As they do. Not dumping it all at once. But this stock at the 52week lows under armour, just looks cheap. Look more attractive than nike today . Nikes an underperformer year to date, too. To me it does at this level. I liked the things barb said about nike. Take a look at under armour now. Barb, on nike, something ive owned in the past, would like to own again. Price sensitive. Should have bought it after last earnings report. Yeah, i think i just heard you say you would buy more but not here. Is there a price you would buy at . I want to give a little more visibility whats going on with under armour and happening in the u. S. That i dont have right now. Not price specific . Data specific . Really are they, mouhow much share are they losing . How will that continue . Given their past, theyll fix it, i dont know the time frame. Ened talk consumer based stocks. Ones that have been in the news and sort of trials and trick lations as well. Chipotle you own. A in position or have you just been riding it . I bought it back when all this happened. When you see a stock go from 750 to 400, its usually overdone. Sometimes not. This is interesting. Everybody know the chipotl