Saying he would say long. Were bedding on a stronger economy mere. Okay . Thats the bet. Were betting on strength one way or another here the strength around the world. The day you had the three houses won, that was the day that was not going to be another regulation. People say people are holding back because of uncertainty. Thats bull i havent been negative about the stock markets. I was a bit nervous about potential earlier this year about trade friction with china, but i think they have gone past that in this administration. So tepper says market isnt cheap. You get the french elections out of the way and other stuff. Not in the way until the market stars focusing, hes like wake me up when the tenyear hits 4 . Then you have eye sawn, who says a little cautious. Whos right . Why dont we split the difference and say its a good idea to be somewhat cautious, but to respect trend. Were in a secular bull market that started in the spring of 2013 when we took out the double top from 07 and 2000. Quite frankly people have been talking about long in the tooth, too far too fast for the better part of seven years. The secular bull from 82 to 2000, 18 years, 1350 . Were you have somebody 200 . So by any measure go back and look at 42 to 66, another comp want bull maeshl up 970 . The trend is up. I think we can all agree, the biggest best companies in america, the stocks are within alltime hims. Go down the list. So to say this is it, this is the end, its very arbitrary, it doesnt work. Its cost people a ton of money. Lets not play that game. I dont think icahn is saying the sky is falling, but maybe im more hedged than i wish i was, i put a billion on the table, i wish i had done more. I would have made more, and dave says, look, the backdrop is pretty good for this mark and equities to continue to glo higher, if you look economically at some of the proposals on the table from the administration. What dave is focusing on is synchronized globally improving economy. If you look at the perspective that each investor has, carl akahn may talked about distressed valuation, but rarely talks macro. Thats what dave does. He looks across seat classes, looking cross geographies, and money is a relative game. Hes say bonds are way too expensive, particularly sovereigns, tiparticularly bund and saying relative to that when you look at what draghi has to do, hes got to get off qe. When he does, its a positive message. Hes looking at it as the glass half full, keeping in mind that the markets are not very cheap, but not expensive yet. With everything that is going on, with the relative value or lack of value in credit, equities are the place to be. So i think its a very measured response, i dont think its tremendously dissimilar from what carl is saying, a different perspective. Hes worried about the level, but that type of the wall of worry, weve heard jeff gunlock how could you not be worried or cautious . You have to be. Its a data point in terms of your perspective, with dave, with 17 billion, you cant get in and out. You have to have the conviction of going in. Hes not only the best investor, hes also the best risk manager i have ever seen. If his mind changes, hes not going to get emotionally attached to something. Hes going to say, you know what . Im stepping back. He perspective is i have to take advantage of it. The wars far outweighs the risk. So jimmy, the takeaway, is it time to continue to put money into this market . Weve been debating whether investors were going to get an opportunity because of a pullback. Tepper leads you to believe that you dont necessarily need to wait for a pullback to get involved in the market, because it could go higher. Hes right. If you get a pullback and you have cash, great. Two things to say here, dont try to time a correction. If carl icahn wants to do it, god bless him, he has some skills that he might do it successfully. For the average investor, dont try to time it. Do not worry about Interest Rates right now. Were going to start wringing our hands will, the press will, when the tenyear goes above 260. Dont do it. Dont worry about it. Tepper says wake me up when it gets on 4. Hes exactly right. Any thought process that the fed wants to killing this rally or expansion is as wrong as wrong can be, if it raises rates too fast, theyll back off quickly. Dave walk talking about having that perspective, not always been in the market. If you go back to what it used to be on fed funds, 3 to 5 was neutral of over 5 was restrictive. Below 3 was terribly accommodative. Because we had to have positive real rates. You have a 1. 3 to gdp rate this quarter and were worried about four rate hikes . That isnt happening. Does tepper force you, doc to maybe take a step back and rethink where the market is, not to view it through the prism of 21,000 and say, well, the back drop is opportunistic enough that you can get involved here . Yeah. I agree with david tepper. Well see whether or not we get an explosion in the up side of Interest Rates, or whether we, as i believe, that we are anchored to whats happening over there. The volatility overseas is 30 or more higher than it is here. Thats because they cant just roll back regs like we can, because of the european union. It will be much harder and draghi is unlikely to make any moves, even though i agree with the gentleman, that were not prior to see any moves made prior to the elections. We make a move here, the markets react or dont, and i think they dont react to that move next week out of the fed, and i think we stay roughly i dont even know if we violate the 260 to the up side. The wild card is the agenda. You were going to say the fed . For december im sore, for the tenyear, i dont think 260, i dont think we get above that. The wild card is the trump agenda, right . Weve auld placed our bets, pushed the chips into the table, believe were going to get the good hand. We put our chips in. Now the dealer has to give us the cards we need. What happens if we dont get them youre right to ask the question, but heres what could happen even if you dont get the agenda through. Adp report, well see on friday how that tracks with the actual employment numbers, but realize whats the tail and whats the dog. Aggregate demand will come from a strong labor market here in the u. S. Thats where spendling will come from, thats where investment will come from, and were getting it in advance of the agenda. Were getting it now. Incidentally we wont have regulations and not a National Minimum wage debate anymore, but i think 17 states did it themselves and i think it took effect in january. Youre seeing a rebirth of appetites at the consumer level at levels other than the luxury consumer. Thats, i agree with jim, thats why ear going to be better and better economic data, even if it doesnt necessarily show up. Do i want to stay long materials . Industries . Tech, industrial and financial. So long as that remains the case, thats supportive of a bull market. Thats what should historically continue to lead. Thats a really good question. Selective in those sectors within the sectors. Financials, i still think have a lot of room to go, particularly if draghi does cut back the, because theyre in the penalty box in terms of negative rates. In terms of the others, i do think theres some play there, but i think you have to be selective in what youre doing. Weve had this tide thats lifted all ships, and at some point weve see divergence into returns, and theyll makes decision which will go higher. Advanced decline on the New York Stock Exchange composite is starting to fall, and the new lows list is very subdued, so to stevens point, there is some operation between winners and losers. Again, not a lot, not like what we have seen in historic markets, but not quite the etf free for all. And also to your point, though, to your question earlier, you need to know whats going to move them. That is agenda driven. If youre going to invest there, you are counting on the 1 trillion infrastructure bill, so know why youre investing in each sector. I like what i saw this morning out of the adp, judge. How do you not like that . Every single sector was up. Its been a blowout. This was phenomenal. I asked steve liesman, what was the best effort, he says february of 06. It shows the sort of momentum thats built behind and why mark cuban is so prong, was the animals spirits that are bottled up for eight years are loose. Its the pushpull of the Trump Presidency as it relates to the market. You look at the number since he was sworn in, you would have no reason to be worrisome or cautious. Its the other stuff. That should change this year. So thats exactly right. Weve talked about this before. Looking at the market as investors, rather looking at it as a political football, and the other stuff thats going on, we know where dave stands, right . Because when he came on cnbc before the election, so we know where he stands. He gave some hints of it today. Basically hes say im an investor, sure id like them to tighten it up in d. C. , but you have to look at the fundamentals and what the policies are. I like what i see. Like the noise be damned. Focus on the agenda thats coming, the fact that the economic but let me maybe it isnt to a point. Were going to test that theory, something tells me were going to test that theory sometimes this period. What if we dont get the policy . Now tax is put off until august. If the economy does continue to accelerate, we see the consumerdriven growth, the jobs, everything weve talked about. That would become less important. I was going to say, that gives you more cushion. You can see whats going on. If theres trouble, trump or ryan will come out and say, talking about no regulation, has driven the market, driven the economy, so make we can dial back. Not really, though. Well, there it is. The sectors year to date. Next up, the individual stocks david tepper likes and doesnt like. There are some surprises. Announcer david tepper saying today hes long stocks, our partners for producing a special screen on top performers when stocks and bond yields rise together. For more on this, go to cnbc. Com pro. With e trade you see things your way. You have access to the right information at the right moment. And when you filter out the noise, its easy to turn your vision into action. Its your trade. E trade. Start trading today at etrade. Com david tepper on squawk box this morning. They stocks go fairly cheaper. Probably trimmed a bit. It looks pretty cheap right now. I go back and forth on some days, and some days i dont know why the heck i look at it. Listen it was not the best position we took. What we thought about snap, we like places in tech where we think the competition is not as high. So jim, lets start with apple. This is ra different story than it was 9 on or 100. I cant pound the table and say its cheap, but i own it and im not going to sell it. The pry tag or the valuation . Its not cheap, either. There was a period of time back at 100 like four, five months ago, where this thing was trading when you strip out the cash. Dont give me a hard time about that. Right now its mid teens. You know what . Its got good growth rate. I dont think it justifies a higher multiple, but ill keep it for the potential that the iphone 8 is a knockout. Tepper says im a believer. Thats sort of nowhere land. But he likes it, right . That stock has gotten no love on this desk whatsoever. Doc flip it right away, now because he liked it, but likes making money. This is a guessing game right now, trading for lest than five days. Theres almost no volume. Its not high convention volume, just lack of sellers. Did tepper reset the narrative . Because there were way too many unknown as, and unlike facebook, because they do, maybe they went public a year late. That has not been good for twitter. When he ran into that wall 26s atrough from there on hout. How did they solve it . They bought instagram. Snapchat has money and could do some deals, but i think some of the deals are out of their reach already. Heres the reality. Theres a company doing still managed to lose money, probably will lose money this year and next year if you believe what they themselves told you, and so its a guessing game. Are there going to be animal spirits surrounding people wanting to be tepper basically told you himself today that if the stock goes lower to a hed like to buy more. I hope he does. I want this thing to work. Im telling you why im on the sidelines here, because its an enormous leap of faith to give this company the valuation without any prospect of making money. The street might look past that in ad dollars come in at a faster rate. The street might say we dont care, because theyre building the company. That might be good enough. Im not in the mood to make that bet. When goproperty is saying were going to be at youtube were a media company. We get that media onto youtu youtube, how did that work out . Theyre making the same kind of claim. Thats almost apples and oranges. Youre talking about a Device Company, and a software company. What did they just become . A Device Company with those dumb glasses. How many hours a day do you spent on snapchat . Two . Three . Sometimes 10, 12 the entire day. You bought it because its defensible, because nobody can sell for a year i mean of the insiders. Thats why dave bought it. He bought it for the reason he buys everything. If you look at the numbers. I dont know anything about his position, i was surprised he mentioned it, if you look at the volume of the trade in the mark and what dave said about his amount un and the other names, this is curiosity for him, all right . This is not going to move the needle either way. He cant possibly get big enough in it, okay, for it to matter unless the stock doubles from here. So for him, i would doubt that hes put this i dont know, i dont know anything more than you guys well, maybe more than you, jim. [ laughter ] sorry. But hes not going to put the same amount of work in this that he would into one of his bigger holdings. Allergan, trimmed a little, wyche, you have a take on this . Yeah, if you Pay Attention to when he got involved. He got involved in almost the exact right time, its liquid enough for him to be involved in. Hes exactly right. When stocks go up in the size of the portfolio, you have to trim back. From 190 to 240 in about three months, which means its time to buy and for it to go down. There you go. It was almost like he was having a battleground in his own mind over teva. Its a 50 cents or a buck off the 52 week low, whether you said to saw that i a bu or another big fund gave up on it. Highlands is not bosch but i dont think anybody is happy holding this. Theyre hoping generics dont get hit as hard as the rest of trump is focused on. You have a thought on teva . Take a look. He made a sector call on if it works great, if it does that, theyre downsized de minimus. We asked the question, should you follow somebody in . I would say no, because i dont know it doesnt sound like a strong commitment to it. Thats how sausage is made, unfortunately. Some of the best guys feel strongly one day, you read the story about drecken miller and soros, sometimes my back hurts and i change my mind. Thats a tough game for people at home to keep up with. An explosive story on caterpillar. That stock is down about 4 after last weeks raid at headquarters by federal authorities. Jon najarian using options activity more Halftime Report is coming up. Is happening before our eyes. Shift in Human History sixty to seventy Million People are moving to cities every year. At pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. Partner with pgim the Global Investment management businesses of prudential. Hey nicole. Hey i just wanted to thank your support team for walking me through my First Options trade. We only do it for everyone gary. Well, i feel pretty smart. Well, were all about educating people on options strategies. Well, dont worry, i wont let this accomplishment go to my head. Im still the same old gary. Wait, you forgot your french dictionary. Oh, mucho gracias. Get help on options trading with thinkorswim, only at td ameritrade. Deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced. Our senses awake. Our hearts racing as one. I know this is sudden, but they say. If you love something set it free. See you around, giulia a market alert on oil. Inventories came in about a half hour ago. Its been some a range to 50 to 50 to 55 for a long time. Ive been saying for a long time Shale Oil Producers have been going crazy. Thats why you see inventories up and the price going down. Its going to continue. For those of you getting into some oil names, we discussed them this week. We have big interviews this week from sara down in houston. We had a nice pop out of capital oil and gas, i believe, a nice pop today, but i think theres a line in the sand right away that 51 level. Were nearing back to the largest rig count are counts and the largest production, because the rigs have gotten more efficient. Theyre going to keep pumps. If oil goes through 50, youve got a problem . Yeah, it bounced pretty hard. I think if it goes below 50 and stays there, then you get the narrative, is this a sign of economic weakness, which i dont think it is. Hit the junk bonds again, right. But this points out how a wash is 10 is the world is liquidity. Sure some of Necessary Companies went out, but overall you had so much lending, that they were able to keep going. The narrative there is that it doesnt matter what opec does, they do not control the price of oil. Hey, jackie. Good morning, its interesting here, you can see its more than a 3 spike down in crude oil prices. Digging into this, the traders are bringing up the production numbers, well over 9 Million Barrels a day here. That is a problem, as we start to increase. My question to you, jeff kill burg, is it all about the supply numbe numbers . I think it is, short term, jackie. A coupleiers, a 33 move was a walk in the park. This is a big deal thing. The rangebound crude oil environment, but right now i think youre flushing a lot of weak longs, but lets keep front and center the aramco deal. A very important move forward its a buying opportunity. Brian, earlier i pointed out that you looked at the onemonth chart, crude was actually flat. Is this the charge of a breakout it crashed through that. Now to see it trade down, around that 51 level. So i think its time to step in. The guys have talked about the 50 left. I heard rumors circulating that the opecs secretary met with a whole bunch of shale producers, and obviously some discussion about how we control the prices, so certainly those are key levels to