Weve been lagging in financials. They have been not really participating in this. We get any participation from that, scott, think about the momentum that could push into the marketplace. Obviously weve gotten through these earnings. Tech has a leader. They have been an absolute work horse in the market. And each and every day we seem to see it. Its not just the big fang names, its across the board all way into the Semi Conductor world, but technology itself is leading. We mentioned, joe, 2400 on the s p was a significant hurdle to get over. We closed above that and now were at 2412. The significance of that . How much momentum do you put behind that . Technical breakout, same thing that happened at 2300. Got above 2300, really never fell back again. I think youre witnessing that right here. I think whats adding fuel to it is the amount of pessimism and negativity that we had especially last week when the markets were down 300 plus that one day. There were many who went defensively. I went defensively as well at that time. I sold some stuff, futureswise, to gain some protection. So i think beyond the technical breakout, you also had negative sentiment really build quick low and i think thats happening the message. The message, doc, in a vix that dropped below 10. It ticked above virtually lock step with that. What are we to make of that . Well, we had a furious rally in the crude oil contract into this announcement out of opec we anticipated which was a ninemonth extension with no additional cuts. So to see us pull back perhaps even to the middle of that range, scott, i think we got down to 46 or so, joe, for the crude oil contract, popped back up to 52. Almost 53. Well, 52, lets say, on this move. Now were back underneath 50. Not surprising to see the vix where it is because, again, the range has been so tight. Even though weve been climbing that wall of worry. To joes point, we havent had some of the blowups out of washington that we had last week, and so the vix is five full points lower than where it was. Steve, has tech overheated . Ill just ask it as plainly as that. When the nasdaq has been up 83 of trading days in may, that get you a little worried . Sure it does. The vix gets me worried. You know, breath gets me worried. Breath is better than it has in the past. Were talking about 20 years if that pace continues for tech. Everything gets you worried. This is another alarming part because its been since 96. What happened after 96, though . We went to 98, 99, 2000 and if you stayed with tech, you did a lot better. We can look at all these indicators and we should because ultimately the markets will come back to a more sane level where they dont go up all the time. However, what thats going to do is keep you out of the market and distract you because of the warning signs. Were not significantly overvalued. Markets dont collapse because of time, right, it gets to valuation extreme events. We dont know whats going on with the market because of algos. Typically vix would mean something. It Means Nothing now. Between it was under 12 it meant something, under 11 it meant something. Ultimately maybe it will mean something, maybe it wont. What about oil, down below 50. Its not a surprise. Dow came off the high when that happened. The saudis, opec can do whatever they want. Theyre running after their tail and chasing us. Were going to keep pumping an puching because their cost of oil is 75 when you add in all social programs and ours is a lot cheaper. Jackie deangelis has a quick check on oil, which you can see is below 50 a barrel. Its a decline of better than 3 today, jackie. Thats right. We sold off initially when we got the news that opec said were going to agree this Production Cut of 1. 8 Million Barrels a day with nonopec members. The market had baked that in already so we saw about a 1 move lower, testing around the 50 range but didnt break through. This is what i call digestion of the news and you test those levels again and some technical stops are hit and then break under the 50 mark. Also keep in mind in vienna, those sideline conversations continue. We hear there may be tensions with the iranian oil minister. He left and said he had other meetings. Maybe theres tensions with the algerians as well. So all may not be as well with this opec agreement as it seems at this point. I pose the question again, what does matter . With oil falling, that doesnt matter, oil is below 50, who cares. The tenyear is at 2. 25, who cares. What does matter . Earnings matter. Earnings were strong and stocks responded to that, particularly on the technology side. Back to energy, we place too much emphasis on the importance of energy in the market. You had a strong rebound last year, and that rebound benefited the market from removing the possible contagion in the credit markets. This year oil is in a fade and trade environment at 6 of the s p. Lets stop worrying if oil falls 1. 50 that well see the markets reverse. Lets focus on strong earnings like were seeing in technology and wait and see when financials participate to the upside once again. The danger, guys, isnt it missing out on the overdrive part of our question . I mean it is. Q2 gdp will snap back, the question is how strong. Its right now tracking 3 . The claims number today as woe good liesman was calling it stun. As the economy continues to power forward, earnings are good, boy shall the danger, the risk seems to be to the upside. When you look upon the idea of what put us to 2400, it was obviously earnings. Earnings, we looked for the catalyst. The catalyst was earnings. Technology just boosted on top of where they were. I think you dont worry about oil in this range as it starts to drop a little bit, but it will be the catalyst in my opinion that will move the energy stocks, if that moves higher. And thats what puts us to the next level. I think thats what puts you in that breakout mode above that 2400. Otherwise were fine. We know the earnings. We look at a lot of valuations. They arent extreme. There are some levels that are absolutely a little higher than others. But when you look at the big, broad market, there are all kinds of different stocks out there, scott, that are still trading at very the multiples that are not somewhere in the nose bleed section. Goldman last week rolled over from 225 roughly, came down to 212. And stephanie correctly called a lot of these stocks were rolling over on that particular day. They have come back. Its virtually lock step back to where it was. Same thing with j. P. Morgan, judge. Citi may be higher than from where it came from, not on the lows, of course. Those are opportunities to take advantage of that. I dont want to invest based on right wing or left wing, i want to invest based on oversold or overbought. And when you get the oversold, im a buyer. When we get since they dont grow to the sky, when we get up really high, judge, i think you do pull some off the table. What about the suggestion that schiller made yesterday, not necessarily that stocks can go up 50 from here call, if you want to call it a call, but more so that were in the maybe the middle innings of the bull market rather than close to the exit . Absolutely. You can certainly take that from his suggestion that stocks could go up a lot from here. Right. And that was more commentary on where credit is, where bonds are now, i thought, than where stocks are. Because bonds are still very, very overvalued right now, given where the yields are. But what i was trying to say before, youve got to throw out the playbook because the old playbook doesnt work anymore. What youve got to joes point and their point, youve got earnings that arent good, theyre great. Plus you still have very accommodative monetary policy. Even if they raise two, three, four times, youre still in that ezone and europe is getting better. So that makes sort of like the ultimate goldilocks scenario for stocks. I dont typically buy stocks at highs. I added to something today thats the thats the 64 trillion question. Are stocks are they near their highs . Are they too high . A lot of stocks are trading at their alltime highs. Youve got to be selective. How much room is left . How high is high . How low is low . No one ever knows the answer to that. We havent even seen a great rotation from bonds into stocks. Exactly. And the risk on policy is that taxes actually do get done and maybe it is as kevin oleary suggested retroactive to 2017. Thats the asymmetric risk to the upside. Is that what we think . The risk is to the upside . I think so. Yeah . I think the opportunity is out there. When you look at the potential, we already got through this earnings season. Have they moved a lot . No. You suggested yesterday they could be and i think thats where you go. Last monday when we had the selloff, where did we see the unusual activity . We saw it come into citi, goldman sachs, we saw an opportunity there. Stocks up 5 or 6 from there. Ooi i think financials have quite a bit of room to the upside. Were keeping an eye on technology. Certainly whats taking place with amazon. Another new record high and approaching 1,000 a share. Its about four bucks, a little less than that away. Doc, youre in the calls. Im delighted by the story. I will probably sell more calls into it as we touch 1,000, which i think is a foregone conclusion that we will. Im not saying ill get out. Im saying i will call at the money calls into it, judge, to take some of that money off the table and then ill try to roll out to have more upside for later, the second half of the story, which is what joe was talking about when we were out in san francisco. How does the second half set up . The more we get these policies pushed off, judge, the more im saying second half and early 2018 are going to be explosive. At what point do you, if youre not in the stock, just get in . All these questions about the valuation. At what point do you just say it doesnt matter anymore. Stephanie link, the quintessential value investor, was able to do that. Strong move. And clearly the right move. Think for a second, if the markets can maintain the current levels that theyre at right now, and now fundamentally you bring yourself into the Holiday Season once again, which we know for amazon has just been killer the last couple of years, strong wealth effect, youre talking about amazon thats going to accelerate even further in terms of its Revenue Growth. Youre talking about not a stock that could be 1,000 but a stock that could be 1,250. If not now, when . If youre not going to put aside your valuation concerns about a stock with this one, when are you ever going to do that . I mean were literally talking about, i think you can make the statement that its the most Disruptive Force in modern history. So you put it on your shopping list. And when we do get a pullback, you get into it or do what pete and i do and sell puts. Again, when we talk about i like it, but i like it at 950, not at 1,000, okay, sell the 950 puts. You can do that and collect a nice, big fat premium and you get to own that premium unless we break through 950, in which case you buy the stock. It disciplines you for it. Am i going to feel dumber if i miss it and it goes 1250 or if i buy it here and it goes down to 600. Im going to feel a lot stupider if that happens. We get blown away by big numbers. Its up 1. 6 today. Netflix is up double that today. So you can participate in other ways. The tortoise and the hare. 1,000 a share is a nice, round number but as i said it is an acknowledgement to some degree of what i think is clearly the most Disruptive Force in modern business history. In any history. They have to spend on cap ex, so when we hear that and we get the story from bezos that were blowing out the logistics, we are going in 50 markets, not just the top ten, not just the top 20, 50 markets with logistical centers and things like that, all of a sudden they are walmart, they are best buy when they do that. You mentioned best buy. You take pvh today, pete, and best buy that are running away with it today, great gains for both of those stocks. And maybe two that certainly from best buys perspective, not amazons like people thought. How about the idea best buy was supposed to be the one that was killed first and put away and the ceo, joe lee, has done an absolutely unbelievable job. They call it the amazon showroom for nothing. No, they examididnt. But what did they do . They turned this into an absolute monster. They didnt just beat, they destroyed the earnings. When you look at what theyre doing online, a 20 jump. Now theyre at a billion dollars and its not a holiday quarter. Thats a huge thing. This is a company that absolutely took on amazon and theyre actually winning right now. Which is 600 million in expenses here, judge. On the Conference Call today it has to. I agree. Thats the discipline that amazon brings to these guys is that they have to make those cuts. But they have to grow the business, but they have got the logistics in place now. Its not like when we say you walk into a macys or kohls or j. W. Nordstrom. Thats an experience you have to be in the store to get. The web experience is not the same. Best buy and walmart now with jet can do that and compete with amazon. So theyre benefitting as well from h. H. Gregg closure. Sure. Gaining those customers and have been well positioned the last couple of years. You and i have talked about this stock for the better part of 18 months. They are well positioned to continue to gain customers. They have done the right things within the store. You can point toward todays earnings and say nintendo, whatever game it is, is really the significant contributor to this earnings but i think thats the wrong way to look at it as if this is a oneoff. But were talking about 1 Revenue Growth. So this is more a tribute to the ceo, how hes positioned it with the street. The shorts keep coming after and try to short it, 1 Revenue Growth and cutting cost. That game ends at some point. So hes going now, its not a cheap retail stock. And so the vertical integration that they have done have put them in a very interesting spot for the future. I bought a big tv there this past weekend. Charged it to you. Another retail stock thats done well is pvh. Our next guest is saying that its beat in raise was a rarity. Its jpmorgans matthew boss. Matt, good to see you again. Thanks for having me. Its hard to find standouts in retail, but you sure did with pvh. The story here is i think they have diversified their distributions. 75 of dollars of outside the u. S. They have stabilized the u. S. Marketplace and international has a huge runway ahead. We think they could triple their European Business with calvin klein and double their business with china with Tommy Hilfiger. The stock has done quite well, its up 19 year to date by the numbers i see. How much room do you see ahead . You have a stock trading at 12, 12. 5 times earnings for what we think is a 13 to 15 Earnings Growth algorithm which could be the next five to eight years. Layer on cash flow yield and now they have the Balance Sheet back to 2. 5 times ebitda. Potential optionality is this is a platform acquisition model. I just think theres a number of ways to win. Numbers are too low, multiples too low. This thing to me has a lot of opportunity from here. Matt, the lack of a brick and mortar strategy here, the fact that these are names, iconic names as you mentioned. Brands, not buildings. Exactly, brands, not buildings. That is the key here to pvh, is it not . Because even though, as you say, the growth is going to come from overseas, the calvin klein number, the Tommy Hilfiger numbers were both down 3 or 4 , maybe even 5 in the yuu. S. , bu theyre picking it up overseas. You couldnt be more right. Were bouncing along the bottom in the u. S. They have managed the inventories prudently but also understand where the customer is shopping. Amazon is their number one channel in terms of growth on the wholesale side. Theyre in the best in Class Department stores. I dont see a whole lot of exposure there going forward. Like you said, the order books here for calvin klein in europe are up 20 plus percent. I mean they are showing inflection, but theyre still off of a small base, and thats really what we were talking about in our upgrade. They have stabilized the u. S. And international can double from here. Just a lot of runway on the top line and still margin opportunity to go with it. Give me a thought on tjx if you dont mind before we let you run. To me the offprice sector is where the value is. Even as relates to pvh, theyre accepting of the offprice sector because they like the positive traffic. Burlington reported this morning good results, continued positive traffic. I think value is all about the offprice sector. And as the brick and mortar landscape continues to consolidate, t. J. , burlington, that offprice sector is where you want to be. Appreciate the time, thanks so much. Do you guys want to put a bow on this. Doc . I like this one at 96 last week on the show, we talked about it. 11 higher here. This is one of them where i agree with matt, but i do think that you either sell some aggressive calls into it or take some off the table because, again, youve had such a winner here. This management is great. Its another very Good Management team. Knows how to allocate capital, knows how to bring the Balance Sheet down. You got a flavor of that last night on mad with jim. Great call by jim. Hes been on this one for a while. A lot more ahead on the Halftime Report. Next up, big and bullish calls on chipotle and black rock. Chipotle is already a big winner this year. Black rock has outperformed its peers. Also ahead, the battle for Buffalo Wild Wings. The wig activist in the stock, mick mcguire, scoring a big victory. He joins us live and exclusively when the Halftime Report with scott wapner and the traders comes right back. [pony neighing] what . Hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. Our 18 year old wase army in an accident. 98. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. Were the rivera family, and we will be with usaa for life