And what could that mean for the future of the trump rally . Rick, makes me think somethings got to break, somethings got to give. Bonds or stocks first . I think it will be mario draghi and the central bank of japan. I think one of the biggest reasons Interest Rates globally are going down is because traders always follow the biggest trader in the room. They always do. Down here in the 80s, we had tom baldwin. When hed jump up and down and bid for a thousand bonds at a time, it was big. What do you think every small local next to him did . Bit on a one lot or a two or three lot. So i think in that regard, theres a trillion dollars year to date being invested by central banks. Ever heard of soma . Wh we have auction, might be 28 billion sevens. Then the fed is probably buying another four we dont talk about. The other channel of course is growth isnt as fast as people would like it to be b. The final area is that overall, right now, the equity markets do have my opinion, a longer Term Investor view at a a time where money doesnt seem to do much at other sectors, thats contributes as well. Steve, bill george on the network said the economy piqued in january or february. Job growth is slowing. Maybe the economy isnt as good as people think and bond yields in part are emphasizing that. The one thing i think about bond yields is the only thing thats worked for me is they reflect the outlook for inflation. I cant do much more with that. I think its putting too much weight on the poor bond yield to tell me all this stuff about the future or like how much rick is going age for example over the next five or ten years. My thinking is it that shows inflation. The numbers have been weak. You dont necessarily have to have less growth with less inflation, sometimes, those two go together. Bonds are telling me this reflation trade is something to be worried about, which ever part that is, thats the part i would worry achblt even the economy, ive been saying for a long time, have i been early, not wrong, on this issue of get ready if for a step down in jobs. No reason why it should be creating all these jobs a month. Thats where we are. People have been subjects that the economy is Strong Enough to support this rally. You dont necessarily need the trump agenda, so quickly to fall into place. Tax cuts and otherwise. Maybe we do. James gormen made that point. The ceo of morgan stanley, that the economy is plenty strong. He said were fine. He said robust economy over in europe and so forth. And i think hes right. I think rick is suggesting weve got a robust economy. Hes got a lot that are dealing with money just like stephany does and i think these folks are saying things are feeling good. Is it optimal, fantastic, perhaps not, but low inflation is good for stocks. Thats why stocks are going up and bonds are going down because Inflation Expectations are so low. Can the market take a next leg up . Weve been debating as to whether the rally itself was about to restart. You look at what the major averages are doing. Got new highs yet again today. Eve nn the face of a disappointing jobs number, dow is up 69 points. S p is going up. Where does it go from here and how . When you look across the globe, youre seeing more growth now than weve seen in five or six years. So i think whether its jims business or whether its Global Markets are reflecting the fact th that, the u. S. Continuing to chug along with a Good Environment. The market is is telling you with rates under control, keeping rates under control, thats a Good Environment and i think we can move hire. Particularly if we get policy developments. We had Lee Cooperman on the show this week who talked about the next leg of the rally and what could spur it higher. Heres what we had to say about the president s agenda, particularly tax cuts. Theres a big swing in earning. No repatriation of 2 trillion of earnings. A Corporate Tax rate thats somewhere between the high teens and low 20s. Thats ten bucks. S p not earning 132, but earns 142. Implication is clear. Market cannot take a significant leg higher without tax cuts and then earnings going up as a result. But earnings are going up. We just had 15 earnings xwrout in first quarter. Thats why the s p is at 2435. I would say that thats why the market is going higher because earnings are Getting Better and theyre going to continue to get better because we have this favor bable backdrop. Low Interest Rates, very little inflation. Very strong Balance Sheets. Corporate companies. This is before any kind of tax change. Can you imagine when we get favor bable tax change . What this will do to earnings . I dont think were pricing in anything from the trump policies at this point. And i think were doing just fine. As a result. So, i think the its a very favor babable environment. Stef is right. So the joe. Sometimes the bond market isnt really telling us anything, number one. Two, its okay for stock prices to go up with yields falling and bond prices going up. Thats basically been whats happening for 37 years. With a few intermissions. But thats been the bigger trend and i think that speaks more to supply demand for fixed income product at this point, especially in the Wealth Management industry. The junk bond market is shrinking. They cant make enough. Hertz might be the worst run company in the world right now, yet they can issue billion and a half dollars worth of bonds. Sure, no problem. Well take more when youre ready. I dont think you should say, this is signalling a problem with the economy. Theres a good debate. Its an old debate. Weve been having. James coreman says the economy is robust. I want to back up scott. What are the right expectations, okay . To me, 2 seems about the right outlook for growth. And the other thing that happens is when people start modeling in these changes that are coming, they may have an outside effect on profits an earnings. They dont when it comes to growth. The best numbers, 02, 03, 05 if you stretch it and score to the heavens, you can get 05 out of it. You dont get a lot of growth expectations out of the im just saying, just getting realistic about growth. Profiting can do what stephanie says. You have this international kicker. And its synchronized, right . And youve got easy Monetary Policy globally. Thats going to stay very easy, no matter what they do. Even if they pull a brakes back a little bit, we have we still have a policy here in the united states. The data means the fed isnt going to be as aggressive. We need a tax cut specifically. To come and take that next leg higher. And in the stock market. Far fewer agencies. Far fewer regulations with hammers and government officials holding them. Think about it this way. I dont think the traders chicago in their hey day thought those little bad decisions and negotiations with unions over two decades, none seem very good. How could you take down motor city . They did. Steve, think about that in reverse. You can make fun of these 50,000 jobs, but like interest, like somebody who puts 20 a month in bank when theyre 20, when theyre 65, its about 400 grand. Growth will compound. Its not about a specific policy. Its about good economics and pad economics. You can say a lot about this president , but i think the people hes associated himself no boater versus worse. Why are we weakening . Rick . Define weakening. Whats weakening . Pace of acceleration of job gains is slowing because were at 4. 3 unemployment, but imt to make a point about stocks. The biggest argument you could say against stocks now is that leadership is not brood enough. Its a lie. To stefs point sh x theres something global happening. Last month, the first time, we saw u. S. Ek quity etfs lose a u. 2 billion came out. 20 billi 20 billion went into international stock, assets under management for etfs because people are recognizing theres another game in town outside of just the s p 500. Now, when you look at the s p 500, you have 160 names that are within 2 of all time record highs. You have 230 names within 5 . You have 100 s p stocks that are up more than 20 . So, it might seem narrow, because medicine caps are the leadership group, but theres a lot more happening than just the faang stocks or top five. People need to understand that. The russell 2000 today is outperforming the s p 500 by a full percentage point. We dont need to have the discussion of whether the markets in total are going higher. Sectors are going to go higher and others are going to go lower and right now. Small caps have been lagging. Today is the proof that all of a sudden, small caps are back . No, but you know what, it may well be. I cant pound also consider talking about youve cited oit on the show yesterday and value versus growth. Its the start of something. Value has outperformed growth. No nono, the alternative scenario, or not the economy is weakening from this jobs report. A lot of the economists are saying this jobs report is weak because they believe the employers cannot find the workers. Im try iing to figure out where the market is going to go. Faber on our air the other day said theres a bubble in everything. Lee cooperman. Doesnt matter. Lee cooperman said youre not going to get another major leg higher unless you get that boost to earnings through Corporate Tax reform and some other things. Those are wage growth, household formation, there are tons of other kickers beyond tax cuts. Im up 20 . Im just praying to god to keep what i got. I dont know, you know, necessarily need another leg higher here, if if we keep going up on this, im very fine with it. Its the reason why i disagree with rick and the president on this. I dont need 3 growth. You give me 2 growth for 20 years, i will take that and bank that forever, rick. You want to go to 3 , get back on the roller coaster ride. There is a freeze. See you perfect, steve. Theres a place you should say sweet home sweet home. Its called europe. Thats what europes thought for searchries. They dont have 2 growth, rick. Weve had it run ining about te years now. Its not enough and anybody whos satisfy ied with that, th animal spirits need to come back. Sfwl i got 4. 3 unemployment. Low inflation. 3 unemployment. How many rides is that going buy you at the carnival when you still have 95 million people, you keep going, oh, i dont see them. Theyre not really in the room. Especially the fried bread. Rick will be screaming about inflation if we see 3 growth. 2 growth, the Public Policy issues that weve seen some challenges. Whether its wage growth, quality, challenging. Its a great environment for investors, no question. Its like goldilocks scenario. Growth okay. Youve taken the left towel risk off because the downside. To ricks perspective, this 3 growth helps out a lot. Quality jobs and wage frout. Is there a need for fresh money . Data points are better. Growing at a robust rate. We think rates are going to stay under control, although theyll still move higher because i think the fed is determined to move rates higher. Thats another issue all together. Right, so we talk about policy. Tax policy may not drive economic growth, but you have regulatory policy and you have potential Infrastructure Investment now. I think the odds of some of these things happening have gotten much lower today than they were four, five months ago. Is anybody worried about the fed making a policy mistake . Im amazed. Talk to kaplin . And powell this week. Both of whom are cut the, and were going to reduce the Balance Sheet and im watching the market not react to this. Im watching the give him time, too. Ill just say what i think i know. What are the risks . Theres always a risk out there. Ipg what the fed is trying to do is claw back a bit of normalcy while it can. I think the current environment, remember, its important to say the Federal Reserves long run Unemployment Rate is Something Like 4. 7 from the march meeting. Were now at 43. Were under that. Fed believes were running below the natural rate of unemployment and the fed also thinks that ultima ultimately, youre only going to do 2 growth, so were at where why do you think the dow is up 69 points today after a disapointing jobs number . Lower inflation. Any part of that a sign they think the fed is full of it . I have the pleasure of sitting here with five people who are brilliant on the stock market. I do my best on the economy. Ill leave the stock market. And i just, i was just going to say that ive been at conferences all week. And companies sound really good. They really do. Across the board. Financials dont sound great. Theyve been at conferences all week. Ive met with Brian Moynihan and was at the conference where he lowered guidance slightly. Trading is volatile in interest. The rest of his book, book, what theyre doing is very good. Productivity, cost controls, et set area. Its not effort at the banks. Across the board, from caterpillar to estee lauder to some of the banks, they said good things at this conference, so i think they feel good and again, we dont even have any real trump policies in place and yet, they fell pretty good. You have one policy in place. The end of war on business. From kudlow, the end of the war on business is why this market is not going down. Stop. No, im not going to stop. Was there a business when the s p look at this. How do you know it wouldnt have . I want to about boeing and the National Relations board. If they hadnt had to fight the board in south carolina. Maybe, maybe. Most likely. Maybe, but most likely, boeing would have done a heck of a lot better. Actually focusing on their customers instead of regulators. Youre not serious, right . You dont think theres a different tone towards business since the election of donald trump than there was over the last eight years . A difsht tone coming from business leaders, from the white house towards business. No question, but what does that mean . Are you saying, i think the board adjustment tax is terrible. Are you saying whats happen ng the white house is one that ignores in the stability . It looks to me like its chaos. When it looks like the economic policy, we are at or near all time levels that weve seen. You are talking about policies that can help gd perp when it h to reducing taxes and regulation. Also talking about really questionable policies when it comes to reducing free trade and reducing imfwrags. You have comments in the beige wobook this week say ng the San Francisco region and west coast are going uncollected because of a lack of immigrant workers. This is real mixed bag right here and if you say that all is positive, i say some of those things are positive. Some are negative and a little bit of stability coming out of the white house could be a killer. The stocks and xaeps doing well now u are the ones doing well any way. You cant point to one sector Industry Group of company that is thriving as a result of anything that the white house has said or done. Its not a fact right now. Did you call this before the election was over . I know jon did. Very publicly. Dont want to talk over each other. Were not going to do that. Come back here, six months from now. Get 20 months from josh and jim on the table here. No, no, no. I hope im wrong. If Business Investment is higher. That would be great. Youre starting to get green chutes on cap ex. They can say anything they want. Im really, really happy. What about Business Confidence . Were at the highest levels weve seen in years. As far as their businesses. Theyre the people pulling the levers on a billion dollar companies. Thats who owns businesses. Thats what that is. Nothing to do with saying. Invests in the market. Rick, thank you for being here. Steve, thanks to you as well. Im going to gi you the last word, the floor is yours. If you want it. Thats a scary thought. I think again, were longTerm Investors, we see opportunities in the markets today. Do you think theres a bubble in bonds . Yes because you had a will the of artificial buying. I think that will slowly seep out if you will. And that money will go into stocks . We think so. Good having you here. Thanks for being a part of that mash up i guess. Next time, two big movers moving in opposite directions. Lululemon and restoration hardware. Plus, the cancer fighting stocks to buy before this weekends world famous conference. Before the break, the jobs report. Coming in under expectations. Thats happened 45 times since 2010. And partners at ken show show what happens a month later, the markets gained steam. The nasdaq is up 1 and a third percent after a jobs report miss. The dow up 1. 3 . 1. 24 for the s p. For more go to cnbc. Com pro. The Halftime Report with scott wapner is back in two minutes. Hey. Pass please. Im here to fix the elevator. Nothings wrong with the elevator. Right. But you want to fix it. Right. So who sent you . New guy. What new guy . Watson. My analysis of sensor and Maintenance Data indicates elevator 3 will malfunction in 2 days. There you go. You still need a pass. There you go. Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. All four of the faang stocks have left the s p 500 in the dust this year. But fund strat run by tom lee, says theres still more gains ahead in the second half of 2017. The firm is sticking with the group, also seeing potential outperformance in the three worst sectors of the year. Energy, tell con and financials. This is this faang call that could add 40 in the second half. Ive said it before, i think fang is the wrong acronym. I think it is wrong to put apple or google in the same category as netflix and amazon in a valuation point of view. Here, everybody have who cares about the evaluation point of view. Im talking about the leadership stocks. If youre a long run investor, you care about that. We are talking about the large