Lebenthahl, and steve weiss is here lets begin with the week ahead. I want to show you an earnings calendar facebook, dmon, and boeing and cocacola, our parent company, comcast, as well steve, this really shapes up to be a hot and heavy week. This is the heart of it youve got a little bit of everything in terms of sectors and industries its going to be very interesting. And of course, its all not going to matter when you get the fed meeting and hear what they have to say, potentially but i think it will be same, follow the course the way it is. I wonder if the dollar, though, does come into their thinking at all. Because weve seen the dollar take a hit it will be interesting to see if they address it. My guess is that they dont. But it clearly is an important part for the markets, as is the politics of the landscape right now. My question is, whens will ceos hit the pause button and say, you know what, things are a it be unstable in washington. Im not comfortable allocating capital. Youll want to hear if ceos say that on the call so very, very interesting week critical weak. Josh, which earnings are going toreally stand out youve got a big bulk of the fang coming out next week. People are going to be paying close attention to that. Mccdonalds is on the docket as well, exxonmobil chevron, verizon youre going to get a real good flavor of where these Companies Think theyre going, the commentary that steve said but also, where investors think the Leadership Groups are going to either remain or get zr disrupted. Yeah, so it looks to me as though health care, specifically biotech, is poised to take the performance lead from Traditional Technology at this stage. And aisle going purely on price, volume, accumulation versus whats under distribution right now. And youre starting to see stocks that are secular growers like tech, scott, but have just not necessarily been in the focus of momentum investors, et cetera and now theyre starting to make really big moves off of wellestablished bases soy just want to point out, too, gilead is one. This is a name that was cut and a half, a large cap biotech, could not find a friend. Now its running, its running fast tons of room to the upside not a lot of overhead supply here the other one is secelgene, whih quite frankly looks absolutely amazing. Take a look at the xbi, this is equal weight biotech, not biased towards the megacaps that i was just talking about theyre all about to go. This is a twoyear consolidation being broke into the upside. It would be great to see this group now take the torch, so were not just talking about fang so were not just thinking about, you know, those tour names that we obsess over. So, mike, how does a strategist look at a week like we have right in front of us, you know, 13 dow components, 180 s ps coming out next weak. This could be, i dont know if you say a make it or break it week, but its certainly going to confirm a lot of stuff if these things come in well. If im a strategist or pm, this is what youve been waiting for. Get the political stuff off the screen and talk about what matters and talk about Company Fundamentals so far, so good. The fundamentals have been great, again Second Quarter in a row where youre going to get doubledigit Earnings Growth. I feel hail confident about that i agree with josh, i think health care is looking much, much better here biotech, probably the best group within that. I dont know if it takes the mantle away from tech, but it absolutely can participate in line with tech are you feeling pretty good about where the market is . Im feeling really good its almost right on track with what weve, looking for this year youre getting a balance of Earnings Growth and multiple expansion this year, and thats exactly what were going to get in the second half so well get this continued, you can characterize it as melt up or march, whatever you want to say, but its going to go higher i think its justified. I think its the wall of worry continuing to fall by the wayside. People continue to be distracted by things that are really not that relevant as it relates to equity market prices its amazing that the market has should be an incredible ability to not be distracted by a lot of the noise thats around whether its coming from the beltway or outside yeah, but, the reality is is that these are the best fundamentals that weve seen since coming off the financial crisis in 09 and 10, meaning we have a siynchronous global recovery, theres not one region thats not growing for the first time in six or seven years we have the first earnings in revisions and breadth weve seen since then across sectors and regions. And look, Interest Rates remain pinned thats probably the single most important thing thats happened this year, is that Interest Rates remain pinned, which allows equity multiples to expand so youre looking at these companies coming out next week, facebook, dmamazon, apple, do we confirm the move weve had in f. A. N. G. And give it another reason to take it a leg harg unless one of these companies majorly disappoints, and i dont think thats going to happen, then the rally is in tact, and its not just for the f. A. N. G. Stocks, this has broadened out considerably and its not just health care. Some of the industrials like a caterpillar certainly has risen. And i think theres more room for the breadth to spread even further. You know, theres some telecom stocks, at t and verizon, which have had, you know, a very rough last three months. This could bes a chance for them to start participating, as well. Theres some things that have been below the radar screen that wec we havent talked about recently, like General Motors is coming out next week theyve mad many, many quarters in a row where theyve beaten expectations, but its only recently that the stock has started responding to that you get one more quarter this next week that outperforms, i think you could see that rally go further the point being is the breadth of leadership in this market is really spreading out, and thats great for the market overall z steve, nasdaqs up ten straight days, fuirst time sinc february of 2015 what happens next week next week could be a critical weak if you have alphabet come out and facebook, even though its not nasdaq, its nasdaqlike youll see that sector continue to move higher those are the market leaders so if the leaders double down, i think youll see the move hig r higher i just have a question for you, mike i dont know how you can say that people have been too distracted with the market the market has completely ignored whats going on in washington theres no distraction, whatsoever well, you have to discern the market and people. So the market has not been distracted, at all but as i whos putting money into the market, though right, but i think the point hesmaking is sort of these stories have cropped up. We focus a lot on some of the noise thats come out of d. C. , wonder if its going to have an impact on the market, the market itself has shown an incredible knack for being resilient. Its puzzling, its puzzling. And i think at some point, depending probably on what happens, i personally think if trump gets impeached or resigns, that the market would trade higher on that naews, because yu have somebody thats more stable mentally in there. I coined this last night, the pence put. Theres a pence put under the market, because worstcase scenario, i dont know how the market would react to that maybe theres anytime theres some escalation of turbulence in d. C. , the market does have a tendency to take at least a little bit of a move lower, but it quickly recovers. Were clearly in a melt up face here. Its happening every day you just hit these small, new highs and it happens almost every day. The pence put is real, but lets be honest, were a long way from trump being out of office. And im not even going to predict how that might happen. But i think the markets would respond quite positively with somebody who has his ideals, but just a little bit more serious demeanor to approaching how to getting these through legislation. Clae clearly were in a meltup. Your best bet is to be in the markets right now unless a disappointment hits. I dont think facebook is going to disappoint at all i dont think google or amazon is going to disappoint if one of them did, that might get me to change my colors on the heart attamarket, but right path of resistance so one of these or two of these reports, lets say they just dont come in the way you would expect they would. Are you really going to change your bias isnt the point to, when youre heading into sort of what could be, maybe some turbulence, maybe it gets a little rocky, to stay calm, as an investor, not overreact well, you are correct, scott. But at the same time, you know, a prudent sailor is going to look at the horizon and see, is there a squall coming . We are in a meltup the meltup wont last forever. I dont know how long it goes. I dont know what the catalyst is that knox it down all im saying is, and ill make this quick, if one of those bellwether stocks yeah, youre one to talk if one of those bellwether stocks broke, that would be a squall on the horizon that i would day pais attention to. So weve had those bellwether stocks break and the markets kept on chugging think about the disappointment, disappointment from amazon after the call where they whack it for 100 a share we all apple underperform substantially in 2014 2015 i think bigger picture, whats going on is less of a pence put and more of a quantity put one out of every four trades at this point is being done by a computer computers arent getting emotional about a headline coming from russia or whatever and if you think that the computer influence of the market is going to lessen over the next three years rather than become greater, i dont know where youre getting your information from so i think until theres a real reason to panic, you will continue to see volatility flare up and then the machines kick in and take advantage of that opportunity. And its happening faster and stronger youve got kushner testifying on the hill who cares thats my point does anybody who cares does the market care at all no. Because we all know whats going on yeah, i agree with mike i dont see a meltup that jim sees, i see more of an orderly progression going higher meltups to me are when youre up 1. 5 to 2 per day were going higher the fundamentals are grinding the reason why the quaunts are coming in, or buyers are coming in on the dips is that they want to own this market pause theres value. The most important thing that happened in the last few months, on june 9th, when the tech stocks really got hit, s p was flat, dow was up and small caps were up. You had a rotation into what is perceived to be the value areas of the market. Theyre sniffing out the better values of that moment now we have a more balanced market, which is a pillar of foundation its a good thing for the market whats your target for the end of this year is it a moving target or do you have an actual number . I never target like end of year my view the 2,700 target that we put out in april is a 12month forward target. I think it happens before the end of that 12 months, if its going to happen, because the fundamentals are just too good one thing we havent even talked about, a very Important Development is that the u. S. Dollar now is much weaker than anyone expected it at the beginning of the area, including us, by the way and its actually accelerating now, for good reasons. And theres facultial reasons we can talk about that is not baked into Company Guidance its not baked into analyst estimates. It could be a tremendous tail wind through the rest of this year the flip side of that is the euro is ripping. And if you take a look at whats happening in europe today, european stocks are getting ham terrified. Its why we have seema mody at the wall taking us through that story. Reporter thats right, european stocks closing sharply lower, hurt by the rapid appreciation in the euro, which you is trading at ayear high against the u. S. Dollar one day after that ecb policy meeting. Germany leaving the market lower as it houses the big exporters their products become less attractive when the currency stronger volkswagen, bmw, daimler all under pressure declines in spain with the ibex off more than 1 scott . Seema, thanks so much the europe trade in jeopardy remember when the u. S. Dollar had that rip everyone is like, this is going to have major implications for earnings and it did. The answer is very specific. Keep in mind, the indices over there is very heavily weighted towards industrials and towards banks. Theres no relation to our index, because they dont have tech, its like 3 so i would say it could offset that trade a little bit. Conversely, i think you should put more money into the multinationals here, because that may not go away there are lots of factors driving that and if draghi ever does come off the gas, if he ever does, youll see those banks fly up and youll see the u. S. Continue, the dollar to continue dropping. Lets just bring in our contributor, kevin oleary hes been long europe for months kevin, its good to see you. Great to be here. So when you see the dax down, you know, 2 or nearly that at one point today, closed better than that, but still down substantially, france down, spain down, europe ripping what does it do to your trade . Nothing keeps me long. Im still way ahead on all indices and all sectors in europe and i believe by the end of the year i will continue to be so. This is a bump in the road i want to remind everybody, when the fed pulled back on quantitative easing was the beginning of one of the best bull markets weve ever had. Im basically making the assumption sometime this year draghi gives the signal on a solid basis that his underlying economies are Strong Enough that he doesnt have to intervene anymore and i think europe will continue next year to outperform ill remind everybody else this, asia is outperforming europe so a lot of the markets that we consider to be risky, et cetera, are actually outperforming back to europe, cpi numbers, earnings numbers, Earnings Growth numbers, deleveraging of of balance sheets, way ahead of what weve got on the s p. So were trading 18 to 19 multiples and still feeling comfortable about it and i certainly have a majority of my holdings stateside, but frankly, Earnings Growth is way higher, in some cases, 15 to 20 higher than what were getting here and earnings are 20 or our p\e ratios are 20 less. The europe trade is still on and i continue to believe the automotive sector getting slaughtered because of the euro, but the underlying core reason for the movement is a great growth story and france is outgrowing us with entrepreneurs. Theyre deregulating faster. And this is france, the place that used to be practically a communist state is deregulating faster under the new administration with more Tech Startups we have per capita than the United States is kevin right . Aisim in the same trade with kech put it on last fall, then got overweight, asia relative to the u. S. Stocks. And i think thats the thing you have to get right this year. And its not necessarily a prediction, its just this idea that youve got seven years of massive outperformance in the s p. You have a double in the market over five years, nothing to show for europe and asia. That could go on for an eighth year or ninth year its historically not likely and it kicked in bigtime. There are now major markets like taiwan that really could be coming out of like 5 and 10year bases, breaking out for fresh money coming into these markets. And i really think youve got to stay with that so europe was so far behind, mike, that theres enough catchup, no matter what the currency does . Were worried about the u. S. Dollar ripping before. Now the ripping euro is not going to have a major impact on the trajectory of those markets . Over a sevenarea time frame, we do our Asset Allocation europe is clearly more attractive than the u. S. For the same reasons we discussed. Same thing for asia. But in the next 12 months, they can both participate the recent move in the euro is a sign of strength in the europe economy. The central bank is now moving more hawkish these are signs of strength, much like when the u. S. Was going through that same process in 13, its a positive signal so whats going on right now is everybody was long europe. They were short the euro, as sort of a hedge, right that was a terrible trade they only got half the benefit and theyve had to reverse that they had to cover their currency side this is a consolidation. Im very confident in the idea over the next couple of weeks, europe is going to actually regain that relative outlook the Global Investment community is coming around to this idea, im not going to say that Angela Merkel is the new leader of the free world theyre coming around to this idea, look what europe has just survived a lot of its selfinflicted, obviously. But what you saw them do with the italian banks shows the flexibility that is now necessary in order to keep the union together a year ago, that would have been verboten and it wouldnt have even been up for discussion. To your point on italy, italy, gdp didnt grow for ten years going into 07 the changes theyve made, fundamentally, to the economy there, to how that countrys run, means thats in much better shape they had no choice. Right all right were watching two big dow stocks closely today microsoft and ge both lower after earnings. But, as you know, theyve traded in very Different Directions over the past many months. Got us thinking about blue chips that have either gone from the outhouse to the penthouse or reverse. Pete najarian joins the conversation now from minneapolis. He owns both ge and microsoft. Kevin oleary i hope is still with us, as well pete, were looking at these stocks and focusing on a couple of names that are specifically in the news today. We go outhouse to penthouse and put microsoft in that area and in some respects, we put mcdonalds in that area over the last couple of years microsoft hit a low of 40 bucks and change in august of 2015 that stock is up 82 since mcdonalds hit a low of 91 in august of 2015 its up 69 since that date. Discuss those two. Well, i think, specifically, microsoft is the most interesting right now for me i own that stock why do i own that stock . Back in february of 2014, they made the exact decision they should have made, which was a transitional position that they were putting in with the new ceo, Satya Nadella he h