it's like deja vu. another showdown over the spending bill. thank you, emily which will ki wilkins, keep us posted. it's been a strong week. the fed gave a green light. that's been the story. what are you watching next week? you're watching vacation. david is out next week. i'll be watching pce and gdp. that's it for us. have a great weekend. over to frank holland and "the halftime report." >> thanks very much, sara and david. welcome to "the halftime report." i am frank holland in for the judge scott wapner. front and center this hour, riding the record rally, the dow and the s&p, they get ready to close their best weeks of the year. the question now, how high can we go? joining me now to answer this question and much, much more, today's investment committee joe terranova, liz young, jim lebenthal all here at post 9. steve weiss joining us remotely. first let's get a quick check of the markets. of course we have the record closes yesterday. now the market is under a bit of pressure. the dow down just about 175 points. the s&p down fractionally. the nasdaq holding on to just a

few gains, up fractionally right now. i think that's where we have to start, joe. is this the beginning of a pullback that so many people have started to become worried about seeing the markets pull back, some type of correction, or is this a blip, a little bit of profit taking? it is a friday and maybe people are just calling it a day. >> i'm not going to go down that road again. i went down that road in early february, and i was wrong. i'm not going to sit and predict a correction. look, i think what is well known throughout the entire financial services industry is the market is in need of a correction, clearly. now, if a correction unfolds, i think the immediate investor reaction to that is to pivot into investment grade, high yield emerging market debt. why? because if the correction unfolds, i think it's going to be a response to some of the concerns surrounding the

consumer names that we're seeing today, a little bit of a moderation in the consumer spending, and, therefore, i think you'll see treasury yields begin to move lower. you get the price appreciation and taxable fixed income. i keep my eye on emerging market and high yield. >> we're going to talk more about retail in a bit. there is a growing chorus of people asking for a correction. they say aggregate tactical indicators are at extreme levels where the market normally falls, they say modestly. looking at upper positioning, calling it abnormally optimistic and will be stickier inflation or peak gdp growth optimism that causes the pullback. liz young, agree? disagree? >> usually a correction happens when everybody is on the wrong side of the trade, and you end up with this pullback that starts to feel much more dramatic because nobody was positioned for it. it happens in the opposite direction, too. it happened in 2023. nobody was positioned for tech

to run like it did even after the svb thing happened. nobody was positioned for that rally, and then it was almost painful to watch it happen because we were trying to figure out what was going on. a correction happens in the same way. so if everybody is on the side of this bull market will continue completely unencumbered, then a correction seems more likely. i think it's healthy. a modest pullback between 5% and 10% and be even more specific, 7% to 8%, would give people a little entry point, a buying opportunity,some of those names. if risk appetite stays as strong and healthy as it's been, i think you see people come in as soon as a correction reaches that level and take it back up. at this point there hasn't been data. there hasn't been news that would tell the market a correction needs to turn into something more dramatic. until that happens, i think it still chubs along in a sideways fashion. >> all systems go after the fed meeting and jay powell, again, saying there would be three rate

cuts this year. jim, i want to come over to you, the other side of the coin. upward bias likely to persist. the reiteration of monetary easing plans, despite expect aces of a hotter macro backdrop probably just usher in a new risk on trading. >> i don't know mr. harvey's time frame, and certainly one can say, and i will say i think there will be gains from here until year end, but i think that misses the point of what joe and liz are talking about which is -- and i agree with this -- the correction seems inevitable. joe is wise not to pick the timing. i won't either. i think liz comes up with some valid reasons for how a correction might unfold. but here is the most important thing. and i want to pause here. folks, this is the most important thing about a correction. don't you dare try to time it. don't you dare think you're smart enough to sell now because a correction is happening monday and you're going to get back in two weeks later with the market down 5% or 7%. i'm not trying to be insulting

to anyone listening at home. i'm trying to be helpful history is littered with professional and retail investors who have tried to time market corrections, and find themselves in and out of the market at the absolute wrong time. and if you want to feel absolutely horrible about yourself as a person and an investor, try chasing a rising market when you're not invested. it feels terrible. it feels terrible. i'm speaking demonstrably. we'll get to steve in a minute. joe and liz know. >> do we have to? >> i love you, steve. >> i don't even think we'll get a full 10% correction. i think the rally the last year and a half has people getting back into fomo -- i hear you on bonds -- still, when it goes down, fomo will kick in on stocks, not bonds. that's my call. >> we'll go over to steve weiss. you heard the different arguments here. what's your take on what we're seeing? are we seeing buyer's fatigue? >> actually the only thing i

recall hearing was joe's comments. we can talk about corrections and how the vix, every time it hits a new low or close to a new low, the market gets a little nervous and it sells off. and that, yes, over a period of time in the market, do you have corrections. this market seems to be more volatile in terms of single names and what the vix is saying. but even if i told you there's going to be a correction of 5% to 10% on wednesday, what are you going to do about it? sure a sophisticated investor may short the qs, may buy puts, whatever. are you going to sell your stocks that generally have big gains and pay those taxes for a decline of 5% or 10%? what i would advise is stay the course. stay in the names that fundamentally look attractive. if they don't look attractive at the levels they're at now, then sell and look to put it somewhere else.

to try and time a correction as jim points out is ludicrous because there's nothing you're going to do about it anyway. the market trend will be up. what's a put call ratio? is this survey too bullish? that stuff is just noise, gives us something to talk about on cnbc. whereas the realty of running money, that's not how you manage it. >> those are great thoughts from steve. if we could, could we throw up a chart of nvidia, because i would be very surprised if the market was going to have a correction and nvidia would do what it's doing. 941 as we speak. this is the highest level since we had that reversal on friday, march 8, from the 975 level. i don't know. i'm hard-pressed to believe a significant correction unfolds. nvidia looking like it wants to

challenge the all-time high. >> weiss, you recently bought more nvidia, right? >> i did. on one day, right after jensen huang spoke at that long conference, that long presentation speech, the stock traded off in the afternoon. it traded up meaningfully. you're talking about 20 points on an 800, $900 stock. on a percentage basis, it's nothing. then it traded down -- i think traded down about 35 the next day. it's still a relatively small position. again, you've got to take what the market gives you, and not try pressing. i'm happy with my positioning. i still have cash overall in the market, and i'm there to buy other sales. >> speaking of positioning, a member of the investment committee is putting in some

portfolio protection. bill baruch of blueline capital, bill, you were just here with us yesterday. you jumped on a plane and started getting concerned about a pullback, it looks like. >> i think everybody can agree and everybody has really said this now, there's some exhaustion in the market. now we just got out of the fed meeting -- and i like how mike santoli said it yesterday, that the market had this afterglow. it had some good followthrough. it's very rare to see a big move up like we had post fed that then follows through and stays up there. i expect a little bit of volatility. the market did take on the whole narrative from the fed as leaving the three dots there. we may see a hawkish tone when they talk in the coming weeks. i'm taking a cautious approach. really starting here now with half a percent of the entire portfolio, i bought spy puts. these are end of month may 500 strike. and it gives me a little bit of a cushion if this starts to pull

back. i like to start it here. the important thing is, jim just said it, steve said it, it's very hard to time a correction. and i don't want to time a correction and sell your stocks. so i start with a cushion here. it's my way to really navigate what we could see in the coming weeks or months. >> bill, i know you say you can't time a correction, but you are looking at some things in the currency market leading you to make thisdown side protection move right now, the dollar up about 3% year to date, up about half a percent since the fed meeting. why is that so concerning to you? >> the dollar has a very inverse correlation to the equity market, and coming out of the fed meeting, we've seen dollar strength. what is the dollar getting paired against? we've seen the yjapanese yen weaken. we have seen the euro heavy. the british pound has taken a leg lower after their meeting yesterday. the chinese yuan got pretty unhinged last night. if there's going to be some

ripples through the currency market, you'd better believe it's going to be showing here in the s&p with a little bit of a pullback at minimum. >> all right, bill baruch with down side protection. bill, thank you very much. i want to toss it back -- >> frank, can i add one thing? we're basically in an information vacuum. we have some economic data next week, but then we get into earnings. bill's protections will take him through the beginning of the earnings season, probably not the heart of it. and if you see a catalyst for the down side, that's where it will become apparent. i personally don't think that will be it. companies have gotten smarter about guiding. i think we'll be fine, but that potentially is the catalyst to take it down. >> weiss says earnings season could be a catalyst. joe, i see you nodding. >> could be. the expectation for calendar q-1 2024 earnings is you'll see growth of 3.5%. that's down. that's been revised lower since the beginning of the year where

the estimate was coming in at 5.7%. profit margins look still to be strong at around 11.5%. so i think we're in a good place in earnings. i feel as though the worst has passed. we went through the earnings recession from q-4 of 2022 through q-2 of 2023. the nasdaq was the first index to come out of it. the s&p followed. the russell still technically in an earnings recession. but i think from an earnings perspective, we're in a decent enough place where margins are the story, they're strong enough to give investors confidence to continue to be allocating in that direction. >> yeah, i'm going to tease into that retail conversation. we'll be talking margins in that retail conversation coming up. liz, i want to come over to you. we've seen recent outperformance of value over growth. do you see that changing? is now the time to allocate towards growth? >> well, first of all, to follow up on the earnings conversation, i think the first quarter reports, as long as nothing bad happens, as long as there aren't any big disappointments, i don't think it will be that big of a

deal. it's expected to be the most muted quarter at 3.5%. q2, 9%. if we can pull that off, that's a reason to get more bullish as the year goes on. i think q1 might be a nothing burger, so to speak. back to the conversation about value and what's happened in the last month or so, it's all about a rotation. we came into the year feeling like some of these trades, the growth trades, were already overcrowded. then they got even more overcrowded and continued to go on. and investors who are in those names, i think rightfully have stayed in those names, but it was very difficult to convince yourself that it was a good entry point. so then money that is looking for a place to go is naturally going to look at the places that are undervalued or at least relatively undervalued to things that have run up so much, and, add to that, surprisingly strong

gdp numbers and a fed that says, we don't need to cut because everything is pretty good. the labor market is still strong. and you see this resurgence of the cyclical trade. cyclicals are value sectors. a lot has to do with the rotation. one of the things that's important that i think people should pay attention to is that the rally as we came into the year, when you look at small caps and the run-up in small caps, a lot was driven by small caps growth, not usually the behavior that happens mid cycle. now we're seeing small cap values start to take part. that's a good sign for risk appetite. >> can i jump in? >> to liz's point, energy the best performing sector followed by materials and industrials. the cyclical names showing some leadership. jim, over to you. >> well said. rotation. and when i hear that word, rotation, what i wonder, is this just sentiment driven or something fundamentally based? people who watch the show and certainly my colleagues to the right of me, know that i am a

value investor, and i've been preaching for quite some time, for basically two years, the stocks, financials, energy, are undervalued, that there are fundamental reasons to own them. as we go into the first quarter earnings season, what i'm questioning is whether this rotation is just a fad, if it's just sentiment, if people got tired with the mag seven and now they're going to try on the cyclicals, the value stocks, or if there will be real legs to it. now i happen to believe, and with every stock, i don't care if it's citigroup or general motors or qualcomm, the fundamental reason it is there. is this rotation just sentiment driven? is it a fad or is there fundamental basis? i'm looking, liz, to the first quarter to get support on the fundamental call i'm making, that general motors is selling a lot of good cars and has it at a good profit level, that citigroup is seizing growth that it can buy back shares meaningfully. i can go down a long list through the sectors we're talking about, financials, industrials, energy, materials.

the first quarter is a proving ground. >> you're saying it's a proving ground. you're leaning on the fundamentals. to the sentiment, isn't alot of it based on the idea we're going to get rate cuts this year, probably three? i was speaking to the chief investment strategist of kkr, paula campbell roberts. she was saying even after the fed meeting, there are only going to be be two rate cuts. how important is the actual number of the rate cuts to the sentiment and part of this rally we're seeing? >> it depends on what the reason for the rate cuts are. remember, we walked into this year with the market expecting six rate cuts. we all on the desk knew, every single one of us said, listen, if you're getting six rate cuts, that's not good for the stock market. i can make the counter argument, what if we get two? what if we get none? one of the most vociferous is saying we get no rate cuts this year. that would be on the back of, presumably, better economic growth. we can't rule out stagflation. but it's conceivable up get no

rate cuts or two rate cuts because the economy is going gangb gangbusters. what should do well in that environment, not just cyclicals but the small caps liz mentioned. small caps, and i see frank smiling -- i don't know if we can see that on camera -- are laboring under the presumption their financing costs are too high. that's something we have to fight against. but if the economy is going gangbusters, that might be enough to power the small caps through those higher financing costs. >> a lot of calls about small caps rallying, could be up 50% this year. i think for the year they're up maybe 3%. i mean, so a 47% gain -- >> 2.5%. >> a 47%, 46% gain, it seems unlikely, but tell me if i'm wrong, liz, even with three cuts, does that seem like a likely scenario to see small caps go up more than 40%? >> no. that doesn't seem likely in any calendar year. stuff that hasn't happened

before happens all the time. coming from somebody who loves it when small caps outperform, but what we need from the economy is to really figure out where we are in the cycle. and anybody who watches this show or other shows that i'm on is tired of hearing me say that, but i continue to think there is a huge debate between are we early to mid cycle expansion, or are we late cycle euphoria? to jim's point, if there isn't fundamental strength that backs up some of this rotation, we're late cycle euphoria and that's that. the issue here is that this cycle is becoming one of the longest that we've ever experienced, and we're starting to hit new records. we've got now the longest yield curve inversion ever. if the fed makes it to the november meeting without cutting, it will be the longest pause between the last hike and the last cut, so we make these new records. we're at a point we're knocking on the doorstep of the longest period of time when the s&p hasn't had a 2% correction in a day. so this cycle is just elongated further and further, and that

could be the thing that eventually, if it does turn, will be, see, we were late cycle, this argument rages on. >> if you really believe that regional -- if small caps will rally, regional banks are the obvious proxy and you buy the regional banks. >> they are outperforming since the fed meeting,a small sample size but they are outperforming. we want to get to something that definitely is working. our "chart of the day" is fedex. after beating earnings and announcing a share buyback. there was a lot of hand wringing -- i will do some for the people watching on mute -- a lot of consternation about this one. jim, you're laughing. what were your expectations? how surprised about fedex doing this well today? >> look, i'm happy. i'm happy to the conversation we're just having, right? you want fedex to do well. and the hand wringing i was laughing because that's the right approach. people have learned to be

disappointed so it's understandable. it's a good report. i'm not in the stock, folks, but you want to see a company like this do well. >> you want to see it do well s. it doing a bit too well? it missed on revenue and did beat on eps, hinging on the express results, beat on margin. revenue in line. it's declining revenue in that business. >> yeah, let's take this two ways. the stock is doing well, and that's separate from the company of doing well. so jim's view is you want to see it do well, i'd rather see the fundamentals do better than they are. you still have down revenues. you still have negative year-over-year comparisons in the majority of their businesses, i believe. the fact the stock is trading up as it is based on a bottom line beat and a top line miss and, albeit good guidance on the bottom line, means it's a margin

story. it's not an economic growth story. so i just think these parabolic moves are not great for the market. that's eventually what might cook it. the stock is moving up and down 20% on one earnings report that really don't go and destroy or significantly buttress, it doesn't make any sense. >> one question for you, steve, isn't this a sign there are cost-cutting efforts, the results we saw, while they weren't amazing, the fact they were able to lift the bottom end of guidance, isn't that a sign, and the share buyback as well, a sign it is working? a pretty good read on the economy in many ways. >> yes, steve. >> yes, but, there again -- there again -- it's the margins. they're cutting costs. it's not growing the business. it's not growing the packages. if you take a look at last quarter, which was a really bad quarter, right, in terms of the market reaction, we've recovered that loss. that's what i mean about the

volatility in the stock price. look, you have relatively new ceo there. he's been there for basically a drink of water. give him some time to get it straight and then we'll see if volumes pick up. they have to add back to it. will they be caught short? that's the mystery here. the stock is not compellingly cheap, by the way, at this multiple, but that's where it should be for this kind of cyclical stock. >> cost efficiency can only go so far. i mean, this company is not meta where they have instagram and other levers of growth to pull. the company can affect the buyback but, there after, you need to see organic growth. >> fedex shares up over 7% right now. up next, the state of retail. lululemon and nike under some pressure. courtney reagan breaks it all down, and the committee debates the space. "halftime" back in just two minutes. >> announcer: are you following "the halftime report" podcast? what are you waiting for?

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visit xfinitymobile.com today to learn more. we're back on "the halftime report." retail under some pressure. big drops from both lululemon and nike. courtney reagan is following the moves. courtney? hi, frank. lululemon put up a strong holiday quarter with strong sales and expanding margins, but it's overshadowed by the forward looking guidance. on the top of the earnings call,

though, the ceo said, quote, there has been a shift in the u.s. consumer behavior of late and we're navigating what has been a slower start to the year in this market. most analysts look at the stock price weakness as a buying opportunity here, and they're looking at the guidance as conservative, they're not overly concerned about losing shares like some of the other upstarts. nike, too, though, outperformed for the quarter and issued disappointing guidance. nike has been going through a turnaround effort for some time leaving and a lists mixed on expectations. executives talking less and direct-to-consumer selling and more channel agnostic which includes leaning in with some of the wholesale partners. the nike story might be a little bit different from lululemon, but we haven't really heard any weakness or potential weakness from lululemon in quite some time, which might be a little bit of a shock to the street and part of the reason, again, for that downward pressure today.

>> a lot of downward pressure for lululemon, shares down double digits. courtney, thank you very much. joe, we'll come over to you. you own lululemon in the joet etf. what are your thoughts about the quarter and then about the thoughts about some of the speculation that, you know, the high-end consumer may be getting tired, may be getting worn out? >> i think you have to try and simplify this conversation the best you possibly can if you own lululemon and extension if you own nike because you have to be careful being very complicated in saying, okay, this is a larger readthrough on the overall state of the consumer. yes from a fundamental standpoint you have the first quarter for lululemon where you sit back and say, okay, i have disappointment. i have disappointment because they delivered -- they delivered on the earnings, but they really didn't deliver in terms of what their guidance might be. they see something that they're somewhat concerned about should

that make me concerned? i'll say this. this is a company that has in the past disappointed in that regard and quickly recovered. so be very careful dismissing lululemon not to recover quickly. with that being said technically you have a breakdown. the stock is below the 200 intraday moving average. in the case of nike you have a little bit of the opposite where the technical condition was already negative to begin with, and then you get the fundamental story. how do you resolve all of that? look at lululemon and say, okay, technically i have a little bit of a breakdown, fundamentally i see something that will resolve itself. where is positioning? go back to ositioning. positioning is pretty long. i think it's well understood that speculators are long lululemon right now, and i think that portends further weakness.

>> you have a take on lululemon as well, jim? >> any block that concerns fashion, in terms of lululemon, expectations are very high. the stock is still expensive. i would like to buy it. they have a unique brand there and they do have a lock in the market. lulu is much more. nike specifically, this is more interesting to me. this is another sign that the chinese population, the consumer, is having sort of their day of reckoning with u.s. brands. so if you take a look, tesla is down. nike is down. you can talk to others that are down. that's a real issue. i think it's just the beginning of it. what went from everybody has to be in china, everybody has to be in china, to now the reverse. the chinese government is supporting local brands and unsupporting the lining of u.s.

brands. i don't know how they get out of that. >> nike shares down 7%. it's time now for the headlines with bertha coombs. good afternoon. good to see you. hi, frank. russia has warned the european union that there could be, quote, catastrophic consequences should the eu continue its plans to seize frozen russian assets held in russian banks. it comes after the eu agreed to move ahead on a proposal to take up to $3.2 billion a year of revenues from those assets to supply arms to ukraine. state farm is dropping coverage for more than 70,000 homes and apartments in california. starting this summer. the move comes after the insurance giant announced it would not write any new policies in the state, the largers insurer in california. it cites soaring costs, the increasing risk of catastrophes like wildfires and outdated

regulations as reasons for not renewing coverage and remaining a good neighbor, i guess. tennessee, the home of country music capital nashville, just passed a new law to protect people in the music industry from artificial intelligence. the law, called the elvis act, will ensure a.i. tools cannot replicate an artist's voice without consent. the first in the nation state law takes effect on july 1st. makes sense that it would be nashville. back over to you, frank. >> bertha, thank you very much. have a great weekend. coming up next, dom chu details the best sector and the committee debates how to play it. "halftime" right after this. more efficiency. more benefits. more growth. when you realize you can give your people everything, and more. thank you very much. [applause] ask, "now what?" here's what. you go with prudential to protect, empower and grow.

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work with principal so we can help you help ron with a retirement and benefits plan that's right for him. let our expertise round out yours. and we're back on "halftime." communication services is on the move. our dom chu is standing by with today's sectornomics. the fifth biggest sector, which is communications services. it's about 9% of the weighting of the s&p. if you look at the forward valuations from a price-to-earnings perspective right now, we are trading just about in line with where the sector normally trades on average the past three years. according to data from

statistics and analytics firm, 17 times forward earnings, that's just about in line with where it's been the last three years. if you look at some of the stocks trending dedeepest discounts or premiums to respective valuations on the same three-year basis, that shows something interesting with regard to where we are seeing the biggest discrepancies. if you look at this, for instance, take a look at some of the stocks now that trade at the biggest premium or discount. if you look at those, and i'll try to bring them up right now, on the communication services side on the forward p/e basis, if you look at the discounts there, match group on the last three years, trades at 32 times earnings, trading around 10 times, so a 68% discount. paramount global, 24 times earnings on average. nine times where it's at now and then t-mobile on an average basis at 14 times. and on the flip side, check out

meta platforms trading at 8% premium versus omnicom and at&t. for the past three years those are some of the biggest discrepancies, frank. back over to you. >> dom, thank you very much. we're going to stick with communication services. meta is the best perform stock year to date. joe, you own this one. >> a core holding overall in the joet etf. ticker symbol and live nation is another name we maintain ownership in doing well. alphabet, we're there, also, and then we have exposure to

electronic arts. >> communication services, the best performing sector year to date, liz, brian belski put out a note saying high-profile names, that outperformance will subside. it sounds like he's talking about this month's sectornomics with the entire sector being a strong performer. do you see it not fading but losing leadership going forward? >> well, i actually agree with him. he's usually quite bullish and i've been more cautious but love belski. i'm with him on this one. i think it's happening, high-profile names have come out of the forefront. if you look at the market by factors and you look at what drove the market from october through the end of last year, that momentum factor was the strongest driver, and then this year it sort of turned around. momentum no longer the strongest driver, quality, low volatility are driving, so you're going to see other names come into the forefront. meta is an example of something

that has continued to be in the forefront so that may be more of an exception not the rule. i do think as we go forward and the rotation continues, you will see some of the names that have not been talked about become more popular. >> netflix heading for its sixth straight month of gains. weiss? >> you can never own enough. netflix i think is the winner. you have companies like amazon with their prime, which has clearly cut back under jassy on the content. then you have the others, the standalone services that are attached to -- when i say standalone, attached to studio or something like disney or paramount, and they're cutting back. it's expensive to run online service, streaming service. nike has the best pricing power and the price continues to go

up. we've seen them all raise it. you will have to make choices. guess which one you will not give up. netflix. analysts are jumping over themselves to raise the price target as they are in the market, in nvidia, in anything that works. but i'm staying there for now. ultimately it is the winner. >> netflix shares higher today, doubling over the last year. coming up next, mike santoli joins us right here at post 9 with his "midday word" as the major averages are tracking. much more back after this.

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senior markets commentator mike santoli joining us with his "midday word." what are we seeing right now? >> i think we're seeing a well-deserved rest. the market is kind of stepping back and observing its work and likes what it sees. i think the big question, we kind of got all you would have wanted out of the three major known catalysts this week, the fed, the nvidia and all the rest of it and now everyone knows fully valued market, everyone has embraced the scenario. the market is acting well, very broad, a lot of new highs yesterday. the next source of energy might come from and in which direction. i think that's where we are. next week we get this pc inflation number at the end of the week. the market is in the mode of it's been a lot of gains in the first quarter of the year and how does that set us up for the next little bit. i do sense a little bit of rebalancing out of equities into fixed income only around the

edges. it makes sense here. >> a little bit tongue-in-cheek, what do you think of small caps? every day people come on and say it's the year for small cams. tom lee saying they're going to rise 15%. they were up under 3% so far. >> i don't assign any special powers to small caps in terms of telling us what theeconomy is doing or anything like that. i did run the math, though, on tom lee's call. if we go up 50% in the russell 2000 this year, at the end of this year, the five-year return for the russell would be like 12% annualized. my point is, that's just mean reversion, getting you back to a normal spot if we're in a bull market. so i'm not saying it's plausible or likely. my point is there is catch-up to be had under the right circumstances, but it's also okay to ignore. if the rest of the market is okay. >> mike, i know you have an alarm clock. we might have to book you for a bull/bear debate on "worldwide

exchange." a handful of names on some big runs. the committee debates the nns nt.wierupex

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♪ and we are back on "halftime." energy the best performing sector so far this month. joe, you own diamondback trying for its 14th straight day of gains. we'll start there. energy, do you see this leadership continuing? >> first of all, i'm very fearful of this segment, because we're identifying stocks that are on a significant winning streak, which means you know what's coming next. it's going to be a losing streak. mean reversion always happens. in the case of diamondback, this is a company that recent lip announced a $26 billion acquisition endeavor. it strengthens their position in

the permian and defends against remaining independent. this is one, in my opinion, the strongest fundamental companies you could own. i would advise the viewers on any pullback to add to the ownership of ticker symbol fang, a strong performance year to date. buy it on a correction for sure. >> i don't want to jinx you. another stock in the joet etf, valero. >> up significantly year to date. up 31%. that rivals marathon petroleum up equally that amount over the last year is up more than that. both names are owned in the joet etf. fundamentally gasoline is the strongest product of the energy complex so far year to date and the last three months, and that's driving a lot of the performance technically overbought. i will absolutely acknowledge

that. from a sentiment and position perspective, the analyst community on both valero and mpc have price targets well below current price, and that's looking 12 months out, so the street is suspicious about the rally that we've witnessed here, the only negative only negatives is these stocks are technically overbought. >> ww granger and quanta services. >> quanta services has exposures to utilities, consumer and electricity -- electrical spending, excuse me. they have very strong pricing power. ww granger, they are just basically everywhere in the industrial space. again, strong balance sheet, quality company, built up some strong momentum over the past year. >> we have been talking about these sectors showing leadership over the last month or so. >> energy had a tough 2023, especially compared to what

happened in all the other sectors. and you've seen this steady climb higher in oil prices this year. also, if you look at energy stocks and you're play thing rotation in the cyclicals, energy is the poster child for that right now. if you are expecting demand to go up, and we have energy stocks that play a healthy dividend in some places. on the heels of, we finished the hiking cycle, expecting cuts at some point this year. differenvidend stocks might be e place to be. coming up, another winner, aerospace, how the commit i is playing it. that's next on "halftime." >> to me, a changemaker sees an opportunity to make things better. i've also been told that for real change, you have to accept that it doesn't have to be perfect, but don't let perfection be the enemy of the good. and i remind myself that life is fleeting, and when you get the chance to affect change, you

should move with real urgency. [alarm beeping] amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. why not? did you forget something? my protein shake. the future isn't scary, not investing in it is. you're so dramatic amelia. bye jen. 100 innovative companies, one etf. before investing, carefully read and consider fund investment objectives, risks, charges expenses and more in prospectus at invesco.com.

we're back. take a look at another big winner, and the etf tracks aerospace and defense. jim, i'm going to come to you on this one. again, an all-time high led by boeing today. >> boeing is not hitting an all-time high. i don't like the words about to

come out of my mouth -- >> don't say it. >> i think boeing has a very long-term big problem here. i would not touch the stock here. i sold it the monday after the alaska airlines fiasco. there's talk that it's up today because major airline executives are going to talk to the board of directors at boeing. what on earth is that going to do? just hold on, weiss. there's no need to interrupt there. i'm making a point. calhoun's not the problem, he's not the solution. neither was stone cipher. there's a long list of ceos who have not turned around the culture that got decimated by the mcdonald douglas acquisition. these are not the guys that can go down to the production line and put the bolts on the air plug that blew out on the alaska airlines. the faa is no friend of boeing right now. they're going to be slow walking any production increases, slow walking any new model certifications. production is going down, cash

flow profits are going to be crimped aall this. sorry, i don't like anything i'm saying, but it's how i feel. >> might as well leaving it there. boeing shares are up 1% right now. stay with us. "final trades" are coming up on "halftime." ♪ ♪ this is not just another e-class. because it evolves with you. it adapts to you. engineering. it is the first e-class made just for you. for you. for you. this is not just design because your e-class... it adapts to you. it recognizes you. understands you. empowers you. energizes you. feels you. it evolves with you. the new e-class. ♪ ♪ (grunting) at morgan stanley, old school hard work meets bold new thinking. (laughter)

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these guys are intense. we got nothing to worry about. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free. time for "final trades." weiss, you are first. >> yeah. so i just bought a little boeing, because i heard jimmy's emotional outburst. the bottom line is, culture starts at the top, and calhoun has been the culture carry here for well over a decade when he was share of the board and a board member. so i better not hear jimmy ever talk about a ceo of cliffs or anything, because apparently he doesn't tmake it.

>> jim, you're up next. >> pacific gas and electric. a little defensive play if we're all talking about corrections. >> liz? >> commodity etf that has 50% in treasuries, so you get both sides. >> jim snmplt >> nvidia is finally comfortable with prices above $925. >> that's going to do it for us. "the exchange" starts right now. ♪ ♪ thank you very much. welcome to "the exchange." i'm tyler mathisen in for kelly evans. here's what's ahead. not a bubble but bubbling. that's how one of our guests describes today's market. but that doesn't mean you can't still find sof bargains. he's looking for them. plus, shares of tesla down more than 30% this year. should you by the dip or steer clear as the ev winter continues? and elizabeth warren once again goes after the company. it's been a big week for the builder stocks, but our analyst brings a surprise name not in that secto