like tony dwyer says, maybe 5%? you think it's bigger than that? you think we're ripe for something to be -- worried about? >> i think the biggest risk for the market right now is continued weakness in ism and new orders. and that will lead to weaker eps, because the market's trading at levels where it's expecting hire e eps. and if that occurs markets will go down. >> you think we have a recession on the horizon? >> no. but i think we are not growing as fast as the monetary authorities would have expected. and so they're going to now start changing or tinkering with what they're doing, and that's going to cause more vol and likely lower stock prices. >> if the market goes down say 5%, that correction. do you take your 40% stock position and do you raise it? are you a buyer in that environment or still remain on the sidelines? >> depends on what causes it to go down. if it's fundamental economic weakness, no. but if it's just volatility based on fed changing -- >> fed-induced volatility? >> i'm comfortable with the fed normalizing policy. the probl

tony dwyer is joining us. >> the fundamentals have not changed. credit has been a good shape outside beginning of the year. when look at the national financial conditions, there is no real stress in the system. unless you have an in version of the yield curve, a possible fed fund rates by more than 2% or some stress ramping, you don't want to sell the market. it is hard to get aggressive on weakness as brazoss is talking about. if i am over weight going into these numbers, i recommend that you cut back to neutral position so you can get aggressive again >> you are waiting on good news on the job front, meaning a september hike in your view? >> no, i don't think so. if they could, we are so good at predicting it. >> so if you are waiting for some sort of a pull back, what will be the catalyst for that if you don't think there is going to be a hike? >> until they actually happen and everybody down 3% find a fundamental reasons for it. it could be ebola or taper tantrum. >> 2013, low volatility and the vix had been done for a long time and the market

. >> as we've heard from others, tony dwyer who was with us, looking for maybe 5% pullback and then it becomes attractive. big money managers out there are looking for the same kind of thing so they can actually get money to work. thanks foreign coming out here. >> thank you. >> head of u.s. equity strategy. here's what's coming up on the halftime report. >> apple picking up steam. the stock is up big since monday. still time to plug in? carl icahn making headlines at dlirg alpha. >> let's not confuse stock market and the economy. i know maybe you don't want to hear this, but, you know, stocks can go down. >> carl icahn hitting the markets, the fed, politics, and, of course, the herbal life trade. before the break, if you think higher interest rates mean a drop for stocks, check this out. our partners at kensho show when ten-year kreelds yields rise above 2% in the same month, the s&p 500 rose 10% on average. semiconductors, materials, energy, and industrials were top performers. for more on that, go to cnbc.com/pro. more "halftime" with scott wapner in two minutes. builds an appliance

tony dwyer is going to explain why he thinks a good jobs report could mean bad news for the market and 5:00 p.m. eastern. >>> venezuela is in dire economic straits. people have taken to the streets today to pressure authorities to allow a vote to cast -- that could oust president madero. many journalists expelled or barred from the country ahead of the protests and speaking with a "wall street journal" reporter on the ground in caracas. >>> and wells fargo and amazon called off the loan partnership announced six weeks ago. why it ended and how it affects both companies is later. you're watching cnbc. today sarah's class is reading my most celebrated work, hamlet. again with tooth pain. e shs ssing out on the rich classroodiscussion and catchi up on sociamea inead. #notcool. #remedialrdi. #ohlooktheregoesyourgpa. surisingly, kids with or al health e three times more kely to miss schoo >>> welcome back. economic slide in venezuela bringing out thousands of people to the streets of caracas today to protest the nation's government. the day dubbed the takeover of caracas is aiming to put pr