josh brown? >> today's report is literally nothing not to like. revenue smashed expectations. they went higher on earnings. the second quarter beat is skewed. i think you have to keep in mind with j and j all of the news is good but it's very expensive. 15% premium to the peer group and probably doesn't have a much higher growth rate. if i'm a holder we picked up the xlv. which gives us exposure. >> doesn't it turn anybody that they're talking about cutting back on hospitals when it comes to adopting new devices and procedures? >> the beauty is that they've got three distinct business units. weakness in any one of them can be offset. >> when they bought pfizer's consumer products business they became effectively a consumer branch business. if you look at them compared to proctor and gamble they're cheap. >> what is the company? >> i sort of still like it though. >> stock is breaking 90. ten to dribble up to 100. it's not the kind of thing where you have to say it's so expensive, sell it. bear in

josh brown, markets getting the message? >> the market is getting the message. this is what we talked about for weeks on end. at first the taper sounds scary and then people realize the only way it happens is if things are improving. then the narrative shifts. it means things are getting better, means i'm more comfortable with the stock portfolio. you still have the vast majority of professionals and retail underinvested. the average strategist on the street has bumped up their allocations to equities but only in a minor way. still under 50%. kind of embarrassing at this point. hedge funds are chasing. they're using the small caps with leverage. you can see it everywhere. >> russell is hitting a new high. >> that's how you catch the s&p. >> up nine of ten. you mentioned the stock portfolio. a stock portfolio right now filled with what? if the market, murph, is getting the message, what do you want to be buying right here? >> first of all, you want to be in the financials. we've talked about it for a long time now. we know at some point rates are going to go high

josh brown we kick it off with you. first four day winning streak since april. s&p closing above 1650 significant. >> every sector is participating and most importantly the sectors that you want to see leading the charge given that this market is predicated on the possibility of expanding the economy, you want to see that type of risk appetite. you don't want to see it in utilities which is what we saw for the first quarters. until that changes and shows signs of weakness i have no idea why people are trying to call tops every 15 minutes. it's just not working. >> brian kelly, you're not a believer in the rally. you're not buying stocks. >> 0 no. i understand i josh is saying but a lot of things in the world could bring the market down. if i look at stocks they're not particularly cheap, not particularly expensive. when i see a headline that says bigger breakout to come the trader in me wants to short that. i'm not shorting the market right now. >> it's been the wrong side to be on. >> we did have the pull back. >> what would you invest in if you had ten plus ye

guy adami, josh brown, and tim seymour. more details on developing story out of boeing tonight. phil lebeau has got the latest on the story. phil? >> reporter: melissa, right now investigators are looking at that dreamliner trying to determine the origin of the fire that took place today. let's show you a couple of pieces of video from that scene today. it was an ethiopian airways dreamliner that caught fire. there were no passengers onboard when it was discovered. it had been parked eight hours before the fire was discovered. what's interesting, when you zoom in in terms of where the fire took place on the airplane it appears to be in the rear crown of the plane. that's right next to where you would see a crew rest area if one was -- it's unclear whether or not this plane was configured for a crew rest area. the fire crews did not appear to deal with the 787 battery units. those are located in the belly of the airplane. remember, this is the dreamliner that was the first to receive a retrofitted battery system once the faa approved the new battery system for the dream liner. bo

. >> dan, it's josh brown. given the fact that the nikkei has been leading the u.s. markets to some extent, and they're all kind of seen as this play on central banks, as ridiculous as that sounds, now that we've got some strength there, is it possible that the u.s. can follow that higher this summer, or is it going to kind of be a little bit more independent on its own data? >> i think it's its own story. i mean, we know that we have the elections on july 21st. i think we've been one of those people who have taken a broader view of the japanese equity market and the economy. and we think that if they get this right, there is reason to believe in the short-term that things could be up. i don't necessarily think that at least btig's clients are necessarily more optimistic about u.s. equities because of what's happening in the nikkei. >> dan, you like several of the cyclical sectors. do you think that these companies are going to be able to deliver on earnings? and more importantly, on earnings guidance going forward? is it going to be -- are they going to say good eno

but maybe europe finally turning. >> tom, it's josh brown. i'm in agreement with you on the cyclical trade. it's an idea we've gone to add to especially relative to the stapps. i'm curious, i think there's a huge misconception about how much of the earnings these companies in the u.s. derive from overseas. how important is it to them that china stops the economic fall? how important is europe to the u.s. cyclical stocks, especially the large companies? >> yeah. well, it's true, josh, because, you know, when people do the numbers, they see there's huge, huge exposure of cyclical companies to earnings from both emerging markets and from europe around for tech, for instance, it's well, well over 50%. but on the other hand, we have to remember cyclical companies generate earnings wherever global growth taking place. if the u.s. begins to surprise, u.s. share of profit generation will go up, and, of course, if europe is turning, it's that second derivative that's important. instead of become a drag, europe may become a tailwind. >> tom, it's good

josh brown, art hogan. stick around, we have a lot more work to do because now the herbalife battle got got a lot more interesting today. a lot more personal. george soros entered into carl icahn and bill ackman's fight. soros is making a huge bet on this one. we have that story up is next on "kudlow." in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. >>> i appreciate, bill, that you called me a great investor. i thank you for that. unfortunately, i can't say the same for you. >> icahn never one to shy away there from a good fight. the stock of herbalife has rocketed higher. now up nearly 100% so far this year, larry. >> up

josh brown joins us on the phone. josh, how are you trading europe right now? >> i want to say i miss you guys in person but i'll try to get through -- >> we miss having you here as well. >> we put on an index in june and we'll be adding to it. vgk is the ticker symbol. thor name i'll throw out is vss.this is an international small cap fund. vgk is the large caps. it's 400 names all over europe from the uk, spain, germany, france. everyone i know, everyone on the street is underweight. most people are engaging in what buffett calls first level thinking. you do a little bit of second level thinking, you will see dirt cheap valuations, very poor sentiment and the opportunity to make a lot more money as sentiment comes around. if you look at the u.s. rally going back to 2010, most of it was an improvement in sentiment. we didn't have huge earnings growth but we had a multiple that went from 11 to 16 times earnings. europe right now is trading at 0 10.5 times estimates. the european economy is, i don't know, 760 million people. it's about a trillion dollars bigger

we're trading the action with josh brown, stephanie link, simon baker, joe terranova. josh, this all hinges on bernanke tomorrow, doesn't it? >> i have to disagree. i think what the market is telling you, first of all, look how we're being led, small caps over large caps, growth over value. the wilshire 5,000 yesterday hit an all-time high. what you're seeing here is the market coming around and agreeing with the fact that we could see an actual economic expansion and not another six months of fed-driven trade. so obviously bernanke can move the market in one direction or the other. but people are getting comfortable with the prospects of a better economy and the narrative is shifting from oh, no, he's going to buy less bonds to, hey, if he buys less bonds, it means things are getting a little bit better. >> i think part of the market think that is he's not going to taper in september. i think that's what they took from last week. whether right or wrong, there are people who are betting that -- >> scott, let me follow up. >> that's one of the reasons we've had this mov

>>> final trades, josh brown. >> kbe is the way to play. >> fi. >> five pbr. >> steve weiss won the debate. >> two days in a row. it's getting boring. >>> "half time" is over. "power lunch" and the second half of the trading day start now. >> stocks rallying to record territory on the back of ben bernanke's latest comments. but did he really say anything different from what he said on may 22nd about tapering? on that day the markets basically freaked out. a major makeover to tell you about at microsoft. the tech giant restructuring four units now. will we see a new leaner, meaner, more effective microsoft? and if this doesn't move the needle big time, will it be steve's last hurrah? >>> prices at the pump spiking. how much higher they will go and how to play oil right now. sue is at the nyc. hi, sue. >> ty, good to see you. the comments from chief ben bernanke fueling the market to record levels. he says the economy still needs help and promise to continue to stimulate growth. the dow jones industrial average right now is up 130 points, the s&p up 16 and a third. the nasdaq is up 40% or si

josh brown, people like to say alcoa isn't a target for anything. >> it's a bullish setup. expectations for earnings in general are extremely low. we're looking for growth of .8%, the lowest expectations since the q 3 of 2012. jpmorgan and i want to hear what caterpillar has to say. jpmorgan is important because they play virtually everywhere in the economy. they have important things to say from consumer confidence to the mortgage business to capital markets. on cat i want to hear that china is not completely slipping into the abiz. between those names we will get color. expectations are low. >> it certainly is lately, karen, isn't it, keep expectations low and jump over a low bar. >> i think expectations are higher because the market has been strong recently. i agree with josh. jpmorgan will be important early in the season. it's it's the 12th and that will be a good important look at the economy. we'll see if there's loan groengts. we won't get the full effects of the housing market because that happens in the last week of may. it could be noisy but i think that will be

guy adami, josh brown, and tim seymour. more details on developing story out of boeing tonight. phil lebeau has got the latest on the story. phil? >> reporter: melissa, right now investigators are looking at that dreamliner trying to determine the origin of the fire

. >> josh brown? >> you got a three percent dip in ford. the breakout is still going on. i would be long this stock at this level. >> karen? >> ocn, i still like it. >> guy? >> norfolk southern. >> see you tomorrow at 5:00. "mad money" starts right now. a you find it. "mad money" starts now. >>> hey, i'm cramer. welcome to "mad money," welcome to cramerica. other people want to make friends, i'm just trying to make you a little money. my job is not1-800-743-cnbc. holy cow, we can go down too? we can get hit? . dow dropping 32 points. s&p giving up .37%. nasdaq declining .25%. and we seem to fold in angst to run from stocks as if they're toxic instruments doomed to ruin our bank accounts! >> the house of pain. >> so perhaps it's a good moment to ask do we fret too much? do we let our fears take hold when the market reverses? do we let a small drift, you know, one of these ones like today, define us after the s&p been up eight days straight. or as stocks decline, do we recognize we sometimes get too worried when event was or earnings or trends go against us? just think of w

our traders tonight, josh brown, brian kelly, anthony scaramucci and mike khouw. bullish break out. we're only one percent away from another all time high on the s&p 500. could the market be headed for an even bigger breakout? most importantly, how should y

josh brown and stephanie link will face off on this controversial name. >> thanks a lot. >>> cnbc's delivering alpha conference kickses o off tomorr. i will be speaking to john paulson. these days he's getting bullish on a new business, and that's housing. our kate kelly is back at hq with more. good morning. for having made such an enormous impact in terms of publicity by shorting housing, this is a curious trade. >> no, you're absolutely right, carl. is just going to make that point as well. he's known for this massive housing short from 2007, a bet that generated 600% returns, but what people may not return is now paulson is long housing in a significant way. four years ago he opened a private equity fund dedicated to purchasing distressed residential land assets. much of them in foreclosure or brups in sunbelt states like arizona, nevada, florida, colorado, southern california. his thinking was when the market came, these cheap assets would turn more valuable, especially in places where the land was entitled, meaning it already had approvals for building. over time the fund became one of t

senator sherrod brown, thank you. thanks to my friends here in new york city, kurt and josh. that's all for now. i'll see you back here tomorrow at noon eastern. until then you can find us at facebook.com/nowwithalex. >>> andrea mitchell picks up live coverage of the george zimmerman trial and its closing arguments -- next. help the gulf recover, and learn from what happened so we could be a better, safer energy company. i've been with bp for 24 years. i was part of the team that helped deliver on our commitments to the gulf - and i can tell you, safety is at the heart of everything we do. we've added cutting-edge safety equipment and technology, like a new deepwater well cap and a state-of-the-art monitoring center, where experts watch over all our drilling activity, twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. safety is a vital part of bp's commitment to america - and to the nearly 250,000 people who work with us here. we invest more in the u.s. than anywhere else in the world. over fifty-five billion dollars here in the