 Good Monday morning, everyone. We are on the floor of the New York Stock Exchange to talk about the markets with Kenny Polkari from O'Neill Security. So Kenny, it'd be a big week. Maybe some light trading volume with the holiday coming up. What are you going to be watching? Well, the holiday is really next week. But in anticipation of that, there is a big week full of economic data, central bank data from around the world, the Fed, the ECB, the Bank of England, the Bank of Japan. There's going to be lots of kind of monetary conversations going on, as well as a lot of macro data. Today we already got some macro data weaker than expected, yet the market's rallying even from there. It gives you the sense that I think the whole Fed conversation, and we'll hear more as we go, the whole Fed conversation about rising interest rates may in fact take a pause, which means they don't do anything else in 2017. The market would probably welcome that considering that the data is turning weaker. Right now we're at about $24.41 in the S&P 500, but you say a critical level to watch is $24.50. Yeah, the most recent high, which is $24.50.51, I think is the actual intraday high, would be a range that you want to see, because look, we're well up and beyond any trend line, right? So now you have to kind of extrapolate it out. $24.50 seems to be the level where we've hit resistance the last couple of times we've tested it. My sense is that we'd probably hit it again, especially this week and the next week as the volume starts to slow. There's not going to be enough drive, unless you get some major catalyst. There's not going to be enough drive, I think, to get it up and through. So I would expect the market to churn. Actually, I wouldn't be surprised if it churned and churned a little bit lower after it tested to $24.50 level. Well, and what about oil? I mean, we're still in bare market territory. Markets don't seem to care. We are well in the bare market territory in terms of oil, right down 27% off the high. Yet there's a little pop in the oil price today, which everyone's crediting to the move in the market, both in Europe as those markets are all higher and the U.S. futures here up seven points. I think it's a little bit overdone. I think you have to look at oil in a very different light now. Look, the world has changed. Technology's changed the way oil is produced, brought the cost of producing down. And so $50, $60, $70 a barrel of oil, I think, is something we're not going to see for a while. I actually, we're below all supports in oil. So I wouldn't be surprised to see oil test, you know, the high 30s, maybe 36, 38 somewhere in there before it finds some real stability. This minor pop today, okay, it's all great, makes everyone feel good, but it doesn't, it's not significant enough to really mean anything. But if oil goes down to 36, 38, do the markets, you know, decline like they did last year when that happened? Well, listen, that's the interesting fact, because the markets are not declining at all. Look what oil's done down 27% year to date, yet the market is at all time high. So there's almost a disconnect now between what the market sees for itself and how it, you know, how it factors oil into that picture. Now, if oil really breaks down, sure, then I would expect you're going to start to see the market back up, because it is going to affect, you know, earnings for the second quarter and earnings for the projections for the third quarter. And so therefore all those numbers will have to come down, and then the market will have to reprice. That doesn't necessarily mean the market's going to crash, it just means that the market's going to reprice. Alright, now the markets are sort of dismissing oil, but will the markets just submit health care, because we're supposed to get a vote potentially this week. But now a fifth senator is opposing, GOP senators are opposing the health care bill. That's right. And so therefore as much as they'd like to get it done, it doesn't appear that they're going to, they can only afford to lose two GOPers in the Senate to this vote. Right now they've got five on the other side. The administration, though, is out kind of pressuring these GOPers in terms of, you know, quid pro quo. You support me, and I support you, or if you don't support me, don't look for us to support you in the reelection. And so therefore there's a little bit of this cat and mouse game going on. My sense is, though, that in the end, if it stays in its current form, it's not going to pass. And so therefore the focus will be on health care. We saw what happened on Friday. Health care stocks, pharmaceutical stocks, and health care stocks rallied in anticipation of this. But as we learn more over the weekend, what's in this bill, how it's changing, the support it's not getting, it once again throws it all into, you know, right up at the front stage again. And now if health care misses, right, if we don't get it this time around, you would think that senators and congressmen are going to go right to tax reform. Well, they might, but then what's it say really about tax reform, right? They can't decide on, they can't come together on health care reform. Tax reform is even a much bigger issue. Mnuchin has already said, and Paul Ryan has already said, that we can expect massive tax reform in 2017. I find that a little bit hard to believe, because our tax code is huge, and a massive tax reform in really four months, because summer's here, these guys are all going on vacation in another week and a half for a month, and so therefore what do we really talk about? So can we possibly get massive tax reform? My guess is no, we might start the conversation, but my guess is they could jump right to it, but I don't think we're going to get anything in tax reform, which is going to be another reason for investors in the market to back off, because look, since the election, the market has rallied to new highs on the expectation of all these reforms, none of which we've gotten at the moment. So that means a pullback or a correction? A pullback, yeah, correction would be 10% or more. I'm not sure we're going to get that, because I don't think the Fed's going to let that happen, which is a whole other dynamic we can talk about, but a pullback for sure, and anything less than 10% is well within the normal range of trading. So nothing that it really panicked about, they may be individual sectors they had hurt more, energy for sure is down 17%, that's almost a bear market territory. I suppose if oil continues to crash, that will be in bear market territory, but then again, that creates some opportunities if you have the long-term vision. We're also following some other stories this morning. A hedge fund activist investor, Dan Loeb, taking a $3.5 billion stake in Nestle. A rather large stake, 40 million shares worth of Nestle, which he's been accumulating over time, but certainly he's an activist investor, so he's looking for ways to create value and unlock value, and so this story is just developing, right? The headline came out yesterday, the action is today, Nestle's was up almost 5% right near the open, I think it's backed off a little bit, but still up 3.5% or 4%. So that's going to be an ongoing story, but I think that speaks to not only Dan Loeb's opinion of what's going on in Europe, because he's got some other investments in Europe. He's got Unicredit, which is an Italian bank stock, he's got a German utility company, and what he's starting to say, and what other people I think are starting to understand, is that the economic situation in Europe is changing, turning for the better, and as well there's much less now political risk after we've gone through, certainly Brexit, we've gone through now the Theresa May election, we've gone through now the French election, and all the support that he's gotten, so the next big one is Germany, that's in November, but that's still a good four or five months away, so I think there's a lot going on, and that speaks right to that point. Does it say anything about where Dan Loeb might go next, what his next investment might be? Well, listen, he's got some fairly large investors, I suspect he's got to pay attention to the ones he's got, so I'm not going to speculate on where he could go next, but I just think this Nestle news is going to be big news for a while, there's going to be a lot of conversation around it. All right, Whole Foods shares are also in focus, there's speculation that another company could outbid Amazon. Well, look, Whole Foods is trading above its bid price, right, it's trading at $43,000, $42,000, $75,000, the bid price was $42,000, so what that tells you is that investors are willing to pay more than Amazon was willing to pay, because they suspect that the game is not over, that somebody is going to come in, and it might be Amazon that raises their bid, or it might be somebody else that forces Amazon then to raise the bid, which is why they're willing to pay more than what the deal price is, so there's no speculation yet on who that might be, but there is speculation that the market and investors at least seem to think that there's someone else that's going to come in and force this price a little bit higher. All right, another stock we're watching, Facebook reportedly looking to create original TV shows. $3 million per episode, did you read that? It's a little bit ridiculous, it's incredible to me, but listen, here's the deal with me, I'm not a Facebook user, I don't interact with Facebook, it's not a place that I go, so it might be great news, it's just not something that I'm going to watch, I also am not an owner of Facebook, right, I don't buy the stock, just because I don't use it, I don't buy stuff that I don't use or I don't know or I don't understand, as much as I understand Facebook, I'm just not a buyer of it, and so therefore I think it's great that they're going to try to break into this space. I'm not sure though, you know, it seems that space is becoming saturated between Netflix and Amazon. All the legacy players. And all the legacy players, but now you're going to throw Facebook into the mix as well. Certainly exciting, certainly something to watch, and I guess we'll see $3 million per episode, there's a lot of money, so let's see what they create. But Apple's also trying to jump into the space, they just hired two executives from Sony. Because it seems to be right, just what we said, that seems to be the game now. All these independence, all these social media companies, technology companies, getting into the media space, the television space, which I think is great because it does create some great shows. Let's not discount that. Netflix and Amazon have some great proprietary shows. House of Cards. It'll be House of Cards, which I love, and Bloodline, which is great. So it's going to be interesting to see what they create with this, both of them, Apple and Facebook. And speaking of Apple, there's an UBS note out today basically saying that growth in China for Apple, the iPhone, is going to rebound next year. Listen, I think it's hard to bet against Apple because they keep changing the world. And whether or not, you know, their most recent announcement, whether or not investors or analysts got all excited about the changes that they made, the fact is Apple is Apple. And they continue to change the world, and whether it's the United States, whether it's China, I think China, I think they're right. I think China is a growth. I think the United States, I think Europe is a growth area for Apple. So therefore, it's hard to bet against Apple. And speaking of Apple, Thursday is the 10-year anniversary that the iPhone first went on sale. I mean, how do you quantify that as an investor? Listen, go back and say, I'd have to go back. I wish you'd said that to me because we could have gone back and compared it. Apple has had this amazing, amazing run in the last 10 years, ever since they started with the iPhone. And now the iPhone only continues to get better, gets more exciting, it does more things. And so therefore, I think the world is a toaster, right? I mean, it's hard to quantify it. It's a tremendous company, it's a tremendous stock. And so Apple's the kind of name you buy and you just hold it. Unless you're a day trader in and out, if you're a long-term investor, you buy it and you just hold it, you put it away and you forget about it. Well, and it also brings a lot of focus on these chip makers, right? We talk a lot about NVIDIA, advanced micro devices. I mean, those stocks are on fire. Right, well, they're on fire. They're on fire because, listen, not only because of Apple, but they're on fire because technology is on fire. I mean, look what the tech sector has done. Look what's going on really around the world in terms of how technology is changing the world. Everything is now a technology company. You look at oil energy companies. They are partly becoming technology companies. Everybody's using technology in such new and interesting ways to help them grow their businesses. And so therefore, tech is going to be another sector that's going to be hard to bet against as we move forward into the 21st century. All right, Kenny Barkari, we'll leave it there. Thank you so much for joining us. You're very welcome. All right, and for more information on the stocks, Kenny mentioned, please head back to TheStreet.com.