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tv   Fast Money Halftime Report  CNBC  May 23, 2012 12:00pm-1:00pm EDT

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will be able to ever come up with a solution about decades of political and fiscal malfeasance and correct it with a wave of the wan. i think the issue you now us how the euro zone will look two, three, four months from now. will the strong countries leave and go back to the dfrmts ma"d". that's the debate i am having. >> the senate banking committee looking into issues regarding the facebook ipo. let's hand it back to the "fast money" guys at hq for that. >> carl, thanks so much. we will be following that story. of course, we are all over the markets with four hours to go until the clothes. here is where we stand. we are off the lowest levels of the day. still, weakness across the board on wall street. take a look at the dow. the dow has not had a two-day winning streak since late april, down 167 and change. s&p 500 down 1.3%. that's where the nasdaq sits as well. a loss of 1.33%.
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38 points for nasdaq. following the euro currency closely. it is at its lowest level since july, 2010. if you take a look, that's where it currently sits. it broke below 126. gold and crude oil are in the red. let's get to the top stories we are following. euro free-fall as i just mentioned, how worried should you be about a greek exit from the euro. is the best bet to buy this dip we are seeing in stocks. we are trading it from all angles, oil springs a leak. how low can crude go, especially with the summer driving season kicking off. dennis joins us with his trade on crude gold and best the in breed. we are talking to a value manager that has ranked in the top 10 performance this year. find out what she is buying right now and what she thinks you should be. let's find out what the traders think about what's happening in the markets today. let's begin with the euro. cortez below 126.
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big news. what is your trade? >> i shorted the euro currency this morning. i went home last night. i flipped that completely around this morning and primarily based on currency. i should point out, it is not just europe currency going down. the ausi dollar is lower against the u.s. dollar. getting back to europe, the reality of europe is this, the demographics of europe and debt simply do not work. i think this is the beginning of the end of the euro currency. this is a very significant technical break. we are at levels that we haven't seen since july. i am going to interrupt you. i want to go to breaking news right now with our own a man afterers. just got off the phone with the senate banking aid. they are tell us that the banking committee is now looking into issues surrounding the facebook ipo. they are trying to get more
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information. they are seeking to learn about issues raised in the news regarding facebook's ipo. they are conducting staff briefings with facebook regulators and other steake holders. this doesn't rise to the level of a formal investigation. presumably, we will see the fruits of that research into this facebook ipo issue. clearly, there is some interest now on capitol hill as to what happened on friday. back to you guys. >> amen, thanks so much. this on the same day that facebook, among others is being sued by shareholders in manhattan. the story continues with facebook. >> a problem for the marketplace. you have got jpmorgan and europe and now facebook. you are going to have policy make terse in d.c. that are going to be focused on the fiscal cliff. they are not going to be but focused on regulation and how wall street works. it is a problem for the market. right now, you need to be
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aggressive, not looking at your actual holdings in selling them off but seeking protection. i am doing it via the s&p futures. you could look at the options market and spy puts. >> dr. jay, your thoughts on this facebook news we are getting out of washington from aman? >> that's a little bit of a distraction more than anything else. by the way, three of us are tag teaming joe today. all three of us are here in chicago just to throw that out at you. as far as what's going on with facebook and so forth, it is gist just like when you bring the ball players up there to talk about steroids. that's a lot of fluff. we need for them to hold mary schapiro's feet to the fire and find out when she knew and how they knew about what was going wrong with the nasdaq on that day and that should have been addressed already. there is behind the scenes talk and you and i invited bob
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greifeld to come on the show and speak directly. i suspect for legal issues he would not for some period of time. mary schapiro, the head of the s.e.c., not a senate hearing so they can run a three-ring circus. >> that's a debate for another show at another time. i am not going to get into a political debate on this show. take facebook, for example, is rebounding essentially today. at least a little bit. it is up a couple of percentage points. let's just go there here. a buyer of facebook yet? >> yeah. as i said, i nibbled it and bought it at 33.80. i said i thought it would bottom yesterday. so far, that has held. it did get down to the low levels yesterday, even in the pre-market today. here we are, 80 cents, 90 cents higher. is it the bottom? i don't know. there has been so much stuff.
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even though we are on cable, he don't want to use the word i was thinking. there has been so much stuff tloep at this particular issue, whether or not morgan told certain clients the downgrade in the revenue going forward because of the switch to mobile. that's again a little bit of the circus. i think the real issue is that they brought more shares to market than they had demand for and then the other side of the equation is, fear and grade. obviously, over the last three sessions, you had nothing but fear. today, they are getting a little greedy. >> jim, what do you do with facebook? do you buy it? >> if i buy it, it is just small and for fun. at the end of the day, the $100 billion arbitration was, i think it is a great business model. i'm not going all in on facebook until there is a history behind the trade. >> needham came out and upgraded the stock saying facebook will
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have higher revelations than google. they are trying to build a bullish case in the face of overwhelming negative sentiment about facebook over the last several days. >> i actually believe that as well. i really like facebook as a user and as their prospects going forward. what i'm saying is that if we never had the $100 billion thing in our head and we were valuing them at $50 billion, it would be like, okay, great, that's a good reason to buy it. where the market is going to value that whole future revenue stream is still arbitrary is. >> i think the importance of facebook is not facebook stock itself but it is morgan stanley. i think morgan stanley might face massive litigation risks given the fallout on this and given the political tempest that is surely going to unfold. technically, i am watching morgan stanley, $13. i mentioned we were up testing $14. i thought that would be a significant bullish breakout. it did not. it failed miserably and closed about he low $13. the chart on morgan stanley
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tells you there is going to be a lot more pain and i think it is fb related. >> let's talk about this developing story in the markets right here. we are at the lows of the day. commodities are getting hammered across the board. the euro breaking below 126. 125 and change is where the euro sits. as the euro init is to slide, our markets dos as well. the big drag is crude oil and almost every metal that matters. gold down, copper, zinc, the industrial metals are getting hit today. all this as we keep our eye on what's happening over in europe. the eu meeting this evening. what will be the developments there? joe, give me a touch here on what's happening in the broad market as we are seeing weakness in key areas like commodities. energies getting hit pretty hard. let's not forget and take your eye off the ball. >> keep the strategy simal aple focus on risk management. commodities continue to remain a
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no-touch. you do not buy them in yet much the bottom is not in yet. there is tremendous uncertainty on what the outcome will be with greece, whether they leave the euro or not. the ecb can provide all the liquidity they want. they cannot protect solvency. that's the question that is has to be answered there. within the marketplace, seek out as much protection as you possibly can or you want to hide out in what is perceived to be defensive type names, believe it or not, the apples of the world, the starbucks of the world, the mcdonald's of the world. >> facebook remains a big story. from a market standpoint, it is somewhat on the periphery. this is what matters most. that is the euro currency at 125 and what it speaks on the bigger issues about what's happening in that continent. >> scott, to that point, the last time. euro currency was here, the s&p was below 1100. there is a massive die ver generals between foreign exchange markets and equity
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markets. my guess and bet is that the foreign exchange markets are correct and the s&p needs to go drastical drastically lower. >> we are not gangbusters but we have a little bit of footing and tracks. i don't think to compare it to back at that point in time is very significant to me. >> let's move the conversation foor. we are looking at the s&p 500 breaking below 1300. i want to get more perspective on what's happening in the markets specifically as to how it relates right now. leaders meeting to discuss solutions to the crisis. our next guest says the risk of a greek exit is as high as it has been. let's welcome marco p achl pi p papitch. >> what are the expectation sns. >> the expectation is that the french president is going to put on the table some sort of a progrowth package including at
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least a rhetorical commitment from everyone in europe on the eurobonds. what the french president wants is for the german chancellor, angela merkel to retoreicily commit to euro bonds in the future. that is the question, whether or not they will do that tonight. >> give me your best view as to whether greece leaves the euro zone. if it does, how messy that could be. keep in con text as well a conversation that papademos had with our own michelle caruso-cabrera saying there are no preps underway for that to happen. you put that up against reports that each euro zone country is said to potentially be plerepar willing contingency plans for an exit. >> that was a great interview. he was correcting himself, because he said there were preparations. so the former greek p.m. papademos previously said there were preparations for a greek
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exit. there have to be those preparations going on because the probability of a greek exit has been the highest it has ever been. however, our likeliest scenario in our research, the highest probability is that you do get a centrist government formed after the june 17th elections and that the greek fate remains in europe's hands and not in greece's hands. that's a very important distinction. it means that the fate of greece is in many ways in their hands. that way, the risk to europe is also in greek's hands. europe europeans don't want that. >> you are talking about a mid-june settlement in greece from a political standpoint. that's some three weeks away. how messy do the global markets get between now and then if there is no definitive view on what actually will take place? >> the encouraging thing is that
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the last polls we had saw the far left syriza decline together second place. this is very important because in greece elections, the party that actually wins receives a 50-seat bonus even though the win may be very minimal. it is very important we saw a new democracy regain the lead. it is our analysis that this will continue. you have to understand, the next three, four weeks, the greek population is going to be put under incredible foreign and domestic pressure to stick to centrist pro-eu parties. they will most likely succumb to that pressure. nonetheless, the chances are pretty high of something going wrong as well. >> i am going to leave the conversation there, marco. quickly, your best guess as to where the euro trades from here? how low do we go?
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>> remember, 119 was where it went at its lowest point during the sovereign debt crisis. we could see that happen again. nonetheless, there is a considerable up-side risk if the greek elections produce a result that in my view the markets aren't accounting for. that is that centrist parties regain the lead. >> marco papic, thanks so much. appreciate having you on once again. >> thank you. >> how do you perhaps hedge yourself in this market environment that we currently find ourselves in? folks watching at home or wherever they are sitting at the lunch counter watching us, what they do here? >> i go he back to, you have to keep the strategy as sim as you can. you want to make singular binary decisions. not selling off holdings. i don't know what the grand compromise is going to be. i agree, there will be a grand compromise surrounding greece. the introductions, the road map
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to the euro bonds may be a possibility, more concessions and funds given back to greece and potentially, the protection of solvency on these banking institutions. that's the real problem right now. how do you stop runs on the bank? you have to create this deposit insurance and it has to be done by the fiscal entities, not by the ecb itself? >> jim, what do you do here again? give me something constructive for people to hang their hats on today? >> you have to look the awhat's being dragged down. southern company, s.o., clorox, people need bleach no matter what is going on. you get a good price entry point, everything gets torn down with the euro story. some things don't really deserve it. i actually like apple and apple is performing admirably. there are things you could buy here. >> you are telling me you are getting a little bit defensive, you are looking there, a little bit of yield. you are looking there, right? >> right. also, because when things start
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to deteriorate further, i think that makes it all the more likely that the u.s. scentral bank starts throwing more money here. that money is going to look for a yield. you are not going to find it in the 10-year, 30-year bonds. that's why utilities are pretty decent. >> take a look at stocks hovering at or near session lows. there is the industrials down 178. the s&p below 1300. at 1297, that's a lot of nearly 1.5%. almost a mere image from a percentage point for the major averages. next up on the "halftime report" we are trading in gold. lots more coming your way.
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welcome back to the halftime report. oil is falling below $90.
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>> we thought that talks in germany would be the focus of what traders are talking about here in the oil markets. it really is of course all about the euro and the dollar. the fact we are looking at prices that are at the lowest levels we have seen since the beginning of november last year tichl it is not only the oil mark at the time that has been impacted. the oil market where folks were talking about $5 gasoline a few months ago. now, so much has changed as we're seeing some of the geopolitical in iran taken off the table. demand continuing to slip. the euro zone only underscores the demand concerns. traders say we could look at oil prices falling to $85 a barrel for the wti contract. thank you. >> sharon epperson for us. let's welcome the commodities
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king, dennis gartman from the gartman letter. we want to talk to him about copper, gold and metals. welcome back to the show. >> good to be here. >> the dollars run that it has had of late, it has to be the biggest head wind of all for oil, does it continue and how low does oil go? you heard sharon toss out an $85 number. >> i couldn't have agreed more with anybody than what i heard sharon to say. i have difficulty thinking crude oil, wti, can get below 85. we are in a period of time where rational and reason are leaving the markets. now, we are to that period of time where the market is going to remain irrational, longer than you and i can remain solvent. in the hands of what's going on in greece. it is a liquidation mark can he, a target on the down side. pick any number you get. when they wish to sell, they can force things to go down farther, farther than anybody would have
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imagined. if anybody had told me you could take -- i'm not surprised to see the euro breaking 126. i am not surprised it is going to break 125. i wouldn't be surprised if it would break 120. to see gold tumbling $60 or $70 in the past 48 hours, see stocks being liquidated like this, this is a global rush for liquidity that the margin clerks dream come through. a rationist's nightmare. >> let's take the euro scenario first. i know from reading your letter that you are short the euro. isn't the risk there that something, at least something, comes out of the meeting today with the eu leaders and the euro then gets some sort of bounce? >> let us hope that they do. we need to see them do something. it will only be tape upon an open wound. let us hope they do something. if they don't, all of the global markets will be under even more duress. i hope they lose a lot of money
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in the euro. if i do, that means they will have done something proper. that means they will have corrected the rush for liquidity, which is only a short-term circumstance. right now, you are hoping for short-term circumstances that can be strapped together to create some long-term enterprise. do i think that they will? i have my doubts. the germans are painted in a difficult corner and the greeks, a more difficult corner. you have an overtly left-wing party that right now although the polls might seem to indicate new democrats will sneak out and become the leader in the greek elections, this fellow running syriza is a very good campaigner and popular person. if they win that election and there is nothing done tonight, we are in aworld of hurt. >> dr. jay, you got something? >> yeah, dennis. when you are looking at your charts and i am looking at the gld, no the gold you trait most of the time, when you look at that, the december 29th low is
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14828. it was a very nice bounce from that level. so i know what you said the abeginning was, markets can be more irrational than we can have liquidity to meet that irrationality. i am using that as a reference point especially as we got down near that level today to say the gld at 148.28, i will take a shot down there. will you take any shots or will you just keep your powder dry until you see more of a washout? >> i have been shy and hurt in the past 48 hours by having been long on stocks and having to have gotten out last night early in the evening. i still got hurt. you are talking to somebody who has been wounded a bit. i think the trade, the logical and reasonable and rational trade is in gold but not in dollar terms. i own a little bit in dollars. i still think rational trade given the circumstances prevailing is to be long of gold, short of the euro, even if they come up with something and the something will probably be an acknowledgment by the germans for the allowance of the euro
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fund. that would be startling bullish for the gold market. it would be reasonably bullish for the euro market. i have to admit, i'm surprised by the overt liquidity loss that's taking place in the gold market. that above all seems to shock me the most. >> dennis, it is steve cortez. i am always jealous you get called the commodity king. i don't even get called the paup per of equities. my question is, regarding gold and your bullishness on gold, aren't these events in europe, aren't they incredibly deflationary events? >> they are. >> do you see inflation that can lift gold? >> they are deflationary. the only thing that will push gold higher is the political circumstance and the moochl of money out of greece into other currencies and probably into gold. steve, you are absolutely right. the circumstances that are prevailing, the deleveraging that is going on is anything other than inflationary. it is massively deflationary.
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however, going back to the 1930s and look at the deflation that he occurred there and see what happened to the gold market. >> dennis, thanks as always. >> thanks for having me on. >> we will talk to you again soon. joey? >> love dennis' work, completely disagree with what he said. this is not light now a liquidity sourcing where they are controlling what's going on the tape. the commodity has been broken since february or march. if there is a resolution, it is not the first place that you look. the xle is down 7% for the year. look at oil. whether or not there is a resolution in europe, the eu ban on iranian imports, that's july 1st. there is going to be an spr release ahead of that. oil commodities, they are broken, forget them for now. >> many could go up on the half-time report, we continue to monitor today's big selloff. trading the plunge in technology. dell shares down 18% right now. biggest loser in the s&p, later, one of the top performing fund managers, joining us with the stocks she is betting on and
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welcome back in a day covered in red, a few bright spots. our top three trades. starbucks is having a pretty good day, upgraded. saying the coffee chain well positioned for strong earnings growth in the years ahead. joey, pretty good move on a down tape. >> i like starbucks. technically, you want to use 51.50 as your point of reference. you are going to get margin expansion on the single servers. the chinese story is intact. i like starbucks and truly believe it is a defensive play here. >> here is another pretty good looking chart today. almost a 4% move. big lots missing earnings expectations by a penny but the stock is still on the rise here, cortez. >> i like this name. it is way off of its lows of just this morning. the commodity decline is not all bad news, great news for low end retailers. walmart his a three-year high. the drop in gasoline prices is
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crucial for the big lots shopper. it is a value trade. >> wall march, up 1 1/2 of 1%. dr. jay, at a 12-year high? >> you look at it, scott, from the time they were hit with this charge about the bribery down in mexico and again the united states sort of does a little bribing arn the world, don't we, scott, exactly what they did to get business done down in mexico might be the same sort of thing we do to call nation building when we give a whole bunch of money away in afghanistan or any other place. it is recognition of what people actually do to get things moving. i'm not saying that it is all right for people to brag but obviously obviously, the reaction of coming up from 68 back up to 62 tells you what investors think is right. >> put aside the soap box, dude. wear your trading shirt. >> najarian, wow. >> a retailer i really like that's gotten beaten up lately is autozone. in an age of pfrugality, they ae
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fixing their own cars instead of buying new once. we have seen a consistent trend of ford and gm trading very poorly and autozone trading on the whole very well. i am watching autozone to try to buy it. >> let's move on and talk about dell having its worst day in 11 years. shares down 18% on a revenue and earnings miss. it is the worst performer today in the s&p 500. in response, rbc lowering its price target and estimates. dari yachlt. is there any reason to believe this is a stock you should own today? >> they are buying a capital allocation decision, which is dell coming out with a dividend policy. there is minimal reason to own it. the big issue one should be concerned about, they are going through a sales reorganization. for the first time we are seeing
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dell sit and talk about consumers are shifting purchase in priority to its tablets and smart phones versus traditional laptops. that may sustain that as apple continues to grow. >> dell makes a comment, consumers moving to areas where we have chosen no the to participate. when a company makes a statement like that, if that's where the trend is moving and dell is not, what's the case? there is no positive case to be made around that, is there? >> it is tough. your best case in that scenario would be windows that comes out late this year and some sort of enterprise deemployment on the tablet side with that platform. that could help dell. you have a pause at minimum into windows 8. this is where the priorities are shifting towards. >> now, as we take a look to hewlett-packard, the earnings coming after the bell. a big selloff in hp. it is the second worst performer in the s&p 500 behind dell. what kind of read-through do we get? is it possible even if it is a
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bit of a disappointment, that's being taken out already during the day. what are your expectations? >> in the short-term, you might be right. the expectation being low for hp. i think the biggest thing hp needs to address is, a, give people clarity on how they protect revenue and show revenue stability. that may be tough on the pc side to have other things like ip and g services. the other part is, everyone expects a sizeable restructuring, 20,000, 30,000 employees getting let go. on deciding what that would mean and what savings they would generate from that. the big thing hp needs to address is will they own more or less than $4 next year. i think that's what's going to decide how the stock moves. >> joe, real quick. emc, ibm, everyone basically knows the thesis. they are the winners in the space right now. the stocks have pulled back, do you buy them here? >> of the two, we like emc. it is under $25, it starts to
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get very attractive. it should keep winning not just on the storage side. that is one we would look to buy along with apple in large cap tech. >> amit daryanani. we will talk to you again soon. >> trade these names for me. clearly, apple is having a dramatic impact across the entire space whether it is hewlett-packard or dell. that's where the story should be centered. >> i don't think you will hear meg whitman say something like, we have not addressed what people really want. people are going where we are not making products. i think meg whitman is going to announce the cuts. i this i that counk that could e catalysts for a turn around. you look at hewlett-packard and juniper, some of that is dollar
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strength. i don't know if that ends immediately. i think they are at the lower end as far as the dollar continuing this torrid pace it has been on. we have a real time trade that's a way to pay the facebook face plant. take a look at the euro. we have been following the weakness throughout the day. here is the picture. the euro is now again lower at its lows of the day. there is the s&p 500 hanging out at its lows of the day. more after the break. [ engine turns over ] [ male announcer ] we began with the rx. [ tires squeal ] then we turned the page, creating the rx hybrid.
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welcome back to the halftime report. there is a look at the fear index rising above 24. up 8%. >> i like to call it the insurance index. i don't think you be wary. you are going to have to pay up for options. the spx is perilously close to this 200-day moving average. we are sitting at 1297.
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i don't think what's going on is this massive lick qui tation but a buyer's strike. when you look at the vicks, it is telling you something. you are going to have to pay up for options. >> i agree with what joe said. also, what you have got so far is a vicks that would be at 22.5. that's the one-day vix. if you take a look at it. it is trading 24.5. this is based on june options that are about four weeks out. in other words, they are saying we could see rather than the movement today another two points out of the vix is what people are looking for. >> what stocks are being talked about most in the social stratosphere. how can you use that to your trading advantage? >> let's take a look at what's buzzing on stock twits. the bigger the bok, tx, the big
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the chatter. still chatter on the handling of jpmorgan. traders are saying that blankfein must be loving this. can goldman gain here? another gene, urban gorele rill la saying waylon and willie should rewrite to say, don't let your babies grow up to be bankers. >> let's trade the banks. that's where we are going, joe. >> if there is a resolution favorable to banks. usb is another name. when you look at the pullback at master card and visa, i think there is an opportunity that you are as well if we get some sort of stabilizing resolution. >> let's go to steve weiss now, of short hills capital. he is on the fast line. frequent fast money trader as well. he has a real time trade on the financials. why are you looking at this
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space, steven today and where are you looking within the financials? i am looking at the brokeers. what i am looking at is the overall market. i don't think it is particularly attractive even though it has come down quite a bit. we are in focus in particular on morgan stanley on the short side against goldman sachs on the long side. i am not big in terms of trades. you have to look at each side separately. when i look at it, goldman is still the best run investment bank there is. >> you were saying that about jpmorgan a couple weeks ago? >> not an investment bank. that's a commercial bank here. >> i gotcha. >> i was ng wrwrong. >> it happens. in terms of this, the morgan stanley issues with facebook, that's a little bit of noise. it il wiwill affect them going forward. what i'm more focused on is how these banks are run. i don't think morgan stanley has a lot of opportunity to increase
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their profitability carrying such a heavyweight in terms of large retail force which goldman doesn't have. additionally, if they do get downgraded in terms of their credit rating, it will be much more expensive for them to compete on prime brokerage business, which is a very, very profitable business and other businesses. so that's why i am short morgan stanley. however, if there is a positive resolution to the europe crisis and i don't expect one until after the greek elections, i don't want to get completely short. that's why i am on goldman. i think it is the best managed investment bank out there. >> steve weiss with a trade on the banks. >> no, i don't like it. i am short goldman. i was short more goldman. i covered some yesterday. it looked like it was trying to get off the matt and closed on its heels. the charts of morgan and goldman stanley look worse than jpmorgan. if i was long jpmorgan, i might
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hedge that by selling goldman stanley. the rhetoric that they are receiving from politicians is awful. they are not being able to make money in the traditional ways. to compare them to bank share prices from several years ago, they are completely different animals and viewed at the tip of the spear and the whole risk asset spectrum. i don't like the banks. >> at what point do you look at them and say, maybe they are oversold. weiss makes a good point in that if you do get some kind of positive development, what happens if you get a better than expected surprise out of the meeting today in europe? you are likely to see the banks get a short-term lift. >> no question, you are. everything we have talked about today, being short the euro, all other trades, the caveat is if we get good news out of europe, all of those things could pop out. neither am i hanging my hat on a good, solid resolution out of europe, either tonight or when they have the election in greece. it doesn't seem in the cards. >> you have seen this before.
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>> cortez? >> i think with morgan stanley, the litigation risk is massive. trial lawyers have to be licking their chops to get at them on this facebook issue. i do not want to touch it. >> coming up on "the halftime report." on the buy list of one of the top performing fund managers. tcw's diane jaffee will tell us next on "the halftime report." ♪
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markets dropping over concerns about europe. that key summit getting underway within the hour. we are going to break down what's at stake and how you should invest in light of it. facebook trading higher. we will speak with an analyst with a very different take. a price target of under $10 a share. find out how she gets there today. back to scott. look forward to that facebook discussion. as tyler just said, yes, there is a lot of red on the board today. take a look at shares of facebook here. it is in the green. a little bit of a bounceback from 2.5%. facebook is still trading below $32 a share. as we continue to follow that story. in the meantime, tcw's division focus fund is one of the year's best performing large cap value
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fund. it is up more than 5% beating out the broader index. diane jaffee joins us now. >> thank you for having me. >> your performance has been good. it would be better if not for the fact that jpmorgan is your third largest holding. >> that's true. but don't forget, it is still up on the year. >> how have you managed to beat the market? >> we focus on five valuation characteristics a company must have. one of which for the difficult i dend focused fund is the emphasis on difficult dens that are higher than the broad-based markers. that provides a nice cushion. >> why do you like pfizer? clearly, we are focusing on dividend yield. it pays a sizeable dividend. >> it pays a dividend yield that is better than where its corporate bonds are yielding right now. it has great catalyst selling the nutritional business is one of them and animal nutrition and health care is also going to be sold. there are a lot of catalysts that we think will unlock the
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power of that stock price. >> diane, it is joe. when you talk about catalyst and we approach the end of the year, 2013, you have a dividend taxation policy in question. it could become ordinary income. i don't know if you believe that will or not. do you think there will be a little bit of a pull forward into 2012, into rolling out rolling out some of these dividends -- special dividends as such? >> absolutely. the big question for a lot of companies sitting on a ton of cash, for sure. special dividends have been paid in the past. look at ge. it's going to be -- ge capital's going to pay a special dividend up to its parent later this year. >> ge capital's paying out that cash for the first time since '09. that leads to a positive story you have to tell about general electric. what do you think people should do with the stock here? it's obviously one of your holdings and one of your core ones. >> it's in our top ten. i think it's the unsung hero here. since march 9, 2009, the market bottom, it's beaten both the industrial index and the bank
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index through today. >> jeff makes some interesting comments today. he of course the ceo of general electric. he was speaking at a conference where he says and i'm going to paraphrase seeing in his words very strong industrial outlook and still seeing, again in his words, great growth in china. how significant are those types of comments from a leader like him from that company? >> it's really important. they are the number one world's largest manufacturer of gas turbin turbines. so they are really in a sweet spot right here for lower gas prices. they're also the number two player in wind turbines. so they really have a lot to sell to china. and also they just did the deal with xd where they're going to be selling their transformers into the united states. so there's really nice synergies going on there with ge and its relationship with china. >> of your ten biggest holdings, and this will be my final question, intel is the only technology stock within that mix. are you still as confident as you were at the beginning of the
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year about this given what we just got from dell what we may get from hp and how apple continually seems to be eating everybody else's lunch? >> well, i think those things are definitely out there in the intel stock price. it's almost a 3% plus dividend yield right now. plus they constantly are reinvesting in the mid-teens as a percent of sales and r & d. they have a two-year lead. >> thank you for coming on today. >> thank you. >> dr. j, number of big holdings? >> recent list in the volatility, scott, means she can enhance those yields if she chose to sell some options. >> excellent commentary by diane and i agree with her. i like ge. >> cortes, quickly. >> scott, don't like ge because it's a brick story. we have been so focused on europe lately we're not paying enough attention to just how poorly emerging markets are
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trading. >> just told you about china. >> we're certainly not hearing that consistently from other companies, that's for sure. >> helps to hear from the largest, but neither here nor there. keep your tweets coming because we're trading them next. wanted to provide better employee benefits while balancing the company's bottom line,
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big day on the street. you've got so many stocks on the move. that's why we're going to do a supersize pops and drops now. midday market movers that may not be on your radar. research in motion, joe. >> 8-year low trading right now.
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you're going to see a sub $10. where's the activism on this stock? unbelievable. >> that will be huge if that stock goes into single digits. >> it's going to. >> expedia popping 5%, doc. >> gia been on this one as well as priceline. new 52-week high, judge, for expedia today. >> no surprise, cortes, given what's happening in materials that freeport's getting hit. >> yeah. exhibit a in my case against emerging markets. at the low, i would avoid it. >> jpm dropping 2%. jimmy. >> bad press followed by more bad press. time to be short the banks. >> all right. final trades next when we come back.
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