tv Fast Money Halftime Report CNBC February 13, 2015 12:00pm-1:01pm EST
2093 now. >> friday levitation time and we're data-free except for greece really to deep into next week. >> monday closed, tuesday interesting. thanks for coming in. good seeing you, kelly. >> thank you for having me here. >> back to headquarters, michele caruso-cabrera and the half. ♪ welcome to the "halftime report." i'm michele caruso-cabrera in for scott wapner. today's starting lineup, steve weiss, managing partner of short hills capital, jim lebenthal is president of lebenthal asset management, josh brown, ceo of ritholtz wealth management, s sirrat and keith banks president of u.s. trust. welcome to our guests today. our game plan looks like this. mark took on amazon with diapers.com and now he's doing it again with his new company, jet. we'll find out how. and then friday the 13th trades.
you might not want to walk under a ladder, but you should consider these unlucky trades. live from new york we get the inside scoop on snl's 40th anniversary when jim brewer joins us live. first kick things off with a record day for the s&p 500 setting a new intraday high. the dow in rally mode breaking 18,000, oil trading above $60 for the first time this year. european markets ending the week in the green after german data beat expectations. here's the question, where is the best place for your money? here or abroad? mr. banks, start with you as the guest. >> we would say here. we think the u.s. will continue to be the global driver of growth and present the best opportunities from an investment point of view. >> sirrat. >> u.s. as well. given where the oil prices are, this is the place you want to go. >> josh. >> the whole world and always give you that answer. it's important not to confuse current economic data with
future performance in various stock markets. >> you can't name one country for me? >> well, let's just talk broadly overseas stocks versus u.s. if you look at a five-year track record the s&p is up 80%, efa index up 20. that is the biggest spread of outperformance you to go back to the dotcom bubble to remind -- >> remind everyone what it is. >> the emerging markets -- >> developed markets x u.s. japan, hong kong, europe the point i want to make, people forget it has outperformed the s&p in five and six-year periods recently between 02 and 07 and from 83 to 88. it's going to happen again and by the way, take a look at your screen this year, the s&p is up about 1.%. efa up 5. it's important we don't just say oh, better gdp, better stocks. it doesn't always work that way. what actually drives country markets is shots to expectations. >> so much for my quick round table. jim lebenthal. >> i think u.s. is obviously number one. europe is number two based on
valuation. the areas i don't like are japan and most of southeast asia. japan stuck in the mud, china has plenty of issues with it. >> i dare you to say au via. >> i'm not saying it. >> here's the deal in reaction to josh's comment. always a mistake to look where stokts and markets have come from. if you did you would have sold apple ten years ago, maybe five years ago. i think you have to look where the fundamentals are now, where they set up in the future and discount that. and to me, you've got so many issues in emerging markets. china still a house of cards. russia, i mean it's made emerging markets better, it could fall apart. india, you can buy an etf there but few invest stocks there. maybe 20. i think the u.s. sets up nicely and don't think the rest of the world will move without the u.s. moving as well. >> four out of the five say the united states. i'm going to call that consensus. doesn't that make you nervous? >> this smart group, no.
that's an excellent point. >> it's not -- >> at least three smart people. >> not a strong enough consensus. josh saying what he's saying and all of us saying it's not just the u.s. it's other areas. >> can i just -- the united states was the best place to be on the planet in the year 2000 as well and i'm not suggesting that we're at a year 2000-esque peak but -- >> russia best place to be in 98 before it fell apart. >> no, it wasn't. i think it's important to remember -- i think it's important to remember -- >> before you -- >> and then for ten years, u.s. stocks gave you nothing an you made money if you were diversified with not just u.s. stocks. it's not to say one or the other, put all your money in russia. the idea is you cannot divine what a market is going to do -- >> the question was the best place to be, not the only place to be. i think we all agree that we have diversified portfolios. i own some europe, i don't own any china. but it's just that's my biggest weighting in the u.s. right now. >> you can get diversified buying companies listed here. they don't only have to be only
u.s. growth. most of the companies in the s&p have growth overseas, currency issues buts the secular growth they can chase where the capital is going. you don't have to buy it in that country. >> i'm glad you brought up the currency issue. hurts multinationals at the same time if i'm an overseas investor i think the big consensus in the world the dollar is stronger and getting stronger so if you want to get double bang for your buck, you live outside the united states, you buy u.s. stocks because you think they're going up because the economy is getting better one and thens the dollar going higher, two, it's even better. >> and capital inflow will push up the ease or the demand for stocks and if multinationals can hedge it's not like they're going to get caught all the time with the currency going up. you will get some of the potential and then you get growth as well. i think you're not going to be -- >> what do you tell your client about the strong dollar? >> i think you're right, well, it hurts multinationals in terms of earnings but to your point about foreign ownership, the growth since the beginning of the bull market foreign investors have gone from $1.7
trillion up to almost 5.7. here's what's interesting. right now, foreigners own almost 50% of the treasury market about 31% of the fixed income market, corporate fixed income, but less than 20% of the u.s. equity market. i think to your point, michele if you believe the currency is going to stay strong the u.s. dollar, and i do, it brings a lot of impetus for foreign capital to come to the u.s. and that will be another reason for outperformance. >> when you say 50% of treasuries you're excluding the big china buyer as in the country, you're talking about generally people who live in other countries or big holders of u.s. treasuries. >> holders in aggregate represent 48%, close to 50% of the total ownership of the treasuries and what i'm saying is there's a lot of room to go. >> i spoke with a latin american once how come there's so little stock ownership in latin america he says you put your money in dollars and when the country
devalues you double or triple your money overnight. >> i would like to make one comment about the dollar and i don't mean to be the contrarian here for the sake of being contrarian but the dollar is strengthening about three or four years ago we were worried how weak the dollar was and you can go back about 15 years and the dollar was or excuse me the euro was well below parody on the dollar. this is a pendulum that swings back and forth. a long-term investor i agree with what steve and josh says you want to be diversified geographically. in the long run it doesn't matter. >> so mr. bank, i think great last name by the way for somebody in wealth management. >> thank you. >> what sectors are you telling clients? >> the four we like, energy, we like technology, we like health care, financials. >> energy, completely beatenp up. that's a value play. >> value play. ultimately the oil prices will go higher and there's great value being built there. >> how long do you expect people to wait?
or doesn't matter? >> look, i think you have to begin to put money in now, the value is there, you have to have a longer term horizon. we're finding more of a bottom than not in oil prices. they may go lower but the value is such you want to begin to build an exposure in energy today. >> technology, just the opposite, been on -- >> yeah. >> turbo charged. >> we like certain segments better within technology. cyber security huge. every day there's another issue and just companies are being forced to put a lot more money in and we like it and will continue. >> mr. banks, thank so much for joining us. >> great to be here. >> coming up david versus golia goliath. the founder of jet, cnbc exclusive. he is taking on amazon again. and it is a big week in our competition for trader of the year. the plays that worked and also those that fell short this week. first, though, morgan brennan, how did she get this lucky assignment down in miami with a flashy spending story. look at you, morgan.
>> going to tell you this is the life. this is a boston whaler 37 foot 370 and the manufacturer of this book, brunswick corporation, says there's a backlog on these boats. that story when "halftime report" returns. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. and it's only on fidelity.com. open an account and find more of the expertise you need to be a better investor. return on investment isn't the only return i'm looking forward to. for some, every dollar is earned with sweat, sacrifice, courage.
which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal. start investing with as little as fifty dollars. i am an electric crew foreman out of the cupertino service center. i was born and raised in the cupertino area. it's a fantastic area to work. the new technology that we are installing out in the field is important for the customers because system reliability i believe is number one. pg&e is always trying to plan for the future
and we are always trying to build something stronger and bigger and more reliable. i love living here and i love the community i serve. nobody wants to be without power. i don't want my family to be without power. it's much more personal to me for that reason. i don't think there's any place i really would rather be. welcome back. let's get to dominic chu at the market flash desk for a look at what's going on with oil today. >> it's a nice moving -- move
higher for crude oil once again with a gain of 4% today. about 3% right now as demand forecasts continue to rise. wti crude is up more than 20% just over the past couple weeks off depressed levels. energy stocks catching a bid, league the s&p 500 today. among the top gainers denbury resources, and new field exploration, they have been a real laggards in some of the trades over the past few months. those are the ones leading to the upside today. >> let's trade. you do the commodity itself or stocks instead? >> i think with energy going up there, there are other plays to do. the airlines are selling off as soon as energy goes up. this is the time to keep adding to your positions. longer term they will benefit whether oil is 50, 60 or 70? >> why. >> they're making so much oil. they're not cutting prices. one of the things they did, we're not cutting prices, we're cuttings capacity, and we're going to keep on flying and charging you for everything that you want on those planes. >> i agree.
airlines still look attractive. >> and they sell off 5% when oil goes up. >> but in terms of the commodity overall look it's bounced no doubt about that. i don't know if it's sustainable. the production that's gotten shut in has not been current production, future projects. and it's been high cost future projects and production. so you still have the imbalance, big inventories. i think, however, the stocks selectively while they bounced a little bit, i would go into the e p stocks than service stocks. >> exploration and production. >> that's where i go. names like apache, stocks like that. >> i'm a little different from steve. i admire the risk taking there, but because i'm not short if it's going to go back to 60 in the short term, but in the long term we think it's going to go, i would rather play it safe with the super major integrated oil companies, so chevron, texaco is a great example, bp a little more risky and potentially more rewarding. >> my names are long term. i'm not trying to --
>> got it. >> can't do that now. speaking of oil, brian sullivan has the angles covered today. don't miss a power lunch cnbc.com live from texas talking about the impact of the price of oil to that economy there. he's coming up right after "halftime" at 1:00 eastern time. all right. lower oil prices, come lower gas prices and you know what needs a lot of gas, boats. my father calls them big holes in the water in to which you pour money. the big business is making a comeback and morgan brennan is out on the water in miami. lucky dog with one of the industry leaders. morgan? >> hi, michele. so we're in seattle marina sitting on a boston whaler, 37 foot, 370 model the manufacturer is brunswick corporation and joining us now is brunswick's ceo. dusty mccoy. thanks for joining us. >> thanks for having me. >> so everybody that i've spoken to says we've gotten down here to the miami boat show says boat sales are back and, in fact, that's a really big deal because we saw new boat sales fall about
60% in the recession. >> we did. >> and with your company we've seen an increase in the last earnings, 23% in your boat segment. who's buying these boats? >> two different groups. the top end of the market is red hot. you mentioned in the lead in, our bigger models were completely sold out over a year. pontoons, fishing boats tend to be smaller, different income level, have now begun to reach pre-recession levels. so one end of the market and other end the market is very powerful, very strong, growing very healthy. >> we saw the preowned market for boats. didn't get affected the same way new boat sales did. you could make an argument that is one of your competitors is the used market. how is brunswick -- how have you adapted to deal with that and go after those consumers? >> there is no question. the used market the biggest competition. and the user market today is larger than it was prior to the recession so of all the boats
that change hands say in round numbers, 1 million boats will change hands, some will be new, some used each year, 85% used, 15% new, so for us to bring the used boater to the new market we need to do a couple things. we've got to get the price right for new boats so the spread between new and used begins to decline but as importantly with a great product like this, we need new boats with new innovation features so you just can't get it on a alwaused boat. you have to buy new. >> you say new boats, new bells and whistles, models, lower price points what does that mean for your bottom line. >> we're increasing margins as you noticed and thank you very much. >> how? >> i do appreciate it. a couple things. we're all over in the boat side of the business, working off platforms. for a new model we will treat it as a distinct entity. now we're able to build off platforms and get several models off the same platform.
permits us to get new product to the market at lower cost and that's a big goal of ours. >> what are some of the headwinds for the boating industry this year. currency is a big one. >> we're 65% u.s., 35% outside of the u.s. for all of our businesses. currency is going to be a headwind. it's going to hit on translation 2.5% of sales, 7% of earnings, it's going to be impacted by the translation impact of the rise in dollar. the real issue now is going to be as we go through the year what's it going to look like competitively as we export product and what's it going to look like as our competitors primarily in the boat market come in the marketplace. we have a lot of great japanese competitors and we'll be watching their activity also. >> and one of the things that you told me before is that you seen demand in europe and other parts. world versus the u.s. has potentially flattening out in 2015, it's really the american buyer making a comeback this
year. why? >> well, any economic news we look at for europe, for brazil -- >> lower gas prices a factor for u.s. buyers? is it a stronger economy? >> that's as great question. actually not. gas prices impact usage but what impacts boat buying is gdp growth. to the extent our economy begins to pick up with lower gas prices, certainly benefit from that in the used buyer. we make a lot of money in the parts and accessories business and when gas prices are low, people use their boats and that part of our business grows significantly and it's a high margin business for us. >> one more question, how much gas does this boat take? >> not enough. a boat like this we have three 350 horsepower engines on them. please let me plug our engines brand new engines just introduced at the show. so that's 1050 horsepower.
this boat will run about six hours at full throttle with that horsepower. the gas mileage is fun. >> dusty, thank you for joining me out on this boat in sea isle marina. >> thank you for having me. i will tell all the other guys in the office they should be envio envious. this is a great day out here. >> the ceo of brunswick corporation, new boat sales making a comeback at least in the states. >> you can imagine with the prices of gasoline falling. thanks so much. speaking of boats and yachts people who can definitely afford the top-of-the-line. cnbc has a looks at the daily worth over the lifetime of a few billionaires. eric? >> so it's because carl icahn, his birthday is on monday, he'll be 79 years old, we wanted to break down some of the numbers. if you look at how much he's worth and how much he's made over the course of his lifetime he's $25 billion which averages out to almost a million dollars
a day, $860,000 a day exactly from the day he was born until now. we wanted to compare that to other big icahns. take a look at the richest guy in the world, bill gates, at $81 billion. that's almost $4 million a day every day of his life. on the flip side, the youngest guy on the list, mark zuckerberg is worth $34 million, about $3.1 million a day. they could be buying yachts whenever they want but it's valentine's day coming up this weekend, if you're looking for an eligible bachelor the guy on the list is a man named scott duncan. we don't have a picture for him because nobody can find a picture for him. he inherited his money, his dad started an energy company in texas. he's worth $6 billion from the day he was born, $500,000 a day. he might be the guy next door. we don't know what he looks like so look out for him this weekend. these are some of our big icons in terms of how much money they've made. gates and zuckerberg only two people who made over $3 million
a day in their entire lifetime. >> that's a good number. thanks so much. i don't like inherited wealth. who wants to date a guy who inherited. i want a self-made man. >> i will take a guy who inherited wealth. i'm not picky. >> not picky. >> i prefer a woman myself. >> well, if there's none available. >> i hear you. >> not that there's anything wrong with that. >> not at all. >> by the way, if icahn -- >> respect his preferences. >> maybe he should do a bigger buyback, bigger dividend too. i don't know. seem to me that he's got the -- >> that would be fun to turn the tables on him. >> wouldn't it. >> coming up the traders are fired up for valentine's day. >> i don't get my husband anything for valentine's day. isn't it the girls that get something? >> that's just fine too. >> i'll take a sweetheart if that's open. >> today -- you didn't know they were taping you. >> that's a great feature. >> stocks -- stocks are buying
their valentine's instead of flowers. that's what i want a certificate. he's battled amazon once, made out very well, marc lore's latest venture into on-line retailer and how he's secured more than $200 million in funding and the thing hasn't launched yet. lots of movers in today's market. we will cover all the trades. halftime will be right back. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience.
call our specialists today to get up and running. is it crazy that your soccer trophy hey, girl. is talking to you right now? it kinda is. it's as crazy as you not rolling over your old 401k. cue the horns... just harness the confidence it took you to win me and call td ameritrade's rollover consultants. they'll help with the hassle by guiding you through the whole process step by step. and they'll even call your old provider. it's easy. even she could do it. whatever, janet. for all the confidence you need td ameritrade. you got this.
know that chasing performance and fewer choices in retirement. know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today.
let's hit our trader blitz. first up, salex pharmaceuticals rising after a bid from bio pharma. steve? >> i own this, own calls on it also. continues consolidation. this had been a troubled company not that long ago. it's risen. i think goes higher and it will be acquired. >> zynga falling despite posting in line earnings. what do you think sp. >> yeah. >> i think yours. >> josh? >> we're on a clock. this business is in bad shape. farmville is over, they haven't
found something to replace it. i would steer clear. >> king digital soaring after reporting a ten cent earnings. >> i will do that one too. king is the opposite of zynga although off 8% from the highs of the morning. still having a great day. this company is making a ton of money but unfortunately they haven't found another product either so when candy crush runs out i don't know what they do next. >> american express down following a downgrade and price target. >> those reactions in response to the exclusive deal with costco but the lost of that deal doesn't mean all of costco's business is going to go away. the stock is trading as if all of costco's business will go away. unrealistic. hold or buy the stock. >> coming up part of some "saturday night live" most memorable sketch. jim brewer about 40 years of snl. first he's the man behind diapers.com, soap.com, marc lore
isn't done yet. he's betting customers will go for price over speed of service. are you buying it? he's got hundreds of millions of dollars in investment and hasn't launched yet. "halftime" will be right back ♪ you can't have one without the other ♪ you just got a big bump in miles. so this is a great opportunity for an upgrade. sound good? great. because you're not you, you're a whole airline... and it's not a ticket you're upgrading,
it's your entire operations, from domestic to international... which means you need help from a whole team of advisors. from workforce strategies to tech solutions and a thousand other things. so you call pwc. the right people to get the extraordinary done. ♪ yoyour friends have your back. your dog's definitely got your back. but who's got your back when you need legal help? we do. we're legalzoom, and over the last 10 years, we've helped millions of people protect their families and run their businesses. we have the right people on-hand to answer your questions, backed by a trusted network of attorneys. so visit us today for legal help you can count on. legalzoom. legal help is here.
femalget 36 months interest-free financing, and save up to $300 on beautyrest and posturepedic. even get three years interest-free financing on tempur-pedic. plus, free delivery, set up and removal of your old set. and sleep train's 100-day money back guarantee. keep more presidents in your wallet. this special financing offer ends presidents' day at sleep train. ...guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪
i'm bertha coombs your cnbc news update. new data shows consumer sentiment fell more than expected in february to 93.6 amid concerns over wage growth, down from an 11-year high. a prosecutor in argentinas has reopened an investigation into alleges that the country's president was involved in a cover-up of controversial negotiations with iran. not the happiest of lunar new years at alibaba. there's a report employees of the chinese e-commerce giant have been told they will not receive their new year's bonuses. "new york post" says jack ma broke the news citing a rocky 2014. notwithstanding their massive ipo. jpmorgan chase ceo jamie dimon out with advice on how to handle bad employees. head to cnbc for the whole
story. back to the "halftime report." >> bet he's not nice. we'll look. taking on amazon, marc lore is the founder and ceo of jet, an e-commerce start-up that has its sights set on disrupting the amazon business model and joins us on set. hello. >> hi. >> what's the value proposition you have? i'm a prime subscribers to amazon. i buy nearly everything there for the simple reason that it gets shipped within two days for a very small fee and i don't like to have to go shopping anymore. convince me i shouldn't do that anymore. >> i'm not going to convince you you shouldn't do that, but the fact that you can basically buy anything on-line at the lowest prices, 10 to 15% below you'll find anywhere else. >> on your site. >> for $50 annual membership fee. >> i pay a $50 annual membership fee cheaper than paying for prime, do i pay shipping fees? >> free shipping over $35 and we have about 10 million products for sale on the website. >> are you warehousing this stuff. >> open warehousing consumables,
dog food, paper towels, that stuff. we can deliver basically overnight with free shipping and the rest of the products from third party mar chants. >> how many days do i have to wait? >> in terms of the ship speed? >> yep. >> overnight on consumables for the most part and everything else will come in three to five days. but because the way we built the technology which looks more like a real-time trading system than an e-commerce site we're able to reprise products a" you shop to steer you toward more economically efficient orders which not only cheaper but come faster. so that's the real sauce of the model. >> the products say you bought coal gate toothpaste the next you go on will it be crest or colegate or what you have in inventory. >> we will have about anything you want, but if you search for colegate, add that to your cart and search for detergent we'll show you the deter gets that can ship together with that toothpaste in close proximity to you and those detergents that
can will be cheaper than others that can't. you will see the prices drop on stuff that can more efficiently ship. that's how we pull costs. >> philosophical question. what happens if somebody comes along and says we could beat them by 10% because we came up with an algorithm that matches product faster. where does this lead to? are you the end all be all in terms of we've undercut amazon, we figured out a technological way to do it and there is no way to get it lower? >> in theory we've come up with the most efficient possible way of getting products to you, reprising products in real-time as you shop so there's really no more efficient -- >> why couldn't amazon do the same thing? >> is your business model membership fee based? >> we make -- >> hoping to make money on -- >> no. we only make profit from the membership so all the commission profit anything we make on selling products goes back to the customer in the form of lower prices. that's how we're able to get big discounts. the combination of the fact that we make no profit --
>> $50 a year. >> $50 a year and the idea you save hundreds hopefully. >> and how many members do you need? you must have a break point for members? >> yeah. >> how many do you need for it to be, you know, profitable as you model it out? >> after about 5 million members you sort of get to scale. that's about -- i think that's a reasonable number. >> and the reason amazon can't imitate you because you don't care about the margin on the product you're giving that away, it's the $50 fee per year where you're making your money. >> yes. >> the tradeoff i'm accepting when i do prime i know i get it in two days. buy it from you it's cheaper but three to five? >> yeah. i mean you can potentially have both memberships. think about the jet membership, pay 50 bucks a year, save hundreds of dollars full stop. you will save more money. >> how much money have you raised? >> we raised $220 million. >> and you haven't launched yet? >> no. >> how did you do that? >> i think -- >> sold the company to amazon. >> i'm ready to write them a
check right now. >> diapers.com. >> yes. >> and was that the only one? you started a couple. >> diapers.com was one of the websites under the quincy umbrella we sold. soap.com, wag.com, ten different websites. >> shaving club for men. only kidding. >> why did you come up with the name jet? diapers.com is obvious what it is. soap.com so obvious. jet, does he help people get seats on planes? >> it's a mass market play and we wanted to name -- a name that was an empty vessel cool modern and could really -- >> this is like -- >> a coopt model. >> say you get 5 million and that's your number. >> yeah. >> almost like the largest coopt in the world from that standpoint. everyone is buying in and a member and buy what they want but the whole idea is they're a member so they come to you before they would go elsewhere? is that kind of what you're thinking? >> once you pay the $50 a year -- >> why wouldn't you start at jet? >> 100% of shares is possible -- >> as long as you don't need it by a certain time.
as long as you have -- >> you can still pay for faster shipping. you will get the stuff you need, consumables overnight anyway, but anything else you can upgrade shipping. >> michele, what's your rush? >> i want it now. >> not everything on amazon is eligible for amazon prime either. >> i only buy from amazon prime so that -- two days. >> when is the launch date? >> we're set for late spring, start letting jet insiders in next month. >> so you can sikacan sign up n? >> we have about 352,000 people signed you. >> almost like a costco more than -- >> exactly. >> where you're going to make your money is the membership fees. >> just the membership fees. resembles costco in that way but we're going to offer 10 million products at launch. >> do you subsidize the shipping because of the $50 or is that coming from the companies you're buying product from? shipping is always part of how do you -- how do companies get away with that? >> i mean it's not pretty much a standard, there's a certain, you
know, minimum free ship you get free shipping and what companies do embed a little piece of shipping in the price of every product. so when you shopping on jet, once you a basket coming to your house the cost of shipping is already covered. so any product that you look to buy the marginal cost to ship is nearly zero and we're able to pull those costs out and represent them as a customer and say now is a great time to add the stuff because it ships for free. a smart cart bonus. and that will hopefully steer you to more economically efficient orders. >> cool. best of luck to you. >> thank you. >> let's see. and when you finally get launched. get your 5 million customers, wish you the best of luck. sounds fun. >> good luck. >> thank you. >> coming up the halftime portfolio, best and worst trades of the week. more "halftime report" coming up next. the competition for trader of the year continues. six halftime traders, one epic battle, who will reign supreme?
in the ultimate portfolio challenge, keep up with every move on the "halftime report" and go to cnbc pro for real-time trading alerts. plus exclusive insights and analysis behind the trades sign up at cnbc.com/pro for your limited time free preview. the portfolio challenge on the "halftime report" noon eastern weekdays on cnbc. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
competition is heating up. joe terranova is the frontrunner. jim lebenthal nipping at his heels though. this week's best play, allied financial popping 13% held by jon najarian. not all roses for the najarian brothers this week, however. the worst stock of the week, american express dropping 8%, held by pete najarian. yesterday jon najarian added a short term volatility etf and jim you sold trimble navigation and bought winnebago. >> trimble didn't do what i expected it would. it has a series of quarters where it's missed earnings and time to move out of that. win na baygo something we've liked for a long time. the american dream at least for some of the baby boomers of retiring and hitting the open road in an rv is still alive and since the great recession they've grown nicely from about $600 million in sales three years ago to a billion now. a lot of cash on the balance sheet which allowed them to institute a dividend. here's the catalyst. they'll report earnings in about a month. last quarter they missed on labor costs that we think are
temporary because this is a very well managed company. so the catalyst is out in a month. >> i thought you were going to say gasoline prices. >> no. you know what, michele, actually people buy these things regardless of gasoline prices. >> when you said the data points i thought so. i said big growth but -- >> when you think about the cost of similar vacations whether it's a cruise, whether it's an airline ticket, they actually go up hand in hand as much as rv fuel costs. it's actually not as sensitive as you might think. >> interesting. you can follow alls the action at cnbc.com/pro. p-r-o. love in the air forget spending $50 on a dozen roses. what our traders would give their valentine's instead. ♪ >> for valentine's day why spend $50 on some roses that are going to completely die in a couple days. instead why not combine both ford and gm combined $50, gives you an opportunity, my wife loves these trucks, honey, this
truck is for you, the f-150. giddy up. >> apple because like flowers they expire which means i don't have to think about a gift next year i can buy the apple calls again. the gift that keeps on giving. >> plain and simple buying limited brands. >> what would i get my valentine's two copies of the book because they can make a heck of a lot more money, lot better than roses or chocolates, if you have knowledge. >> i'm buying foot locker for my husband so he can buy some sneakers and gear and workout with me. >> for valentine's day, instead of a $50 bouquet of roses i would buy a $50 barrel of oil for my sweetie. besides i actually like my valentine's like i like my oil, light, sweet and crude. >> that was clever. >> that was a great line. >> clever. >> many truth is said in guest.
? every joke there is a whisper of the truth. >> can you say that on the air? >> buy the wife the same thing next year? come on. >> i'm tired of buying her a dust buster -- >> you did not buy her a dust buster. >> i'm only kidding. >> casanova. >> hey, man. you know. >> all right. coming up, want to celebrate your valentine's day with a free burrito? questions no one is asking, what you need to do to cash in. it's today's worst trade, next celebrating 40 years of satur y "saturday night live" with some of the traders' favorite sketch. >> i am divorced and i live in a van down by the river. >> good day. >> yeah. ♪ >> the ladies man himself joins us after the break on halftime
i can't wait. this sunday op our parent network nbc, "saturday night live" celebrates 40th anniversary and we're joined on the phone by the ladies man himself, comedian and actor tim meadows former snl cast member attending the special, i hope? >> yeah. i'm actually in new york. so i better attend it or it will
be a waste trip. >> who are you most looking forward to seeing when you're there this week? this is a reunion of old former cast members, people you haven't met before you want to meet, besides people wanting to meet you, of course? >> i'm sure nobody wants to meet me. >> that's not true. >> but i am looking forward to meeting taylor swift. that's who i want to meet. >> really? >> because, yeah, because she was -- she was born the year before i started saturd"saturdat liv live". >> that makes me feel old. >> yeah. how do you think i feel? >> hey, it tim, who has been on the show -- you were on for ten years. so that makes you one of the longest running members. who was on longer than you and after ten years, i hear while it's hilarious watching it it's gruelling from everything you hear? >> yeah. that's why i could only do it ten years. because after ten years i just felt like i was sort of burnt out from doing it. but i think keenan has been on
the show for more than ten, darrell hammond i think was on more than ten, seth myers, i think was on for like ten. and i want to say fred armystan was on for ten. they would all tell you that it goes way quicker than it sounds. >> how many cast members are expected and how big is this going to be? >> i have no idea. you know, i think -- i read somewhere there's like 140 old like or 114 or something like that cast members so i'm imagining i guess i would imagine that, you know, all the ones that are, you know, living should be there. knock on wood. that includes me. >> tim, it's josh. i'm a really big fan. obviously i thought the ladies man was probably deserving of at least one sequel. were there any other characters that you played that you thought could have been fleshed out a little bit more or may still be in the future?
>> well, one of the characters i loved doing was the prospectives lionel osbourne and i really liked doing that and i thought it was a lot of like history th had the show that aired 4:00 a.m., and it was a community access. the network had to put it on in order to fulfill certain requirements. i love that idea that he had this job that he had forever. it was the local station that was forced to air it. that character was created by al franken, so i didn't have any, you know, control over what happened to it, but that's one character i always loved doing. >> tim, was there a host that really stands out in your mind? either as being really funny or you just had a great time with or maybe a little crazy?
>> one person that made me laugh the whole week was -- a couple of people. sinbad was one person that i laughed at a lot. i thought he was a really funny person. he surprised me how funny was in person. i was really surprised by him. i would have to say, like, probably during my era, christopher walkin was the person that made you laugh no matter what he did. he is very ease where i to write for because he just made very weird comedic choices, and you would just love it. when comedy goes bad, it's
really bad. to be successful is so incredibly difficult. when the timing is off, it's just -- i don't know. there's some kind of special sauce or magic that i know i have zero of. >> the thing about comedy, you're right, is that, like, you have to achieve something performing comedy, and that is you have to make people laugh, and, you know, you can't make everybody laugh at the same thing. to fail in it it's tough because you are -- you are trying to get a reaction from people, and if you don't get it, then you fail. it's not like that when you are doing drama. you want to feel emotion. like with comedy, you want a
specific reaction. >> who would be best suited for josh or jim? >> he is on the phone. >> i know. you heard you ask questions. >> you know, i would go -- i guess it's hard for me. i would say it's a tie. i would settle like the joker did in "batman returns." two pool sticks. you go at it. whoever wins. >> saturday night live 40th anniversary special this sunday on nbc. i really can't wait. on this friday, the 13th, the unluck where i trades due for a rebound. that's next on the half hour time report. equals great rates.
if legalzoom has your back.s, over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here. sunday dinners at my house... it's a full day for me, and i love it. but when i started having back pain, my sister had to come help. i don't like asking for help. i took tylenol but i had to take six pills
to get through the day. so my daughter brought over some aleve. it's just two pills, all day! and now, i'm back! aleve. two pills. all day strong, all day long. and now introducing aleve pm for a better am. at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda.
>> utilities lagging 4% for the week. >> did you see the ten-year? the ten-year above 2%. that was last year's great trade. it was the leading sector in the market, leading sector in the market the last few years. >> i am so old. i am so old that when i started at cnbc, every ten or 15 minutes we did all the boards, and we would show utility sector every 15 minutes, and i can remember ron insana saying every time the interest sensitive utilities. we forget, there is your -- it's dividend. you couldn't get anything on the yield side of the bonds. you can move to higher rates, and you will look for more growth. >> it's a pro-cyclical moment
whether it lasts or not. people are bored of the old nar ti, and they're willing to put some chips in areas that say, hey, maybe there is something to this after all. combination of european stimulus, et cetera. maybe there's a reason to own some of these other areas. >>. >> we had a temporary retail sales figure yesterday, and that came on the heeldz of last month, which is truly awful. luckily, i don't believe it, first of all. i think we're going to see in the next couple of weeks as retail earnings comes out for macy's, target, kol's, wal-mart. we're going sew to see the consumer -- >> you noticed the restaurant and nightclub segment of these reports. that stuff was on fire. i think people are spending on experiences more than they're going and buying another sweat shirt or retail store. >> when you start -- >> it did. >> all right.
>> i was 5. >> oh, jeez. those are fighting words over there. >> today's worst trade. romance discounts. qdoba rest restaurants are offering free food to honor valenti valentine's day. order a ber burr ito and then kiss a patron and then get the second one free. mcdonald's has a pay are loving campaign. i don't know what that means. starbucks stores equal a pairings menu offering discounts for those that have their first match.com date at the coffee chain. >> at burger king they're doing the seven minutes in heaven closet. you can win some nuggets and -- i don't understand. >> who wants to feed their
valentine 7,000 calories? >> imnat trades that are unlucky, but you are hoping will turn around. >> stratus. >> first solar. >> long natural gas via san juan base and royalty trust. >> that's it for us. power lunch begins right now. >> halftime is over. power lynch and the second half of the trading day start right now. >> oh, it's almost ugly there. we almost had an accident. tyler matheson here. welcome, everybody. almost got them there. whoa, baby. >> hello. i'm mandy drury. well, record breaker. the s&p popping into unchartered territory is currently sitting at 2,091. the dow is back up 18,000 earlier on today, and a 15-year high for the nasdaq. ty. >> and valley of measles. new information today about vaccination rates and the dangers out in silicon valley. >> and deep in the heart of teth