tv Fast Money Halftime Report CNBC March 12, 2015 12:00pm-1:01pm EDT
succeeded. >> we will spend a big part of this year as watching new entrants follow what hbo and hulu have done already. that does it for "squawk alley" as the market hangs on to a gain of 191 points. wapner has a big show. let's get back to hq, the judge and the half. ♪ >> thanks so much. welcome to the halftime show. meet our starting lineup for today. joe terranova is the senior managing director at virtus investment partners. josh brown is ceo of ritholtz wealth management jon and pete najarian the co-founders of optionmonster. member favor is cio of cambria, steve liesman here on set with us as well. our game plan looks like this. on the offensive, as lumber liquidators fights back the stock is surging we are live with the latest ahead over big interview friday with the founder of that company. pass the palalcohol as the
controversial cocktail wins u.s. approval. the product's creator is with us live. jim cramer will stop by as he celebrates ten years of "mad money." we begin with the markets where the euro rebound and the dollar drop helping stock gain footing today. big gain and financials leading the way following the government stress tests. morgan stanley by the way on track for its best day this year. it's not all great news today. intel cutting guidance, retail sales disappointing and pete, maybe that's why the market is responding in the way it is. you have three things about the fed, the dollars's movement today, factoring into the conversation, the data, maybe has some people thinking okay, patience push it off a little bit. >> maybe not raise in june. >> feels that way. we'll find out soon enough on the patient word and when that will be removed. look at what happens last night it was about the banks and some of the numbers and look at 28 of the 31 getting through, and obviously some of those names
immediately making some of those moves they did. you can see the move. joe asked yesterday have we been seeing much in the way of options coming into the various financials. some of the names that did see options one american express had very short-term buyers looking for upside. the other one was yesterday. in the middle part of the day with morgan stanley people looking for an immediate move out of this, coming out of the stress test. they got exactly that. judge, these financials are off to the races. i think it's probably a little bit heated up right now so i wouldn't want to chase them yet. >> liesman, you think enough people are focussed on what happens next week with the fed? it's about the word patient at this point or what? >> i have to take my hat off to you, judge. if i was wearing a hat that is. you were the one who a couple weeks ago started asking the important question, was the market ready for the quarter point hike that everybody thought was coming. the volatility that has surrounded recent developments tells me it was not. as much as you can talk about something until your hair comes out, clearly i have, that there was this possibility of a rate
cut on the table, the market wasn't ready for it. what we saw today in the last couple days is the idea that with the surge in the dollar which is going to have a big impact on u.s. inflation and we saw that this morning in import prices down 9% year over year and not just petroleum, ex-petroleum prices, weaker retail sales which i believe is almost entirely connected to very severe weather, that you have reasons for the fed to be patient with the word patience. >> you've been building the case in the last several days they could leave patient in and still make a move in september. >> i think that's entirely possible they could hold off a little bit leaving the word patient in. i don't know the answer to this but i think the fed is going to be concerned about what removing the word patient is going to mean to the market and it's going to mean, whoa, patience is gone, it's time for me to price in the whole spectrum of rate cuts for rate hikes from now until the end of it. >> somebody e-mailing me that says are people now trading the word patient, #ridiculous.
>> absolutely. >> that is where we are. >> wait a minute. wait a minute. why wouldn't the fed -- what's the point of all this communication if they don't want the market to get ready? if they remove -- this is like a monte python sketch. if they pull a word out of the statement that causes some people to sell and other to buy those things from them what's the difference? right. doesn't the fed communicate because it wants people to be prepared? i don't understand. >> prepared for what? the logic is that when you're ready to do this, when you can see the lights at the end of the tunnel here of raising rates, that's when you might remove patience. but if, in fact, you have things like lack of clarity in the data because of the weather, uncertainty about how the dollar passes through to inflation, with a mandate, josh, you're missing already, and likely to go the other way -- >> hold on. when will you not have uncertainty, when will you not have weird weather? >> probably in the spring. i mean we had a very, very
severe winter and everybody knows it. it looks like weather wise it was more severe than last year, if that can be believed. >> leave the weather conversation to al roker and our friends at the weather channel. you're a [ inaudible ] guy -- >> loving this week. >> loving this week. >> what's the message of the market? what are the models telling you where you want to be right now? >> the way we look at the world right now in our minds there's no question that we think u.s. stocks are expensive, all right, across almost any valuation indicator. that's the bad news. not in a bubble, it's not terrible, doesn't mean they have to crash but doesn't mean there's a lot of opportunity elsewhere in the world. the valuation macro indicator we look at, 10-year price to earnings ratio shows a lot of countries in europe emerging europe, russia and greece, equities are a much better choice as we're getting into the year six, year seven bull marks in the u.s. >> how do we dispute that fact?
you can't really dispute that, joe. we've asked this question for weeks, whether the best place to bes is in the u.s. or elsewhere. you look at the returns that have taken place elsewhere, europe up 16, india 5, japan 7, go down the list, spain 7, russia 9, s&p is flat. >> well and a lot for europe and japan and india has to do with what they're doing with fiscal policy. i just think when you bring it back to today and what's going on in the markets, listen, how could you not be confused by the price action of the last couple days and how can you not believe volatili iatility will continue. financials have rallied today. they're going to take the baton and continue to see inflows into financials or other side of the equation steve liesman sitting with us here talking about what federal reserve is going to do, talking about a higher dollar, talking about concerns about inflation, okay, the dollar is lower today. where's oil? oil is lower today. oil should be higher today. why is it not? so confusing tbs, volatility
continues, and oil is going to take us down or the financials are going to ride us up. >> want to show you, scott, what happened this morning as a result of the data of the retail sales. we do our rapid update and average the tracking forecast on the street. big move, down 0.3 of a point. we're doing low 2s instead of mid 2s on the tracking for gdp in the first quarter down at 2.2 which will be a repeat of the fourth quarter. still a lot of data to come, figure out what happens with the consumer but doing low 2s. >> 2% economy with real concerns about, you know, where some things are going. doc, how do you play it? >> well -- >> all about what's going to happen midweek next week. the only thing that matters. >> it's not all -- >> what matters more than that? >> it's going to matter for 24 hours or less. >> 24 hours or less? it could set the direction for how the rest of the year trades. >> yeah, it could, but i don't think it will. i think judge, when we -- the market mispriced the employment
datas last week and shot the 10-year up to 2.26, steven, we're down 8% from that already. we've got negative yields op austrian debt, out six years into the future, german 10-years went below 0.19 this morning. if anything thinks we'll do couple from that and our 10-year rate will move up to 2.40, 2.50 with those rates all doing that, i say sold to you. so in other words, i think any of these big moves up in the 10-year will fades and you should be selling those moves to the upside in terms of yield. i think bonds continue to soften i mean rally, rather, and the yields continue to soften, move back to 2, break down through 2. so 2% you're right, but it's not just a gdp number it's the 10-year all year. >> you want to weigh in on this? >> you know, the best setup for us in the world is when we think both value and momentum works, right. trends and momentum.
had you had me on the show a year ago i would have saids the same thing and wrong the value side. the trens are still there. we run etfs that do deep value and global momentum and they're not intersecting. it may be changing this year but most of the momentum is in u.s. dollar based assets, stocks, reits. certainly not commodities. the value stuff we think going forward, one, three, five years incredible opportunities in europe and a lot of smaller companies. >> so member, getting back to the cyclically adjusted p/e ratio which i think is a large part of the input for your global value fund looking for countries selling at a steep discount to the rest of the world based on ten years worth of earnings up with of the arguments against this thing and looking at countries relatively the makeup of these indices is very different. the point has been brought up europe has a lot more banks than we do. we have much more tech than other areas of the world. is that stuff terribly important or not really because the makeup
of these indices is bound to change over time anyway? >> here's the thing when looking at deep value and globlly as well, there's 45 countries around the world no reason to look at one. most u.s. investors have 70% in the u.s. they should have 50 abroad. looking at foreign countries the countries in crisis change, right. right now it happens to be greece or russia or whatever. go back a few years it's a different country. norway's banking crisis in the '90s, asian countries. u.s. was one of the cheapest markets in the world in the '80s. they changed places based on whatever the horrible geopolitical news is and usually that's the part of the strategy buying into countries that makes you nauseous. who wants to listen to the show and buy greece and russia. no one. it feels physically painful that's one of the reasons deep value works. of course the sectors will be different because that's a good thing, right, if you're agnostic as the value go where the cheap
stuff is. some of the financials abroad is scary but i think it's a great spot. >> before we go, the fed cares about how the market will react. >> yeah. >> to whatever it does. it must though that no matter whether it pushes the hikes down the road, the market is going to get upset in some respects no matter when. >> that's right. >> it happens. >> that's right. >> so how do they factor that in. >> to josh's question, i think he wrote up earlier, they could take patience out and provide other assurances that rates will remain low. other parts of the statement that say that. all they can do -- remember back when -- >> take patient out and put extended period in. >> sin know mimes for patience. >> they did it the market got upset and they came back and did it again a different way, ended up doing the same thing. it may be a trial and error process. >> thanks. coming up two big ipos, two big earnings misses.
we are trading box and shake shack and why one of the traders calls box hot garbage. >> are we really going there sp. >> that's what they wrote. they wrote it. >> all right. >> plus, would you drink alcohol served in powder form? you could be able to as soon as this summer. we talk to the creator of palalcohol later in the show. jim cramer celebrating ten years of "mad money." join us live on the set and share lessons learned over the ten years behonds how to make a cocktail which jim knows how to do. straight ahead on the half. 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. i'm type e. my golden years will not just be gold plated. i had 3 different 401(k)s. e*trade offers rollover options and a retirement planning calculator. now i know "when" i'm going to retire. not "if."
shake shack and box on the move. to dominic chu for the latest and they're going not in the direction they want to. >> no. but one of them that might be a little bit turning things around a tad bit here. rough morning for both of these guys, these freshlly minted ipo companies, first reports as public ones. box and shake shack reporting losses in the first earnings report. box booking a loss on increased operating expenses. the cloud storage company disputing a calculation error saying they may not have missed expectations. now aaron levie will be on "closing bell" today to defend that position.
we'll be watching closely. shares of shake shack getting burned as the burger joint expects slowing sales growth later this year. you can see there they're down by about 3%. they were down as much as 10% in early trading for shake shack. back over to you guys. >> thank you so much. let's take box first. as we did our tease here saying you had strong opinions about the stock. >> well, yeah. no, i think what the company has done is admirable. i don't think it's a bad company. they were clear in their s1 they have no intention of earning money any time soon. you knew what you were getting into buying into it. i think it's a commodity business ultimately. i understand they think they will be able to layer on value added services but that's an if. in the meantime we're basically talking about storage. it's not quite that unique and i think that this is a company that's around way too long not to be earning money. 8 years unprofitable. i said stay away the day it became public and stand by that.
i don't think it's cheap enough by any means based on the beating today. >> talk shake shack cramer makes the comment thinking about only this stock or already own it the company has to grow into its market cap, right? >> look how fast. >> that's the only reason, you have to be willing to accept that. >> fine. >> if you own the company. >> agree. look how fast the institutions came in and bought up that dip. this name was down 9%. it's almost flat on the day. everyone understands that this is not a cheap stock. but the great consumer growth stories of the last 20 years were never cheap. you never had a chance to pay a market multiple for any of them and when you look at shake shack at what they reported, thought it was very reasonable, not setting expectations too high, they're going to open 10 to 12 stores a year u.s., going to partner overseas, i think this has the potential to be a very big business. i get the fact we're discounting a lot of future growth now but the market wants to own the name. >> you're an owner and long
that. joe? >> i mean let's think for a second looking at a chart at how the stock has traded since the ipo. it came out, you know, basically on the first day you got a 21 print to think about it and it has not been below 40. the all-time high 46.90. it's more than fine. it's telling you not only that it's fine but wants to go to 50. that's really what today's price action is about. >> it's moving higher as we speak. >> sales were great here, judge, and obviously this is the first report, but i think sales will continue to be good. the issue here as far as growth is, same-store sales and what josh touched on as far as the opening of new stores, the faster they can ramp the more it can grow into the valuation you spoken of. clearly revenue, people like the name, mainly, you know, this model that's not all over the country yet, as it moves out, then i think -- >> right. it's 7.2%, same shack sales -- >> same shack sales.
>> you have a company where analysts, they all know it's expensive they're dieing to upgrade it, they can't at these prices. something tells me they have to hire. >> you moved shake positive albeit briefly. coming up lumber liquidators shares are up big. speaking of being in positive territory. the headlines and of course the trades. plus, jim cramer joining us to talk a decade of "mad money," special anniversary show tonight at 6:00 eastern. he's got another great lineup, ceos of chipotle and boeing, probably surprises too. halftime back after this. 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
do you want to know how hard it can be to breathe with copd? it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled copd maintenance treatment that helps open my airways for a full 24 hours. spiriva helps me breathe easier. spiriva respimat does not replace rescue inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva respimat. discuss all medicines you take, even eye drops. if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain or problems passing urine, stop taking spiriva respimat and call your doctor right away. side effects include sore throat, cough, dry mouth and sinus infection. nothing can reverse copd. spiriva helps me breathe better.
to learn about spiriva respimat slow-moving mist, ask your doctor or visit spirivarespimat.com let's go under the radar with a couple things traders are watching you might not be focused on today. dr. j what do you got. >> when i got the new operating system update i happened to notice a thing popped on my screen from apple that i'm talking about. >> ios update. >> ios 8.2 or whatever. take a look at that little thing there, looks like an o. when you click on it it is, in fact, the apple watch and it tells you all about the new apple watches that are coming
out. its asks you if you want to start pairing that item yet. >> you going to buy one? >> i don't think so. >> you're wearing -- >> i think he is. >> if they can put one in here i'm in. >> the school bling. >> we'll see. i don't want to dismiss -- >> what are you laughing at? >> he's laughing. he has a grand father clock on his wrist. >> it's all good. all about jewelry, not about time. >> marketing mastery by apple because think of all the folks that downloaded that new operating system or are going to and you can't delete it once it's there. >> are you going to buy the watch or no? >> i don't know yet. >> i am going to answer for him. same guy that got the google gla and all the rest. >> i returned the google glass. i still don't know that -- >> you lated on it and now going to buy it. >> i want to wear another heavy thing on my wrist that i have to plug in every night. >> josh? >> i have no comment on any of this. it's bizarre.
>> what's your under the radar thing? >> oh. >> under the radar. focus. >> let's talk about bank of colombia. >> wipe your brow and breathe. >> this might be the poster child of fears over rate hikes slash fears over commodity prices. cib the ticker. new york stock exchange adr. this might be the most oversold stock in the entire market. it's got an rsi right now of the 14 which is very, very oversold. >> ask a question, you're sloutsly moving the stock as you're talking about it. do you own it? >> i think that there's a great trade to be made here long. i am not currently in the name but i wouldn't be shocked to see it snap back. the last time it traded in an rsi this low it was a great buying opportunity temporarily. it's still on a massive downtrend. >> okay. pete, unusual. >> yeah. united health today, right, a lot of unusual things going on. unh hit with the people going out to the march 27s, the ones after the normal march
expiration cycle getting the extra week and looking at the 113 calls, buyers at 250, lot of folks if you look at the chart the stock has been moving higher people think it's going higher. >> another tough day for oil even as the dollar moves lower today. crude down more than 1% as joe was noting earlier. jackie deangelis has more. hey, jackie. >> good afternoon, scott. if we see crude settling at these levels, it could be the lowest close since april. sto sorry, distracted by the singing in the gold options pit. we have a dollar taking a breather a little bit today and oil is also falling. that's not a typical relationship. what do you make of it? >> well, to me it means that oil maybe does have room go on the downside. i still think this is just an elongated bottoming process and it's gone on for six to seven weeks and maybe it does have its eyes on the lows of 45 bucks. and i think that will hold. i think that this is going to take a while before it chooses a
direction and it's been consolidating tightly in the last few weeks. it patrols the lows a little bit. >> having said that, that we may bounce around a little bit more, you guys are traders, you to pick a side, are you long or short? >> we're short, jackie. it goes to the supply side. we're focused on look at crude oil supplies and inventory perspective rose 4.5 million barrels. 80-year high, nine consecutive weeks. speaking of 80-year-olds i think he is right and we go longer. maybe he's an elongated bottom we'll talk about that on-line. >> we have a lot more on-line. we're talking to marc faber about the markets and bond market as well. probably know what he's going to say. he has his next warning for you. tune in 1:00 p.m., futures now.cnbc.com. >> thank you so much. talk to you soon. >> coming up the latest on lumber liquidators. we've heard from a bull and a bear on the stockp. but what did the company say today on its conference call?
that has shares moving sharply higher? plus, don't miss our first on cnbc interview tomorrow, that's with lumber liquidators founder and chairman tom sullivan here on the half tomorrow at noon. and coming up -- jim cramer, ten years of "mad money," many great moments as why you know and who could forget this one. >> he's nuts! they're nuts! they know nothing. >> he knows a lot and coming up live on set next.
european markets are closing. simon hobbs are with the headlines. >> day four of sovereign debt buying across the eurozone and actually the important point most of the major trades have paused. the equity markets are flat, euro above 1.06 and the yields have paused for a moment as well. we got an update from the point person at the ecb on what they've done so far. he says this is the head of operations in the first three days of the week, they bought almost 10 billion euros of sovereign debt. that's a much more rapid pace than you might expect but it
will hit their target because there are fewer days in the month. the average bond maturity was nine years, roughly reflects the outstanding debt in the eurozone and also to avoid the negative rates at the short end of the curve. they said they wanted to insulate the eurozone from a bubble or create a bubble around the eurozone with reference to what's happening here in the united states and he actually stopped the idea they could extend beyond the existing date. a lot of people are questioning whether or not there could be an early end to qe as a result of what deutsch bank called the shredding of the yields. back to you. >> thank you so much. now to sue herera for a news update. hi, sue. >> thank you very much. iran's leader says a letter from republican lawmakers warning that any nuclear deal could be scrapped by the next u.s. president was the, quote, ultimate degree of the collapse of political ethics. the ayatollah is worried about the outcome of the talks. the governor of china's cen
brawl bank said there is no need to change its monetary policy despite evidence that the second largest economy is losing momentum and said he is not worried about the u.s. fed's next actions. viacom agreed to pay $7.2 million to settle a lawsuit filed by thousands of sberns who said they weren't paid despite doing work to paid employees. it covers interns who worked in new york from 2007 to 2013 and in california from 2010 to 2013. raising the minimum age to purchase tobacco to 21 or 25 would significantly reduce use and related illnesses in the united states according to a study published by the influential institute of medicine. you're up to date. that's our news update at this hour. back to you, scott. >> sue, thank you so much. it is a story as you know we've been following here. the lumber liquidators fallout. the company went on the record to address those issues today. really fighting back to tell its side of the story.
scott cohen is live with all those details. that, scott, is what this was. the company story -- >> yeah. scott this is really part of a well-worn playbook. company gets hit with product safety allegations including a national tv expose, fights back, produces its own response website complete with slick videos an sets out to reassure wall street this is all the work of short sellers. this morning's conference call was part of the strategy if you look at the stock the call began about 10:00 eastern time had the desired effect stock up about 13% on the session today. founder and chairman tom sullivan was not on the call. ceo rob lynch set out to reassure investors and customers. >> we are incensed that individuals with a financial agenda can orchestrate a campaign against us regarding the safety of our product and cause a portion of our customer base undue concern.
>> by the way, rob lynch says formaldehyde, what all the fuss is about, is a naturally occurring chemical that's all around us. but it is a carcinogen and regulated by the state of california and soon by the epa so the companies says it complies with the regulations and then some. so what about the tests that "60 minutes" commissioned using the procedure laid out by the state in lifrp says they used the wrong test and we've confirmed that state testing procedures laid out by the state are not the same as the ones that the regulations require. welcome to california. but that doesn't explain why lumber liquidators' flooring tested so much higher for formaldehyde than the competition's did and the company is it mot take questions. >> they will tomorrow, i know you know that. when the founder and chairman tom sullivan is on first with us at noon. there's obviously plenty to discuss with him, plenty to discuss with you guys right now. anybody dabbling in this fame.
>> name? >> i bought it after our show when bob chapman made that his case. i bought it and sold calls. the reason i sold calls against it the calls up over 100% volatility. you expect that for a stock that has such a dramatic drop and bounce back on the chapman news yesterday. that bounce back has continued today and the volatility sh shrinking good for anybody else who is a call seller as well. >> are you a short timer? >> i'm in the options that expire next friday. i'm long the stock and short the options that expire next friday move to deep in the money today that's a good thing. i hope it stays here or higher. >> boo-yah, jim cramer celebrating ten years of "mad money." we will talk to jim abds lessons learned and he's weighing in, better get ready, weighing in on our halftime portfolios as well. plus, powdered alcohol maker palcohol getting approval from the federal regulator. the company already shaking up
controversy and some skepticism right here on the desk. we're talking to the founder, the creator of that company is coming up. p scott wapner is the place for "the halftime report" with scott wapner is the place for market moving interviews. >> when you see large currency moves and large price moves in a commodity like oil, you have to be worried. >> real money. >> what makes things cheap is uncertainty. >> real debate. >> interest rates are going to go up, they can't drop as much as they did last year to this year. >> the most profitable hour of the trading day. >> do you think dick costolo will leave that job? >> we think there's a good chance he's not there within a year. >> the "halftime report," weekdays at noon eastern. of active management. mfs, r every day, our teams collaborate around the world, to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else.
put our global active management expertise to work for you. mfs. there is no expertise without collaboration. having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car plus depreciation. call and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at
i'm cramer, cramer, cramer. >> welcome to "mad money." >> other people want to make friends. remember that. i just want to make you money. >> money, money, money. >> yep. boo-yah. >> you know what we're talking about. a guy that does need no introduction and now give him one, jim cramer, "mad money" celebrating ten years. >> thank you guys. thank you. [ applause ] >> thank you. it's a joy, pure joy. you got the greatest cast of characters here. >> sure. >> this is what i love. i love how interactive we are during the show, hear from you. it's -- i love to get your
opinion when we're in real time live talking about stocks trying to work it in to our discussion. your opinion matters. >> what matters is the show. i was talking during the break about shack and not shaq, but sha shack. it's not that you move the stock so to speak but you remind people that the big institutions are hungry to get in. they listen and say, it's not going to come in. they wrecked it. i have to buy. that's how a stock goes higher. >> you never waivered one bit are from the message you first set out with ten years ago. i was going to ask you what the biggest takeaway was for your show and i saw something you said, it says never to worry about the drama, step back, and focus only on what's important to that specific company. >> well -- >> is that the biggest thing? >> i have to tell you, i'm sitting here when we were down 360 points the other day, and i was trying to explain to someone
that night, about why we were down. and she said, but what does that have to do with starbucks. i said you're right. it doesn't. it doesn't. it's just 198 and four days -- she goes show me. i'm looking at the chart and you can't see the four days that broke my heart because if you were an individual investor you didn't report at the end of the month didn't have redemptions, someone saying you're a letter, all you have someone to report to yourself and that's what that's about. report to yourself, you be true to yourself. >> such a great point. the advantages that individuals have over us on the set, over pros, there is like i could think of ten off the top of my head. >> we have your portfolios. josh, you have disney. okay. >> that's right. >> here we go. >> i'm thinking you know what, we nailed it and had it, now a person at home is just -- they're not seeing disney until they get home and say disney is up. it's right here and you're being
graded. that makes it tough. you might think i'm up 2 bucks take it off the table and don't want to lose it. that's what you have to do when you're a pro you have a guy that you have to report to went up two bucks and didn't take it. >> don't have to sit in front of people and explain why you're down 15% in a stock you believe in long term. you can say all right i didn't get the timing right on the first buy but like it. >> that doesn't mean we can't outperform. the people at home can take their time, do what's right. give ten shares to your kid and if it doesn't go up for over a six-month period no one is going to take the money a away. >> right. >> business. the mechanics of the business. >> one of the more controversial i guess so to speak moves we've had recently in our portfolio contest is joe, rode apple to victory last year. >> the discussion yesterday. >> he sold it, he sold it this year at about 128 and change. joe you said at the time it was a short term, very tactical move, had every intention of
getting back in. the trade looks pretty good right now. right? >> it's interesting, getting into the mind well, try to sort of get into the mind of these guys, to import knowledge or export knowledge to our viewers, much in the same way you do, right? >> i heard that. the first day, my travel trust owns it, i work with stephanie link. why do we still own it. i said, we still only it because it sells at 14 times earnings and it can go up over time but -- look at the price. and you say that was good because at 122 yesterday. and i think that short term, i think you're going to be right. i don't know because we don't have data points. that's the problem. there's nothing new. not a new watch that comes out tomorrow. but you know what, i think it's fine. it's too cheap. >> it's fine longer term but a classic example of tell me something that i don't already know. what else is going to come out that's not positive for the stock. you could have earnings in april
that again kind of had the same strength of the iphone than the previous quarter. tell me something i don't know. >> got to get walmart in saying listen we surrendered to our customers going apple and like be like shack. >> you find you have to -- the way that you -- >> shack. >> that's awesome. >> the way you do your show, do you approach it any differently thinking you're speaking to a trader or investor. >> that's a great question because when i started i was spoking more to traders. i think we were a different kind of market. i think people were accustomed to thinking that you know what, you own stocks, they don't get cut in half, can own bank of america, people owned bank of america, they owned sit it ty. citi was a core holding for an individual. now you look and mike is doing an unbelievable job but the world changed. bank of america is not back to where it was three years ago. citi got wiped out. and people got wiped out. this time they didn't come back. in 2001 they kind of came back
because not everybody owned web van. but this time they didn't. way too early still. still too early. so the world changed and so i had to change with it and become, you know, i think that you could argue i became more cerebral, i like to think what i did is adjust and recognize you're not going to trade and that's fine, index fund for the bummi bulk of your holdings, if you have "mad money," starbucks or disney, index funds, you can't time it. that's different than when i started and but the world change and people lost a lot of money. >> in my portfolio i have sit it ty. do i homeland it? >> oh, my god yes. >> all right. >> there you go. >> see. >> i've been holding these things waiting for days like today and they're finally coming. >> i have to tell you, i watched your show every day. >> beat up by the guy to your left. >> you know that corbett, something when i first met mike, what made me suspicious about it. he was drafted very high and he
didn't play. you guys, you played. i said i don't know, take advantage -- and then i get to talk to him. no, he's a banker. he's a banker who knows how to play football and he's good but he's a better banker than a football player and he is a baller, he is a gamer. that guy stuck his neck. >> he's mare oweto who you will have soon. >> hey -- i said dimarco, if he comes here i'm buying everybody cheese steaks that comes to the show. >> he's going to be there. >> the dallas guys, the dallas guys, his legs aren't that good. ten minutes they were like yeah, we got him. i meet these guys and they all say -- everyone up until today, dallas going to win the divis n division, maybe make the wild card like dallas is nothing. >> dallas is taking adrian peterson. >> yeah. >> mo off the field there. >> you have to promise us it won't be another ten years before you hang us? >> i'm sorry i got on football.
>> we don't like football at this desk. >> you've been in there with me and my late pop and how heaven being a friend and doing sports. friend, sports, business. they're one. this show is about that. >> thank you. we're all fans of yours. congratulations. ten years tonight. you have a special show tonight? >> i have boeing and chipotle. >> tonight. >> that's shack senior and boeing, how about the greatest manufacturer in the world. greatest. >> a tough week with some of these guys, the ceos. none want to come on. >> starbucks, and disney. >> igor. >> benioff. >> you know what guys -- >> you even got sherman. >> sherman underscored 25. >> that guy is awesome. >> he came to play. >> a baller. >> he did like the maxwell -- >> have fun tonight. >> i love you buddy. >> jim cramer. >> mandy, what's coming up on power lunch? >> coming up top of the hour as the dollar is continuing its march towards parody with the
euro the three sectors benefiting from the currency currents in europe. big moves in biotech four names in the sector up more than 15% in the last month, so we're going to tell you who they are and how to play it. also shares of lumber liquidators talking a lot about that, up big today, down more than 30% since the "60 minutes" report questioning the toxicity of the company's product. the man in charge of the testing for lumber liquidators and what he is saying now. straight ahead on the top of the hour. you've got to join us. big show today. more halftime after this break. . . 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.
now with the you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more.
all right. a new type of alcohol made from a powder just passed another key step in what could lead to sales in the u.s. it's called palcohol, and it's not without controversy. mark phillips, the product create is live from scottsdale, arizona. welcome to the program. >> thanks for having me. >> do you think you'll get approval to put the stuff on the shelf? >> we have final approval. the federal government said you can start selling it. >> they've given you approval for the labels. are you allowed to distribute it and sell it to the public? >> yes. the label is a final step in the approval process. >> what about the fact that you got several states fighting you
on this effort? you have senator schumer of new york sending a letter to the fda to ban the product. what do you make of the controversy surrounding it? >> i think it's silly. unfortunately, people abuse alcohol and misuse it. powdered alcohol is no different. i don't see any bills suggested to ban liquid alcohol. it seems to be misguided in what they are trying to do. >> well, i think there are concerns. probably rightly so, don't you agree, that underage folks get hands on this powder? >> no. that's completely misguided. one, powdered alcohol is sold in stores like liquid alcohol where you need an id to be 21 or older to buy it. there's no way kids get a hold of it any easier, and the information i know about underage kids using alcohol, they choose to buy something inexpensive. although we have not set pricing yet, we expect it to be two to
four times more expensive than liquid alcohol. >> the risk is here people understand the limitations they have, so they say, i usually have two drinks. i'm a three beer guy, whatever the case may be. people coming into contact with the product have no idea how many scoops or lines or however they ingest this thing, what their limit is because it's unprecedented, and especially you magnify that times ten, teenagers and college kids get hands on it, you'll have things written octoberen label, but isn't that what people are really afraid of? >> i don't think so. in the last year, since the original approval happened with the ttb, the fda looked at it, the ttb, we worked together to try to make sure that it's very clear how the proper use of the product should be. it's on the label. it's clear about that. >> what's actually mixed in with the powder? it's not pure powdered alcohol, is it?
>> it's powdered alcohol, and that's all i can say about it. the process is proprietary secret. >> more than just alcohol in it, correct? >> again, i can't comment on what's in it. on the front of the labels are the ingredients of the product. >> mark -- >> per regulation. >> we appreciate you coming on. what do you do if a larger number of states ban your product? >> well, the trend right now is the states are not banning it. most recently, colorado, washington, and wyoming chose not to ban it because they realize prohibition type policies do not work. it creates a black market making it easier for kids to get a hold of it. as lawmakers understand the product and understand prohibition do not work, more states will not ban it. >> you won't give us an idea what it costs, three times liquid alcohol is taken many ways. >> well, you can guy a 50
milliliter bottle of vodka for 80 cents to a dollar. we are looking a price point of 1.99 to 3 preponderate 99. >> thanks for coming on. >> sure, thanks. second half of the trading day when we come back. there's nothing more romantic than a spontaneous moment. so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain,
as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to cialis.com why do we spend every waking moment, thinking about people? why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you, it's everything to us. the s60 sedan. from volvo. this month, get these exceptional offers on a new volvo. visit your volvo showroom for details.
can't say thank you enough. you have made my life special by being apart of it. (everyone) cheers! glad you made it buddy. thanks for inviting me. thanks again my friends. for everything, for all your help. through all life's milestones, our trusted advisors are with you every step of the way. congratulations! thanks for helping me plan for my retirement. you should come celebrate with us. i'd be honored. plan for your goals with advisors you know and trust. so you can celebrate today and feel confident about tomorrow. chase. so you can. presentation fill you with optimism?inted then you might be gearcentric. get a $15 gift card when you buy $75 in hp ink. office depot & officemax. gear up for great.
you want to amp up this final trade deal, and sort of look ahead between now and the rest of the day, right? there's a lot going on in the markets, people looking ahead, trying to figure out what happens next week. what kind of trades are we potentially looking at? what should we be watching in the last hours? >> well, one of the things, judge, on our radar was scientific games. these guys make lottery as well as machines for gaming, and somebody just rolled out of some short term options into longer term options in a big way, representing 2 million shares, so i bought that, sgms, bought the 15s out in october.
>> i think the sporting good trade got lost. i think it should be back front and center again. dick's sporting goods -- >> funny you said that, you have not talked in recent weeks. >> dick's sporting goods is back towards the highs. it's had a nice transformation, had solid earnings. the way you could play this is into -- reports tomorrow morning, take small position, if you're in dick's sell out and buy ibit, but i like the trade. >> i want to address shaq. there's a 20% move, and i'm not chasing the name up as much as it is just in the last hour or so, but i think the point is when you have a company with huge long term potential, come out with earnings report, that's not terribly consequential, and it nails the stock, those are the opportunities to buy on dips, so i think it's really great if you've been in the name, without not go crazy here as it rips higher on the
intraday, but you are watching this for more opportunity. >> locally moved the stock up during the program. pete, what about you? >> with all the bank stress tests, talking about bk, wants a shake up out there. take some off, hold on to the name. >> okay. good stuff. thanks to all of you. have a great rest of the day, and power starts now. halftime is over, and "power lunch" and second half the trading day start right now. >> hi issue everybody, mandy and, i'm tyler, rally time on wall street, the bulls are moving. look at the dow. right now, the dow, well, that cow is up 185 points at 17,820. mandy? >> look at the other indexes, nasdaq moving higher, up 27 points, s&p 500 up by 18, and the russell 2,000 small caps up by a gain of 1 %. there's a look at the action in the btf