tv Fast Money Halftime Report CNBC April 20, 2016 12:00pm-1:01pm EDT
hold. we will watch that. >> and the dow is sitting 1% of all the all-time closing highs, a and little bit more than the all-time intraday u highs, and we are up almost 14 point, and so we will go back to the headquarters to scott wapner and the half. carl, thank you so much. welcome to the "halftime report." i'm scott wapner and the trade this hour is good value or the value traps? that is the with question for the investors with the banks and intel reporting weak earnings. and joining us now is the panel, and we want to kick it off with a host of old techs laying the big egg this week. there they are, and i want to show you the market reversal which is happening as we come up on the hour this hour, and the major averages are moving higher, and oil is reversed and what have you made of this steve weiss as we are coming on the
air? because the market is marching back to the all--time highs? >> well, i thought that, and a fum ber of the investors that i spoke to noticed that the link between correlation of crude and the markets is starting to dissipate somewhat, and apparently that not the case today, and the reason that it is dissipating is that as crude consolidates and the big volatile moves go away that the algo guys are saying, i have to find something else to wreak havoc with. but i am surprised that it is trading positive and it is counter intuitive with the kuwaitis coming back on after three days off, and people are kcome fortable with having foun the downside and so it is up. >> and doc, it is inevitable that the market wants to try to retest the old all-time highs. >> and certainly pushing it. >> and slow and steady march there. >> and pushing, judge. a lot of people sold as soon as we get close to it, it is going be another batch of selling, and the question is, how quickly do the people have to cover?
if it reverses, and goes up to in other words that old high, and we break to new ground, i'd think that a lot of people would come in and sell. i don't know if they will stay short, but sell and wait, and if it is going to start to look like it is going in their face, and in other words, keeps pushing to the upside which i think that it will over time, i think that they will chase it higher, and this is going to be kindling for a bigger fire. >> and the reverse sal that you have had, and we keep hitting it since the middle of february with this low, and 2100 on the s&p, and 5,000 to be nasdaq, and retaking 18,000 and marching to 18,100 on the dow despite that earn, and yet, you know, intel is going to be playing into the conversation is not good, and it does not matter. >> and to jon's point, as we are looking at the hedge fund world, and long equitieses specifically, they are nonbelievers and seeing the mid month numbers and midweek numbers, they are not believers and the exposures is lower and they are not participating and run over in the shorts. if you were short ibm, great
call. short intel, great fundamental, and poor stock call. but it doesn't always pay to be long. >> when you are looking at the intels and the ibms of the world, and see these sell-offs as great values or simply value traps in the dynamic of the weakening dollar which is going to hepp the tech earnings because of the amount of revenues they get overseas. >> yes, in intel's case, i don't know fi look if i am look ing a ibm and it is declining quarters of the revenues, and that transition is taking far too long, scott, and in the case of intel, it is not a now story, but further out as well. when i look at the names in the transition, and they are doing everything right, it is microsoft, and cisco, and why i own cisco as a stock. i don't just own the calls, but the stock. i plan on owning it for a long
period of time, and back to energy for one second, an even when the oil is down, and sit down decent in the morning, and long before the opening bell, it is down, and the xle once we get the day going, it is barely down at all, scott, and when you start to see it poving to positive territory, and with the oil down, the energy stocks themselves were performing decently. >> and my point is on the intels of the world, and you saw cisco going higher and some of the names that you could make a credible, and right case really that the case could be sells on the earnings that came out, and which were disappointing, and yet investors were buying tem, and maybe they are buying them for the hunt for yield, and the yield place, and the weaker dollar plays, and if you think that is going to continue, and why are people buying intel today. >> and when you talk about the earnings not being great, and you are really talking about january, february, march ash and now in the middle of april, and a lot of the reasons that we had stocks that are a rough go of it last august, and frankly, we have reversed and the first being the negative sentiment
around what do energy prices have for the global economy, and it is a lot better, and that not to say it is not going to keep et getting better, and not the four-handle or the two-handle makes a huge difference and the other thing is the dollar, and it has no traction at all, and fails on the rallies, and these were the two of the things that really freaked people out about multi nationals and the global companies in general, and intel and cisco right there in the whole group. so i think that having those two trends reverse themselves, and having them report earnings for last quarter that were not t terrible or great, and it is going to set up the expectations going forward and people are feeling better, and keep in mind, mega cap stocks, and in major index, and people are shoveling money to it. >> and now, there was a magnificent job how they are tied to it, and he did not go there and he went to the data center which is something that everybody is pointing to for a long time, and the internet of thing, and the acquisition, and are they going to do more in the
data world center, and he said flat out they are. >> and is it not easier to spin the story with the backdrop that seems to be improving for those sorts of thing, and if it is a hunt for the yield thing or the weaker dollar deal or value over growth which is being favored by investors right now, and not that intel is a trash stock, but the kinds of things, pete, dash for trash, and the backdrop for the argument is better than it has been for a long time. >> and the reaction today for the intel for instance, this this thing is down, and down a couple of percent, and this morning down a couple of percent, and what stood out is that everybody was looking at the name, and $34 stock deal with the al tara deal, and then you started to see it trading in the low $30 area, it is an opportunity for some people, but it is not maybe the best place for the upside. i don't know how much upside you get, but you will get what you mentioned value and the great deal. >> and let me bring in jim lavin
thal, and jim, you own the stock, and are you sticking with it or what are you thinking of the earnings and what are you go going to do with it? >> well, i am sticking with it, and the negativity is overdone here, and first of all they did exceed the estimates of the first quarter and the only negative thing they are guiding down for the second quarter below estimates, and what is going to matter here is the time frame. if you are focused on the second quarter which is what the people in the aftermarket last night were looking for, the stock will sell off, but in the intermediate term, they are restructuringing the company in a sensible way, and taking $1.2 billion against the 750 million, and next year savings of $1.4 billion and that is the right mo in the intermediate area, and this is the overvalue which speaks to the overgrowth, but if you are an investor, you are make investment into to a company that is making a pivot away from the pcs into the data and security things. >> and so, let me stop you, why are you willing to give intel
the sben fit benefit of the dou some of the same language ta you are yusing now could be used yesterday against ibm? >> yes, and it is some companies are bert at the transitions than others. and if you go back to the 198 os, they -- 1980s, they gave up on the chip business and it was commoditized by the japanese, and then went into the processors which gave us the microprocessors and the the campaign inside which were legendary for the company and then ceo andy grove. i'm not in santa clara, and i don't know what is going on in the executive suite, but andy grove has been in the news, because of the unfortunate passing and they are saying hey, it is time for the big strong pivot and give up on the pcs which is what they are doing, and pivot the company to where
the growth is going to b and blow up the pc business to save the company which is similar to what andy grove did and what this company has a history of doing. that is why i am with it. >> thank you, jimmy. jim lebenthal, thank you. >> sure. >> and now, value versus value trap. and now, looking at the stocks to help the viewers to separate the two. what are you thinking are good value buys right now versus a value trap? >> well, so, i think that intel is not necessarily value trap, but it always sells at the multiple, and maybe it has a peak, and going back to the internet bubble as cisco did, and this is value for them, and maybe overvalue for them, and what i bought for value play is endp, and endopharma, and working for mckenzie and then at value, and so it is painted a
little bit with that the brush, but if the earnings are in fact $6 next year, i have a pharma stock that is $30 at $6 # a share, and if the earnings are cut in half, it is cheap, and there is hair. there is always hair on the value play, but that is where i will see the value now. >> and doc, sector of banks or the energy, and looking at the stocks coming down, and are they good values or the value traps, and what do you see? >> well, as you know, scott, it is not really the way i invest. i am mainly a guy that either a plays contrarian like yesterday i did in netflix or looking for the fast money. however, you have several examples and pete cited some that are old companies on the tech side, and i did not like buffett buying ibm at 195, and like it beter at the $140s, and value trap? it could be, but until warren tosses it aside, i think that you can be a buyer any time that
the stock gets down around the $135 or $145 range, and that is where i would be a buyer. >> what about energy? >> i like rig, and i have talked about that one, and transocean, and i have been in that one this year, and been in baker schlumb is what i like, and so you said at the top, this is not what i do, so if you are making a counter intuitive play or the counter argument to what the consensus is, people would look at baker hughes and slumber geriatrics and they would say they are value traps. >> well, at times they are, and there were steals earlier in the year, especially transocean, when you look at the stock and how imka off as soon as oil stabilize at all, there is more in the fracking space as well. i don't want to mention the name, because we are busy trying to make acquisitions, but that is the next one. >> and if you say over 40, and i
will say the same name conocophillips, because what they did when the panic was in, and the oil down to the lows, when you are over 40, you want to go with the guys positioned for the oil as it is moved to the upside with torque. all you have to do to look right now, scott, and put on exxon, and chevron and concoe, and put up the three names, and who is performing since we looked at the bottom levels in february and if we hold 40 and continue above this 40 level, that is the name to own. >> josh, a value buyer or trap? >> well, deere. this is the buy. we said nit in the low 70s on te show, and probably five or six times, and the reason is very simple, this is the stock that now no longer goes down on bad news. if you will take a look at the price action in the last week or so, and you are starting to see the accumulation become apparent, and we know that buff fit is a size buyer, and he is clearly buying on the dips and the style, and that is the way that the stock is behaving and one of the most hated sectors, but it is a classic iconic
american company, and when farm incomes get a little bit better, and the global depand for agricultural gets better, this stock is massive leverage to that, and it is going to go a lot higher from here, and look at it from the s&p 500, and almost 40% returns for the market, and less than 10% return for deere, and this is the trade that could play catch up, and i is still cheap after the move. >> this is what is coming up on the halftime report. still ahead, getting a seat on the plane. >> step aside, sir. >> brad cursener of hedge fund altimeter is going to join us exclusively to talk about the deal that he just struck with united airlines. and plus, rising above, the trend that josh is watching in the markets that you may have missed. he is going to explain why it matters. and -- ♪ i'm like to buy the world a coke ♪ >> but nots enough of the world is buying coke, and should you buy the sell off? we will debate it. it is all coming up on "halftime
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going to get what they want, but they will get something. in is how the board will be overhauled and reconstituted if you will. two new members are added to the united board, and independent director is going to be named after united and par, and they come to some agreement, and that is going to be happening by october, and the new nonexecutive chairman of united airlines is former president, and ceo of air canada robert milton. and what about oscar munoz? they have said they are not out to take oscar munoz' power away, and he has been on the job for six months, and because of the heart transplant and other problems, he has not been in the office day-to-day for the last month or so, and he is going to defer to adding the chairman of the board role until the annual meeting in 2018. by the way, oscar munoz is going to be joining us tomorrow mor g morning here on cnbc and you do not want to miss this interview. squawk on the street, and president of united airlines oscar munoz, and by the way, it
is also earnings day for them. they will report after the bell today, and the expectation is for earnings of $# 1.18 a share, and the thing that people are going to be focused on is what is the outlook in terms of reven revenue. and they need a lot of pressure on revenue, and we will see what the company has to say about not only the first quarter, but the remainder of the year. >> yes, we will look forward to that and the big interview tomorrow. thank you, phil. phil lebeau with the latest from chicago. and now, joining us by phone is brad gerstner and welcome back. it is nice to speak to you today. >> thank you, scott, for having me on there. >> and so you have two players to be named later in the sports parlance, but only one of the original six that you put for wart and so is this a victory or the defeat? >> well, scott, let me first appreciate my appreciation to
oscar, and bob milton and the entire board, because change is not easy, and we moved in good faith to move the company forward, and with that said, oscar led the front and embraced the change. at the next meeting of the board of directors, there is going to be five new directors with a sixth to be named and new careman and those folks bring a vast amount of experience to the board. we could not be more excited about what that means for the the company's future, and this is never about individuals on the slate. this is about bringing change to the boardroom at united that could help to move the company forward. and when we are looking at this, five new directors and a new chairman and sixth on the way with a vast amount of airline experience, we are really excited for the impact that is going to have on the company. >> and a lot of people, brad, they are wondering where gordon bethune fits in all of this, because he of course, was there
from the beginning as your independent chairman choice, and then that sort of changed and now that completely faded and what happened? >> well, as gordon said from the start, this is never about him or any one person, and as he said said, he was in this to improve the airline that he loves, and he has shown amazing leadership in the process, and first to set aside the e ego in order to get this done, and he is always focused at every step along the way, what is best for united and the employee, and as gordon said in the press release this morning, he's thrilled with the outcome, and looks forward to continuing to be helpful to oscar when we move forward. >> and was it a nonstarter from the united point of view that gordon be part of this, and you can certainly imagine that if it was that oscar munoz wouldn't want gordon bethune of all people looking over the shoulder while he is trying to run the company. >> well, that is just a
misunderstanding. there were neither side started with non-starters. we both worked collaborately from the start talking about what is going to be best for the company, and talking about what change was needed and what experience was needed on the board, and nobody on either side was drawing lines in the sand as was reported and it is that spirit of collaboration that led to this terrific outcome. rarely do you see that board change of this magnitude where you have five going on six new independent directors of the board, and remember we have two new directors representing labor, and that is going to be eight new directors out of the 15-person board. i think that everybody can agree that it is significant change, and we believe it is significant change for the better, and that working with this new management team could move them forward. >> we could not help but notice
that there is an expectation that this is one of the board members added, and instead, ed shapiro of par goes to the board. what should we take from that and is there an issue between altimeter and par and an issue that you ultimately decided that it is right not to be on the board? >> i can dispel them that there is no bigger fan than pr and it is reciprocal, and paul reader and ed shapiro are some of the best in the business, and ed is a fantastic member of the board, and what is said with gordon, this is never about me, and i have a firm to run, and i am looking forward to being helpful where i can, and i am thinking that this is a case study in how you can come threw one of the events with management and the shareholders who were seeking change, and really work collaborately and got along with the process, and got along with the process, and getting to work together to achieve the ultimate objecty which is moving united
forward. >> what do you say to those who criticized this from to get-go, and there are many other targets out there, and united may have underperformed some of the airline competitors, and dramatically outperformed the s&p 500 over p many met -- over many metric, and you heard the critic critics, and you know, your very own jim cramer is outspoken in criticizing the effort. i just think that there is no notion of shareholder involvement or the activism is per se bad. i disagree, and when dun right can help accelerate the changes and it is beneficial for the company, ands or car was looking to implement change, and we worked with him to bring the change changes along faster, and but, this is a company that is doing well, still underachieving the potential and under oscar's leadership with the help of the
new board, we are confident, and this is going to help transform this airline with the competitors, and so frankly, providing a much better outcome not just for the shareholders, but the employees and the customers. >> and not that jim needs me to defend him in any shape or form in any way, but he would say, look, the stock dramatically outperformed the s&p 500 over the last three years and maybe better targets to go after if you will if those are the correct words to use even. is that a fair question to ask? >> well, first, everybody in business is not judged by absolute performance, but it is on the relative performance, and everybody in the industry, and no industry observer disagreed that united has underperformed the rest of the industry, and fr frankly, oscar and the board would not have embraced this level of change if they didn't feel it is needed. everybody at the table understood that change was
needed and we productively made the changes, and brought a vast amount of experience into the boardroom. and so the better lenses to view this is shareholders, management, and board working together to advance the interest of the business, and, you know, let's revisit it on the show in a year or two, and talk about the outcomes that this led to. we are confident that this is going ing to cause united what will assist and facilitate moving them forward, and closing the gap with the competitors, and frankly, having a better airline. >> and you anticipated my next question which is one year from now where do you see united shares trading a and where should they be, because they are at $58.41 as we are having this conversation. >> well, i'm not going to go get into, that and there are limitations on what i can say, but i would just say that we are large shareholders of united airlines, and proud shareholders
of united airline a and this is a proud day of to company, and reflective of a management team and board that embraced change, and we wouldn't be shareholders if we weren't confident in the future. >> and you will be remaining a long term shareholder? >> that is our intention. >> okay. brad, one quick question from one of the guys sitting in front of me. pete najarian who owns united, but may have a question about another airline as well? >> i do, brad. i'm curious, and i totally agree with you, because you compare to the competition and not the s&p 500, and they have lagged and you could see it by the graphic that was put up over the last three years, and what about delta? do you have concerns when you look att that name, and i know that at least under the top holdings it is no one of your names and i'm curious as richard anderson steps down very soon, does it concern you or do you look at delta as one of the names that has been performing very well, and can continue to perform well? >> hey, pete. well, good question. we are big fans of delta's management, and they have run an
incredible airline, and we have been long-term shareholders of delta. we are very constructive on the industry at large. we think that this is a misunderstood industry, and it is in the midst of the transformation. three years of record profits last year as an industry, and 150 billion in revenues, and 140 billion in revenue industry profit, and we think that when you look back on the industry five years from now, the harvard business school case studies have to be rewritten on how industries evolve and change, and the structural impediments that have led to the underperformance of this industry for a long period of time we think are no longer in pl play. we are constructive on the industry and happy to be major shareholders of united. >> brad, that is a perfect place to leave it. thanks for joining the "halftime report" and we will catch up soon on whatever the next
project may be. >> sounds good. thank you, guys. >> brad gerstner, founder of altimet altimeter. and we have breaking news? eamon? >> yes, we have news that jack lieu has made a decision on the fate of the $10 and there was a kerfuffle of whether to remove president hamilton from the front, and they have decided that he is going to be staying on the $10 bill, and as a result of the publicity of the broadway musical tipped the balance of the pro hamilton camp, and on the reverse of the bill, they say they are leaders of the effort to get women the vote in the united states on the $10, and as for the $20, president andrew jackson is now on the front of that bill, and he is going to be replaced according to media reports by harriat t tubman, the abolitionist civil rights leader here in the united states, and also change s s to
$5 to depict the civil rights leader as well, and so a whole lot of changes to the u.s. currency here, and this is a lot more political than anybody thought it would be, and the historical figures have people in their camp a all to dday in e united states battling it out, and that is where it is going to land for now. >> and political as always in dc, and than you, eamon javers. and coming up a coke and a frown. the stock is tumbling, and the worst day since 2014, and find out if anybody has bowed on the dip. and also, the sell of the dreamliner, and more on the company that investors first caught headwinds.
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to help you keep rolling with confidence. go long™. ♪ >> welcome back to the "halftime report" i'm seema mody. lead ing leading to the downside on the dow are the shares of coke on track for the worst day since october 2014, and the company beat on the bottom line, but reported a a 4% decline for the first quarter revenues citing weaker demand for soda, and currency headwinds in play, and keep in mind that dr. pepper,
and snapple and pepsi are all falling in sympathy with the beverage giant as their stocks are falling around 1% on the day. >> thank you, seema. >> and pete, you think that it is a value buy and not trap, why? >> well, scott, because these guys are that this is the theme over the last couple of week, but the transition, and when you look at the company as they are try to, and i know that they are fully on board with the terms of the soda side, and we know diet coke, and the trouble there, but it is still about the distilled drink, and that is where the growth is coming from, and as they are bigger in that whether it is the energy drinks or the teas or the coffees or the water, water, and that is the growth driver for the future, and that is the direction to which it is going towards. >> are you taking the other side of it? >> well, coke is tough. >> well, he is making a value case. >> well, it is not a cheap stock historically or versus the market, and it is the type of stocks that are working, and when you look at the xlp and the
stocks that are up 12%, and one is up 2%, and this is where a lot of the money has been made, so it is difficult to be completely undestructed here, but coke may be in the penalty box for 90 days, but one thing with what i agree with pete said fundamentally of the drivers, and that is the thing with coke, because they have incredible distribution, and they will figure out what is it to sell to peop people, and it is probably not coca-cola classic, but whatever it is, it is something they will make money, and on a bad day, beter buy than sell. >> and that stock is down 5%. okay. >> sue herera with the latest head looin headlines. >> yes, indeed, i do, scott. this is the update for this hour. take a look. secretary liu is going to an founs that this guy, alexander hamilton is going to stay on the front of the $10, and the official announcement will come later, and in addition, mr. jackson, no, he is out. harriet tubman is going to replace andrew jackson on the front of the $20 and changes to
the back of the $5 to depict civil rights era leaders. and meanwhile, overseas, the attack of the taliban in kabul rose sharply from 28 to 64. the at takers targeted a protection agency for high governmental officials. and now, the state of emergency is planned through two months through july in france. the foreign minister says it is to ensure security at the euro 2016 soccer tournament starting if june. >> and u.s. and french officials are celebrating the sen tear ya of the lafayette escadrille who flew as am bbassadors in world r i, and thatle isibration took place just outside of paris, france. new friends.
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thank you. and so what we are going to be looking at today is the charts away from the s&p 500, and because it is important for the investors to contextualize the runup to record highs, and why it is different last year to this year, and this is the one that is the s&p, and the equal weight of the etf and takes the components to make them the same, and when you look at what is going on here, you can see that it is not a fang situation or not like nine companies driving all of the performance, a and you are seeing a lot of performance from the mid-caps or the smaller s&p companies and the small caps are better, and this is indicative of that. a this is a switch over to all country index, and the etff version, and because i am lazy i did not want to look up the index before sending in the charts, and this is why it is important and this is a global phenomenon, and we had huge headwinds of energy and u.s. dollar depressing massive areas of the global markets and those trends have reversed this
spring, a maybe not permanently, but you are seeing a lift in europe, and the emerging markets, and lift in asia, and that is again going to lend more e credence to what we are seeing with the s&p 500, and last chart, the efa, and here we are looking at the global developed markets, and xus and we rare looking at the continent of europe, and looking at japan, and et cetera, and again, you are seeing the same thing, and you are seeing big markets around the world start to move high, and jeff kleintop from charles schwab looked at the efa market earnings and it is looking like analysts are expecting a 20% jump over to the next 12 months for europe, japan, and et cetera, and that is a really positive story that i don't think it is going to get any attention, and bottom line, this is not about a couple of mega caps in the u.s. breaking out which is what we have last year, and it is much broader, and as a result, it should give the investor ss a little bit mo confidence that it is the real thing. >> do you prefer svelte or buff since you have been working out?
>> well, husky. [ laughter ] >> you guys are the body images there, and okay, my waist, a little bit? >> well, looking good. >> okay. back to you, scott. >> tanning youk josh. [ laughter ] >> and now the oil, and seeing a rever sal after falling today, and jackie deangelis is going to follow that after the nynex, and the futures gang. >> yes, that is right, with oil hanging around $40 a barrel, and the theme of lower for longer certainly lasting a little bit longer than we expect and problems are mounting for the saudis, and we have the latest news they are looking to launch that aramco ipo, and not just that, but a $10 million international loan, and selling bonds last year in addition to making the budget cuts and the fitch downgrade and fitch downgrading seven of the saudi banks as well, so a lot of the problems are add up hee, and a lot of people are wondering,
scott nations, starting with you, if oil is going to be staying in this range for much longer from here, since we didn't get a deal in doha? >> well, the deal in doha was a bust, and we did get some news today that the deputy iraqi oil minister said that the oil producers opec, and non-opec are going to be meeting in russia in m may, and russia said thatt is not the case, but it may be a situation where the producers are trying to bluff into the meeting and market responding, but it up a buck, and this is going to be going on all summer, because nobody in opec wants anybody else in opec to drive the bus. >> i was going to say that headline coming out of russia specifically have been job owning up the market, and anthony, how are you looking at the market? we will have expiration at the close of the end of today, and what do you do with crude today? >> well, jackie, that signaled the demise of opec, and not only did iran at the end, but iraq and kuwait did not address what was going on in the meeting, and
they are on their own, and they caused it themselves, and if they had taken a leadership role, and said they will reduce production, other companies would have fallen in line, but now they have to job own it, because it does not look like they will cut, and it is strong out to dday, and there is resil sense in the crude oil between the high right now, 42.17, and 42.70, and if we get a run through that, we could make a run at $45, but on the downside, $40 has held for the last couple of days and providing good support. >> and certainly feels like a little bit of the bumpy ride, and meantime for more on the futures market go to firstname.lastname@example.org email@example.com. coming up, robert frank is along with the newest secret lives of the souper rich. >> it is a velcro strap. check it out. >> awesome. >> easy on and easy off. >> looks like it is going the easy off to me. no, no, no come on. you are the go with the youth,
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with twenty-five percent more base horsepower. once driven, there's no going back. coming up in 13 minutes on "power lunch" the dow and s, and p breaking past key levels and another index is out of correctional territory. where do we go from here? a classic bull/bear argument ahe ahead. and the president is in saudi arabia, and huge strains between the u.s. and the united kingdom, and we will discuss the fallout and the impact on oil. and fixing wall street's image. there is a new poll showing that half of democrats and republicans thinks that wall street hurts the economy more than it helps. we will debate it. and you are a big help, e scott. we will debate it. >> thank you, michelle. that is along in ten minutes. and julia boorstin has a market flash. julia? >> well, the viacom shares are
turning positive after dish has called the stock up more than 3%, and the turnaround happened after charliergen of dish expressed optimism to try to get a deal with viacom done before their agreement expires tonight at midnight. take a listen. >> i think that the tone on both sides, both viacom and dish has been more productive through the weekend and this week, and so there are a actually probably is a path to continue carriage. but it is not done yet. obly, the defl is in the details. >> this turnaround to the viacom stock after viacom stock tumbled 18% after a stand theoff on the e negotations. consumers can access the content in other places, and scott, we will continue to monitor the
situation. >> i know you will. >> i like viacom, because there was like ly or not likely to sel paramount, and so i am better lucky than cheap. and now, the carriage here is k acrimonious, and the same thing when they were went through it last year, but the commentary is thattergen said yesterday or in the past that viacom's properties are not as valuable, and that is going to give me paus pause, and i think that viacom is troubled company and fairly v valued and you need a new ceo to move them more into the immediate digital generation. >> and now sh, the stocks are a near high. and now, 10-year is at the highest level since april 1st, and it makes me wonder as we are continuing, guys to, push back to the all-time high for both the dow and the s&p, and if the fed raises rates in june, is that what ends this rally? ultimately? >> well, it is certainly
could -- >> the market is not expecting the fed to do that. >> and it could throw some cold water on it, but it is not going to absolutely crush it to be honest with you, scott. over time, people are starting to digest some of i don't know that it kills the market's move. it certainly throws cold water on it. >> i say there is no chance of them raising in june. you have a vote coming up. >> that's my point. no one expects it. >> because you have the vote coming up. after brexit vote happens, the polls are split right now, then she's not going to want to have increased rates in a troubled economic environment. that will trouble the economic environment. however, i do think market could handle a rate increase this point. >> i don't know. i just think it remains to be seen. it's a really interesting question. coming up, a sneak peek at an all new secret lives of the super rich. this time, well, editor robert frank is getting his hands on luxe watches. robert?
>> scott this is a half million dollar watch on my wrist. we're going to take a look at the maker. the ultimate disruptor in luxury watches. we're going to speak to the most famous brand emphasis coming right up. (patrick 1) what's it like to be the boss of you? (patrick 2) pretty great. (patrick 1) how about a 10% raise? (patrick 2) how about 20? (patrick 1) how about done? (patrick 2) that's the kind of control i like... ...and that's what they give me at national car rental. i can choose any car in the aisle i want- without having to ask anyone. who better to be the boss of you... (patrick 1)than me. i mean, you...us. (vo) go national. go like a pro.
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all right, the super rich are sporting super watches. robert frank got one -- well, borrowing it. costs half million dollars. >> this is the rm 022. this is a half million dollar watch. tonight we're going to see an even more expensive watch for tennis star rafael nadal that sells for $775,000. check it out. >> the rm dif 27-02 is a mechanical watch built to withstand 5,000 gs of force and nadal's punishing back hand. the watch is made out of carbon composites and quartz, the same material used in formula one cars and space exploration. titanium and sapphire crystal also help make the watch life durable and water resistant. nadal helped design the pricey time piece.
only 50 will be made. >> do you think that's a crazy amount of money to spend on a watch? >> for my point of view, yes. it's an investment at the same time. the cost will be higher in a couple years. >> it may be a crazy amount of money, but all of the versions of the nadal's watch have sold out at $700,000. >> you think it's crazy because people didn't pay for it. you and i joke, it's a simple band. but they're selling out of all the watches. >> i'm not surprised. thanks. >> robert, thanks, as always. robert frank. let's get to a couple pieces of business before we run. this downgrade at boeing today to a sell at bank of america merrill lynch. the most damning line in the whole thing, they assume the 787 will generate $29 billion of cash by q-1 of '22. our analysis shows only $14
billion. boeing says 22, these guys say 14. i say sell the stock. >> profit gains are unattainable. in the short term, scott, i think there is enough pressure right there to put this stock to the down side a little bit. but when you look at the backlog, i think for the long term, i like boeing. >> that could be a revenue recognition thing more than factoring in what they make. >> bite stock here? >> no, not yet. >> you can buy it eventually. everyone wants to own boeing. >> anybody own it now? >> no. >> the end of the cycle is called for a little bit. >> show you a quick picture before we go. carl icahn celebrating donald trump's big win in the new york primary last evening. i caught up with both of them. well, we're a little late on. that you get the point. hopefully you get the picture. hopefully you get the picture. hopefully, you'll get the picture. there it is! >> hey! >> which one are you? >> carl icahn, donald trump, mrs. trump. again, carl icahn telling me he's the only guy out there that can bring d.c. together.
i asked donald trump what's up with your relationship? he said we just like each other. so it was an interesting evening to be around a big win last night. >> you're such a big shop. hobnobbing with the best. >> thanks for being here. >> great job. >> thanks for watching. pl power lunch starts now. >> that's quite a bromance. stick around, we have a classic bull-bear showdown on "power lunch." welcome, everyone. melissa lee is on assignment. we're at an all time high watch. the dow and the s&p 500. the magic number for the dow. 18,351. we're just about 1% away from that potential new high. the magic number for the s&p 500, 2134. that's about 30 points away. >> all right. so let's pick it up right here, jeremy siegel is professor of finance at university