Skip to main content

tv   Fast Money Halftime Report  CNBC  May 10, 2016 12:00pm-1:01pm EDT

12:00 pm
built, maybe that upgrade burk with no inventory. >> and the commercial market has been hot, so that should counter that. >> and now, going above $27.22, which some argued would be above, but for right now, the ground is hold iing, and we arep a to 185, but for now, we go to scott wapner and the "half." welcome in, guys, guy to the "halftime report." stephanie link is here, with joe terranova and jon and pete najarian, and the best day for stocks in a month, and we will get to that, but kick it off with amazon. the jump in the shares today as the number one internet analyst on wall street raises the price
12:01 pm
target to $1,000 a share. and with the gap reporting, if that is where it stands, it is not a pretty picture. and steph any link with amazon, and you bought the stock today? >> well, i did, and i have been underweight, and it is painful. it reminds me of the g.e. story last year where not a lot of people owneded it and it crept higher, but it is doing well suns the report, but it is a disrupter, because they are killing everybody, and it is hard to ignore if you will. and they aws is the exciting part of the story, but that grew 64%, and the margins expanded 5% in that segment alone with 27% growth in north american retail, and these are the numbers that you cannot ignore. and the port fol e owe wants a big a part of the benchmark, so i nibbled. >> and you have said on this program, that those would not allow you to go near it? >> it is very hard, and i missed a nice move as a result of that,
12:02 pm
and you have to separate why, and figure out why do you want to own it? for the retail piece or the cloud business, and both pieces did really, really well. we will see how it goes, and i pex ebt to have to buy it when it pulls back a little bit more, and this is a place where you have to be and i'm barbelling it with ebay which is totally cheap, and value stock, and hate it, but i feel that this is have where you want to be within the retail. >> and joe, up 60%, and the retail xrt is down 12, and amazon is killing it, and killing everyone. >> well, the call is not going to 1,000 and that is a stretch, and where is the s&p in that environment, because that is nearly a 42% price appreciation from where amazon is now, and now, getting to 800, that is no problem, and they have done the right things in -- >> just a skip and a jump are from here. >> well, they have done the
12:03 pm
right things in terms of the investments, and navigating and growing the services side of the business and not necessarily so much focusing on the product side, but understand they invest in the infrastructure and logistics, but now the fruition of that and that is going to go back up to 800, and do they have to make the investments once again, and the contraction of the margins, and that is the potential upside, and we don't want to see them go back to where they were years ago making bad investments in the hardware. >> this is fundamentals versus valuation. and this is kevin o'leary, the shark on the program about this very issue. >> this stock, if it is in a port foal e owe, it is a time bomb. when this puppy gets to gravity, grown men are going to weep. >> that is only two weeks ago and time will tell, but -- >> dangerous to touch because of the valuation. and the lack of the
12:04 pm
profitability. >> it has not been. i mean, and when they have showed us ow the make money, and they have done it on one or two occasions, scott, we see how much money they can make, and joe talking about the investment, and what about now the fact that they are going right after youtube. there is something about bezos, and it stood out last week in ira sohn, but it is the comparisons of what amazon has been doing in the last two years, and since steve jobs left apple, and one of of them is innovative and one of them is attacking the competition, and right now, am sop hazon has goi it, besides everything. they have scale, and they have incredible growth. bezos is going to get the credit, because he is executing to perfection which could push it south. >> and ber stein to $1,000, and the analyst carlos kirshner says
12:05 pm
that the margins are expanding, and the -- >> well, that is like instead of spending like a drunken sailor, it is starting to come back at least according to this gentleman? >> well, folks have been cutting back on the cap x to make the numbers here, and in the oil and the gas space people are cutting back dramatically, and in some cases beating, because they have more cash flow without that spent, however, jeff bezos, and everybody has said it, by won't beat the dead horse, but doing a fantastic job. and judge, people have been streaming into the stock as it has made 660, 680, 700, and now today, sold the 700 to 710. but they are taking the little nips at it, and they are not making a huge bite. not investing large sums of money. >> are you afraid of the valuation? >> yes.
12:06 pm
that is it. they are afraid of the valuation, and people are afraid of missing it like steph described. i'm not in it, and i have to admit it i was it for a week ago for the earnings for 24 hours, but i am not in it for a right now, but chasing it. but taking little bites at it is what people are doing, and nobody is chowing down at the buffet here. >> and you came to the conclusion thaw it is a must-own stock. >> well, talking to system of the legacy retailers, nordstrom, pay si's, jcpenney, and tj max, and the one fear is to lose business to amazon, and as a result, all of the companies are spe spending massive amounts of money to keep some of the customer customers. so i think that there is going to be room to own some of the other names and the legacy players, but for now it is hard to ig for that every time you want to go by something, and how
12:07 pm
many times people want to go google something or go on amazon to get something. so to me that is -- >> what are you going to the buy gas and get crushed? i mean, look at the declines in the stock, and l-brands down 27%, and ralph down 19, and gap, and look at those reduction, and so -- >> well, i don't believe it is going to reverse, and so thank you for helping me to make the case. i don't think that macy's is dead or nordstroms is dead, but i own a little bit of the nordstrom, a because they are a great franchise and they are doing things to get the customer back in and the younger customer, but right now, you have to admit that amazon is stealing the show, and that, i just don't see it ending any time soon. >> and the mall can't totally be dead, because simon property
12:08 pm
group is high. >> yes, i took mine off. i took it off today, because of the move. the one thing to your move is that it is not that macy's is dead, and they have great management, and the terry lund gren has to focus on, and he does, they are closing the stores to try to reduce the footprint because they cannot compete the way they'd like to. and we all like the expansion when it is there and needed, but the expansion over the last decade is not there for them, and that is the problem, too much square footage and positioned positio positioned better, and going to the online world. >> one thing that the guys cannot beat is the t.j. maxx, because when it is end of run, and that is what they are selling the excess inventory, and end of run, and amazon can't eat their lunch, because people have to go in to try it in, and
12:09 pm
lim limited supply of this. >> and t.j. is spending a ton of money on the e commerce because of amazon, and i agree with you, but people are spending because of amazon. >> and tjx, and who else? >> home depot and lowes. >> and cramer talks about it all of the time in the early morning show, you go to home de-poe and you have everything that you want, and it is a little animal, if you get the next day delivery and that, and you can't wait, and you do it on the saturday, and this is something for now is a little bit bulletproof. >> that is the consistent theme, the big box, the home depot and the lowes and that is the last three year, costco cas well. but understanding retail, it is momentum oriented and think of the phases, the jcpenney or the nordstrom or the macy's that we have bone through in the 3 to 5 years, positive momentum, and then lose, and negative
12:10 pm
momentum, and you will see it with jcpenny, because they are incredibly challenged as a franchise, and macy's is under pressure, and probably going to be reporting soft numbers, and not able to get back to the 14% e ebita margin. i bought under armour yesterday. this is a stock that is fundamentally, everybody own and loved, so it is all about the momentum, and guiding what the fundamentals are doing, and also the technicals as it relates to under armour, becausek the ni t wi -- technically it was washed out. >> and now, looking at the gains for the nasdaq and the s&p as oil is getting a flip, and what is happening?
12:11 pm
>> for me, it is the financials. i think that the asset management side of the financial sto story is incredible pessimistic. going back to zone, and everybody was pessimistic, and getting the information from the brokerage houses, everybody is giving up on the asset managers and the -- >> the books. >> going to the rules. >> and the asset manager's ability to gather, and so to me, goldman sachs which i bought this morning, and charles schwab, and the affiliated managers and amg, and these are the depressed franchises that have the ability for trade to go. >> and they have come along and the rin say that, because if you were on the show this morning, oil was negative and the market, from up 100 to up 50 or 60 point, and then suddenly we get a flip in the oil. flip in the oil, and the markets start to rise to the upside.
12:12 pm
so it is oil leading the market, and no doubt about it, and anybody who says that the correlation is broken, where? show me where it is broken. >> it is a cramer view as well. >> and the data that came out, it was supportive of a stronger economy, and better jobs, so that the speculation to today is that maybe the fed will go in june, and whether they do or not, i don't know, but right now, nobody is expecting that, and you have better data, and they are rallying, but we will see if it lasts. >> and so are we saying that the rally has some legs or momentum? >> yes. >> yes. >> yes. >> and not that in days we were think, pab it is going to roll over? >> who was thinking that? >> well w you posed the question are we going to be rolling over or see a couple of percent correction which we have seen time and time again and the latter, a couple percent correction, and maybe not a full 2%, and then we go right back to work. if crude does not break, and it
12:13 pm
had a lot of reasons to especially after saudi this week, and the production levels and the fire being contained or reduced up in alberta, we had a lot of reasons for the crude oil to head back the other washg and it is moving marginal ly. >> and can we survive the technical break in apple? >> yes, 92, and it was going to go to 80 or 75 if it broke th e there? >> well, i own apple, and that is not what i want to hear. >> and it was an apocalyptic call. and what is ahead? >> still ahead, down in flames, elon musk solarcity is getting torched, and jim cramer says that the stock is in first class prices. we will debate. and also, in allergan yesterday, we will find out if pete sticks with the trade. and disney earnings in focus, and the key numbers to watch when the company reports this afternoon. it is all coming up on the
12:14 pm
"halftime report." or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade.
12:15 pm
man 1: i came as fast as i man 2: this isn't public yet. man 1: what isn't? man 2: we've been attacked. man 1: the network? man 2: shhhh. man 1: when did this happen? man 2: over the last six months. man 1: how did we miss it? man 2: we caught it, just not in time. man 1: who? how? man 2: not sure, probably off-shore, foreign, pros. man 1: what did they get? man 2: what didn't they get. man 1: i need to call mike... man 2: don't use your phone. it's not just security, it's defense. bae systems. billions are spent to confuse and, dare i say it, flummox the american public. "save 16% on car insurance."
12:16 pm
"switch now..." well at compare.com, we say enough's enough. so we constantly scrutinize millions of rates... answering the question once and for all, who has the lowest. just go to compare.com and get up to 50 free quotes. choose the lowest, and hit purchase. so you can get back to whatever it is you civilians do when you're not thinking about car insurance. compare.com boy, solarcity shares are scorched after the company missed on the earnings and cut the forecast. this morning, jim cramer called the conference call the worst of 2016. >> i had not heard these kinds of questions in my career. but bank of america, it says that, you have to love it.
12:17 pm
what exactly is the business model of solarcity, and then this guy ben kalala says, what is solarcity? >> and last week famed investor jim chanos told me why he is still short that company. >> the problem with solarcity is that they are losing the money on every installation and making it up on volume, and that is a problem when you are the levered balance sheet. i think they get in trouble in 2016. >> and compression call and a few days ago and the stock is detroyed. over the last year, the stocks have been obliterated. are they buys? any one of these names? >> no, solarcity is not a buy. and we asked jim last week, and he correctly pointed out that jim hancock is not the elixir for the problems that challenge the company. they continue the grow the installments up nearly 75% last year, and yet on the other side of that, they cannot make money
12:18 pm
off of the installments themselves, so clearly a problem, and it is almost as if they are giving away what the product is, and that is creating a challenging environment to not grow revenues and i agree with jim's position. >> and they are levered un. >> this is one of them. unedison, and sun power down, and solarcity, and terra form 77%, and j.a. solar, 20, and solar dead? >> well, i don't know necessarily dead, but we talk about all of the time whether it is correlated or not, and again, i bring up the oil, and it should not be correlated, but it is. it is trading with the solar, and because of that, if you look at what is going on and talking about solarcity, with leveraging, it must be up there with the worst, and 40% short on the stock, and you have
12:19 pm
overlevered company, and to joe's point, they can't make money. there is a lot of problems, and jim chanos did a good job to identify those. >> and there is an article out today, and i'm not sure who it is from termed it as solar coaster. we are at the bottom, and now we have gone up here, and down, and are we back up again, and is there a rebirth of the solar stocks, joe? >> oil is going to 125 dollars again? h. >> is that the only thing that gets it, and we have so many that told us that we were when we were talking about correlating it with the the price of oil, and solar itself, and that is the thenarrative, a that is the visionary, and you should not understand the new dynamic that relates to the energy domestically, and there is no correlation, and we did not understand solar itself, but we do, and your story is a complex one that is representing years ago for those of us telling us that there is no correlation, and simplistically
12:20 pm
there is. and so, the solar names are going to work again, and i would lump tesla into the conversation again, and to me many, there has to be a correlation of what is going on. >> and yes, a great correlation to have, but as chanos said on this desk with us august of last year, he called them a subprime financing company solarcity, and so, he, when judge and i had a dinner with him not too long ago and the stock had fallen by half from where it was at that time, and it had fallen to 30, and i said, jim, have you taken it in, and he said, nope. down here at.8 at.16.80 or what did take it, and full disclosure, i hope i don't take a hit on it, but i am willing to own it at $12 which is where i'd own it if it breaks down more,
12:21 pm
and should could, but it is a horrible stock, but i like it. >> from the longer term perspective, bookings have to stabilize. they can cut the costs all they want, but you have weak bookings, and no pricing power, and the ishb shoe with the oil, too, and from the longer term perspective, it is too early to get in. >> and you know who is not levera leveraged? per solar. in term of the leverage -- >> you own it? >> not at the moment, but they have the valuation. >> and they do the ins stalllation. >> yes, which is different than the subprime financing. >> allargan is on the mends with pfizer, and maybe the stock is showing signs of life. they the announced a buyback here, and this is what you are seeing with the 2.75 gain.
12:22 pm
is that what the doctor ordered? and plus, the wildfires in canada are rippling through the markets. we will see what supply disruptions in oil really mean for the price of crude.
12:23 pm
12:24 pm
12:25 pm
all right. for the trader blitz. four trades on four stocks. credit suisse is back up after reporting lower than expected. >> it is a $12 today and restructuring story, but focus on the wealth division, but not time to buy. >> and what is up with herz, pete? >> miss, miss, miss and this is something they missed on the earnings and the revenue, and then you project forward, but it is back to april when they did it, and the stock had taken most of the pain, but you see it, it is not a buy now, and they have to show us something. >> and how much does uber have to do with this? uber lift and all of that? >> well, the various factors of people not taking in are starting to understand, and that is why the stock is near a 52-week low. >> and you own allargan? >> yes. >> you have been buying? >> yes, painful since the break of pfizer and it is now my largest health care position.
12:26 pm
>> and what do you think now they announce the buyback? >> well, it is good news in the quarter, and beat on the gross margins, and free cash flow conversion, and the $10 billion buyback, and some in the next fife or six smonths, but it is balance sheet that is very levered, so i believe they are a winner this space. >> and pete? >> we didn't have a chance to do it on the show, and we did it later, scott, out there, but somebody was buying huge on the august 10,000, and selling on the august 230 call, and not just on the big news, but i was in the stock, and i believe it is going higher, and probably o going to hit 250. >> i want to make it clear that everybody knows what we are talking about, and it is allerg allergan? >> yes. >> and now, zoetis where they may be cut back the position.
12:27 pm
>> yes, doc. it is nearly triple volume, and again today, the stock is hammered as goldman just days before that cut them to excel as well, and time to be out of the way on this one. >> okay. we do have something was said in my ear at the last minute, so sorry. let me give you a check of where the stock market stands, because we are look at the biggest gains for stocks in a month. and we are clear ly in the high of the day, and the dow jones industrial average is 17,905 and 200 points is better than 1% gain for the dow, and the s&p is 1% gain, and crude oil, and is that continuing to be the story? the dollar is closely watched? >> the dollar is higher, and the materials and the financials are
12:28 pm
hi higher. >> yes, and you talked about a it on the blitz, but that did not hurt the financials, because we are looking the european, and now the u.s. financials are moving up in a big way. >> i wonder how long a financial boost can last? you know, a couple of days to trade, yeah? >> well, i wonder how far into the c-card. and if the economic data is b better, and the jobs comes in and i point to the jolt numbers which were amazing. so like if the jobs are better, and the economy is better, and they are not lending to oil and energy markets elsewhere, it can offset where the 10-year is in my opinion, and you get into the c-car stuff, and that is important. >> and what about the energy stocks, do you want the buy them? >> no, look other places, because the risk to reward does not lineup like it did in february. i do believe overall for is s&p,
12:29 pm
the sentiment is bearish. look at the health kcare, and te financials, and you can't tell me that tech is not going to be coming back once again. >> as you know, bob pisani is live at the btig's charity day in new york city, and he has a special guest with him as well. bob? >> thank you, scott. this is the btig charity day with charities trying to raise $500 million, and this is mayor michael bloomberg who has been active in the charities, and tell us about yours. >> well, this is my second favorite tv station. >> we appreciate that. okay. >> your question again in. >> well, the charities, and you are here representing a number of them. >> lots of ways for people to help, and one thing about the finance industry they make a lot of money, and generous. you go back to a guy named mcgillicuddy and shipley and
12:30 pm
they started all of the wall street doe facings to the charities to support hospitals and schools and making a difference in the city, and the firms like btig, and here it is 50 years later, and still doing the same thing. >> now, you have been here half an hour, and came in, and a lot of applause and you spent 30 minutes shaking the hands here, and there must be 300 people here, and all celebrities and all shake hands, and are you running for anything? >> well, what happened when i ran for mayor, i like people. if u saw a policeman, i would cross the street and shake his hand or her hand, and the sanitation trucks, if they don't take off the gloves and come over to say hello, i'm annoyed, firefighters the same thing. i like people. >> and it does seem like you are running for something, but i know that you are not, and i have to ask you about the extraordinary year of politics. >> nobody expected this, and
12:31 pm
hillary was the presumptive favorite from the beginning, and i assume she still will be the nominee of the democratic par ticker and trump, nobody, there's is no ebb who thought that he had a possible shot at thi this. and yet he has fooled, well, fooled is is not the right word, but surprised everybody, and trump has tied into a feeling across the country that their future is not as good as they want it to b and they are worried about losing their jobs and what the kids are doing, and worried about the direction of social media is playing a part of this. they are looking for something different. and the same thing for bernie sanders, looking for something different. in the end, i assume it is hillary versus trump, and the bookies and the polls say that hillary will win, but it is a long ways from now to november, and anything as you can see can happen. >> and the vague rumors of the
12:32 pm
third-party candidates -- >> well shgs s, it is too late on the ballot, and so number two, the system is designed for a two-party race, and the way that the constitution works if somebody does not have a majority then it goes to the house of representatives, and in a three-way race of three credible candidates nobody would have a majority, and so it would go to the house, and if the house is in republican hands, they will pick the republican, i assume, and if the house changes into democratic hand, because it is the next house that would do the voting, they would pick the democratic, and the independents would not vote, and so you can't win there with the third party. >> you made a decision not to jump in light of the candidates? >> i look a look at it, and we did a lot of the polling, and we we would get one-third of the vote, but not a majority, and if you don't get a majority, and you can spend your money a do a lot of good things, and being
12:33 pm
the president is not the only way to the help people, and it is a great job, but i am happy at what i am doing, and i have a chance to make the difference and hopefully the foundation and myself and you are doing something nice here today the come to promote the btig's charity day. there are other things to do. >> what do you think would happen this week with the big meeting with paul ryan? >> i am nobody to give him advice. trump marches to his own drummer, drummer, and so far the drum ser playing the right tune to get him this far, and can it take him to finish line? only history will tell. >> as a small business survey out this morning we were talking about that indicates the election politics is starting to weigh on people's decision s s make the processes this year, and what can the country do to get more certainties and make businesses easier to operate? it is a common theme that we have heard about in the last two months? >> well, we have to open up the
12:34 pm
country to trade. and people think that globalization is hurting business, but it is not. it is technology that has hurt businesses, and so we need more global trade to make up for it, but the problem is that sometimes the glow wall trade will cost jobs on one side of the country, but creates more on the other side, and the problem is that people can't cross the country, and they don't have the same skillset, and that is where government should step in and doing some, and so i am sim sympathetic to the coal miners as people stop using coal, it is kwoing the save the planet and make his health and her health and my bet health better, but that person nevertheless e needs help, and we have to retrain, and subsidize and get him or her a job to get some of the new jobs. >> and i have a quick question from my colleague for the mayor. scott? >> i wanted to know, bob, if you could ask the mayor if he plans
12:35 pm
to meet with mr. trump, and how long will it take before the establishment republicans fall behind mr. trump if he believs s the they will. >> scott is asking, if you have any plans to meet with mr. trump in the near future and what would you tell him, and do you think that the establishment republicans are, will fall in line behind mr. trump? >> and donald trump has more important things to do than to meet with me. he is campaigning, and he is going to be working hard between now and november. i'm not here to tell the establishment or the upstarts what to do other than i have always believed, and you want to be genuine and tell people wa you believe, and you want to understand the issues and exp n explain them. public wants simple solutions to complex problems, but they want to make sure that if you promise them that you know what you are doing. and that is hillary's job and donald's job of laying out a plan of nice to say, we will
12:36 pm
create the jobs, okay, fine, but how? nice to say we will make the world safer, but what are you going to do? and if there were simple solutions to complex problems it would not exist today, and the one sound bite which is the way we are running our lives these days, you can't explain it, and what i would suggest to the voters sit back and listen to them. if you want somebody with experience and somebody who has judgment, and you want somebody that is intelligent, and you want somebody who knows that they are not the smartest person in the world, and they will bring in experts. we always think that the president should have an answer to everything, an can't do that. the president should have a policy on everything, can't do that. and you want to know who could go and attract the great advisers whether it is the cabinet secretaries or the speechwriters or the legislative assistants or the generals in the army, and civilians who run the 4 million people who work
12:37 pm
for this country, and running the railroad is the way i would describe it, and it is the president's job, that and getting ale long with congress. >> is that candidate mr. trump? >> well, everybody has to make their the decisions about what which one they think assuming that these are the two candidates which one they think smiling all of the inch of the way and i have known you for a long time. >> and if you walk in here, and you don't see a big smile, you should not even be here but see a shrink. >> our thanks to you, bob and mayor bloomberg as well. and now, what should she do with the portfolio? stick with it? she is going to make the case coming up, and you decide, because it is all coming up on the "halftime report." supplement insurance plan,nside insured by unitedhealthcare insurance company.
12:38 pm
like all standardized medicare supplement insurance plans, they could save you in out-of-pocket medical costs. call today to request a free decision guide. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks, and virtually no referrals needed. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp... and provided byof expe. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide.
12:39 pm
man 1: i came as fast as i man 2: this isn't public yet. man 1: what isn't? man 2: we've been attacked. man 1: the network? man 2: shhhh. man 1: when did this happen? man 2: over the last six months. man 1: how did we miss it? man 2: we caught it, just not in time. man 1: who? how? man 2: not sure, probably off-shore, foreign, pros. man 1: what did they get? man 2: what didn't they get. man 1: i need to call mike... man 2: don't use your phone. it's not just security, it's defense. bae systems.
12:40 pm
we're always looking for ways to speed up your car insurance search. here's the latest. problem is, we haven't figured out how to reverse it. for now, just log on to compare.com... plug in some simple info and get up to 50 free quotes. choose the lowest and hit purchase. now...if you'll excuse me, i'm late for an important function. compare.com. saving humanity from high insurance rates. now, back on the "halftime report" and sue herera with the headlines. >> this is what is happening this hour, scott. cease-fire in aleppo is going to be extended by 48 hours today, but that did not stop them or the allies from bombing syrian rebels. video showing rebels in positions being pound ed by
12:41 pm
missiles and artillery. and greek riot police firing tear gas at migrants on a sprawling tent city on the border with macedonia, and the police say it is unclear why the fighting broke out, and the camp is home to the some 10,000 migrants. >> a baltimore police officer who is accused in the freddie gray trial is choosing to go before a judge instead of a jury. he is one of the officers that arrested him in april of 2013. the trial is to start thursday. and kroger is starting a nationwide hiring event to fill 14,000 jobs, and many of it is for part-time associates for those who stock shelves or ring up items at the cash registers, but kroger says that all of the jobs are permanent. thank you, scotty. that is the new economy, permanent part-time. >> and a company, too, whose stock is in the news. and we can show you the shares, yep.
12:42 pm
>> yep. >> kroger got a downgrade today. i can't remember by who, but i thought that it was down 2%. >> and up yesterday as well. >> somebody on twitter will tell us where. >> and it was up yesterday by 3%, and giving back some of it. they released the 8k, and went to the conference, and talked about the deflation trends they are seeing are not going the chak them, they are not going to lead them to the change in the earnings estimates which is bulli bullish, but people are concerned about the deflation they are seeing, and the same things at costco and walmart for that matter. >> and as jeffrey piper who started kroger at underweight. >> well, they have some headwinds and deflation is a big deal. >> and the oil is rebounding today, but below the key $45, and jackie deangelis is down there theret the nymex, and what are you seeing? >> oil is rallying to day, and we have supply concern, and outages in canada and nigeria, and that is overtaking the worry
12:43 pm
of the supply glut. so while the averages may be temporary, and certainly giving a blip to the oil prices to the upside, but what does it take to get the oil higher? >> it is going to take absolutely brand-new fundamental news, because we have resistance overhead, and while some people are excited about the fact that the 50-day moving average is moving above the 200-day moving average for the future is not going to the mean much since the 200-day average is still lower. >> and frank, is the average enough to take us over 45 in the short term? >> well, some of them, yes. when you look at the trend here, high are highs around and the lower lows, and you will see the support of $42 a barrel, and $40 longer term, and this summer $48, and more than the supply issues, because you have the demand growing with the eia report showing the increased
12:44 pm
demand, and also seeing the volatility coming down, and the volatility index dropping below 45 and good for the hedgers to get into the pashgt to get in before the summer. i see mid-48s for the summer, jackie. >> we have the live show coming up at # 1:00 p.m. to talk about gold and why it could make a run for 1,400, and so join us. and lee marcell zishgs going to join us, so you don't want to miss that. >> all right. thank you, jackie. and double the fun, and what are the najarians watching in the market? >> yes. >> and portfolio action coming up here on the "halftime show." and stephanie is in attention span. >> no, no, don't bring those back. >> i still have the shirt ta you got me. >> thanks for reminding us. >> thanks. >> the halftime report with
12:45 pm
scott wapner is the place for market-moving interviews. >> you don't call the company a sewer because they made a mistake. >> we are short tesla and solarcity. >> if you can't charge $100,000 a year, there is no drug. >> the most profitable hour of the day. >> i love the show. i get a tweet about the show, and i'm on the sew. it is like the greatest moment of of my life. >> the halftime report is weekdays at noon eastern. 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.
12:46 pm
12:47 pm
♪ i could get used to this. now you can, with the luxuriously transformed 2016 lexus es and es hybrid. ♪ can an established bank move like a start-up? it's a question we get from some of our largest banking clients. the face of their business was tellers. then atm's. today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up.
12:48 pm
i'm melissa lee coming up at the top of the hour "power l lunch" rallies, on the oil, but not for the gap. and tesla is down 15% in the past month, and we have por on the trades of those two big name, and titans of the valley are will be here to talk about the health of the unicorns and the thoughts on twitter. all that and much more on the top of "power" and meanwhile, "back over to you.
12:49 pm
12:50 pm
12:51 pm
it's a huge upside bet. somebody is in there. i'm in there with them. >> pete, you got something too? >> financials, we talked at the top of the show. some. movement we saw. already moving to goldman sachs. the june 170 call. somebody came in. over 6,000 of these trades. 1.45. spread off. that's what i did with the trade. probably in there for a couple of weeks but i think the stock wants to test 170. that's why they are coming after these aggressively.
12:52 pm
>> disney, set to report today after the bell but will its recent blockbusters be enough to offset concerns about espn? our julia boorstin live in l.a. with those details. hey, julia? >> reporter: hey, scott, disney's studio has been on fire with this past weekend's record-breaking "captain america civil war" as well as "jungle book" but that won't impact the second quarter. "zootopia" and "the force awakens" are expected to boost quarterly results and prompted analysts to raise price targets and estimates. domestic parks and consumer products are expected to be strong but it's espn's massive media networks division likely to move disney's stock. espn stock announced that verez-in have resolved a battle about the inclusion of verizon's slimmer tv bundles. the question is whether advertising growth with outweigh advertising trends.
12:53 pm
we'll see how they move into sony's view and the verizon custom tv packages. analysts are warning of the shift of some college football games into the fiscal first quarter. they say they will make it for tough comparisons this quarter from a year ago, period. iger's cautious comments about declining subscribing numbers that sent disney shares lower in august, and his bullish comments after disney's last earnings that helped the stock rally. it's up about 20% from a bottom in february. scott? >> julia, thanks so much. who owns this stock? >> i do. >> brought it down in this range after it pulled back and so it's virtually call it flat for me, right now. i think that's been overplayed. talked a little bit about it yesterday. i think iger is doing the right thing. the focus on espn got way out of hand. people all freak the out about the fact that they were losing some with the cord-cutting. that should have been expected but what people don't understand is john skipper who runs espn for disney actually address it had right away with the fact that they are doing extremely well with ads. as a matter of fact, 2015 was
12:54 pm
their best year ever at espn so for those reasons it was way overplayed and the secession plan. that's another issue that people are starting to grapple with. we talked about that yesterday as well. a couple years out. i don't think that's overplayed. >> this is the first conference call since that move with stag. >> so they will probably be addressing that, no doubt. >> we'll hear what iger has to say about that. coming up, stephanie's take on cat, plus your top trades for the second half coming up next. i know breaking the neighborhood speed record looks easy... but i wouldn't be able to burn rubber without optum. see i have diabetes... which can make it a little harder to become a racing legend. thankfully, though, i have an optum nurse and in-home biometric monitoring that really work with my doctor's plan. which means diabetes doesn't get in my way... unlike the neighbor's front yard. this is healthier, powered by optum. from health plans to providers to employers. we connect all parts of health care. healthier is here.
12:55 pm
12:56 pm
12:57 pm
welcome back. i'm eamon javers where republican senator john thune has sent a letter to facebook chairman mark zuckerberg asking for information about how exactly facebook handles trending topics. this is a story that's been in the news over the past couple of days about whether or not facebook's moderators actually manipulate the trending data in order to suppress conservative views. senator thune wants a lot more about that. has a lot of questions for zuckerberg here and he wants to know the organizational subject and who ultimately is responsible for approving its content. in a statement facebook said yesterday that there are rigorous guidelines in place for the review team to ensure consistency and neutrality as it handles that trending topics issue, so this one is going political, and we'll see some questions and answers here from the united states senate, guys, on whether or not facebook is being objective with the trending topics. >> interesting story.
12:58 pm
continue to follow t.eamon javers live in d.c. for us let's move and talk caterpillar. it's been down nearly 10% since you bought it for the portfolio. >> yes. >> i'm going to stay with it. my portfolio has a cyclical bias and you'll see the global growth get gradually better as we progress into next year. the stock is very underowned and not very well sponsored an wall street. have a good balance sheet and 4% dividend yield while i wait for the turn. i don't think it will be smooth sailing. i believe that energy is kind of basing and bottoming. bumpy and construction strong which is good for them. mining is a problem and china is a problem and the reason why it trades where it does is because you have these issues so i think they have done enough of restructuring and like the margin story as well so i'll stick with it. >> programming note tomorrow on "the halftime report," the man behind the $100 million short on dish networks is speaking exclusively to us.
12:59 pm
sahm adrangi is explaining why he's making that bet against dish, an exclusive bull/bear debate. looking forward to that tomorrow, a story people have started to talk about in the last few days. around the horn, markets doing pretty well. biggest gain in a couple of months, pete. how do you see it? >> two things that really stand out for me. obviously oil. talked about the beginning and also the fact we're seeing some participation from the financials. if you keep an eye on the xle, watch the 50 and 200-day moving average. that continues to hold and something to keep an eye on going forward. >> dow is up nearly 200 and there's the xle. got a basketweave glimpse. oil is doing nicely. just shy of 40 hadn't 45. >> and disney could provide a boost and i do like that stock and it's part of our uit. >> steph? >> when financials do well they tend to do well and economic data is very important for them to do well. >> quick, joe. >> all that earnings smart. hopefully will drive us. >> big, big week for retail.
1:00 pm
see what disney does. "power" starts now. ♪ changes >> and there is a big change on tap for one of america's most iconic brands. good idea or just a cheap marketing gimmick? we're going to tell you what it is, and you can decide. hi, everybody. happy tuesday. michelle, melissa, tyler and me, brian, all here with you today, and if you own stocks you're probably making money today. the dow is up about 200 points. two stocks are down in that index. pretty good day for the dow, so let's go downtown, downtown dominic chu live on the floor of the nyse. >> better than downtown julie brown.

14 Views

info Stream Only

Uploaded by TV Archive on