tv Fast Money Halftime Report CNBC May 12, 2016 12:00pm-1:01pm EDT
growth names that really continue to grow above the expectations. >> all right. we will see what those names post tonight, and of course, next week. in the meantime, the dow is down 71 point, and close to the session lows, and we go over to scott wapner "and the half." all right. guy guys, thank you so much. welcome to the "halftime report." i'm scott wapner, and this hour, apple is freefall, and the tock is breaking $90 a share for the first time in two years, and no longer the most valuable company on the planet, and with us is joe terranova, and stephen weiss and so with us, what you make of this stock breaking briefly?
it is currently below where it is trading now? >> well, it is affecting the direction of the market that wanted to point higher. when it relate s s to apple wit sitting at $89.80, and make the short trade and go against the big balance sheet? i am not sure it is something that you want to do, and if you believe it is the right move, you have to hope it is getting to $80 and not going to be buying back the stocks. and on the longer term basis, i believe in apple and the story and the the vision and the ecosystem. the question then becomes is it the moment to buy it, and obviously, given the tape today, it is not. so what do you do right here? if you don't own it, you get a box of popcorn and watch what is going on like a good movie, but if you own it, don't double down and panic. >> and josh, if you don't own it, shouldn't you buy it at $89 and change? >> well, it is a question of the time frame, and you have a not so good year this year. but the question becomes how much of it is priced in.
from the technical standpoint, if you want to look for some level where the stocks are bounced, it is here. take look at the 5-year chart, and look at the weekly time frame, and looking at the 200-week moving average >> i looked ta at the one-year or the 2-year chart before coming on the air, and there not a lot of support for where you are right now. it has not been here for a while. >> but it is at the support, and if you are thinking of the 2012 and the first quarter and into 2013 this is where it bounced from the 200-week moving average on the longer term chart. and the dividend is going to give you some price support here, and again, the question of the time frame and if you are i boog it to generate alpha versus the market over the next 0 days, you might be disappointed, but the stock is down 33% from the highs last year, and which is going to be set in the spring, and underperforming for quite a while, and the sector in general does not look great. the nasdaq down 9% from the november highs. so this is in the context of the
semiconductor weakness and the cloud software plays, and not a lot good to be saying about the sector overall, and so maybe apple has been punished. >> and steve, people are pushing the sell button or using it like the atm and is that to a broader implication that the market itself is about to have another rollover? >> well, i do think that there are some elements of that. i think that people are risk averse. so when you have a market with huge volatility and valuation tas make sense, you take the opportunity perhaps to buy the name, and whereas they sell off, and however, when you are the huge volatility to the downside, and the downward volatility, people take opportunity to take the risk off as i have done. and in terms of apple, everybody has the opinion on apple, and the opinions will overshadow the fundamentals, and you don't know what the true value is, but what we do know is that the fun da fundamental story is fraying like the analysts that we are going to be speaking to shortly. so i don't see any of the
reasons -- >> well, it is not showing up among the and ialystanalysts, b have 41 buys there, and even to our guest in a few moments he took it down to by $45. >> and the yes, it is meengless, but they are so vested and in love with apple, and how can you not buy apple to get off of the w wagon? investors first, but as far as the yield support? there is not any. the stock is down almost 3%, and the yield i would have to wait to get is 2.5%. >> and total shareholder, and buyback and dividend? it has not helped, and it should have helped in the mid-90s and you are right about that. this is not a stock that drops to $50. >> and while we are having this conversation, do we have is that sound? because walter issacson was on "squawk box" this morning and he talked about the innovation, and
tim cook taking over the legacy for steve jobs, and this is what he said. >> well, i think that tim cook is a great ceo, and steve jobs always thought that he was great, but the question on apple, and i have no inside information now is that every four or five years beginning in 1998, there was, oh, my god, i didn't know i needed 5,000 songs in the pocket, but i can't live without this absolutely thing of beauty the ipod, and then the iphone and the ipad, and i am looking for the next big thing and i mean, i got the watch, but i don't use it so much, and the watch is not the next best thing, but we have to look and say, what is the next breakthrough they will have. >> and interesting thoughts from mr. isakson who wrote the book on steve jobs. is that what this is all about? that not the having the next big thing, because the 7, they believe it is the next big thing even though it is the same thing, but it is big >> that is why it is trading
cash 8 times the earnings, and don't act like jobs or zuckerberg or bezos is running it. it is not valued like a big innovator, but a hardware company at a very, very low multiple which if you are long the name gives you the potential so that if they do come out with some kind of a major innovation, whether it is television or the cars or whatever is going on that no one can quantify, and if it happens, you are not already paying up for that, and you are paying as if there is no more innovation, and this is a company to sell you apple radio subscriptions, and a replacement phone every two years. that is the only thing in the multiple today. >> and for more on the big multiple move, let's bring in a tech analyst in new york city with yukovich, and as apple is taking a loss in the market cap,
and what are you seeing? >> well, they are in a lull, and is it permanent or temporary until they can figure tout next big thing. technically, we have taken tout the recent lows and the investors are concerned that tim cook may have lost the handle on the near term demand, and nobody belie believes that the 7.0 is going to have tremendous features to make you want to have a new phone. so the product cycle on a scale of two or three or ten, but the ecosystem is 8. they have 800 million users to monetize over time, but you need new products to do that. >> and steve, you took the price target down by $5. you maintain the buy rating on the stock. why did you only do it by $5. were you attempted to take the overall rating down overall? and did you see cracks in the story that walt issacson spoke of and the need for the next big
thing, and the need to find it? >> well, there is a news to find the next big thing, because it is largely a hardware company. i would not give up on the watch. it is not clearly a home run, but it is a little bit early, and so wearables are going to be a big category, and virtual reality which is a couple of years ago and the car which is many years away, and so you don't have a near-term catalyst, we decided to stick with it, because you are not discounting anything going right over the next few years. in the report yesterday, it is not so much about the earnings and the target, and we created a new way to look at the installed base of apple and trying to predict what the rate of phone upgrades is going to b and it is so difficult to compare with fiscal '15 and the innovation of the 6. but it seems that the fiscal year of the '18 is going to be first big year for them. >> and is the kind of punishment
that the apple stock feeling today, is it justify ied given where the business is to dday? >> where the business is today, the company has seen the first debt kline of iphone, and the company arguably has overpromised on the particular phone upgrade cycle recently, u but i would maintain the ecosystem is strong, and they are spending a lot of money on the r&d, and ub less it is wasted as cook has indicated some good products coming down the road. >> steve, good to talk to you today, and we are watching the stock closely, and breaking below 90 dlrsz for the first time in a couple off years. and thank you, steve. your thoughts? >> well, if we want to place it on the ecosystem, the competition has to recognize that as well. and samsung phones are getting press of being better than iphones, and better priced. so all samsung has to do is to develop the ecosystem, and the
android system is a viable co competitor, and i worry and long apple, but i do worry that they have not come up with what walter isaacson is pointing out. but there is nowhere to go from here. >> and i am told that credit suisse which is reiterating the price performance at $80. >> well, jeffrey gundlach has it right when he suggested at sohn conference that apple is not as important to the market as it used to be. the stock is trading at $90, and you are talking about a technical breakdown in the face of a big balance sheet. i don't want to make the trade, because maybe it is less important and a stock that trends between $90 and $95 until josh points out, it figures out what is the next big product.
and this morning, donald trump wrapping up a meeting with house speaker paul ryan, and our chief nbc correspondent john harwood has the details. >> scott, this meeting went as well as republicans could have hop hoped. clearly, paul ryan has disagreements with donald trump, and he did not support him saying that he would not fake unity, but he pronounced ate difference of ideas with more in common, and looking to get the ticket together for the fall. this is paul ryan for the news conference. >> i was very encouraged with what i heard from donald trump to d today. i do believe that we are now planting the seeds to get ourselves unified to bridge the g gaps and differences, and so from here, we will go deeper into the policy areas to see where that common ground is, and how we can make sure that we are operating off of the same core principles. >> now, clearly, scott, they are not going to be bridging all of the differences on policy, and the differences on trade,
immigration, entitlements, and also on tone which is very important to paul ryan as a disciple of jack kemp who preached a positive kind of supply-side con ser servativism you have members in vulnerable districts concerned about being tied too closely to donald trump. paul ryan is keeping some distance from trump, and you can expect those members in the vulnerable districts to, and by taking the posture which is more positive, it is going to prevent the possibility of a real breech that would hurt the republican ticket overall, and hurt all of the member, and this is the way that paul ryan has chosen to proceed, and we will see what happens at the next meeting, and donald trump meeting with the senate republicans and trying to appeal to some of those members in vulnerable seats as well. >> and it appears that mr. trump has work to do with the other republicans as well. the former bush 43 aide tony
fratto tweeting out, john, as the comments from the speaker were taking place that he said that sorry, we won't be unified for trump. it is not going to happen. and he also called him an unelectable psychopath. i'm curious what you make of those kinds off comments from someone who is a former white house aide who is a frequent guest on this network say thalg thing about the presumptive nominee of the party he supports. >> well, the intensity of the opposition to trump, and especially among what people refer to as the washington elites, and the people who are steeped in the policy, and people who are conservative writers and intellectuals and people who work at the think tanks and people who have worked in the republican white houses, and remember that both former presidents bush have declined to endorse donald trump, and mitt romney, the 2012 nominee is vociferously opposing him.
so with that depth of the feeling, there are people who are holding out, and that is one of the reasons why it is not easy for paul ryan to get on board, and not the mention the fact that he wants to run for president some day in the future potentially at least, and he wants to preserve his own viability. remember, that many republicas,s and not the ones that supported trump, but other ones believe that they need to reach tout the latino voters and non-white voters and reach out to the women, and expand the base of the party, and donald trump, the polarizing nature of the candidacy has made it difficult, and so you have some people who think that i can't sign on with him, because he is going to be making that more difficult in the future, and so, that opposition that you heard from tony fratto is not going to go away. >> thank you, john harwood, live in washington, d.c. this is what else is coming ow and t -- coming up on the "halftime
repor report." >> a hold or sell on the g.e. stock. we will debate whether g.e.'s run is over in the call of the day. and crude hitting a six-day high, and is $50 the next high? impeached, the brazilian president is headed to trial, and the country is in turmoil, and what the political unrest means for your money. it is all coming up on the "halftime report." random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day 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.
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report, and breaking news from boston fed president eric rose en gren who continues the transformation into the centrist or the hawker, and if the data improves the fed should get back to the business of hiking interest rates and he says again that the market is too pessimistic about the strength of the u.s. economy and underestimating the potential for the fed hikes this year, and looking at the futures curve and he believe has the market is too row in that regard. he adds a new element to the discussion here, because he is concerned about the costs of staying too low for too long, and he notes speculative behavior in the commercial real estate market, and he says that the fed does not want to repeat some mistakes in the '70s and the '80s, and he is sthas early economic data is in line with 2% growth and 2% inflation, and he does acknowledge the early days, and he is looking back at the job
jobs report, and he says, it is showing the relatively strong growth, and why? because he is looking for the trend job growth of 80 to 100,000, and he says that the consumer fundamentals are strong, and the consumer spending is rebounding, and there is a different take on the economy from a guy who was a lot more dovish saying that the market needs to be on the toes for the if potential fed rate hike here. >> and yes, in a day when the jobless claims were 300,000, in i don't know how long at this point, and the retail is a washout, and sending the signals for same consumer that mr. rose engren is speaking about. >> and yes, i want to speak about that divergence of the reports, because when you adjust for the inflation, it is stronger here, a apd 'm not saying that the companies are profitable and making a ton of money, but it is looking like the consumer when you factor in services, and inflation adjusted for durable and nondurable, and they are doing better than the bottom line of the retailers is
indicating. >> it is a good and fierce debate, because when you look at the half percent gdp and the labor market and the peak employment, and about to go to other way, and you are look at the earlier sign of that. >> yes, and looking at the job growth out there, and the wage growth which is towards the upper range of the 2.5%, and steel at relatively low prices, i see the ingredient for the consumer, and to me, it is why isn't it showing up in the bottom line for a question, and the macro data is suggesting that the consumer is in good shape here. >> and joe, a quick one for you here. how much of the fed has bought into the election? >> well, i have done research on this, and they have equally come up and down in an election year in the past, but this brexit
thing is, in june, they are really worried about the potential fallout of that. it could really change the session if it goes the wrong way. >> and so we will get much more from the speaker and steve throughout the day of course. >> the quick reaction today followed by the worst day in three, and is this how it is, volatility is back? >> i believe it is going to be this way through the brexit. and the polls are showing overwhelmingly that they are not going to leave. you have are to hedge in case they do, and that is going to create volatility, and in addition when you see the platforms of the conventions, that is another cause of the volatility, and of course, the fed data point is the jobs number and the volatility up
half a point. >> think about going tointo the year, what were the top three worries? number one, rates would rise and junk bonds in big trouble, and three, people were crowding into the low volatility and high dividend plays would be burned, but this year, if that is the operating logick and you allocated accordingly, you are destroyed. all of the growth sectors are down, and the utes are down, and then you look at the junk bonds doing fine up 3% year to date total return. >> and i want to point out something as well, volatility and returning to that, i is a they we never left it.
we have been stuck in the trading range for two years in the s&p 500, and it is more or less between 2100, and 1,900 and overshot on either end, but that is the range, and nothing to break us out of it. no recession here in the u.s., and notwithstanding the jobless claims, a on the other hand recession, and this is not going to break us lower, and on the upside any time we get the good economic news, it is offset by the fed who wants to raise rates, so we are stuck. >> and i put something together for vertison on twitter since thanksgiving eve of 2014, the market is down 12 basis points of the s&p 500, and basically flat, but the profit margins have six consecutive quarterly contractions going from 9.67 to 8.05%, so clearly the earnings are a high hurdle for the market to continue to elevate, and secondarily to josh's point, thinking about it, the assets up this year are not the assets that anyone owns which is incredibly frustrating, and right now, what you want to navigate out of, and i hold to
this is high the beta type of the names, consumer staples are doing well this week, and look at oil for the month, it is basically modestly higher, and the xle down 2.5%, and go away from the high beta plays and get more defensive. >> and coming up with the crude hitting high of $47 today, and roll rolled offthough, and we will look at the futures bid fon that trade, and a lot of the halftime action in the portfolios, and joe has made a series of trades and he is going to unveil those moves. and looking agent the sector heat map at this moment where there is the sector heat map, and it is a defensive feel at the top with telecom, and s&p down off of the lows, and bouncing back.
all right. we are back with the resident young buck. josh brown is featured in this month's news "adviser magazine" and still one of the top ten young advisers to watch. >> technically i'm still young. >> any comment on that? >> no, i appreciate the folks at the magazine putting me in, and -- >> centerfold. >> i am not a centerfold thankfully for everyone, but it is very cool and i heard from a lot of people that read the magazine around the industry, so thank you very much. >> we are proud of you. >> congrats. >> congrats. >> and oil seeing a reversal after hitting a six-month high today, and jackie deangelis is
live in san francisco today, and the futures today. hey, jackie. >> good afternoon, scott. that is right, we did touch a little bit over 47 on the crude oil trade today after the iea was out with a report saying that the world market is going to rebalance shortly, and we have heard it from the uea befor before, and do you want to get in on the crude oil trade, jim? >> yes, i look it medium-term, and long-term, and one thing that is going to throw the wrench in it is peeking to the new highs and then rejected. so we might take a breather in the short term, but medium to long term, medium to low 50 is my level. >> and do you agree with the level sfs. >> yes, i do agree. resistance at 46 to 46.75, and that is going to date back to december, and the opec meeting in december when the market began to fail, and the bears will have a tough time breaking the market before it closes to
$42, and the next thing they need to put on the market is the juned crude change, and if the momentum is higher, and the expiration goes off, it is going to be difficult to break the momentum, and don't forget that opec puts out the monthly report tomorrow morning. >> all right. make sure ta you tune into the online show, and we are have a special report for you from san francisco where we are discussing the future of nrng and how it impacts the crude trade as well, and we have two special guests, jeff paulson and david stockman and you don't want to miss this one. >> we won't. thank you, jackie. see you soon. >> josh brown is in. >> and you had me at paulsen. >> sor stockman? >> hmm, i'm more of a paulsen than a stockman. >> he is a little pessimistic. >> you are a stockman. >> well, he is is slightly pessimistic. >> you get sfit. >> no, you are saying i'm stocky? i am 6'1". >> oh, you are a stockman. >> oh, i get it. you see the complex that you have given me over the years.
>> we will go to commercial, and see you in a minute. >> are we going to the break. >> i think that you to say the magic words and not me. >> i was giving you a big break. >> thank you. >> and coming up the big sell call. and jim and josh have been bullish on the call of the derrick and in brazil, president rousseff is suspended from office, and headed for trial, and what that shake-up means for the markets, and retd hot at that. talking about the rally in brazil, and what it means now. ♪ how was i to know ♪ they found out who's been hacking into our network.
who? guess. i don't know, some kids in a basement? you watch too many movies. who? a small business in china. a business? they work nine to five. they take lunch hours. like a job? like a job. we tracked them. how did we do that? we have some new guys defending our network. new guys? well, they're not that new. they've been defending things for a long time. [ digital typewriting ] it's not just security. it's defense. bae systems.
>> back on the "halftime report." and sue herera with the headlines. >> good to see you, scott. and at this hour, iraqi president visiting those injured in the bloody bombing in baghdad that killed 93 and wounded 100 more. and a suicide bomber killed at least five police officers in another bombing today. >> and now,-massey ceo don blankenship requesting that he is free while he appeals his
conviction. he is convicted of violating mine safety standards. and now, people are knowing what to look for if the zika virus is look g fing for. the patients were tired, headache and bloodshot eyes and a red rash appeared a across the body. >> and smaller sears stores could come soon, because they are opening the appliance-foc appliance-focused store in fort collins, colorado. it is much smaller than a typical sears store, and if successful, they could add more before the year's end. >> the changing face of retail is not pretty. that is the cnbc news update at this hour. back to you. >> it is not pretty, and another reminder here, and the stocks could continue to be under pressure, and is so is j.p., with the coverage of the understood rate weighing, and they say that they could hit the correction territory over the next few days, and it is the
call of the day, and you have been owning it, and bullish on it, and i know that, josh, fundamentally and technically as we well? what do you do with this call? >> well, the downside target is $27, and the stock is like $29. so i 'm not sure it is terribly actionable, but a lot of what the analysts had to say is that the expectations were ahead of what the company could deliver on, and they don't believe that the company can get to $2 in earnings over the next year, but if you buy it for the longer than to a year, and you read the reports, there are no negatives, there and you have good dividend. >> positives are reflected in the stock, and the fundamentals? >> well, the fundamentals are on stock, and the fstock is not underperforming. >> and that is for me, not, because they have to underperform for ten year, and
they had to get out of sci-fi, and get rid of legacy businesses, and they took too long to do it, and they did do it, and the stock was rerated last year and a great year, and now it is running up against the valuation wall. that is fine. over the next five years, they are nef ri business that you want to be in and doubling down on the technology and a lot in t the health care, and they will make it work, and the stock is a buy in the high 20s. >> high 20s. >> that is where it is. >> it is at 30 right today. >> okay. buy. >> and still, the same thing? >> yes. >> and my only comment on this is that i like g.e., but i have to recognize that what it is the s&p 500 with the beta of 1.3. so if as i was saying earlier that the s&p 500 is not going to be breaking out of the range, it is hard for me to justify that g.e. is going to be breaking out either, but other than that, i do like what it does not just in the health care as josh mentioned, but also in terms of the jet engines, and as the energy patch is coming back, they will get more business there, and still, it is hard to
break it out if the s&p 500 is not breaking out. >> and steve, you say it is a sale. >> yes, and i don't know if it is a necessarily a sale, but i wouldn't buy it, but you need a conglomerate buy-out. i did not write that. >> it is right there. initials. >> you should not believe the press in everything. [ laughter ] okay. so it is my thing, and underperformed for ten years and back to where it is 2002 and look at they have done a great job, but it is easier companies to analyze, and too many moving parts in this. >> and coming up monsanto and palo alto on the trade today, and dreaming of the chicken shack. we will get you -- >> here we go. here we go. >> oh, i can't believe it. >> it is the picture i sent in. >> and we will get the josh brown numbers coming up. >> i didn't know it was coming, but i knew it was coming.
>> you don't call a company a sewer because they made a mistake. >> we are short both tesla and solar tlt city. >> real debates. >> if you can't charge hundreds of thousands of dollars a year, there are no drugs. >> and the most profitable trading hour of the day. >> i love to be on the show, and i got the tweet about the show and i'm on the show. it is the greatest moment of my life. >> the halftime report at noon eastern. of our 353 jackets, i can recommend nine. watson, what if it rains? there is just a 3% chance of rain, so i recommend the breathable stretch fleece fuse form dolomiti jacket. a perfect choice watson. no wonder our customer loyalty numbers keep climbing. i believe we can do even better. i like the way you think.
back on the halftime report with the blit. four trades making news today. first up, jack in the box, a beat on the top and the bottom. and jim lebenthal? >> well, yesterday you gave me wendy's, and they underperformed so maybe i am taking over for josh as the the food coordinator. >> and they won't do that to you if you do more situps, and that is why they do it to me. >> okay. and now, jack in the box succeeded, and what does that tell us? nothing to do with the weather to geography and obviously, that i have the menu right, and the stocks are higher and you can ride it. >> and party city, and the stocks are getting a bump? >> but sell it. it is in a down trend and i don't like this business in general, and seasonal, and dependent on getting a couple of key events right, and private equity retread, and frankly, if we are saying that macy's, and target and other companies can't stave off amazon, why is party
city safe in the long run? not a fap. >> and steve weiss, monsanto, and potential that the suitors are up 9%. >> and monsanto who is the hunter is now hunted. so it is a quality name, and quality company, and fairly steady business and makes sense as the acquisition target, and with the stronger dollar, it is going to go forward and lots of m&a, and particularly with the cheap money. >> and now, here is one that you have owned in the portfolio, and real life, too, in the personal account, piper cutting the price target of palo alto from 208 to 180, and the stocks are trading 129. >> stocks are 129. wow. they cut it to 180 from 208 and that is a bad job and needs to be cut much deeper. in terms of the fundamentals, palo alto is e showing you the growth on the quarterly basis, but the problem with the stock is that it is not performing, and disappointing, and with the
strong sell discipline, it is not a name that i am and cannot suggest you be in as well. >> and now, a shake-up in brazil, and the protests are erupting as the senate votes to impeach dilma rousseff, and we will have more of what that mean means to the markets with michelle caruso-cabrera. and also, we will find out what has been happening on the trades here. [beekeeper] from bees to business expenses,
competition. joe terranova up first place by nearly 12%, and followed by jon najarian and then lebenthal. what do you see here? >> trim out of the facebook, and domino's, and i talked about macy's bottoming and buying under armour which i got stopped out of the open, and so retrail, i didn't like and trimmed dom foe's, but i want to add some positions that differentiate themselves of what is going on in the sectors. the financial is terrible, and the technology is awful, but look at thes a is set management company like blackrock which is dogging well in the environment, so that is a name i want to own, and oracle, and differentiating itself from the rest of technology right now sh, and diversifying itself, and i added
that. and virtu financial, and instead of buying one of the vix products or something like that, and say the markets are volatile, and virtu financial has proven in a volatile market to do well, and so that is a name i added. >> and the guys make more money when the markets are volatile. >> and yes, it is almost protection for the portfolio, itse itself. >> and you can see more at cnbc.com/pro. and it is a historic day for brazil as in the early morning hours, the senate voting to suspend the president dilma rousseff, and proceed with the trial. our international correspondent michelle caruso-cabrera, and wild pictures out of that area in brazil. >> and yes, the change of leadership is already under way, and reuters is reporting that the new interim president has decided who the new finance manager will be. hen ree kay meirelles ran the
central bank when things were much better, and he was a frequent guest here on cnbc when he held that position, and however, dilma rousseff is not going down without a fight. in a fiery speech this morning, shele told the world that she has been actually been ousted in a coupe, and never broke the law. and to the left, who do you see? >> the predecessor lula dasilva. >> yes. she was forced to resign after a 14-hour debate in the senate which started at 9:00 a.m. yesterday, and finished before dawn, and only 41 senators need to vote yet and in the end it was far more than needed, 55. outside of parliament thousands of protesters, and some supportive of rousseff, and some supportive of the impeachment, and a look at the modernity of the moment, and even before she was ousted, she posted a defiant statement on the facebook page.
it was no surprise, but what stockholder s a stockholders are looking for is the sail can of the defeat which is going to foreshadow the next event which is the trial, and the next vote you need 54, 2/3 of the senate, and you were almost there with 55 to dday. >> and so, now, brazil is looking terrible in the face of the olympic, and lot of concerns of what is happening there. add to that, dilma rousseff is in trouble, and remember 2/3 of the parliament is under investigation for corruption. >> it is like whack-a-mole. >> yes, it is. >> one corrupt person is whacked down, and another one pops up. >> yes. michel temer is also under investigati investigation, the former president, and interim presid t president. >> and they are ex-presidenting the trial will last how long?
>> the trial will end in three months, and then a vote. so she could be permanently pushed out before that the if all goes the way it is supposed to. >> and so this could be a storyline in the olympic games? >> yes, and things happen in brazil, and if it is decided within six months, she can go back to her position and still be facing a trial at the same time. >> wow. and all this while the stock market is one of if not best performer year to date, up 38.5%. >> yep. >> is the msci of brazil, etf, the ewz. michelle, thanks. you have a tease on power? >> power starts in nine minutes. we'll drill down more on the retail rec. there is all this talk. what is the problem with retail? maybe it is actually about the consumer. where is the consumer right now? are they to blame? we have two guys on. one says oil is going to $60. another says it's going to $20. tesla shares are down because bmw says they're going to have a
big cool electric vehicle coming in and out 2020. we're going to discuss the future of tesla on the company. >> that tease might have been longer than the actual show. i liked every one of the stories. i'm in. >> you know what? i have another storey. you'll be talking about this a little bit as well. the presumptive republican nominee donald trump has left his meeting with gop leadership on capitol hill just moments ago. there is the suv brigade pulling frout capitol hill. does volume that meeting following mr. trump and paul ryan. one in which the speaker stops short of full fledged endorseme in. td sat meeting was very encouraging and that they are in the process of unifying the republican party or at least attempting to do just. that but mr. trump on the move yet again in the nation's capit capitol. we'll see you shortly. i think you'll have something to say about that meeting today. coming up ashgs look ahead at the second half of the trading day. plus, shake shack earnings are out tonight. find out what josh brown has to say about that.
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or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use. insurance coverage has expanded nationally and you may now be covered. contact your health plan for the latest information. . we are back. just a few minutes to go before "power lunch." i do want to show you apple and alphabet because we begin our program by telling that you apple had broken below $90 for the first time in a couple years, lost the top spot in the battle for market cap leadership to alphabet. well, apple's come off the lows and snou back above alphabet.
they're fighting it out. the fact that they're even fighting it out gives you an yfd the kind of ride that it's been lately for shares of apple. >> it's like a firm in aladar. only you and i remember. that everyone else is too young. >> yeah, right. >> thanks, joe. >> shake shack? >> yeah, let's look ahead to shake shack after the bell. >> this is a really tough one, scott. i've been long the stock and long since it came public. hit quite a wild ride. i don't think anyone reasonably believed the stock belongs in the 80s and 9 o's. there was a massive short squeeze that took place. ever since, it's been really tough sledding. the company continues to execute. same-store sales growth slowed a bit. it is still positive. tonight they should do five cents versus four cents last year. but that's on like 40% revenue growth. what's really happening is the company's invest in a lot of money. they told the street they would build 450 outlets. and that's exactly what they're
on pace to do. in fact, if you walk around new york city, you see a lot of the work sites where new branches are under way. penn station may be the highest traffic location in the world. when that opens, we just found out about it on monday. the signs weren't up. and harold's square which is macy's. >> but you're a long term investor? >> yeah. >> you bought the ipo. >> by the way, it's not a cheap stock. it's cheaper. it's still not cheap. it's way premium multiple even to mcdonald's which is now selling at 24 times earnings. so i'm not making the case. get in before earnings. because it's almost impossible no matter what they say for there to be a huge upside surprise here. that's how expensive the name is. but i'm open opportunistic. if they sell it off on earns, i'll look to add to my position. by no means do i have a full position. >> it got as high as $90. >> yeah, i was ridiculous. completely unjustified. you see what happened since. >> i'm just curious how negative
the impact is when shake shack initially seemed to populate all the regional malls and we know now what's going on with the malls. we know what's going on with the traffic. >> i don't think they're a mall brand. >> they're not a mall player. >> i'm curious to know what percentage of the stores are in malls. >> very few. >> what they're doing is targeting city centers in cosmopolitan cities. and they're trying to locate themselves, you know, where there is luxury and high end shopping which tippic sli not most shopping falls. i think they've had more success in new york than outside of new york. that's been a big challenge. and if that continues, that's not great for a company that's talking about doing 400 stores all over the country and elsewhere outside of the country. >> how do you feel about crowding in the space? there certainly have been a few competitors that have come up. >> yeah, burger fry is a big competitor, habit which recently became public is a big competitor.
i think it's the nature of the burger business. there is always a lot of competition. the question is who can execute and last? >> restaurant concepts are always fleeting. chipotle had the longest life. see what he is happening there. >> what happened to chipotle is -- >> right. but hit a long slide. whether it's rainbow cafe or a thousand of the other ones. >> rain forest cam cafe. >> yeah. very quick. >> here is one off hand, mcdonald's. yum controls. >> that's not what i look as concept. that's a business that built out at a different time with much loyal following. it's not a concept or a fad. shake shack came out as a fad. i think it should have had a longer life than the stock d but for the fact it rose so quickly -- >> yeah. >> it was due to fail. >> you're mentioning pectinn
station. are people going to wait around and wait for the burgers to be made? you're in, out, getting on the train. you're constantly moving. i don't know how successful that can be for them. >> it remains to be seen. >> all right. markets are closing. i'm sure it's heavily trafficked. >> they have one in grand central and there's a line wrapped around the corner. >> they're going into other areas aside from the density populated areas. >> does this stock get back to $90. >> number nobody thinks it's going back to $90. >> and if you're taking the 6:40 train, you're not getting there at 6:00 to get a burger. >> speak for yourself, joe. >> who said that? >> that's what i was thinking. >> all right. give me final trade. >> oil. i want to see what happens if it's going lower. that is the battleground right now driving the market. how is that? >> josh? >> until further notice, oil. >> okay. >> rainbow cafe. >> i'm short. >> ge. >> he meant rain forest cafe. >> whatever. >> he is at advanced age.
i like ge, 30, 29, $28, i'll take it. >> in the disaster that is retail, let's see j.c. penny reports earnings tomorrow. >> he's still holding on to that. >> no. you remember i sold it. so i'm looking to get back into it. the point being they exceed expectations. >> we have to go. "power lunch" begins right now. >> and welcome to "power lunch" where we're taking you inside the big meetings in washington today between presumptive republican presidential nominee and donald trump and the rest of the party. could this be a turning point for the gop in this election? welcome, everyone. i'm along with melissa lee and tyler mathisen, brian is off today. house speaker paul ryan making the headline of the day at 11:35 a.m. washington time. >> i was very encouraged with what i heard from donald trump today. i do believe that we ar