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tv   Fast Money Halftime Report  CNBC  May 19, 2016 12:00pm-1:01pm EDT

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test. test. test. welcome to halftime report, i'm melissa lee in for scott wapner. ferrara is set to speak charging dean foods and thomas davis for insider trading. with e will bring that to you when it is under way. joining us is pete and jon and steven and pete. >> we have a statement from phil
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mickels mickelson's attorney who says that phil is not charged with insider trading and phil is an innocent bi-stander to others that he was doing something that is not something that he was aware of, but they say it is a tip from gambler billy walters who was receiving information from the former dean foods' chairman thomas davis who is suffering financial difficulties and received some loans from walters and allegedly tipping walters to insooider informatio about the dean foods at several different corporate events. walters made trades on those and took advantage of the information in other ways according to the u.s. government, and there is a lot here sh, melissa, and we will g to the bottom of it as soon as we get the bottom of it. >> and this is a long running crime, eamon, because it is between 2008 and 2014, and during this time frame,
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according to the allegations, walters made $32 million and avoided $11 million in trading losses. >> there is a lot more coming out of the documents released so far this morn, and including the scheme that were apparently hiding the tracks by prepaid cell phone, and code phrases likeb the words dallas cowboys to refer to dean foods when talking about the trading tips, and that sort of thing. and also in allegation here, the s.e.c. says that davis, the former dean foods' chairman misappropriated funds for a c r charity for battered women to repay gambling debts he e owed in las vegas, so it seems that there is a lot more here besides the insider trading allegation, and we will see what details the government brings to us in the news conference in in a few minutes. >> as soon as preharra speaks,
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will bring that to you. and at one point in the session, we are down 0.08, and what are you seeing with this slight pairing of losses? >> well, is it is the oil that is rallying a good 50 cents here in the last ten minutes or so, and so this is a lot of the folks out there playing for the apocalypse this morning on the morning and that is the wrong move to the make, and in terms of the near term rally, it is oil itself, and the decline today is orderly. i don't believe it is, and i don't know the volatility side of it, but we are selling off, and it is really not in a chaotic fashion. >> sure. >> and the sell offs are sell-o sell-offs and the losses are losses, and this is the fed that is actually preet bharara is speaking. >> today, we announce charges against billy walters known in the gambling oworld, and tom davis, the former chairman of
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the board of dean foods which is a fortune 500 company which is the largest producer and distributor of fresh milk. the defendants are charged with participating in insider trading scheme that is fairly remasrkabe in duration and inp scope. as alleged for over five years davis repeatedly and systematically fed material non-public information about dean foods to walters who in turn benefited hand somely to the tune of $43 million in profits made and in losses avoided from his trading in the dean foods stock. with the direct channel into dean foods' board room, walters place placed enormous bets on the stock, but described in the indictment, the bets were no gamble at all, because they were a sure thing, because armed with inside information from davis, walters traded in advance of good news and bad news alike, and it was all good news for walters, because he had the information before everyone else. he had tomorrow's headlines
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today. as we allege on at least ten occasion, walters traded on the material nonpublic information and at one point on one day, this single investor accounted for 37% of all of the trading volume in dean foods' stock. 37% on one day. as also alleged walters and davis made efforts to cover up the conduct, and walters supplied davis with anonymous prepaid cell phone specifically for the purpose of communicating inside information about dean foods. walters and davis also used coded language as we allege to hide from law enforcement, including referring to dean food s in the illegal conversations as the dallas cowboys. we also allege that davis provided material nonpublic information about darden restaurants, and allowing walters to make $11 mi million
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profit on that illegal scheme. in addition to the participation in the criminal scene, mr. davis has plead guilty and cooperating with the government's case. walters was arrested yesterday in las vegas, and we are spect to walters, this is allegation, and he has a presumption of innocence, and he has a credible lawyer, and this is going to be playing out in court. now, some specifics about the charges. at the alleged criminal scheme began in 2008 and continued through 2014. during this time, davis provided wa walters with the full spectrum of nonpublic information that is vitally important to investors. information about earnings, financial performance, internal forecasts, and proposed mergers and acquisitions. let me highlight one series of trades for now. between 2010 and 2012, davis
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allegedly gave walters secret updates about dean foods' plans to spin off white wave, successful organic dare the ri business that ultimately separated from dean foods in 2012. on april 9th, 2010, at a meeting in las vegas, davis we allege tipped walters about how dean foods had engaged in an investment bank to explore the spinoff of white wave. that tip was provided on the very same day that walters arranged a $625,000 loan for davis. and the very next business day, april 12th, walters purchased 1 million shares of dean foods followed by another 510,000 shares on april 14th and 15th. some of that is depicted on the charts to my right as i said, and the spinoff there came on april 9th, 2010, and the same time that the loan is arranged
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for tom davis, and so it resulted in the buys of 1.5 million shares of the an t anticipation of the potential spinoff. along the way, there was a hiccup in how they were going to be doing, and that earnings was alleged to be passed on from davis to walters, and at that time, when we allege that the billy walters sold the entire stake that he had just accumulated 1.5 million shares a few weeks later, and then once the back earnings news came out on or about may 10th, and dean foods' stock price went down by 28%, walters ended up at that point walking away with $7.3 million and what else? he rebought 11 million shares stakes that he had accumulated a few weeks earlier by not avoiding the loss, but reducing the cost of the shares and the investment for later gain in the
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spinoff with respect to that knowledge. by the way, the walters' dumping of the shares was so sizable and anomalous that the trading made up 29%, and 16% respectively of dean foods entire trading volume on those days. so now, as the indictment describes fast forward to august 7th, 2012 when dean foods announces the plans to spinoff from whitewave, waltle lers wal positioned and thanks to the secret bug in the boardroom, he had loaded up on the stock, so in the days leading up to the the announcement, he bought 2.8 million more shares to the increase the holdings to 4.8 million shares of dean foods and then august 8th after the stock price rose 40% on the plans of the spinoff, walters' position grew over 17$17.1 million in
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value. ultimately by october 12th when the ipo was priced, walters owned 1.53 million shares of dean foods valued over 100 million, and the shares he ultimately sold through august 2013 for the gross proceeds of about $110 million. as you might expect a case of this type with the complexity and the significance requires close collaboration and coordination together and in parallel with the law enforcement part nrs and the representatives and some of them are standing up here with me today. i am joined by our partner in and so many other cases led by the fbi, and my friend the great diego rodriguez who is the executive in charge of the new york field office. i want to thank diego and the team for the great assistance in this investigation. i am also joined by the director of the s.e.c., and their san francisco office in particular for all of the work they have
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don done, and he is going to be speaking in a moment to talk about their separate case shortly. we are also joined by the postal inspection service represented here by thomas boyle, and the assistance director here of the united postal service, and last but not least, i want to acknowledge my colleagues handling the case, and their supervisors, and the chief and deputy chief of the commodities fraud task force. brazen and insider trading continues to be a blot on the securities markets, and so the integrity of the markets continues to be a priority for this office. when the board member of a fortune 500 company feeds inside information to a professional gambler who makes a killing on well-timed trades in that very company's stock, that is a form of corruption. corruption of our markets. we don't let corruption stand.
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i would like to bring to the podium, e diego rodriguez of the fbi >> thank you, preet. we have been listening to the u.s. attorney preet bharara. and eamon, who stood out to me is the sizable volume of any given day of the trades made between 16 and 37% of a total day's volume on a few different days. >> yes, melissa, that is not subtle trading action here by billy walters. but you heard preet call it a remarkable in the duration and scope, and one of the questions is going to be why would former dean foods chairman thomas davis engage in this behavior with gambler billy walters. well they lay out some rational saying that following the
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retirement from the investment banking, davis' financial situation declined because the spending and the gambling habits did not change despite the lower income. he owed the irs, and credit card de debt, and trouble in the portfolio, and owed $550,000 to an investment fund that he managed. so if picture that is emerging is thomas davis desperate for the cash here, and engaging in the tipping behavior here to billy walters to recoup some of the shortfall here. so this is a person under severe financial duress according to the s.e.c. >> and they said that now, after pleading guilty and cooperating with the authorities, but what is interesting is this character walters, he is also under investigation if he received information from carl icahn regarding clorox.
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>> yes, and his attorney said that the allegations are false, and he is going to be challenging them, so we will have to wait to hear more from him about his side of all of, this and the government's case here simply allegations here, and they will have to prove that in court. a lot of the deal is to be determined. >> what a juicy case. eamon javers in d.c., and of course, as you can see that the press conference is continuing, and we will follow the headlines of this insider trading news. this is what is come up on the "halftime report" though. >> and now, rally for an old stock that pete and jim still own. find out if they are sticking with cisco. and from tesla's $2 million stock takeover to what they are trading? >> and also, the latest on the egyptair flight that went missing over the mediterranean. we will bring you an update ahead on the "halftime report."
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♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
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welcome back to the halftime report, and investigations are under way into the presume crash of an egyptair flight over the med tr mediterranean. they are not ruling out mechanical failures or terrorism. and white house say that president obama has been briefed on the crash and the investigation, and we of course, will bring you the latest developments as they happen. meantime, back to the press conference where the insider trading is being outlined against billy davis and walt er.
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>> and now, on this chart, based on tips from davis in the months of may and july, and then at the end of july 2012 about one week before dean foods publicly announced the spinoff of the profitable subsidiary whitewave, walters contacted mickelson, and placed a bet with him and owed him money. they spoke and traded text on friday july 27th, and saturday july 28th, and walters urged in the discussions that mickelson trade in dean foods stock, and based on the discussions, mickelson bought 2.4 million tlof a stock he had not purchased and he purchased with margin loans from the broker. walters himself purchased $100,000 -- 100,000 shares, and
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that was worth $153 million. and then after the markets closed, dean foods announced strong quarterly earnings and spinoff. the share price increased 40%. the next day, mickelson sold all of his dean foods shares for a profit of approximately $931,000 and using part of the proceeds from the trading windfall, mickelson repaid walters in september of 2012. you can see on this chart, the chronology as when it was purchased by walters of the stock, and the conversations between mickelson and walters on july 22nd. mickelson purchased on july 30th, to 3 # 1st at the same time that walters buys stock, and then the announcement by dean foods, and ultimately the sale and then by september, mickelson using the proceeds to are repay walters the gambling
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debt that he owed him. simply put, mickelson made money that wasn't his to make. the action against mickelson makes clear that we will pursue both those who engage in insider trading and those who profit from it. the bottom line is that today's action is brought to light an egregious and large scheme that reach into the highest levels of the courtroom. and davis breeched the law despite being in dire financial strait straits, and walters made at least $480 million based on the gambling of a sure thing. today's actions would not have been possible without the efforts and the dedication of the important law enforcement officers. first the 71st district of new york which is very important pa partner against insider trading and the securities law violations general ly. i want to thank the federal bureau of investigation, and the postal inspection for their investigation, and finra in the
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tireless surveillancing of the vast markets. finally, are let me recognize the fcc staff who are talent and -- okay. we are listening to the director of andrew serezzni saying that the golfer phil mickelson was involved in the scheme led by chairman of dean foods and a o professional las vegas gamble, billy walters. so walters after getting information from davis passed on by text to phil mickelson who has won three masters bought stocks, and then a profit he made $9311,0 -- $931,000 in pro, and are repaid walters for this, and we know from phil mickelson, he will repay the profits that he is being accused of ill-wrongfully getting let's say. what is your reaction to this,
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because if you are a trader at home, you are thinking, that gosh, these guys, and how crooked can they be? >> and also, you nknow, forgive me, but how dumb can they be, and at this point, preet ba harer ra has anybody who is thinking of this lined up to be indicted. so you are going to be caught if you to this, and so don't do it. but the one thing that is sad is phil mickelson's involvement in it. >> he has not been charged. >> and i'm not casting the shade on him, but if you are in the public eye, be careful with whom you associate with, and but for this guy walters, he never would have gotten himself in this situation. >> and what is stunning is is the volumef of the trades that billy walters made on any given day surrounding the bad earnings or the whitewave spinoff and how it could not be disguised in the equities market, but we were talking about off camera how unusual there -- there are unusual activities and you never hear these charges? >> well, he was right that some
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of the guys that have traded on the inside information about hilton for example when raj did that. and it is in the options markets in a very big way leading into the 4th of july holiday a few years ago, but you are right, mel, because these guys were so bold that they were casting anything aside to say, you know what, i want all that i can get. and most people doing this activity will try to the mask it with a burner cell phone, but by trying to make smaller trades across multiple days, and these guys were trading 37% a day, and ye yeah, you are going to be showing up on a lot of screens. >> and it is a problem with e ego, and who you associate with, to your point, jim, and what you do with any of the associates, and the fact that if you are going to get the insooideer information like apparently phil might have gotten, you have to discard that and say, you know what, that is great and now you
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can't touch it. you cannot touch it. he has all sorts of income streams, and why do this? >> and the press conference is going on, and we will monitor it, but meantime, back to the markets. let's look at oil, because the intraday charts, and this is interesting reversal, because brent was down 2%, and now down less than a percent here, and this is probably why as you say that the markets have staged a little bit of the turnaround here off of the lows. >> 47.90 for oil here, and that is clear areally the reason. and again, playing for the apocalypse because the federal reserve suggests that they are going in june, but i think that it is the wrong strategy. >> i agree, because the fed is jawboning still, mel, and they are noting to to be moving with the combination of the threat of brexit and the betting line is 72% thatb britain will stay in the european union, but incidents today as we find out more of what happened with the egyptair flight could be a
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catalyst as well to keep the fed from making a move here, because again, if you are going to to be softening up the economies more and travel softens up, it is going to be hitting commerce, and one of the things that they are very aware of. >> and pete, we were talking about the financials last night on the 5:00 show, and jon was mentioning the skepticism around the fed today, andk ifs are down 1.25%, and they can't gain any are traction. >> yes, and what pushed the narrative here from yesterday to further down in july maybe, is the idea that suddenly, everybody is focusing on the brexit. it seemed that yesterday, you know, the brexit is going to be happening and the rest of it, but it looks like june has to happen, happen, and now it is feeling like, brexit, wow, we may have to push it back to ju lishgs and pace through this whole thing, and that is literally in a 24-hour period. >> and the uk retail sales data is good, and they were thinking that people are not pulling back on the consumption wor iing are
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of the signs of the brexit, and maybe it goes, and it is is okay? >> well, the tea leaves are saying that britain is going to be staying in the union and that is a positive for them and us. what is more interesting though is the fact that the market is, i will use your words, joe, because it is selling off orderly today, and despite the fact that the fed, and nobody expected them to be as hawkish as yesterday, and in my eyes, very positive sign. y you go back a week ago 11% chance that there would be a june hike, and now it is closer to 50, and that is a seismic shift, and for the market to be off less than 1%, that is huge. >> we go to sue. >> yes, cbs is announcing the fact that legendary newsman morely safer has passed away. he died at the age of 84, and you might recall that just last week cbs basically did a special in his honor as he got ready to retire from cbs after a very long and very successful career.
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morely safer was 84 years old. we are back in a moment. turns rc turns rc why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card.
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see car insurance in a whole new light. liberty mutual insurance. back to the trader blitz, four stocks making news
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todayment and bottom line estimates,b we go to dr. j. >> bennyoff took the sales off at salesforce to slam larryel l ellen -- ellison, and he loves to slam him, and says that they are doing so good, because oracle is not. so salesforce is still a great buy. >> so salesforce over oracle? >> yes. >> and tesla plans to distribute shares for stock, and what are you hearing? >> well, elon musk said, we will accelerate and not only before 2020, but it is 2018, and 500,000 units produced and they had to do it, but a matter of when, and it happened yesterday. you can understand that the most important thing, look at the reaction of the stock, because they are not hammering the stock like you'd expect, so it is an interesting reaction today. >> and yesterday, you got the
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goldman sachs upgrade and then they announce the lead underwriting for the offering, and so the price is interesting. >> yes. shocking. >> the chinese wall is holding up there. >> and monsanto to have a bid -- >> well, it is complicated, taking on the bid if you are bayer, and handing off the plastics unit to acquire monsanto, but the markets are greeting it with skepticism is, and it is rightful skepticism and i don't know if this is going to happen. >> and now, after bank anheuser is pulling down the talks? >> well, where there is smoke, there is fire of discussions going on, and the stock is up 25% over the last several week, and for the consumer staples company like this, trading 26 times next year's earnings, that
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is all of the gain you will get, and you don't need to be in this at this point. >> and coming up, forget the favorites, and the stocks that are poised to the pick coming up next. recently, a 1954 mercedes-benz grand prix race car made history when it sold for a record price of just under $30 million. and now, another mercedes-benz makes history selling at just over $30,000. ♪ and to think this one actually has a surround-sound stereo.
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back to the "halftime report" and we go to sue herera for the latest on the egyptian plane missing. >> today, we have confirmation that the egyptianair plane did crash, and there were no sign of survivors. >> the adm miministrator says t the possibility of terrorism is higher than technical failure, and he spoke at a news conference. and phrfrench president francois hollande held an emergency meeting and spoke by the greek president to talk about the circumstances around the disaster. >> and friends and family rushed to the airport shortly after dawn today after it was due to land at 3:15 a.m., and they said
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that the plane was flying at an altitude of 37,000 feet when it disappeared from the radar at about 2:30 a.m. we will keep you posted as this still developing story unfolds. that is the news update at this hour. melissa, back to you. >> than you, sue herera. at times volatility and fear can drive the market, but there is also a time to take advantage of this time frame. and we are joined by nillie who is focusing on the uncomfortable investment opportunities. what do you mean by that uncomfortable? >> first of all, thank you for having me, melissa. in order to find unique investment opportunities, investors have to be comfortable with being up comfortable, the thing about the easy decisions in the market, they have been made, and the easy ideas are priced into the asset prices, and so to find more unique return opportunities, sometimes
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you have to find situations that are uncomfortable that kacause e investors to overlook the stock. >> and the stock being a dog or the sentiment being awful on the stock or what? >> well, at materin, when we are looking for the unsentiment that is uncomfortable, but the materials underlying are reli reliable. >> and now, looking at deluxe as a check company, and i write maybe one check a month, and i mean, who writes checks anymore? >> exactly. so when the investors are hearing about buying a check printing company, and they are like, yuck, who wants to get into the check printing for online banking and fintack, but while you look at deluxe while the primary business is check printing, this is a company throwing off a lot of cash. they have e begun to focus on marketing other sales and marketing services to the
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customers who are small businesses and financial institutions, so while five years ago check printing was more than 60% of the business, now it is less than 50%, and the marketing other sales and services has become its doubled. >> and it is transitioning right now deluxe. >> and what about this one, the higher than expected earnings, and you would say, the space that is one of the stocks that encapsulates uncomfortable, rackspace. >> yes, that is a broken stock. rackspace was a high-flying growth stock with sales in 30% if you go back to 2012. they provide managed cloud services and hosting the apps and the data for the customers online and providing support for customers in the cloud. when they started to compete
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head-on-head with amazon and microsoft, and the likes of these when they came into the market, rax stumble and we saw the growth from 30% to 10% per year, and now, that is is uncomfortable situation, and the stock price came with it, but what rackspace has done recent ly is interesting. they have decided instead of competing head-on-head with amazon and microsoft, they said, let's provide our services for the cloud even to the customers of amazon and microsoft, so now, instead of just focusing on the cloud insfra stra-- infrastruct they can leverage the human capital with something they call fanatical support the grow with the former competitors. >> nili, thank you so much for coming by. jim, does anything capture your interest? >> well, what does capture my interest is the broken growth
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sto stories. can i ask a question -- >> no, no, we are out of time. >> and the broken growth story is that you have to make shure that you don't catch a falling knife. and so you have to use the technical analysis to make sure that the turn is in. and coming up, the najarians seeing double-dip in action, and what they are seeing with somebody dying every 19 minutes of heart disease. and now, there is one biotech company that discovers the gene that causes heart attacks. we will be right back. there are two things you shouldn't do
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>> coming up at the top of the hour on "power lunch" we will look at tyler mathison who is on wall street speaking to some power brokers. and the shares of tesla is down, and we have a bull/bear debate over that stock. and we will have the fallout of the phil mickelson insider trading case.
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that is on "power are lunch" that is going to the get under way at the top of the line. we have two najarians on the desk, and so some unusual options trade, and jon, you are see the bearish activity on a industrial stock? >> yes, cummings, and the stock is up 23%, mel, year to date, and that is outrageous performance given what the rest of the market is doing, but now, take a look at what we saw today, 109 puts that expire next week. these are just in the money puts, and somebody is making a large bet that couple mins is going to be trading on the put, because they have long to be in it. >> are you in it? >> yes, i am. >> glad you got dressed up, jon, with the best ripped jeans. >> they aret no ripped. >> and now, we talk about the
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the gold stocks all of time, and after the fed, you saw the gold sell off, and many of the miners and ken ross is one of the trades that were low and look at the trajectory of this and jon was talking about the p performance, and look to this year to date, and huge upside and trading 580 days ago and then a sharp sell-off and sold off more, and i will clear that out, and take a look, the options that are going way out the to november, and the 5.5 calls, mel, over those trading at 60 cents taking a shot for a recovery and it does nott have to happen now sh, but over to t next couple overfew weeks but i am in this trade to win it, and 60 cents is what they are paying for the calls. >> thank you, guys. >> thank you sh, mel. and the dollar hitting the highest level in two month, and jackie deangelis is down there with the future crews. >> yes, and the dollar is
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getting a bounce coming off of the session highs. jeff killberg, signaling a hike in june, and some have taken it off of the table, but what does it mean for the commodities in general? >> well, jackie, it is going to go higher, but the fed is not signaling they will hike in june, but they stomped and said, hey, take us seriously, and the fed rates did jump up, and now we are look at the 24% chance of the june rate hike, but only 24%, so it is much of the year we saw that range, but the fed, what a pouting session that was yesterday. >> and jim, your levels on the dollar index? >> i think that today is a big deal. it is trying to go above 95.25, and if it settles above the there and strong, it will break out of the range that we had established over the last couple of weeks, and although, it did rereject the highs coming up, and if it closes below the 95.25
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level, it is a signal to go smack into the level of 94 or 92 target in the short term. >> all right. we are watching closely. meantime, the online show of futures on cnbc.com, and we have dennis gartman on who will tell you the one commodity that you need to have with the commodities going in the red today. >> thank you, jackie deangelis. and so with the dollar decline, should we be worried that this is going to be hurting stocks? we are seen it before, jim? >> yes, the dollar is going to to be going higher here, but it is not the same move of late 2014 and late 2015, and that move was sharp and very prolonged and it really hurt multinational stocks, but i don't believe we will get that move today or for the next week, because you will get one hike whether it is june or july and the fed is going to be happy with itself. >> and the biggest concern in january is what would the chinese be doing with the policy of the currency, and continue to depreciate it or not, and this rally has been built upon the
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chinese currency being pegged at the u.s. dollar flat or slightly higher, and the concern is if the dollar rallies do the chinese policy makers appreciate it again, and you are back to the place in january, so you have to watch for it. >> you are worried? >> well, you have to watch for it, but that is not necessarily going to happen, but we have to return to the conversation of january, because it is a problem for the market. >> and now, a gold miner you are, and as we are looking at the dollar, is that going to slow down the gold? >> well, the thing in the corner is druk en miller and hiding ou, and shifting to more and more gold exposure so when i saw the paper a paper, and the slide of the stock, why not have an opportunity here? >> and we have a news alert here from sue herera on steve cohen? >> yes sh, the billionaire inver
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steven cohen has won the dismissal of a long running lawsuit in which his long-time wife patricia accused him of cheat i cheating her out of millions of dollars in their divorce. the judge said that she failed to show that her former husband defrauded her by hiding $5.5 million in a new york city real estate transak is shun and claiming that the money is lost. the judge said that she did not present compellinging evidence. the divorce predated the time when steve cohen co-founded sac capital which is the hedge fund that made his name on wall stre street, and it is now a family office 7.2 management. and now statements from both side sides. pa vish sha cohen's attorney says that we are in belief that if the evidence were put before a jury, she would prevail, but
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she does have an opportunity to appeal. and so we are thankful for the thorough and thoughtful dismissal.sue. thank you. coming up, how you would like to lower your risk of having a heart attack? amgen is working on a drug to do just that. we have details next. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.
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welcome back. a potential breakthrough in the world of heart research with amgen developing a working or a development of a drug to lower the risk of heart attacks. we have more on that story. this is a fascinating story. it really shows how big data is helping insurers with the props. >> a lot of ways this is what president obama is trying to do with medicine. sequencing the genomes of a lot of people and then comparing that to what happened in their lives and finding out what genes are saying about maybe they have something to protect them. amgen bought this company for had $400 million four years ago. they've sequenced the genomes of a lot of the people in iceland. they identified a gene that now they discovered that mutations in this gene confer to what look like a much lower likely hfd getting heart disease or a heart attack in people's lives. and so they did all this sequencing research and what amgen now is going to do is take this target that they've identified and develop a drug to
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mimic the effects of that mutation. essentially, these people in nature just exist with a lower heart atass risk. amgen is going to try to create a drug that will give you the lower risk, too. >> specifically, it's a 34% lower risk. it's a sizable amount in terms of how much your risk is transferred. that is a year in life. >> yes. this gene is shown to have an infect on cholesterol and on heart attack. of course, we know there is a link between cholesterol and heart attacks. they found that effect on heart disease and heart attacks is bigger than you'd even think would be there because of the cholesterol effect. so they're thinking they have even a new mechanism that affects heart attack. >> now that they isolated this gene, does amgen maintain an advantage over the other drug companies or can they now know this gene gists and off to the race zblz you see how much i love melissa that, is such a good question. you can't patent a gene. other drug companies could go after. this i was just talking with the ceo of decode, the company that did this work.
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they say we promise the people of iceland whether we sequence them this that we would publish this work. so other drug companies can go after the target. amgen probably has a head start. >> huge head start. we talk about it all the time. i've been less in the bioteches recently. probably because of the political landscape. i look at many of these names, pfizer, and the pipelines building. it's absolutely incredible. huge week this week. >> absolutely. >> that will be a big one. fascinating storey. up next, the top trades of the second half to have day's session and the battle for trader of the year races on. we're there on top. we'll be right back.
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welcome back to the halftime report. that's what it looks like on the other side. "power lunch" getting ready over. there brian and michelle getting prepared. >> we have to do something. >> for once. >> not your time to talk, brian. wait! all right. market is closing in three hours. we want to get to your second half trades. pete, what you are watching? >> keep an eye on dee deere. there is huge activity throughout. keep an eye on de. >> and it reports? >> tomorrow. yeah. >> dr. j.? >> that cummins is playing out now. but the puts that were bought, that stock just dropped like 3 1/2% right after we showed that on the board over there.
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and on the bullish side, macy's. stock near 52-week lows. they're coming in buying calls. >> yeah. strong activity there. jim? >> well, we talked earlier about the dollar. i still thing that strengthens and the derivative effect is looking at commodities. prices are going to sell off as the dollar strengthens. >> joe? >> probably two months ago we talked about gap on the show. i think it was $29.50. i said it was going to go bf $30. gap is the poster child for the problems with mall retailers. gap is going to report, obviously. clearly i think that's going to be the narrative tomorrow back surrounding what's going on with retail. i'm not saying if it is good or bad. i loved it at $30. if i say sell it at $17, it's going to go back to $30. it will be a important part of the conversation. they were the first one to shoashow the weakness. >> walmart setting the tone for retail. buyers of retail, hold up your hands. you're the only one.
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which one? >> j.c. penney and tiffany's. you look at retail sales number, it was positive. that's what's going to be going forward. >> that does it for us on "the halftime report." "power lunch" starts right now. >> thank you, melissa. we'll see you in just a bit. welcome to "power lunch." stocks are selling off. expectations grow over a possible june rate hike. there's a look at all ten sectors now. utilities and consumer staples are in positive territory today. hi, everyone. i'm here along with brian sullivan. tyler mathisen is going to join us in just a bit from washington. but first, let's kick off what's going on with the markets. more on this thursday market slide with

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