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tv   Fast Money Halftime Report  CNBC  May 25, 2016 12:00pm-1:01pm EDT

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investigate ing t investigating the operating data related to singles day as well as investment in another network. certainly something to watch there. >> and we are off of the highs. the dow is up 1.77, and oil is trying to get to $50 where it has not been in the since november. ♪ we are on the road to nowhere ♪ ♪ come on in inside carl, thank you. welcome to the "halftime report." i'm scott wapner, and the stock trade, are stocks dead money or the best for the money as the rally continues. josh brown, stephen weiss, and jon and pete najarian, and also with us on the set is jpmorgan head of u.s. equity strategy, and so it is a great debate, where is the stock market to head with the fed priming interest rates, and the possible brexit looming, and the cloud at
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home, and so techs and fpgss are leading the way. josh brown, time to be more bullish about the market despite the headwinds that are perceived to be out there? >> well, i are will say this, if you are into the confirmation bias, you are getting it right now, because the tone seems to have shifted almost overnight, and we are challenging the old high going back to may and june of 2015. i don't know if this is the time that we punch through, but we have been here before several time, and this is where we continue to fail. if we were to break through at this the point, and do it with the breadth that we have right now, which is very good, you will have all of the confirmation bias that you want. >> and we have dow, and s, and p and russell and nasdaq above the 200 days, and the technicals lining up, but yet, you are skeptical of it, and what are
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you saying? >> well, the market is caught on the technicals and the weak upside, and you have a dovish fed, and the dollar showing some stabilization year to date and likely to reach a floor. and the earnings, and there is a disconnect between the fundamentals and the price, and we ve seen five quarters of the top line contraction, and three quarters of the bottom line construction, and with need a weaker dollar to get some relief and the earnings going, and then more upside in the equities. >> this is what jim cramer said this morning on "squawk on the street." we can react to it. here it is. >> finance and tech are this stock market, and it is amazing. this is stealth rally, and nobody is talking about it. if you want to get out of the stocks, you have to stay in, because it is day one of the rally. >> to that point, okay, a large section of the market, tech and fpgss looking like they want to
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participate, and fitz takes up the china gdp forecast for '16 and '17 and housing is looking strong based on the numbers yesterday, and doesn't it make you stand back and say, well, maybe it is time to be a contrarian to how i thought before? >> well, i think that the market overall, i think that it is limited upside, but, yes, certain parts of the market, and s sectors, and certain parts of the equities globally have upsi upside. so for instance in the u.s., i like the energy trade and the a materials trade and the financials are more interesting in the short-term tactical perspective, and globally, emerging markets is a great trade with respect to the u.s. which is on the winning side over the course of the last three, four, five, six years. >> and i want to point out that the sectors that you like, and have liked have done the best since the february 11th bottom, steve, those being energy, materials and financials are up 20% since this diamond bottom of early february. >> i want to agree on the financial, and disagree on the
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energy and the materials, because i think that, not that i think that there is tremendous downside, but of course, who knows, because the best can't analyze the energy, and we we have seen it. i am concerned about the dollar, because we are in a trading range up against the upper end right now, and what is happening is that there is so much cash on the sidelines here and more so in europe, it comes in and plays the momentum, and shaken out so easily, but right now, you have more so today to the comment about earnings, multiple expansion that is not deserved in the market. so you go to the upper end, and then you will have the dollar to strengthen, and more of the s&p earnings are outside and that going to hurt ultimately. >> but are we saying that the stock market will not go up if the dollar incementally rise. and wasn't the dollar the speed at which it rose and not the fact that it rose? >> absolutely. and everything is ready to change in psychology, right? no expectations.
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>> they said they were unprepared. am not saying, thatt play the markets, but the stock s. yesterday in financials and tech, they were working, and always things to do in the market, but that is the danger to be too bearish or short, so i have not shorted stock for i tont know how long, but what i am long and bought yesterday with pete is volatility, because that is so low and cheap, and that is how i want to participate, and in financials, schwab and bank. >> and what aboutb yesterday that gundlach said that the market is dead money, and that it is not healthy, and this is a short squeeze that we have seen a massive short squeeze over the last couple of days. >> and i would agree with him talk ta -- talking about the dash for trash names, but in the last week and a half and accelerating this week is not a dash for trash, but it is a run towards
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the value, and it is the financials, scott. and look ing at the tech stocks and apple, and it is a value stock, wherever it is trading and now near $99, but it is a value stock at $110 and too cheap at $90, and too expensive now at $130, but it is at $99, and looking across at the names moving, and the chip stocks, and the mmh, and the values and the pes are single digits in many cases, so it is not the dash for trash on this leg of the rally to push us up to this next level. >> think about where this market is given what is going on. you are 2% away from the all-time high on the s&p and closer to 3% on the dow, and with have contended with a dollar rally that ripped everyone's earnings to she reds as you mentioned, and we are at the 2s and 10s at the smallest and the tightest, and the banks can barely make money, and look
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at them, klres and they are threatening to break out. we have had a commodity route, and one thing after another, and look at how the market has held in, and henn forbaven forbid yo will get the good news, and the commodities rebound and oil at $50 and heaven forbid to get some participation are from europe and the emerginging market stocks, and what could that do when you are looking at where the market is set up? you could get the breakout, and nobody is in. nobody is in. >> and the point that you could finally get a rotation, too, out of the bonds which look expensive to areas to perform. >> and rotation, i completely agree with, and i have a hard time talking about the level of the market moving higher, and the rotation within the market, i totally see that, and talking about the bonds and another thing with the equities and bond proxies trading at 30-year high
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multiples versus the values. >> and taking a look at the short interest that is coming out, and what has increased the most is the yield plays, and telecom and utilities and we will continue to see that, and point it out yesterday, and the yield plays are being sold to go into the other stock, and the money has to find a level, and the level in where it is least overvalued right now is eq equities, and the bonds are overvalued and that is why it is a bid under. >> and judge, talking about it a week ago when the macy's traded down hard and said i'm a buyer and i'm holding on, and the reason is that i think that amazon is going to hurt these guys, and it is already hurting these guys, and that is is margin compression, and it is . p.e. compressionings and when that happens, then the price were just too darn high. and now, where they have been, and takinging a look at the performance in the last week, we are up 2.5% since monday in the s, and p and macy's up 5%, and dillard's 6.5%, and in order
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strom a -- in order strom is -- nordstrom is up, and could bit a rotation? i suppose, but overall, it is that people thought they were way too cheap. >> what happens friday, two days from now, janet yellin puts the green light on june or july at the latest, because everybody says that you have to hear it from her for it to count. >> from the people i have taledd to, june is going to happen. i think that june will happen. if you are looking at the timing of what they have, and you have a meeting in june and one in july, and then you have, if you are further out, they won't do november, because it is right around the election, and maybe december, so she has to go in june, and they have set you up for it. >> and even though bullard told cnbc that it is not set in stone. >> well, you can't say it is set in stone, because you can't front and run. >> and he is still looking at
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the 2 d-- at the data. >> well, it is market dependent. i can't tell you if the first leg is up or down, and the market can handle it. >> but, steve, if we are not getting the massive crude oil bankruptcies and the price buys the companies time, we won't have the jump on the route that everybody is talking about and get through the june rate hike, and brexit, and what is next negative catalyst and that is where people say, i'm done about all of these things that we have been talking about for a year, and move on to pick the stocks. >> well, 140 energy bankruptcies so far, and lot of the small companies around the negative is the valuation, and the trees don't grow to the sky. so you have declining earnings, and increasing multiple and that does not work, and the negative, of course, the big negative, and the mother of all negatives is china devaluing, because that is going to make the dollar stronger. >> and the uncertainty of the political process, and that is going to be thrown in there as well, and the valuation
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uncertainty, and china, and a few things. >> and any certainty is president trump, haven't you been reading the newspapers. >> and let the market opine. >> and what about the election, and how that will impact the stock market, but this rate question if the fed does move two three times this year, if you believe that impact will be? >> yes a few a thoughts. the fed hiking generally has been associated with dollar strengthening, and that is why it is negative for earnings, and negative for the fundamentals, and that is why the rates moving higher is going to be putting down more pressure on the market, and if there is a market to have the rates rise for growth, and financials, and saver of the average american and at the same time the dollar does not rise, it is the issue, but it is not likely. so that is why i am cautious in the environment where the fed is going to hike. as far as the elections, most likely increased volatility through the the end of the year, yes.
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i think that there is lot of uncertainty as to who is going to go through, and what parts of the agenda get passed. will the infrastructure spending or the fiscal stimulus be add odd to the table -- >> nope. >> i am saying if it is done early next year, yes, it could be a great boost for the market and the economy, but it is to be done. >> and dubravko, we appreciate the conversation, and you coming across the river to have it with us. thank you, and here is what is still to come. >> alibaba under investigation. and the stock is selling off. we will get a trade update. plus, the tale of the tape and the brother versus brother debate. >> the spending in china was down in q4, pete, and i don't know if it has picked up yet. >> well, the numbers are so depressed, all they have to do is to eat the stock.
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>> and now, sitting down with jon and pete, and what are ta doing now? >> and whole foods going after the millennial shopper. can that give them some mojo? it is all on the halftime report. man 1: i came as fast as i could. what's up?
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man 2: this isn't public yet. man 1: what isn't?
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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. welcome back to the "ha
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"halftime report." i'm dominic chu. and now, the food and drug administration is going to delay a review of the drug that is to releave symptoms of duschenne muscular dystrophy. they are going to continue to review the drug, and try to complete in as timely as possible. the stock is down 19% over the last 12 months, and back to you. >> and you know, o -- thank you, dom. a and steve, you have been waiting for this drug? >> yes, i was waiting for the calls, and overnight i sold out. earlier, i had bought it, and sold out, and now slightly back to the position. and the risk/reward now is down to $4 to $8, but the upside is
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$50 to $60. no cure. three other drugs were not approved, but janet woodcock has been supportive of this drug, and the families who want to see this drug come in. she can overrule the panel. it has been done before, and it is rare, and this is troubling, because maybe she puts out a complete response letter, and to way, and here are all of the reasons, but the vetting from the smart biotech investors is that it is going to be approval, and the risk/reward is unbelievably attractive and speculative not the leave to the family. >> and it is speculative and if you back to march, it was trading with volatility, and monday, trading with over 800% volatilit volatility, and that means that he he was trading with predickty of a $12 move either drirection and could have been $5 or closer
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to $30 or higher off of the move. it is not going to be happening this week, and the good news is that the stock went to $23 and an opportunity, and we put on the 20-30 call spread, and we were able to take it off $3 and not the gains that you made, but risk/reward, and the risk is worth it, and the reward is minimal, but now it is going to give us an opportunity to play it when we can figure tout time line of when it is going to be coming up. >> and dumb money win, and i am happy to win. >> and no, we talked about it. >> and steve had a strong conviction and looking for the trade, and we were going to be looking at it together. >> that is helpful. >> as are you. and you can take advantage of the 600 and the 800-level volatility by selling the weekly options. i will do more on the web at halftime report for that, but this is a phenomenal trade, judge. certainly, we hope for the those suffering from this, that they do consider just as steven said, and that it is a big win for the
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patients, too. >> and cnbc.com/halftime is where you are going do that? >> after the show. >> yes. okay. >> and just making sure. >> yes, and tiffany, and let's talk about that company reporting the biggest quarterly sales drop since the financial crisis, and cutting the guidance and jon and pete were at the wall arguing this case yesterday, and doc, you made the bear case, and then you bought the stock? >> i bought the stock, and here is the reason. they came out, an missed the top line, and missed the bottom line, and lowered the guidance and i did not see a good thing about this, and the stock traded and believe it the prints here, the stock went down the $59.25 in the premarket, and then a big buyer came in and bought 50,000 at 60.25 and another 50,000 at 60.50, and this is a big buyer in the premarket, and obviously a seller, because there are two sides to every weekend, but the weak hands lost because the stock rocketed all of the way back up, and when we were coming back on air, it was down 1.5%,
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and that is why i bought, because somebody wanted out, and they got the weak hands out, and if you are seeing the horrible earnings like this, and the horrible guidance they saw and the stock is only down 1.5%, that is the reason to buy. >> and so you were bearish on the fundamentals and that is the case that you laid out yesterday. >> yes. and that is what played out, right? >> right. but you simply bought the stock today, because of the options activity that you saw, and not because you changed your view in any shape or form? >> right. i have not changed the outlook, but i bought the stock, because of the block buyer of stock. i will tweet it out, because it is in the premarket, and no premarket trading of the options, but look at this, folk, because that is pretty telling this big block. >> and the bear turns bullish for a trade. >> yep. >> and what is the bull going to do? >> and the bull unfortunately and we talked about this being a long-term process and the management strategies and that
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stuff, and i thought that maybe the bar had been brought down far enough that they could stretch above it, and it did not happen, and that is why the stock is off as much, but now it is only off 1.50%, and to jon's point, when it is not nearly as bads as you expect, it is tellinging you something, and a floor, and call it 61 or 62 area for the stock, but i am not ready to jump back in, and jon has guts to go in there right now, but i did not see enough out of the report to involve myself there. >> and risk/reward, it is a very good to trade it long, because $60 was the february low, and it seems to have not wanted to go beneath that on bad news this morning, to jon's point. if you want to be in the stock long, and thinks it is snapping back, put in the stock at below $6 $60, and the upside would be $10, but honor it, and do not be caught in that if it breaks, because it is on the down trend, and 1.10 is not a good story.
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>> and spin cycle in the old tech. hewlett-packard is announcing a surprise split, and we will look at it in the rally and break it down in the hot blitz. and now, pete and jon lagging in the portfolio competition. >> i am lacking a lot. >> he is lacking. >> what will they do to turn it around. >> it is josh and pete. >> jon is not lagging anything. >> it is just josh and i. >> lagging. okay. i got it. back after this. (speaking japanese) oh watson, your japanese is very good. thank you. (speaking japanese) exactly. i can understand nuance, context and idiom in seven languages
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to help companies all over the world with everything from retail solutions, to banking, to cyber security. (speaking japanese)
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today, scientists and cutting edge companies are blurring the signs between science. modern medicine reports throughout the day on cnbc. >> we are back on the "halftime report" with the tradeer blitz. four trades on four stocks making news. noble energy is up first. and upgraded, steve? >> yes, and basically what the analysts are saying and it is a good report because i read it, what should be a major positive such as the field in israel has turned into the negative and overhanging stock. they expect it to be settled and a lot of value to the company, and the stock is overlooked for that and other reason, and still down more than 50% from the high, and lot of upside. >> and pete, everybody is ahead of the western dij earnings, right? >> yes, the second upgrade in
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two days and you got one yesterday and another one today. >> yes, and they say that it is not going to zero, because they like the synergys and the margins from that acquisition, and that something else, but lastly, the multiples, and the mu multiple potential for expansion, and that makes sense, and looking at the yield here, and one thing i caution, always trades at very, very low multiples, so i don't know if i would graspp that as one of them, but i like the synergys idea with sanda. >> and two upgrades in two das,s and so do you at some point sell the riff here? >> well, you would if you were lucky enough to have been there, but it is a little bit more, and this guy is looking at $60 target, and so there is plenty of room there. >> and nimble storage is beating up and bottom line, and raising the guidance, doc? >> yes, raising the guidance and the ceo came out to say they are making big progress with big customers, and that is obvio
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obviously, a positive, and it does not hurt they have 11% short interest, and the stock is up 42% since the 12th of may. that is not long ago, hand this is a huge move. >> josh, hpe. >> yes. so, big news today with the press relief, and i fell asleep, but then i had a big cup of coffee, and read the rest of it. they are going to spinoff the enterprise unit, and lay off a bunch of people, and save $1 billion. s synergys and the analysts are not impressed an one quote, two bad assets does not make one good asset. it is not my cup of tea, and if you are long, congratulation, make the sale. >> and the s.e.c. is opening up an investigation into alibaba, and jim chanos and herb both on
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this program raised concerns. we will talk to herb after the break.
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welcome back to the "halftime report" and over to sharon epperson with the headlines. >> hey, scott, this is what is happening at this hour. drivers stood outside of a paris gas station after union strikes caused a gasoline shortage across the country. france is using the fuel reserves to deal with the shortages, and local authorities in southern france imposed a $20 limit on the amount of fuel that drivers can buy. >> the italian navy said that a boat of immigrants capsized and a ship approached the migrant boat and started to distribute the life jacket, but the boat turned offdue to the sudden movement of those on board. rioting broke out following the eviction of squatters from a local bank. and a group of sympathizers organized in the bank, and they tried to open up the bank that
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had been sealed up following the eviction. and ford is recalling 271 f-150 pickup trucks to fix a leaking brakeline that can reduce fuel power, and they have v-6 ingins. that is the cnbc news update, and back to you, and at a time when a lot of people are buying the cars and trucks on memorial day weekend, this is one they will be watching carefully. >> sure. >> and alibaba is in focus, and confirming that the s.e.c. has opened up an investigation as to whether the company open e e ed violated trader laws. alibaba had some accounting question questions that regulat regulators are said to be looking at as herb told us last november. >> you don't know the true nu numbers, because when you are digging deep inside and try to understand the relationships with related parties and who controls what, and what is
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genuinely consolidated or not consolidated which is our big issue, you have a big red flag. this is like untangling a ball of knotted wet yarn, and everywhere you look, you are just shaking your head, and saying, how is this happening? >> well sh, herb is the co-foun of pacific square research, and he joins us now on the phone. h herb, thanks for calling in. >> no problem, scott. glad to be here. >> and how should we and the investors be thinking about this today on the news that the s.e.c. is investigating? >> i think that the investors should be considering it, and taking it more than a grain. they should be thinking about this seriously. i think that the issues that we certainly raised going back at least a year with our subscribers, they are serious, because when it comes to the chinese companies so far, we are seeing the issues with the smaller companies, and the reverse mergers and the things that we have talked about over the past few years, and this is
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much bigger, and such a large company that it appears to have been based on the analysis which is certainly over 2,000 man hours appears to have, you know, shifted research and development costs, logistics costs, and product development costs and appears they have shifted them off balance sheet which makes the real numbers suspect. we would go so far to say it appe appear, and i would stress appears based on the analysis that with the number of related parties they have and the numbers they have not disclosed that there could be cases where they are in a sense funding income statement transactions. >> and herb, sorry to interrupt you sh you, but we are talking about a company called is pronounced
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tanou, and they distribute for alibaba, and some say they have disclosed the financials, and an attempt to be more transparent to deal with the issues that you are raising today with us, and furthermore the company in a statement to us today says and i ooh el quote, the financial disclosure we are providing to the investors related to the tanou network in 20 f is going to be transparent and address the underlying issue of the s.e.c. >> well, fit shg, first of alld where was the disclosure to the u.s. investors in one of the biggest ipos ever, and why just disclosing it now? the issues of trarns parent, and they talked about being transparent before this, and while there is more disclosure,
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and remember, all of this was uncovered by my partner who is an extraordinaryaire and he found it by going through the screen, and he said, today, more disclosure, and there is a bunch por that he doesn't see there. are dozens of transactions that we were able to discover or uncover that were not discovered by alibaba, and so where was this at the time of the ipo? before the ipo and here we are, two years after the ipo and how much time do you have to do, and only now starting to disclose, and meanwhile, the stock has gone up, and down and all over the place. >> it is up 14.5% since the ipo, and we should point out clearly that it is possible that the company did nothing wrong, and that the s.e.c. investigation yields that fact. he herb, folks might know you in the past life as a reporter. now, you run this pacific square
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research, and do these kinds of investigations for your clients who pay for your research. i u am curious, do you have a position in alibaba today or -- >> oh, god, no. no, no sh, no. >> and your clients? >> no, we are not activist short fund and we don't take any positions in the names we do, and much of the stuff is under the radar and we keep it that way, and our interest is coming out the look at it. look, i have said it before and i said it the last time i was on the show, my partner is phd in accounting and certified forensic accountant and he has seen a lot in the past 25 to 30 years and as a journalist who has covered a lot of thing, i have covered a lot in the past 40 years, and former journalist, and you have things that are too complicated or things that you don't understand, and should alibaba be that complicated? we don't believe any company should be that complicated and it should not be that long and that hard to figure out this accounting. the real issue here is whether
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their accounting is what is within the realms of u.s. gaap. someone will determine that at some point in time. >> and we should remind people as well that herb is not the only one calling out potential accounting issues with alibaba, and jim chanos, the noted short seller is short that stock, and he said as much from the ira sohn conference a few weeks back said as much, and he said also from a recent event from jim chanos, the accounting is some of the worst i have ever seen are for a major multibillion dollar cap company that went public in the united states. so, look, herb, others have certainly raised these issues as we have pointed out, and it is important to point out that the s.e.c. is opening up this inquiry, and alibaba is cooperating in that and providing the information that the s.e.c. has asked for, and it
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is entirely possible they say that they come back to say nothing is wrong. and we will have are to wait and see. >> indeed. >> i know that the timing is not great on your vaca and thank you for calling in. >> sure. >> herb greenberg joining us from a ship, i think. the ship is sailing for you, josh n this stock. you sold it. >> yeah, it is too complicated for me. >> you sold it today? >> today, apd made three points to the upside, but i have too much stuff going on in my life, and it looked like it would breakout, and i have a low conviction, and lower because i am out of it. i want to make a general comment that is ap ap per pro.
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and this is an environment with two people running for president caught in lies almost weekly, and the supporters cheer for them, and nobody cares anymore, and if alibaba has an accounting issue, so what, it is uncovered and they pay a fine, and not company-ending and maybe it is going to be working out, but people are not as per teshed by these things as they used to and the stocks don't get hammered like they used to. >> it is worthy to point out that the stock is down 5% on the session, and at session lows follow ing t following the interview with herb greenberg. coming up, five months into the halftime portfolio challenge, and both josh, josh -- >> well done. >> and let me zip up the reading here. they are in the red. the game plans are coming up next. and plus, gold at a seven-week low, and the fed leaves open a june hike, and the trades from
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the future blitz is coming up. the halftime report with scott wapner is the place for marketing interviews. >> you don't call a company a sewer because they made a mistake. >> we are short tesla and solarcity. >> people think that globalization has hurt business, but it is not. it is technology that has hurt businesses. >> and this guy is going down as the worst ceo in modern times. >> and the most profitable hour of the trading day. >> i love this show. all i usually get to do is to tweet about the show, and now i am on the show. this is one of the greatest moments of my life. waiter. water. so why would you invest without checking brokercheck? check your broker with brokercheck.
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coming up on "power lunch" where is the tantrum? the chances of a fed rate hike in june, and what is changing in the market, and how much higher from here? we are looking at the yield and the bull ish calls out and why they might be one of the best trade trades out there. and you were just talking about the alibaba shares taking a hit as the s.e.c. is looking into the accounting practices. is this a stock that an investor should own, and much more on yahoo. that is all ahead on "power lunch ". >> thank you, mel. and closing in on the portfolio competition, and josh, you first. >> knock on oil, scott. >> no, it is not. >> well, it is going okay, and i
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took the hit in january and i never recovered. >> over a month, and the stocks that you are have in there and year to date, the stocks that you have in there have done really well. >> well, listen, you had the massive sell off in january and february and 11% peak to trauf, and i never recovered. >> the timing is off. >> well, it is what it is, and what do you do? >> adobe, and tech, and adobe at the all-time high today. >> i am making money in adobe and the way we are accounting for it, it is incorporating the prior loss of it and smushing the two together, and the latest purchase of adobe is money in the banking and i believe that the stock rolls higher. i like the holdings. i think i will be okay. >> and pete, you are riding the gold miners. >> well, i am taking it off, because i have others that will help. >> and you have been killed in the vix. >> not hit yet, and that is showing the month-to-day, and i
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jumped yet, and 52-week low, but another one today, and i wanted some volatility, because after the big run, and if we are at the top end of the range and start to peel off and steve and i were talking about the volatility, i believe we will see a pickup. and twitter is what is weighing on the account, and i was in it earlier, and crashed down 20% or something, and that is weigh in me down now. >> and microsoft, and talking about the pickup in tech. and the consumer staple starbucks? >> i like the staple in there and mr. softee, and so i am okay. >> and you can follow all of that at cnbc.com/pro. >> and now, gold hitting another low, and jackie deangelis is there with the futures team. >> yes, and gold prices are losing steam again today trading at 1225 in anticipation of the fed rate hike, and if we have lost the steam in the gold anticipating the fed hike, what happens if they pull the
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trigger? >> well, that is funny, jackie, because you will see the liquidation of the gold massive as they have been short in anticipation of the rates, and that is when the dollar peaked at that point. i think that the same thing is going to happen. the dollar is rallying and if there is a rate hike or not a rate hike, gold is going to peak, and gold is a buy at that point. >> and jim, if that is the case, what are the levels to watch for gold? >> my new levels, and you know it has not been a fun trade for me about the last two weeks. i have been okay for the year, but not the last two weeks. the new level is 1210 or 1200, and it stays above there and should show some strength, because it is only one rate hike, but the fed has our back, and this is not a recipe for the screaming dollar, so i think that the gold will hold in. >> and futures at
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cnbc.com/futures. >> thank you, jackie. and now, looking at schlumberger looking to turn it around, and we have jane wells with that story. >> veggie chips for $1.99 and frozen pizza at $3.99, and am i at trader joe's? no, it is for people who don't want to spend their whole paycheck on whole foods. 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. oa skin transformation that rivals the leading department store moisturizer. revives skin to fight 7 signs of aging.
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all right, we're back.
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whole foods is launching a new concept store. the company faces new competition. jane wells is live in one of the stores in the silver lake section of l.a. jane? >> hey, scott. yeah, very first 365 store. this is the big gam to believe shed the nickname whole paycheck and go after low price competitors like sprouts, kroger, trader joe's. will it work? this first of at least 19 365 stores opened in the silver lake area. inside they're discovering this is not your traditional whole foods. fewer products, more conventionally grown produce, precut meat instead of a butcher and a much more open and industrial feel. a lot of automation, even electronic pricetags. a robot which dispenses tea and, of course, lower prices. we asked the co-ceo instead of taking share from competitors,
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the company cannibalizes itself. >> if we do disrupt ourselves, that's okay. but what we can also do is extend our self. i think this is going to allow us to reach new customers, give our existing customers new options. i think this is a great compliment to whole foods. it's an and not an or. >> also, they are starting with a new loyalty program here. it's a bar code like this. it's not an app. this lets you get discounts. it will work like starbucks that after a certain amount of purchases get something for free. they're going to eventually move this to the regular whole foods. they're experimenting with that. two more 365 stores are expected to open this year in oregon and washington. i went around. i talked to people shopping. of all the things here, the thing they noticed most of all are the lower prices. not the automation, not the lack of organic produce, there is still some here, there is more conventional. it's the low prices. >> the thing that matters most positi to people.
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jane wells. >> they really missed an opportunity. they could have called it half foods. i think that would have made the point. >> good point. >> too much. come on. >> sorry. >> we like the stock. >> the traffic numbers have been bad. we all know the story. the story is they justin to have the declines. >> everybody is neutral on this one. >> and i think the reason is when you look at where it came from a valuation speshgt iperspe know who is taking them, the krogers of the world. the other supermarket chains got bigger in the organic space. now they're trying to do it through no this way, lower prices and more like a regular store. that industrial type look. but it will cannibalize. according to mr. rob, that's okay. they need to get themselves out there and extend. will that work? >> there is a crazy, competitive business. we just saw fairway file for bankruptcy and you have so many of these -- look, trader joe's is everywhere. continues to colonize. that is the worst competitor you can possibly go up against. and that's what this offering
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does. not that it's going to be a big part of the company any time soon. but if that's what you're excited about, think twice. wegman's is out there. >> costco and walmart. >> judge, that's not a good thing. i talked about the retailers and what amazon has done. then you throw walmart into the conversation with these guys. amazon and walmart going after you. then you decide to do it to yourself. just a matter of time. >> i mean, it should be like an eight multiple. it's a supermarket stock. >> it sells at a premium to kroger. it's overvalued. >> coming up, we're going. >> narrator: radar with the moves our traders are looking at that you may have missed today. w technologies make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers
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medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. ♪ all right. almost time for "power lunch." we're back here on the halftime report. time to time to go under the radar. >> i'm watching biotech. bioteches are doing well. was leading the market as we came on air. i think biotech is still oversold and still down on the year. it's a very attractive group. >> doc? >> i'm watching u.s. steel. they came scrambling into this name buying with the stock trading 1395 or so. they bought the 15 calls. very aggressively. big blocks. all the things that i like to see as far as institutions getting involved and tipping their hand. so i bought it along with them.
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>> markets close in three hours. second half trades? pete? >> keeping an eye -- we started the show the last couple days and last week, you go back to cisco, scott. they have great numbers. stock traded up. been trading around for a while now. starting to move up a little higher. what i like seeing is very aggressive call buying. is the run over? i don't think. so you look at valuation. look at yield. you look at cash on the balance sheet. i think robins is really turning this company around. i like that paper that is extending up and looking for more hikes for cisco. keep an eye on it zbhchlt we were looking at cisco today. not only is it bumping back up against $28 or $29 which has been resistance sift lance year, take the chart back further and you see it's up against that '07 high for the first time really. vincent looks like he wants to get through. if it does, this is going to become a darling stock. >> you know when this started to pick up? a week ago. maybe even a little less when
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the juniper ceo was on this network and in the face of having some bad reports come out, he sounded optimistic about what was happening now and what he foresaw for the rest of the year. cisco reported after that and reported well. now tech is starting to pick up. >> sales force has been added to that last week. >> off the all time high today. >> another all time high. another all time high every day. they came off once again. growth is incredible. >> yes. >> who is left behind? >> and apple, by the way. >> what is that tech wreck we were talking about? so now it's come back. >> rightfully so. >> apple above -- everyone had the same level on this one, $92. broke below. you had five minutes to bite. >> we say april sl above $96 today. okay, apple is above $97 and now it's knocking on $100. >> you know who else is knocking
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there? netflix. >> again. >> on a terror. >> notice all of the fangs were higher today as well in this tech tape. >> they did a nice job covering. that good stuff. been good having you here. thanks for watching. going to send it to "power lunch." that show begins right now. >> and thank you, scott. it is 1:00 on wall street. stocks are shoogt higher for the second straight day to levels we haven't seen in a movement right now, take a look at. this we're a few points off the session highs in the s&p 500. 2090 is your level. we're up 152 points on the s&p 500. energy, materials leegd the gains. welcome to "power lunch," everybody. i'm melissa lee. michelle has the week off. the stocks in the midst of a two day rally, is this the beginning of a big

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