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tv   Fast Money Halftime Report  CNBC  June 16, 2016 12:00pm-1:01pm EDT

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will say that we have poked fun at every candidate whether it is bernie or trump or hillary, and you will find that very much so in the cing months. but, no, yeah, our job is to be funny, and to entertain, and the other piece that we are trying to do is to actually convert and engage young people to get them to the polls. get them activated whether you are a republican or democrat, and keep them fired up. >> and so brad, appreciate that very much joining us, brad jenkins from funny or die. >> over to the headquarters and scott wapner and the half. ♪ all right. guys, thank you so much, and welcome to the "halftime report" i'm scott wapner and this is the trade this hour, chasing yield. the fed is leaving investors more confuse and its own credibility in question. with us for the hour, joe terranova, and jeb lebenthal, and pete and jon najarian, and
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we have a guest with us today. and now, yields are falling, and it is following a fed meeting that did little to bring investors clarity and leaving them dazed and confused. pete, is that what this is about in the wake of what the fed said. >> yes, and the fed has not given anybody anything they are looking for, the confidence and the uncertain factor, and ms. yellen brought it up, and of course, next week, the brexit, and what is happening in the market? explosive move in the volatility index up 40% in a week, and it had been running around for a low rate for a long time, and measuring between 13 and call it 14.5 or somewhere in that range, and then suddenly, we get the spike and we are into the 20s and it is a much more difficult trade for all of of us, and that is a little bit of the sense of where are we in the terms of the uncertainty of what is going on right now, and then next week we will get a lot of things answered.
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>> and colbert, welcome back into the crew today, and how should we be thinking about the market, and the reaction today, and the volatility that we have been seeing over the last few days is mostly if not all fed-related? >> it is all fed-related. there is a lot of conflicting piece of information, but to pete's point about the volatility in 2014, we had 32 days where the s&p was up one or two percent, and this year, 32. so volatility is clear loin the rise, and manifesting some of the manifestation, and in terms of being resonant to go out into the market, you are seeing the larger ones with increasing cash held by individual investors and we haven't seen these levels since the financial crisis in 2009, 2010. >> i am surprised by learning the fact, and you have a keen eye on a bunch of areas where you can see where the flows are going. >> right. there is a tremendous net outflows and mutual funds, and etfs that is ultimately held in
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the cash, as the investors are receiving cash from the municipal securities and holding this em in cash, and the thing t could be a positive indicator, because once there is clarity in the market, you will see the money going back into the market which is going to fuel another rally. >> and you are generous in saying that -- >> i'm a generous person. >> and that we will get clarity. and maybe we will get some yesterday, josh, but it seems that in fact, we were left more confused, and the fed is downshifted its own forecast for the rates, and the investors are wondering today what all of that means if the rates could rise again, and if to play it at all, and what to you do in >> the forecast for the fed rates have been wrong six in a row. and now, here is the big picture, we are about to get a big bounce, and the question is what do you do with it? and that is what the people need to answer. so when you are look at the quote, unquote safety trade, and everything is overbought, and the gold gapped above where it fell in may, and now looking at
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the tlt, and way overbought, and 76 on the rsi and you are not seen a relative strength like that until you go back to the lows of the market. >> and your headline is big bounce coming? >> yes, because they snap back, and you look at the more speculative areas, and way oversoe oversoeld, and have a look at the ibb if you will and think of it as a proxy for the people who take the most risk, biotechs and now down eight straight days and they have only been down nine straight days twice, and you think the down 10 or 11 days? so there is going to be a rip, and the overbought risk-off trades coming back a little bit, and you will see the riskier areas of equities getting a bounce, and then question is what do you do with it? if you are a strategic investor, and this is important, and you are looking at the picture where the cash levels and the portfolios are at a 14-year high. >> and look at coll bare,bert s
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the highest levels. >> yes, that is a very high level, and the bonds are at the highest weight, and the equities is way underweight, and colbert is correct to site the statistics and no matter the category of u.s. equity. >> and joe, you think that we get a bounce, what do you want to do? where do you want to be? >> well, the bounce is going to be coming on the earnings and the acceleration in earnings, but the right thing to do is to take some cash level, and move them a little bit higher, because one week ago today, we were talking about the market technically breaking out, and the market has failed in doing that right now, and it has not broken out technically, and the environment -- >> you disagree with josh, because he thinks that we will get a big breakout -- >> well, a bounce. >> bounce. >> and when you ask josh when the bounce is coming, and he could say tomorrow or a two week weeks from now or tomorrow. >> and i think that within the next couple of days imminent.
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and maybe it is going to coincide with the favorable remain vote poll or something, and i couldn't tell you why, but it is coming. >> i am not willing to play that game, and i was talking about technical breakout, and you were talking about the technical breakout last week and it failed and so we were both wrong in that instance, so you want to the look more for the longer term story which is earnings coming back again and you are also in the period of the s&p companies buy-back window and it is a blackout period, and that is a significant driver of the equity performance and you are not getting it now. >> and jimmy in the notings, you are sticking with the high quality and high cash, and i get it, but give me the places that you want to be moving the money into, and there is real question as to whether you want to get out of the bond-like stocks and into more cyclical, and more offensive plays. i wonder if all of that is thrown into the question now that the fed doesn't seem to have an idea of where the economy is going, and whether
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this hunt for yield which is the lead of our show means that the utilities, telecoms and other bond-like proxies are going to continue to work. >> yeah, let me draw a distinction here, because some of the tocks that we should be in are cash-rich, and the dividend-paying stocks, but it is not because i want the yield in a low yield environment, but because i want the defense in the environment where the fed is driving a car with the front windshield fogged over and they don't know what is ahead on the road, and you have the brexit vote, and the tea leaves are pointing to the exit, and that not an end of the days type of event, but it is going to royal the market, and joe, you made a good point that if we get the end of the earnings recession, you can see a breakout, but here's the thing, the market is in a show-me state, and it is not going to be anticipating the end of the earnings recession, but wait and see the earnings which are at least three weeks off, and really four weeks until it is going. and so i don't see us going anywhere and a lot of risk to the downside and that is why i
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want to be in more defensive ends and the pfizer and the merck or the gm or the cisco or the apple. >> take a step back and i want to comment about the point of yield. also, the market timing is a difficult strategy to execute, and just the factoid that i see research coming sort of compiled and if you had stayed in the market, and consistently over the last 20 years the annualized return would have been close to 10%, and if you missed the 90 best days of the s&p returns that is negative 4.5%, and that is a huge swing, and so the view is the primary determinant of mitigating the risk performance, and really just being fully vested in the market, and the investors as they are coming back into the market to have patience to go through the volatile periods would ultimately give them the best e return. >> do you think that the fed hikes at all, and the house view at morgan stanley is not until december and goes through the
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election. >> yes, and deeply politicize it. >> and that is your view as w well? sgle, yes it is. you deplitize and get more data in terms of the economy in terms of the job growth and the wage growth and do it in december and re remo the politics out of the process. >> it is important to point out that a lot of what you are seeing on the screen each day is not being driven by human decisions about things like earnings and recessions, and here is wone very small example of myriad, and iwm which is a small cap index and it falls to literally within one penny which is the l.o.d. and the core programs are wr written to look for these things to find the support, and when they find them to come in and buy. so it is really, really important not to look at the minute-by-minute action and think that there is some kind of the grand narrative that you are not aware of it, because a lot of it is the machines trading with machines, and that is
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perfectly fine. >> and lastly, colbert, is the u.s. the best place to be? >> the u.s. is the best place to be. >> the u.s. markets? >> yes, the u.s. is best to be, and foal lllowed up by europe, of course, the brexit vote, and you have to know how the un-do all of of the trade agreements to undo that market. >> and we hope to see you more soon, colbert of morgan stanley. tomorrow, we will be joined by jeffrey gundlach 1:45 eastern time, and he is the ceo of the doubleline capital, and the post fed given where the world isle, and our eamon javers has more. >> the first marijuana related software partnership is a big
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area for corporate america as more states are legalizing recreational or medical marijuana, and now, microsoft inking a deal with a startup company called kind financial out of los angeles who makes software for cannabis businesses to stay in compliance with the regulation, and they will add it to the government solutions package and it is called the seed-to-sale compliance software for the marijuana offices, and they tag the plant, and also kiosk them in the mblg mj businesses because they -- marijuana businesses because they can't have banking access. so they are going to be referring the clients through cloud-based government basis to the burgeoning marijuana business. and so now we seeing marijuana mainstream, and maybe a sign of
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the times and the high times you would say. >> yes, exactly, eamon javers, d.c. here is what is still to come. >> apple is losing the luster again, and another analyst is lowering the outlook for the tech giant to today. and we will debate what to do with the stock at $95, and the gold is hitting a two-year high, and the miners are on a roll, and it is pete's winning trade in the halftime portfolio competition. find out if he is sticking with it. and disney shanghai is open for business. we will get a peek inside of disney's big bet on china. it is all coming up on the "halftime report." thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand,
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>> welcome back to "halftime report" and are more headwinds ahead for apple. one analyst is cutting his expectations. ron hall is the analyst at jpmorgan who made the move, and joining us from san francisco and the call of the day. welcome to show, and good to have you on today. >> yeah, thanks. morning. thanks for having me on. >> i thought that the most interesting frankly is that you didn't just cut the watch estimates, but you cut them in half. >> yeah, we did reduce them quite a bit. we have seen the demand weak nes on that watch below what we had anticipated. it is a great product, but the traction for the wearables and people have not figured out what they want to use them for, and the features are still being developed and the point that we
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are trying to make today is that our unit number for the iphone in december is one of the lowest on the street at 68 mi$68 millid the reason is that we believe that predominantly macro weakness. we think that apple is being penalized for cycle issues and the fact that they have had the success with the 6s and the demand weaken and we believe it is a broader market problem and not apple specific problem and we are trying to make that point. >> and you are leaving the iphone units unchanged, but to make it clear for the viewers, you had taken them down to the lowest if not the noor lowest on the street? >> that is right. we have had a lot of questions about that, and so what we rolled out today is a deep analysis of the market, and what is going on, and like i said, we think that we are seeing clear demand weakness developing, and it has been there, but it is continuing to develop in places like latin america, and also apac and so we are seeing the
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deterioration of the demand and people need to be more cautious about that, and we are kind of trying to raise the warning flag here today. >> and you think that apple is being unfairly penalized i believe were your exact words. and i believe that there are legitimate questions of what the investors have about the pace of innovation, and the iphone cycle and the demand and the real fundamental questions that exist around this company. >> yes, that is true. we take a different view on that. we think that in 2017 things are going to be looking better. i realize questions about the iphone 7 this year, and whether it is an incremental upgrade be and we suspect it is, but in 2017, the upgrade may be more substantial, but more focus on that and not focus on the macro issues going on behind the scene, and they are quite frankly already been affecting apple. >> rob, it is jim lebenthal, and on the watch, your revenue is 22 times the projected for the
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iphone versus the watch, and should we care about the watch at all, and the second part of the question is what if anything can replace the iphone or at least come close to the iphone as a new big thing for apple? is the car a possibility? should we totally give up hope on the tv? >> yeah, okay, jim, a couple of good questions. i don't think that you need to be too concerned with the watch right now, because it is not a big earnings contributor, and the focus on the short term and even the medium term is probably better placed on the iphone, and so, you know, maybe the product, the watch product will improve later this year, and we will see the acceleration, and we can raise the numbers again, but what we know about the demand for the product is that it is just not that high. and in terms of what could be next, though, i think that the car is a little bit of the red herring, and i think that more interesting products that are out there on the horizon is an augmented reality glasses, and that may sound crazy, but there are products out there that are going to be giving us overlay
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vision, and replacehe smartphone in the next five year years, and so, yeah, there is innovation, and products out there that, that apple could hitch the wagon to and see some growth momentum from in the future. >> and rod, i have to run, because i have breaking news, and to be clear, you have cut the price target to $105 from $125 and we hope to catch up to you soon, rod hall with jpmorgan and we will go to sue herera with the breaking news. >> yes, indeed, it is sad news to report. and we told you earlier that the lawmaker jo cox had been shot, and well now police are saying that she has died. the british local police are making that announcement a few moments ago, and lawmaker jo cox has died and a man is under arrest and he is a 52-year-old man and the only suspect at this time, and according to police she passed away a short while ago, and we refollowing the story, and they are not looking for anyone else in this
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particular incident, but there is more to the story, and we will be following that for you. and we are back in a moment with more.
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time for the trader blitz,
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and yahoo! is expected to buy over at citi? joey. >> well, it could easily go back to $40 now that the management is providing clarity on the auction process. >> and american airlines is downgraded over the bank of america, and jimmy, the stock is down 30% this year, and i think that it is cramer this morning on the show that is like now? now down 30 and you are doing it now? and i think that those were his exact words. >> and looking at the chart, it is a beatdown, and if you are shorter, and selling the shares here, two things that you have to believe either the momentum continues to the downside, and i share your infer dudulity on th and if you think that the sessions earnings are six times, and high oil prices are the thing to worry about, but they seem to be stabilize and the worst is in here, and you have to be predicting bad things to short the stock. >> and mixed bag for kroger? >> yes, it is a tough one, from 2015 -- 2012 to 2015, it was up
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27%, and it has done nothing since then, and you can stay long, and looks like it is in a no-man's-land, and i would not be excited for any huge upside any time soon. >> and what about a night on our show last night when fred weighed in on redstone. >> it is had been one of the leading television networking companies in the buzzness and now it is falling to a level below any of the peers on almost any metric played by all types of problems including the e creative departures. >> pete, you are long in there and a lot of people were talking about that freston last night? >> yes, it is a name that i jumped into on a couple of weeks back and got on cbs and viacom
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and a nice run to the long side and for all of the reasons i'm in it is because of the reasons that tom talked about on the show. he talked about the brand and the management need s s to be shaken up, and if you believe in the brands which i do, and tom does, then there is something to hope for right now, and the hope is that they can change it up on thing management side, and if they can do that, this is a company to return to the highs. and look at the valuations of the company presently, and way too cheap. >> and crude is tumbling, and the energy stocks are taking a hit as a result, and we will take a check on the big movers and wti down .75, a .75%, and w look at the new shanghai disney park opening and what it means for that stock. you both have a
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we are back on the halftime report, and sue herera with the latest headlines. >> this is what is happening this hour. secretary of state john kerry arriving in northern norway with his nor wwegian counter part to look at the climate changes in the arctic, and it is the first time that a secretary of state visits that area. >> and john stennis in the western pacific, as the air carrier joined warships in japan
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and india to have drills for tensions in their backyard, and there is rising tensions over the territorial rights in the south china sea. and winds are fanning the flames of an out of control wildfire in southern california, and it has charred more than 1,100 acres in santa barbara and closed a mile stretch of the 101 freeway. and the homeowners were evacuated. forget about the polls that show europe leaving the european union when it votes on the 23rd, and the uk book kis say a 60% chance that they will cast the ballots of staying in the eu, and the investors believe that the betting markets are an accurate predictor because it is where people actual ly put the money. we will see. that is the cnbc market. back to you, scotty. >> we will show you the markets as well, and with reon the comeback trail to today, and the dow jones industrial average is
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moving back to the flatline, and the major averages are trying to do the same, and still a defensive tone, make no mistake. the telecoms and the you tutili are on that side of the market, and what do you see to make it go positive? >> well, at the top of the show, we said that there are a lot of things being driven not by cention beings, and once that tension starts, it is a domino effect on the way down and up. so i would not infer too much of it, and the sentiment is lousy. and even if you do have a big green day today, bear in mind it is after five rough days. there is no cloud on all of the things that people are worried about yet. >> maybe, guys, it is the market coming to the realization that maybe it took a little while through this confusion that we have been mentioning that the fed was dovish. dovish yesterday, and i mean,
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double-down on the dovish by virtue of bringing down their own rate expectations, and six people now looking at one rate hike this year, and people are throwing shade all over that, too. >> yeah, but you know what is worrying me about this is the not only rate height expectations bs expectations, but the economic growth is dulled down, and so this year, projecting 2% gdp growth, and seventh year in a row less than 2.5% gdp growth, a not a single year since the recovery of 3%, and this is a tepid recovery. >> what if i told you that brex sit a stay, and the fed is a hold until descember at the earliest. >> well, if brexit is a stay, then josh's big bounce is going to be clearly happening in the next ten days, aed is it is going to be a massive bounce, because most people are position ing that brexit is going to be going to other way, and that is the way that the polls will
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reflengt, br refle reflect, but to the federal reserve, you have gunlock on tomorrow, and others and you will hear about the fixed income and credit, and the environment of the credit, and we don't talk about it a lot, but the credit leads the overall market itself, and it is a very good condition right now in the credit markets and the concerns as far as liquidity is not there, and there is tremendous opportunity in the invest mement grade and are getting a second look with the oil pulling back, and the high yield energy, and that is a good trade, and credit is a good focus for the institutional money managers. >> and joe is right, and particularly looking at the credit spreads and even when you are looking at the term pre premiums, and lot of of things are happening that are, that represent really an extreme version of some of the things that were happening earlier in the year, and taking a look at the 2s and 210s for example and this is concerning iing for the bank equities around the world, and to joe's point, it is a an area more pronounced and notless on the people focused on the
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overall picture. >> pete, a thought? >> the playbook changes and when you have a 14 volatility, for how many months? >> well, the answer to the other questions. the brex sit a stay, and the -- the brexit is a stay, and now next rate in descember. >> well, you u would look for the quality names, and maybe na names that you held and puts, and you could ride the bull to the upside. >> quality names with yield? >> well, quality names with the yield, and i look at names with the quality, and yield is the kick, and that is and wonner dfl thing. example, jpmorgan is down 10% from the highs and i like jpmorgan and do i believe it is going anywhere? well, at $61, i am willing to buy a jpmorgan and get the 3% or 4% yield and sell the calls up 30% from where they were last week. so i am getting an extra kicker for more volatility, and at
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21.22 that is where you have the better opportunity, and the volatility shifts and if you get it the shift like josh talked about, you can ride pit other way. >> and pete, do you see the volatility rising because of the exogenous event like brexit or something larger looming that the volatility is 40%, and vix at 21 and now the vix a month from now at 30 or 35? it certainly could happen, and no doubt in my mind. >> and so there is no distinction on the rare clarity of the predik shction? >> we can't make that, because it is brexit, and china, and the weaker jobs and all of the things that janet yellen threw out on the table in front of us that we have the deal with each and every day, and tobias talks about, 20 to 25 is difficult to trade in the market when the vix is up. >> and mr. brown? >> he had the hand in the air. >> sorry they are in your air, but this has to be said.
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you know what the 10-year average for the vix is? 20. so relax a little bit. >> but it is the sudden moves that freak people out. >> bit is the stock market. >> and we are on the air from san francisco and we were noting that spike. >> but it is definitely a spike. and the other thing, stop quoting things that are in percentages in percentage terms. so the vix going from 14 to 17, and quoting the percentage is much squarier than to say it is a 17 vix. and the vix is not supposed to be 11. grow up. >> that is why you buy the protection. >> and in post 2008, you are living in the world where every investor is worried that the vix is going to 20 and 30 and then at 60. and that is the world we are living in. >> and it is not impossible, but nothing, nothing means revert like the vix. >> and you have a comment? >> well, the comment is that i want to continue this that there are fundamental concerns, and what i said and the economy in
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general, and the only source of growth here in the world is the u.s. what janet yellen did is to throw a bucket of water in the u.s. economy, and that troubles me, and that could lead to the vix spike. >> and consider herg track record, don't worry about it. >> i got you. and that is not a bad point, but -- >> what josh is talking about the average of 20. and remember that is the financial crisis, and you take out the financial crisis. >> and it is a 10-year average. >> and you have to understand what i am talking about which is the monster skews, and so it is absolutely going to change the 20, and that 20 was a 14 forever until the financial crisis. >> sure, but at the end of the day. >> that is why i'm saying. >> okay. >> you guys want to do some disney now? >> hell, yeah, let's go. >> and disney's latest park in shanghai officially opened today, and eunice yoon has the latest. >> this is a big day for disney, and tens of thousands of visitor came here to shanghai disney
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today, and this is is an important moment for the company. bob iger, the ceo said that he hoped that the park would become a booster rocket for the company in china, and as people come to the park and get more exposure no the brand and the characters the new ones and the old ones, that they want to go home the buy more tickets to disney movies and more products from the disney stores there. is reason to believe that disney's big bet could pay off, and that is because the company estimates itself that 330 million people live within a three-hour radius of the park, and they can travel here by car and train and they can also afford the take a vacation at this park. so far, if you believe what many economists believe which is that the chinese economy is going to continue to march on and grow and expand, and the incomes will rise, and the household spending is going to be taking up a larger part of the economy, then disney is well place d.
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analysts are estimating that the 15 million visitors are going to be coming to the park in the first year alone, and that if it does happen, it is going to be making this one of disney's most visited parks. now, what are people coming here to to see? well sh well, they are coming here to see the many attractions unique to china, including the updated visual technology-packed version are of the "pirates of the caribbean" ride as well as the largest castle within the disney family which is right here in china. scott, over to you. >> yes, eunice yoon, thank you so much in shanghai, and pete and josh, you like the story and the stock? >> how about the fac that bob iger said that it is greatest move they have made in disney since the florida central buy. and this is incredible for disney, and they had to do a lot of things that disney would not normally be giving up, but it another reason that bob yiger i so valuable to disney. >> i heard a crazy stat, and
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maybe it is quintanilla that said maybe 30 million people -- >> 330 million people within three-hour drive. >> yes, the entire united states. >> and 300 million people within a three-hour drive is unbelievable. >> the stock is down 20%, and so if you are a long-term investor, and this is the chance, and i would not say i love it, because i am in the friend zone, with t it, but at the end of of the day, now in china, now that they get the kascharacters and the products and the story in front of this many consumers is tremendous, and it could become as important to the company as espn, and not this year, but long-term without a doubt. >> and definitely not this year, but to jim's point, it is a show-me situation, and the largest situation is the vanguard total index, and the report yesterday that came out from the treasury is that the chinese to stem the capital outflows and to look at what is impact i
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impacting the economy and the consumers, and 30% of the holdings of equities which is near $350 billion and they sold $150 billion of stocks since last july to stem what is going on in the economy, and it is a problem and consumer is affected, and that is why the the narrative from carl icahn and the troubles from apple and the troubles from the ath leisure makers and this is the story and the concern. >> real simple, own disney for the broadcast and the studio, and the theme park is extra. don't worry about it. it is not the reason to own it. the studio and the broadcast networks. >> and gold is climbing to the two-year high today, and does that rally have further to run or did you miss the golden opportunity? we are going to be going to the future pits to find out, and find out somebody who has some skin in the game as well, and pete is seeing the bullish signals in retail. that is coming up next with the "halftime report" back after
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i want to get back over to the colleague wilfred frost. >> yes, we want to recap parliament member jo cox has died following her injuries after a shooting in west wilshi wilshire. and the chief of police announced her passing. >> at # 1:48 p.m. jo cox was pronounced deceased by a doctor that was working with paramedic crew tending to her serious injuri injuries. this is a very significant investigation with large number of witnesses being spoken to by the police at this time. there is a large and significant crime scene and a large police presence in the area. a full investigation is under way to establish the motive of this at a tack. >> the police confirmed that they had arrested a 52-year-old
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man in connection with the shooting and recovered the e weapon. they added that it was a quote localized event, but one with quote wider consequences. as yet we are unsure of the motives behind the shooting. ms. cox was 41 and the mother of two. i just add that further point to add how rare these shootings of this nature are in the uk and just accentuating the level of shock and sadness at this event in the uk at the moment. scott. >> sad and troubling story out of the uk today, will fred. wilfred frost for us. and now, moving the conversation back to gold markets, hitting the high since august of 2014, and jackie deangelis is there with the nymex traders. >> yes, we crossed the point with a technical level, and the fed meeting and the fears of the brexit out there, and jeff killberg do you think that you have what it takes to hold the gains this time? >> jackie, i do, and with the gold futures above 1,300, and
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for right or other reasons with janet yellen flapping the wings yesterday, but we are looking at the british parliament shooting put a halt on the gold, and a lot of uncertainty with the brexit, and will that vote be delay and this is the surge in gold. and when you see the gold and the treasuries bought in the same manner, that is an indicator see the gold elevated hi higher. >> and jim iourio, jefjeff is saying it could go higher, but what are you seeing? >> well, you pl rare ly hear me talk about the close for the chart weekly, because i don't look that broadly, but it is a big broad move at $110 and i want to close it out above 1,300, and if it is going the prove to me that it can do that and i am not sure it will do that, because i am a bull. and 1330 is the next level and not that far away, but something is significant to change to knock us above that. >> and big show coming up at 1:00 p.m., scott. we are talking about the gold, a
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and we have scott wren of wells fargo with us, and he is going to give us the playbook, and second guest of the hour is zevspiro and he is looking at a big leg up. >> thank you, jackie. we will get back to the gold story in a second, but i want the show you the picture of air force one wheels down in orlando now. the president is there. he is set to meet with the victims and the families of that tragic shooting earlier in the week. we have the pictures of air force one touching down in orlando? it is with the vice president as well. at least 15 times or so in president obama's two term s that he has had to meet with the victims of mass shootings and this is deadliest in the history of the united states, and we understand that air force one even though you cannot see it exactly in this picture has made wheels down in orlando. we will bring you much more i am sure on that throughout the day as the president goes to orlando to speak with the relatives and
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victims of that shooting there. let's go back to gold as we are mentioning, pete. i want to sort of get the news out there. and you have been on this gold story since descember, and it i largely if not exclusively through the minors, right? >> the gdx itself, and it is the beginning of december, and when he has had huge call buying out into june, and february return, and 1,000 of the june 22nd calls, and looked like speculation or something else, because the gdx is trading and looked like 1626 going in and persisted going into april and the moves were april, may and now looking at the 26. i have gotten out of most of what the gdx and i'm in multiple minors right now, and i believe there is an upside, and you talk about 1450 and there are levels and why not some participation here as a trade, and not the investment. >> and we have been talking
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about it, joe, and if you have one after another big time investors' legends, and druckenmiller and singer, and others talking about gold for a while now? >> and when 25% of the world is operating on the negative interest rates, look at for it the institutional side, and the portfolio and 3 or 6 or 7% topside is what you should own gold specifically, and own a gold etf, and the gold is awful, and maybe you own 3 p and raise it to 5%, and look at the the sensitive ti and right now, the market is rallying and the gold is now coming off of it, and is it coming, and the market is rallying because of what has gone on here with the terrible tragedy, and do they postpone the brexit, and that is a possibility, and it is more towards the bremain,ed a it remains to be seen, but gold is tough to play. >> and speaking of the tragedies, i want to get back to the picture we were showing you a moment ago in orlando. there is air force one touching
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down, and the president and the vice president are landing there to speak to the victims in the deadliest mass shooting in this country, and more than 50 injure and the doctors treating the wounded over the last few days, saying they wouldn't be surprised if the death toll did increase. the president is in orlando to meet with the families today. michelle caruso-cabrera has more on what's coming up on "power lunch." >> we'll be covering that as well. starting at the top of the hour, what many believe is the best indicator of whether or not the brits will bail on europe. see what these numbers are showing. the middle east is a mess, but we'll take you to two opec countries outside of the middle east that are in crisis mode. the impact on oil could be huge there. how your boss is spying on you. details. cnbc exclusive, that's all here on "power lunch." back to you. >> coming up, the doctor is in the house and he's doing a happy
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dance. trade has dance for something else. and we'll look ahead to some companies set to report earnings after the bell. "half time report" is back after this. here at td ameritrade, they work hard. wow, that was random. 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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thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. . welcome back. our resident options experts are
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making moves after spotting some unusual options activity. pete and john, what do you see? >> i'm talking, about tjx, buyg the july 75 calls aggressively. just in the money. looking for upside. it's a spread, buy in the july 75s, sell in the 77 1/2s with a cap on the upside. still looking for the stock to break up holding period? >> i will be in there for a few weeks. >> doc, glad you're playing with us. what do you have? >> citi group. look at this one. there's always a tell with options, not only calls and puts, how long it will take, but this one, they're buying july 1st calls. year to date graph of citi. you can see the breakdown on february. somebody is betting that could
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happen again with brexit. they picked july 1st expiration for these particular options. so the reason you would buy those is to cover yourself through brexit and maybe more. they bought them for up to 1.22. >> forgive me for interrupting. want to go back to that shot down in orlando, senator marco rubio along with the president of the united states, vice president biden as well in the sunglasses as they get ready to get into some cars where they will meet with the families of the victims killed in that deadly shooting in orlando. we will have more coverage of that certainly throughout the day. i know "power lunch" will as well in a matter of moments. you do see the president along with senator marco rubio, the vice president about to head off to that location where they will meet with the family of the
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victims killed in that shooting. a community very much in shock. filled with sadness will be comforted today by the commander in chief. coming up, a look ahead to oracle's earnings after the bell. half time report will be back after this. this woman owns this house,
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with new cabinets from this shop, with handles designed here, made here, shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured. we're back. almost set for power lunch. the dow did briefly go positive. the market working itself back from a negative state earlier in
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the session. we do have jeffrey gund domingugundlach coming up tomorrow. he said in the last 24 hours about the fed that the rate hike cycle in his words has left the building. they will be lucky if they can raise once this year. he said the fed lost control. doesn't know what to do. certainly hasn't done anything to really bring clarity to investors. that's having something to do with the fact of the way the market has been reacting. >> 100%. you're talking to a gentleman who made a lot of money on the fixed income, credit side. i want to hear from them, they're the most relevant managers right now. >> pete, people will be keying off of what gundlach has to say. the yield on the ten-year what did i see, 1.55 earlier? >> yeah. then you look at where the
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volatility is trading, trading about 20, even though we had this rally, over 21. a lot on the plate still. i wouldn't be surprised -- we were talking about going positive into green, how about a selloff. >> we'll see what happens today. look forward to that interview tomorrow. that does it for us. "power lunch" picks up the story right now. ♪ a lot of british punk this week, we're one week away are that landmark decision by the british. should they stay or should they go? i'm michelle caruso-cabrera, melissa lee is on assignment, brian and tyler are out. mike santoli is here. there's a new poll out that shows the leave campaign surging past the stay in the uk camp. 50% of brits want out. 49% want to stay. a lot of money is riding on th


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