Skip to main content

tv   Fast Money Halftime Report  CNBC  August 4, 2016 12:00pm-1:01pm EDT

12:00 pm
linked in is going to fit in with microsoft. >> we'll see how the afternoon trade shapes up. we have the jobs report tomorrow which everyone is awaiting. >> we haven't talked about the most important story of the day which is this new apple show that's going to have gwynn eth paltrow doing apps. >> thanks. we'll see you soon. for now over to the halftime report. welcome to the halftime robert. bill ackman's big win, the manager selling out of canadian pacific, an investment that will go down as one of the biggest windfalls of his career. i spoke with him a short time ago and he told me peshing squair made $2.6 billion on canadian pacific. he said it's a great example of how shareholder activism can
12:01 pm
create -- he's taking a lot of heat. this is an unquestioned big victory. >> this was a $2.6 billion score. take a look at this name. they first got into it in september of 2011. they built the stake over a course of a month or so with prices ranging at about $63 with the average price $55. after putting new direct orreor the board and being involved with that, they began selling stock 6 million shares in late 2013 at about $142 a share so they're up about $90. two more sales in the years that
12:02 pm
followed at a higher price range and then the $9.8 million share yesterday. they made most of their profits, roughly $2 billion on the stock's performance but they also benefitted from a currency hedge. they will use the proceeds of the sale to make one or more new investments in the main fund although not necessarily through a special vehicle. the timing couldn't be better. the fund is down about 19% through july thanks in large part to the awful performance of val ent pharmaceuticals and then there's herbalife. given all that redemptions have been in focus ackman said in an investor call the first half of the year the redemption rate was not relatively high but it's
12:03 pm
early yet to know how they're going to do during the current quarter, the redemption deadline and the herbalife news and the canadian pacific performance is in a couple of months. >> as you know as well as anybody the good stories of his career have been overshadowed of late with the herbalife but this is being called one of the greatest corporate turn arounds in corporate history. when you look at what the performance of cp was before ackman got in, you were talking and bill was pointing this out to me today a company with margins that were less than half of its competitors. now it has its margins from 19 to 40%. they won the proxy fight and it has been a tremendous turn around in the company and obviously the stock wind fall. >> absolutely. the thing that's interesting about ackman and the reason we love to talk about him he's had some really bruising defeats.
12:04 pm
he's had super big scores as well. during the financial crisis his work there and with a name like canadian pacific today makes him a stand out in this business. last year he was down about 22% and this year 19% at this point but we'll see how it goes for the rest of the year. herbalife, the story's not fully over yet and in terms of valiant he's on the board and he may be trying to effect changes there. so maybe it needs a runway. >> thanks as always. with us for the hour is our panel. ackman told me he's open to ideas so we thought we'd have fun with this. in the kind of market we're in, we're near all time highs, values may be hard to find in the marketplace today, but where should bill ackman go next. >> i think there's a sector of the market where there is still
12:05 pm
value is old line technology and a name that has come up on radar's before is kwal kom. this has to be a large company. it fits the bill. there's a lot of cash on the balance sheet which is something he can do something and the general chip sector and particularly mobile phones is ripe for consolidation. this is something he could very easily get involved in. the two things against it are jana partners have been activists in the name and it's an area he generally hasn't been in before. >> i was going to say that part of it. he's been in a lot of different sectors whether it's retailer whether it's herbalife or transportations so i don't think there's anything that precluded him from going into a new field, especially one that has a loot of value in it right. >> how about a return to an old field. he's been in mcdonald's before. he's been aggressive in the burger world. his push before was spin offs.
12:06 pm
he's talking about reets. i love the leadership of mcdonald's and the direction they're pushing in right now and if they could unlock something more, jim is talking about huge companies, this is a large company and they have cash so this fits a lot of things. he's been there before wch maybe he thinks there's something he can unlock that they have not unlocked yet. >> one of the issues i gathered from speaking with him and kate it's good you're sticking around here i get the feeling he's looking for something that's not doing that well. mcdonald's is doing well. maybe one of the things with valiant is the time he got into valiant the company was doing well. he's looking for something that he can help turn around. >> he had a slightly different play at the outset. when he got involved with valiant it was to help them purchase oregon. he had a different idea in mind and that may have been his intention. it evolved into this valiant but
12:07 pm
i think you make a good point and one question i'm curious about is activists don't seem to pursue these troubled oil drillers. i've heard other activists tell me it's too volatile and they feel that way as well about new tech if you will. even though those areas would seem ripe for opportunity. >> i think the road map in 2013 is a road map that can be followed by bill ackman today or anyone. if you look at the earnings release for cf industries that clearly from a valuations standpoint and a standpoint of understanding the debt side and the equity side which mr. ackman is proficient in understanding the debt side is important as well with this company because the company is reinstructing. dan did well in 2014 with cf industries. it's a quality company. the problem is pricing and
12:08 pm
that's been the challenge. nitrogen pricing is going to make a rebound recovery here. we're seeing early signs of that as it relates to natural gas but it's a name for mr. ackman and any other activists would i be looking with certainly as you raise the amount of capital he did. >> i like phillips 66. i like it for me and i'd love to have mr. ackman join me and i like it because warren buffet owns 14% of this one. >> one magazine called the baby buffet at one point. >> right. one of the issues that kate through her coverage brought up is he's had some pretty high flyers that have worked out -- that have flipped and gone the wrong way against him. if you're in one that warren buffet's in outside of ibm if you bought it at 195 if you follow buffet at all you're doing okay. in phillips 66 i like the idea
12:09 pm
they've got pipelines and could see a spinoff of something like that. could you see the chemical sp e spinoff. they've really got four leverage at least and it's not -- >> he's got industrial experience. >> we think he's chasing it up to the highs. >> that's the total feeling, he's not going to buy something that's chased all the way. he's not going to chase something all the way. >> i think if you pull backfi back phillips 66 over the last year, cf is in an abyssal you want to buy a business that is really challenged right now. i think it's close exposure to the market where some of the names mcdonald's or phillips 66
12:10 pm
they're hanging up well and then you fell victim to a market decline. >> some of the victories of his career have been turn around. it's not just this. it's general growth properties was a bankruptcy and turned out to be one of the greatest hedge fund investments that has ever been made. i have -- i love the fact that our some of our viewers are participating on twitter with all this. they suggest agrium or pot ash. >> i think pot ash -- you guys had some unusual activity a couple of months ago but i think there you're going to have regulatory hurdles because it being north of the boarder. i'll still go with cf industries. >> i wouldn't think he would want do something with the come moddies. >> i think you have interesting ideas because if you look at what would he not want, he's exposed to the consumer sector and he's got the herbalife
12:11 pm
situation which is a multi level market, it's overexposed on valiant, it's like where does he have comp tensy and maybe a sweet spot, where is he protecting himself from some of the possible market declines and yet not overexposing the portfolio to one sector or another. >> if it wasn't for his valiant position right now one of the names i was looking at was pfizer. it makes sense to me because they've talked about in terms of spinning themselves already or splitting themselves already. so that's another one of those names. >> he's close to it with zoetus. he's close to it. >> fipfizer is a giant. >> the other thing that might be worth mentioning is he talked up fanny and freddie. this is not a huge percentage of his portfolio.
12:12 pm
>> that's a suggestion that says someone says load up on more fanny mae. >> it's a question will outside shareholders get to enjoy the profits but it's a story he seems to feel good about and he's done a lot of work around what needs to happen there. >> an interesting conversation. halftime report is just getting started. when wall street and marijuana mix, you get an upgrade in a stock we've been telling you about for a week. more halftime report in two minutes.
12:13 pm
narrator: adventure can be found anywhere but the best place to start is in the forest. kubo: i spy something beginning with..."s" beetle: snow. kubo: no. beetle: snow covered trees. monkey: nothing to do with snow. narrator: head outside to discover incredible animals and beautiful plants that come together to create an unforgettable adventure. kubo: wow! narrator: so grab your loved ones monkey: don't even. narrator: and explore a world of possibilities. kubo: come on, this way. narrator: visit to find the closest forest or park to you.
12:14 pm
12:15 pm
europeanan banks today in the news after the bank of england cut the interest rate by 1.5%. we have what all this means for the federal reserve. what do you think this means? the rate cut was expected. the bond buying was not. how is the fed die guesting this. >> and the forward guidance which is telling them they're going to remain low. i think it's another reason for the fed not to hike. there's a global movement to cut interest rates. what the fed will tell you is that the economics in the u.s. are different and that we've had generally stronger growth and
12:16 pm
lower unemployment, somewhat higher inflation, but ultimately there are limits to how far the fed is going to go relative to its peers around the world. >> i think the central question is some members of the fed seem somewhat hell bent on raising rates this year at least one time. let's say one time. by virtue of the fact that central banks around the world are going the opposite direction aren't they doing the fed's work for it. >> to an extent that's definitely true. i'm not sure that hell bent is an official monetary policy term. >> it depends on which fed person. >> you guys are laughing while i mock you. i think there's a kind of bureaucratic mode of this which is they were in normalization.
12:17 pm
that was december 2015. so we're -- we might get to a year without another hike. as i said in june i officially declared the end of the first hiking cycle. it can't be -- it can't here the ec echo of it. some people joke ten years of waiting and all we got was a quarter point. >> i was reviewing a portfolio and in the investment conclusions there was the economic evidence and there was the expectations and global central banks. when it came to the line and this is a $10 billion plus portfolio fund came to the fomc the statement was make sure you have a coin in your pocket. how does the federal reserve restore the credibility it lost. >> i think about this all the time because i'm trying to figure out how the fed can create a monetary policy that is not dependent upon tomorrow's jobs report. it feels to me that the overall
12:18 pm
direction of a tanker should be determined not by the latest wave coming to the tanker. it should be more at stake here. so what i'm trying to figure out is it a matter of bad luck in that we've had all of these different shocks to the economy that are unexpected and so what the fed finding itself is wound up to do one thing and then you have something like brexit come along. i think we would be sitting here talking about the july hike or the certainty of a september hike if it wasn't for brexit. if that's the case the fed is no dump dumber or smarter than the market is. >> the market has been smarter than the fed has been. that's the issue that we once again find ourselves dealing with. if the fed moves in september, the market is going to be completely off sides by that. you can look at that through the
12:19 pm
fed's funds future and talk to investors. the market would be way off sides if they go. >> unless they telegraph it at jackson hole. >> they wouldn't be off sides for a december hike. i'd like to go back to your original question which is why are they so enthused about raising rates and they know this economic expansion which depending on oh you you measure it at seven years long and we haven't once had a quarter about 3% gdp growth they're worried that the steam runs out of this engine before too long and the only tool they would really have to combat it is negative interest rates which aren't working globally. >> and have different implications in the u.s. i think another issue is let's go back to the june press conference with janet yellen when for the first time i remember she internalized this notion of section yar stag nation where the growth rates of the u.s. are lower than they originally thought, stuff they thought was temporary may be more permanent.
12:20 pm
i'm not sure exactly how much enthusiasm there is for creating restrictive monetary policies. i think they want to claw back a little bit in part of look what karney did today, he had a quarter to cut and he was able to respond with some amount of stimulus. what happens -- this is why we're following boe so closely. what happens if the u.s. has a shock. what does the fed have. >> what about carney said in the press conference after when he said there are going to be not just incentives but penalties for banks that don't lend and would you see any of that extending over here. certainly there's been a lot of trep addition on the part of the banks to lend to anybody but the best corporates at these low rates. >> there's a play book for
12:21 pm
central banking. >> this is a segment where we call it how the fed works. >> there's a -- there's a part of the fed playbook that guys like stan fisher used in israel. mark carney used it but it's the bullying of the bank's playbook. we haven't used that here in the states. the bigger the financial industry in a country the less it works. stan fisher could call in the israel banks around the table and say you will dump this bad real estate stuff. carney can call in the federal banks. i'm not sure that's part of the u.s. monetary policy. >> you scared the heck out of me thinking they would jawbone u.s.
12:22 pm
banks into doing that. i think if you look at israel -- >> i'm not going to argue with you. keep going. >> how should investors play it? ben from nashville tweeted halftime looking for a trade school on how to buy voluntarilitity. it's a conversation we had yesterday. >> i get e-mails and texts and tweets constantly about it scott. there's two answers. the best way is if you've had an incredible run to the upside like we've had and you look at the s&p 500 and you're involved with the market there's nothing wrong with taking profits off and using stock replacement strategy to buy inexpensive options. the other side is you can hedge yourself. when the volatility -- the important part about this is if you're hedging yourself are you -- is your portfolio
12:23 pm
mimicking the s&p 500. what does your portfolio look like and then you go to that side of it and you start to buy to protect your portfolio to the down side at these low levels. >> the more advanced you are, the more you can take a step and do a call spread which is the only way i traded. i never buy vick's calls outright because it's the real pros and the deep end of the pool you need to have a spread in place. same thing with the spider, i think that's a great way. you buy a spread when you think it's too low but that is going to increase the volatility. >> what about the focus on voluntarilitity. >> don't like them. >> why. >> most of the time they're not going to give you what you expect out of them. there was one time during this year where john and i both were using the uvxy. the problem is because of its
12:24 pm
leverage it's completely recalculating every day so it's not going to act like you'd like it to act unless you get the move immediately. >> there's another problem which is the future's market. they're always pinpointing a certain durations of the futures and in order to do that they have to sell some of the near futures and sell the longer futures. they're paying more and selling for less what they paid more for the day before. so you have to get the timing right. if you do any of these it's a home run but you've got to be in and out within less than two weeks, no longer. >> do you guys see a problem in the usage of these volatility etf's because much has been written about the potential powder keg they could be. >> huge push. i don't use any of them. i'm not trying to bash them but i don't use them. you'll use the spy or go
12:25 pm
directly to that stock or do a different etf but not volatility indexes. >> let's look at oil now. it's moving higher over the last 30 minutes. it was back above 41 and there it is moving to $42 a barrel on the september contract it's a gain of better than 2% today. on the eve of the olympics in rio the big three all taking big positions at the starting line. who will take gold, silver and bronze. we'll werestle with that next. that's the move following earnings we're trading other movers along with square. ♪
12:26 pm
[announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models.
12:27 pm
hthis bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go!
12:28 pm
the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade 2016 summer olympic games. they start in brazil in less than 24 hours down in rio. our number one event on the desk is how to trade at today's competition between the athletic apparel sponsors. pete kick us off here. >> i'm going to kickoff the gold medical. it's going to go to adeedis. what they're doing is incredible
12:29 pm
and they continue to do so. they're moving away from the huge in terms of putting money behind things they're pulling back from that but they're going after individual athletes and it's been absolutely amazing what they've been able to put up. when you look at their sales up 21% this last quarter, the numbers that adiddas is doing right now except russia they are killing it. >> there was a time when i'm sure you would have had them os your gold medal. >> i've got to admit i wear nothing but addidas these days. i find it sort of fascinating because as much as i live nike i find myself in addidas. >> there's no doubt there's a resurgence and pete and i didn't talk about this.
12:30 pm
>> 30%. you are seeing a resurgeriness right now from a price performance perspective. when under armour and nike is so well and they've shown a growth. they've had a focus on a rebranding effort. >> year to date up 61%. >> second place would be under armour. >> i have nike as the gold because when we get to the track and field i think the -- webco had the speedo suites where everybody had to have a swimsuit that was making you faster. these are suites that people are wearing while they're running and they're going to sell a ton of them because there are more runners out there than swimmers in my opinion. i think that nike if they do this right, in other words it can't be a mistake like under
12:31 pm
armour had with the winter loic olympics and those speed skating suites but if nike does this right they will walk around with gold. >> that's what jim has as well. you're not say not close. >> it's a question about the stocks more than the company. so you put up that chart earlier -- >> all we're talking about is the stock. >> we're talking about how the companies are doing but if you look at the stock, the prices of the stocks -- >> did i miss something? >> you're not on the view jim. >> you put up a chart a second ago and it was straight up. nike has been lang wishing for over a year and is around 20 times earnings. it's the price of the stock. >> i love nike but their growth is % and adidas's growth is 21%.
12:32 pm
the problem i have with under armour is they're slowing growth. when you have a multiple that's high and you start to crack some growth that's slip acknowledge and that's why you're seeing them where they are now. they are spending money so much in a hury. >> we'll have more markets coming up. secretary of state john kerry is at a bilateral meeting and he defended the obama administration payment to iran denying it was a ransom for prisoners. a north carolina man was arrested on a charge of conspireing to support isis. he tried to buy an assault rifle
12:33 pm
from an undercover officer and pledged allegiance to isis on social media. he was trying to recruit people to conduct attacks in the u.s. a judge has named a special prosecutor in the case against a police officer charged in the murder of a black teenager in 2014. the olympic torch continuing its journey through rio de janeiro passing by two local beaches. look at that. there's the torch. crowds were cheering when that surfer carried the torch as he surfed off the coast of rio and they mobbed him as he arrived back on shore. i can't maimagine doing that. back to you scott. sell gene got an upgrade. the s&p sector heat map.
12:34 pm
materials leading the way. back right after this. watch us at noon eastern every day and follow us on twitt twitter @halftimereport for instant news. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. hello prashant bhuyan.
12:35 pm
co-founder of the fintech services start-up. hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson.
12:36 pm
12:37 pm
what the rate cut in england may mean for rate hike here. and more on the nike golf story and what it may mean for tiger woods. we're going to talk about golf and i understand why people are quitting it. >> welcome back to the halftime report. we're watching two big calls on wall street today. we'll start with scott's miracle growth. it taps into the marijuana demand and the company has a growth option. that's an interesting thesis. >> it was monday or tuesday. >> she was talking about this stock. we talked about it going into earnings. >> you liked it ahead of
12:38 pm
earnings. >> for all the right reasons for what's working in the market. these guys have some growth. they had some headaches because of weather so may and june were difficult. they still nav gatd through that and they made an acquisition before the earnings were announced. so clearly scott's miracle grow sees the growth prospects going into that field. >> they say it's a reasonably valued longer term investment. that new price target is $85 up from $70. celgene is popping 20%. they don't see it slowing down any time soon. the firm upgrading the stock today. welcome. it's good to have you on.
12:39 pm
>> it's made a sizeable move. why aren't you late with this call? >> you have to put it into context. the sector has one of its worst runs in the past several decades so really i think we're in the early stages of recovery for the sector and when you look in the early stages of recovery in the sector you want to look for those who you think will be the leader going forward and we think celgene will be the leader for the next 12 months. >> the issues that have effected drug pricing, criticism of companies in the biotech and health care space aren't going to go away any time soon. do you worry that some of that is going to come back on the campaign trail and it's going to hit the sector again or do you think as some of our folks have suggested it's all in there. everybody knows it's all in the stocki stocks and now they're prime for
12:40 pm
a breakout. >> i think it's a combination of both. i don't think the problem is going do go away. i think the discussion is going to be there and there will be a push towards rationalization of drug pricing however i think you have to look at the indications where there will be that discussion and i think where they are in oncology and immune olg the value of these drugs is there. these are diseases with debilitating effects and that can differentiate for some of the other aspects of the discussion where these companies are bringing drugs in spaces where we have pretty good drugs to begin with so why is this new drug five times the price of the old drug. >> what about m&a. there's been a lot of talk about it this week. >> right. i think it's going to continue to play into the space as valuations stabilizes especially
12:41 pm
for smaller companies i think management will be willing sellers so i think you'll start to see them become more active and i think you could see megadeals. am i thinking that are a takeout candidate, no. i think they're happy running the business but i think that he have one of the best pipelines of assets within the large cap space and the best growth profile by far. could they be on the board given their specialty in oncology and immune olg of course. >> thanks for coming on today. >> thank you. what stocks do you like in that space. >> i like the -- >> why didn't anybody own this one. >> i'll tell you why, this reminds me of a big cap farma but minus the dividend yield. it's a mature company and it's the sort of thing you look for the cash flow to be redistributed to the shareholders and it's not
12:42 pm
happening. >> he's done an incredible job of a turn around. you're seeing the strong revenue growth. that's a name you would want to focus on. >> the fact it's baxly farma. if you break it down it trades like farvma. >> would you go cel gene if you had to make a choice. >> i think you're going to have to go celgene right now. >> let's go to d.c. now. i'm told we have breaking news. >> two business groups have sued the obama administration over the tax inversion rules that the u.s. treasury department put in place back in april. those rules were instrumental in
12:43 pm
blocking the pfizer deal. two companies have filed a lawsuit in a texas federal court that said that the regulation exceeded what the law allows the treasury department can do. the treasury didn't have the legal authority to do those regulations in the way that they did them and therefore they should be undone. you can expect that the obama administration will fight this. it might be too late for that pfizer deal, nonetheless and the obama administration leaves office at the end of the year. this might be political sparing but interesting the resistance groups are putting up to this. >> let's do our trader blitz now. four trades on four stocks making news today. first up is cheesa peek. it missed on the top and bottom line. >> they're selling off assets. it's recovered a little bit because it was much worse in the trading session and it's starting to come back a little. they're trying to raise capital
12:44 pm
because clearly huge leverage. we talked about this leverage and talked about these energy stocks. this is a name that had a lot done on the sheet, trying to raise capital, i still like the name. >> quanta is lower. >> they service electric utilities and oil and gas. even though they got a nice contract their earnings miss is causing people to hit the exits and weak guidance. stocks down over 8%. >> what's going on with metlife today. >> while the stocks have been in a two year down trend there have been 20% gains. i think it's setting up for another one because it's so much below the book value and t. >> square surges today. >> strong usage on the small
12:45 pm
business side. the only question becomes here which company does jack sell first, twitter or square or does he do a special two for the price of one. >> is jack worried about the fact that the square looked -- the thing you put in your phone needs the head phone slot. if you don't have it that's a problem for the sliding of the credit card. when they asked jack about it last night he didn't have answers. >> unusual activity in retail. look at the dow. there it is. visa is leading the way. dow is up four. we're back right after this. the halftime report is the place for market moving interviews. >> you don't call a company a sewer because a company made a mistake. >> real money. >> we're short. >> real debates. >> people think globalization has hurt businesses. it's not. it's technology that's hurt businesses.
12:46 pm
>> competition is a good thing. i don't want to go back to a single marketplace. >> the most profitable hour of the trading day. >> i love the show. i'm on the show. it's the greatest moment of my life. >> the halftime report week days at noon eastern. approaching medicare eligibility? don't put off checking out your medicare options until 65. now is a good time to get the ball rolling. medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help save you in out-of-pocket medical costs. taking informed steps really makes a difference later. that's what it means to go long™. call now and request this free decision guide
12:47 pm
and explore the range of aarp medicare supplement plans. all plans like these let you choose any doctor or hospital that accepts medicare patients. these are the only medicare supplement insurance plans endorsed by aarp. call now and request your free decision guide... and start gathering the information you need to help you go long™.
12:48 pm
bacteria can hide in food and make you ill. wow! announcer: but you can keep bacteria from ruining your day with 4 simple steps: clean, separate, cook, and chill. the roadchip to food safety starts at we are back. there you see boys have made it over to the telestraighter for usual activity. >> you would never guess.
12:49 pm
it's right there. >> it's funny because i would expect pete to talk about it. >> yesterday i bought kate because of that big dip and it came 9% off that bottom. today they're in there buying tjx aggressively. look at this one. there's the year to date chart. it's up at the all time highs and looking like it wants to break through there. they came in and bought the 8250 calls which were another $1.50 where we are and they've moved up quickly from around the $1.10 level to $1.50. i'll probably be in these right around two weeks again. love the action and obviously love the stock. >> so you're just in the options. >> i'm only in the options and not in the stock. >> you're in the stock or no. >> not right now. i was in the calls but i'm not in there now. >> you have retail as well. give me a trade update over there. >> tuesday we talked about gap stores and the fact we've seen this nice bounce in the stock. you can see the stock itself in the last week you're not seeing
12:50 pm
it but you see this drop. on tuesday they started coming and they were starting to buy the 25 strike calls that expire tomorrow. if you take a look they started buying those at 15 cents. those those at 15 cents. those had a pretty nice, significant move to the upside. today, as a matter of fact -- geez, they're even a little higher than i thought. they've made a huge move from that 15 cents. they bought 4,700 of them on tuesday. that's a giddy up, scott. >> good stuff. guys, thanks. wheat, corn, soy beans all selling off over the past month. we go to the futures pits for those trades coming up in two minutes.
12:51 pm
12:52 pm
12:53 pm
welcome back to "the halftime report." i'm jackie deangelis reporting from the nymex. joining me from the floor, some futures now time. we're talking about the ags today. i'm hearing it's an oversupply problem, jim. is that what you're seeing? >> that is what i'm seeing. i'm sure all you new york people think us in chicago look out our backyard to check out the crop report, and that's only mostly true. it is a very good growing season. i have seen that firsthand. american farmers are becoming very good at getting corn out of the ground. we've also got to remember that there's a real live global economic slowdown happening. plus, the dollar is consolidating at pretty high
12:54 pm
levels. i think corn goes lower from here. >> your view, anything you particularly like in this space, think is a safer bet? >> right now, i think everybody is troubled. we're growing a ton of corn. we have the third most acreage in corn right now since 1944. we have fantastic yields because of weather. and in corn, we also have two billion bushels from last year that's still in storage. so it's almost oversold. but i would give it some more time. let it come in just a little bit longer before i think about getting along for a little bit. >> we're talking more futures on the online show, 1:00 p.m. eastern time. peter is giving us his predictions for the market. helma kroft on where oil goes from here, 1:00 p.m. >> all right, great day to have both of those guests. three hours left to trade. we're looking at what's likely to move after the bell, that's coming up next.
12:55 pm
with usaa is awesome. homeowners insurance life insurance automobile insurance i spent 20 years active duty they still refer to me as "gunnery sergeant" when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and i'm a usaa member for life. usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life.
12:56 pm
announcer: when they test you, stand firm and move only when you hear the seatbelt click that says they're buckled in for the drive. never give up till they buckle up. ♪ using 60,000 points from my chase ink card i bought all the framework... wire... and plants needed to give my shop... a face... no one will forget. see what the power of points can do for your business. learn more at
12:57 pm
tech stocks are on the move. i want to show you twitter, ali. the twitter ramp, the rumors and speculations and everything else about what that company's future could be. >> you got a no comment yesterday, right? i think you said. when you reached out, you got a no comment from vollmer or something like that. >> that's right. >> i think there's more to the story than meets the eye, quite frankly. i had to jump in there yesterday, only in the options.
12:58 pm
now i'm in with john. >> what about some of these other names? we haven't talked about alibaba at all in months i think on this program. >> that one's got some strong buying. i think at the 85 strike judge and calls, and one that josh brown talked about last friday i think. nvda. exploding and tons of option activity in that name. nice call by josh. >> how about jack in the box? we're watching that one as well today. you have some thoughts on that? let's take a look at the move there. >> continues to move higher. this has been a strong performer year-to-date. it's approaching the $100 level, which i believe it will exceed. keep in mind, this is not just a burger story. this is also about mexican food. they own qudoba. you have to wonder if they're taking some of the -- >> i don't wonder, i know they are. >> chipotle. >> absolutely. qdoba is phenomenal. those two have competed. >> very similar concept. >> no doubt about it. >> let's move to second half trades. there's a lot to consider,
12:59 pm
obviously. you've got the jobs report tomorrow. don't want to overlook that. how do you view the market right here? give me a second half trade. >> real quick, i think the market is fairly priced. you certainly can't call it cheap. you have to look for value areas. i'm including thin that apple. i think you have to look at cisco, which is a name that pete likes as well. it's a multi-year high here, and seems to want to go higher. >> joe, what do you got? >> i go back to the jobs report tomorrow, and back to the conversation i had earlier, i do believe that jackson hole, the conversation from the federal reserve, they reset the narrative. i think they might throw the market a little off sides. >> you have a stock for me? or just that view? >> that's an overall market call. >> i want to make sure i didn't skip over something. >> i think it's relatively low bar for them to step over as pete has said earlier in the week about earnings. i think they will do that
1:00 pm
tonight. it's already up 3.3% today. >> anybody own it here? >> i don't own it yet. >> pete? >> i think it's pretty fascinating. under 40, we made such a big deal. starting to move towards 42. >> i'll see you tomorrow. all of you as well. thanks for watching. "power" starts now. >> i'm brian sullivan. welcome to "power lunch." here's your menu. you can call it the brexit bazooka. a time to bet on trump's comeback plan. what's happening behind closed doors to get his campaign back on track. and then just dump it it. the $700 million bogey that has sports fans questioning the future of tiger woods. "power lunch" with london calling. never a clash. starts right now, tyler. >> let's talk about the markets right now. welcome, everybody, to "power lunch." don't let those numbers fool you. even though the dow is jus


info Stream Only

Uploaded by TV Archive on