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

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rather than putting up $10 million or even $25 million for $25 million in advertising, most likely they're putting up whatever the amount is and getting less than that because they're having to buy last minute ads. that again just shows how he approaches business. >> you took us to the top of the hour. thanks for calling in. good to talk to you. >> i appreciate the time. >> mark cuban, billionaire investor. host of shark tank. >> thanks so were. welcome to "the halftime report." i'm scott wapner. our top trade this hour. the stretch run. just one week to go now until election day. stocks off the worst month since january. just how volatile are things likely to get? with us for the hour today, stephanie link, josh brown, the
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brothers najarian. investors are bracing for a week of uncertainty. both the dow and the s&p just posting declines for the third straight months. you have session lows. the vix is hitting its highest level. what do you do here? >> whether or not it contributes to a done side move in the market, we will see, but we have seven days now at least until the voting is completed and then we'll see whether or not the process is completed. that's one of the wroerz, judge. that's why they're buying up side calls in the vix is because they're worried that maybe the process doesn't end on november 8th.
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>> are you starting to see that the market is looking at numbers and saying, hey, we're getting more nervous about exactly where this market is going based upon where he stands in the polls. >> weave talked about it time and time again. how much would donald trump mean in terms of the uncertainty of the market? far more than hillary. i think we're seeing that priced in right now. dollar index has been on the rise. what do you do? you're running a big portfolio.
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what are you doing? >> i do think there are certain sectors and certain styles that will work. you mentioned telecoms not working. on the flip side, you have the cyclicals working. you have financials. you have technology working. you have energy to some extent. it's lagged in the last month, but it's had a nice run off the lows. industrials having a tough time of it this week. again, off the lows in a substantial way. i have to step back. none of us know what is going to happen with the elections. >> what if trump wins? >> you have to come look at the macroand the global pmi's that are doing much better than expected. our ism number doing okay. earnings 70% better than expected. fundamentals aren't so bad. i think you want to make a shopping list. you're asking me what i'm doing. i'm making a shopping list. all of the companies that reported good earnings, i would be buying if we get a pullback gauze of the election uncertainty.
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air products. mattel, bank of america, jp morgan. anadarko. those are names that i this i the fundamentals are sound. what does the market do? >> look, i think trump -- i think trump has a very good chance of winning. i just don't think that -- >> you laughed at me the other day when i suggested the market wasn't prepared for that. >> the market is not prepared for anything. we can have unbridled chaos. anything can happen. the idea that somebody has a very, very heavy bet in one direction to me is laughable. it's not my style of investing. i think the bigger picture that's going on here, scott, is th
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that. >> i want to give you that when they added $87 billion. the swing that we're talking about is enormous. then you have the s&p 500 down six days in a row. not a big drawdown only 1.4%. make no mistake, you're talking about people taking risk off ahead of the election. i think they're more worried did zploosh. >> what about the december rate increase. universally on the desk are we all saying it's going to be -- that you would give it a 90-10 or 90-5-5. >>. >> do you just take profits in
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financials. things that have worked? >> why would you if numbers are going higher for the first time in a couple of years? for the first time in a couple of years the numbers are actually going higher? >> that's fine and good until the markets come down. >> i would say in a stocks where earnings are going higher tend to outperform those than the stocks where numbers are going lower, and earnings -- the reason why the stocks have done so well is because every one of them reported better than expected numbers with a yield curve where it was. right? now you have the ten-year up substantially. 40 basis points in october alone. that's like the best number since june of 2015. >> we were talking about the fixed income trading, and it's going to be tremendous for these banks. now, there are banks that it won't be tremendous for. >> wells fargo and probably u.s. bank corp are much lower on the scale, the ones immediate impact
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jp morningan. going to have an immediate impact from that. >> suppose he does with global trade as -- he throws away currency and -- >> remember, it took until 2010 to get that done. >> doesn't take time to scare the heck out of the stock market, though. >> what do the insurance companies and health care companies do in two years? they were one of the great -- >> they were the bet into it actually happening. >> the most important thing at the top is you put out a list, scott. look at the earnings. i mean, the focus we talked about right as this started off, look at the earnings. jp morgan kicked it off --
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>> people have their pads and pens ready. >> i'll put the list out there right now. jm pouringan, says city, bank of america. they get hit. that's where you buy. i think the other area you look at is lake-effect at these tech names. they absolutely crushed it, right? too many other things going in the market. you look at some of the names in the tech space where you have a dividend yield, you have a reasonable level of a p.e., and you have growth. those are the names you want to own. >> you kr a union pacific that's down 10%. they are okay earnings, but just higher expectations. >> our chief washington correspondent is in north jersey today. john harwood at the wall. want to find out where we stand one week before election day. john. >> scott, ticktock on the clock.
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less than six and a half days until election day. let's take a look at where things stand. first of all, from the standpoint of the big picture, we've got the national polling averages. those are tightening. real clear politics had been over six. now down to 2.5% spread for hillary clinton over donald trump. the electoral college is where it gets decided. we have a whole bunch of battle ground states looking across the country. challenge for donald trump is he has to go from 206 which was mitt romney's total up to 270. how does he add some? he has some strong prospects here. florida, ohio, iowa, nevada. all of those are states where he is very competitive with hillary clinton. he could win all of them. however, if he does win all of them, he still is only at 265 electoral votes. he needs to win some other states. what are those other prospects? well, hillary clinton is leading in all of them. colorado, virginia, pennsylvania, new hampshire,
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michigan, and wisconsin. tough road for donald trump, and we have one or category, which is two states that hillary clinton could take out of the republican column. north carolina where she's had a consistent lead,ing and arizona where she's been running neck and neck with donald trump. she wins one or both of those states. his path gets steeper. now, of course, we also have the battle in the senate going on. let's take a look at that. democrats need to pick up four if hillary clinton wins the presidency, and they have a couple of strong prospects. do you start out in the midwest with illinois and wisconsin. those are two states, mark kirk of illinois and ron johnson are both vulnerable incumbents. democrats win those. just like donald trump on the electoral map, they have a tougher road to hoe in the other races. florida, missouri, indiana, pennsylvania. all of those are competitive. no guarantee that democrats win any of those states, and there's
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one more. if he wins that race, harder for democrats to take control. and really hard for democrats to take control in the house of representatives. democrats 188 where, that means they have a net gain of 30 to get to a majority, which is 218. as donald trump gets closer in the polls, that's harder to do. >> this underscores what john just did, the kind of uncertainty that's still out there. he will likely be there until the morning of november 9th if not beyond. >> top of the show i was talking about that unusual activity in call buying. that is extreme.
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it's all the way up to the 40 strike, judge. if there isn't an outcome next tuesday and it takes until wednesday, thursday, friday, maybe even much longer, that is why they're buying strikes all the way up to there because -- >> i'm with you. >> there are people with big portfolios buying insurance right now in case that happens. >> you look at what's not worked over the past month. telecoms down 8%. >> utilities are flat over the last month. it's the financials and the earls that have been the winners.
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>> i don't get the whole allegedly thing. look at what the stocks are done. >> as trump gains ground in the wake of the comey letter friday, you think you would see a bounce. you're seeing the opposite, in fact. >> this is a seconder now closed. you have g to back to 2004. >> a lot of that is e.t.f. when it's that widespread and indiscriminate. that creates opportunities. >> absolutely. the opportunities are created, and i think you're right. two weeks -- for the last two weeks as we are in the fifth anniversary, how many times do we have people sitting on this desk talking about passive versus aggressive. >> it's the etf, world. the piling on and the piling off and how that thing holds slosh and all that moves. i think the reality is you're
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seeing some of that volatility. the fact john and i both just -- we see volatility to the vix getting over 19. it's interesting to watch this. >> if they continue, you have to be careful. if you are a long-term investor, here's an opportunity, and that's why i listed a whole bunch of names at the beginning of the show. i think you asked which sectors do well between now and the he wanted of the year, there will be massive chase. there are so many people behind their benchmarks. i would say if the economic data gets better, which we've been seeing globally, those you have to look at those pmi numbers and the underlying details from those reports.
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>> we all know it's not a brexit vote. there are individual states that have electoral votes. again, you could have a popular winner and not have a winner of the election based on how we calculate these things. the issue could still be brexit-like if you a sweep of trump and a bunch of folks next week, you could have a brexit-like reaction in the market, says and it would be the exact buying opportunity that stephanie and josh and pete are talking about. >> let's take a quick break. here's what else is coming up on "the halftime report." >> health care, dropping hard in the last three months. >> that's how markets work. >> with a week to go before the election, how much lower can it go? and what happens after november 8th? plus, another big drop for valeant.
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what's bill akman's strategy? we're back in twoments e minutes.
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i've never liked marijuana. but i'm voting yes on prop 64 to legalize marijuana for adults 21 and over. it has important safeguards for families, like strict product labeling and child-proof packaging of all marijuana products. and banning edibles that would appeal to a child. raising a teenager, that regulated system makes a lot more sense than what we have now. plus, 64 taxes marijuana to fund priorities like after-school programs. personally, marijuana's not for me. but my mind's made up.
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i'm voting yes on 64. >> we're back on "the halftime report." shares of valeant hitting another rough patch after a criminal probe about the ceo and wcfo were reported. here's more on mr. akman's tough
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career. hey, kate. >> hey, scott. a few early performance numbers suggesting that the predicted hedge fund wash out may be on hold temporarily. bill ackman continues to suffer. the fund was down 3% for the month and 21% for the year-to-date, which was october 25th. yesterday another large head wind in the form of reporting to suggest that this accounting fraud investigation into the pharmaceutical company, valeant could lead to federal criminal charges against two former company executives. possibly even in the coming weeks. valeant shares down 80% for the year and fell hard on that news. ackman's fund, which has a publicly traded vehicle and will discuss its quarterly performance vehicles on a call, hasn't commented on the bad news for valeant.
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as the number one shareholder for the company in stocks and economic exposure by the options market of $30 million, it's clearly an issue. one silver lining to the stock's protracked drop. the overall value of the position shrinks to less than $500 million in stock. making it less important perhaps to ackman's overall portfolio. >> interesting story. kate, thanks so much. >> let's stick with valeant. david marris is the senior analyst. welcome back. >> these reports of a criminal probe into mike pearson and the former cfo, chiller. are we talking about more risk or just the who elthing in total? >> i would be really careful on how it's portrayed. we don't know if charges will be limited to the two individuals or to the company.
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some people have characterized it as it's not the company, it's just the individuals. i wouldn't be to sure about that. >> let's just take the prospects from either side. if it is just mr. pearson and shillor, then how do you view the stock going forward? >> i still think that the best case of what's going on with the business is the single most important thing. >> when you look at the debt, $30 billion, how about the refinancing aspect of this? how does this company with stand what they've got to put up with right now in terms of that debt considering where this thing has actually shrunk down to in terms
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of its market cap? >> yeah. there are two aspects to that. first is if you were going to loan some money to a trend, if they just -- if they're a newspaper article came out and said, well, they were under investigation, you would be a lot less likely to give them money. refinancing debt becomes more expensive when you kr an investigation like this. secondly, remember, it's not $positive billion. it's $32 billion of long-term debt, but their overall obligations are something like $ $40 billion. if you include things like rent or leases where. >> it's interesting. bill miller was on our show and he thinks that valeant could double over the next three years. is it nearly as dire as many of the worst predictions are? >> well, i don't like to comment on individuals who have appeared before. let's be straight. someone that says i think it's going to double, and the stock drops, in order to double, it would now have to triple. he didn't say that. are things dire? i think they're very serious.
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>> the stock has been beaten down so much they'll deal with the debt overhang. if you're a longer term investor in the name, you can make money here. >> it's possible. we think that the risk to the down side is still there. the company is reporting next week. there's a large group that believes they're going to reset guidance lower. some of the prescription trends look so bad that probably will happen. let's see what happens next week. there's no rush, no reason to rush into a burning building. they have the detd overhang, and then whatever remedy is there, or the simple fujss of the company that you cite in your note of the inability to put through price increases which have really driven the train over the last many years. >> the two biggest and most important things are that the business is not going very well. the prescription trends look
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weak. they have a large amount of debt that comes due over the next few years. now, accounting fraud, if it is against the company, could be a large, large potential liability. on top of that, you have these class action suits where -- remember here what we're talking about. this is one of the largest declines in market value of any company in public company history. the company has lost something like $70 billion plus of market value. the fact that some mutual funds have decided to sue the company, i wouldn't dismiss that as, oh, they'll settle and walk away for $100 million. these could be very large liabilities. >> ho do they get paid, though? >> what do you think is more likely at this stage in the game? a giant dilute of equity secondary of some sort, or an asset sale? what's the next thing that they do to save the company? >> it's funny you brought that up because you are one of the
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only people that's ever brought that up, and i think that's the easiest -- >> i'm very clever. >> it's one of the easiest ways to solve things, right? a giant equity offering. the company views that as off the table because of where the stock has come. that is one way to solve things. i don't know if there would be an appetite for that. >> when you have $40 billion of obligation, you have to do much bigger things than selling off bits and pieces -- >> i think they'll have to sell core assets. they'll call them non-core, but then they'll get down to selling the important things. >> bausch and lamb. >> i don't know if that's the koor asset. there may be big tax liabilities with that. there are things like xiphaxon.
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maybe they sell that. that's one of their crown jewels. >> david, thanks for going to a camera for us. >> david marris, wells fargo. >> judge, whatever happens here with valeant, it's going to happen relatively soon based on the shake that you see going on in the options markets because the normal volatility for this, which is very high volatility because of the sell-off that we've seen is normally about 90%. right now it's 160. they're telling you through the future of calls and puts, trading that's going on, something is going to happen in the next two or three weeks. it could be pretty scary. >> more broadly health care has been hammered of late. 7% over a month. 11% over three months. the arrows are red across the
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board. it's gotten worse just when you thought it couldn't get worse. >> from a political standpoint, you have certainly suggested -- >> this is not -- but this is not a typical situation. >> let's keep in mind, there are other things happening besides election risk that are driving these stocks. bristol-myers just had a major setback with the drug. pfizer this morning after telling the street they're not going to do this split, which everyone wanted to see. more bad news.
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they're all paying above market yields, and many are below market multiples both on trailing 12 month and forward. i don't know what happens next week. what i'm saying is i think a lot of these names are the fat pitch one, three, says five-year time periods. the world is aging. these are the companies that have solutions that will help them live longer, better lives. i think they're going to work as investments. >> coming up, a tale of two retailers. l brands sinking on weak sales. coach moving higher on its earnings. see how the desk is playing those movers next. the two upgrades in two days. chevron. should you jump in? call of the day coming up. the pursuit of healthier.
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>> wrk back to "the halftime report." i'm reporting from the nymex. as you can see, our gasoline futures are pairing their gains as colonial pipeline has said that the restart of line one is expected by saturday afternoon.
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gasoline futures spiking as much as 8% on this news, but now coming off of those highs traders concerned that not only could we see gasoline shortages and retail prices spike in the southeast as we did when there was an incident back in september, but that this could trickle its way up to the east coast as well. seema, over to you with the european close. >> europe closing, and they're starting a new month on a down note. major indexes off by around less than 1%. once again, it's a selloff in global bonds that is captivating investor attention. they're attributing today's move to the manufacturing data.
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it's an encouraging sign for global growth, and that's why we look at yields rising. if you look at the ten-year bund yielding 0.715%. it's the pronounced move in spain that is really interesting here as ten months of political gridlock has come to an end. we're looking at bonds outperforming in spain. you're seeing this spread widening between the spanish ten-year and some of the peers including its. speaking of the b.o.e., the bank of england, one of the three major things we haven't heard from the bank of japan. no policy action there. royal dutch shell was the biggest riser. earnings beat expectations as it's seeing increased production
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after bg group acquisition, but british petroleum moving forward by 4.7%. overall stocks in the u.k., though, are the big outperformer this year. you can see the ftse 100 up nearly 11% year-to-date, where the european stocks as a whole still down about 8% in 2016. scott. >> the baltimore school bus hit the entrance to a cemetery and veered into an oncoming commuter bus. killing six people and injuring ten more. no children were aboard the school bus, whose driver was among those killed. >> the search for 20 miners still unaccounted for after an explosion ripped through today. 35 miners were working underground when the explosion occurred on monday. 13 were killed while two survived. >> pope francis departing sweden with his visit to the country. he pressed his call for
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christians to forge greater unity as he commemorated the 500th anniversary of the protestant reformation. starbucks holiday beverages return, but not in those controversial red cups. instead the cups are green, which the company says symbolizes unity among people. for now, back over to you, scott. >> courtney, thanks. one story courtney missed, john's bears beating pete's vikings. 20-10. 5-it. the bears are 2-6. chicago sacked sam bradford five times. >> shocker. >> look at that running back. >> rookie, right? >> yes. >> you had a huge night. he was on fire. >> jordan howard. >> did you make that call? >> i think you might have. >> i think there was more anger coming from scott. his washington team went into overtime, and they had a loss. jimmy, his eagles went in overtime. they had -- that's a loss. a tie. you hate ties. >> my guys, the quarterback
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coach for the chicago bears. >> he did a nice job. >> i had to look out for my friends over my colleagues. >> oh, okay. so i'm not in the friend category at all? >> i'm in the friend category. >> you're an employee of scott. i think you forget. >> bradford has to be able to -- they have to give him a little bit of time maybe in the pocket once in a while. this poosh guy he was doing well throughout the season, but now you get deeper in the season, he gets hit every single week. sacked every week. >> i have to give dave a shout-out there. >> he is good. >> yum versus yum china as the fast foods giants spin off against trading today. which stock has a better bet. alibaba on deck tomorrow. what shareholder pete is watching.
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>> coming up "power lunch" just one week to go. exclusive results on who wall street is betting on. steve liesman will report. >> a deadly peopleline explosion in alabama fueling gas prices higher. the states that will be impacted the most. we'll tell you. it pays to have friends. why facebook may actually help you live longer. not kidding. scott, back to you. >> all right. thanks so much.
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see you in just a bit. we have a news alert right now on a stock that's moving eli lily. meg terrell has it from the news desk. what do you have? >> bernie sanders strikes again. he is tweeting about the price of lily's insulin drug. ewe seeing lilly down 2% on this news. his quote says why has the price of insulin gone up 700% in 20 years? it's simple. the drug industry's greed. remember, of course, he has been tweeting about another company sending that stock down talking about the price of it's insulin drug quite a bit. this is an interesting shift to companies people consider more innovative drug companies from the others like valeant or. >> steph, you own this. >> i do own it. i'm underweight health care in general because i think not only is pricing good-bying to front and center before the election, after the election for a long time to come. you have to be very specific on what you own in health care. i am am very tempted because they're very cheap, but this headline risk -- i own this as a great company. it's got a great pipeline. it's not a big percentage of the
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total revenues. has an outstanding management team and a great balance sheet. it's one of the blue chips in this sector. yet, it's down. it's down $so straight from their quarter. this comes go down the lits of every major health care company and decide what drugs they and whether the price they've charged for them is okay or not. that's the environment that we are in. you have discovered -- >> how about the idea that this is a -- they're looking at a 20-year thing in terms of the drug itself, scott. it's really interesting. i don't know when it is either. maybe it's something technical, josh. i mean, i really don't know in terms of lily. when you look at the pipeline, scott, there is a great pipeline. these tweets, this world that
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we're in right now, what they can do, the political environment can do towards some of these companies, particularly in the drug industry, is absolutely incredible how fast it can work. >> you can look at maybe when it yields 3.5%, 4%. >> i'm totally on the other side. >> i will tell you, this is like a jim cramer rule 101. when a big quality company is yielding at 4% or more, you got to take a look. i don't know where lilly is going to bottom, but i would start to pick at 3.5, and i own it. >> i'm with you on that. this has been going on for a year. we're pointing out something that's gone in effect for a long time. >> it doesn't go away. >> i think it does. the election, regardless of what happens, there's a lot more talk than there ends up being action. we see that with every sector. >> the last time you said that, the stocks are down 10% since then. >> okay. so. >> i think you have to get through the state of the union. >> is it the proof in the pudding of what is actually happening to the stock in the space? >> no. >> they continue to go lower.
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>> okay. we're talking about whether or not these are good investments. my argument is someone's tweet probably doesn't change whether or not something is a good investment. i don't think that's controversial. >> i just don't think the headlines are going to go away on pricing, and i think the state of the union could be a huge negative catalyst. >> are banks a good investment? >> i think some of them are, yeah. i like jp morgan. >> what about the regulatory environment around the banks? >> every sector. energy, are they a good investment? what about the risk? there's no seconder with no richks. >> do they have an overhang as health care and financials seem to do in the political arena? >> i don't know how to quantify that. >> why are you being a pain? >> i don't know how to answer that question. do they have as much of an overhang? i don't know. >> i think it's someone with a bigger mouth. elizabeth warren, we know she's going to be going after the banks no matter who is in congress, who is leading the senate next year. elizabeth warren is going to be pounding the table for more regulation and all that kind of stuff. she's got the biggest mouth in
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congress. >> once again, though, this is something that's been in effect for eight years. they passed dodd franc. they instituted the consumer financial protection bureau. these are own russ regulations that have been hammering these companies. they've been forced to remake entire sections of their businesses. firing people, getting out of some markets. this is not new stuff. the fact that maybe it's -- >> it hasn't stopped. >> we agree, though. >> after every pharmaceutical company reported so far. the earnings are going lower. >> agreed. >> that's from a fweet? >> no, absolutely not. >> you and i have the same point. >> these companies are talking about price for the first time so aggressively. >> it's not negsly because of a tweet, but if the -- >> it's the environment. >> -- business models are prohibitive -- or prohibited by
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either tweets, rhetoric, regulation, on drug pricing, that changes the fundamental pace. >> fair. >> for several companies. >> we've seen, like, hundreds of billions of dollars in market cap already with that of the sector. are we saying that none of that is priced in? are we saying not enough? i don't know. my argument is we've seen probably a lot of it. >> it doesn't seem to want to stop. stocks have gone down. >> i'll be on thursday and friday. we'll see what the stocks do that day. we're talking day to day. z >> we're talking day to day? >> i don't know what the stocks will do a week from now. if you have a good sense to stephanie's earlier point -- >> the stocks have been down since hillary tweeted the first time. that was a year ago. >> so. >> on the other side, these stocks have been outperformers for the last five years being. there was a lot of ownership for this group in general. >> you may end up with a situation. >> it takes a while to unwind it. eventual eventually, josh, you'll want to buy. as a long-term investor, which i
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am, you'll want to buy. i don't want to catch a falling knife, though. i bought the banks into that messiness, and that was painful. eventually it worked out, but that was painful. you got to learn your lessons over time, and -- >> you probably -- >> eventually you'll bottom. >> you probably waited because i think you did, you waited for the opportunity where you started to see a turn in terms of what the banks were doing and how they were shifting within the world that they had been pushed into. we haven't had a chance to see that turn yet. it hasn't come yet in health care. that's why you stay away for the most part. >> let me wrap up by saying the bear case on these stocks i think is very well known. it's the pricing issue. the bull case, though, is rising volumes, ridesing demand for drugs. at a certain point i think that argument carries the day, but not tomorrow. right? not next week. i don't know of a lot of investors who are committing capital thinking or knowing they're going to get the slooults absolute lowest price for the stock. very hard to do that. >> we're going to take a quick break. cool off around here. when we come back, morgan stanley is bullish on chevron. they upgraded the stock today to
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>> welcome back to "the halftime report." i'm jackie deangeles with the futures now traders. we are watching gasoline futures spiking 8% today. the highest level that we've seen since june because of that. colonial pipeline explosion yesterday and the outages following. scott nations, the company, has
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said line two was prasal as of midnight. line one may be operational saturday afternoon. we're seeing the gains in futures come down a little bit. how worried are you at this point? >> well, based on what the company has said, much less than we were this morning when we saw the wholesale price of gasoline get above $1.68 a gallon. this would be less impactful than the leakage, the leaks that we saw in september when the pipeline was down nearly two weeks and we saw gasoline prices spike nearly ten cent cents. this is good news apart from the human tragedy. >> how do you want to trade it now. the saturday reopen is just an estimate. >> yeah, well, so i think when you're looking at this, you look at gasoline and going back to july, it started to break down to the downside here. it never really picked up when the oil markets started picking up around the opec talks. so what i think you saw today was shorts get shooken out, stops hit and now we're getting
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news that gasoline may be coming back online faster than we expect, you're seeing sellers get back in the market. the 155 is a rejection level. i see it staying below 150, trending to 145 eventually here in the next couple of weeks. >> more gasoline on the online show at 1:00 p.m., we're also joined by dennis gartman of the gartman letter, talking crude oil and steen jakobsen with his election preview. >> jackie, thanks so much. amazon shares falling more than 5% over the past week. that after the company missed on earnings. stephanie link, though, is still a believer. he bought more on the dip. >> i did. >> i was wondering what you were going to do. >> i will continue to buy. look, i know the quarter was not perfect. i think it was priced to perfection pretty much. we didn't get the operating leverage, the margins were disappointing. but it got the growth, got the revenue growth. north america revenue growth of 28.8%.
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you had aws up 55% with margin upside. i understand why the stock sold off initially. i think it will rebound. i like the story a lot. the secular story hasn't changed. wait until we get some traditional retailers when they report earnings, in a couple of weeks. these guys are going to shine. these are going to shine. this one is going to shine, absolutely. >> i think the key to the whole story, you've been on it, steph, congratulations on this amazon thing, a lot of us couldn't get our arms around it, we look at the pe and you can't do it. even the price level. ecosystem stocks, though, scott, i'm a big believer in those with the ecosystem. i think apple is in that category. there is all kinds of them out there now. ecosystem stocks, those with perform. >> i think the important level for traders, maybe not so much for investors like stephanie, but people trying to get an edge on where they think the next stop is, much higher, much
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lower, is 800 bucks. that's the 50 day. this was a reliable -- 50 day moving average on the way up, very reliable area for support. that's where the buyers came in on every hiccup. now it is under and that's acting as resistance. we saw the stock bounce back after the earnings slide, got right up to the level and was turned away. i think that's where the sellers may be taking control. you can get a close above 800 on good volume. even on a weekly basis. maybe that's where you see the buyers becoming emboldened. it is a tough stock to be long. >> quick break, come back, talk about why l brands is falling today. we'll be right back. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders?
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want to get a bunch of stocks. h brands is falling. we have that one. we have yum c trading on the new york stock exchange. steph, you like it? >> i own yum. i own yum c. i'll hold on to both of them. i bought a little yum this morning. i think there is a restructuring story there. i don't think that changes. yum c has a restructuring story. but it is china, you got to be careful on that. i like both pieces. separation spins usually work. i still like them. >> i'm in the same trade as stephanie, keeping both pieces. yum c is the largest publicly traded franchiser in the world now as a stand alone company. i think it has legs. >> we had keith meister talking about you want to own both. he said own both and you can understand why. talked about franchising, i think the pizza hut component is something people are not understanding. that's the growth area for the rest of yum. >> i don't have anybody in shares of l brands? like retail. you follow a bunch of retail stocks. >> execution is missed.
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>> 10% off 52-week lows. you're getting really close to that going into holiday shopping. >> let me quickly hit ten seconds left, chevron, upgrade. call of the day to overweight. >> you just got yesterday goldman sachs moving that over to the conviction buy. a lot of people jumping on this. short-term is the place to be. >> see you tomorrow. all of you as well. "power" starts now. welcome to "power lunch," everybody. we are, america, in the homestretch. finally just one week until the election. we're going to go inside all the latest numbers and why the market might be in for a shock. new developments on the deadly pipeline explosion in alabama that is fueling a big spike in gasoline. we're on the scene. apparently it does pay to have friends. a new study says facebook could be a life saver, literally. "power lunch" starts right now. >> and welcome to "power lunch." i'm melissa lee. three hours left


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