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

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think probably the role of driver will transition to kind of a fleet manager or the fleet operator where each driver will be responsible for a certain number of trucks or in a case buses, a certain number of buses, and they'll sort of manage their fleet and keep track of the status of each one. you know, occasionally they may need to take remote control of one, like if the computer is stuck or basically taking care of their sort of flock of trucks and buses. it's a different job than just driving one. >> and elon, we're in this period where a lot of workers are being displaced by deck nolg, nol technology, by ai. people wonder if we're in a negative tax rate or a reversal
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of basic incomes. what do you say to people that their jobs are in risk of being permanently dislocated. >> i think there's a pretty good chance we end up with universal basic income due to automation. i'm not sure what else one would do. you know, that's kind of, i think, what would happen. you know, people have time to do other things, more complex things, more interesting things. we're going to figure out how we integrate with a world in the future have advanced a.i. that's going to be one of the toughest maybe -- >> technology -- the technology revolution has taken place to y today. it took place 200 yooerds years ago, and that's where the ludites were smashing factories
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in london. the same thing happens now, and tesla -- what tesla does, what elon does is say, listen, you show me how you can do your job better. i'll get a more interesting job for you. people of tesla are really delighted working at tesla. people working other places, they see if they can eliminate them, they eliminate them. >> i'll give you one last word. then we'll wrap it up. >> well, i did have a thought, but it would take too long to convey in this interview. ultimately, i think there would need to be some kind of improved symbiosis with improved digital intelligence. that's pretty involved discussion. >> hard to do on daytime business news. >> thank you very much for this interview. i really appreciate it. >> yes, same here. >> elon, we truly appreciate it. elon musk joining us by phone.
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thanks again for having us, ron. let's get back to headquarters. scott wapner and "the half." ♪ >> the markets roll over and what should you do with your money just days before election day. with us for the hour today, jim levinthal, stephanie link, josh brown, john najarian. are the -- eight straight days of losses. hasn't fallen nine straight since 1980. 36 years. tech and health care among the groups that have been leading those declines. the vix is up nine straight days. i'm wondering if -- >> they believe that's a record. >> is it more prudent to have an exit strategy or a buying plan? >> i think you should have a winner to the up side. you want to be peeling money off with each one of these moves that we've seen. with the vix, it's been an
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kprierd move going from basically 12 to almost 23 in the course of a week. however, each time what we've been doing, scott, is we've been peeling off. we had the 1420 spread on. took it off. put more money to work on a higher spread and the higher spread now we're in basically the 2029 spread for the vix. you just -- i think you have to take some off the table because when the vix breaks, it breaks very quickly, and i would not trade the levered vix etf. >> overall that's where we should begin here. whether we think that there's uncertainty about the election, says if trump wins you could have a 3% to 5% sell-off. is it more prudent for investors today to, as i said, steph, have an exit strategy in stocks or a buying plan if it gets a little messy to jump in? >> yeah. i think you want to have a buying plan because i'm looking at the economic data, and i'm looking at the company
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fundamentals which are pretty good. you certainly have to have some dry powder, but i think -- what i have been doing is taking a little bit this week. >> i'm not selling. i'm actually buying. for matter what happens next week, right? the company that reported earnings, very good earnings, very good guidance and visibility, and strong balance sheets. the management team, that sort of thing. some of the stocks are down a lot. like union pacific. it's down ten straight from their quarter. great company. great franchise. good balance sheet. unlevered balance sheet. that's something that i'm buying, say, today, but i'll buy more on wednesday. if the stock falls even more. >> you look at the other companies. tech, facebook, google. great numbers. stocks pull back. terk has been rolling over. tech is down eight straight days. >> those stocks have had a great run, though. to answer your main question, the horse has already left the barn, scott. you know, we're 5% off the 52-week high and the s&p 500 last night which wasn't that long ago, and i do believe this
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is an election concern that the market has here that they're concerned about a trump win. let's dissect that for a second. trump is not anti-business. he is pro-business. what is the market worried about? it's worried about international relations with trump. what's he going to do immediately with mexico? what's he going to do with a wild card like north korea or iran? those worries don't come to fruition next wednesday. they come to fruition piecemeal over time in the next four years. to buy what's left about the points of a 5% drop, you may have already had the drop. i definitely think that this is a time everybody has to have your watch list of stocks to buy, and over the next foo days, you should be buying. >> anybody buying health care today? >> i think you can buy health care today, and i would point out specifically look at the ibb. this is the biotech index etf. you have what's heading up to be potential for an inside day at the end of a prolonged down trend. right now you basically have a
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scenario before you dip below 30 rsi. you found support, and you got a little bit of a turn where these stocks found support in late march and again in june. could be a triple bottom if we're having an inside day, the significance of that psychologically is that neither the bulls nor the bears feel kfrt enough to push this thing in either direction. >> look, you have the biggest dash for cash among investors since 13. in three years because of the uncertainty that is around in the market. >> judge, if -- >> as i said, that sort of characterizes the last few days as though it's -- it's felt as though the market is teetering. >> and -- >> it hasn't moved by huge amounts. it's teetering, and it doesn't feel like it's leaning in the right direction if you are lost. >> true. peter, question, should you sell? right now i would answers it, number one if you are in taxable accounts. the tax that you incur is going to be more debt nejts e mental to your long-term training and
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investing than the perhaps 3% to 5% that citi is talking about and that many of us here on the desk have talked about. that would take us a 5% decline would take us to approximately a 10% overall off the top. if you had a non-taxable account, however, judge, 401ks, ira's and the like, i would take an awful lot of that off the table here. if you can't edge, you need to do something like that. >> you would take 401k -- hang on. you would take 401k assets out of funds and put them in cash? >> if i'm expecting, which i am, josh, expecting 3% to 5 3erz drop next week. of course, i would. >> there's no commissions these days. commissions are zero. >> who can time it this well. maybe you can. guess what, i couldn't. guess what, i think you absolutely -- 3% to 5% is a welcome --
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>> we're going to have an election. november 9th we're going to have a reaction to that election. it's either going to be a surprise one way or the other to democrats or republicans do we agree on that? >> what if we saw the market go up 3% to 5%. >> we could. >> it's off already 3%. >> i want to make sure -- >> it's more than -- >> hold on a sec. i want to make sure year clear here. you are telling people today to go to some level of cash. >> if they're a non -- >> in their 401k. >> if they're in nontaxable accounts. >> i think it's about i.r.a.'s. >> if you have a nontaxable situation -- >> for a 3% to 5% pullback, you want people to make that. >> we're lucky at 3% to 5%. >> and then time it well enough to get back in? >> i think 3% to 5%.
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>> 3% to 5%. >> let's say you have $100,000 portfolio, you miss 3%, that's $3,000 to the up side. most people are more concerned about losing money than about making money. it's not this game for the long-term. it isn't about making money. it's about not losing money. most of our clients are asking us don't make me rich. just don't make me poor. what we do is i put on hedges. not everybody trades derivatives, though. for us we've put on enough hedges with the vix and the s&p. our guys aren't -- >> i would give you alternate advice. i would say to someone if they're concerned about with 3% to 5%, they understand they would never make money with that attitude. when you are talking about 401k assets, ira assets, you can't touch the money for 20, 30 years anyway. what's the difference if you have a door to 5% down or even i if if it's 10%.
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i don't know that i'm good enough to tell people, all right, i got you out. here's the trump swoon. now we're going to rebuy all these markets. >> i know whether you are, and you are probably not, and who is? who is? >> that's the point. >> if we thought that this was a 10% decline from here, okay, then you have an argument to make. i'm going to make this argument. you're not going to have a 10% decline. not with the economy growing 2.5% to 3%. not what the labor market putting up 160,000 jobs a month still. you have to have a recession here in the u.s. my opinion. in order to get a 10% decline. the trump win is not going to send this market down 10%. >> to that point, i think you want to go back to the fundamentals and companies that are reporting earnings. that's the good thing about this whole timing. we're getting the company reactions and the data points from them real-time. right now. these companies are reporting, giving guidance and showing visibility. not everybody is reporting good things. those that are? those are the ones that you want to put on your laundry list to
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buy. 3% to 5% correction. you don't want to sell it today and buy it back tuesday. i don't think anybody -- nobody is really good enough. >> there's a higher chance of one of these types of corrections around inauguration day when the tanks are rolling down the street to celebrate. i think, you know, we have to wait to see how serious we are about all of these trade restrictions and proposals before we say the market is going to completely lose its mind. i don't know if we have any sense of whether or not he is going to push for one thing versus another in the event of a trump win. i would demure rather than try to find -- >> all right. we obviously know election uncertainty weighing on the markets. john harwood joins us now. live from washington with the very latest on where things stand in the race. john. >> let's just step back and look at the big picture. we have a national abc news-washington post tracking poll which showed donald trump edging ahead earlier this week. now hillary clinton is up by 3,
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47%-44%. that roughly tracks what we see from the battleground state picture. look at this nbc news map of the electoral vote count. hillary clinton has slightly more than enough states either leaning or solidly her way to get over the 270 electoral votes she would need to be directed e elected, but we've got a weekend of campaigning to go. both candidates are -- look at hillary clinton. she's defending turf that barack obama carried twice over the next couple of days. you've got pennsylvania, wisconsin, florida. all states that hillary clinton is trying to hold on to to prevent donald trump from climbing beyond the 270 votes from the 206 that mitt romney got four years ago. she also has surrogates like president obama, joe biden, bernie sanders out for her. different tasks for donald trump. he has more places he has to break through. he is campaigning this weekend in one state, north carolina.
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mitt romney carried it. hillary clinton has been running strongly, and he has to hold on to that, and he also has to break through in states like florida, ohio. he needs to do well in it colorado, new hampshire. all of these are potential targets that could be part of a donald trump path to 270. an uphill path. not an impossible one. >> thanks so much. we keep watching the map, and we keep trying to come up with investment strategies. the s&p 500 approaching a key level, right? 200 day moving average. it's certainly one to watch. jim cramer on the show says he hasn't seen the carnage like you're seeing in health care since the banks in 2008. i just want to make sure -- i want to give you a chance to sort of clarify exactly what you are saying. >> sure. >> i'm saying -- >> the advice from this desk is taken seriously. >> well, so jeff gundlach on our show, multiple times, has targeted a certain level of the s&p 500. if we stay below it for longer than ten minutes -- >> if you close below a couple
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of levels twice. >> yeah. which we have. >> right. >> now, if you start getting people selling as citigroup says this morning that you could see a 5%, i am not saying it stops there, judge. that's why i have puts for our clients. we have vix call spreads for our clients. if you are somebody who has never done a hedge like that, then when you're questioned, should those people be hedging or raising cash, if they don't have any other dry powder to buy on a dip, then what are they going to do? they don't get any benefit when the stocks drop. instead they just get hurt. to those people who don't have a financial advisor like josh or jim or even tiaa where steph is, then they need to make some move. if they don't have puts, don't have calls, they need to make a move. >> to john's point, and i think this is actually the most important aspect of this, we're talking about different people at different phases of their investment in their life. if somebody has already built up
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a seven figure i.r.a. account over years and years of accumulation, and that's the money they're about to start spending in the next few years. absolutely. protecting that is something that should be discussed and carried out. if someone is in their 20s and they're dollar cost averaging out of their paycheck into a 401k, the only thing they should be doing if they sense, you know, my spider sense tells me volatility is coming is upping how much they'll be contributing. not thinking about protecting $40,000 that they've paid over two or three years. i think that's an important dis ik i could -- distinction we need to make. >> i'm a big proponent of dollar cost averaging. i do this every single day, and it's impossible to climb. that's why you have to go back and view -- and look at what is your objective? what is your risk profile and your risk tolerance? totally. i mean, john has a point, sure. so does josh. i think we're trying to give you the advice of really looking inside yourself to try and see what you are comfortable doing.
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>> if you are an individual investor, this election is supposed to be reflected in your asset allocation. your advisor, whoever it is, is supposed to get your risk tolerance right. that's supposed to be reflected in your asset allocation. if, however, you're a portfolio manager, as several of us, including me are, you're looking at this as an opportunity to buy stocks on the cheap. i've got cash on the sidelines. i'm not fully invested. i'm looking at this opportunity as a chance to buy those stocks on my watch list at better prices than they were two weeks ago. if the stock market goes down on november 9th, it's more likely to bounce back up in my opinion, ala brexit, than it is to be a bear market. that's what we've said all week. we've said that for two or three weeks leading into this. we're going to see a spike in volatility regardless of how the election is going because it's going to tighten up, and now according to mr. harwood, it's swinging the other way again. we'll see how much vol comes out here, judge. like i said, nine straight days. we have never seen nine straight days of higher closes in the vix.
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that tells you something. >> the damage in the actual indexes -- >> they're small. >> no, exactly. >> ain't much. >> what is that telling you? it's telling you people because the vix isn't something that the retail plays. the vix is something that pros play. when people are putting on like they did yesterday afternoon, says 25,000, which is 2.5 million share ekwiflent at the 19 strike in the vix and sold the 30. that wasn't me. that's a hedge fund that's worried about what could happen next week. what does that tell you? you've only moved this much. somebody is putting on a trade for us to move this much. >> all right. here's what else is coming up on "the halftime report." >> shares of tesla down 20% this year. elon musk talking about the company today on cnbc. >> if you have factories in electric cars, you have a complete solution to sustainable energy future. >> investor ron barrons saying this is a stock to own for the long-term. >> next 15 years we can make 30 to 50 times our money. >> is it a risk you want to get
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behind? >> big names report next week. on the list, kohl's, macy's, nordstrom and more. is the seconder on sale, or should you stay away? more "halftime" in two. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future.
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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. 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.
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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. i'm voting yes on 64. >> welcome back to "the halftime report." want to touch on that for just a
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moment. some reporting i've been able to do, according to sources that this time the twitter board is not actively pushing ceo jack dorsey to choose between running that company and square where he is also the ceo. i'm told that even with twitter stock slide and continued under performance that dorsey still has the full support of the board, and that's largely because of the board's continued belief in dorsey's abilities as a product person. he is said to be fully focused on improving twitter's user experience. you saw twitter shares just there. they did rise into the low 20s a few weeks ago, and those reports of a possible deal. they've moved back towards where they were before those reports surfaced, but there they are. you're the shareholder. stock is at 18. we've had bill miller come on. he is a shareholder. he said jack needs to choose. ross levinson said jack needs to choose. sources tell me the board is not telling dorsey. you need to choose. >> the stock is inching up, in the meantime. let's separate company from the stock. the company is every bit as
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elemental to what wets going on with the election. what happened with the world series and all the things we talk about. the stocks have been inching up above 18.5. it gets into the gap here. the post earnings gap. we're not getting bought out gap, and that could get interesting from the long side. the one thing they haven't tried is maybe having dorsey be the ceo of three companies. >> in all seriousness, we've had two very well respected people come on the show. one a great investor. >> i'm told the board is not putting any pressure at this time on dorsey to do that. >> is that a mistake? >> what if they report earnings and they say we grew by 10 million users instead of 5 million. our engagement metrics are up, and some of the new ad products are catching fire. are people still going to be saying, oh, he has to choose? we're very much tied to what have you done for me lately? he hasn't done much for
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investors lately. that could change on i adime. >> do you want to choose? >> i don't care that much. >> then somebody coming from somewhere else and taking a year to figure this whole thing out all over again. probably not being able to. >> i also think that from a sent meant standpoint, the twitter-oty, they want him. they get what's going on. they understand -- they're not happy with the share price. every single one of them had a conversation with. they either want him. >> it you don't think the board should be pressure on him to choose. >> i think there's enough pressure on him already. >> putting pressure on him. if all of a sudden they brought in something new, unless it was, you know, musk, if you put somebody else in this spot, they're in the captain's chair on the same ship. i don't know where that goes. >> if you put it in to something like a google, then you see a
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reaction obviously, and i believe that's one of the only real positives that could come out of twitter right now. >> is this really a one-man show? >> josh, i know you are -- twitter is very important to you. >> i don't use it anywhere near as much as you, but is any company really a one man show? >> no. the show on twitter, what's really going on, is the user base. as long as celebrities, athletes, politicians, reporters, people who are influential continue to put on the show each day on twitter, which they do, and as long as news breaks there first and it maintains its place in terms of importance, you could have a ceo and pulling some levers or hitting different buttons, it might help or hurt a little bit. i really think this is about the asset right now and what the assets could be worth to a future acquirer. that's what most investors seem to be focused on. >> there are shares of whole foods, which are halted for
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volatility right now, which it's interesting that the stock was downgraded to a sell today at bank of america, merrill lynch. that's a spike there. halted on volatility. you guys have thoughts on this one? >> generally when you get that sort of price spike, i mean, you're thinking -- >> give me something on the stock. >> this is a story on whole foods. it trades at a premium. it trades at a premium to the rest of the grocers, says and there's no look to competition in whole foods. you got kroger's with an organic food department. you got any supermarket that has organic food. i don't see anything distinguishing whole foods from the rest of the supermarket industry. yet, they trade at about five turns more in terms of a multiple. i would be worried in this stock. i know it's gone down a lot over the last couple of years, but i would be worried it goes down further to match kroger's. >> take the helm and john -- >> i actually think that's positive. again, simplifying the management structure is always a good thing, and i would say on
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the twitter for half of a second, says why couldn't you have a chairman roll and then have a new ceo come in. i just think a cleaner structure gives investors a little bit more confidence with whole foods. you saw that stock spike not because of the quarter the other day, but because they changed the management structure. >> they have a lot of stuff to do, though. their quarter is horrendous. >> you have more on whole foods? >> you guys. the reason why those shares are spiking right now is because of a bloomberg headline coming out saying that a whole foods investor or shareholder is said to plan to push for changes at whole foods, including a possible sale of the company. this according people familiar with the matter. that's the reason why those shares are spiking right now and it's on those particular headlines. we don't have a lot more right now and we'll brif you more. we'll see what's going on there. that's the reason why those shares are spiking, scott. back to you, guys.
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>> it reminds me of yahoo where they have dominance. internet content and the advertising that goes along with it. then other competitors come along. the landscape changes. in the case of whole foods, you could bring that to ceo. you could push for changes at the company. whatever you want to do. at the end of the day ten years ago you did not have as many people offering the same type of organic grocery high-end shopping experience that now whole foods faces. they're not facing start-ups. they're facing some of the most established players in retailing history that are doing what whole foods does, doing it at a better price point and a more convenient way. then winning this -- >> why wouldn't someone like a target go after something like a whole foods. they've had a huge problem on their grocery business. >> they want the real estate. they want those leases. why can't they just imitate it? >> they want the quality, and they want the name brand, and they want maybe the locations for sure. if you listen to what the ceo of target wants to say, i mean, what he has to say about the
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company, what they want to do with their grocery business is certainly make it like a whole foods. they don't think they can get there overnight. that kind of combination sort of makes some sense to me, and with simplified mrgt structure, maybe that's also easier to get. >> activist investors eyeing whole foods is a lot different than an activist investor in whole foods as we speak going public and making a whole bunch of noise. remember, there was a report that activists were eyeing twitter. you know, a few months back. yes, the stock spiked. we tried everything, though. they have more money under management. activist hedge fund is a category than they've ever had. they're eyeing everything. why wouldn't they? this is a stock that's been pummelled. it was $70. it's in the 20's. >> of course they're eyeing it. >> this is an industry known for terrible margins. if anybody is going to be buying this, you know, you would see the stock up 10% if there were an actual buyer out there interested. >> that's what i'm saying. >> activist investor funds
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studying whole foods. >> there's a long road to go before you get to an actual sale. the sale is going to be -- if there were a sale, it would be impeded by the fact that this is a difficult industry. grocery margins have always been terrible. whole foods has enjoyed a premium margin, right? whole paycheck as the saying goes. for years that moat to competition has evaporated where. >> i would like them to spin off the produce. i mean, what are they going to do here? if you don't think there's a buyer, why would you get involved? >> i don't know. we've seen the stock come down a little bit. european markets are closing right now. seema has those details for us today. >> once again, it's the pound that is at the forefront. now trading at a one-month high as investors bid up the currency on the prospect of a stock brexit after the high court yesterday ruled that the government must get the approval of parliament to initiate that formal process of leaving the dwrurp even union.
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although foreign minister boris johnson today saying, he would not read too much into the rulings. in it exactly one month italy will host its own referendum. prime minister renzi's intention is to streamline the political system and reduce the number of steps to get laws passed, which would help expedite his economic reforms. it's a vote that will likely decide the fate much italy's leader, and the big risk is if the vote doesn't go in his favor. it could ultimately get power to the five-star movement, a populist party that has been calling for italy to leave the european union. now, the approach december 4th, the day of the referendum. it has come off their lows. sharply on the year. down 82% year-to-date. down 75%. the biggest -- >> seema, thanks so much. shopping for retail stocks. the big names on deck to report next week. our desk will give you their top
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picks in that sector. plus, go pro is diving after a disappointing outlook and starbucks sales perculate. straight ahead in the blitz. bend me shape me, any way you want me as long as you love me, it's alright...
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>> i'm courtney reagan, and here's your cnbc news update at this hour. two former aides to chris christie were convicted on all counts of creating an epic traffic jam on the george washington bridge for what prosecutors says was political revenge. sentencing for bill baroney and bridget kelly is set for december 21st. a distraught kelly appeared with her attorney. >> this is the first step in a process. this is the first step in a process, and this is not over, i assure you. we're going to have another news conference, but it may take or year or two. it will be discussing different issues and a different result. >> over 60 hedge fund employees from the greater new york city area gathered last night to raise money and awareness for homeless youth. they spend the night sleeping outside the covenant house to experience what it's like to be homeless. they raised nearly $200,000.
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and thousands lining streets of chicago to cheer on their beloved chicago cubs. winners of the world series for the first time in 108 years. t they ended for an official ceremony. brett eldridge and illinois native is singing "go cubs go" in that parade. back to you. >> courtney, thank you so much. >> people may be staggering through much of that parade route. i think i might be able to catch some of it still. >> look at all those people. >> where is that? is that millennium park? >> you should have seen the turnstiles when they opened the gates this morning. they have these shoots just like in a marathon for people to go running through. it was a mad dash. i'm not sure that they're lake-effecty that the weather is as good as it is. a lot of folks always wonder why do they do it during the week? they have a lot more trains during the week than on the
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weekend. >> my daughters are out of school today for it. i mean, they didn't skip school. school was canceled. >> all of chicago should be out for it. >> we're going to take a quick break and come right back. take your positions ahead of some big retail earnings coming up next week. we've got kohl's, macy's, nordstrom, penney's. plents more when we come back. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses,
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>> power lunch starts in 20 minutes at the top of the hour. we've got a new war on drugs. this is not about nancy reagan and heroin. this is about bernie sanders and pharmaceuticals. washington taking aim at big pharma. is the sector becoming uninvestable? china taking over hollywood with the latest acquisition may be signaling for the movie biz. ain't it a great country? not only can you eat twinkies and ho ho's. now you'll believe able to invest in them. scott, back to you. >> wish we had some right now. >> next hour. power lunch. we got it right on the set. come over where. >> i'm going to raid her desk.
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thanks, michelle. retail earnings kicking off next week. we'll hear from kohl's, macy's, nordstrom, penney's. many more. do you still own jc penney? >> i wasn't going to mention. i was going to make a trade that i won't mention jc penney if nobody mentions amazon, but i'm sure both sides much that trade are going to get blown up. it is what it is. this is not exactly a quarter in which anybody is expecting fireworks from the retail sector. i do still like jc penney, i like nordstrom. i know you own that as well, stephanie. really this is all a lead-up. what are they going to say about what they're seeing as far as fourth quarter buying? it's the holiday season that's going to carry these stocks. >> wayfarer on tuesday. short interest there? kohl's, macy's, nordstrom? >> i have been selling from nordstrom. 42% from the low. i'm still overweight it, but i have been putting it into macy's. even more that's a consensus long, it's much cheaper. it has a much better dividend yield, and i like the
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restructuring of what the cfo are doing. >> i really -- i really don't have any sense when i look at -- that any of them are under accumulation to where we started to move. they have all bounced nicely. to steph's point, if you bought them in february, they're in no man's land, and fundamentally none of them have anything particularly exciting to say. what we're basically still talking about even going into this holiday season is it's e-commerce, which they do okay at, but they don't own it versus brick and mortar, which is pretty -- i'm not excited about anything in this group. not big enough dividends or buy-back programs to get me there either where. >> up next, the big go pro turnaround. that stock got hammered after its earnings. now it is up 3%. we'll talk about why next.
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>> we're back on "the halftime report." john najarian tracking unusual activity today at the telestrator. >> babba. >> earnings this week, judge. the stock popped to 105. slammed back down into the 97 or 96 range. make it a bit of a recovery today. it's only up 25 cents.
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somebody comes in big. they buy the 101 calls. november expiration. that volume spike 10,000 of these calls were purchased. it was a spread, though. they bought 10,000 of those. sold 10,000 of the 105's. that is a $4 spread, judge. they basically paid about $85 cents for it and put about $850,000 to work. they're going to own a million shares between 101 and 104. that is a big bet, and alibaba, i think, will start moving. i bought the called along with this big buyer. >> all right. make your way back here, doc. thanks very much. up next, the oil and natural gas producer that stephanie link says is best in class. its shares are surging 32% this year. first, a look at the s&p sectors today. there they are. health carec is leading the way for a change. we're back after this. >> inconceivable. same way?
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chasing after short term returns. instead if getting caught up with the crowd, the investment managers at pgim take a long term view, teaming specialized active investing with risk-management rigor, to seek out global opportunities. we manage over a trillion dollars this way, attracting many of the world's leading investors. partner with pgim. the global investment management businesses of prudential what are you doing? getting your quarter back. fountains don't earn interest, david. you know i work at ally. i was being romantic. you know what i find romantic? a robust annual percentage yield that's what i find romantic. this is literally throwing your money away. i think it's over there. that way? yeah, a little further up. what year was that quarter? what year is that one? '98 that's the one. you got it! nothing stops us from doing right by our customers. ally. do it right. let's get out of that water.
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>> we're back with our trader blitz. eog reported a smaller loss than expected. you say the stock, steph, is the best in class in the space. >> it truly is. this is the best management team that got the best permean assets. they continue to drive cost lower. it's not very many. any energy companies for that matter that are doing that. i think you still have to stay on board on this name.
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>> twilio, josh. still expected lower. >> it's going to be a rock 'n' roll stock in both directions. very high beta. very small. it's going to make outside reaction. it's benhamered enough that you can enter this if you want to be part of it. i personally am not. >> jimmy, record profits at starbucks. >> starbucks is a great, great company. let me make that point. i think the shares are pricey, even after languishing for the past year. it should be on everybody's buy list and maybe wait for it to get cheaper before you start to nibble. one thing i didn't like in this, i believe howard schultz referenced the uncertainty of the election as impacting u.s. sales. i don't think people are backing off on their coffee purchases because they're worried about a trump election. i say that more for humor than fundamental characteristic of the stock. >> you saved that humor for another venue, sir. >> i want to jump back in and jump back forward again.
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i just said cramer has the ceo of twillo tonight exclusively. so i want to make sure we mention that. jeff lawson tonight with jimmy. we look forward to that. back to starbucks, is the stock broken? has it been broken? >> it is possibly a value trap. >> a decelerating growth story. >> it is still a great company. there are international markets still open. >> everybody thinks is starbucks is a great company. yea. stock or not? >> honestly, this is what i was saying, i was saying you don't have to go buy this right now. it is possibly a value trap. i don't think you lose money in it, but there is nothing to move it higher over the short-term. >> okay. go pro is moving higher now. that reverses a huge 20% loss. the company reported a weak quarter, weak guidance. >> they have got a product that a lot of people like and i love the hero 5 as well as their drone product.
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and i think the big beneficiary will be best buy. let me do a mea culpa. i talked about unusual volume. i bought the 12 1/2 calls, sold the 13s, paid 22 cents for it. that thing looked like it was toast last night when stock was trading below 10. it has come back and maybe i'll get -- i would say most of that 22 cents is gone, this one didn't work out. >> anybody -- where is this company in a few years? owned under somebody else? >> i think a private brand rather than a public company. >> like a best case scenario, somebody with a much, much bigger base of consumers to market this to wants the ip, wants the brand or something. i don't know this is something i want to be in. stand alone and to the credit of the show, i think we marginally stayed out of this since it has become public. >> just three hours to go until the close. we're going to look ahead to earnings next week when we come back. valeant, shake shack, disney, there is the board.
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we talked about the retailers. we'll hit the calendar next.
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well, when you win the world series for the first time in 108 years, you throw yourself a big party, that's what they're doing
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in chicago right now. doc will be back there later. >> yep. >> making his way over, hoping to catch a glimpse of all that. good luck getting back into the city. >> well, i think i'll take some public transportation from the airport, judge, just like you last week. the only way to beat the traffic in chicago. >> i don't know if that's anthony rizzo himself or a fan, but -- a big day in chicago. let's look at the names set to report their earnings next week. valeant, a lot of the retailers, what are our big thoughts here, disney. let -- >> mgm. >> do that first. >> you had wynn disappoint and las vegas sand did a good job. i think both companies, though, signaled that las vegas remains very strong. that's good for mgm. that's the one i like. concho, they report next week as well. >> what about disney? thoughts on disney.
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>> how much does the subscriber -- >> i'm a buyer. i don't own it. if they disappoint on earnings and the stocks take a hit, i'm a buyer. i think there is cyclicality with the election overtaking people's interest in sports programming, sports content. i genuinely think the movie slate looks great. and the stock will get hot again. if they want to beat it up because the bad espn numbers already out, we all know them, to me -- >> it is a year and a half old, the story. >> enough already. i'm a buyer. >> viacom is reporting next week. both disney and viacom can give some color, some qualitative color on what is going on with m&a activity. >> -- reported and gave you when you needed to know. viacom is not going to add anything new on that angle. >> the difference is disney -- >> the difference is disney and content. >> i think -- i'm not saying that by any means that viacom
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will announce a merger or something like that, but they can address what is going on in the industry during the call. >> talk about cbs and whether or not there is interest, strong interest and it is probably very strong. >> they can't be ignoring what is going on. >> all right. let's go back to the election, the markets and the look ahead to next week. it starts to get hot and heavy, obviously. i think it was a week ago when i suggested -- we were talking about the market and said what if trump wins, josh laughed at me. now you laugh, yes. you laugh. >> i said what if trump wins. you said good luck. >> no, look -- >> you say he's going to win. >> i have a bet with my business partner that he's going to win, for a month. so i think he is going to win. the question is are investors prepared to which i scoffed because who knows -- >> we'll cue up the -- >> that's how i took it. >> i think he's going to win. i thinks going to win. i said it for a while now.
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>> doc? >> i think he's going to win. i think it is going to be the downtick is where it is going to get real interesting, judge, because a number of the states that were -- the battleground states that he has to win were also states that the democrats were counting on for swinging the senate and/or none of us really thought the house was that much in play, but potentially the house. now i think that's all -- >> you've been talking about making short-term moves in the market. what do you buy? buy bonds or -- >> my buys on the day after will be something similar to disney, facebook, exxonmobil, procter & gamble, those will be stocks i'll be looking at if we get that 3% or 5% dip. >> big blue chip dow stocks. >> you bet i am. that's what i go after. >> steph? >> i don't know what's going to happen on tuesday. i'm looking forward to it getting -- i'm looking forward to it getting -- let's get past it. >> she's not allowed to say. >> that's right. the point is, i want to get past it. >> we'll give you a pass.
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>> give me a pass. i'm buying stocks. i have a laundry list. u.s. steel, i think the steel stocks are poised to move higher. pricing is getting higher. >> on wednesday, the election is done, we focus back on the economy -- >> you're not going to say either? >> give me a second. >> the show is over, see you. "power lunch" starts now. i'm michelle caruso-cabrera. and the jobs factor in the election is topping the "power lunch" menu as the candidates head into the final stretch of the campaign. live reports on the economy, and the polls straight ahead. and there is a new war on drugs, yes started in d.c. again, but not cocaine or heroin in the cross hairs. it is big pharma. is the sector now uninvestable. and the disaster du jour that got us thinking have we reached peak gadget? "power lunch" starts now. ♪


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