tv Fast Money Halftime Report CNBC November 8, 2016 12:00pm-1:01pm EST
>> the markets are filtering some of that information. >> the markets will be careful to give people a chance to vote and feel their voices have been we heard. >> we will see you tonight. it's time for "the half" back at hq. [ music playing ] >>. >> all right. guys thank you so much. i'm scott wapner. your market, your vote. as america goes to the polls, where will your money work today? joining us today is our panel. we do want to begin with a look at the markets. stocks hanging around, pretty much the highs of the day. dow jones looking at a nearly triple digit gain following
monday's big gain. thatters the s&p 500, nasdaq following suit as well. the ten-year note yield 1.86%. americans heading to the polls today, including presidential nominees, hillary clinton and donald trump both casting their votes early today in new york. our don harwood closely following the election. he is here at the wall with the very latest. john. >> scott, hillary clinton's favored to win today t. pom versus shown her ahead by four points or so on a national basis. this is the battleground picture. if you look at the assessments. a lot of blue on that map. enough to get her over the electoral votes she needs but she has to deliver, significant amount of vote has been cast early, but not all of it. and so donald trump has to hope to pick up florida, pick up georgia, pick up north carolina, pick up ohio and flip some other state that's on this map colored in blue. maybe michigan.
maybe virginia. he has a shot in new hampshire as well. it's not going to be easy. a lot of work for drumplt we have to wait to see while those votes are cast and counted. let's take a look at the race for the senate as well. you've got democrats needing four seats to get a majority, if hillary clinton wins. they've got a food shot to do that, but there is no shot whatsoever. all of the battleground senate races, we won't know until tonight. as for the house that is a case where the trub republican versus a clear advantage. you look at states are republicans are safe or leaning their way. it's 218 seats. you need 270, for democrats to twin house, they have to hold these seats and win the tossup seepts and take away at least nine seats that republicans are favored to win. a very difficult task. again, we will get those votes
counted this evening and find out the answers. >> as you saidsh maybe it's the down stream that dakked late into the evening, tonight not necessarily the race for the white house. >> that's right. remember, if hillary clinton wins the presidency, whether or not she has the ability to fet her agenda through is going to depend on does she control the senate? does she have a significant possibility of getting anything she wants out of the house? the stronger republicans are in the house the more they're going to shut her down. >> john, thanks,. john harwood the latest at the wall. dr. j. we saw you before yesterday's 2% rally. you were raising cash. >> i said to folks that could not have, if you recall on the desk, i was saying, if you are somebody who could not hedge, did you want to take the risk of that 5% decline? i said for our clients, we put on that vix trade i described.
>> you were certainly cautious two days ago, that's what i'm trying to find out. >> i am still cautious. we have the 56 hevix hedges. we put it up on our website. i paid about 1%, judge, in other words, a portfolio, paid $1,000 to hedge through the election. >> that will be good until tomorrow morning. >> that particular hedge. i provided all the protection last week. so none of the portfolios impacted at all to the down side. now with the lrally, we are up 2.5% from friday. >> that 1% cost means you are only up 1.75%. i can live with that. >> in two days, you got back all the costs you lost in the nine-day losing streak and then some. >> on friday, it's so hard to time this whole thing. who knows how it will plan itself out.
it seems like clinton is going to win, but she doesn't sweep congress. that's why health care has rallied, cyclicals have rallied, saying i do think it's interesting today, two downgrade of the bank stocks, rates continue to go higher. so, look, i have been buying over the last couple of weeks because i felt really good about fundamentals, visibility. i have a laundry list of name. i lean on the cyclical side. i do think the economy is getting better. i think it is going to get better. that's why i want to own those stocks. >> trump wins. what sectors do you buy? clinton wins, what sectors do you buy? >> i think most of america have spent the last eight months trying to figure out is either electable? now we have reached the moment where someone actually has to win. none of the above is actually voting. i afree with stephanie.
i think what the last nine days has actually done, i think it's created more of this massachusetts formation. where you have the ljs laich in a liberal capacity and you have at the top a governor and a conservative capacity. i think the senate has maybe pushed back toward the gop. so if you like gridlock and the markets, scott, are telling you think they they locked gridlock today, that's good. janet yellen, mario draghi, they have told policy-makers, hey, the next time a recession rolls around, the next time you have a problem, don't look to us, it's fiscal policy. the gridlock you get today you might not like it so much in the next year and they can't come up with the fiscal simmelkjatimulu need. >> we say political uncertainty has been building and building
over the last few months. it obviously peaked really over the last week when you saw a lot of machinations in the campaigns, when you take a step back and that political uncertainty dissipates, you can look at the global liquidity outlook. it's growing. services up close to 55. liquidity conditions are changing quite rapidly, we will turn our attention to the rates. wily the we will go up in december. so as we take a step back, the markets are put in a position with that outpush, they're selective. this political uncertainty will dispay. >> let me ask you this, why if clinton wins shoond you fade the rally? >> i seen some suggestions that you should. >> if 23 take a look back at where growth is in the u.s., growth is improving. you look at all the latest surveys, we're still in the
earnings season at the moment, you can see all of that improving. that's not a reason you say, okay, growth is dissipating. we should be fading this rally. as we move into 2017, which is what the world will stop, markets should be more positive. >> i think the down ballot that john harwood spoke of moments ago, and you spoke of, scott the down ballots meaning the senate races in particular, i think they took the most heat from the prior 12 days when ms. clinton was under that scrutiny by mrs. comey and the fbi. i think those races do not flip. i think that's what you are seeing in the marketday today. they don't flip democrat. instead, whether it's a split or a straight republican sweet there, i think that's why you are seeing what you are seeing in the marketplace. >> john har woord still with us. >> that goujs umm 100 points. we have almost forgotten in the last couple of days what's
really at stake in the down ballot throughout congress and how that generally could genuinely impact the way stocks trade in the days ahead. >> look. there's a chance that hillary clinton would get, if she's elected, would be totally road blocked on her entire agenda. so let's talk about her going after pharmaceuticals and generating borgening pbargainin power for the government. >> that would go away. can she get to infrastructure plant? that's something that probably has the agreement between the two parties, but you got to figure out how to finance it and you can finance it through some sort of international tax reform. a lot of disagreement with the details when you get there. i think the principles effect, if democrats win the control of the senate, even very narrowly, would assure she can get supreme court nominees through. there is a filibuster that
requires you get votes, they've taken that away and changed it for the lower nominees. i believe that if republicans were to block hillary clinton on the supreme court the democrats would change that rule and go on the majority vote to put a supreme court nominee on the bench. >> what about this view, stocks will go up no matter who wins. once you get the noise of the elections out of the way the fundamentals have improved enough that you should be buying stocks. >> that's what i have been saying all along. >> if he was looking for a ten percent move higher between now and the end of the year. >> you could get a massive chase. right? you do know many are behind their benchmarks right now, can you get a massive chase by getting this decision behind us. why not know the policies between now and the end of the year? so you are going to have this. that's why you have health care rallies, because again, mixed congress, clinton, guess what, if trump gets in, health care
rallies because trump is less onerous on the industries, other sectors, tax reform, this is why the caterpillars are doing so el with, people are already expecting. that that i think is going to get more enhanced between now and the end of the year as people chase the performance and try to make up their year. >> judge, when is the first line item going to be out there with the december fmoc within they make the announcement they will be there? >> you don't think so. >> no. >> steve weiss says it's priced in at this point. >> a lot is priced in. what is not priced in people will examine a lot of the analysts on the u.s. debt. >> that i will say, we are the largest opener of our own debt. we own 40% of our own debt. we've jumped over china and saudi and everybody else and the somps buying our debt. we own more than anybody else. all of a sudden that debt financing goes up and up and up. sooner or later, somebody will
be writing a warning note out there about the cost of this financing of that. >> do we believe that it could go up 10%. >> what stocks? >> the market by the s&p. >> no, no way. because are you at the moment in the marketplace where you have to define and tell me which stocks are going up. if i look at energy, i emphasize, i fine it highly suspicious. >> maybe you are asking people to do too much work. why not buy the s&p? >> i don't want to be a closet indexer. i believe kevin o'leary. the most compelling thing he said about disney was, hey, if the market goes down, i don't think disney is going to incur the volatility and the performance negativity the overall market is. that's what you want to do right here. i think you want to find equity days, where the market is going, you will experience less volatility because they have proven reserves.
stephanie speaks about industrials. you and i have talked about defensive names, norfolk grumman, they reminded me, a stock i own i think it's at a five-year high. technology which in the last couple weeks shot sold off a little. you will see less technology in those large cap technology needs. >> you are giving me reasons why it can move higher? >> volatility and staples, mna is going on there. you should see it today, it's going crazy, maybe the defensive sectors lag. some of the other sectors -- >> it can go up without utilities. >> they're not big parts of the s&p in terms of weight, for sure. but maybe shows stocks of other sectors go up even more. >> i think this is a market for sector allocation. we can certainly see sectors doing that, sectors, such as
technology, will be benefits, will go up irrespective of the election outcome. sectors such as housing, some of the regional banks are expected to do quite well. certain other sectors, some of those, more defensive sectors, some of the right sensitive sectors, which have been bit up so far in the last few days because of this search for safety are really going to come up quite hard when you get political and certainly dropping out and you see rates going up. >> you have all these disenfranchised voters, angry going to the polls, you want to protect yourself, by the technology needs, they're the ones taking away jobs in this country. either candidate is talking about it t. senate the house isn't talking about it. it's a problem that will continue and slow economic growth. technology is taking jobs, it's creating more efficient sis and
productivity. it's also problematic for the economy. >> do not miss cnbc election night coverage, 7:00 eastern time, there is our special election coverage. i want to show you jersey city, new jersey, you are seeing a snakeing line of voters weight at the polls in a fire house in jersey city t. major candidates have already voted. there are some voters waiting in a line. we seen pictures of long lines as people get out to vote. sheer what else is coming up on the halftime report. as america votes, several big namestop stocks are moving, gap, priceline, all seeing double digit or near double digit moves today. we'll hit it all in the blitz next. and what will the next president need for commodities, gold, oil,
copper? find out more with scott wapner in the game, two minutes away. elusive today. re is it because so many go after it the same way? 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 mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle. and it keeps my investments fully mobile... even when i'm on the move. sign up at etrade.com and get up to six hundred dollars.
i am a first responder tor and i'emergencies 24 hours a day, everyday of the year. my children and my family are on my mind when i'm working all the time. my neighbors are here, my friends and family live here, so it's important for me to respond as quickly as possible and get the power back on. it's an amazing feeling turning those lights back on. be informed about outages in your area. sign up for outage alerts at pge.com/outagealerts. together, we're building a better california. >> all right. it's time for the trader blitz, gap beating sales for the second month in a row, jeffreys reiterates its price target. >> look at all these upgrades. >> people don't like this name. and that name is what i talked about very quickly.
it's not a joke. this should be old navy. it should not be gap anymore. old navy is what people concentrate on. i think you not only need to change their direction but change their name. >> a tool price line. third quarter guidance, though, below estimate. doesn't matter. stocks up 7%. >> the consumer preference really on the back of some of those experiences. the experiences more so that occur in this environment. >> wow, some out there have to lower their price targets. the sell rating 29 price target on this one. that's the wrong ticker. looking at htz if we can put that up. it's around 40%. >> don't get excited about that, depreciation costs are the real problem for this company. in the depth mark, wow. there was a dead market in september. those bonds are already being marked down five cents. that's a rough take to those
stepped up with that bond offering, bond and equity. stay with that. >> if you want to take a look at valeant? getting hammered. >> nobody wants valeant. down 28% i think i saw. >> it got down below some of the levels last week before it had that 20% bounceback. they said revenue next year will be much, much lower. ebitda much borough. it wasn't kitchen syncing as far as any of them. that's why it came off the bottom there. >> yes. cvs, this is a double digit mover as well down 10%. >> they miss on sales, they lower their guidance, they plan on losing market share to walgreens. we know the contracts they lost was to walgreens. i was buying walgreens that stock was coming at the open. now only down to about two. i like what they're doing.
i think they need rite aid for the stock to work. however, down 33%. you have to start looking at that. >> i will buy cvs this afternoon. >> the problems aren't going away, down 33% from the high, worth looking at. >> commodities in the election, where can we see the most volatility tomorrow? are there areas you should buy today? one up 25% this year, no one analyst said it is time to sell. that's our call of the day. it's coming up next.
♪ today, we're seeing new technologies make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement with innovative platforms and solutions. our population's growing healthcare needs present growing opportunities for our clients: to advance the future of medicine with digital, and improve the quality of lives. ♪
there you go, that's where we stand on the street, highs of the day on this election day after yesterday's two-plus percent rally, backing it up at this hour. that's two-thirds of 1%. nasdaq is the strongest today. it is approaching 1% gain, all sectors in the green today led by health care and consumer discretionary. sue. >> hi, scotty. here's what's happening at this hour, donald trump arriveing at
his new york polling place earlier to capture his presidential election. joining him is his wife melania and daughter ivamping ka. germany arrested five men on allegations they aided an isis group to provide analyst logistical help. they call it an important proceed to german. allowing the u.s. bought the to appeal a high court ruling that parliament must give approval before the process of leaving the union can begin. it's set aside december 5th through 8th to hear that appeal afternoon. a chaos in a sing hole in journal japan. look at that, that's amateur video which captured the moment it swallowed a five-lane road no, injuries, but you can
>> all right, tike a look at crude oil hovering below $45, how could the election impact foil? we have more for us, jacqui. >> good afternoon, crude oil getting crushed, down nine in the last 12 sessions. what are the key levels you are watching, given the fact we are trading about 45 right now? >> it definitely is the $45 level. that's what i'm watching right now, if he win, he promised a key bearish oil in this environment. hillary is not a fan of fossil fuel. i see no regulation oil foes higher eventually if she wins. >> trump nation, trump, clinton,
we will get an answer tomorrow. what are you doing with crude oil? >> i think there is an asymmetry of likely payoffs here. if trump were to win, i think it would be bad for crude oil, unless the dollar collapses as well. there is a potential to make money here, if hillary would win, it would be business as usual, particularly what the opec secretary general had to say about their needs to reach a deal later this month. >> all right. for more, we bought the the show at the top of the hour. we're talking to scott wren of wells far go. you don't want to miss it. back to you. >> we'll be there. copper highest since march, what are we doing? >> going long on the stocks. i am overweight energy. i think are you in the trading range 40-to-50 for a bit of time.
we have to get to the opec decision i do think 2017 supply and depan balance levels itself out. demand actually starts to improve, especially given all the global stimulus. i think that's why commodities like copper, steam, that's what they're telling you. i am actually long some of the steel names, u.s. steel is one of my favorites. >> doc, you got out yesterday. >> yes, they were flipping so hard that it didn't seem we were seeing enough. if i wanted to express something through the elex i'd rather do it through the vix or s&p or the vsx that was trading yesterday, i think those would be better ways to express that. >> you said the other day you thought trump was going to win. >> still do. still do. we'll see. i think the reaction we are seeing in the market here is that down balance we talked about. we'll see.
we got what nine more hours before we get most of the poll information starting. >> you think gold goes higher if trump wins? >> yes. >> yes. yes. >> why'd you sell it? because i'm both investing based on my gut and investing based on what i see as far as volumes of trade. there was nobody in there buying gold stocks yesterday, if that's the case, i'm going to follow them. >> the market was up 2.2%. that tells you a little something. doesn't it? we are geared up for a big night of election coverage on thison . >> of course, you see this on a daily basis. this will be one of the hubs for all the information that all of our viewers, traders and up advisors will want to digest in terms of the election tonight.
starting at 7:00 p.m. eastern, a lot of things you will see are feeds coming in. local news from all of these battleground state, we have a handful of partners among the dozens of news knows we will have. you have news 3 out in ohio, wpxe in pittsburgh. wcnc, charlotte north carolina in orlando, florida, sanl, iowa. news 13, news 9 in colorado. all of these guys are a part of a big overall picture we will see here. this is just a sampling of again the dozens of news feeds we will be monitoring. so when you tune into cnbc tonight, will you not have to turn the channel at all. if there is anything that happens, at any of these local markets, any concession speech, a statement from a sitting senator or congress person, anything that could change or reflect a decision in the marketplace, we're going to change the channel for you.
in other words, we'll bring you a live look at that action, because we're a part of this nbc universal network. a big night. it all start right here on this set where you guys are sitting right now. back over to you. >> tom chu, thank you so much. best buy shares are surging. now, they say get out, it's time to sell. one of our translateders disagrees and says the the rally isn't ever. it's our call of the day. first, brian sullivan is in ohio for us with a look at what's coming up on "power lunch." >> hey, scott, no to the see the election zone coverage, 18 electoral votes up for grab in ohio. ohio has picked every president in the last 120 years, except for two, so we are going to get all you into ed to know on the pulse of the ground. marcus le monis "the prophet" will join us on his view on the election, voting, no doubt, he
has a lot of bes in ohio. it's all over this market ramally t. dow up more than 100 points, but there is a couple of stocks that are dropping. the markets, your money, your vote. double days here in ohio we will be back with more of the power lunch, halftime report happened after this. >> the "halftime" report" is the money market interviews. >> the great china real estate bubble has not happened yet. >> i turned negative on most assets in july. >> we will be in the doldrums of low growth environment, global savings and low interest rates. >> the most profitable hour of the trading day. >> it hasn't worked. >> weekdays at noon eastern.
today after ever core ground graded it to a cell. cyclical head winds could get tougher next year. dr. foley disagreed. >> completely disagreed. from the food traffic as well as the surrounding channel, i think they're hitting the ball hard. i think the iphone 7, the some of the pr devices people are going in for, even though they specifically talked about virtual reality not being a significant driver. everybody is going down on those units best buy doesn't make them, brings more people in to buy things. >> they're not arguing, the problem is, they're going in for smartphones and away from traditional consumer electronics. >> we'll see. i don't blame isi for taking a profit here, judge, more or less
that's the way i viewed their note. i zoed they were talking profits on a nice call, boy, they're out on a limb as everyone else is on the side of this one. from a constrar 81 side point, people are going in, buying a lot, not a little. it's not just that phone, it's the prifr rals, of course you got to have a new design. >> bigger margins, tvs, they say they're looking to flat to slightly down market after growing three consecutive years. >> this is where these reports are difficult for the viewers. you have a stock in the last year that's gone from 28 to stlath. have you too acknowledge there is a fundamental turn. there is a tail wind, otherwise the stock doesn't go from twice to 38. they were at a who el the entire time from 25 to 38.
now it's at 38. watching the show, you don't go sell this stock. you might go in. you might get some protection on this stock. you might put a stop in on the stock. you don't sell the stock. this is a stock that very easily could break out of a long return resistance level at 40. now everyone comes surging into it. so i have a problem with the note, itself. >> you could get special circumstances here, so game stop gave a profit warning that cut their outlook. they're dog read through to best buy. >> best buy is fit bit and go pro mentioned on their recent calls they suggest a lift they got last year is going to disappear. >> game stock, fit bit, go pro, nowhere near the best buy product model is. >> i think you need a strong story.
they've done a good job in terms of clothing stores, getting the markets up. really kind of improving and taking some of the low-hanging fruit. just getting a little better on execution to go materially higher 23r here, that 27 as joe mentioned year-to-date not particularly expensive. i think you need a big product cycle. i don't think you get it. >> in terms of the consumer, you believe this that? >> it's difficult to say head winds against the consumer stock, consumer stocks are growing at a rate. people go by, you take them and put them in, as well as, we are saying there is a secular 50 away. they have the internet presence very well covered. the cyclical head winds for the
consumer. >> up next the one investment he says will go down no matter who wins the election t. dow's high of the day. just off. still up 115, halftime report back right after this. ♪ ♪ ♪ is it a force of nature? or a sales event? the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event. (bing)
report. john has some unusual "options action" move today. >> you said transport, judge, it's kansas city saw that. this one getting a lot of love. stock has come off basically from the august levels just over $100 bucks, just over 102 or so a share. it got down beneath nirnt. now it's making a surge in the upside. stocks came in by the 95 calls. these calls, they basically came for them, have driven them up from about the 160 level today up to now $2.40. i bought these calls again the biggest chunk was between 163 and $1 fine 70. these are calls until december. saw two-to-three weeks, judge. i like the upside. i think the transports really work into the end of the year. that's why they will be buying these. >> partly an election play.
totally. cramer has been all over this name. >> yes, he has. >> for the last many days. >> josh brown and i talked about this in the commercial break. jim as well. kansascy southern if i'm not mistaken, this comes from john, i believe half of its revenue arrived from mexico. that was at the heart of the cramer thieves. >> so clearly. >> you would think it's working. >> you are bullish on the rails? >> i like ksu. >> norfolk southern. >> the biggest story is volumes are going better. it's going to look very good. they're not expensive. >> just hours left in the 2016 race. they are focused on one investment that won't see a healthy hand from either candidate, emerging markets. you think ems go down no matter
what happens? >> i think selective markets, generally, we're going to see a return to people focusing back on what's driving markets. s that u.s. double liquidity conditions. feds are raising interest rates. that's our view. >> is that the biggest reason you are negative? any time there is a hint or a backup of significance, rates, ems are the first thing? >> ems, higher credit. when interest rates come up, a lot of the emerging markets rely on they pull out of the markets. 15 years has been this u.s. dollars flowing into emerging markets. we will do well. it's really about country allocation and merge markets. generally, they're going to be under pressure as that liquidity
comes out of the system. china has just gone through the biggest fiscal and monetary expansion package. from 2015 to september of this year. they are moving to tightening and the fiscal easing is start to go phase. you are going to see, a lot of those commodities come back they come back in a big way. >> you are absolutely right. >> that's the reason copper has been off to the races. we had this conversation last year. are they going to begin the process once ago of deappreciatiateing their u.s. currency? i think that's something that's going to stand out early in 2007. >> they have begun deappreciatiateing. you have seen that occur as well as that, you are saying massive
capital outflows. it's not easing, they're tightening now that timing and capital outflows, that's a massive tightening on the economy coming on the back of a very large expansion package. >> that will and turkey has to drag with the ems. >> we have been short turkey for the better part of this year. we can see it is an economy which hasn't undertaken the chakra reform. that's one of the which economies -- >> and unlikely to get any outside investment. >> no. not with this political uncertainty. certain emerging market economies will do well, like india, eastern europe will do well, a flow from the ecb stimulus as well. but this isn't the environment you want to be in emerging market oz or xhs or commodities. >> do you agree with this? >> this is great macro analysis.
i agree with what he's saying. >> stay away from the emerging markets? >> i think what he's defining too brings it back to the united states. i think you would agree and most of us on this desk would agree, the u.s. dollar, if we have the formation it looks like we're going to have, the u.s. dollar, the susceptibility would be it for it to continue to appreciate. the economy is improving, if rates go up, the dollar is going up. >> that's where we go back to the conversation, do you want to own the market or sectors in the market? i think that's when's important. tell me which companies in a rising dollar environment are going to do okay, because a year ago, we were talking about -- >> didn't you say to own tech? >> i did say to own technology. >> the rising dollar hurts -- >> on the balance sheet, cash on balance sheet, i think they can understand the margin compression, they can go out and do deals. other sectors, i don't think they can withstand the rising dollar. i think that will contract margins like it did at the end of 2015. don't own the market, rising dollar, the environment you're describing, which sectors are going to be --
>> you said industrials too. >> you got a rising dollar. >> i don't know if you -- you could have a strong dollar. you could have a firm dollar, but if it doesn't go up 15% like it did last year, i think commodities as long as demand starts to improve, commodities can hold their own. so i'm not negative on -- i'm not playing em, i have international companies with exposure there. i would not change my strategy on that. but i do think that commodities, some of the energy stocks are extremely well run and they have great cost structures, hammered. and they're going to make money at $40 to $50 oil. i think you have to look for some bargains within energy, and as i said before, i think steel makes sense. i don't think that china is going to let their economy tank by any stretch of the imagination. they haven't yet. and they're not going to. i also think the consumer in chinia is far better off than they have been and that's going to be the positive story in china. >> all right. seema mody has a market flash for us. >> let's continue the discussion around emerging markets and currencies. mexican peso hitting a two-month
high against the u.s. dollar, suggesting that investor appetite for riskier assets is potentially improving. mexico is considered most vulnerable to trump's trade policies as 08% of the exports go to the united states. banks are warning clients to brace for volatile currency markets in the aftermath of the presidential election. and, according to reuters, goldman sachs told clients on monday it would not accept new stock loss orders on the peso until further notice. scott? >> seema, thanks. >> talk about volatility, judge. as we have for the last several weeks, this is volatility on steroids. the peso. because it is just a surrogate for trump is doing well or trump is not doing well. up or down. and right now the peso being sold off as aggressively as it is, and with fx traders being nervous about that, goldman recognizing that today by basically saying they're not accepting those stop orders. >> that's the dollar peso. the peso was spiking, that's --
the dollar is moving lower. not the peso selling. >> right. the peso is gaining strength because of the perception that hillary clinton -- >> wanted to make sure we were clear. three hours s ts to close. final trades are next. uit of he. it begins from the second we're born. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company optum powers modern healthcare by connecting every part of it. so while the world keeps searching for healthier we're here to make healthier happen. what powers the digital world? communication. like centurylink's broadband network that gives 35,000 fans a cutting edge game experience.
or the network that keeps a leading hotel chain's guests connected at work, and at play. or the it platform that powers millions of ecards every day for one of the largest greeting card companies. businesses count on communication, and communication counts on centurylink. my dad gave me you know.ares, he ran that company. i get it. but you know i think you own too much. gotta manage your risk. an honest opinion is how edward jones makes sense of investing.
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! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade
all right, we're back, want to talk about the banks. because they are one of the more volatile sectors depending on what happens with interest rates, maybe what happens with the election, if you're talking about regulation. citi with a new note today, they downgrade key bank. they downgrade goldman sachs. and they downgrade citizens financial, those are all to neutral. they keep buy ratings on wells bank and ntb. what do we think? >> i think i'm going to upgrade bbt regions financials and usb because that's what i'm long. i'm staying with them. they're working. i believe in the turn in at sth asset management business. i believe in senator charles schumer. i think he'll stand in the way of any further regulation. >> i get why they're taking profits, up 20% from the lows, but still very cheap. some are under tangible value still so the valuations are still there. i get the call. but if you like bank of america,
goldman sachs is also going up. they trade as a group. it may lag, but i don't think it will, i think you're having capital markets activity and m&a better and pipeline is very strong. it is still very attractive. i get the call, i just don't think it is going to work. >> you own wells. >> we do. we like regional banks, three reasons, number one, the economy is improving which will mean nonperforming ones stay low and top line growth will improve. number two, we are seeing that interest rates are moving up, steepening yield curve is positive for regional banks and banks more generally. number three, valuations. you can get 3% plus dividend yields on some names trading below tangible book value. this is a sector we want to be in. we're in it long already. we're happy to be there. >> you're making a bet that the democrats win the senate. is that what you're talking about? >> no, my expectation is that senator warren is not going to be able to enact a lot of the things that she's talked about. i think senator schumer is far more moderate when standard her
way. >> we have more than one minute to go. doc, how is the market going to look tomorrow morning? >> well, if we get -- >> how is the market going to look tomorrow morning? you think about it a little more. >> i'm just focused on fundamentals. i want this behind me. i want to be able to know what i should know and what i'm going to do and react and valuations makes sense and fundamentals are strong and i'm picking a whole bunch of different stocks, given a bunch of stocks this week. one name i like a lot, mgm grande. they had a great quarter. numbers going higher. las vegas is on fire. so anybody that thinks that consumers are dead, that's not the case. not in gaming. and they actually outperform las vegas sands and wynn so that's the name i'm focused on. >> a couple of months ago i said most of america will enjoy the election watching like here on cnbc, but also enjoying it on twitter. and i truly believe this is the moment for twitter, once this election passes, boy, go get a deal done now, because after this election, i don't know exactly what people on twitter
are going to be following. >> yeah. don't forget our election coverage begins, our special coverage begins tonight at 7:00 p.m. only on cnbc. stocks right now are at the highs of the day, the dow jones industrial average up more than 130 points. there you go. "power lunch" picks up the story right now. i'm melissa lee. here's what's on the menu. it is finally here. millions across america heading to the polls to elect the next president of the united states of america. we're live in the battleground states. and beyond the election, what investors need to watch in the days and months after today. and disaster du jour, shares of this household name tanking 15% right now. "power lunch" starts right now. ♪ go big or go home go big or go home ♪ >> and welcome to "power lunch." i'm michelle caruso-cabrera. investors building on monday's euphoria. stocks pushing