tv Fast Money Halftime Report CNBC November 10, 2016 12:00pm-1:01pm EST
helps credit card payments and some of those other yields but mortgages are priced on the ten year. that goes up, they make more money. >> ten year, by the way, which hit 209, the highest since january 2015. disney tonight, let's get back to headquarters and "the half." and welcome to "the halftime report." i'm scott wapner. why stocks are staging a big reversal this hour. the big names in tech that are falling and what it means for your money this hour. with us today joe it terranova, the brothers najarian. stocks opened at all-time highs boost ed by the financials and health care. tech, though, is rolling over. you can see it towards the bottom of your list down as a sector by 2%. it is taking some very big names, pete, with it. the chips are down. microsoft is down. and money is just going into other places post donald trump's
election. what do you do here? >> the rotation in the financials and i think you can stick with those. yesterday i took off a lot of the financial positions, took off a few more today. scott, when you look at what's going on now, howard ludnick was on last night talking about how regulations, if those were put down a little bit, a little bit softer, druckenmiller again said exactly the same thing. if that's the case, that means the financials have room to run and there's plenty of room. there might be even more room. the paper we have been seeing flowing in there, 95,000 bank of america calls were bought yesterday midday, scott. and then sudden ly they come in today for the xlf. they've been coming in for almost anything financial. e trade was just a few days ago. they continue to come in for those. when i say they, i mean those with big, big, deep pockets coming in saying the financials are going high. >> is this a play out of tech into more cyclical, more value areas, if you will, industrials, materials, energy, the areas where money is coming out of and
going into? >> it's a little bit of that, scott, because in all cases unless people literally had just a ton of cash on the sideline, we hear that all the time. oh, there's so much cash on the sideline. to some extent and in some accounts there was. for an awful lot of folks you have to rotate out of something to buy something else. so what would you rotate out of with amazon screaming up to the levels it was at or facebook and some of these others? i bought amazon on that harsh sell-off today because it was down, what, 6% or 7%. i bought some there. flipped it. now i'm short at the 200-day moving average. i'm short puts. i'm not short amazon. i'm short putsigates me. they're looking around for do i want to stick with these or go where fixed income trading will be through the roof over with the banks where loan growth will be through the roof.
nothing focuses the mind like the gallows. if you have to borrow or refinance you're focused on the interest rates going up, judge. that it will be great for jpmorgan, bank america. >> it's rotation but it's a rotation not necessarily just from stock sector into other stock sector. it's rotation from fixed income from bonds into stocks. >> yep. >> and, by the way, scott, that actually makes it easier for investors who have had cash on the sidelines because they don't want to invest in bonds to invest in bonds. you go back and we were good 45 basis points lower on the ten year treasury. corporate and municipal bonds as well. people i advise i wouldn't tell them to buy bonds a month ago. now i'm telling them they can get into it at the three to four year duration. pick up that 1.5% to 2% tax-free municipal yield. >> we talked about high yield as an equity replace. we did that for a month on the
show. that is what you're seeing right now. you've seen a 40 basis point move. you've seen the u.s. dollar continue to rise. that is the specific reason why the register is being run right now in technology. that's it. when you look at technology as a sector, the earnings are fantastic, the opportunity and the vision for 2017 as it relates to m&a is fantastic. right now in the moment you're talking about not the market which i've been trying to emphasize over the last couple of days but you're talking about sectors. and when you look back to what you talked with pete about financials, they experience every tail wind collectively that they've been missing over the last five years. you're talking about the repeal of dol fiduciary, about less regulation, and while you're doing it, scott, you're lifting rates. that's absolutely incredibly bullish for financials in a sector where everyone is under invested.
>> this notion of sort of moving out of bonds and into stocks was one that stan druckenmiller addressed himself this morning on "squawk box." i want to talk about it. here is what he said. >> i basically have a large bet on economic growth. how do i do that? i'm short bonds globally. i'm short bonds, short italian bonds, i'm short u.s. bonds. that's all reflective of not some disaster with deficit but with stronger growth. >> the reason why he says he's out of gold. >> so what happened to negative rates? >> now he's short bubbles, as he said, bonds. we discussed whether donald trump was -- the election of donald trump would pop the bond bubble. steve weiss said yes. others, i believe, think the same thing it. a reflation trade and some of the trades you thought would work before are not. >> what donald trump has done is getting central bankers away from negative rate policy which
was the conversation collectively everywhere over the last six months. u.s. rates has lifted global yields and forcing what had been a safe haven, forcing ins institutions, large holdings of global bonds, forcing it out. okay, where is the cash going to go? where is the opportunity going to be? it's going to be industrials. it's going to be materials. it's going to be financials. and a little bit in health care. >> well, for more on rates let's bring in rick with black rock, the chief investment officer, joins us live from new york city. welcome. it's good to see you today. druckenmiller said rates are going up, going up a lot. i'm sure you heard about these comments. what do you think? where are rates going? what does it all mean? >> he's a smart guy. i would say there's a lot of efficacy in what he said. when people talk about bonds, i think the comments earlier were spot on. when people talk about bonds there's parts of the different curve. the fed is not changing tomorrow. it could evolve, certainly in
2018. the front end of the yield curve, we think there's money still in fixed income. one of the things the central banks have talked about we talked about on your show a couple weeks ago, financial transmission works through monetary policy into the banking system and now as you let rates elevate a little bit, rates are too low. you let them elevate, then you can create velocity and growth in the economy and there is truth to that. >> what about the comments on "squawk" from greenspan said yields were not at normal levels. he even sees the ten year moving to 4% or 4.5%. do you agree with comments like that? he's not saying overnight. >> i don't. i don't. i don't because there are a couple of things happening. while i do think the term structure of interest rates isn't right, and i do think the back end of the yield curve could elevate from where we are today, it's not taking into account we live in a global environment where the bid from international investors -- the u.s., by the way, is even cheaper than the rest of the world and we do see demand coming in from overseas.
do i think rates move up? we could see 2% ten year. do i think it could go up still a bit more? i do. we're not going back because of the growth paradigm we'll be better. it's not rampant and inflation is picking up but still not rampant. i think we could elevate from here for sure. >> you don't subscribe to this notion that if there is something that would finally topple the bopped bubble that donald trump's election is the catalyst a lot of people didn't foresee coming and now it's here? >> so i think there are a couple of things that are important. one, i think it's a lot of focus on the presidential election. you also have a congress that has shifted that allows you to actually do some things that people are reacting to today which i wouldn't disagree with the argument about how equities can benefit from that. i do disagree with the bubble dynamic because what has happened in the world today, the demand for income is so profound, the demand -- you saw it play out in stocks as well as bonds. the demand for income is still there. where do you find equilibrium,
interest rates can move up. front end and particularly yielding assets in it the front end that things like parts of the high-yield market, parts of the securitization market where there's real yield without a lot of are interest rate risk is where people will go. >> do you reject the notion out of hand of a bond bubble period? >> so i reject that it's a bubble. what i'm not rejecting is that term structure of interest rates has been held down, distorted too low, that we could elevate more from where we are today. i reject the concept. a bubble burst because of too much supply relative demand. heretofore it has greatly outclipsed the demand dynamic. >> wouldn't you say 50 basis points move in the ten-year treasury in one month is a tricking of a bubble, that's an enormous move. i think that's getting lost in this context of, well, will it go it further? it's already had a huge move. >> very fair point in that i think what people are starting to realize is long end are
interest rates have a lot of price sensitivity today because rates have been held so low, because you can create a price dynamic that is significant. if you think about it in context we're talking about a ten year, not an elevation of interest rates. a 2% ten year. >> we have to get started somewhere, right? >> i agree. and, by the way, do i think we can elevate more? yes. i would argue the point we are at today, we're too distorted low going back where we were two, three weeks ago, a month ago and now we're getting closer to equilibrium and will get closer to that as well. >> it depends what the definition of equilibrium really is. we'll talk to you soon. rick rieder. we do have jeffrey gundlach tomorrow. he called the election of donald trump. what all happens now in the markets with president elect trump.
tomorrow of double line. here is what else is coming up. >> financials on fire. will the rally we've seen following donald trump's victory last. one of the most followed analysts on the street joins us next. plus, bank of america thinks one dow stock is on the verge of a double digit rally. we debate our call of the day ahead. and shake shack on a tear following its earnings. are burgers back? the halftime report with scott wapner is back after this. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
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emerging markets are on the move and not in the positive direction today. >> this has been one of the most popular trades this year, scott, up about 12%, but you falling in today's trade under pressure and what i'm hearing speaking to different analysts and strategists who track the emerging markets what is in focus is president-elect donald trump's trade policies, the intention of these anti-trade policies potentially pressuring the relationship or redefining the relationship that washington has with trading partners specifically in asia. another topic in focus is tariffs. there has been in the past a proposed tariff by donald trump of 45% on chinese goods and some of the analysts say that could result in a significant decline in china gdp by as much as 4% talking about china, the world's second largest economy. a big slowdown there could, of course, have global ramifications.
we're seeing em under pressure. brazil down about 7%. the e it tf. the pay so, i should point out, still under pressure losing 8% today. another 2%. the big stand out here, scott, looking at emerging markets, the russian markets and the russian ruble and the prospect of stronger relations between the u.s., the united states and russia with trump in the white house. >> thank you, talking about emerging markets. what about this trade now? big, big, big reversal. >> the brazil trade in particular was down 5%, down 7%, then down 10% today. it's come back to being down just a little under 7% but that is just something that people overstayed their welcome there. they're going to be hitting the exits for days to come. it's not a one-day event. >> done with this trade? it no longer works? higher dollar? >> you have to make a distinction between emerging markets that will be developed markets like a china, like an india. >> the average -- >> no, no, this is important.
>> the average investor watching is not going to distinguish between -- or take the time to distinguish between one emerging market -- >> they should. >> people are invested in the eem. do you buy it or not? just tell me. >> no. >> no. >> no, you don't. >> that's what i'm getting at. it's the most heavily weighted in korea. the eem. you have to know what's in these etfs and if you want brazil you trade the ewz. like i say i'm stay iing away fm that one now, scott. >> that's the one down 7%. >> yep. >> financial stocks are on a tear rising nearly 10% in the past week coming off their best day in five years following the results of the election. for more let's bring in bank analyst mike mayo of clsa. good to see you. thanks for coming back. you raise d your price target o every single major financial institution after the election of donald trump. >> well, we've raised our price target several times this year since we were on your show in
the spring when the bank stocks were at a low. bank stocks are keyed up for outperformance. this is the end of a seven-year drought. seven years banks have been fighting head winds. >> if they're teed up what's the driver to continue that to put it way out in the fairway? >> well, the driver is you've had headwinds of rates, revenues and regulation and they're at an inflex point, a seven-year inflection point. you're going to see now if you have higher short-term rates that would be good. if you have higher long-term rates that would be good. regulatory relief. you have all three, the trifecta for banks and so you're at that inflex point. but what we are saying now, what we said on your show consistently this year, this is a structural breakout for this decade banks have been building up record capital. record liquidity. now with a pro-growth a administration you're going to see banks redeploy the excess capital. >> you want to comment on some of this fodder about jamie dimon and being at least even
considered if in fact he is for treasury? >> well, we also have a note on jpmorgan, as you know. we call jpmorgan the lebron james of banking because they have not only offense but also defense. and defense they've had incredible risk reduction that's under appreciated. now they should have some offense. >> is lebron james more about the rank and file or more about the score in the top office? >> it's absolutely both. i brought my lebron james bobble head. this is our symbol for jpmorgan. when it comes to jamie dimon for treasury secretary, if you could have lebron james on your team, you absolutely go for it. lebron james, it is jpmorgan as a firm but the top the firm could be considered -- >> do they have a dwyane wade? >> should have a tom brady. that's what you need. unlocking cash in the financial industry right now is the opportunity going to be there for m&a to finally happen now that banks are comfortable using
the cash? and who could be acquired? >> we've been on the show talking about comerica, the ceo has been in place for 14 years the stock has under performed. they're not fully optimized. since we went to the annual meeting they have taken additional steps to optimize but we still think comerica is a potential takeover target and with stock prices higher it makes it easier to pay the big premiums we saw in times past. >> can i take the other side for a second? donald trump, everybody is now all of a sudden in the blink of an eye dismissing a lot of the rhetoric that you heard on the campaign trail because of one speech that he gave at the hilton on election night. in donald trump's closing, his two-minute commercial at the very end of the campaign he mentioned financial institutions and he had a picture of lloyd blankfein in that ad. are we too quick to think that donald trump the campaign er is
not going to be donald trump the president? >> well, during the campaign -- >> the floodgates are open. you raised the price target on every single financial you cover. >> we were positive before. we're positive after. you have a republican senate, republican house, republican president. so i think for the banking industry you've avoided some scenarios that have been tougher from a bank regulatory standpoint. so we're certainly positive. now you said on the campaign trail, let's bring back eagle. this is the end of the financial crisis. the financial crisis finally ended november 8, 2016. you've gone now from bashing the banks to get votes with the electorate to facilitating economic growth. you can't always have it both ways. if you want growth, you're going to need banks to be your partner to lend more of that money. banks have built up $1 trillion of extra cash. $3 trillion of deposits. you want to put more of that money to work -- >> do you think dodd/frank gets
repealed? >> no but it's a matter of finalize roles and get on with it. >> do you think it will? alan greenspan said get rid of it. icahn with me said don't. what do you think happens? >> the difference between what i should think and will happen -- >> what do you think will happen? >> i think it will be tweaked. tweaked around the edges. the lack of piling on -- >> tweaked that it has a material impact on the banks' bottom lines? >> it's the absence of a negative. this entire decade the building up of regulation is done. >> judge, when we saw what was happening in wells fargo and some of the members of our panel mocked me for wells fargo and i said you buy this thing, you close your eyes and buy this thing. it's up 12%. >> blood was in the street. >> i said, everybody always says, warren buffett says buy when there's blood in the street. i guess today would be a day you'd sell some of these then because there is clearly greed in some of these names. but to mike's point, you look at a bank like wells fargo, unless
we were in the same regime and the same sort of scenario where you're seeing $10 billion, $14 billion fines rested out of these banks and the shareholders, by the way, instead you're seeing a regime that might be much more friendly to them, judge. that's why you're seeing these moves. by the he way, that stock, wells fargo, is up over 6% today on massive turnover. >> what about this notion that we -- whether we are or are not getting ahead of ourselves. >> we might be in the financial sector. the moves we're talking about -- >> the big picture is one thing. >> in the short term. >> in the stock moves themselves. >> these are big moves. take a look. i'm sure the producer can pull up citigroup. this is a huge move off the february low and over the last week. i want to talk to mike about this. it could be justified if, in your paradigm shift that there's a structural change afoot, these companies that have been in the penalty box are going back it to being valued on book value. you have a bank of america, 77%
of book value, you have citigroup, even in the insurance space, met life below book v value. does it ever come to a point, and is this that point where people say why don't i buy a dollar's worth of value for 80 cents? >> i couldn't disagree more with the one statement that banks have overreacted. i'm not talking about days or weeks. i'm talking over the next couple of years. compare to precrisis banks have more capital, more liquidity, stronger balance sheets. balance streets are the strong est in a generation yet you look at the price to earnings multiple. >> does it go to a premium of book value on those companies that are below. that would seem to be based on your argument an obvious call to make. >> well, relative to the risk reduction that's taking place, we think they're trading significantly below the historical price to book values so they're still trading below average when they have above average balance sheets and we think above average prospects compared to where they've been the last three years.
>> thanks for coming in. >> thanks for having me. >> can we keep the lebron -- >> bring another bobble head next time. that one is getting tired. steph curry. ever heard of him? >> lebron james, it's working. jpmorgan at an all time high here. >> the biotech bounce coming up, the second tosh posting its best day since '08. one fund manager, however, says that rally will not last. he'll tell us why coming up. plus, macy's and kohl's are rallying on the back of strong earnings. the retail trade in the blitz.
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welcome back to "the halftime report." shares of ibm are rallying, almost 3%. bank of america upgrades that stock to a buy. jimmy? >> yeah. >> a lot of techs rolling over? >> listen, i don't think you're going to lose money by buying ibm. i think you're a ways away from making money. the revenues keep going down. i read the analyst report. they're calling for a turn in 2017 but in my opinion why not wait to see that turn because you know what we've been waiting for three years to see the turn in revenue. there's no way to really say
that their core business has stopped declining enough that their really good businesses including watson, cloud computing and big data will take over. just wait. you're not going to miss anything. >> here is what cramer said. when i think of ibm, i think of negative revisions. when you google negative revisions and google comes up, maybe that's over. any other takers? >> why wouldn't you just wait and see until the turn occurs is it and auer getting a big sell-off in technology so there are other opportunities in the sector. you're getting apple on the cheap, microsoft, cisco. >> what about the fact what does the rising rate story potentially do to buybacks and stocks that are heavily reliant on buybacks? >> i think more importantly the tax reform and the repatriation and some of those aspects as well, scott. i look at some of the companies when you talk about the trillions of dollars that are overseas that could be a game changer and could be great for the economy here in the u.s. i think when you look at this
call on ibm it makes sense they're starting to turn the corner but the reality is i would rather be in the names and that's why i would be on the pause button with jimmy, the names already in the midst of a very strong transition. microsoft, cisco, intel it. those names are transitioning rapidly into growth. ibm is still slugging along. they have growth but they're really just slugging along right now. yes, they have cash flows and so forth. it's just not the same as microsoft. >> i would rather buy sales force on 3.5% decline, much rather with benioff. even though buffett has been patient with this one, scott, at some point you don't have a day like today, somebody like buffett is going to lose patience and this one he's still $36 under water on this trade. >> 12:30 or just there about on the east coast, where markets share now. it's been an interesting day on wall street. the dow is at the highs of the
day. the industrial stocks, the banks are helping the dow. 18,752, a gain of 160 points. s&p up by a point. it's the nasdaq that's been a really big story today. that's where the roll over really happened early on. nasdaq's at 5187 but a loss of 63 points amounting to more than 1%. nearly 1.25% for that pullback in tech-led nasdaq today. the latest headlines. here is what's happening this hour. the prime ministers of russia and israel pledging to join forces to tackle radical islam telling benjamin netanyahu that terrorism threats are real in a unique way adding russia also suffers from terror. dozens of protesters attempt to go block off the entrance to the european union headquarters in brussels where the annual european defense agency conference was taking place, the accuse the eu of subsidizing the weapons trade. mitsubishi is recalling two suv models to fix problems that could cause the windshield
wipers to malfunction. the recall covers 100,000 outlanders from 2007 to 2013 and 95,000 outlander sport vehicles from model years 2011 to 2015. thousands of trucks arriving to fill up a massive sinkhole in japan. workers rushing to fill the gaping hole that appeared suddenly earlier in the week devoured a five-lane intersection in the center of the city. your cnbc news update. back over to you. sinkholes are one of my biggest nightmares. it could happen anywhere anytime. you have to be ready. >> courtney, thanks. the one commodity that may have predicted a trump victory. plus, one tech stock up 85% over the past six months and the options market is betting that rally is just getting started. our man pete has that trade just ahead and as we head to break take a look at the heat map. we said the banks are doing well, yes, they are. jpmorgan. health care continues to do well. fizer is up. there's ibm. we're back. guys, what's happening here?
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with us of doubleline capital, the bond king, maybe the election king. he called the election, too. but we cannot wait until 12:40 p.m. eastern time tomorrow ex clues ive interview with jeffrey gundlach, get his take that donald trump was elected as he thought would happen, where rates go because they have been backing up, where the markets at large could go as well. we look forward to that tomorrow. health care is higher again today. biotechs coming off its best day since '08 following donald trump's surprise victory. we are joined by health care portfolio manager at esquared. thanks for coming in. this has been ripping since trump was elected. does it continue? >> it depends what sector. sorry to give you a nuanced answer. i think biotech runs into a headwind because a small mid because of higher interest rates. but pharma continues to go up because of repatriation and lots of other good stuff happening to pharma. >> do you go individual names?
if you say small to mid? >> we tend to when we are negative not to name names. on the pos it tiff sidpositive side, united health, big insurer. >> you don't like to upset people. >> we don't like to hurt people's feelings. >> do it. >> no, we're on television. again, we would use this as an excuse to trim in it biotech, using some of the options. >> like the ibb, for example -- >> yeah. our preference is xbi because it captures the smaller and mid. >> okay. >> i think you'll get a chance to buy them again in the spring. >> you would fade the rally? >> fadely. they're going to come back in the spring. you'll get your chance in the first quarter. >> you said fade the rally. are there names you would say, you know what, all the biotechs are not all the same so what names still have plenty of
upside? >> one that jumps out that we are sniffing around to build a bigger position is gilead. lots of cash. >> though they haven't made an acquisition? >> it's great that they haven't made an acquisition because valuations have come in. >> but their valuations come in as well. >> they'll be able to repatriate like a zillion dollars of cash if trump does what he says he's going to do. i think next year a good year for them. they have the ingredients there. we're just looking for the recipe. >> when you look at pharma and biotech, people were saying if you did get clinton it would be like '92 and stocks rallied hard from there. but you go back to the '90s and had big drugs coming out, viagra, vioxx, lipitor, there's no blockbuster come out. the only space that seems to have growth is oncology which is very crowded, alzheimer's has been a swamp for anyone who has
gone there. do you see any real signs of growth, new products that will change the world? >> changing the world immediately, no. to your point about oncology, we've had a revolution in immunology -- >> totally crowded. >> i agree with you. >> we're getting smarter about it. i think particularly there are some private companies coming public that you'll see interesting drugs. mid stage not late stage which is where you change the world. >> do you do medical devices, too? >> i do. >> what do you think about that space? >> we own a number of small -- they will probably be used as a source of funds going into the end of year because they have had such a fabulous return this year. in the long run they're not affected by obamacare so they should do better and the valuations aren't terrible. >> did i tee you up or what? >> that's the strategy i have had so far this year. i sold stryker yesterday. i still own tmo, perkin elmer i
believe reports this week -- i'm not sure if you cover that or own it -- that's a name i think pki would do well. >> i agree. you have to think about long term. i think this quarter will be choppy for the stocks. valuation is good. no obamacare exposure or lack thereof. new product cycles almost always work. >> thank you for coming in. i appreciate it. the brothers najarian are following the unusual ak it tift in the options market as they always do. the bullish moves they are seeing in two tech stocks up next. first, though, tyler mathison has a look at what's coming up on "power." coming up at the top of the hour on "power" i hope you'll join us -- stocks are rallying again. there goes my mike. just wait a minute, everybody. [ applause ]
big cap tech like amazon getting battered. what to do with this group post election, folks. jpmorgan's dimon considered for treasury secretary by the trump team. would he take the job? what a trump administration would look like. in the market for a new home? why now could be the last chance to lock in a low rate. "the halftime report" is back after this. and it will be a lot smoother. 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, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out
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i want to take a look at copper. it is surging to its highest level since july of 2015. cnbc's jackie deangelis with the futures now traders. >> good afternoon to you, scott. big moves in copper since we found out the results from the election. a trump administration would spend more on infrastructure. do you think copper could continue to climb high er from here even though it's made a dramatic move? >> 16-month high. 4% each so i think there is an exaggeration. there's a long time between now and january 20th. it may be overdone short term. >> what are the levels we should be watching in the copper trade? >> copper had strength before the election. i think now that it's broken out of this long-term down trend.
>> we'll talk more about the markets post election. we have sven henrich. >> thank you so much. something unusual happening in chip stocks today. jon and pete. >> this is a stock that's been on a nice move. from the low end way down here in the middle of summer up to where it is now. i think we're seeing a january 37 call being bought. the volume on the day is about normal but that volume puts it into a 50-1 trading versus puts right now so very aggressive on the call side. a lot of buying, scott. can it break through to the upside? we had rich on this show actually just a couple of weeks ago talking about that stock, talking about the margins. i think it's going higher.
>> i have a chip equipment maker. applied materials, judge. it's trading down today like pete says about 3%. so what do they do? people were coming in buying the 27 calls, not selling them. buying the 27 calls but way out in april, judge. so what did i do? i bought the 27 calls along with them and sold 30 against. i got this one probably for a month or more, judge. i like the upside from here. it tests 3107. we see if we break through early. >> i'd like to get comments from you on tech and where we started the show, and techs in general or not. >> well, yes, but it depend on which area.
something like micron which had a very big rally i think is a good place to take profits. qualcomm got downgraded by morgan stanley and it's well off its 52-week high. so really whether it's the chips or the tech sector, there are plenty of stocks to sell. >> that money can come back again because technology to draw the mopey out. >> it was exactly what nelson pelts said on the show yesterday and you talked about it before. the market is treating him seriously, however. i thought those were great words to categorize. >> let me stop you here. video now of this meeting today between president-elect donald trump and president obama.
they talked about a wide range of issues. >> some of the organizational issues in setting up the white house, we talked about foreign policy, we talked about -- and, as i said last night my number one priority in the coming two months is to try to facilitate a transition that ensures our president-elect is successful. and i have been very encouraged by the interest in president-elect trump's wanting to work with my team around many of the issues that this great country faces. and i believe that it is important for all of us regardless of party and
regardless of political presences to come together, work together, and deal with the many challenges we face. michelle has had a chance to greet the incoming lady. we had an excellent conversation with her. we want them to feel welcome as they prepare to make this transition. most of all i want to emphasize to you as president-elect we now are going to want to do everything we can to help you succeed because if you succeed them the country succeeds. >> thank you very much, president obama. this would last 10-15 minutes. we had never met each other.
it could have gone in for a lot longer. we really discussed a lot of different situations, some wonderful and some difficulties. i look forward to dealing with the president in the future including council. some of great things have been achieved. it was a great honor being with you and i look forward to being with you many more times in the future. thank you, sir. >> thank you, everybody. we are not going to be taking any questions. thank you, guys. thank you. >> it's always the last one. >> come on, guys. >> all right.
that is the president of the united states, the president-elect of the united states, donald trump. their very first meeting, donald trump's trip to the white house. john, this is what our democracy is all about, of course. awkward for sure, but i think the country watching that tape has got to be reassured by how that meeting between president obama and president-elect trump. there was no anchor. it's striking as they indicated that this was their first meeting. they had a troubled history with the birther issue, donald trump questioning his legitimacy.
that shows you the strength right there of the constitutional system. that president obama is in keeping with it and donald trump is in the same spirit. we hope the next two months go as smoothly as this morning did. >> it really understand scores why the market stage they did after election day which became election morning and continued today, a sense of calm, maybe even relief among investors that some of the things we heard from donald trump on the campaign trail may not be the same types of things we either hear or that he does in the oval office. >> reporter: that is completely true. we don't know. again, you and i have discussed this before. given the many things that donald trump has said about issues on one side or the other side either in the campaign or over the years, we don't know what he values most, what he's going to prioritize, and so i
think there is some relief at the idea that the things that are feared the most may not materialize. i think there's relief that the rancor of the campaign has gi n givenwgiven way to this moment. and the smoothness of this moment. make no mistake, it's going to be very difficult. this is a president-elect that is going to undo what the current president values the most. nen nevertheless, i think president obama may seem to influence it and if he doesn't, in ways that's very important to the success of the united states. >> john, thanks. john harwood on the north lawn of the white house. we're back with this with final trades from the gang. opportunities aren't always obvious. sometimes they just drop in.
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partner with pgim the global investment management businesses of prudential. . all right. welcome back. i want to show you the market. you can call it a trump rally. dow is up 195 points. and, guys, that clearly is what this is. this is the trump rally. >> whether you're talking about taxes or repatriation. there's no doubt about it, scott. you look at what's leading. financials, health care. things under possibility police clinton. all of a sudden you've got trump. >> look at what the banks are doing, industrial stocks, the higher growth areas. if you think there's going to be a large infrastructure trade, focus, energy is in focus.
oils are down. you talk about areas that people seem to be perhaps more optimistic about, joe. >> i also think a lot of it is people getting turned around. there was a lot of short selling in the overnight markets obviously on tuesday evening. i think yesterday people sold in to the rally. i think they thought they would get a pullback. the market continues to move up. sectors that were very strong yesterday and people were talking about selling, you're seeing people come in and buying those sectors today. >> remember they thought the market was going to go up no matter who won. earnings were improving, the economy was improving, and maybe that's being borne out now. maybe people thought hillary clinton's election was going to be the thing that set the markets in motion. maybe people missed the fact that donald trump and the policies he put in place would be a positive for the stockmarket. >> if that's the case, there's one sector.
>> more than their earnings, their prognostication going forward is that growth is picking up. consumption is at 17% gdp. that would be very positive for the u.s. company. >> the srt, which we're talking about hehere. >> no doubt. good stuff. thanks for watching. "power lunch" begins now. >> welcome to "power lunch." here's what's on the rally. you've got financials flying while technology tanks. we're going to find out why and why you should be investing in this new political world. plus donald trump says he's pro oil, but does that make oil stocks an automatic buy or maybe an automatic sell? hmm. listen up all you homeowners and buyers. right now could be the last chance to lock in the low mortgage rates, so sign the check. a busy "power lunch" starts right now.