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tv   Fast Money Halftime Report  CNBC  December 15, 2016 12:00pm-1:01pm EST

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that is a stunning chart right there. you point out that a lot of those best performers weren't in the dow since 20k. we traded at&t, alcoa, hp, bank of america for apple, goldman, united health, visa, nike -- it's a changed index for sure. >> that's for sure. >> all right. let's send it over to scott wapner in the house with "the halftime" crew. all right, guys, thanks so much. welcome to "the halftime report." i'm scott wapner live at the new york stock exchange. our top trade this hour, the rally and the risks. stocks resuming their climb today led by the banks which are getting a boost from higher interest rates that leads to our question today, can yields in stocks keep rising together, or does something have to give eventually as the dow creeps to 20,000. doc, it looked like it was going to get there earlier and then sort of hit the pause button, with which still seems to want to go higher. >> yeah, and the two things that
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it seems are just written in stone, judge, you fade whatever the fed -- whatever movement you get out of the fed day, you fade that. we were down 130 yesterday. if you would have faded it, boy, did you have a nice comeback today. to your point, moving up 150, 160 points, looked like it could overtake 20,000. the same sort of thing, the pullback, we'll see if the pullback in the bonds because that is one of the things that we and jeff have cited over and over again, if we blow right through 260 and head to three in a hurry we're not set up for that. >> europe at 260 but 80 points away from dow 20,000. josh, you have 31 new highs, bank of america, goldman, jpmorgan -- the banks just continue to rip. >> the same stocks that got us here. one of the things you'll hear a lot about now is the dollar, and overnight obviously things got a little bit dramatic. now we're talking about euro parity. what will help listeners and
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viewers navigate that conversation as it develops which is there is no signal contained whatsoever for the overall market in the dollar versus the s&p. you look at correlation right now, 30-decor relation, almost perfectly correlated. in april that was negative 0.9. almost perfectly inversely. this relationship between the dollar and stocks is not something that you want to build a whole edifice on top of. some companies, foreign portfolios on hedge, et cetera, have a lot more exposure than others and works out to be a wash f. we see corporate executives start to use it as an excuse to sandbag earnings, that's fine. it's important that we don't get carried away. >> pete, we try to help people make money but we're not naive to the risks that may be out there whether it's higher rates. doc mentions 260 to get closer to three, what happens? does the fed move faster?
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are people too optimistic on earnings because of the trump agenda being passed so easily and leading to a better economic environment? >> are people that concerned or are people looking at it right now and it's them or is it the companies themselves? how about prudential today coming out 2017 forecast was absolutely incredible if you had an opportunity to see that. you look at the financials. i still think there's plenty of room. we said it before and i'll say it again, i'll say it again, i'll say it again. they killed it last quarter, right? they killed it last quarter. the numbers were very impressive year over year, you go across every metric that was stronger and you now we have another quarter where they probably put that together again, scott. so going into the next earnings psy cycle i look for the financials to continue to move to the upside because of this. >> joe, give me a read on where we are, where you think we go? >> no reason to sell. think about the marginal tax rate remains high. you know it will be lower. why would you sell into that? the cost of funding, achieving
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and getting debt, getting that capital to go out and do r&d, m&a, there's no reason to sell. everyone on this desk has talked about it this massive institutional shift where we are going from underweight financials for many years now trying to get them towards overweight. >> i get the whole idea no reason to sell with but what about the impetus to keep buying and if you do believe that people should be putting new money to work in the market, where do you do it? >> my personal belief you have to think globally. when i look at starting valuations and the effect that has over time, scott, i don't think you're going to get your goals met with a pure s&p 500 large cap u.s. stock portfolio. em stocks you can buy at a 15 with a good dividend yield, understanding volatility will be higher. but that the dollar story is probably overblown. even in europe, european banks
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at 11-month highs. almost nobody owns these things in the u.s. >> euro dollar goes below 104, the pound at 124. >> you have to be creative. if you think what's just gone on in the last five years, 15% annualized returns is going to continue for the next five years. that would be ahistorical to put it lightly. >> the euro going lower is what europe needs at this point. i think in 2017 people come back to japan. i think a lot of the rhetoric surrounding retaliatory tariffs actually favors japan. don't forget in the emerging markets about india that was kind of forgotten about the last year. you're seeing strength. their gdp is better than the chinese gdp. that's a source of opportunity. >> all of these are good points. are we at some level exhausting our buying opportunities here in the u.s., and you need, as josh says, to start looking else with where? >> if you're in the financials, if you're in technology and you have growth and you have the fundamental story behind you, no, it's not exhausted.
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i think there's still that upside. obviously some things get overheated, get pushed to the down side. health care has been pushed to the down side. that's probably some of the better opportunities. but when you really look at what's driving -- >> i agree with that. >> you look at the financials, scott, what are they trading at mao? >> what are the pes in the financials overall? 13. very low. and you're getting some yield, and you have growth coming in front of that, and you have the fixed income side of it. all of this is building up for those and, by the way, you protect your portfolio. always protect. you talk about new, fresh money going in. protect the portfolios when you have a vix under 13,000. >> the discretionary trade, too, has worked phenomenally will continue to work so today i'm seeing unusual activity in carnival cruise lines, ccl. that's not a small ticket item. a lot of the airline stocks we've talked about over and over again, american airlines, delta. >> united southwest new highs today. >> that's because people feel a little more optimistic. they have a little more in their pocket. they're hoping they're going to
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have more next year to everybody's point about the tax cuts and things like that. >> you're hitting good points, you're making -- you're helping ask the same questions that we've been asking about these risks. i mean, okay, we've already put money back into consumers' pockets with the tax cut that hasn't happened yet. we've improved earnings with a corporate tax cut that hasn't happened yet. are we getting ahead of ourselves? >> they've been saving for the last 7 1/2 years, judge. they haven't been spending. so supply and demand still drives markets. we had an over supply -- everybody chasing into the yield and they pushed along with the federal government, the fed, pushed the rates down to zero because there was a flood of money in there. so if they're all saving, now they're starting to pull some of that out, that can go it on for a lot longer than just a couple weeks. >> optimism is very difficult to measure in terms of what value you place on it. and optimism is clearly what is driving things here the last couple of weeks. >> i'll tell you where optimism
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is measured, the biggest five weeks since 1900. >> correct. you also have right now cfos and coos looking at what they're going to have in terms of tax reform, ability to go out and spend. what do they do with the capital is still cheap. do they do the acquisitions? do they do r&d? that's a source of opportunity look iing forward. you can't really mess europe the optimism. the one thing you can do is understand that it is by no means an incentive to sell. >> people expect more m&a. if you get repatriation you get more buybacks along with some of the stimulus initiatives. maybe spending picks up again. >> unfortunately, buybacks don't add to jobs, don't help wages rise, don't do anything for households. >> m&a is not good for jobs or the overall economy. you would hope. you would hope we do something different than after the bush tax cut and instead of just buy
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back more shares and raise dividends we put the money to work constructively. there are a ton of possibilities but it's hard to tell which way we go. >> you look at what areas or what specific stocks you want to put your money in and then ne needham says it's their top pick. it could have been a stock out of favor, was now this new love of people's. no, they go right back to apple. >> we have the ten-year versery of the iphone. why this analyst is talk iing about the idea this is one of the companies that performs better. you look it at the idea of the pipeline in front of themselves and they continue to be sticky. i know you scoffed at this for a while but it was the second largest revenue. that's where the growth will be
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and will continue. >> i didn't scoff. i think you did. >> some of the tech stops pulled back. >> you were a scoffer, man. you scoffed. >> i said the services revenue will be very big for apple. oh, it's only a small percentage. so what. that's where the growth is. that's why we love microsoft, cisco the same thing. >> what about the idea trump will be more of a friend than a foe because of what he said on the campaign trail? >> as long as they do what he says, sure. >> he's negotiating. >> some people took issue with the men and women walking into the room yesterday.
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>> swish er did yesterday. >> that's what i was leading to. >> i'll throw it out there. >> that was an embarrassment what she said yesterday about the name drops. >> leave it to doc. >> we're all with about transparency here, judge. that was a horrible call by her. >> if i told you before the election that a month after it that bezos would be sitting with donald trump, would you believe it? >> if i told you that the collective group in that room has almost 2 million jobs between them, don't you think that they want for the next four years to be growing rather than sitting there fighting this guy all the time? >> is it actionable for investors? >> no. >> i don't think that was -- i didn't shun tech for like the next four years because they he were against them. field was the only person at the table for him. however, i think you have an opportunity to look at how they can work together and they're not obviously going to make all
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those iphones here. we know that. tim cook was saying the same thing and mr. trump said back to him i didn't expect it. >> it's important to point out these are people who run companies who have an employee composition that can be described as young and multicaught ral. we should not be shocked to know that they have to present themselves politically in a certain way for their workforce. maybe internally i don't have to agree with everything this guy says but i can work with this administration, figure out what's best for my shareholders, employees and my company's bottom line. we have to grow up and not agree with every single politician in order to be able to do business in their state, their jurisdiction. >> after the election hey, amazon is going down because trump went after bezos on the campaign trail. now he's in trump tower. >> in the substance of actual
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fiscal policy, what is it he can do to them? >> he can help them with the repatriation -- >> exactly. >> of all the money overseas. >> what is detrimental that he's going to do to them? why should technology as an investable tech tore fear the presidency of donald trump? >> let's start with net neutrality which will be a contentious issue. a lot of the data centers and things being built are not being built here but elsewhere. >> hey, we want to you make stuff here. >> what does that have to do with their earnings? it's rhetoric. >> but stock prices -- impact stock prices, haven't we learned that, seen this movie before? >> momentarily. >> that's short term.
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>> i'll scoff at that. >> you're scoffing again. >> will they sell less iphones if donald trump tweets that they need to build a factory here in the united states? will they sell less iphones? >> i don't know. >> it may cost them more. >> we've exhausted that. >> i could keep going but i don't think we want to. >> no, we'll take a break. here is what else is coming up. >> next up an industrial leader getting a big upgrade. one analyst saying this dow component has more than 10% upside in the tank. plus, three stock pillars to play now. repatriation, inflation, and cash flow, "the halftime report" is back in a flash.
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we're back at post nine. caterpillar is the best performing stock this year and csla says there's more upside ahead. the firm initiating it outperformed, it's our call of the day. let's trade it you now. 12% since the election. 41% over a year. do you believe there's more to go? has the story really improved that much? >> the infrastructure story would have been, i believe, the same under east candidate. however with gold falling apart like this, judge, i think that is the down pardon pull. 41% year over year.
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i don't know how you say another 12% to 15% from here given the mining industry will not be pounding the table. >> this is one of the most peculiar stocks in the entire market. the news has been almost nothing but neglect testify for the better part of the last two to three years -- >> more. >> at least and yet no one cares. the stock goes up in the face of all of that negativity. >> it was in the penalty box for a while. the cycle peaked, became a fact of life around 2013. it's probably never going to be that good again. on top of it caterpillar xu compounded that. we spent a few years discounting that. the company has the financial wherewithal to pay a good dividend and buy back stock. now a period where things could be turning and the message is
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the market dons wait for good or bad news t. processes and discounts first. the same thing with deere. whipping through all-time highs as i'm talking. this is a stock that hasn't had good news for four years. five years and we don't know if it will turn but the market is willing to give the ben at this time of the doubt early. a lot of times you miss 30%, 40% of these stocks. >> the concern i have is the valuation. after the run that it's made -- by the way, where were half of the analysts and now here you're in the mid-90s and suddenly everybody loves it. >> if you had to make a fundamental case around a stock thesis, it was hard to make. what were you going to make it on? it could marginally get better. >> you don't want to buy cyclicals when they're cheap. you want to buy them when they're expense.
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they're expensive on trough earnings. if you're look to go buy a cyclical at eight, ten times earnings you're buying the top in terms of the cycle that matters to these types of companies. >> listen, i think there's a lot of information that's being given right now and most of it is intuitively against cat continuing to rise. that's why it's probably going to $100 because of everything we've said here today. it doesn't seem like it belongs where it is but it continues to move higher. >> people think the worst is well behind it now. >> you cannot get in the way of that unless you're committed for the next three to five years in that business. >> look at the industrial metals. caterpillar could have room only if present trends continue and you don't get the blowup we've been hearing coming for the last ten years. you should be okay with the name
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but, again, they have to be smart about where they're guiding the street. they've made huge mistakes before and had to apologize. coming up, one of the top ten financial advisers in this country joins us with his new buys and investment themes following the election plus a bullish call and rosy outlook by eli lilly ahead in our blitz.
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discretionary does not outperform. >> we're in an environment we haven't seen inflation for a decade. >> real debate.
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i want to welcome you back to "the halftime report." there's your picture of the dow. starting to make a move a little bit later earlier today but late in the morning, paused a little bit and we've been sitting in this range for the better part of the last 25 minutes. >> your scoffing is not helping. >> i'm trying not to scoff as much. >> i try and thread the needle there. doc just drops names all over the place. sue herera, help me out. >> hand it over to me, i'll take
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it. thank you. all right. here is what's happening this hour. defense secretary ash carter and his british counterpart co-chairing a meeting in london on fighting isis. defense ministers from 15 other k countries in attendance at britain's foreign office, says isis is failing and controls less than 10% of iraqi territory. corpus christi is warning residents not to use tap water as officials investigate an unknown chemical, the city blaming a recent back flow incident for the problem. nbc is bringing year round olympic programming. it will focus on u.s. athletes. nbc will launch the olympic channel in the second half of 2017. comcast is the parent company and is meeting with staffers of the vatican's children's hospital urging them to resist corruption.
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a person used 224,000 euros in hospital funds to pay for apartment renovations. you're up to date. are you ready for it, scottie? are they treating you good down there? >> well, you know, marginally. marginal improvement it was only about two minutes. give it more time. >> see you later, guys. >> sue herera. ubs says a double digit rally could be ahead and later on cnbc do not miss valiant ceo joe papa today at 3:00 eastern. the closing bell with kelly evans, a cnbc exclusive.
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welcome back to "the halftime report." white house press secretary is briefing reporters as we speak here at the white house. josh earnest saying the fbi is investigating the yahoo! hack. yahoo! announcing as many as a billion user accounts may have been affected in a previously undisclosed hacking attack. ramifications for government leaders here in washington. there could be a significant number of government officials
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whose personal accounts have been access the by whoever it was who perpetrated the hack. the fbi is investigating. >> yahoo! shares down more than 5% on the news today. we are joined now with a new investment strategy. good to see you again. >> likewise. >> a smile on your face this time. the last time were you cautious, concerned about the market. trump gets elected and now we're going to make america great again. you've changed your whole outlook? >> we have. >> just based on the election of donald trump. >> we've had 2% growth against the trend line of 3.5% for the last 50 years and it's been carried by unorthodox monetary policy. now we're going to start adding looser fiscal policy against a tighter monetary policy. those changes will have a
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dynamic effect on growth, interest rates across the board. >> you're advising your clients to do what? >> for clients with a two to four horizon it's time to move to full equity positions. if you're a short-term investor, a horizon, wait for one of them if it happens but for long-term investors this is a different landscape to invest in. do you feel we're ahead of ourselves? >> the markets are preloaded possibly every change that's going to occur in the next year. so there's uncertainty on magnitude, timing, scope, implementation. >> if you say have a full position in equities, what looks attractive? >> i think you start with
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repatriation and that holiday. the stock is apple. 216 offshore. free cash flow is roughly 8.5%. $50 billion a year and if they repatriate that money there could be more buybacks and it will be net positive. >> the second largest revenue. let me ask you if you are an investor, and i agree with you on the three to five-year horizon. but 2016 seemed about owning proxies, going into this year do you think that strategy comes back again it if we do see that air pocket you described or what type of names do you want to own in the air pocket you anticipate? >> we would not want to own sensitive stocks because we see
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higher inflation moving into q-1, rising wages, health care, so we don't want to be in anything inflation sensitive. we are now underweight banks. we think they've moved way too far. they traded at three to four times book up in '06. now they went from 0.8. they'll be attractive again and we'll try to get back. >> let's have this debate. you think it's time to hit the pause on the banks which have gone, in your words, too far too tass. valuations were so cheap for so long that the good times will continue. that's the gist of it, right? >> do you think it's realistic for the majority of people? let's say there's a 10% pullback.
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for people to nail the exit and re-entry and is it worth trying given what the ramifications are for missing that window in which you might, yourself, get a better prois for banks. do you think that's conducive for most people to try to manage a portfolio? >> no, not from that perspective. i think we're going to see a lot of rotation within the market. so i think technology will come back. i think health care has been way oversold. it's been energy and financials that have completely outperform. i think over the next few months we'll see a lot more rotation and those are the sectors that will outperform the banks and the energy. >> so i look at some of the plays you like, and you mentioned the repatriation play, if you will and apple being at the top of that list. you also have your eye on big blue chip companies as part of an etf that probably we never
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talk about. it's one of the points i brought up earlier about these repatriation trade and the buybacks and fueling the stock prices higher at boeing, a mcdonald's, a lowe's, aig, qualcomm, within this etf. >> lead to go more buybacks. this etf buys companies that have bought back at least 5% of their market cap in the last 12 months. we think it fits that theme. there's cash flow stories which they're completing a $24 billion capex program in 2018 that is going to zero. cash flows will start surging at the 250,000 barrels a day is going to be their output. they'll start cash flowing $2 billion year over the next three years.
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>> do you have an energy play flr? >> flr is a make america great again small cap. it's in services and mining. if you believe in the infrastructure story, 75% of their revenues is domestic, 1.8% dividend yield. we like the company in the small caps space. >> things like infrastructure is at the state level, how much could a new incoming president push his own party who are, let's face it, not very big on huge spending programs, how realistic we get this boom given it's the states and even within the party there's conflict? >> there's that's a good point. that comes back to this
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preloading. we're not going to get it all. we're going to have disappointments along the way f. you look out two to four years the invest landscape could be better than the last four years and that's why equity should be bought. >> i appreciate your time and point of view. we'll see you back in our headquarters. >> my pleasure. unusual activity in one stock that's rallied 20% since the election is next. first though, michelle caruso cabrera has a look at "power lunch." >> which starts in 22 minutes, scott. rally on, the dow 20,000 is in sight again. you can see it right there.
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three more rate hikes says janet yell ep. can stocks continue to go up as they rise? yahoo! shares are tanking. verp eye done scrapped its takeover after the internet giant uncovered the biggest data breach ever. what now for yahoo stock? what happens in vegas may no longer stay in vegas. we explain. "power lunch" top of the hour. don't move. "halftime report" is back after this break. the greatest population shift in human history is happening before our eyes. sixty to seventy million people are moving to cities every year. at pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. partner with pgim the global investment management businesses of prudential. come on, wake up!!! come on, why ya sleepin'? come on!
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i want to welcome you back. you may have heard comments from our very own jon najarian who called out kara swisher for calling out the tech executives who went to the meeting yesterday in trump tower. we want to welcome in now on the telephone kara swisher herself. >> i have no idea what he said but whatever. >> he'll tell you exactly what ep said right now. >> oh, gosh. >> i follow you and i have enjoyed your insights. i thought your comments about the tech executives going to meet with mr. trump were divisive, i didn't think it was about bringing america together. i know your job isn't to make things productive here but i didn't think there was anything positive about the comments you were writing about them meeting with mr. trump yesterday. he is the president-elect.
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>> i didn't say he couldn't meet with them. you didn't read carefully. i said they should speak out on political issues. that's a very different thing. the last time i checked we're allowed to speak about the feelings we have on different issues and donald trump said a couple of appalling things about tech that now he's taking back, and maybe that's a campaign thing or anything else -- >> would you view that as a positive that he's taking those back rather than digging his heels in? >> i view it as a trick. there's nothing wrong with going to a meeting. i never said that was the case. i would meet with donald trum in a new york minute. saying things about critical issues in public so it makes it clear people don't agree very significant and important people don't agree, and just because you want to get along doesn't mean you can't speak your mind about things. it's exhausting to hear we have to get along.
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of course we have to get along, make this country better in any way we can. it doesn't mean it aggregates talking about critical issues. i've never seen a bunch of sorer winners than the trump people. you won, great. fantastic. we still have the ability to speak out. leaders and their employees have gotten thousands of notes from employees who want them to say things. they're leaders and are allowed to say things and they disagree vehemently with him on a lot of things he said. he didn't take back any of the things he said, by the way. so there's nothing wrong with going -- there's something wrong with not saying things that you believe in. >> sure. >> in order to gloss things over. that's a very different thing. it's exhausting to be lectured to like i don't want them to meet. i want them to meet and be leaders. >> this is scott again. for people who may not fully understand your thoughts before
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this meetinging, i want to read something you wrote and then ask you something about it. you said, quote, or at least wrote, quote, well, one would hope for a substantive discussion. it's pretty clear to me this is just going to be that geek reality show in which real billionaires walk the gauntlet at trump tower to get exactly nothing for handing over their dignity. what if the meeting was much more productive than anybody including you would have expected going in? >> i actually know exactly -- i have notes from all the meetings. i'll be writing a story about exactly what was said once the doors close which would be nice if someone would actually do that. nothing happened at that meeting. they didn't get any promises. they got a lot of talk. they got a lot of meetings. one good thing a lot of them had never met trump. it's good to meet someone. fantastic. i guess you could look at that as productive. when swup literally talks about immigration issues and the head
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of microsoft is an immigrant. he's a fantastic leader. they should say we're thrilled to meet the president. we want to understand that immigration is really important to the growth of our most important industry. i would like for them to have been able to publicly say something and that, to me, is productive once we start a true dialogue about issues that are important to us. >> sure. but do you think that by the mere fact that he even had this meeting that he'll be more of a friend to technology rather than the foe that people expected he would be given the highlights from the campaign trail? i asked our panel earlier if you would have thought, look, he called out jeff bezos. would you think that a month later he himself would be sitting in trump tower? that's some level of progress, road? >> he had to suck it up and do
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that. he is a leader so, yes, i guess that's good that he did that. most of them are really fantastic and interesting people who have created so much wealth for themselves and the country and to just use him as a campaign tool to get votes is kind of sad as far as i can tell. i just don't feel like why would you do that. it's all just a circus, a political circus. but these are very real business that is employ a lot of people and i don't feel you need to be irresponsibly attacking them and a lot of the things on the campaign trail were untruths. it would be great if it were thoughtful, if it moved forward, if people could work on critical issues around our country. tech is the number one industry and, by the way, china is coming up rather fast and rather well
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catching up to us. do we want to stay on top? do we want to help create jobs, figure out what's going to happen to the future? that would be great but at the same time they had their own bully pulpit where they could have made it clear the key issues were and they didn't. they're scared and don't want to be attacked. that is very reasonable thing to say and a reasonable thing for the president-elect to do. i don't think i'm saying anything crazy when i say that. >> kara, we'll leave it there. you said you have a story coming. we'll certainly look out for it and look forward to reading it and certainly do appreciate you taking the time to call in and have this time today. >> no problem. >> the recode executive editor joining us today on that topic.
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>> you are entitled to your opinion and she is hers. >> i believe she'll be honest about what she heard. tweeting during the meeting yesterday, judge, that tim cook wanting to sneak a portrait if he toe to show how close he is to the black hole and still survive is not somebody that wants them to have a constructive -- >> understood, but to kara's points there are incredibly important issues. >> yes, i agree. they need to have conversatios s about. there's the visa issue she mentions which is so vital to employment in the valley. >> and tech is very important to this country. we are the innovators for the world. there's a reason that twitter, that facebook, that apple are all here. i don't think by throwing gasoline on that and trying to get them all fired up -- >> kara is not tweeting about
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visas. >> no. >> look, doesn't matter who you voted for at this point. it is what it is. he's our president-elect. however, not just donald trump, his surrogates on every network in every possible venue said things that are insulting to a lot of people who were employed at these technology firms and what people and what cara is doing is just keeping that as part of the discussion. you could say that's not productive and i would agree, and there are raw wounds, scar, it's been a tough year. there's a ton of uglyness. a lot of it condoned, quite frankly. >> my point earlier was whether you take into account for a photo op alone or something more. as an investor in tech who may have been scared away from some of these companies after the election. that's sort of -- there was this feeling. based on some of the things that were said on the trail, that stocks like amazon or maybe facebook or another, could be a target in some respects by the
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administration's policies and thus, the stocks sold off. whether they sold off for that reason or another, who knows. >> your point is it could be much worse than just a tweet about the cost of air force one. or about lockheed martin and f-35. that's what the concern was. i think you ameliorated those concerns with that meeting. and i think that's positive. >> over to ki deangelis now. >> good afternoon to you. we are watching gold prices. down over 3% today. lowest level since february. we had a fed rate hike yesterday. you've got a dollar continuing to move higher. is this a recipe disaster when it comes to the gold trade? >> it's already been a disaster. what's not to hate. the things you mentioned at the same time, mario draghi's putting the pedal to the metal more. we had things we were worried
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about. an election. an italian referendum. it doesn't seem to me there's things we're particularly worried about now. not saying there can't be soon, but right now, there doesn't seem to be a particular reason to buy gold. >> jeff, let's look at the levels. if we get down to 1060, gold's going to go negative for the fourth straight year in a row. the longest losing streak since 1992. are we going to make it? >> i don't think. i think he's been dipping into the eggnog. a lot of these problems are still there. it's been pushed on pause to president-elect trump coming into office, but it has been a one-two, punch in gold. we've seen the dollar stream the highs, but the fed guidance, they raised the rate hike from 2 the up to 3. let's keep that in check. that's bonlgically the reason. remember the fed is notoriously wrong on their forecast. so i think 11:25 is a technical
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target. you can meet a buyer watching that to go up to 11:73 0i7. more on the dollar. wee going to talk about how it impacts commodities with dennis gart mann and scott wren. more coming up after the break. hey nicole. hey! i just wanted to thank your support team for walking me through my first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading with thinkorswim, only at td ameritrade.
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we're talking gold. >> the miner, gdx. just talking on futures now about gold and the fact it was getting pounded to the downside. look at the january 19 calls. 25,000 were purchased today. maybe there's a bermuottom here.
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>> doc? zwl>> i like it miners are goino move faster. faster than the commodity itself. >> gold's been off favor to say the least. >> gold is at a ten-month low. looks atrocious. maybe 1,000 is the floor. i'm staying out of this one. >> before we do some final trade, let's mention the stocks. pete, microsoft is bumped up to 70 bucks today. >> this is a company we talked at the top, transitional and they're doing everything right. part of that meeting yesterday with mr. trump. i think the stock has plenty of room to the upside. it hit 63, it's bounced a couple of times. >> we mentioned some of theodis in the financials and visas ander card of world. josh. gets their upgrades today to buy both of them over bank of america. >> reason why these stocks have
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been b such home runs and probably continued to be b home runs is because business spending and consumer spending, both lifting at the same time, is a big deal. >> doc, final trade. >> bed, bath and beyond. unusual ak hit next week. >> thdoes it for us. >> starts now. >> and we will see. i'm tyler mathisen, welcome, everybody. here is what's on the "power lunch" money for thursday. closing in on 20,000. very close. 100 points away. is wall street set to put janet yellen's influence in rear-view mirror? going to dig in on that straight ahead and a hack job. yes, another one is yahoo!'s deal with verizon in jeopardy now. follow iing another massive dat breach and when pigs fly. some bacon news, ladies and gentlemen, for all you stresseded out travelers. "power lunch" begins right now.


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