tv Fast Money Halftime Report CNBC March 13, 2017 12:00pm-1:01pm EDT
generation. computers need to be able to see. >> the car's going to be the most crucial point to happen but certainly not the only point. intel trying to insert itself including nvidia and qualcomm. >> it ups the value for am ba really la and xilinx who are trying to get into it as well. >> good stuff. let's get to scott wapner in the half. welcome to the halftime trade. why they say your money will work better elsewhere. let's begin with the markeds. dow and s&p are negative, mostly flat. nasdaq getting a bit of a bump. but josh, what do you make of this call as people start to look for value elsewhere, not the u.s.?
>> well, look. this is something we've been saying since the start of the year. we went slightly underweight u.s. stocks relative to global benchmark and we overweighted things like europe and it was not a tough decision. it was one of these things where you just look at the gains we've had in u.s. stocks for clients, you look at performance, valuation differentials and look at the picture brightening in ways that are not captured in flows, in fundamental research, et cetera, and it was the type of thing where we say, look, first of all, this is an overweight and second o all, relative to other advisers, the home country bias around the world is on sene and in the u.s., we see people with these accounts that are hugely levered to the s&p continuing to go up and up and up away from other asset classes. this is not going to be the case. historically that will be very wrong.
>> jpmorgan said they've outperformed. they think the dollar could weaken in the second half rather than go up even with the fed and interest rates going up. >> so a lot of the geographics, you're asking to make a currency play. looking where the u.s. dollar is right now and seeing relative the last six months, let's take for instance the japanese yen. the weakening very beneficial to japanese equity. i think when you look at allocations right now, i think it's fair to say, look, the next move might be a lower u.s. dollar, which would lead you to believe you want to have that exposure to the u.s. i think everyone's kind of behind the curve here on these geographical indications. to josh's point at the beginning of the year, everyone wanted it. lastly, i don't think people properly weigh the exposure to
revenue sales. >> maybe the u.s. isn't done yet. maybe people are getting a little too frightened about are the feds going to hike, trump agenda may not be that fast, stocks have run so far. >> i want to go back to this point about revenue. the s&p today has 40% of its revenues overseas. you can buy companies listed in the u.s. you get their accounting, understand the management, and you get exposure. you can buy necessarily, novartis and others. if you want to play the dollar, it's very hard. what these companies do, they hedge it for you so you can benefit from getting overseas exposure. i agree with all these fine gentlemen here that this is the way to do it. if you go directly into china, you have currency risk, political risk, how do you monitor that? >> the point is you're getting paid to take those risks while
others aren't. we understand the fact that u.s. accounting standards, european standards are come pays. that's why emerging markets have been selling at a drastically lower multiple for much of the time since 2011. investors get that. >> they're also selling because it's much lower than it was when brick was developed. when brick was developed, that is a decade ago the growth was double digits. >> we're not buying economist. we're buying assets that create cash flows. yes, it's had a couple of good months, starting to rally here, becoming more popular. but this is against the backdrop of a lost decade for european stocks. the vgk, vanguard europe, most broad definition i can give you, scott, it's analyzing at 103%
over the past five years and 110% in the last ten years. about 14% over the last five years. the amount of outperformance you've had in u.s. assets over one-year, 5-year, 10 hch years. it's something. ultimately if you're not thinking about ways to own some of the laggard industries and take profits in some of the leaders, you're basically saying this is how it's always going to be. >> markets don't go up just because they haven't lagged. they go up because they're cataly catalysts. >> i can't foresee the catalysts. you can, i i can't. they're good. their beset besocial is tick
policies and massive unemployment. it's not enough to say, i'm going to buy europe. >> what if you get a reflakes trade in europe which you haven't had yet. >> it's happening now. cyclones are turning up, okay? this is something not in evidence for european banks. that's starting to turn higher. earnings are to the upside. that's not reflected currently in valuations. you're start to see that. >> josh sees everything nobody else sees, and i get that, okay? it hasn't happened despite having more money. their qe policy is actually restrictive. so when draghi takes his foot off the poedal -- >> do you think these other
markets are going to planl. thus, those are the runs you're going to get more bank for your buy. >> everything he says is factually correct and people don't want to allocate to what they perceive as a losing trade. this has not been working. they don't want to say, yeah, we're in yurm, sorry about that. >> i was in europe early and i went in europe last year in 2010. >> i've been there forever. >> it was early. it didn't work. the massive flow was -- i'm talking in funds. do i think they kachl them as they've done over the last eight or nine years, no. you also have french elections and german elections.
>> i think, by the way, if europe goes up, so to we. one of the bing things is they stay pretty much the same. >> that's not through. 2003 to 2007. they're not true. >> the way things are working now, that's what's happening. >> so we're collect ivgly talking about a fundamental environmental and the viewer at home is sitting there saying what we can do is buy the company. what you can do. are you buying an instrup sip. or are you looking at kbaeps that have sa revenue close-up to europe. conversely in the emerging market, all the emerging markets flow to china, india, south korea, and they're going to
thinks like the eem. what is your emergency market strategy. how do you get exposure? do you buy the indices or through ets? >> it's a good question. there are people just saying, well, i'll head the currency because i'm worried about world elections and blah, blah, blah. kroers is it occurs over periods of time. it would be the same but you also mikesed the kiran seng. >> here's the question. why did youtsd of the way of
happened. >> why get out ott it in any way, shape, or form. >> you're selling it at a 30 teams prize sick calgary lay 'kae. when you've bought in at levelet of over evaluation. it doesn't mean what's going to happen in neath yoor, by that's going to happen. >> sure, we've discounted some. i don't know if we've done that lately. if the tax perform does happen, i think you see another major leg. i also believe ceos are investing in their own business for the first time. the u.s. is still the number one economy in the world.
the number one economy in the world isn't moven't, i'm comfortable having. it goes back to you nchtsz have a conversation. so we're sitsding ler. we're talking about having exposure kpeen yo the knack hat because we're in a protection ist trade war. be careful with these policies from the euro stock's 50, which is the dow of urine, and the s&p 500 is at the widest it bess been since 2011. >> what percentage are banks in the euro stocks?
>> austen sibley it should be. >> it's completely gray. >> over there it should. >> it's not quite apples and oranges. it's essentially backward looking but i feel very strong that most u.s. indeveloping rs and because there ee a home country to gip with. it's the most expensive. it's a fact. if we're talking about the outlook, more than 12 months, history saying if you have some the oob. there was nothing in the headlines that we told yu.
they both doubled the point is -- by the way, this whole thing, we have to get threw the. . you're making a bet there's no fundamental reason. if you want to have fwreswork on it. it. there's nothing that supports the market. russia's tie na. the capital is not relevant. >> exactly my point. >> it's an example of a market where there is no fundamental driver. that's the oinl point. >> if i went to the fundamental, it's great. >> is that what we're talking about? >> yes. >> everything kwoi're talking about. the excitement revolves around
india, getting passed in the last couple of womens enterm they haveful. we wasn't through the currency issue and you look. there is months tirch moej techbl here. i'm a fundamental envfter rngs. >> you know why inltd ya is such a hot theme, the marked has doon it -- >> that's knew true. >> there has been a monumental shift in fiscal policy issues. >> agreed. look at the chouk chart. >> he didn't vote. >> he left the vote behind him. it was down 80%. we would be talking how great
his poultcies are? >> they did have a nice dip. >> the point is there are markets right now. >> you're saying it's junk because it's junk. >> no, no, no. >> there will markets right now that everyone including everything is great and those are the united states. there are markets that's going to go o into a contentious ee lektsds. look past the sentiment and try and think what can go right and mit'ing what's more at rate. the way you strip sought france is you don't buy it. you're invfled in stolks and you're not going to -- hold on.
if you buy google because whafr happens with the contact 40g. if he bees it. it he can get it. >> maybe. >> not not eff test it inially. >> nomt deskly. hold on. >> of course, you can. >> note definitely. >> i believe in responsible elements of concentration, not buying an index that has 500 names or 40 names or 50 names. mediocrity. that by definition is average performance, right? that's what indices do. that's what etfss do. >> a mediocre investor.
has a triple on his hasn't. probably better han the result e they would have achieved had they been doing something ta a called thechlt a lot more. >> in the picture. >> we should buy the iraq. >> why? >> because it's cheap. you have to look at noimd notice. now. you say, look how smart it was. russia, it pushly went there, it doesn't count because there wasn't a region? >> i just can't throw darts and say, hey, this han been. you had to hill a bull kwlees i.
you recognize it's part of the global opportunity set. >> what day is this. >> you'll be adding to it. >> what basis? >> on the basis of -- >> what was your fundamental race? >> i don't have a fundamental case. >> how do you overweight rush. >> he just said overweight russia. >> here's what we're going to do. we're going to end thap name. he's going discuss the fed, global markets, met many. mane. i don't rehn ya. . you probably know be now. i told yui were done. schools in new york are already closed. if we have to resort cutting your mikes, we will. that's how we work around here,
okay? jacqui jeras joins us now with what to expect. hay, jacqui. >> this is goefts to be a phone afterfrl. we authentic than's going to be the betts el seventy. that system is going to all to the east and blend in wt another low which bhasen impacts the southeast. it's goipgs to bomb off the coast and bring a huge swath along the border. it's still a question mark in terms of where that rain/snow line is going to sep all proper might be a little on the snowfall totals.
we're talking double digit snow. many of those airlines are ready, waving the cancellation or change fees as a result of that. so a very powerful impactful storm. this will be starting late tonight, continuing through the day on your tuesday and then beginning to taper off as we head into the early morning hours on your wednesday. back to you. >> all right. thank you so much. here's what else is coming up on the "halftime report." the fda is about to get a new head. what's he going to mean to the health care stocks which have been vastly outperformed by the brother markets in the last year and six-month period. meg tirrell is on the case. and traders are set to debate it. also the sectors that bear the worst after a fed hike. more "halftime" in two minutes with scott wapner and the traders. at fidelity, trades are now just $4.95.
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i read one analyst who said thank got it's gottlieb. why would they have that reaction? >> they were breathing a sigh of relief. he's a known entity in the drug industry and he's a cnbc commentator. let's see who dr. gottlieb is. he's a venture partner at new enterprise associates, 4e's also a doctor at nyu school of medicine, so he's also a doctor which is making more people comfortable. he worked in the medicare and medicaid agencies under george w. bush, so the drug industry giving him a big thumb's up. 87% saying they approve of scott gottlieb's nomination. he needs to get through the
senate. 13% don't approve of him. why don't they like him? they know he's a center of the road person. he's also talked a lot about the etchpy pen, trying to make sure we have competition and incre e increasing trance parnltdcy and very industry-friendly. he talked about what created the whole epi pen controversy. if we have the clip -- i'm not sure that we do -- take a look at how he talks about it. >> it's not just with the epi pen but it's with other agents. any time it's hard for the agency to demonstrate sameness, the agency has a thard r hard time. we were talking about this issue ten years ago. >> talking about this. it's been something gottlieb has been focusing on. we could see a lot of potential
changes coming there. >> so should we expect a move for faster drug aimprovements and then stocks your company would look at. is that one of the things they would expect? >> it's certainly something they align on. a lots of people talk about prices. the fda can't weigh in on drug prices. >> that's why i ask you about it. >> that's smart. the way gottlieb has talked about it is increasing competition, so that will be both positive for companies trying to get competition on the market. then companies will see more competition to their drugs as wells. >> i think it comes down to biotech. first of all, gottlieb, i've heard it on air. i love when he comes on. he cuts right to it. he's very commercial. no politics when he talks. they've got a massive health
care expert and those guys are brilliant. i've dealt with them in the past. in terms of coming back to biotech, if they're going to be faster approvals, i don't think they the keep pace with thome. i would expect to see more acquisitions there. i would expect to see more funding for biotech companies. that's where i prefer to be. >> pete, you're invested in some of these names. what do you think about the conversation? >> i think it comes to the forefront for all of us, is maybe they would ease it and revamp the whole process. because of that, i this i the brand names are the ones that are going to benefit most. when you look across at the gileads of the world, somebody mentioned j and js. you look at many of those they've got all kinds of drugs. we know the incredible process and how long it takes, years and years and years. if that's able to be sped up to
some degrees, it could be huge to this industry. it sounds to me like he is. >> joe? >> i guess the question for steve and pete is how do you get the exposure? do you buy it or look at the gilead and try to play the turnaround? >> i think you buy the russian xpi. no. i think you play it. >> if you look at 2003 when they installed scott mclelland, this is my first taste of the joys and strategies. when they put in mcletland and hill whoesz sticker was we're going to put on the market. it was a bonanza for the biotech
sector. i agree with steve. that's where you want to focus if you think that's where it's going to come to pass. the only thing i would make, regulations do stick there for a reason. you had a loan fda officer who almost single-handedly prevejtsed that drug from hitting the market. pregnant women being prescribed a sedative that turned out to destroy their bake by. yes, we want safe ee fej e effecting throughs -- >> is this company something that makes you want to bin taipds today. the exposure and the slv. i still believe those companies will continue to trend up because people want to space but they don't necessarily want
single drug or clinical trial risk. >> hey, scott? >> the most important one is gilead. you're talking a massive company trading $67 this is a company that was 120. i am not buying. i made a mistake a couple of weeks ago. i don't know if anyone else would buy it. >> i've got to get to the european close. seema mody has it for us. >> hey, scott, european stocks holding on, this as we kick off what will be a very busy week. we have plans for a second scottish ref rehn dense to lead the uk. more on that in just a second. n they have a test coming up. that will be a test of this popular sweeping across europe. let's talk about the scottish
vote. it would allow scott lands to negotiate its own trade deals with the european union. strad jits across the board say the referendum is a long-term negative. they're forecasting a 6% drop from this these lerlts. 60% of sales made those sales on the outside. >> thee ma, thanks is mump. >> pete, sorry i had to interrupt you before. but whau have vow. >> no. i appreciate everything being brat up. growing up in a family where i had a surge calgary nurse for a mother, transplant doctor who was a pioneer in the field and myself, i understand what he's saying, but the pendulum has swung so far, it's very much like the financial regulation.
now we've got to find that happy medium. that's why i think gottlieb is going to be great in that position. >> i do have to say as we wrap up you make important points about safety. the other names were focused on getting drugged to the market fast and people were worried about tanging the gaunt down. >> i agree with pete. i think things have gone a little too far. there's always going to be those who say, no, see it my way. but i think that's what people say. >> meg tirrell. ahead on "halftime," three decades ago mofts went public. 30 days. they even turned the company's ta'u tur. plus the call is ahead.
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stoeltenberg is urging others to show mutual respect, be calm and have a measured approach as tensions mount between turkey and the netherlands. >> i think it's important to focus on everything that unites us, the common challenges, threats, and how nato is conducting and we not focus on issues that divides us. >> nissan is recalling more than 54,000 cars because their seat-mounted airbags could unexpectedly deploy when the door is slammed. it involves the 2012 versa. it's a wearing down of connector pins. and tempers run high after a nascar race. kyle busch went after joey logano on pit row after the race, this after logano spun his car he said it wasn't
intentional but busch wasn't buying it. the two getting into a big fight before cooler heads prevailed. that's the news update this hour. tyler mathisen, what's coming up on "power lunch"? >> good ol' boys will be good ol' boys. >> that's right. >> coming up on "power lunch," what it could mean to speed for drugs and what you pay for them. the northeast bracing for a big snowstorm. we will be tracking it minute by minute and intel buying mobile aye for $15 billion. "halftime report" will return right after this. ♪ know you have a dedicated advisor and team who understand where you come from know you can craft an investment plan
almost half a percentage. now back to scott and the halftime traders. >> thank you. how do you want to play this? >> i think it's so well advertised in terms of the fed going, there's hardly a person here who doesn't think they're going. i don't play it at all. >> what happens if they don't? >> they don't, it's kind of interesting. you'll see the ten-year collapse -- sorry, you'd see the ten-year yield. >> in one of the three notes if the fed for some reason doesn't go, you're going to see a market selloff. >> you will. even the dolphs want them to go. >> anything cyclical, you see staples utilities reach, just rally like you haven't seen since last spring. >> okay. let's do the blitz. let's start with pete. intel is buying it, pete. $15.3 billion. what do you think about this deal? >> well, what i think is really interesting. i like the deal personally because $15 billion, they cash flow $20 billion a year every single year, scott. so last year it was ail telthee
year and a half ago. 30% is cloud revenue. they need to grow in the areas that are small right now but getting bigger. i think this is a great fit for intel. >> pete, one of the other companies to watch is delphi. they're all in the car, they're trying to get a bigger piece of the car. if you watch them, they're going to. >> what do you think of the price at which mobileye was taken out at and if they settle for too little. i ask that question because john sent over an analyst who said the premium's not bad but would have expected more. can't help but 1-800-er why mobileye is settling. did mobileye get enough? >> we're actually looking at that right now. we'll come back to you on that. it was a nice premium. it's almost double where it was. >> what do you mean you're looking at that right now? >> i'm looking at it right now.
>> what we hear -- >> do you think there's another one coming by somebody else? >> i think it's always difficult. i haven't read the proxy. i don't know what's out yet. but it may say intel gets the right to match. if they get the right to match with their big pocketbook, nobody's going to compete against them. >> unless it's ridiculous. >> harmon got taken out by samsu samsung. it was 840 and above. i think what the market is telling you is we see the auto market peaking. they're selling out now because before we start to get into the ninth inning they want to get to the right price. >> okay. charles schwab. you've talked about schwab and some of these other brokers. >> yeah. i don't likelike etrade. >> full disclosure, they're making a big bet. if they slash fees on the price of funds and on the price of trading, they'll bring in enough
assets that end up in the private bank side of schwab or with the raa side and they'll make up money. so far it's been working. the chart looks outstanding. ubs is 50. 50 is easy. maybe higher. joe, give me something on navistar. it goes to 17.02% as of march 10th. >> first of all you want to stabilize the rate of decline. fundamentally you're talking about a market share in the heavy truck component which has fallen from the upper 20s down to nearly 10%. the stock has been in decline over the last four to five years, however, i think it's stabilized the rate of decline. i think the partnership with volkswagen is a strong one. you're focusing on cost savings and things of that nature. i go along with that. >> weiss, it's gone down. >> this stock has taken more hits in terms of the ratings.
we know jim thinks the cycle is over. boeing is just a market stock at this point. it's going to do well if the market does well and if it doesn't, then it's not going to do well, but you have to believe at some point they stop buying airplanes and that's the issue. >> surrat, microsoft went public 13 years ago today. >> you keep owning the stock. firstly, you've got a great management team. they know what they're doing. it's recurring revenue, in the clouds, in the sweet spot of technology. third is the balance sheet. they have a great balance sheet with huge cash flow and guess what? you get a catalyst. so i think all these three things going forward is a company you want to own. >> i'm with you. i think it's going higher. >> i think you're right. >> up next, pete najarian is tracking an unusual energy name.
first your check. let's show it to you. discretionary at the top of wall street. we're back after this. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. i work with people everywhere on sea, on land, and in the air. inspecting towers way up high avoiding turbulence in the sky. personalizing treatments with dna and recommending who should play. a dress that thinks, which crops to grow, tax prep to help keep payments low. you can find me on an oil rig,
all right. we're back with the promised ununusual activity with pete who's always tracking the market for signs of unusual trading. pete, what do you see today? >> well, we all know the energy space and how much pressure they've been under for a while. even when oil was going up, they're coming down and now actually oil is coming down. keep an eye on inenqana. the july 11. now the open interest is over $50,000. well, today they're back again. they're out there selling way out in the future of the october puts. they're actually buying the october buys, rather, and they're selling april puts. a lot of activity going on right now. what that means, very bull usual because they're selling the puts
in the short term and going out. october calls aggressively bought. 46,000 of the puts sold. so a lot of paper coming in over the last three, four, five trading sessions telling me right now somebody thinks this is maybe the low end this chart is going to start moving back up to the upward side. if you look at the year long chart this stock has been down, down, down. maybe it's time to see it go up and through 11. >> looks like you're using that sun block well in hawaii. >> you can only put on so much. the waves keep coming. >> baby oil is so out. >> no baby oil. i'm a 50 block guy. i put on the heavy duty stuff. it was great. >> we'll see for ourselves when you come back to the set one of these days. thanks for joining us. good stuff. next up an upgrade of one tech stock that has seen a gain of 17%. our call of the day.
it's coming up next. before the break let's look at the day's most active trading states. mobile eyenv and vale. ♪ thrivent mutual funds. managed by humans, not robots. before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds.com. we cut the price of trades to give investors even more value.
from mature products into automotive space. analysts said they talked about by 2023 a billion dollar automotive ethernet component. i like that. >> a comment was made before of a peaking of the automotive side. >> you're tongue-tied for a change? >> not at all. i was just thinking. that was unusual. i think you got to be concerned about getting stocks that are going be more leverage on the auto cycle. major subprime lending issues that will come out. i think we're not going keep going. you may have massive cars, used cars coming on the market they have to compete with the new cars. >> fighting for the same space in the car. less cars sold you'll have to
cut margins and you might get a bigger place on the dashboard. >> they are liking your 30% upside on the stock from where it is now. >> if the auto cycle keeps going the stock will do well. you have to look macro as to specific on stock. >> stock failed at this level in 2014 and 2015. it makes sense to take a pause. this is where sellers have shown up previously. the longer it consolidates just above that prior resistance the more bullish you have to be in that the issues that turned it away from those levels are no longer relevant to the investor base buying and selling it. if i had to pick one side or the other, i would say buy. but then you have resistance slightly higher dating back to 2009-2010. >> when we come back we'll do some final trades on the other side. now on the next page you'll see a breakdown of costs.
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six, seven minutes at the top of the show. >> i like biotech. great play. >> friday after the close, i think the stock goes higher. >> semiconductor index. more and more consolidation. companies join. >> names. >> qualcomm. >> come on. >> qualcomm buying xpi. they will do well. watch intel because they are moving way from the pc business. that could be good because they are competing with qualcomm but now in the cars. those could be two stocks you should watch. >> semi equipment. >> i like to throw out a couple of names. visa, all time high back to the ipo in '08. >> love it. buy it. >> visa or mastercard. >> visa over mastercard.
i like the transaction process. >> visa, great businesslike mastercard. no credit risks. if rates move up -- >> you own both. >> what about 3m. anybody own it? >> we've been selling it. when you look at industrials. >> not a good move. >> yes. >> industrial companies are all reflecting -- >> "power lunch" starts now. >> it sure does. i'm michelle caruso-cabrera. here's what we're watching at this hour. the deal of the day. look at mobile, intel smachg up mobile eye for $15. many believe this is the big in the m and a boom in the autonomous car space. we're awaiting new details about wall street's top cop bharara. white house about