tv Fast Money Halftime Report CNBC May 3, 2017 12:00pm-1:01pm EDT
disney, the worst day for disney since june of last year. that's weighing on the dow. zwl. >> lot of these stocks has a vertical sprint and how hot was the nasdaq run ining has been a big question. facebook up ten bucks in two weeks, that's more than snap added to facebook. >> let's get to wapner and the half. welcome to the halftime report. i'm scott wapner. top trade this hour, the apple aftermath. why that stock falling today and whether it is a reality check for investors. with us for the hour, steve weiss, the brothers and rich, let's begin with apple. that stock is taking the biggest bite out of the dow today following its earnings report. iphone sales coming in light ethan expected and yet, i look at my list and almost everybody including you is thinking about buying more. why? >> i bought some this morning
because i think you have a free pass. unless you have something y absolutely rouse in the next quarter, everybody's looking forward to the launch in september. so why not? it's one o f the safest stocks out there. i think the especially thuz y enthusiasm is going to continue to build. >> to pete's poind. >> yeah, pete. >> that strong. >> it was okay. it was fine. >> almost everybody on this desk other than rich is either buying more today or thinking about buying more. >> but it's also within the context that i'm not wildly enthusiastic about the market. i want market exposure. so i've got to market exposure through apple and i think it will work as working this year. so, why not. >> so, rich, why are you on the other side? >> we have a full position in apple but i think there's a
broader position here, that apple is one of the great beneficiaries of possible repatriation. also, i think the lens should be broadened to look at the s&p, a third of the move this year has been on the faa and gg stocks. investors should think about a broad basket of these stocks. >> we have jim cramer from one market in san francisco. he is going to have an exclusive interview with tim cook today and jim, we can't wait to see that tonight. you said this morning that you thought earnings were good. what's the most pressing question you have do you think for mr. cook? >> i want to play the part of the game of what to do with the money, but i want to know when we switch the narrative and make the narrative be about a subscription stream that has more than 150 million people because subscription stream is
netflix, also amazon. these are stocks that don't trade or be bound by a traditional multiple. that's got to get away from a hardware situation more into a consumer products goods number particularly on the eve of o when becky quick sit down can warren buffett 72 hours from now. >> we're going to have tony on following your appearance here. >> love tony. >> i know you do. he asks the question today in a note that just dropped this morning, iphone, iphone's a tad sluggish. worrisome or sign of anticipation? what do you think the answer is? >> well, i read tony's report now. you know, i'm familiar with tony and i love him. you know, with all due respect at 93, he did basically pronounce the stock dead by saying the best times were behind it. that was a lot of point points ago. like 40, but that's okay. why is that okay? because i think he answers this piece of research with it's fine
to buy. that's better than i felt when it was at 93 when i think he answered the question negatively. i love him. >> i know you do. look, even tim cook on the earnings call is wondering about the iphone sort of openly. saying that there was a pause in some of the purchases of the iphone and i'm quoting now from what he said. which we believe are due to the earlier and much more frequent reports about future iphones, so it's noticeable and tim cook is is sort of wondering okay, maybe it's because of all these reports out there about this coming phone later on in the year. >> well, you know, that's again the tony issue, which is it's the sign of anticipation. that's the bull case. i sat there and started thinkinging, what would have happened if they made more 7 pluses? that's the cord cutter.
we watch a lot of stuff on my wife's 7 plus. i also think the endless supercycle talk has made me think, okay, if i have a 5, a 6, you know what, i don't need a 7. so that pause is natural, but when tim cook brings it up, i have to lolook at it. i can't look through it if tim brings it up because he's the ceo and i'm just a fan boy. what i'm called constantly on twitter. guilty. >> the loudest voice of all perhaps who said look, don't trade this thipg. own it and you did that a long time ago. jimmy, i want you the stay with us. we're going to bring in tony now. he is the number one apple analyst. welcome back. good to see you. >> glad to be with you. >> i know you heard jim's comments and you ask this question. is it worrisome or sign of anticipation.
what's the answer? >> i think it's likely a sign of anticipation. i'd say the only disconnect for me was it appears as though apple's upgrade rate really is no different in the first half of this year than it's been in previous cycles and one would ek pecht if there was a pause, you'd be seeing that upgrade rate go down a little. so to me, that's a bit of a disconnect, but when i look at china, which continues to be very weak, my belief is that that's a consumer to generalize that cares a lot about form factor, that cares a lot about future functionality and had explosive growth during the iphone 6 cycle. i think you're seeing the eothe side of that boom, now, looking forward, there are a lot of people in china who have iphone 6s and 6ss that will be looking to upgrade for the iphone 8, so i think you're likely seeing some anticipation/pent up demand and that's good. apple's numbers today are about the same in terms of estimates for this year than they were
before. and if you're pulling on the stripg or pulling back on the string and you could have an even bigger rebound with the iphone 8, that's president obos. >> jim, the floor is yours. >> when i read tony's report, i thought it was a welcome relief. i think you're really making out the case. if the stock has gotten cheap, that there really is in many ways, even if that number that you think is the sequential revenue down, a case to be made that the stock is too cheap. what i want to know, you worry us a little bit about what you think is going to happen with qualcomm, but didn't give us the bull case, the potential collapse of deram and flash, chakd be in the offing within the next 8 to 12 months. >> components can hurt you and help you. to apple's credit, they're finding a way to get through a dramatic increase, looking forward, what's encouraging is the 7 plus is strong.
that's basically a sign that consumers are willing to pay more for incremental features and functionality. that's what the iphone 8 is going b to be. it's going to be a new form factor. it's going to be thinner. it's going to have a new look with an edge to edge display and no led screen and if apple consumers are voting with their feet and product red is doing well and iphone 7 plus is doing well, tha a great leading indicator that consumers are likely to embrace the iphone 8. now, with component prices happen ng the fall, all the more power to apple. i think that will help them, but what they're doing now is clawing their way to keep gross margins flat when the 8 comes out, they'll likely be able to raise price. if they get a component price tail wind behind that, even better. >> to jim's point, you are worried about this squabble and more with qualcomm, you raise it in the note you worry that
qualcomm could choose to retaliate versus apple and you asked tim cook directly about that. you say to tim cook, why would apple potentially take on those risks, that is a greater squabble with qualcomm, just in advance of what will arguably be your most significant and largest product launch in history? >> yeah. look, i think the risk of qualcomm retaliation is modest. but the potential impact on apple is enormous and one always has to consider that you know, expected value of expected outcome as a result. the risk is that qualcomm could say, look, we're tired of being pushed around and not being paid for what our intellectual property is and we're going to fight back. the little kid getting punched is going to put up their fists and say, if you're not going to pay us, we're not going to give you chips. if qualcomm doesn't share chips with apple, that's a big problem
for apple because there's no cdma source for chips in the marketplace today and that would be a big risk. i don't think qualcomm's going to go nuclear and pull that option, but being it's a possibility, investors have to be aware of that. >> tony, the stock's had a great run. $136.46 as i ask you this question. do you buy the stock at an all time high right here today? >> yes, i think you do. when we look at iphone cycles in the past, on average, the stock is outperform ed by about 0% in three months proceeding iphone launches and about 16% on average relative to the market in six months proceeding the cycles. the market is is anticipatory. we're going to hear more about this product going forward, its feature functionality. i think there's a real opportunity for prices to go up on the new iphone. i think there's a real opportunity for repatriation and
apple to buy back significant incremental amount of shares and the stock as you all have pointed out, remains very inexpensive. on any kind of price to cash flow metric. so, i think it continues to work. i stand by my assessment that you know, apple's not going to go up tenfold in the next seven years like it has in the past. and i do worry about what's on the other side of this cycle, but if you're looking to make money, you should be in the stock an i would be buying it today. >> good points to make. jimmy. >> yes, sure, i'm worried about qualcomm, but they've got to get the nxp acquisition done. tony, i want to put my hedge fund hat on. i wasn't always like thomas enjee enjefferson. you know if i call ed you at bernstein, you, you like it, but at 93, you were tepid.
how do you doeal with the o bish ware you wrote for the company versus the lazarus like -- that you wrote? >> i appreciate your call iing out on it. i still believe that apple's best days are behind it. this was the most spectacular stock and company in arguably the history of u.s. markets you know, revenue going up tenfold and revenues going up 15 fold over a b seven or eight-year period. there's to way that's going to happen again, but never the less, the stock is inexpensive and it's a trading stock and i felt at 93, that while i like the valuation, that uit wasn't necessarily the best entry point. i still -- >> tony -- it's not a trading stock. it's the opposite. it's an investment stock. stocks that go from 90 to 146 are not stocks you go in and out of. we don't want to be calling.
we don't want to be a hedge fund making three points and losing 40. >> i don't think we want -- >> you know what i mean. >> i don't think anyone wants to go in and out, jim, but the stock was at 135 and went to 90. now, it's gone from 90 to 146. that to me feels like a tradinging stock and you've got to be sensitive about entry points. longer term, is the stock going to go up multiples from where it is, i think that's very unlikely. can you make money in it in near to medium term and do we think the stock is undervalued currently? absolutely. would i pound the table and say you should own the stock for five years? not so sure. >> jimmy. >> why can't we value this thing at a protector and gamble. no organic growth. there's a bleach company, clorox, is this better than a bleach company? do you think bleach has as many pruks and uses as the iphone? can't we look at it like that?
bleach versus the iphone. this taste better than bleach. what can i say. >> i think the difference is that you made a great point when you first got on, jim, and you said that if apple can convince people that there's a recuring services revenue stream, it deserves an entirely different multiple. i agree and i've been pounding the table for apple to try to move its product offerings to be more of a service. the reality is that the recuring revenue is very small, like 5%. the iphone is still a transactional business model. what can happen longer term is margins can go down and replacement cycles can extend and that would put tremendous pressure on the company. i think the multiples change should, but the ability to do that on a $220 billion company is much more difficult than one
might imagine. >> jim, that was a great conversati conversation. >> the prosecution rests. >> the prosecution rests and since i'm the judge, i'm going to give the verdict. i think that was a big win for viewers. a great debate between you and tony. i know you'll have many great questions for tim cook in the exclusive interview you're going to do today. congratulations on that. we're going to see it tonight at :00 p.m. eastern. thanks a lot, good luck with tim. let's talk about this. tony, stay with us, too. maybe pete, you just buy it for the dividend, which no one's suggested yet. >> you're right. i don't think that's the way you want to approach this, but there's the possibility. you brought up repatriation. we've talkeded about the different sides of what they've been doing. but i think you look at what the company really is. when you go to the services and software side, that's been where the growth has been. it might be a small percentage,
but let's not forget, when i first bought apple, they had 5% of the pc and market. this is where the services with a billion users and 150 million subscriptions, that's why i think this stock has plenty of room to the upside. yes, china, but how about india? how about the growth potential over time in india? that's another leg i think that pushes this stock up above what tony's maybe not seeing in terms of vision of the future. >> tony was straight up in saying, he's still obviously with us, but the stock is at the highs of the day. it's still negative on the day. but it's well off the lows. >> pulled back to a monday low. he gives you a sort of reality check on the big picture of this business, but yet, but yet, says i'd buy the stock today. >> his analysis is actually, not saying it because he's on because i have no problem calling analysts out, but it's
brilliant and realistic. if you look at every consumer product out there, whether tv or pick anything else that it reaches a point where you can't innovate anymore and we start with televisions and we start with cameras. and that's sort of where the phone is at this point. so, in margins get compressed in india, they're not starting out with with a embedded base, where you have this whole infrastructure. in china, we've seen the challenges there. where you have phones that have more features that are significantly cheaper. >> without the ecosystem. >> guys like you are always missing though, it's about -- ecosystem of apple. >> pete, i'm with you on this, but i have to ask you the question. services went down a tiny bet sequentially. maybe because iphone demand went down and apple care went down with it, but that question needs to be answered. you and i have been b talking. apple services is where the growth is, it wasn't there. >> do you know they dropped their screen replacement cost from $100 to 29?
>> pete, why don't you answer that then tony, if you would, respond to the question that jim poses and however pete answers it. go ahead. >> i think when you're talking about the potentials going forward, you're talking about the fs is service themselves and the fact they're flat lining. >> this is the area you've sort of hitched a ride into. >> hitched my wagon and i'm not as worried about this particular quarter because of that. i'd be looking forward because when the cycle begins again, for china, that's when i think you see this kick in. couple of years ago, i talked to apple being a second half story. this year, because of the x, it's a second half story again. >> tony, do you opine on the service as part of the business wh which a lot of people are so optimistic about? >> sure, i think i have an easy bailout for pete on this one. in this quarter, they have a 13-year quarter, so they benefits from about a 7% boost because of the longer quarter in all their products.
so optically, it looks tougher than it is. i do want to go back to the core issue though, which is iphone is 65% of profits. on an enormous company. and increasingly, the iphone will be a replacement business. everyone has a smart phone in most of the world. india, maybe one note babable exception. but almost everyone has a smart phone. what we've seen with the partly cloudy market, with other industries is it becomes increasingly difficult to dif wrennuate the products so, the iphone 12 is probably not going to be that different from the 11. and replacement cycles e gong gait, so if you go from replacing an iphone from two and a half to three and a half years, that means you're selling 30% less iphones and on the margin side, they're 40% today. i think it's very tough to bet they're going to be higher five
or seven years from now. now, apple's working really hard to try and build a services business to try and off set that, but right now, that's very small. compared to the iphone and that is ultimately the challenge. >> tony, before i let you run, i want to ask you about tesla. you're new to the story as an analyst, but david einhorn, the hedge fund manager and tesla skeptic raised some interest in questions. i want to read you some of his quotes and get you to respond. he said markets are too optistic about tesla. for the time being, investors remain hypnotized by the ceo. he say we are skeptical the company will be able to mass model in margins that -- the enthusiasm for tesla and other what he calls bubble basket stocks is reminiscent of the march 2007.com bubble. as was the case then, the bulls
rejected met methods for a happenedful of stocks that seemingly could only go up. we don't know when the bubble will pop. it will. how would you respond to that? >> well, look, on tesla, i agree there's a very robust set of asunlgss that are built in to its valuation. you effectively have to believe that tesla becomes bmw or mercedes in size with superior profit margins to justify valuation. now, the big debate is can they do that. now, i think there are a lot of questions about whether the model 3 can be delivered in volume and delivered profitably. we probably won't know the answer for another year, but that's the key to the story. i think the bulls would say tesla defied wisdom many times before. no one thought they could build an electric car, no one thought a new car company would start in the u.s. and manufacture in the u.s. and they did it. so, the bulls would say for those who have misplaced faith
before, they'll be proven wrong again. i think if you look at the hard economics, it's tough to believe that the model three is going to be a really profitable car given where they're priced at. now, we'll see. again, tesla has deif fied skeps before, but i agree. it embeds a very, very positive outlook. about the ut motive market or about a new set of businesses tesla can build going forward. you can't imagine how this company might change the world in other ways going forward. the bears would say we're having trouble making economics work. i can see both sides. i don't agree with the contention this is something that is is reminiscent of the bubble that we saw in the late '90s. >> the bears would say ouch. there's the story today that tesla is a most painful stock. tony, thank you so much. for the being so gracious with
your time. i thought the conversation with jim was fantastic. see you soon. >> thanks so much for having me. >> someone want to make a last point about tesla quickly and we'll run to break? >> no. i want to make a point about apple and the growth of icloud as well as apple music, double digit growth there. the installed base up double digits. so if you're somebody like pete betting on services, that installed number has to make you happy, judge. then you look at watch sales doubled year over year. none of us on the desk have one of them, but apparently, a lot of people are buying them, so they are doing a lot of things right and what tony and jim said, that really set the table for i think another move higher out of the stock. >> i have no buyers, no owners of tesla. >> it's a battleground stock. it can go either way. you wake up, it's up. >> mostly going up. talk twitter real quick before we head to break. we know the stock is is north of 18. mark cuban on the air yesterday
saying he had bought it. >> moved the stock almost immediately. >> some call buying in twitter. >> not mountains. >> it's not a mountain, but active. >> and one of the things look for is the open interest. so, open interests are contracts that have been written, bought or sold. a long time ago or just yesterday. well, this hasn't nearly overcome that very large open interest, but there's you know, 4500 calls being bought at the 20 strike and about the same number at the 19 strike. people betting the stock could go up. they're cheap shots, so hat off to people like mark coupube ben that got this one right. >> thanks. halftime report is is just getting started. a hid, goldman sachs and the golden arches. the company making a rare admission in today's call of the day. next. before the break, our partners at kensho on what happens after apple misses revenue like the
company did last quarter. it's happened seven times since 2010. a week later, apple shares are up, while most suppliers fall. a month later, nvidia, amd and micron are the big winners. apple fares well, also. the halftime report with scott wapner is back in two minutes. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys.
today from wall street. goldman sachs updwrading the stock to a buy. they admit they're late to the party. we acknowledge we're upgrading near an all time high in shares they say. good call? >> well, at least it's good to get off the neutral. >> there's been five upgrades this month. >> yeah and because of the outperformance that you've had here, judge, i can't jump on it with them. i'd much rather on sonic at this level than chase the 16, 18% whatever mcdonald's is is up. sonic is up on. i like the opportunity there to move u another 15, 20%. if i owned it, i wouldn't sell. >> this one feels like it's go a lot of momo back. right? the comp's most recently, were good. it's more than just this all day breakfast, yeah? >> oh, yeah. this is part of the no analyst left behind program. >> so he's admitting he's late.
i don't think it's a lot of upside. they're lapping some easy comps, it goes in cycles. >> judge, not sure you don't go g sboo them as often as i do. i do the animal style. i buy the double cheese burgers and take the buns off and eat the meat. but when you're looking at the stock and see the boards, i'm getting there. when you go in there. >> it's calling tmi for a reason. >> double, double analyst. >> got you. so, you see the boards in there where they're advertising their products. basically tv screens. now, that means they can change at any time during the day and hide things that they don't really want you to see. that's an upsell because a lot of people looking for the dollar menu or value stuff, they don't see it up there, so what do they do? buy what they see up there. i think that's like under the radar thing that's been
happening in mcdonald's that's boosted these revenues. >> this is a throw in the towel call. even his earnings estimate, not trying to bash. >> this is about mcdonald's, not goldman sachs. >> talking about his estimates on mcdonald's for the next two years are up 7%. for that, you're going to pay 22 times? no, this is a value stock and always has been. all of a sudden, we're talking about it. it makes no sense. >> not that long ago, within the last couple of years, you're questioning whether how much they're going to -- >> it did a great job. they've done a great job. it's in the pipes. >> and give easter brook credit. >> maybe it's not fully in the price. >> 22 times for 7% eps growth is not a good bargain. that's not on the value menu. >> but i think they're willing to pay a premium at this point
in time when you've got predict bable earnings. that's what they have become. they have become predictable. they've got a great yield and when you're looking at their dividend yield, they're starting to fix things in europe. doing better in japan and i think the, you know, the idea of the easter brook understands how to mobile, the mobile thing has been a big deal. we had this big debate last week about starbucks. they've gotten, they'll be getting over that, but you take a look at what's going on with mcdonald's. the faster people can get in and out of there and with the improving economy, the construction workers will be going more. >> we're going to switch gears somewhat because we're less than two hours away now from the latest fed statement. the fed. and its statement. most don't expect the hype today, however, the language would be interesting. steve liesman joins us from the fed in d.c. we know the fed's not going to do anything today, but is the fed going to lay the groundwork for a hike at the next meeting?
>> i don't think explicitly. the market is listening to the fed today is how does it deal with the recent economic weakness and some uncertainties out there. it's expected to mostly look through them, but you can imagine different scenarios where the fed says oh, wait, there's all this weakness in the economy. we're bringing the process to a full stop here or you know what, we really dismiss ilt, we see this transitory, the recent decloin in inflation, there's plenty of uncertainty out there. the whole fiscal stimulus story seems to be a muddle. the best guess is that the fed looks through that and tries to keep the market on track thinking about essentially a 61% problem b bability. >> how can the fed make a decision on rates until it really sees what comes out of d.c.? >> you know, the fed i believe has positioned itself to say you know what, these are the
interest rates that we need for the current economy. and if if there's more fiscal stimulus, we'll do more. if it seems like it's needed. for example, the fiscal stimulus stokes inflation or creates too tight a job market, then the fed will creareact. what you see now in the fed's forecast, this idea of three rate hikes this year, of which one is done is hey, this is the economy we know now. and the uncertainty about fiscal stimulus, we'll deal with that later. worth pointing out, the people in our fed survey, they've shifted the effects of this stimulus into 2018. much more than 2017, look at the gdp forecast. we asked people how much did you change your forecast because of since the election? the bulk of that is now in 2018 rather than 2017. >> thank you. we'll see what's in the lang uae later on. what are we expegting? is there a risk in anything? >> i think the fed is on the periphery of the dialogue.
i think the real center is on trumpo nomics and the fed will likely at some point substitute balance sheet reduction for fed tightenin tightenings. i think yellen prior to her exit will want to start to norm aliz and start reducing the balance sheet. coming up, a trade update on john's bet and the energy stock options traders think is ready for a pop. double dose of unusual activity is just ahead.
it. mondelez, the voice over guy. very significant pop this morning. $2, so the calls when they were at 40 cents went to about 60, 70 cents on the highs today. i put on this 45, 47 call spread even though they were buying i think 46s yesterday and took it off this morning, rang the register. i've moved on after this one. >> you have a new one though. >> got a new one. >> criteo? >> this one is interesting because somebody getting in ahead of the french election and buys a stock in tranfrance, tra crto, a digital marketing firm, but it's had a heck of a run. gone from about 42 to 55. they come in and buy the double nickel or the 50 puts pretty aggressively, july 50 put, they only paid about a buck 60 for them. bought 6,000, but take a guess, judge, a month ago, it traded
900 contracts in the whole month. they bought 6,000 of these just ahead of the election, so somebody's nervous about the stock and or about the result of the election. >> grinteresting. pete? >> take a look at noble. this hit another 52-week high today, so we know energy is under huge pressure. did see some call buying in there. 10,000 of the june 30 calls purpsed around 45 cents. thoroughly aggressive. this chart doesn't look pretty, but somebody may be looking for a bounce that may come out of this. i did buy these. risk reward, i like this trade. i've got them for 45 cents. if it goes up, i can profit in the next month and a half, if not, it's 45 cents at risk. >> so you could be in it for six weeks. >> interesting. guys, come back this way. over to sue who has the latest headlines for us. hi, sue. >> here's what's happening at the hour, everyone. russian president putining the turkish president for talks on
syria, putin said the relations with turkey have fully recovered caused by the shoot iing down oa russian warplane in 2015. a large explosion shook a rebel held syrian town killing at least five people. a number of others were wounedded. the blast coming as the syrian government and opposition resumed cease fire talks. south korean protesters calling for immediate removal of the recently installed u.s. antimissile system. many local residents believe recent comments by president trump show that the u.s. is preparing for a preemptive strike against north korea. and ketamine may also help treat depression. a new study reveals it reduced symptoms by 5 50 patients felt relief in a few hours. over to michelle. >> thank you. coming up at the top of the hour
as sue said, about 19 minutes way wa way, the fed's latest decision on interest rates and their statement drops right during "power lunch." we're going to be all over it with instant reaction and analyst of course. facebook hiring thousands of f people to monitor inappropriate content. significant move that may that i think change the way wall street values the company and the new big risk in the e frtf world. got to hear about this one ch halftime report is back after this. "power lunch" starts in 19 minutes. top of the hour. don't move. ♪
♪ ♪ i'm dr. kelsey mcneely and some day you might be calling me an energy farmer. ♪ energy lives here. oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim.
hedge fund och-ziff seeing huge outflows. leslie picker following the money on that story. >> i want to focus on one big number here. that's $7 billion. that's the net amount of capital that left the funds during the first four months of this year. much of that of course was due to investor concerns over the company's settlement last fall with the sec and justice department over bribery charges, but the pain may soon be over for them. the ceo said yesterday that the firm is one quarter away from
stemming the outflows related to the settlement over the next three months, almost all their clients will have had the opportunity to redeem. its multistrategy fund was up during the first quarter and its credit fund was 3.2% higher. to put that into context, i want to talk about their $4.8 billion in net yoet flows during the first quarter. the net yooutflows for the industry was $5.4 billion as calculated by hfr. however, the industry experienced the lowest quarterly yoet flow since the fourth quarter of 2015, guys. >> interestingly, a big, big name, quiet name. in media circles, but interesting on the list. thanks. speaking of hedge funds, halftime report as you b probably know will be live from the sohn investment conference next week in new york city.
wall street's best and brightest are there. big ackman david iron horeinhor many more. going to share their insights and money making ideas to end childhood cancer. oil prices hitting a five hf week low. the energy trade is next. ready or not, here i come.ek.) ♪ anyone can dream. making it a reality is the hard part. northrop grumman command and control systems always let you see the complete picture. and we're looking for a few dreamers to join us.
hey, i've got the trend analysis. hey. hi. hi. you guys going to the company picnic this weekend? picnics are delightful. oh, wish we could. but we're stuck here catching up on claims. but we just compared historical claims to coverages. but we have those new audits. my natural language api can help us score those by noon. great. see you guys there. we would not miss it. watson, you gotta learn how to take a hint. i love to learn.
welcome back to the halftime report. crude oil sliding to five-week lows on data that showed a smaller than expected drop in crude oil inventorienventories. jeff, crude oil down more than 11% this year. seems like there could be more pain ahead especially since there are rumors we are not going to get this o p peck extension. >> i don't agree with that. still on the bullish camp. you're right, the oil bears, they have chalked up a little victory today. they broke some technical to the downside. it's all been predicated on libya. initially, there were production cut, now, an additional $250,000 barrels a day. it's talked in a volatility in the crude, to test the lower oend it have range. ipg the next 22 days before this opec extension happens, i think they get their ducks in a row and you can see crude oil move
heyer. >> are the charts telling you to be bullish, too? >> when you look at the chart noy, the daily continuous, there's a support at $47. we hit that level a couple f weeks ago. now, it looks like we're going to test that again. if we get through it this time, we go to 45. demand. that's what supports this market coming into this season and, you're right, four out of the last five weeks, it's been lower. that's something traders haven't seen at this time of the year in years. this market is bearish. it's looking ugly right now. >> okay. two sides to every trade. for more futures now head to cnbc.com and you can catch our live show tomorrow. "the halftime report" is back after this. this is where i trade andrs. manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities-
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let's do the trader blitz. gilead is lower. they missed on earnings and revenue. pete, you own the stock. >> i do. that was expected. they will miss on the earnings, miss on the revenues. their hep-c drug is too good. the problem, also, they've got a lot of cash and they're not u using it. they need to make an acquisition, build up the pipeline and make the company strong again. they haven't done it yet. >> twilio, doc. train wreck. >> they got some good news just maybe a week or ten days ago talking about amazon using their cloud services. now up supposedly uber is cutting back substantially. the stock just fell off a cliff.
i sold puts as a way of getting long. >> speaking of train wrecks, etsy and groupon, ouch. ugly. >> all we're talking about are train wrecks. e it tsy is a sad story, this is a company that really at its fundamentals should be doing better, showing more growth. their marketing expenses were through the roof so they're taking action, cutting costs and including the ceo. that never looks good. the stock will be in the penalty box. there should be growth here and you're seeing it on the top line. groupon, there's no competitive. anyone else can do the bargain a day thing. you're seeing that and they still haven't made money three years into the game. they should be by now. competition is killing them. >> are you sure you're done? >> you gave me two. >> you did double him up. >> okay. >> i'll defend you. >> fair point. it's called the blitz for a reason. you have akamai.
>> thank you, pete. you're right. look, akamai -- >> which you've owned in the past. >> yeah, and i played -- >> venal don't now. >> actually -- >> i've been waiting for that. >> like doc i puts on this this morning. i don't mind owning this and having been involved in the stock for a long time off and on, it seems like they just miss and get really destroyed every quarter, once a year or once a year and a quarter. the ceo is buying stock. i don't know why they're a public company. i don't own it because it will be taken out. the quarters are so lumpy but they're investing for the future. i think it's good. it will bounce back as it always does. i don't mind owning the stock lower. >> let's talk small caps. the iwm. small stocks, big returns. do you like it? >> small caps would be a primary beneficiary of any movement in
washington whether it's tax reform or regulatory reform. in addition the index consists of primarily tech and financials. two sectors which i like quite a bit. >> all right. we'll take a quick break. i can't wait for her to have that college experience that i had. the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss
tired of paying hundreds more a year in taxes and fees on your wireless bill? only t-mobile one gives you unlimited data with taxes and fees included. that'll save you hundreds. get two lines of unlimited data for a hundred dollars. that's right. two lines. a hundred bucks. all in. and now, the brand new samsung galaxy s8 is here. so what are you waiting for? get the new galaxy s8. plus get 2 lines of unlimted data for a hundred bucks. taxes and fees included. only at t-mobile. yes, i think we do. when we look at iphone cycles in the past on average the stock is outperformed by about 10% in the three months preceding iphone launches and about 16% on
average relative to the market in the six months preceding the cycles. the market is anticipatory. we'll hear more about this product going forward. i think there's a real opportunity for prices to go up. >> that is the number one ranked apple analyst, tony sacconaghi apparently moving apple on those comments that even though, in his view, the best days may be behind the company, it is still, even at these levels, all-time highs for apple a buy right here. that stock, as you see, is at $147. and, oh, by the way, jim cramer sitting down exclusively with tim cook, the apple ceo, today. you'll see the interview at 6:00 eastern time only on cnbc. we are very excited about that. wish jim well. let's do final trades. you said you bought more apple. is that your final? >> apple i did buy more. no, my final trade is acamai.
i think it's compelling down here and i think there's more upside in akamai. >> core voe had a great quarter last week. >> twilio bought it today. >> going back to the financials, gs. >> igm, north american tech. >> good stuff. good seeing you. >> likewise. >> "power begins now." indeed it does, scott. sthuch. welcome, everybody. i'm tyler mathisen. here is what is on the menu for a two hours of "power." counting down to the fed, a decision is less than an hour away. their take on the economy, interest rates, and much more coming up about an hour from now. apple still the stock of the day trading a bit lower after earnings yesterday but shortly the ceo tim cook, as scott just mentioned, will go one-on-one with "mad money's" jim cramer. we'll talk to jim ahead of his big sitdown and find out what he wants to learn from the chief apple guy. and ca