tv Fast Money Halftime Report CNBC May 19, 2017 12:00pm-1:01pm EDT
twilio and box up. >> had to shake that preference for tech stocks. >> ooing ik yoif got a combination of better earnings reports and the fact that the special counsel was appoints to calm the turbulence that sent nup the keep hole of a selloff on wednesday. we've recovered a lot of ground. >> guys, have a great weekend. go to headquarter, melissa and the half. t trz. >> welcome to the halftime report. top trade this hour, the rally that just won't quit. with us on the desk today -- josh brown, josh brown need as watch. we'll be along shortly. >> an apple watch. >> the markets wilding on gains following a volatile week that saw stocks suffer their biggest drop of the year. industrials leading the pack because investors shift their focus to earnings.
is this a buyal? financials catching a bin today, up by more than 1%. that fear trade that really spiked volatility on the big sell off, we talked about how weekly futures had gone into backwa backwardation. higher than the front than out the curve, that has reversed comple completely, so they've taken b that fear out. whether it was trump being impeached that caused people to hit the sell button. that's gone now. virtually vaporized. we're down to a vix barely holding in the 12s. >> yeah. did you buy? >> i was fully ib vest ed, so yu think about wednesday, it was really a one-day event. i think the market is telling us a few things. number one, it's not worried about whether trump carries on for a full four-year term or not. not getting into politics.
mike pence with a unified congress ain't such a bad idea. the other thing, outside of the politics, is h fundamentally driven, this rally? is it earnings or is there catch coming in from the sidelines and momentum? i happen to think it's the latter, not the former. the reason i say that is because there was about nine months ago this we came out of a market because we thought this the earningings recession was over. we're clearly seeing first quarter number, earnings are great. the recession is great, now, it's cash coming in off the sidelines, that's real. this market will carry further. >> what was so not infuriate, but frustrating, all the people who said this was driven by fundamentals, they're worried about the backdrop. you can't have it both ways, you're worry ied and that's wha helpeded us get here or you think it's drif and you come in and buy. >> we were buy ago bit and
fairly invested, but if you think about what's happened this year, we've had good earnings, up 10%. the market's up 7%. some of the sectors like technology, up 15%. energy, down 12%, so there are somedisparities and some could do with a little bit of correction. if you think about who is responsible for what, it's not a battle between the trump or earnings rally, it can be some of both. if it's a 12% gain since the election of which maybe 40 or 50% is is because of the president and 40 to 50% is because 60% is because of earn, maybe we have a total of 5% potentially downside. in some sector, we saw some of that in some to have name that is fell a lot on wednesday. then we had a security blanket with bob and people were feeling better and we're back tofundame. >> if it's a 5% drawdown in
markets, if we don't have the boost you're saying, if it's both, we don't have that both in terms of the trump trade and earnings growth, what is your forecast for stocks without any boother for trump if we saw a 5% drawdown because of the political environment? >> ik the most positive thing about the market is that we're at 4.4% unemployment and these people who have gone back to work and starting to get the benefit soft wage inflation are beginning to spend their money. you're saying better spend, more borrowing, people having better credit. i think that will show up in the gdp numbers in the second quarter. >> you're also seeing home purchases. that's one thing that's been missing for a lot of years and we're hearing the ma lmillennias are starting to buy. they've had it bad, they've graduated into a terrible job market, but now, there is growing worker scarcity in a lot of industries.
households are forming and they're buying homes. that is so good for this economy. >> when she's talking about i'm fully invested here, there's a significant amount of money on the sideline ifs r folks that are chasing, not that have given it to the supermarket people like carrie. if they're in there and hold, then days like wednesday when we have that big sell off, people just kind of say o kay, well, we took it down 1% or 1.5% and yes, volatility did spike, which created an opportunity for many of us. because we can feast on that. we can sell puts if we were so inclined and or buy more of these stocks. look at john deere today. >> i mean, but if you take a look at what's happened this week, it is stun ining to see tt for the week, the nasdaq is down by just .4. is every dip in this market a
dip to buy? is that what we have seen born out this week? >> look, the evidence is clearly that the answer to your question is yes, it is. now, ipg i think the corollary is where do we go from here. that's the right question to ask. let's say that the market doesn't tear higher from here. i think this is a great opportunity to take profits where you have stocks that are above your sell target, maybe they're too pricey, there are plenty of stocks out this that are cheap. maybe they're cheap for a reason, but i'll guarantee you, any investor can find out, stocks that they can buy today. >> nike, nike. look. >> i agree. >> we bought this earlier in the we're. i only own a half position. i had a buy target 35.50 to buy the next half. mid june earnings report.
i may wait to see what the earnings are before buying the next half, but i will tell you this on the show, if the stock gets down to 48 or 49, i'll be the other half of nike. >> and the pullback we saw this week because it's down more than 4 pes, that wasn't enough to get you to buy the other half? >> it's in a down trend right now. 53.50 was my buy target. scott made fun of me, got to 53.92. i'm not going to take you out to lunch. you're a cheapskate. it was the right thing to do. being disciplined in this market is key. sell the stocks that are above your sell target. buy the ones that are below your buy target, but i'm going to be disciplineded and wait for the bottom to hit. >> one quick thing. worried about interest rates going higher. you don't have that competition for money versus bonds. that's helpful. >> it's a good point. >> top on your buy list, john did you buy everything on the buy list? >> what did i buy today?
>> oh, look who strolled in. >> nice of you to show. >> wasn't going to come, but so much i disagree with. helicopter. >> today, i bought foot locker today despite the fact that this was a horrendous earnings report. when you look at the drop and it took it down to a gap that it established last ago when it gapped higher and people like josh at that because he's a good technician. he'll say sooner or later, you could go and fill that gap. we did it today in spades, we put out the note this morning saying we get down there to 61.50 or so where the gap began on the way up to 65, you got a tremendous opportunity to buy. just what we talked about top of the show. buy a stock like that on this severe dip today because many other competitors are going out. i know it's not a complete
sporting goods story, mel, it's not dick's, but a lot of people go there for the shoes and the rest. can't go to sport marts anymore. a lot of the others have fallen aside. i think these guys really do well going forward after the dust settles on this trump. >> hey, mel! josh. how you doing today. >> great. i think one of the things that has to be pointed out is that so much money seems to be b concentrating into the biggest 50 stocks. part of the story there is that technology companies are driving so much of the index earnings growth. it's not as though there aren't earnings from other sectors, it's just the growth they tend to focus on in a bull market and it tends to be b concentrated into these name, tech and away from tech, think about the best nontech blue chips. what do they have in common? their emphasizing in the
technological size. people are getting very bullish. walmart. the whole story there is tech. >> could that be a weakness in the bull market? this is why i say that? bank of america came out with an interesting note, the strongest in 15 years, part of this could be the push to pass the funds. getting a lot of money going in and buying the biggest cap tech names. that gives us maybe a floor, but maybe the opposite on the other side of the trade. on the one hand as josh suggested, there's this desire to own these big growth names at the top of the index and they're
driving everything from advertising to sales in china. if we think about where we've come over the last year, from a fear things were falling apart in china and emerging markets were cratering, now, we see they're improving. these are all buyers of technology. u.s. companies they're buying. look at sales force today. the earnings i think a lot of that is because world markets are growing faster than people expected and so, tech is the way to play that. if you're a u.s. investor. to say this is one sector and they all kind of look alike. we know they don't. it looks nothing like facebook and anything whatsoever. think about the chip sector. nvidia doesn't look like qualcomm on micron.
there's a little bit of something for everyone in tech. you want to be b a real high growth investor, you can be in amazon, nvidia, fabcebook. you want to be a big value investor, i am. so i like the cisco's, the qualcomms and intels of the world, but there's something for everyone in here. it's a little difficult to paint such a broad brush stroke for tech. >> i think overall, there's something to be said about this idea. it's really the software as a service and cloud services that's what's everyone wants to own and the stuff they seem to be shunning now is the hardware, nuts and bolts, away from semis. cisco is a great example, a good company. it does not have the type of rocket fuel oriented growth that companies that are more involved with cloud services have. or that a sales force on adobe. the software companies that have migrated their models away from a one-time enterprise sale and consulting contract, these are
the hottest stocks on the planet now. >> look at auto desk today. unbelieve bable. >> that ceo who was just on the team before us did a fab b louse job b describing why they're killing it right here. he and benny, those would be two stocks i would want to own for a long time. >> three big calls in the tech sector. anybody a buyer of panw or any other name? >> this will shock you. i'm a seller of puts in palo alto networks. say reason i say when i do that. and obligate myself to buy it if it falls to that point. if it doesn't, i'm warren buffett.
i get to look that premium and just hold on to it like he does with geico. >> i like that one right here. when you talk about it being low, is it an individual name higher and is there serious preem numb there anything to getting the stock? >> most of these are low. most that we talk about every day is much lower than it was. over the past year or two. you're not getting rewarded as much, jim shlgs and that's why i like for days like today. foot locker, where we have that big surge in volatility because of the drop. >> i look through the whole space. >> except for -- it's highly
concentrated with a handful of companies and investors don't want it. not saying it can't improve, but right this moment, this stock is under distribution. >> nvidia initiated outperform, the firm saying the nvidia story isn't over yet despite the stock at all time ties. this will either be great or terrible because the move, everybody loved the stock and hated it and now, everybody loves it again. >> i'm up over 100%. if you talk to 100 investors, zero would recognize the name genson wang because this is the man that's going to reinvent the
world as we know it. every single important breakthrough technology that's about the to completely upend society from medical to driving, you name it, is going to require gpus and nvidia is the one stop shop for the highest quality versions of those products, so if you don't know he is, spend an hour this weekend watching his keynote address from the gtc conference ten days ago. that's nvidia's developer conference. he goes through it segment by segment. everything this company is working on. not saying it will justify 40 multiple on earnings. it will explain why there's so much ferver for angalysts like the one we're talking about today. to come out, even after it's doubled and tripled and say buy it here. what's going on with this company is very unique. >> like it a lot. i thought josh had a great call on it last year. i've been in this name a lot. i'm still in by the way, amd and i like that one. i would buy more if it dipped,
it recover ed from about the 95 level back up here, over 1250 this week. lastly, cisco. saying the post earnings sell off is overdone. you're looking for other businesses, security business and internet of things to pick up for it, but it's not picking up enough. now, i hate what item about to say. it's strlt tog remind me of ibm. i'm not selling it, i'm hold in it. i long it. >> starting to sound like ibm. that's already a warning flag, and you're still holding it. >> let me draw a distinction. this is important. it has 30% of its market cap in
cash. they've been doing little 900 million acquisitions. >> they've been sitting on the cash for a very long time. >> there's plenty of international companies that can be bought. you look at qualcomm, that doesn't worry me so much. >> i just was going to say that you mentioned ibm as the comparison. you could say microsoft. and think what microsoft did after years of really doing nothing. they got their act together and it's not as if you're an owner of cisco and i love the name, but it's nine times earnings if you do a cash benefit and it's higher, but not much higher. if if you don't, so it's a cheap stock, they've got a lot of legacy business, but maybe it's fading. they could surprise us in the next couple of years and do something the way microsoft built up new businesses. >> do you own it for a surprise? >> a little bit. >> i'm with quou on that. i don't like the idea of co
comparison. keep in mind, ibm is a tough balance sheet. >> and kis cisco is not. i like it. >> all right. as for the markets today, dow, s&p on track for their best day in may. what a change from the beginning of the week. a lot more ahead on the halftime report. signs of life in the beaten down retail sector. if you buy in know, will that investment be back in style soon? plus, the options activity that could make you a lot of money. jon's on the case. the halftime report is back in two. 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.
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expensive. can shah even deere equipment? >> yellow and black. >> the name deere of the agriculture and equipment cycle and that seems to be what's playing out. deere came out, beat bigly and talking about guidance for a long time. i'm sticking with this name. >> apparently. that was deere equipment. they have this stuff in the backyard. >> you have a tractor. this is a hard call. if you're going to be in the credit card space, why not vi kai and mastercard.
they're still at 1.5 times, that's not where i want to buy back shares, maybe it's okay on 8.5 times forward earnings. >> mckessen jurisprudence ons an earnings beat. >> opposite of deere. not john deere. this one is screaming higher. whether it's health care, i.t., pharma, these guys medical devices killing it. stocks up better than $12 today. surging, which i owned it. michigan missed this one. >> it was a rough week for financial shares along with the others. higher today. you own this stock. >> citigroup is a bell weather there, but all that said, had a hard time getting past 62.
it should be 10 to 20% higher just to get to parody with its buck value. >> blackstone? >> silicon valerie, some aig and black stone. >> okay. none of the big banks. >> we thought the best way we could take advantage of rates gone higher and pockets of growth, particularly on the west coast was being west coast centered. silicon valley bank and first republic high net worth. also pay a high tax rate and in terms of aig and black stone, those are diversitied companies, black stone covers whel wen it comes to being a beneficiary of global growth, u.s. growth -- >> do you think black stone will turn into a c corp. because if it does, that's a huge home run for investors. >> i think it should. >> do you think it will? >> i think likely at least a 50%
chance. >> next up, unusual activity in the options market. one big name in retail about to take off. crude back above 50 bucks a barrel. this week alone is it time to jump into the trade? we'll debate that next on the halftime report. ♪ this is a story about mail and packages. and it's also a story about people. people who rely on us every day to deliver their dreams they're handing us more than mail they're handing us their business and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you ♪ looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that
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that. today, they're buying upside calls that end at the end o the second quarter. june 30th, they're buying that expiration specifically, the 79.50 calls. so, you can see, these calls have moved up from just over 40 cents you know day ago now they're trading at about a buck 20, buck 30 in that range, mel. about 7500 of them were bought like that. very quickly today. you know how i like the follow these guys. i'll probably be in the neighborhood of these probably two to three weeks. i like the set up for these guys for walmart into this and just like we said, technology is partly responsible for this big upsurge we're seeing. >> yep and speaking of retail, it's on pace for its worst week of the year despite earnings beats from gap, l brands, so so dinvestors just hate the sector?
>> this is a business and industry that has the potential to be a dinosaur and go extinct. what players in this space can't do is put sweaters in a pile and expect clients, mers to come in and buy. they have to do different things. josh and jon talked about jet.com. that has transformed walmart into a real e commerce player. one of the names i own, deep breath, j.c. penny. i like some of the things they're doipg. >> still trade sns. >> one of the things they just announced yesterday is that they're going to be a b to b commerce site to put bedding and sheets and stuff to hotels. that's great idea. the basic idea, they're doing something different. zbli thought you said bedding
with two ts. >> lot of the sheets and bedding at their hotels through a relationship with somebody. i guess what jim is saying maybe if more of these hotels are doing that. >> businesses are buying the sheets. take them, tie them together and climb out the window. you can't keep doing the same thing in this industry and expect to not gelt your clock cleaned. >> does that prove walmart doesn't need to beat amazon or catch up with amazon? >> no,s just need to serve their customer. their customer, not saying there's no overlap between the amazon prime customer and walmart customer, there's like 300 million people in this country and there's enough of an opportunity for both sides of
that. but jim is is right. you can't just expect we're up to 1997 to work in 2017. it's not. so i like ta walmart's playing offense and they have the capital to do it. it's like a rounding err roh rory if it doesn't work. if they have to right this off, it doesn't make a difference. this is one of the biggest revenue producing companies on earth. but is it work, the upside is so much more substantial. >> if they had to do it. here's the downside to that. i don't know. that kohl's can make that investment or j.c. penny. not only do you have to buy the thing, then you have to s subsidize it for years and staff it correctly. around in the process, there's a moment in every poker game where one player has so many of the
chips that it almost doesn't matter what the others do. they can win one, lose one. but it feels like we may not be there on e commerce. but it feels like we're really close. >> the s&p 500 now up .9. that's good for a gain of 21 points. nasdaq is up. we are seeing nices, strong g n gains in the financials up by 1.4% as well as the industrials. those are up about 1.5% at this hour. interestingly on a week we are seeing not too much damage in the end, the bond market is still seeing nice gains. the tlt, the etf that trags the longer yeld, it's up 1.5% on the week. is that a sign of caution is this even though the equity name, the equity markets seem to be covering? >> yeah, it is somebody swha of a sign of caution and so, you know, we have to keep this in perspective, that here we are, again flying high and everybody
stopped worrying and to the extent that wall mat is mart is 'tractive, it's an enormous presence of brick and mortar across the country, that may or may not survive in its current fo form. >> why don't you think of amazon as having a bigger presence, bigger physical presence and walmart using it as a warehouse. >> we own amazon and it's been a great stock this year. up almost 30%. do i want them to suddenly be in the federal express business and have grocery stores? >> well, they are. we might be sell lging some of it, but it's a risk. it's also a risk for the netflix
to produce more grammi iprogramn three combined. >> you're right, there is a risk, but i think what amazon has done two things really well, they've taken the calculated risks, then shut things down quickly when they've realized they've errored. you saw them do that with the fire phone. if that was a lesser team, that could have been four years of torture. they did it in like six months, but with the stores and mel's making this point, walmart has a store within ten miles of everyone that lives in this country. that's pretty noteworthy in terms of physical infrastructure. if amazon thinks it's to do groceries nationwide, they're going to need fulfillment nearby because things go bad. you can't really move some of this stuff, so it almost feels like to some extent if you flipped it around, if you invert id, you would say hey, walmart has a head start on lodgistics. >> when you mentioned that
yesterday, josh, about diapers.com, which were the guys the founders of jet.com, which got bought by wall heart, these are guys that knew how to deliver and how to compete against amazon and made a lot of money on the sale of that and now r in it again basically helping walmart become the monster in the e commerce space. >> time to get a news update with sue. >> hi, melissa. here's what's happening. wikileaks founder julian assange commenting on sweden dropping its seven-year rape investigation of him saying it's quote, an important victory for me and human rights. he was speaking from the balcony of ecuadoran embassy from london. >> while today was an important victory and important vindication, the road is far from over. the war, the proper war is just commencing. the u.k. has said it will arrest
me regardless. >> iranian authorities have extended presidential election voting for two hours because of the large turnout. both the incumbent and his hard line challenger casting their votes. it is the first presidential election since the country's nuclear deal with the west. and pippa middleton will marry her hedge fund millionaire fiance tomorrow. james matthews proposed to her last summer after a two-year court ship. best wishing. that's the news update this hour. melissa, back to you. >> another wedding. coming up, the the agony of defeat. get it? foot locker. defeat. shares stinking it up today. another retailer getting hit, too. president trump leaving the turmoil -- this is "power lunch." come on. president trump is getting ready if r his first overseas trip.
we're in d.c. speak wg a few lawmakers about where the economic agenda goes from here. burger boom alive on wall street. but first, much more halftime right after this. i joined the army in july of '98. i did active duty 11 years. and two in the reserves. our 18 year old was in an accident. when i call usaa it was that voice asking me, "is your daughter ok?" that's where i felt relief. it actually helped to know that somebody else cared and wanted make sure that i was okay. that was really great. we're the rivera family, and we will be with usaa for life. usaa. we know what it means to serve. call today to talk about your insurance needs.
where's jack? he's on holiday. what do you need? i need the temperature for pipe five. ask the new guy. the new guy? jack trained him. jack's guidance would be to maintain the temperature at negative 160 degrees celsius. that doesn't sound like jack. actually, jack would say, hey mate, just cool it to minus 160 and we're set. good on ya. oh yeah. that's jack.
crude up this week, we've got an e peck meeting, the end of may already. they're talking about deeper possible cuts. taking into consideration some of the production from the nonopec numbers namely u.s. shell producers. is this good for the oil space? >> keep it simple. follow the rig count. this is not a financial instrument oil. this is now purely supply and demand and supply here in the u.s. is what matters.
we'll get it to 130, it will be on "power lunch." >> you'll see it go up another nine rigs here in the west. that's just going to decrease it even more. >> they're going to extend it out nine months. out there nine months is what the optimism is about. we'll see if it holds. >> it's not enough to invest in the oil sector. tech's up 15%. i think you've got to take a look. if you don't, you've got to nibble at some of them. these things have a way of adjusting. >> what part of the oil complex. >> if we're talking about deep water rig count, buy some slummers, if you're talk iing about putting money into natural gas, buy exxon. >> or pipelines.
>> still hasn't recovered anywhere near the losses from 2015. >> i think oil is stuck in a range. >> if it's not tied to the price of oil, why did it collapse? >> i remember, we were on the show when we were discuss thg and it's a valid point in the con o text of oil going from 110 o to 30. absolutely. t not supposed to ek september when you have an 80% drop. where we are now, i think oil is stuck in a range, i don't care about the price of oil. i want to keep clipping that dif end it. it may not be as people sell it as if oil doesn't do x, y and z. we used to be b told they were. >> i don't think so that's true. >> that was two years ago. you're right. times have changed. zblncht president trump departing for his first trip aboard and expected to announce one of the largest arms deals in u.s. history. morgan? >> hey, melissa, that's right.
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is bouncing back today. up about 1.5% right now. ahead of what's expected to be one of the biggest arms deals in u.s. history as president trump visits saudi arabia this weekend. the sales are expected or the agreements are expected to total upwards of $100 billion with a potential to grow to as much as $350 billion over the next decade. now, saudi is the biggest purpser of u.s. arm, according to the state department has about $150 in active foreign military purposes now, so, among the agreements that are anticipated tomorrow morning, in attention to buy the thad missile defense system, also expecting a deal for lockheed made combat ships and more mi 82 da tanks by general dynamics. more mixes and combat vehicles from bae systems, which man f
manufactures those in the u.s. so, the xaeb companies have decliped to comment, but the stocks are hire ahead of these announcements expected tomorrow. analysts say this speaks to the fact global defense spending is increasing. that's a reason they're seeing strong sales internationally as well. it also comes ahead of the defense budget we're expecting here in the u.s. next week. >> i thought saudi arabia because the oil -- were lower, their defense spending would be in jeopardy somewhat. >> great question. we have seen it come down. in december, they released their forecast for this year saying it would be a 7% increase in spending, but with all the geo political risks we see in the region, iran gaining strength on the roll back of these sanctions, they are puing more towards defense. but the $350 billion number, people are skeptical about whether it would up the spending that much. >> you're in general dynamics.
>> i looked what morgan was saying about the tanks, to tanks for that, morgan. sorry, mel. but i do like that one in the space, but i think you could pick any of these and they're all moving nicely. >> i like broadly. i think it's really, broadly. i think it is tough to say which one of these companies will have the best quarter that we're currently in. if you just focus on the big broad trend in ita, this is the big stocks and anything you find an etf for this might have the best setup. it's just slow and study uptrend, never breaks down below the 200 day. gets bought very quickly on dips. rsi nowhere near overbought. mid 50s right now. this is the way to go, i think. rather than try to figure out what will buy which company's missiles next week. >> on the flip side of that, if you want to pick a company to keep an eye on, boeing is the one i want to keep an eye on. maybe saudi arabia will buy in
f-18s or something like that , but what i wait for with boeing, and i owned it and sold it earlier this year for 182. the middle east supplier bringing stocks down to 165, great entry point, because of the defense business we're all talking about here. >> so you were in the navy and you're buying boeing? >> so that's not good? >> no, i'm wondering -- >> the japanese trapped -- >> morgan, thank you. >> interesting. >> sub hunter -- i was a submarine guy. >> f-18 for navy as well -- >> moving on -- >> if you can't beat them, invest in them. 50 names on some of the biggest companies betting on, that's next on the report. unlimited plan? in taxes anr only t-mobile gives you unlimited data with taxes and fees included. that'll save you hundreds. get two lines for a hundred dollars. that's right. two lines of unlimited data. a hundred bucks. all in. and right now, we're giving you even more. for a limited time,
welcome back to halftime report. this week, unveiling the disruptor 50 list. looking at companies in the industry. venture capitalists aren't the only ones investing in startups. >> if you can't beat them, join them. 11 of the dow 30 invested in disruptor 50 companies. these companies are looking to avoid being disrupted by fast-growing startups and to drive their own growth by making strategic investments and partnerships with investments that could be the next big thing. an investment from disney as it works to figure out its vr strategy. coca-cola on interactive
experiences such as combining coke bottle answers spotify and merck invested in company proj di, personal dna testing, 23 and me and general motors investing in lyft. now of disruptor, banks are the most active. jpmorgan chase and 7 followed by american express with four investments. microsoft is next with three investments. this is part of an overall surge of corporate venture capital. since 2013 there are more than 5,000 corporate deals and more than $100 billion invested in startups by corporate vcs, according to pitch book. while they have their total r & d arms there is something about the innovative ideas of startups that is hard to recreate internally. you can find out more about the big trend on cnbc.com. melissa? >> thank you so much. julia boorstin. pe have about three hours until
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defense stocks. we talked about how fantastic the stocks are acting today. this stock was great in 2016. not so far this year. it's about flat. they bought lockheed's logistics business and they are starting toing a gtoing aggregate that. we expect it to have the same run as defense stocks. >> doc? >> pbh. watch this one, it is up about 10% on the air versus retailers. you're getting killed. why is that? because they don't have bricks and mortar to worry about. but they have the brands, tommy hilfiger, calvin klein. you name it, they make it. >> family mark etets don't worr you for pvh? >> well sales are still up. i think the guys getting hurt are the i goes that bought the discounts from pvh. >> right. >> tiffany reports i believe on wednesday. estimates going up. on one hand, signat not doing
well but european dealers doing well. stock is beat each of last eight quarters. >> joshy? >> jpmorgan. in jamie dimon's own words, u.s. economy is $100 trillion by to 20th 2 2025. it is impossible to believe jpmorgan won't thrive as that takes place. >> power lunch starts now. >> live in washington, d.c., welcome everybody. what a week it has been. first up, president trump getting ready to leave this hour for his first overseas trip. will it help reset his agenda or will his troubles follow him? speaking of the trump and gop agenda infrastructure is a big part of it. actually bipartisan. we will speak with two congressman on opposite sides of the aisle about their bipartisan plan to rebuild america. and can't get anything done without tax reform. will con guess get tax reform done this year?