tv Fast Money Halftime Report CNBC June 14, 2017 12:00pm-1:01pm EDT
and months >> perhaps, but for a very short time especially if we don't know for sure what motivated this gunman. >> john, thank you for that. john harwood, we'll await more developments out of washington as the house meets to hold a moment of bipartisan unit coming out of the alexander shooting. over to the headquarters and the half >> thanks. we start this hour with breaking news the latest from the shooting at a congressional baseball practice in alexandria, virginia one congressman wounded, three others injured president trump announcing minutes ago the shooting was also shot has now died you're looking at a live picture of capitol hill where speaker ryan is expected to make comments any moment now. we also expect nancy pelosi to do the same. we'll go there live when those events happen. kayla is at the scene in alexandria and joins us now with
more >> after the president announced the assailant had died, pete williams reporting the assailant, james hodgkinson, age 66 with an illinois driver's license, died about an hour ago. pete williams reporting it was unclear if police were able to speak with the suspect en route to the hospital. there were five people here that were transferred to a hospital earlier this morning the shooter opened fire at 7:09 a.m. it took three minutes before both capitol police and members of the alexandria police and fire department to respond and get it under control residents here say it sounded like construction. it sounded like fireworks in the beginning, but then it became very clear it was a fire fight to use the words of people in this area. many of them called 911 and the response was very, very quick to
that the president when he spoke a few moments ago urged a message of unity in the wake of this moment's events. take a listen to what the president said this morning. >> we can all agree that we are blessed to be americans. that our children deserve to grow up in a nation of safety and peace. and that wefr we are strongest when we are unified and when we work together for the common good >> the republican lawmakers were at this baseball field practice ing for a charity baseball game that has been happening for decades. that is set to take place tomorrow night and just a few moments ago, a democrat from california said the congressional baseball game is on we will play for charity, but also for the victims and heroic officers who took down the shooter, so it appears the game will be played it has of course going to be a
moment of bipartisan support for these lawmakers who have been playing this game for some time, but of course, this event today adds a new level of depth to what they will feel when they play that dwam tomorrow night. finally, i want to say what nbc news has reported about the shooter who has since died they said he has a history of arrests. in 2006, he was charged for assaulting a girlfriend and at the time, police recovered a 12 gauge shotgun from james hodgkinson's home, so we are learning more details about this suspect as the day goes on and we'll bring you more details when we have them. scott. >> thank you so much, kayla reporting live from the scene of that shooting in alexandria. also want to remind you, once again, it is imminent we expect to hear from the speaker of the house, paul ryan, nancy pelosi expecked to make comments from the house floor and we'll go to washington, d.c. live for that we're also following what's happening in the markets today
the dow hitting a new high off the open it's been a topsy tur vi sort of a morning. it's in positive territory, up nearly 10 points s&p remains negative you can see what else is ha happening in the market. if you are following what's happening in the markets today, note the yield of the ten-year note at 2.11%. the bond yields dollar at fresh lows of the year today a pair of disappointing data points we'll discuss all of that with our panel for the hour josh brown is is here. stephanie link, sarat and jon. also, andy chase is with us onset. morgan stanley private wealth adviser. barren's number one adviser for 2016 great to see you in person thanks for being here. >> thank you >> so, let's talk about the market today and i'd love your reaction first to what we're witnessing at the same time, we're hitting a new
high for the dow, hitting a new low for the year in rates and that move has been stunning. >> well, the way i rook look at it is i think they're connected, very connected because i don't think the market hitting new highs is a result of growth and earnings growth. i think it's a result of how you value assets and when interest rates go down, it inflates asset prices everywhere. assets are worth the summation of cash flow in the future makes everything work a lot more >> you feel like this market is poised to reboot this rally last couple of days of sort of you know, been a little bit interesting with what's happened with these large growth tech stocks it's forced people to reconsider where we are where are we >> i think the market has been rational about how it keeps moving ahead just a little bit every day. or at least it felt that way to
me i keep getting the question all the the time, when we get this correction my standard answer is do you think manhattan real estate is going to correct tomorrow, miami, where ever you're from. i just don't see it. there's no place for the cash to go at this point 0 to 1 in a cd, 210 in a ten-year treasury is not that appealing to people. i think it's going higher. >> funny, we talk about this bank of america merrill lynch survey of fund managers out within the last couple of days and now, three quarters of respondents think stocks are vaa valued they think a correction is coming and we wonder whether that's a contrary indicator about what we are. where do you think we are? >> whether that's a kindling, for us to go significantly higher still you hear it on our network all the time how much cash is on the sideline how afraid some clients are about putting more money in. or they have aggressively asked
in many cases, whether it's etf flows, mutual fund flows, taking money out here, waiting for something like friday or monday, whether or not they have the timing right to get back in, we all probably know the answer was no, they didn't have the timing right probably but i think they're, that nervousness can be something you play off >> and i think to add to andy's point, one of the things with with interest rates so low, your dollar is getting weaker as well, so that's helping corporate profits, getting multinationals in the market you have energy prices going down, so you have a tail wind behind the market, but you have s sectors where you're going to do well and some you need to avoid. >> the tail winds we've been speaking of are the trump agenda and the economy itself there are some signs out there that the economy is slowing. if you look at you know, the autos, appear to have piqued retail sales today, weak you could point to a number of other indicators that would
suggest other than hiring and jobs, even though that most recent report, that it's slowing. >> i think it's slowing. most people thought we would get to 3 to 4% in the second quarter and i think the data we've seen suggests more like a two, 2.5% gdp. not a recession, not a disaster, but i think that coupled with what sarat just said, having low interest rates of okay, sorry. low interest rates, weak dollar, weak oil prices. that's actually very good for the consumer and if you look at the retail sales numbers today, actually, online seales were good 10% year over year buying for the house, home improvement was up 14%, so i think there are pockets of the economy that are still okay, they're not robust, but good enough for i think you to own stocks here at these levels. >> big event this afternoon will be a fed decision on interest rates and cnbc's senior reporter, steve liesman, is at the federal reserve right now.
steve, we mentioned what's happening in rates today, but if there's another area of the market that seems to be telling, what it thinks the fed may do or say later, it is the financials. the xlf is down almost 1% as we're having this conversation you've raise d the issue yoursef as to whether the language is going to change and if it does, the implication is it's not going to be good for the banks >> yeah, so i had two opinions, one at 8:29 and wup at 8:31 this morning. four months in a row of weakening core inflation this creates a huge dilemma for janet yellen and the market committee. which is they have unemployment at a 16-year low and inflation going the wrong on her and them and the idea of the textbook says it's supposed to go the other way. supposed to have rising inflation amid lower unemployment and it's not
happeni happening, so my best guess is we're still on today for a rate hike, but i think the idea of a september hike, which a lot of people had dialed in 54% in our survey, i think that goes, becomes much more uncertain and i think the idea is the fed's going watch this inflation data, not so much the retail sales data, i think stephanie had that right. an upward revision last month, so today's number was below forecast but, the two together is about an inch when it comes to the growth forecast, but the inflation data is what's worrisome. it's weakening, going the wrong way and there's going to be guys like charlie evans from the chicago fed who are going to step forward and say, hey, remember our promise to be symmetrical on either si, we we going to do this, they're going to step up and say maybe this further hike, the third hike of the year is the one i would say is expressley in danger >> and cramer has made the point over the last couple of days that today's decision is going
to be a binary one for the banks. that if the fed does what you think it might, if charlie evans and his colleagues rule today, that you could have an outlook for the financial stocks, not being so positive as a result of where rates are and the fact the yield curve itself is is flat ling >> no banking analyst, my reporting covers the things that affect banking stocks, but i would suggest that a smart bapg investor now would be investing in banks for reasons other than an expected increase in margin i would think i would get off that particular train and say that one's just not coming in. it's not coming in because you've been waiting for a for a long time. there was promising just put up. the 210 spread is sa proxy for that it was up near 135 basis points. the difference between two and now, it's down it was 85 yesterday. i didn't check it again today, but i'm sure, what did i say
now, 81, seeing that now that's a pretty low, very flat curve. find other reasons to invest in banks other than the fed hiking rates. >> we'll see what happens later this afternoon be back to you then for that thanks so much from the federal reserve. so josh, to you. if you have to get off of the rate increase train as a reason to own the banks, can you find me a reason it makes sense to do it because everybody on the desk loves the banks. >> i own some financials, they're not all banks. they're doing pretty well. jpmorgan stock looks great i'm in mastercard. vi ksa looks great >> you know where i'm going. >> wait a minute talk about the big bank. citi, morgan b b stanley, goldman, jpmorgan. >> don't be so quick to dismiss because these are financial stocks that happen to be in the dow 30 and they're among the top 50 components of the s&p 500 the point being, yes, there are five money center banks we talk about them day and nigh. they're not terribly important to the stock market, although we
pay attention to what their prices do, which is little look, i'm in the camp there are some secular issues going on there are first of all, global second of all, technological, either of which the fed has any control of whatsoever. that's number one. so it doesn't really matter. number two, if you're focused on that, you're missing the big picture, which is we have low and slow economic growth, it's lumpy. some quarters, looks like a recession is imminent. reality is neither is the case 2% a year. that's what we've seen almost the entire time of the recovery. i don't know why this is so hard for people and it's not terribly important, stock prices, look what's making a new high as i'm talking now. xlv, health care xli, industrials they have nothing to do with each the other, you call defensive, the other, aggressive growth it's irrelevant. they're going higher they've got great corporate outlooks trump agenda not with standing
that's a cherry on top the tech rep from friday look at the bounces in facebook. look what's going on right now with google share price, amazon. huge balances, huge recoveries nvidia, we'll get to later so, i think if you've been overly focused on month to month macro data over the last five year, probably you're underper foming and not making people money. >> andy, you want to comment on what you've heard from the gang? >> wow, kind of agree with everything, which is pretty rare that you would agree with everything on these kind of things first of all, on interest rates with stooefrks i think we are if the fed's job is to control inflation, it doesn't feel like there's too much money chasing too few goods out in i keep telling people i'm 1% worried about inflation and too much growth and 14, 15% about something going wrong in the world than we get another dip for whatever reason. i absolutely agree that i think we're going to gkeep limping along. nobody likes to hear it, but it might be ten or 15 years a rong time, but in that vi
environment, you get into valuations on markets and my get is is that's good for business i don't like to use the word stocks anymore but businesses -- businesses ability to grow earnings with better they don't grow. two bucks plus two bucks and it's the same. >> that saying what you just said -- >> hang on, lgo to paul ryan on the house floor. >> our brother, representative steve scalise, two officers and the staffer who have been shot bless the hands of those who tend to their injuries we as americans are blessed by a free and open society with rights secured by law and the constitution once again, we are reminded that there is a vulnerability that comes with that openness
may we all be village lent in being good citizens, neighbors and defenders of our way of life at a time when so many challenges to our way of life and government seem under siege. we thank you for the men and women who respond to the crises that befall us, especially the capitol police and all first responders may their heroism and generosity of spirit be an inspiration to us all and may they be assured of our appreciation of their service. and in this great silence as we are gathered most dramatically as this assembly, the people's house, may republicans and
democrats be mindful of the rare companionship they share men and women who have taken very public responsibility for our country that carries so many burdens and today, the reminder shared danger. may this day be characterized by kindness, good will and compassion one to another. god bless america. and may all that is done this day be for your greater honor and glory, amen. >> amen. >> the chair's examined the journal of the last day's proceedings and announces the approval there f o pursuant to clause 1, the journal stands approved. the chair will lead the house in
the pledge i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation, under god, indevisab indevisable, with liber eerty ad justice for all. >> i ask advising senator to address the house for one minute >> we are expegting the speaker of the house to speak, looks like he is going to do that right now. >> there are very strong emotions throughout this house
today. we are all horrified by this dreadful attack on our friends and colleagues and those who serve and protect this capitol we are all praying for those who are attacked and for their families steve scalise, zachary barth, matt mika, special agent david bailey, special agent crystal greiner, we are all giving our thoughts to those being treated for their injuries at this moment and and we are united we are united in our shock we are united in our anguish an attack on one of us is an attack on all of us. [ applause ]
i spoke with special agent bailey and special agent greiner this morning one was being treated and one was about to go into surgery expressed our profound gratitude to them. it is clear to me pabased on various eyewitness accounts that without these two heroes, agent bailey and agent greiner, many lives would have been lost [ applause ] i know that we all want to learn as much we can about what happened we just all received a briefing from the sergeant of arms. i have complete confidence in
the investigation being conducted by the capitol hill police, the fbi, who are also working with local law enforcement. i know we want to extend our gratitude for the outpowuring of support we've refed from the capitol and throughout the country and now, knowing steve as we all do, he is likely really frustrated he's not going to be able to play in the baseball game. i know he wants us to commend the bravery of those who came oth aid of the wounded in the coming days, we will hear their stories and we'll have the chance to hold up their heroism. my colleagues, there are so many memories from this day that we will want to forget and so many images that we will not want to see again. but there is one image in particular that this house should keep. and that is a photo i saw this morning of our democratic colleagues gathered in prayer this morning after hearing the
news you know, every day we come here to test and to challenge each other. we feel so diply about the things we find for and belief in at times, our emotions can can clearly get the best of us we're all imperfect, but we do not shed our humanity when we enter this chamber for all the noise and fury, we are one family these were our brothers and sisters in the line of fire. these were our brothers and sisters who ran into danger and saved countless lives. so before this house returns to its business, let's just slow down and reflect to think about how we're all being test ed because we are being tested right now i ask each of you to join me to resolve to come together, to
lift each other up and to show the country, the world, that we are one house, the people's house, united in our humanity, it is that humanity which will win the day and it always will god bless. i yield. [ applause ] >> gentle lady from california seek recognition >> mr. speaker, i rise to join the distinguished speaker in paying tribute to the brave member and women of the capitol hill police force and also in
sadness, for the assault that was made on our colleagues and members of this staff. to my colleague, you're going to hear me say something you never have before. i identify myself with the remarks of the speaker they were beautiful remarks. thank you so much for the sentiments they represent. thank you so much. [ applause ] again, we are not one caucus or the other in this house today. but we speak for each other in se ing that we send our thoughts and prayers to our colleague, ste steve. personally, we have our italian american connection, so as soon as i heard his name, i was filled with concern as i would be for anyone here, but we have that special connection, so our
hopes and prayers and i said to the speaker, i'll be asking you every five minutes how is is steve coming along and also for zach barth and roger williams office, matt mika, a former staffer and of course as the speaker acknowledged, crystal greiner and david bailey and acknowledging their sacrifice and how fortunate we all were that they were on the scene scene because other lives probably would have been lost. i want us to remember that every single day, the capitol hill police protects all of us, takes ris b ks ks for us and while a like this is a time where we can focus on it so sadly, it doesn't mean that other days aren't as challenging. i especially want to call attention to david chestnut, who
1988 it was, in july, lost their lives protecting the congress, the capitol. not just the members of congress the staff, the press and our visitors people who come to see this capitol, this great edifice to democracy. known throughout the world so they are protecting a great deal and it is an attraction and that makes it all the more risky. you may not know this, my colleagues, but every time i pray, which is very frequently and certainly every sunday, i pray for all of you. all of you together. in earlier years, i used to pray for your happiness, for the fact that we would working together heed the words of president kennedy closing of his inaugural address, when he said may god's work must truly be our own
how do we view what god's will is is for us, how do we come together to give confidence to the american people that as our founders intended, we would have our disagreements and we would debate them and have confidence in our beliefs and hue mill tmi listen to others but in more recent years, i have been not only praying for that, but for our safety because i above anyone in here and i can say that quite clearly, have been probably the target of more, on the political target, therefore the target of more threats than anyone. perhaps other than the president of the united states barack obama and so, i prayed for barack obama. and now i continue to pray for him and i pray for donald trump. that his presidency will be successful and that his family will be safe because it is about family we are called for a purpose to
this body. it's a great thing and we know what it means to each of us to serve and we recognize that in others and we also recognize that you have your constituents, we have ours and we respect you and your constituents who sent you here all worthy of respect. but we do have our differences and so, i pray, my prayer is that we can resolve our differences in a way that furthers the preamble to the constitution and today, again, it was, it's a, again, it's in the family it's an injury in the family for the staff. and for our colleague. and for his leadership as i mentioned just a minute ago
in the -- sports rs a wonderful thing in our country probably one of the most unified. i think the arts, we like to say music or plays or whatever, but sports really bring us together. in our cities you see people have the biggest differences of opinion on politics, yet when their team is on the field, people come together so when this team was on the field practicing in such a, with such comradery and such brother ho hood, i don't know if you had any sisters on your team, we have two on our team for this person to take this action was so cowardly so cowardly. e we'll learn more about motivation and the rest of that, but it seems particularly sad, although any violent death of course is sad, but particularly sad that at a time when people
want us to come together and we're prepared to come together tomorrow night, that this assault would be made. but we cannot let that be a victory for the assail i canant. so tomorrow, we'll go out on the field, root for our team we want everyone to do his or her very best. we'll use this occasion as one that brings us together and not separates us further again, i want to thank the speaker for bringing us together and gerngs with endless gratitude to our capitol hill police, in particular today, crystal, david, but never out of our prayers, detective john gibson and officer jacob chestnut thank you, my colleagues for the opportunity to share some thoughts with you on this sad day. steve and others, you are deeply in our prayers we count the minutes until you return please convey that to him, mr. speaker. thank you.
>> that is nancy pelosi speaking on the shooting. so cowardly, she said. and quite a moment before nancy pelosi when the speaker of the house, paul ryan, was making his remarks. he said an attack on one of us is an attack on all of us, e liss itted a standing ovation on very floor of the house. also paid tribute to the capitol police what were on the scene today. returned fire, killing the assail i can't the speaker saying without their presence today, there have been ma more lives lost. john harwood, the speaker saying we are being tested right now. reffing the discourse that exists between democrats and republicans in the current environment. >> that's right. this is one of the rarest moments you see on capitol hill. where all of the partisanship was taken out, where both paul ryan and nancy pelosi in
different ways, were speaking about members of congress as a family sympathizing with one another. reaching out to each other we'll see that again at this congressional baseball game tomorrow night we don't get enough of that in our politics in fact, we get it almost never. but when tragedy comes home to the capitol as it did today, that's the kind of response we have and i think everyone watching around the country can understand where it comes from >> appear we've learned the names as well for the first time, john, of not only representative scalise whom we knew about being shot and injured, but some of the congressal staffers who were there, then the brave capitol police persons who were on the scene. returned fire and then as we learned from the president, that shooter has now died >> that's right. and as senator rand paul said earlier, in one of the interviews, following this event, had it not been for those
two police officers, this could have been a massacre with the gunman armed with a rifle and a bunch of lawmakers and staff out playing baseball but they were there because of steve and the people implicated or involved in this are not only the gunman, but of course scalise, a staffer from texas, a former staffer as well as those two officers and we'll wait and see how they are care proceeds at hospital and how badly they're injured. we don't know the facts about that yet, although we know steve went into surgery today. >> john, thanks so much. from the rotunda with the latest there. it is the bottom of the hour in the east let's go to sue now who has the latest for us. >> indeed, and as you know, scott, it's a developing story so here's what we know at this
hour the house majority whip steve c scalise of louisiana was indeed shot in the hip by a gunman at a congressional baseball practice just outside of washington several other people were also hit. they are listed in critical condition at george washington university hospital. officers who were part of the security detail returned fire and wounded the shooter, identified add 66-year-old james hodgkinson, there's a picture of him. he was taken into custody and later died of his wounds president trump had this to say. >> congressman scalise is a friend and a very good friend. he's a patriot and he's a fighter he will recover from this assault and steve, i want you to know that you have the prayers, not only of the entire city behind you, but of an entire nation >> the 51-year-old scalise is
the number three house republican leader, first elected in 2008. as john harwood mentioned, he did undergo surgery. he is out of surgery he is said to be doing well. hodgkinson, the shooter, had a history of violence. law enforcement officials say it is not at this point international terrorism. so that is the latest as i said, it's still a developing story and we'll be back to give you updates scott as they warrant. back to you. >> thank you so much back to our conversation about the market we mentioned that the dow had hit another new all time high today. somewhat muted reaction for stocks today dow's currently up 13. andy chase, we left things off talking about earnings and the impact that improving earnings could have on stocks how reliant are earnings on the market taking another leg higher, the multiple of the market increasing to propel stocks hee
eric, the trump agenda and the impact it could have on the multiple to market earnings. >> i'm not sure b i believe in the trump agenda we've seen how hard it has to get something done in washington in general the infrastructure and energy, i'm not sure i buy it's going to be that easy to get that through. >> what about tax reform there are suggestions that it could be an increase of $10 to earnings and that in and of itself would expand the market multiple >> that one i think has a good chance i don't think it's factored into pricing. i'm not sure people believe trump can get things through it's pretty big. you lower my taxes, i might spend more i don't think he's going to have to fight on wall street getting a break here that he might have had keeping jobs in the u.s. because we don't want them going to singapore or amsterdam or something like that. and repatriation of the cash that i think is equally
important, but particularly skewed to tech and medicine tech with a lot of tacash offshore. i think both are really not factored in yet. not sure the likelihood, but what i say they're much more likely to get those through than others, yeah, i do >> there's been a suggestion that maybe, the market isn't all that reliant on the rest of the trump agenda at least in the near term because the economy, it was performing well enough to carry the load as josh has said and others have made the point, too, that the rest of the jepd was the cherry on top. >> better than that. >> but if the economy is slowing, does the market itself become more dependent on particular parts of president trump's -- >> the s&p 500 companies and this skews even higher toward the top are taking in something like 65 to 70% of the money they're making from overseas europe is growing at twice the rate of the united states. probably when the dust settles at the end of this year, emerging markets are now either
no longer deaccelerating or growing very rapidly, depending on which your look iing at and those are the customers of the s&p 500 companies of the ten years, not the last so, can we plug away at relatively slower growth compared to other recoveries throughout history and then get the benefit of a, a moderated, moderate iing dollard brk, a faster growth situation overseas then add in this thing that we have not had, which is a household formation burst, not going to call it a boom. but the number of 35 to 39-year-olds in the united states is now back toward piquing again. this is what you need to have a good consumer economy, a good corporate situation, inflation is not bothering us. the dollar is not bothering us the banks are in better shape than they have been in the long time could something terrible happen? sure, but absent that, this is not a bad scenario
>> low oil, low dollar leads to an acceleration of growth here that maybe the first quarter was really the low point better in the second quarter, but then the environment as a whole actually isn't so bad sh right? and to everybody's points, corporate earnings are better. consumer is is better. consumer is 75% of gdp an they are really doing okay. they're not, they're not spending at the department stores webb that. >> but rates are low what happened animal spirits in m and ark. where's that capital investment what's that? rates have been low for as long as i can remember now. >> what you are stating to see, we talked about a couple of weeks ago, i think you're starting to hear about the companies spending more business investment that's been what has been miss ng this recovery >> and a lot of people have been waiting judge for exactly what andy was talking about the repatriation if you get that, you will see mainm&a.
>> and because the m&a is happening overseas, you'll see that on our side right now, people sitting back >> andy, last question to you. 2439, where the s&p is today do you have in your mind where it could be by the end of the year up another 50 to 100 points or low er >> i think market is going higher ibts this last time i was on, that i thought the market could continue to march. we're right on track my guess, we finish you had the year 15% we're halfway there by the epd of the year. i think we can keep going. it doesn't take that much to do it i think earnings is going to be average. not enough to make any ceo or politics happy, but the way, if bonds were paying 10%, i wouldn't by buy a business paying more 5% either, but when bonds are paying two, business stock are very compelling.
set it free. see you around, giulia call your attention to shares of nvidia up another one and a quarter percent today. up more than 2 0% in the past year goldman theys this stock has room to run. the firm ups its price target today to $171. the market has yet to fully appreciate the growth potential it says in gaming and data center we've made it our call of the day. a span of seven days or whatever you want to call it. this has become the battleground stock of the market. >> this is a 1.5 beta. if you want to be here, you could get knocked out in day if you're overly leveraged or whatever, so it's going b to be volatile however, let's look at the
longer term fundamental picture that goldman and others have laid out quickly they're talking about video game potential, so the nintendo switch probably is going to ship more units than consensus. the buzz around nintendo switch is incredible and everyone of these units has an nvidia chip in there but bigger picture because that's current business, the data center biz for nvidia is in its infancy. it's $1.6 billion revenue rate with a total address bable market ultimately, somewhere around 30 billion if estimates are to be believed i remain constructive on the stochblg i'm in it and not doing anything with it >> doc, ths almost a good indication of the market sort of overall. questioning the battleground that now exists, are stocks themselves overvalued? is there more room to run? is nvidia overvalued
more room to run or take profit sns sfl when they take thim down fast, that's a nice time to buy. we say that. but you have had several opportunities. the opportunity here in this name you had it in apple. in amazon just friday and monday this past week i think you've got examples of times to buy them versus half to buy them josh is holding i don't blame him. if he were me, he'd probably be selling upside calls since he's a long time hold guy, it served him well >> makes you want to hedge makes you nervous. >> that's why josh has had 100 winner in this name because hounding the table when it's 55. zpl ran from 50 to 100 there was a temptation to hedge. went to 120. then if you henled, it backed off. the nature of these things is you're either a nimble trader and you're laser focused on things like strikes and explorations or you're not shouldn't be an amateur.
you're either doing that or not and i am not >> one year performance, 219%. sarat, you own a little bit? >> we do >> what's a little bit >> probably a third. >> billion dollars worth >> it's interesting when yoi look at a stock like this. so little growth in the market 2% growth. these are stocks that are really growing, so when you get the opportunity to buy them on the pullback, that's what you want to do. but this is not for somebody who wants to time the market and quarter to quarter because this thing has real growth in it, but also will miss a quarter here and there and when that happens, the stock could not pull back 5 or 10% >> that's here in lies the point that cramer has made and i know i've cited this already a few times over the last few days it's the exact point where else are you going to get this kind of growth and not only nvidia is the name that comes nup that conversation, but the fangs.
the 25 to 30% year to date gains that the stocks have had two-day pullback in those names. >> when ever you get that magic that with jack just pulled up. >> as jim said, money managers are going to go back into those names the first opportunity they have because where else are grow going to get that growth >> it's a good question and i own some of the fangs. three of the four then you know, you own microsoft and wham research and they kind of went up together. so, i've been pair iearing backe lamb research, up 50% year to date it's not expensive and you are get iting the growth, but i fee like these stocks are so well owned and what's your incremental buyer, so the fundamentals are good. not suggesting you should sell them all, but when you have gains, you buy them now. there is one chip company that i like a lot and it has fallen
broad com. that stock actually is still good value because it's trading at a 10% discount and i don't think it should be there. they have m&abuyback, a ton of cash i'm going to look at individual companies where i can get comfortable with the valuation that's where i'm going >> you raise a good point and that is the difference -- and there was another note out on this very topic within the last handful of days. overcrowded -- we're talking tech overcrowded versus overpriced. overcrowded, yes overpriced some some but not all >> 48 times forward earnings is expensive. i get the secular growth you have to pick your spots. you cannot have an entire portfolio of high growth stocks. >> if you think nvidia earns in 2019 which is what goldman says is like their base case, you're
paying 35 times for it it's growing faster than any of the f.a.n.g.s. >> and here is one of the f.a.n.g.s, alibaba when jack says -- >> the best performing big cap stock no one talks about >> data centers in indonesia and india as well as they're saying they're going to in 2018 -- away from that name. i don't know how you do. >> it's funny. you guys sort of reiterate your buy. i look over the wall i'm looking to see -- i keep looking over at the wall i was looking at that. >> making me nervous >> the interday now that we've seen that you'll see as you are reiterating your own buy ratings on this stock nvidia is up 1 2/3
percent. people are willing to get in even at these levels >> what we're saying, yeah, this is an amazing company with great products, it's transformative for the whole economy something to offer for every vertical. it's obvious, everyone knows that and i think we're being circumspect. that doesn't mean this can't have a flash correction. absolutely could the best, biggest winning stock throughout history have made it tough. >> even perceived bears are bull ish on this company. and i say that with andrew left. >> he's not bear -- >> no, no. he's tactically saying, look, take some profits but it if it gets down to a few bucks lower, more than a few bucks, i love the company so much i'd be willing to be a buyer. >> it's a tough game for most people >> love the company, love the stock.
>> you can own a core position but then you do have to trim when they get to the extreme levels and you have the opportunity and the dry powder -- >> apparently this is not an extreme level. mr. and mrs. market. >> you have price bias >> you bought oracle >> i did >> they report next week fiscal 4q is a tough one for them recurring revenue, better margins, better operating leverage they also just signed a deal with at&t. some are speculating it's a billion dollar deal which is a really big deal, good for bookings they benefit from a lower dollar i like the risk-reward
>> it's a great looking chart. it's been consolidating since march. it has not kept pace with the group but it's right up there knocking on those highs and this is the type of name that builds a base like this i think right for technical reaso reasons. >> server shipments will be down if you have the growth coming out of europe, everybody who comes on has been talking about and i believe in as well, then that could be a surprise >> do you worry tear going to make a big deal, though? that's the knock on oracle >> he's not going to sell off his big position but they could do something i think you have to worry -- you have a floor on the stock. this is a classic example of the prior microsofts thachget and their model. >> a quick break we'll do final trades.
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saw more upside, mr. clancy did, over there that's his perception. the street's endorsing it. barclays downgraded to underweight. >> it's been a terrible performer. i own it it's an asset sale story oil has got to go up for any of these energy stocks to work. >> five below by kkeybanc. >> it's about fidget spinners. i would sell this with five fingers. this is literally a retailer that needs to sell more fidget spinners i repeat, for anyone that missed me saying it the first time. >> let's do final trades around the horn, doc, we start with you. >> general mills, upside call buying that's pretty aggressive buying. there's a rumor out there that nestle was interested. they have three days to be right on this trade. two days by the time this show ends
>> alphabet. i still like it. any pullback, keep on buying it. the cash flow machine. >> stephanie >> home depot, lowe's, stanley, black & decker, whirlpool all at highs and will continue to work. this is where the consumer continues to spend and i like them all >> fidget spinners no i mentioned inda the other day, e it tf i think we're at the part of the year people who have missed the em trade, and a lot of people have, everyone was selling last year. everyone's been under weight this year. i think they start to look at some of these markets that have been ignored and they start to pile in. this seems to be a really easy, cheap, fast way to get exposure. you should be in em, india is the best of the bunch. >> mine is starbucks, downgraded today.
>> i added to it earlier in week they have easy comparisons they did a good job on the digital platform not seeing operating leverage in the next quarter but i think it's come. >> great seeing you. dow is currently up six points that does it for us. "power lunch" begins right now sure does. welcome to "power lunch. i'm michelle caruso-cabrera. we have two breaking news stories this hour. first a shooting in virginia leaving a top-level congressman and four others injured. the assailant is dead. president trump and house speaker paul ryan weighing in. the other big story this hour, the fed's latest decision on interest rates, going to drop just under an hour from now. markets are expect iing a hike t the fed's balance sheet remains and why are yields falling so much today when they're hiking we'll get answers during janet yellen's news conference, we hope,