tv Fast Money Halftime Report CNBC August 22, 2017 12:00pm-1:00pm EDT
>> yeah. >> that's obviously the problem. >> normally pretty good at mass production, a complex thing. i don't know what's so hard. >> well, suppliers, you can lean on them, but in the end, your supplier is your supplier. >> yeah. >> that's certainly something apple's good at in some other areas. but dow with a very nice gain. best day in about four months. let's get to wapner and the hal half >> and welcome to the "halftime report." i'm scott wapner our top trade this hour, the state of the rally and whether reports of progress on the president's agenda is enough to stave off a correction for stocks josh brown is with us today, along with john and pete najarian also with us, chris hizey, bank of america global wealth and investment management, cio we begin with the snapback for stocks, which comes just as some have been predicting a coming correction dow jones industrials is up today by 150 points. so, pete, everybody was talking about, oh, my gosh, correction's coming could be big 5, 10, 15, 20%
now we get these reports -- >> what in the world >> progress on the president's agenda >> right >> that's all it takes >> not only that, but we were talking about this yesterday, how about just the fundamentals of what we've gone through in this earnings season the combination of all of that, and then you start to look, we did get a little bit of pushback on some of the tech stocks they started to move forward as well but it's the financials. you start to get any kind of heat under that, moving these financials to the upside, there's a lot of different reasons. by the way, boeing, which continues to be an absolute beast to the upside, keep an eye on this name when you look at cash flows and you're not focused just on p/e and saying this is stretch, stretch, stretch, look at the cash flows of someone like boeing and what's going on globally, there are a lot of reasons why some of the stocks in the dow as well are pushing these stocks higher. >> so maybe the most important thing today for this market is the nasdaq 100 is up 1% led by the heavy hitters. and the leadership group that was taking a rest seems to have woken up, albeit, it's only a
day, but if you can build on that again, you resume the leaders that took us to where we are now anyway >> i'll tell you how we live it. you got -- look, at your worst point yesterday, the s&p was down 2.95% and people are saying today, it's the end of the correction and i'm howling with laughter. not on air i do that off air. but, so, i think if you were smart enough not to get too nervous yesterday, apply that same restraint on a day like today with 26 out of 30 dow stocks up, with the xlk and the semis leading. and just say like, all right, this is cool we have a broad-based bounce, being led by tech, exactly what you want to see. but let me not jump out of my skin and celebrate, because it's impossible to know whether or not the dip that we've been in has come to -- like, how could you possibly know? let me point to one thing that i think is really important. while we're sitting here pontificating about the next 3% move in the s&p -- >> well, speak for yourself.
>> just generally, not on this show, emerging markets are up 30, 40%. india is up 40%. so, let's not lose sight of the fact that a ton of money is being made by looking outside of an s&p that's selling at one of it highest multiple premiums versus the rest of the world in market history and let's make money all over the world. >> haven't we said, the biggest risk right now is being out, rather than in and this is a reminder you get a little dribble of something of a report about the agenda and tax reform, and then the dow goes up 160 points on that report alone. >> right and you've got, you know, apple, basically, putting on the equivalent of many of the stocks within the s&p 500, just today it's making nearly a $15 billion move, judge. i mean, 5 billion shares move $3, it's not tough math. this is a huge move out of apple again.
and it's not because they declared a date for when they're going to be bringing us all that great stuff that jon fortt was just talking about, even though they can't get those air buds shipped and they can't keep them in stock but people do risk by being out of the market. it doesn't mean, and i do agree with josh and i bet everyone here on the desk that what you want to do is peel some off. i mean, if you were smart enough to get in and/or to not get shaken out, then you've got this very nice bounceback why wouldn't you take a little off? now, will you curse yourself a week from now if we're another 2 or 3% higher i guess so but i don't really make my moves based on those kinds of outcome. >> all right, so chris isley, good to see you again. welcome back to "halftime," at a time where a lot of folks were starting to talk about correction and here we are today with a nice snap back. does it -- where do you see us going here >> i just try to keep things as simple as possible you have five-year investment grade bonds at 2.1, 2.2%
you have a ten-year treasury at 2, 2.1% you have a basket of diversified equities all around the world or an etf that represents the world. over the next five years, what do you want to own what -- so when you look at all of that, any correction with as much cash that's out there, whether it's induced by the federal reserve or just the fact that people have been very nervous, is going to be bought these so-called corrections, we used to get on a couple of days. and now these rolling corrections are happening over weeks, because there's a lot of pa fill going on four things, strong profits. whether we slow down in revenue growth or not, strong profits. second item, we've been through this innovation cycle we haven't seen since the decade of the 1990s, and it's dpong to continue to expand, in our opinion. third is non-u.s. economic growth, as josh just said, and the rest of the panel said, is really a tail wind now to the
broader backdrop and feeds directly into large-cap multinationals and last but not least -- >> low rates, low inflation and easy financial conditions. >> are there enough buyers who are still willing to buy the dips that's a question. >> sure, there are i mean, think about all the money that's been on the sidelines that has missed this thing. then they start to see a little bit, a very small, short-lived correction to the downside, if you want to call it a correction, and there's still that money sitting there that's not in the market, scott and people are all talking about, well, those are great hedges i'm not sure i always agree with the idea that it's just sitting in cash that's a great hedge i would rather be hedging against my actual positions. but the interest thing to me today is, i'm looking at these financials and the fact that there's actually something behind them on this move to the upside and there's buying we haven't seen buying in the options of the financial in quite a while, at least a few weeks. and suddenly in the options world, the derivatives world with,
bank of america are going crazy. they're buying 20,000 of the september 24 calls, 10,000 of the september 24 1/2 calls they finally have returned to some of these financials, take a look at bank of america the way that's moving today. the financials have a little bit of fuel under them today >> you mentioned earnings growth and i agree with you, you are getting much better earnings growth now, and we went through an earnings recession, along with a commitment, let's call it consolidation for two years, with the s&p and price but, just bigger picture, since -- go back to 2012 multiple expansion is like 5x, earnings growth. so, even if you got, now, faster earnings growth than multiple expansion, you could still make the argument that at best, we tread water. like, how do we have room to expand, even if growth continues at the pace it's at, in profits? >> big argument right now is exactly what you're saying, which is, a lot of people are suggesting, you know, it could say 18, 19 multiple, we're a
little bit overvalued, and what's the right one i would simply say, if we went through an earnings recession, we climbed out of it, we have easy financial conditions, we have a one, 1.25% risk-free rate, et cetera. on a relative basis, still stocks represent the better risk/reward. but even on an absolute basis, i would argue, because there's less leverage in the market today than when we peaked out in the late 1990s you could see this market go to a 20, 21, 22 multiple -- >> what justifies it household -- >> justifies is the trillions in cash that's out there. >> but that's being lived on now. you're correct, there's trillions of cash. there's also 69 million boomers above age 65 and they're spending it. they're not reinvesting it >> one of the things to watch, to see if this pulls through or not over the next couple of years is to see that cash in the millennial household and how they're investing it there's 75 million of them and it matches what the pullback may be in the allocation of fixed income that the boomers
are doing, which we're not actually seeing, quite frankly when you look at the pool of capital, that's why you get it >> isn't today the best evidence yet that the trump agenda is not in any way, shape, or form in the market yet and you get a whisper of taxes and the market is up -- >> it's in the defense -- >> art cashin is saying he thinks half of the gains today are simply due to this one report >> well, yesterday we had mcconnell talking about the debt limit and how there's absolutely no way that they're not going to raise the debt limit he said, zero chance yesterday so that's a little sigh of relief then you also had mnuchin talking about exactly what it's going to take to move the tax plan forward those are both positives but i agree with you, scott, it's not priced into the market. none of us here have been saying it is priced into the market >> we've been saying it's not. >> i'm saying today is the perfect evidence that that theory seems to be correct >> right >> that's the potential upside
and it's a lot bigger than a 1% move, if something really happens. >> and if it's not tax reform, if it's tax cuts, that's actually more additive to earnings than tax reform, which would be mostly zero sum >> and repatriation as part of that would be massive. >> massive >> because then you don't have to go after the infrastructure spending and fight all these little jurisdictions across the country. >> all right let's bring in now our ylan mui. she has been following these reports of progress being made on tax reform. ylan, it's good to see you this politico report got everybody talking and the markets moving you were on the ground in kentucky yesterday with two of the big players. mcconnell and mnuchin. what about your reporting? does it square up with this politico report that has the markets off to the races today >> so the big news in the political report was that these big six, the white house and gop leadership, had essentially come to an agreement on how to pay for tax reform and yes, i was with mnuchin and mcconnell out in louisville yesterday, and you know, they had their kumbaya moments, where
they showed a united front and that they were showing that they could get along. but i'm just not convinced that we are at this moment yet where there is agreement on the framework to move forward. i'm hearing a lot of skepticism from capitol hill over the story and part of the reason is because when you look at the actual deductions that would be eliminated, right, when you look beyond the headline of unity, significant progress, and you look at what they would actually get rid of, the mortgage interest deduction, the state and local tax deduction, looking at net interest deductibility, those are all such big fights that it is clear that this is going to be a really messy progress, and i'm not sure that folks on the hill are quite ready to take some of those tough votes and take on some of those tough fights the way that the mirks might be hoping that they are >> yeah, it makes you wonder, guys, what the -- as ylan brings
us her own reporting and thoughts on this, what the catalyst is to take the market to the next level without this report as people were starting to talk about the market being tired, is it just resting or is it worn out to the point of about to get sick >> yeah, i would say, part of the financial rally today may be, maybe the fact that wage growth is actually coming back in a way that would kick start a financial rally from their base. so right now, they have based out, it appears that way what's the next move for the financials, which could carry the market to the next level with or without tax cut or tax reform it's actually resigns of wage growth, which will justify so-called balance sheet normalization, et cetera and at the same time, you get a flat dollar. that would help, as well >> ylan, it really sort of raises the question of whether you're going to get true reform or true cuts skand whether the market even cares at this point. as long as the word "tax" is in front of it, it seems to not
make that much of a difference to investors at this point >> i would caution, though, what we hear from businesses, though, too is a temporary tax cut and if assi if it's a tax cut, it's going to have to be temporary, are not going to make a big difference to their pizbusinesses are corporations willing to have a tax cut if they know that will go up again when that period is over for the individual side, even if there is a tax cut, it would likely be so small and territory, that it wouldn't make a difference to their bottom line, as well. so even though the markets may be looking at a deficit financed tax cut as good news, i'm just wondering how much impact it will have on the bottom line >> she's exactly right and all of the research confirms this even just the last episode of this and the bush tax cut, when you give people a bonus or something that's laooked at as one time or temporary, it does not change the way they spend. it does not lead them to evaluate their lifestyle and the costs that they're willing to
incur. when you give people a raise or a permanent tax cut, they will actually act differently they will plan to spend more money in the future and follow through on that. and you can even see that with stocks you look at the benefit of a one-time giant dividend, like microsoft does you can't even see it in the chart, because it does nothing for the stock price. it's that one-time thing and people just aren't excited about it so, i think that's exactly the main point it's not just tax cut or tax reform it's what are the conditions necessary to get something like that done? if you're a president in year one of a four-year term, and you're saying, well, i just have to pass something, then, yeah, you might go for the temporary thing. i don't think that's additive to a stock market multiple. >> well, it may be positive, even if it's short-term or short lived or not right now even the whiff of it has the dow up 160 ylan, thank you so much. technologies and financials have been market leaders each sector showing signs of weakness
recently so which sector is the better bet? which is going to resume its leadership role? tech's out of the gate strong today. we mentioned sort of the f.a.n.g. you mentioned apple. but it's, you know, it's the tried and true name. it's the googles, the facebooks, the amazons, the apples. >> you answer this question, are you a momentum investor or a value investor it's almost not even sec electortoral. do you want the best-run, best-managed, highest quality companies in the world where everyone already agrees with you that you're great. or do you want to buy the thing that people, reticent about for seven years now, selling at one of the lowest sector multiples in the whole market? that's what this is about. >> i would completely agree. i think if you look at sectors, that's -- we all used to look at sectors. i think right now, it's the quality and it's the characteristics of a company if you can reinvent yourself, in an industry where barriers to industry are coming down left
and right, and you can gain that momentum without destroying your current capital stock, you win >> but don't you need -- if you think the market is going to go higher, as you do, don't you need either the financials or these techs, the f.a.n.g.s so to speak, to lead or a combination of both? >> i think you need a combination of both. the reason is because you need growth and you need a little bit of the capture of net interest income that's the velocity you need in the system to get us to that next level that everybody wants. if you don't get the velocity coming out of the banking system, josh is right, that multiple doesn't stay at the $19 to $20 it comes back down >> in other words, your last couple of days, real estate leading or utilities leading -- >> that's not a good -- >> and the utilities lead was not a good sign, either. and that's as the ten-year was breaking, as it was rallying, as the yields were coming down. i think that is a very short-lived position >> is it more likely that you do have now this reboot of the f.a.n.g.s and some other nasdaq
100 and the banks. >> i still think two to three weeks. i'm not saying today >> no, no, obviously more than just one day, but they had sort of -- that trade had rolled over a bit over the last couple of weeks. >> and my pushback, the one pushback i had with what josh said is, he called it momentum i don't know if i necessarily agree they're just about momentum we look at the fundamental story of these tech stocks, specifically whether it's apple, whether it's microsoft -- >> what about growth >> it's growth >> we're not disagreeing -- momentum is -- momentum is not a matter of opinion. it's a technical term describing a stock that's already moved, has a tendency to keep moving. so i'm not saying that there aren't good -- >> no, but i think the implication also is that it's a momentum stock, tells people that they don't have the fundamental backing -- >> and a strong momentum story and a strong fundamental story >> and i think it's both >> apple and microsoft are pretty good examples >> i think you guys are saying the same thing this is where the momentum -- >> let me say a different thing.
it's great that we look at the top 50 names and that's where a lot of the market cap is and of course, it's important. but let's just keep in mind, bigger picture, last week, we basically saw the haguest percentage of 52-week lows outside of february 2016 so, basically, a year -- you have to go back a year and a half to find this many stocks making new year lows and that's got to cure itself, before you can make this case that you're getting another couple of handles in the spx >> that's the whole rolling correction idea that's been taking place, where, i don't know what the number is today. at one point, it was 40% of the s&p, it was 10% or worse off of their 52-week highs. the market has been going through these motions of a correction for weeks >> yeah. and you know, you can look at it one way and say, as josh says, we need to get through that. and then you could put a concern out there that said, this is the reason for it. whether it's the debt ceiling or
something else or north korea or something else and i simply say, this market is moving on earnings growth. and every time we get earnings, that's when the market grabs its legs again and that's when you see these robo programs with flow coming in from the people investing in them they start to step up their robo purchases. and that's -- >> and it's not just -- when we talk about an 18 p/e on the s&p, judge, and people say, well, that's extended, it's at the far end, they're right but show me some times when inflation was this of low. >> but we're all sitting here rooting for wage growth. so which is it >> we're rooting for that. are we going to get it we've rooted for it for seven years. >> you can't make the argument that low inflation is supportive of high multiples, but also say that market advance will continue because there's going to be wage growth. which one do you want? >> i think we're more likely to get low -- keep with low inflation, rather than wage growth >> i would say -- >> the pushback that i have is, i think the implication, sometimes, josh is, that when you say momentum, people say
f.a.n.g. and the reality is, tech, not f.a.n.g., has been moving to the upside and just take a look at sky works and names that are not part of f.a.n.g. and how they've performed as well. there's a fundamental story and a growth story combined there in the tech world >> chris, good to have you here's what else is coming up on the "halftime report." >> announcer: next, a wall street firm worried about one semichip company is now changing its tune, calling for investors to buy the stock today see which stock and why the firm is making the big shift in the call of the day. plus, media insider and longtime halftime guest ross levenson is the new publisher of the "los angeles times. ersoand e he plans to succee whe my others have failed coming up in an exclusive interview, only on the "halftime report." no, please, please, oh! ♪
> vmware is up at an all-time high >> i'll tell you about the technicals very quickly. >> on vmw. >> do not -- >> the floor is yours. >> he's got some color coming. >> aisle going to -- listen. listen do not fade vmware this is a stock that is getting above that may high, where it found resistance, pulled back, had a nice period of consolidation. gapped up, gapped up again now breaking triple digits in share price.
rsi, 69, not quite overbought. this thing has a lot of room to the upside i would not be fading this name right here >> all right year-to-date up 26%. and you clearly don't think that this upgrade is late at all, by deutsche >> this is a 17-month uptrend and now you're starting to get gaps up. the buyers are coming in vociferously i would not want to be on the other side -- >> and the analyst here is actually talking about that he missed it. he was talking about the idea that he was so concerned about aws, from amazon, that he missed this, and now, now taking another look said, you know what they're not getting beat up by amazon the web services are not killing them i still think this shows a few chinks in the aermore, quite frankly, of aws, which we know has been a strength for amazon we all reference it all the time it's not just ecommerce, it's aws. it's showing me that salesforce and red hat and everybody in that cloud space, microsoft, obviously, are taking bits and pieces of that, scott, which is something that everybody has to kind of keep an eye on, because
it's then all about aws. >> and they expanded their partnership with google today, judge. they announced that today at the top of this program, i believe they announced that. that's another piece of good news that can help lift the stock. >> stock just shy of $100. coming up, double the najarian, double the trouble i mean, unusual activity >> the fun >> all right, double the fun one is watching a metal maker, the other is into plastics both showing signs of moving soon that is next first, the s&p sector check. green day on the street. there's tech leading the way, up 1.25% as a sector. we're back right after this on halftime so you miss the big city? i don't miss much... definitely not the traffic. excuse me, doctor... the genomic data came in. thank you. you can do that kind of analysis? yeah, watson. i can quickly analyze millions of clinical and scientific reports to help you tailor treatment options for the patient's genomic profile. you can do that?
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prevagen. the name to remember. the cnbc iq 100 index. some of today's leaders include western digital, dxc technology, and broadcom on the downside, baker hughes hitting a low not seen since april 2009 for more, go to cnbc.com/iq100 now back to the "halftime report" with scott wapner. >> welcome back. brothers najarian making their way to the telestrator, as
usual, with two unusual options trade. >> all right, newell brands. a lot of folks would just think of rubbermaid newell no, this is pens, they have so many household goods in this company, judge, and somebody's betting they're going to have a great six months ahead of them chairman said that in the last earnings call, that the second half is going to be great. well, somebody just put a lot of money on that bet. they came in buying the january of 2018 50-strike calls. bought those today, about 4,000 of them. they sold the next higher strike up they jumped in here on the same trade. i'll probably be in it right around a month to two months, because these are january options. i like the way the stock's acting and i like the optimism that the ceo had in the recent earnings call. >> all right, pete, what about you? >> we've been talking about materials. yesterday, that was the lead of the show and we were talking about just how much by the way, take a look at copper again, over $3. this has been on an absolute
tear over the last 40 or 60 days unbelievable, how it's moved today it's alcoa yesterday it was val e. now it's alcoa earlier in the session, they started buying very aggressively and going out to october they were buying the october 42 calls. paid $1.30 for a huge block, this entire thing that you're seeing, that was one trade this wasn't somebody bought 1,000 and another 1,000 and another 1,000. this is one block. huge call buying in there, scott. i'm in there, as well john's talking about, when you see this, it seems like there's a whole change going on right now. materials, everybody's excited habit that entire space. we talked about gld the other day, as well that space is getting a lot of heat and right now, those are the options that i think -- this thing really could break out to the upside, but the chart is absolutely off the charts. i think josh could probably speak to that. >> you guys -- man, i want a piece of you two at summer slam. >> let's do it, man! come on! >> you haven't seen the last of
me >> we could do the whole thing >> all right come on back from the teleprompter >> telestrator >> all right, thank you, josh. now to sue herrera with the latest headlines sue, i was going to let josh read that, but,, you know -- >> be my guest i'm sure he would do a great job. >> don't want him to get too comfortable. >> thanks, scotty. here's what's happening at this hour a small earthquake struck this morning off the coast of san francisco. the epicenter of the 3.2 quake was just a few miles west of the golden gate bridge the city's fire department said they did not receive any calls about damage or injuries secretary of defense james mattis is on a surprise trip to iraq, speaking in baghdad, m mattis says he's confident that u.s.-backed forces will finish off isis strongholds in that area russia is temporarily
suspending visas the suspension will last eight days outside of the capital, visa operations will reportedly remain suspended indefinitely. and a photobomb of celestial proportions. there's the international space station as it passes by the sun during the solar eclipse nasa astronaut randy bresnik tweeted the crew of six onboard were treated to a view more tremendous and impressive than they ever expected kind of puts it in perspective that little dot is the space station. wow. you're up to date. now we're going to go over to ty with what's coming up on "power lunch" >> sue, thank you very much. let's tell you what's coming up on "power lunch. stocks back in rally mode today, after a few volatile sessions. the number three woman financial adviser in the country will join us with a game plan for today's market and beyond. plus, progress on tax reform that's right, progress what's being proposed and how it could affect you and a housing market so hot that even beyonce
welcome back to the "halftime report." media publisher is shaking up the leadership at one of its flagship publications, the "l.a. times. the paper's parent company naming media veteran ross levinsohn as "the times'" new publisher and ceo. ross joins us now live and exclusive from los angeles ross, good to see you again. >> great to be here. >> yep, congratulations on the
new gig. >> thank you >> i think of all the things people maybe talked about and thought about for you, i don't know how high on the list this was. why did you take this job? >> yeah, well, i always like to swerve, but those who know me and who have worked with me over the years know i have an incredible passion for news and information. it was a big part of my life at yahoo! and obviously at fox. but really, i view this -- i did this for two real reasons. once is emotional and personal and the other is more from a value perspective. i'll do the second one first, because we're talking to a lot of businesspeople here i looked at trump and i looked at this business and i look at the "l.a. times. and i saw a company that had more than $1.5 billion of revenue, was trading at two times ebitda, makes no sense to me but we'll get to that later. has about 3% of the digital subs that "the new york times" has. and is one of the leading and historic voices and greatest
journalism brands that exists in this country and frankly around the world. and what i saw was a dislocation in the market. the unemotional dislocation. you have incredible companies like buzzfeed and vox, which nbc has investments in and even a company like allion that sold for north of 400 million. but vox and buzzfeed that do great work, but i think friends of mine would tell you, they don't have the journalism chops that something like the "l.a. times" and trunk has, are valued at north of $1 billion or $1.5 billion in some cases. just from an unemotional value perspective, this is a company that if we can turn the tide a little bit, get it going in a growth perspective, you know, two times ebitda turns into six or ten times ebitda. that's my hope that's the unemotional side. the emotional side, i've been in the media business a long time i've never, in my adult lifetime, never seen a more important time when journalism matters, reporting matters, facts matter i mean, we've had a lot of noise
about fake news. there's nothing fake about what the great writers and journalists at the l.a. toou"l." does and i think it's really important as a grown-up, as a parent, as a father, this is important to carry this through to the next generation and i love the platform. obviously, i'm passionate about los angeles, been here a long time this is my hometown paper. and you know, i'm hoping to bring some of the experience and maybe wisdom and ideas i have learned through the last 20 plus years in the digital world >> your own paper describes this today as a, quote, dramatic shake up and i'm wondering what your strategy is going to be, to try to turn things around. it sounds like you're almost painting this as a vision of a digital-first hub among other things >> well, look, we're in a day and age where you can't -- you just can't be talking about digital or traditional it's over. i've talked about that a lot with you guys.
this is about -- it starts at the core, it starts with great journalism in our case, great content, great video, you start there, as the foundation of this and, you know, my mom reads the print newspaper every day. my daughter reads it on my ipad. so, very different audiences, and i think you have to really focus on, a, continuing that great work from the core of the foux, of great journalism, great reporting, great content that might take the form of video or shorts. look what your parent nbc is doing on snap. huge short-form video. i think when you think about about the "l.a. times," you have to think about culture at its score. los angeles and california, frankly, is the sixth largest economy in the world and have a of tastemakers out here so i think we should wrap our arms around what we can really be great at. and figure out how to distribute it in a much more aggressive
manner doesn't matter where it lives, as long as it gets to consumers, not just in our region, but globally >> i'm sure you're not naive to some of the issues that exist within "the times. and i'm sure, also, that you read the way that your paper today talked about this story and sort of characterized how people inside the business themselves are feeling, mentioning things like flaggi gg morale how do you fix that? >> i've been blessed to work in some companies that have had incredible cultures, and some that needed a change in culture. yahoo! obviously, has gone through a lot of different changes in its culture it starts with the culture inside of the newsroom and inside of the company. you know, i've learned a few lessons in my time i think you have to appreciate what a unique set of assets exist, not just at the "l.a. times," but within trunk and you have to build upon that. one of the things i said to the
staff yesterday, change is never easy it upsets everyone i've been part of it we ruffled a lot of feathers at fox when we got heavily into the internet there a lot of change at yahoo! when i was there. but the thing they noticed, but it was really interesting. steve case put out a tweet yesterday about the average life span of an employee at the top tech companies in the world. and i think google was number one with the longest tenure. and it was 1.9 years that's the average tenure of an employee at google inside the "l.a. times," i was talking to the folks in the newsroom yesterday and i asked how many people who have been here more than five years. what's the loyalty factor to a company like the "l.a. times." and more than half the hands went up. so what you're starting with is a very passionate, in some cases, altruistic group of paem w who love that brand. and if i can help accelerate and
build upon that passion, i think we can take a lot of what the "l.a. times" does around the world. >> it's interesting, you know, when you talk about sort of the newspaper industry and you mention, you know, the political climate and the environment, you know, people saying fake news, et cetera, it's "the new york times" and "the washington post" that seem to be the brands that are doing well right now not surprisingly, because the president of the united states calls them out on a regular basis. how do you -- what do you need to do? do you feed the president to start talking about the blank "l.a. times," for example? because "the new york times," for all of the criticism that the white house has put on it, is doing exceptionally well from a business standpoint. >> well, you're making my argument for me. the "l.a. times" has done a remarkable job, great investigative journalism, mostly in a local place "the new york times" and "the
washington post," you know, have hit it right "the washington post" has an aggressive investor in jeff besos, obviously, an amazing platform, and great reporting and great journalists. "the new york times" global brand, they have invested in their people and in the platforms and have approached news in a different way. i don't know if you need the president of the united states calling you out. what i know is, you need to be reporting and doing investigative journalism in a way that differentiates you from everyone else. or at least puts you in the top echelon. the "l.a. times" is the most -- i think it's the most important voice west of the mississippi. period, full stop. in the entertainment world, it should be the bible. it should be the paper and immediate company of record. and i actually think we have to get away from the term newspaper. this is an incredible journalistic operation and it's an incredible media company. and i think we have to, you know, put our focus on doing great work and getting it out in
an aggressive manner and by the way, if we're doing our work and the president of the united states is doing something, you know, that we uncover, good on us. and the same is true for any other industry that we cover and i think we have a lot to deliver to consumers globally. >> well, we wish you the very best, we know we do. hope you'll spend time with us on occasion to talk about what's happening in your industry as well as technology and all things detail. >> really appreciate you having me all these times and i hope to be back. >> ross levinsohn, the new ceo and publisher in the "l.a. times. >> nice vote of confidence for him. >> stock's up about 4% the trades on toll brothers, restaurant brands, and macy's all coming up. "halftime report" back after this y, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention.
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the value of capital is to create, not just wealth, but things that matter. morgan stanley lrall right. time now for the blitz toll brothers is lower despite beating on the bottom line pete >> it was a strong beat when you look at the earnings, then when you look at the revenue, a little bit light it's still up 18% year over year i like these numbers the stock sold off i think that gives you an opportunity. they did trim their full-year forecast in terms of the upper side of that but i still look at this thing, look at where it's trading right now, valuation wise, i think toll brothers has upside >> all right, and speaking of toll brothers, the ceo, doug yearly will be on cnbc today restaurant brands international is ubs' top pick, josh brown >> this has been a good stock for a long time. >> tim horton's burger king
popeyes for those playing at lunch today. >> take a look at a daily chart. 61, 62 has been resistance it's been knocking on that door several times since early summer, late spring. now it looks like it wants to get through. it's going to do so on volume if that happens and this is the type of name that people have been anticipating the breakout. if you're long, you stay long. maybe you can tighten your stop a little bit, but i think this one goes higher. >> macy's is on the move today after announcing plans to restructure its management team. doc? >> it's not about the cutting of those 100 jobs that's a small percent, of course and this is all about howe lawton coming over from ebay, trying to put better brands and private brands into macy's that might be exclusive to them as well as maybe taking a look at harold square. i think it's great news for the company. stock's already trading on very heavy volume by noon today, it's already on 10 million shares. >> i'm on the other side this is going lower, sorry
i hope to be wrong i hope they can turn it around i have no short position this is one of the ugliest stocks you can find. and it's not because they're a bad company. there's a secular shift afoot and their not on the right side of it. >> coming up, video you have to. plus copper hits its highest level in nearly three years. >> you know what they say about dr dr. copper one of our traders says it's more than just the weak dollar first a look at how the rest of the metals are trading today r g. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to,
report we're watching copper rise to its highest level in nearly three years. what's behind the run we're seeing here in that metal? >> copper is on tear the relative strength index is right at 70. technically it's overbrought there's more than going on it's not just the dollar has weakened because it's been relatively stable over the last
couple of weeks. what else is going on? there's stories coming out of china that china is buying all the copper they can get because they want to shut down the worst polluting smelters over there and if they do that, that will reduce the supply of copper. >> copper already has moved 19% higher year to date. is there more upside here? >> when you look at copper, look at bitcoin, anything that's mined whether it's digitally or out of ground, you're looking at things that are taking off after that i'm a buyer >> thanks. today on futures now we're staying with the copper trade. mike dudas joining us to break down the metal's incredible run. that's coming up at 1:00 p.m.
eastern. back to you. must see video next. the tesla model x is about to race a lamborghini final trades after the break i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. hundreds of dollars on youmy car insurance. saved me huh. i should take a closer look at geico... (dog panting) geico has a 97% customer satisfaction rating!
lamborghini in a drag race thanks today video gives to us, this is what happens a quarter mile race. the tesla won. there it is. the acceleration, that jump right at the start, too much for the lambo to overcome. the tesla won by a second. >> unreal. it's like a slingshot. they were snapping transmissions. >> you go. >> it's all there. especially now with the all wheel drive. it's not even a fair competit n competition. >> that was pretty cool. thanks again for that cool video. let's do final trades josh you're up tirs. >> l >> let's talk about ksu. we don't talk about the rails individually >> we did talk about this one last week. >> i feel you.
>> he feels you. >> what's happening with the rails should not be ignored. there are economic implications for what these do. i think ksu because it's a quasi emerging market play given the vertical route from mexico into the u.s. and back. >> dock. >> american eagle outfitters a lot of aggressive call buying judge. the equivalent of 800 buying shares like that into earnings that are tomorrow. know this is a trade that's something or nothing it's a binary bet on the earnings >> are you in there? >> i'm in it now now. >> can you be more specific in. >> during the commercial i got into it. >> did you really during the kme commercial >> during the commercial >> playing it like buffet. >> the heat seeker popped up >> i got one for you, heat
seeker popped up as well how about apple. >> what's the ticker symbol? >> aapl. huge buying there on the upside as well. stock trading at 159.5 >> good stuff. thanks for watching. "power lunch" starts now you bet it does. here is what's on your lunchtime menu a big league rally on wall street stocks surging we will go inside today's run and that is straight ahead once a shining star of retail but lower traffic and on online onslaught eating away at macy's the company's ceo speaking to cnbc laying out his plans to save that, but will investors buy in facebook losing its appeal among teens and tweens showing