Skip to main content

tv   Fast Money Halftime Report  CNBC  October 11, 2017 12:00pm-1:00pm EDT

12:00 pm
got to go back a ways to find a day this narrow. >> perhaps the headline there is it's holding its highs and in record territory, not giving any back was the big one to close higher yesterday as well fueled by walmart i mean, we continue to turn up. >> yeah. >> i got a lot of names making some record highs. >> president trump, watch cnbc because we're covering the market. >> let's get to the judge and "the half. >> welcome to "the halftime report." i'm scott wapner top trade this hour. charging ahead, the names jim cramer says are two of the greatest stocks of our time. why visa and mastercard keep hitting all-time highs and whether there's really still time to get in with us for the hour today joe terranova, jon and pete najarian and carry firestone here with asset management visa and mastercard getting a i lot love today from wells fargo. they resumed coverage or assumed coverage of outperforms, joe
12:01 pm
everybody on the desk likes visa. >> yeah. >> and with good reason. >> and you can't fault jim for saying what he did considering what the stocks continue to do. >> oh, certainly. >> i mean, these are two bellwethers really in terms of getting financial exposure you know, we had long talked about, well, how do you get the financial exposure do you look at the big five banks? there were moments when we questioned and were skeptical about that but never did that with visa and mastercard and now you're witnessing specific with visa as it relates to europe, that's really gaining momentum right now. it's an environment where you think about it, scott, just with retail sales kind of suffering, visa and mastercard are still doing well i'm long visa. a lot of us on the desk are well i'm staying with it. >> carrie, you own visa, up 38% year to date and mastercard up 42 over a year they tracked the same mastercard has outdone visa and in that roughly the same pe. anything not to the like here?
12:02 pm
>> we still like visa? we think there's 25% upside to the story. people's tastes have changed where they buy things have changed but in terms of using credit cards, that's growing, and the kind of platform visa has built is sustainable and we eeoc expansion of global growth. still like the stock here. >> why not mastercard. why does everybody choose visa over this other? >> more expensive. >> i would agree with that, and when you look at the actual growth trajectories of visa, they are absolutely astounding when you look at the international growth i mean, i know what we're all focusing on here but plastic around the world, we all know that that's the currency, everybody is moving towards that and you look at the international growth just in the last couple of quarters, absolutely stunning when you lock at the numbers. they look like a tech company. >> exactly. >> look like somebody in the cloud space or something the way they are growing. >> as cramer said they are fin tech companies. >> absolutely. >> how about the fin tech
12:03 pm
company paypal, judge? i know you're not going into a store and dragging plastic with paypal, but when you look at the performance of this one versus visa, versus master, of course, versus american express kills them i mean, it's 72 misversus like 38 for visa and 42 for master or vice versa i might have flicked though. nonetheless 72% for paypal it's just hitting high after high after high and continuing this monster run. >> paypal and ebay, by the way, get price target increases today over at morgan stanley. >> and i would not be surprised if visa when they report this quarter if it's actually very conservative guidance so if you're in the stock and you do see that pullback, i don't think you flinch for a second. i think you stay with it, and if it pulls back you buy it but this could be a quarter where historically you see some guidance. >> i have nobody that would buy mastercard, too. >> i like the european exposure to visa. >> if i wanted to do something other than visa right now it would be american express, and i
12:04 pm
think it's because potentially that has a much better ascent to the upside than mastercard i've already got mastercard with visa except even better so why not go to american express. >> for the analyst who made the call, donald fandetti, resuming coverage on that, senior analyst. donald, you say american express is your top pick in this space. >> yeah, we do you know, you guys hit on an important point. obviously, you know, the market likes visa and mastercard. they are good spectacular trends but we think american express is the one to own right now if you look back, they have gone through essentially a perfect storm over the last year or two, and we think they have regained momentum here. you have 2018 earnings growth going from essentially flat over the last few years up to the 10% to 11% range look, where we could be wrong on this is on bank competition. if you look at chase and these other banks, they are going aggressively into the card business, but that's been going on since 2011, and so we think that theme has peaked from a stock perspective, so we do look
12:05 pm
for a good quarter next week when they report, we think revenues could come in a little higher than expected and that's our general view at the moment. >> i'm not trying to make it an either/or thing when it comes to visa or mastercard, it seems as though the investors on my desk today have made it that saying visa is the better play. you do say you have a prenchts for visa over mastercard why? >> yeah. so, look, i think visa, you touched on a little bit earlier, visa is cheaper if you look at the valuation, they have some upside potential from the visa europe acquisition and so the other thing to keep in mind is mastercard at a recent investor day boosted their guidance so the stock reflected that visa could play a little bit of a catchup as you report earnings, and as you think about earnings coming up, we do think that they will provide guidance for 2018 and fundamentals are generally good for these companies. i think what investors like is the consistent visible earnings growth
12:06 pm
18% to 20% for these companies the real big question right now that we say investors focusing on or debating is, you know, valuation and also are there newer opportunities in these emerging payment areas such as b2b or business-to-business and person-to-person payments that's a much larger market frankly than their core card payments business. >> don, i mention what jim cramer had to say about both of these companies, visa and mastercard let's listen in fact what jim had to say about it this morning. here's cramer. >> al kelly has upped the game of visa. you know, what can i say, mastercard these are two of the greatest stocks of our time. >> the point he's also making there is charlie scharff leads visa and you think, okay, maybe there's going to be a pullback maybe there's a -- some kind of misstep in the transfer of power, so to speak it just hasn't happened. >> yeah. i think, you know, al kelly obviously is relatively new, but he has a history he was at american express for
12:07 pm
many years look, the reality is the companies boosted guidance over the last few quarters and that's been beneficial. you know, al was on the board at visa so it seemed like a natural move for him to step in, and i think, you know, the important thing here is that the sort of the tail winds from a secular trend are still pretty powerful. that's really the bear case, right, if we come in and investors say, you look around the world, there's a lot of digital -- emerging digital companies if investors come in and say, you know what, there's going to be intermediation risk or some sort of regulatory surprise do you have to watch that on these stocks because they work for so long. there's a little bit of complacency that's arguably built into the marketplace. >> don, i'll let you run thanks for joining us. really appreciate it. >> thank you. >> don f andetti. the economy improving.
12:08 pm
>> visa stands out as best in breed, mastercard closely a close second pete brings up a great point that's been some run in american express since 2016 i think the stock was down to 50 and has recovered once again. >> the costco day. >> right. >> that was -- >> never forgot that. >> absolutely. >> and the stock could not recover. >> no. >> from the announcement about costco not using exclusively american express anymore until how many months did it take? >> a yore. >> to jump start. >> it was in purgatory for quite a long time and, unfortunately, for them they could never find their way out of that and now suddenly, judge, i think obviously as we've watched the economic conditions get better, and we heard larry fink talk about that today with blackrock, that's a good backdrop as well for american express and people are seeing that strength i've got to tell you they are the one that's left that's got something other than just transactions right. >> checks and cash still account for 85% of transactions, not credit cards but when you look and everybody
12:09 pm
kept looking at google pay or apple pay or whatever, paypal is still positioned to really dominate in that space they haven't done it yet as far as on the mobile side, judge. >> axp is 16 times versus double that of mastercard and virtually double that of visa. >> yeah, and there's three other names we're not talking about, capital one, discover financial and sink any and all three of those names since american express has recovered since 2016, those three have underperformed capital one maybe has a chance to kind of ride along with american express and have a little bit of outperformance but don't expect any of them to give what you visa and mastercard have. >> the s&p, nasdaq and russ you will all near record highs today, and we've been hearing how tax reform and solid earnings could take stocks to the next level but today on "squawk box" blackrock's larry fink brought up another potential rallying point. >> one of the greatest pops we still have in the world is how much money is sitting on the
12:10 pm
sideline even in places like japan, there's $5 trillion of cash earning negative return. in germany 72% of the savings is in a bank account. we're seeing some of that unlock we're seeing people putting some of that money to work. >> okay. so, i mean guy who oversees $6 trillion in assets or thereabouts, when we speaks in terms of what he sees in terms of money flows, it's really important to listen to what layer fink has to say, doc. >> people have been not so much hating on the rally. >> he's been somewhat cautious for a while, at least it sounds back. >> everybody is looking for the pullback, not that the germans are going to be as fast to throw the 72% that he mentions in the bank at the stock market but certainly americans are going to be positioned to throw it in a lot quicker into a lot more liquid markets than the germans have, but i think it's just that we haven't had that significant correction to bring people in. >> what gets people to come in then, is it really going to take
12:11 pm
that is that the only thing that's going to get all this money that fink talks about off the sideline >> no. what drives the market is really earnings growth, and what we've seen so far this year is very decent earnings growth, and the fourth quarter should probably have 12% growth in earnings for the s&p and virtually every sector -- i would say 11 of 12 and i don't know what the 12th would be would have up earnings and that's really what we need and with global growth, expansion in europe, japan is starting to look a little better and china solid. i think that you're safe to assume that there's not a recession that's right on the horizon, and, therefore, we can feel safe moving into equities and using some of that cash that really has been sitting down and you're getting nothing for your cash >> i hear you. it's easier said than done though i think mr. fink uses the right word and problem it is a problem. what is going to get the money off the sideline how can you convince somebody at a record high market every day of the week? >> they are competitors. >> to put that money to work. >> i don't know. if we're talking about cash
12:12 pm
returning, i think repatriation is more important. conceptually there's a tremendous amount of cash on sidelines and then i've heard from so many people over the last five years, well, there's nowhere else to put your money except in the equity market because the return environment is so low. it's the only place, to so is there really that much cash on sidelines? i think that kind of conflicts with each other. i think what we'd be more important is capital coming back from the ent prior space. >> when someone like larry fink says, it black rock and the amount of money that they have in assets under management, sounds like a real issue. >> yeah. >> it -- it sounds good because larry is saying it if i said it you would laugh hat me. >> well, you don't have $6 trillion in asset. >> that's why you would laugh at me. >> with all due respect, and that's exactly why you would laugh at me. >> perhaps blackrock has advised an asset allocation that's too high in cash right now and he's now thinking that we're going to move people more towards equity markets even if it's
12:13 pm
international. that will help the market rise have you all sorts of asset allocators that have been in too much cash. >> when so many people tell us about the exuberance of the market and how they are into that market, and yet you hear somebody like larry fink and the folks out there, the real numbers prove out that's not true, people aren't in the market, they continue to miss it and wait for the pullback and the pullback just hasn't come, judge. we've had some really shallow pullbacks on these pullbacks nothing of any significance, and so the cash just continues to sit there on theline. >> we'll see what happens in the next few days because banks earnings are on desk tomorrow we hear from citi, jpmorgan and on friday bank of america, wells and pnc let's trade these names which have obviously done well citi up 11% in a month and jpmorgan 7.5%, bank of america 10.5% and wells tand pnc the sae 10%. >> historically they were so cheap. i was reading mike mayo, our friend who happens to be over at wells fargo, han he was talking
12:14 pm
about how there's still a third of the normal valuation that you see on these companies doesn't mean they have 33% upside from here, but certainly means when you're shopping and you're looking for a deal, many of these are still a deal. >> right. >> but the fact that the stocks have run so much over the last month alone, the bar has now gotten a little bit higher that they have to get over in earnings. >> so i've heard you guys talk on desk this week about rotation, and there's literally been a massive move into financials in the last month you set up so% an the market is up 3.5%, so we've clearly had a move already anticipating good earnings, good numbers whether they have moved a little bit too far too fast we're going to -- you know, we're going to see what the market does, but i -- i wouldn't be surprise federal there's another shift in rotation over the next couple of weeks and we might move into another group that's suddenly prominent. >> fed holds the key here in the future of where rates go, tax
12:15 pm
reform all of this matters? you don't think it matters >> no, the fed i don't think has mattered in a um coo of year, i don't. >> i hear you on that, but they are arguably more quote, unquote relevant today than they have been just simply because they are normalizing -- excuse me normalizing policy in a way they haven't in a very long time. >> but we've normalized rates four times and haven't real seen the impact on rate i think it's a much larger dynamic which is the deflationary impact of technology i think to your point though what does matter is who is in charge of the federal reserve. i think that's something that maybe could be a quasi-shock to the market. >> pete, you still -- >> love the banks. >> and would you admit though, maybe a different point of view. >> do you think the 9% is too much >> i don't think it is, but the bar has gotten higher for earnings as a result of the stock move. >> absolutely. some of that has been slowly building in, especially as we've
12:16 pm
gotten closer. if you shrink it down and take a look at when did the banks really start to take off, it's been in a very short period of time as they have been running towards this earnings, and it's going to be exciting to get the jpmorgan numbers tomorrow. they are going to be good. city is going to be good bank of america is going to be good and then everybody will have to evaluate how good and was it good enough >> where's j.p. right now, 90 bucks and change, does it go to 100? >> there it is, unfortunate under 97. >> and citi is -- >> because if it goes across 100 then, does it have added momentum >> or does it pause like we've seen in the financials so many times. i know what you're talking about. >> the breakthrough number, or is it the resistance maybe it get through but makes people a little kweesy >> there's a lot of chart at the bottom of the ocean. i look at the fundamentals and when you look at the fundamentals of what's been really going on, jpmorgan, led by jamie dimon, has done everything right, and he's projected exactly where they
12:17 pm
will have the growth and the sectors and segment where it's strong and he's also told us where it's been weaker they have been a bank that's navigated this very well it's far more important to say when is it on a price versus book rate? >> on friday we're marking this down writing it down, jpm 100. >> in ink. >> 100 in ink, jpm 100. >> about seven, eight months you'll see citi there, too. >> says pete, says pete, right there. that's you. >> i see it, brother >> you could probably add two or three more names to that thinking it gets above 100, but pete is talking about fundamentals you're talking about the fed and rates. we're not even talking about the lifting regulation, and i think that's kind of invisible and very difficult to see what the impact is on the bottom line, but i think it's receipt i think it's a real phenomenon. >> don't you think that's why the stocks have moved the way they have? >> i don't think to date, no i don't think it's priced in i don't think the lifting of regulation by financial institutions is priced in, no. >> i think some of of it is
12:18 pm
priced in. i don't think it's all priced in, and certainly the big piece that isn't priced in is the tax cut. i honestly don't think that the tax cut is priced in and that could lift will the s&p another 7% or 8% on the earnings level and that's part of what have can drive the stock. >> i'm coming back to you then joe. what is priced in and why have the stocks done what they have done since the election? >> i think there's positive assessments and to come back at you, if we priced it in -- >> you can't come back at me. >> what's the threshold for vosifi, everybody comes on and says sell the regional banks what if they take the sifi level down. >> two were downgraded yesterday. >> we don't know that, that's all. >> just getting started. >> here's what else is coming up on "halftime." >> next up, a massive wave of
12:19 pm
price hikes for the bank stocks. how high can they really go, and if you're not already in, is it safe to dive in now? plus, the analyst who says ge's dividend is in trouble we're talking with him live straight ahead "the halftime report" with scott wapner and the traders is back in two minutes your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. throughout my career, i've been fortunate enough to travel to many interesting places.
12:20 pm
i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host. when you have the right financial advisor, life can be brilliant. ameriprise
12:21 pm
all right. we're back take a look at the dow, up 22
12:22 pm
points today, but it just hit another intraday record high there's the s&p, russell, nasdaq, nasdaq up about seven points but wall street today is getting even more bullish on the f.a.n.g. stocks. credit suites raising its targets on facebook, amazon and netflix. facebook target at credit suisse goes to 235. >> one name i was waiting to get into on friday that was my final trade and the reap it was my final trade. of all the nang stocks the one that stand out of interest to me because i see the growth on top of the 30 forward pe multiple. >> the pe is under fire, too, politically. >> yes no doubt about it, and that's what's interesting to me is they are under fire, and what has the stock done since then? all it's done is took a very, very -- you talk about shallow dips what was it down, maybe $1 or 2
12:23 pm
and now here it is moving to the upside they have another growth, i understand the upside of what's gone on recently but when you look at the facts of their numbers, their growth there has been absolutely staggering and video will be the next level that brings them probably towards that 200 level. >> one more comment on facebook, who has got it >> i would say kari and i were discussing risky programming i applaud them for what they are do, but i don't think you give all these guys a pass just because they are internet geniuses doesn't mean that they are going to nail programming, and it can be very earnings pensive, especially with the competition rate now. >> that's a lofty price target from now. >> it is this is up of them that i've been lucky enough to be in i'm not in it right now. i know pete bought it last week. in it two weeks ago and got out of it on that pop last week so i'm not the believer that he is in the short term. >> amazon at cs goes to 1,350
12:24 pm
from here. good call? >> i think that's a very risky call i like the facebook call bert, but on amazon, let look at what's happening with amazon recently will. the stock has underperformed tech and it's one of the few stocks that have not recently outperform the tech group or perhaps the s&p in the last few months i don't know exactly, but i think that's true, and you've got to show us, if i'm amazon and a watch, you've got to show us in the next quarter if they can really come through and bring the buyers in and show margins and not just spend, spend, spend so that's the big question can they bring it to the bottom line >> do you agree with have keri has to say the stock is at 990. that's a rich valuation. i mean, a lot of this is quantitatively driven. it's momentum stories. with solid fundamentals across the board, so the one that's most interesting to me is actually alphabet. >> that's where i'm going next. >> credit suisse goes to 1,350.
12:25 pm
>> hand how about the momentum it's re-established since september 25th this was a stock that was 925, right back to 1,000. this seems to have the most momentum in the near term. i don't think any of these companies have deficient fundamentals these are all solid fundamentals it's about quantitative bottles going back in and buying the momentum. >> what's the cheapest in the group is google? isn't it the cheapest? >> on a multiple basis. >> yes. >> okay. netflix. morgan stanley goes 225. 225 from 210 doc? >> like netflix, even though what i said about facebook with the programming and the cost of it, the competition, it's clearly one of the issues for them, but they have had a ten-year or more history of picking winners and in particular in the last five years big winners, you know, whether it's house of cards or any of these others so i don't give the others a pass, jumping
12:26 pm
on saying they will hit it out of the park just like netflix has. i think rita hastings has had a little magic, and i like that and i like the call. >> are we buyers of this if the sentiment around this name could not be more positive, right? "journal" last week on how it separates itself -- >> the reap it's interesting to me now is they were able to get away with something they couldn't get away with something they couldn't before, raising the prices in the past that was a kill ker and then reid hastings would come out and say that's changed and that's why netflix, yeah, there's more. >> no call for apple but third straight day of gains for the first time in a month, since september 1st. >> did you see katie huberty's call raised it from 194 to 199. >> ooh. >> she raised it up. >> point taken. >> talked about north american unit and bumped it up by 2 million and by doing so she had to re-ratchet everything
12:27 pm
the watch is going to be a big surprise. >> surpassed 158, it's on a tear up it really looks like a josh brown kind of chart. >> love you. >> pete is seeing some bullish activity in a bellwether stock we are going to talk about unusual activity when we come back, and jon is seeing some bearish action in a big name media play we'll hit them both in unusual activity plus, the jpmorgan analyst that is scaring the daylights out of ge shareholders todday. is the dividend at risk? he's with us live? he's coming up but first the sector halftime check is up next and we're back in two minutes. what started as a passion...
12:28 pm
...has grown into an enterprise. that's why i switched to the spark cash card from capital one. now, i'm earning unlimited 2% cash back on every purchase i make. everything. what's in your wallet? of emerging markets obsolete? at pgim, we see alpa in the trends, driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce. trade and travel surge between emerging markets. everyday our 1,100 investment professionals around the world search out opportunities for alpha.
12:29 pm
partner with pgim, the global investment management businesses of prudential. another day of work. why do you do it? it's not just a pay check, you actually like what you do. even love it. and today, you can do things you never could before. ♪ ♪ you're developing ai applications on the cloud. finding insights hidden in decades of medical documents. and securing millions of iot sensors. so get back to it. and do the best work of your life. ♪ ♪ aggressive styling, so you can break away from everyone else. and do the best work of your life. the bold lexus is. experience amazing.
12:30 pm
all right. we're back on "the halftime report." both the najarians show up today and both have unusual activity. >> what does that moan >> got that the right, judge. >> unusual activity. here at the sgloboard. >> iconic, take a look at this
12:31 pm
one, judge, as you can see, beginning of the year, just right at to bucks. it's at 27.5 right now they come scrambling in ahead of earnings, and they buy a fair amount of calls, so with earnings on i think it's the 23rd of the month, they came in buying the october 28 calls. stocks 27.50 so it's not a huge boost to the upside but nonetheless a pretty bullish outlook to buy 6,000 of these calls, bang, bang, bang real quick. also, take a look at what we see in ipg inner public. >> okay. >> these guys, martin soros' company, take a look, down 5 it cents and slamming down to about 2848 they come in and they are aggressively buying puts they also have earnings in two or three weeks and doesn't look like at least based on this bet that the earnings are going to be good. they come in and buy 6,000 puts really fast at the november 20 put strike i'm in puts in this one and i'm in the calls.
12:32 pm
>> didn't he make some fairly negative comments a few weeks ago right on cnbc? i think it was on "squawk box. >> he did. he said it's been a real struggle and things like what's been going on the nfl that we've been talking on and off about every day that's been affected because that's one of the biggest ad markets out thereto so we'll see if he can pull one out of the fire but i'm betting in the short term this one goes lower. >> pete what, have you got >> the semis we've been talking about micron, micron, micron and one of the things we left out is intel an i went back and looked october 2nd, 4th, 5th, all very large bullish activity yesterday, some had 21,000 of the fed calls. you can see this chart, nothing but roses for the upside, but take a look at this. now all the way out to september 2018 the 42 calls, now they buy these aggressively over 5,000 of those bought
12:33 pm
somebody expects this stock to be over 40, scott, in the not too distant future and some of it going out a little further, over $42 so the aggressive buying in there. i was already in this h.i'll remain in this and will be for a couple of months and i love continually seeing this paper just like we did in mike ron and even on this day when we got the billion dollar float out there for the secondary, stock not trading that you will bad when you look at it. >> let's talk about ge now because a note from jpmorgan is rattling investors once again of the industrial giant the key line quote we now see a dividend cut or adjustment increasingly likely steven tusa is the analyst behind the call and joins us on the newsline how is it going? >> very well >> thanks for being here you expect the ge to cut the dividend >> yeah, i think it's definitely a higher risk. i mean, they can do something, sell assets to fund the dividend, but, you know, at this stage of the game with the
12:34 pm
management shake-up as well as, you know, no clear line of sight to higher cash flow, we think, you know, paying out all your dividend in free cash flow gives you no ability to restructure and reposition for long-term growth and in the exiting of a former management is a sign that this is indeed on table and if they do sell an asset we think that's a window to adjust that lower. >> they tell -- ge does, tells cnbc that the dividend remains in their words a top priority. jim cramer this morning says that's not good enough does that language scare you like it scares jim >> i'm not really scared of that language, but i think, you know, something that's -- i have a lot of top priorities as well. that doesn't necessarily mean realistically, you know, they are going to come true so i think the term a top priority is not, you know, a definitive answer that they are going to hold a dividend, and i do believe that, you know, the messaging is if there is a portfolio move that's material, and material is a very relative
12:35 pm
term, you and i could think different things of material, that they will adjust that dividend, so, look, a lot is moving on the ground right now i think there's a lot up in the air, and i don't think anything is definitive, and i think that comment is one of those things. >> and maybe scared is a poor choice of word on my behalf but strong enough. the point jim is making is they don't seem to be coming out with a strong enough statement of a -- of something that investors hold sacred. >> correct. >> yeah, look, i think everybody is talking about what the guys at trian is going to do. there's a base business problem here people thought they would earn $2 a more. we cut today to $1.25. they are generating 80 sense of cash versus a 96-cent dividend flanerty and whoever at trian want him to do and the reality of the cash and businesses that are operating on the ground, and i don't see any sell-side bulls talking about the core businesses they haven't done any work on
12:36 pm
this power business, and so i think these expectations about what optionality and what management can do are just totally off the ma'am. >> you reiterated your sell the other day as the stock was getting absolutely hammered, and i -- and i quoted from many of your comments that very day, among them you thought that the management changes recently, with the cfo were no doubt negative statement, that that was making for the future trajectory of how investors should think about where the stock should go. >> yeah, look. he got a $5 million retention bonus in june to stick around. the pitch around the end of the summer was that, you know, bornstein was part of the solution and that, you know, i think various investors were going to meet with him and, you know, talk about some upside drivers. you know, the fact that right at the close of the quarter he now kind of exits -- exits the story stage left, i mean, you know, i -- and in my view the -- this
12:37 pm
is not, you know, kind of the board and flanerty kind of managing this as they expected this is absolutely a surprise, and so with all the -- when numbers get cut from $2 to whatever it is, $1.25 or $1.30 or even a little bit higher, i mean, you know, you combine that with a cfo departure, you know, in this type of instance, i don't -- i don't see how that mosaic can be viewed as positive unless you're stuck in the stock, and, you know, out already lost all credibility so why not throw something else against the wall. >> forgive me if i don't have this knowledge to top of mind. you went to sell when the stock was at what price? >> i mean, i think it was like 29, 30 bucks, something like that. >> okay. so the price target you now have is 20. it's -- >> yeah. >> it's north of 22. at what point do the shares become attract sniff just because they have come down so much >> i mean, right now with --
12:38 pm
with the lack of visibility we have around the base business and the question marks around where these guys go, i mean, so my $20 price target -- if i think my group has is a% to 20% upside from their price targets, i mean, you're got to get down to the teens comfortably so that they can kind of work their way back to 20 or the low 20s, so, you know, i never want to buy something at fair value. i want to buy something below fair value and so, you know, i think we've still got a way to go there are other companies like honeywell whole are hon their front foot pulling capital and, you know, driving growth this doesn't have to be a zero to be a sell there's so many other companies out there doing things in a proactive way without all the chaos, so i don't understand why people out there, if it's not, you know, terrible, then we should buy it. that's just not reality. >> yeah. i'm going to make that the last word stephen, thanks for joining us today. >> thanks, guy. >> jpmorgan, you as well >> reaction?
12:39 pm
>> yeah. >> so my thoughts on ge would be the following. there's a new ceo. i can't believe that flannery is going to do this as up of his first moves, and i also can't believe that the board would be supportive considering that the ownership of ge, it's institutional, but it's long institutional. it's people who have owned it, funds forever, people whose pensions have had ge i think that it would be a real bomb to hit the stock, and does he really want on his watch? >> no one ever wants to cut the dividend, keri, if your hand is forced. >> i don't think they are so forced i think they have opportunities to come up that money. they can certainly borrow the money. >> anybody else? >> i think that's a great point. >> it's cheap. >> tap the debt market and borrow the money and that's hoe you, you know, you keep the dividend in place. >> do you think that ed gardench trian is going to get into the passenger seat on a bus that's going into a wall?
12:40 pm
>> no, i don't think so at all, and i think that this is probably a long pause that needs multiple corridors to kind of reinvent itself and gain some form of interest from investors to come back in again, and, listen, i've said it over and over again while you wait, be in honeywell. that's your alternative. >> value loins said they think this thing can grow at 14% obviously all of us would be happily surprised to say general electric doing that. there's nothing in the recent past that shows it can it's a show-me situation right now. let's go to sue herera with all the headlines. >> hello, scott. hello, everyone. here's what's happening at this hour video shot by a somea county, california sheriff showing the intense flames of the tubbs flame. embers flowing above the squad car as the officer drives through, one of 17 to hit that state. as it spread to at least 2,800 acres, that's destroyed nearly
12:41 pm
600 homes. u.s. bombers and south korean warplanes flew over the korean peninsula again in a show of force against north korea the exercise takes place as president trump and his defense officials have been discussing options to north korea's mile of launches and nuclear tests. spain's prime minister addressing parliament saying this month's referendum in catalonia is part of a strategy to impose independence if you want and is good for no one. he added authorities broke the law by holding referendum. and mark zuckerberg apologizing for showcasing facebook's virtual reality capability with a tour of hurricane-ravaged puerto rico. the begin begins with cartoon of a tars of zuckerberg and another executive saying how neat it was that they could transform themselves to puerto rico. that's the news update this hour brian sullivan is here with what's ahead on "power lunch." hi, brian. >> hey, sue, thank you very much. coming up at the top hour, can we get a better deal
12:42 pm
with canada? the president sitting down with canadian prime minister trudeau to negotiate a new nafta we'll tell you what's on the line. plus, very latest on the devastating fires that sue showed you in northern california, and the fallout from the u.s. failure to qualify for the world cup. hundreds of millions of dollars may be at stake and arguably one of the most disappointing losses in u.s. sports history we'll touch all of that at the top of the hour on "power lunch. back with more "halftime" in a minute ♪ can i kick it?
12:43 pm
♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone ♪ can i kick it? ♪ to all the people who can quest like a tribe does... ♪ ♪fly ♪e to the moon ♪and let me play amon-- (ding) (bell mnemonic)
12:44 pm
12:45 pm
welcome back i'm julia boorstin in los angeles with a news alert on facebook there are widespread reports that facebook and instagram are down for some users around the world, including in the united states facebook won't say how many people are affected by this apparent outage, though we here in los angeles do have access on our mobile devices, but a facebook spokesperson says, quote, we're aware that some people are currently having trouble accessing facebook and instagram. now, other facebook headline just out congressman adam schiff and mike conway plan on meeting with ceo cheryl sandberg today. back over to you. >> julia, thanks so much julia boorstin in l.a. for us.
12:46 pm
trader blitz delta is higher after beating on the top and bottom line. jon, this one goes to you. >> yeah, well, we talked about it yesterday when we were lucky enough to have, you know, big 4% and 5% moves across the board. jetblue, united airlines, delta airlines, american airlines. there was aggressive buying in here, stock and options, judge obviously everybody is hitting it hard, and i have locked them in and exited almost all of those trade. >> a lot of love lately for j&j. >> yeah. >> another upgrade today to buy at jeffrey's, 157 price target. >> might be the right time, scott, when you look at companies like this where you've got pharma and consumer products and the devices side all three pieces working in cohesion with each other, got to the like that, and you take a look at the acquisitions they made in biotech. they are willing to spend money and show growth. top line growth, and i think this thing goes a lot higher from here. >> all right joey, cobank they go overweight on fedex,
12:47 pm
initiation 260 to price target. >> very reasonable expectation 222. don't know what really took them so long. they will report towards the end of this quarter, middle of december this should be a very strong upcoming quarter for them though with the holiday season. a lot of positive momentum global economic recovery bodes well. >> kari, kroger is up big today. looking for alternatives to the convenience store business. >> kroger is a stock down 50% during the period of time that the s&p is up 30%, and it's just getting killed or has been because of the quote, amazon effect can they pull this off and do it quickly? i think you have to be very, very patient maybe it will work over time, but it could take a long time. >> dollar pulling back to it lowest level in over a week. tus l get the trade from the furepicks when "the halftime report" comes right back
12:48 pm
at ally, we're doing digital financial services right. but if that's not enough, we have more than 8,000 ally's looking out for one thing, you. call in the next ten minutes to save on. and if that's not enough, we'll look after your every dollar. put down the phone. and if that's not enough, we'll look after your every cent. grab your wallet. access denied. and if that's still not enough to help you save. ooo i need these! we'll just bring out the snowplow. you don't need those! we'll do anything, seriously anything to help our customers. thanks. ally. do it right. i'll have the langoustine lfor you, sir?i. the original call was for langoustine ravioli.
12:49 pm
a langoustine is a tiny kind of lobster. a slight shellfish allergy rules that out, plus my wife ordered the langoustine. i will have chicken tenders and tater tots. if you're a ref, you way over-explain things. it's what you do. if you want to save fifteen percent or more on car insurance you switch to geico. sir, we don't have tater tots. it's what you do. i will have nachos! ...has grown into an enterprise. that's why i switched to the spark cash card from capital one. now, i'm earning unlimited 2% cash back on every purchase i make. everything. what's in your wallet? when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.
12:50 pm
12:51 pm
12:52 pm
12:53 pm
welcome back to the halftime report i'm jacque deangelis the u.s. dollar weaker fomc minutes due out later today. the dollar index falling to its lowest level in over a week. is this fed-related or about the euro gaining ground as well? >> you hit the nail on the head. it is about the euro in spain. they backed off the independence movement, asking for talks the euro is higher in japan, it looks like the prime minister is going to win re-election october 22nd consume her spending is up there.
12:54 pm
92700 is the support on the dollar index we have held that. if it gets through, we are going to 92. >> you say the longer term breakout story for the dollar is still intact break it down for us what are your levels >> the trend began at the beginning of the year. it was violated last week. i think the four days of weakness can still exist if it settled below 92.45, that's where i would ditch it and say i was wrong. i want a settle above 94 i think that's coming. i think the move is going to be to the up side >> in the meantime, "futures now" is back with a live show tomorrow at 1:00 p.m. eastern. final trades coming up next. plus, an iconic brand makes a bold move, suddenly changing its name, leaving a lot of people clinusirea, he hds inudg we'll discuss it next. i think it's terrific.
12:55 pm
your kids go to college and you start trading. >>yeah, 5 years already. 5 years, hmm. you ever call your broker for help? >>once, when volatility spiked... and? >>by the time they got me an answer, it was too late. td ameritrade's elite service team can handle your toughest questions right away- with volatility, it's all about your risk distribution. good to know. >>thanks, mike. we got your back kate. >>does he do that all the time? oh yeah, sometimes he pops out of the couch. help from real traders. only with td ameritrade. feel that? that's the beat of global markets, the rhythm of the world. for most, the cadence of today. to us, the pace of tomorrow. it's people and machines uncovering opportunity. cloud computing providing endless capacity. blockchain making transactions safer and faster. new markets born where they weren't before.
12:56 pm
with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. win an uncertain world?k predictable income pgim sees alpha in real assets. like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over $120 billion dollars in real assets. partner with pgim. the global investment management businesses of prudential.
12:57 pm
theextreme risk of burstd a pipes and water damage...y... soon, insurance companies won't pay for damages. that is, not if they can help prevent damages from happening in the first place. at cognizant, we're turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. get ready, because we're helping leading companies see it- and see it through-with digital. we're back coach is under pressure. the company announcing today they are changing their name to tapestry that got us thinking about other name changes throughout the years that maybe were a little suspect.
12:58 pm
alphabet the soon to be altaba, former yahoo! interesting to say the least what do we think >> they had to put that one behind them because of arthur anderson >> tapestry, though? >> tapestry doesn't work >> it doesn't tell you anything. >> hold the caviar until i return the man bags are on sale >> pass the gray poupon and the tapestry bags. >> alphabet at 1,000 doesn't do too bad. >> tagna, the old ganet. >> mondolis. >> that's not bad. >> any should have called it
12:59 pm
vegemite final trades, joe? >> we spoke before about larry fink i'll tell you one thing. his company is crushing it diversified asset management 475. black rockinc. >> philip 66, psx, distribution and refining we like the stock. it has broken out of a long-term base we think commodity prices help >> dr. jay >> i know joe loves this stock, nxpi these guys are behind what happens when you use apple pay or any of the payment devigss. nxp semiconductors big buyout in april at the 120 sfri strike >> we didn't talk about tech outside of fang. two names, i would go with babba and don't forget about microsoft. >> you would never let us. i have owned it since adela came
1:00 pm
in, $35 a share and all it does is go up, up, up he knows the right thing to do jack ma is doing the same thing with ali baba. the growth struck yur they have rig right now. i much prefer that over amazon baba over amazon >> but you love microsoft? >> yes thanks here is what's on the menu trade and taxes. president trump meeting with canada's trudeau this hour to renegotiate nafta as he gears up to sell his tax plan to middle class americans later on today total devastation out west firefighters struggling to control waging wildfires in california at least 17 are now dead and much of the wine region has now been destroyed getting a lift from uber's recent p.r. problems and its president is here to tell you what next, hop in and buckle up, be


info Stream Only

Uploaded by TV Archive on