tv Fast Money Halftime Report CNBC October 31, 2017 12:00pm-1:00pm EDT
a busy week rolls on earnings tonight include electronic arts among some other names. >> that's an interesting name, especially on the mobile side and apple and facebook are the ones we're looking forward to. >> let get to wapner and "the half." and welcome to "the halftime report." i'm scott wapner our top trade this hour. under assault. chairs of under armour hitting a four-year low and the company cutting its sales outlook and missing its earnings what ceo kevin plank just told investors. with us, joe terranova, stephanie link, joe lebenthal jon najarian. >> kevin plank is calling 2017 a reset for our business and our brand. the question is, steph, can they do that? i mean, it's just been an
incredible slide for these shares which are down 50% this year. >> that's going to take a very long time, a lot longer than people thought this is a broken growth story for sure they do 80% of their business in north america. that's where the challenges are. that's not actually surprising nike has had problems with north america. everybody is having problems with north america, but you've got to the find companies that can have offsets nike does, so under armour, not only do they have north america exposure but they have product issues, right, all the performance stuff. they don't have lifestyle, that's going to take some time it's still expensive because numbers keep coming down even though the stock prices come down, numbers are coming down pretty big time >> what plank said, we look to close out 2017 do not expect these conditions to improve, he said. visibility is poor. >> right, and you're hoping that kevin has thrown in the kitchen sink here. do you go and buy this stock here absolutely not because you need evidence to suggest you're marking a turn, but when you're
running inventory up 22% and your sales are down 4%, when your guidance just a couple of months ago is suggesting 20% growth in q4 and now given your full-year guidance it's flat, these are metrix that cannot be ignored. i agree completely about what stephanie is saying, and the problem is this, scott you're talking about a marketplace both domestically and internationally that is rewarding companies that are growing organically. this is a company that's not only -- not only not organically growing but try to purchase the growth and real is not seeing any fruitfulness from those purchases. >> doc, very sobering view from cramer this morning. calls the issue secular. says, quote, the company has lost its way it's no longer a brand that has any resonance. >> well, here's. >> is that really where we are with under armour? >> sadly, yes. sadly, yes i mean, i love the guy i love kevin plank i think the product is great,
but just as stephanie and joe have said, you know, this is a real problem right here. kevin is a great leader, and he's managed to rally the troops before, and my thoughts and hopes are with you, kevin, even though right now i'mnot a shareholder. i think the real issue -- >> what would it take to be a share holder >> an activist you need someone to come in and turn it around he's a leader, but he is not a guy who has turned it around. >> because of what they did, the governance here. >> right. >> and the stock. >> right. >> he needs a friendly activist. he needs somebody to come in here, judge, and basically is a turnaround specialist. kevin plank is a visionary, and he did a great job launching this company now, on the way down, unfortunately, he has not shown that he can deal with wall street expectations. he just said on the call, judge, our cost structure is way too big for a company our size this is going to be difficult well into 2018 those are virtually direct quotes from the call. >> i don't think it's an activist though, it's actually
you've got to get the product to turn around, and that takes a very long time to go from 100% performance to some lifestyle and having that blend. >> the president speaking at the white house about taxes. here's president trump >> thank you very much for being here for the incredible work you're doing to help us pass the really historic tax cuts there's never been anything like this in the history our country. it's cut and it's relief and it's also reform, and, frankly, that's also simplification, so we're covering everything. there has never been anything like it, and it's so important the economy is doing very well, but it can do much better. a lot of jobs are going to come from this, and a lot of companies are going to start pouring back into the united states in fact, we'll be announcing one big one sometime very shortly. a very big one, coming back into the united states. all of you have done a tremendous job mobilizing your
members, talking to the members of congress which is very important and making a strong case for tax reform in the media. the media is not all neighboring so we can get a fair shake now is our time to redouble our efforts. your country needs you more than ever about you are leaders of this country and certainly leaders on this subject, and you know more about it than anybody. we need you to be united, committed and proactive in order to overcome the forces fighting, and there are forces fighting out there that very much benefit by the way it is now, but that's bad for the country. they know that, but they are fighting for themselves. they are not fighting for the country. in a few days i'll be traveling to asia to advance america's economic and national security priorities i'm counting on all of you to be back here working to maintain our momentum on tax reform and
tax cuts, and in a will be had a short period of time i'll be away for about ten and a half days, and we'll get back very quickly we're meeting in china, in south korea, in japan, and we're going to vietnam and going to the philippines which is a strategically important location where the previous administration was not exactly welcome, as you probably remember the democrats will say our tax bill is for the rich, but they know it's not, and what they will do is -- they don't even know the tax bill. the tax bill hasn't even been really put out yet it will be over the next short period of time, but they immediately say, oh, it's for the rich it's for the rich, because that's the right thing to say, i mean, for them, but it doesn't work, and they know that in fact, i think we'll have some democrats joining us in voting for this for the reduces taxes because it's a tax bill for middle class it's a tax bill for jobs it's going to bring a lot of companies in, and it's a tax bill for business which is going to create the jobs we're bringing it down from 35 down to 20
while i'm in asia members of my cabinet will be traveling all around the country talking directly to taxpayers and focusing on the regional media which we find to be a much more credible media, to be honest with you in fact, i found it to be incredible, how good they are. of course, secretary mnuchin, is director cohn and my entire team will totally remain focused on tax reform they will be staying here and will continue to work closely with all of you. they have had a great relationship with most of the people in the room we need your continued input to make sure that the final bill gets all of the details right and that we get that approval. i want the house to pass a bill by thanksgiving. i want all of the people standing by my side when we get ready to sign by christmas, hopefully before christmas you'll all be in the room standing front row center. i think we'll be able to find a place where you can all stand front row center it will be had a big event it will be the biggest tax event in the history of our country.
thank you all for being here today. we have a couple of folks that i would like to have say maybe a couple of words while we leave the media. tom donahue has been president and show of the u.s. chamber of commerce for a long time tom, do you have anything to say? >> well, thank you very much for having me, mr. president. >> thank you >> the business community has been waiting a long time for an administration and a president and a willing congress to do what we haven't done for many decades, and we think we would lucky to arrange a budget so that we'll have a better opportunity in the senate. i think you're right there are some members of the democratic legislature that will come around on some of this, particularly if the numbers are as promised, and you hit it right on the head. we've got to work on it.
we're going have some differences among the the business community on what should be the takeaways and the adds, but we just have to work on that, and i think your -- i think your planning is really quite good off to asia and everybody else get it worked out and then come back. >> come back and let's see what we have. >> thank you very much. >> i appreciate it very much and what you said is important we did get the budget passed, and as you know that was a big event because that doesn't often happen hand we got it fairly heasley passed i think we had a couple of extra votes if we needed them and more than a couple of votes if we needed them. there's great spirit for this. the republicans have a tremendous spirit. we'll have no democrat support we may have on the tax cuts because i think it's going to be very hard for four or five or six of them to run successfully saying they want to raise taxes. the democrats want to raise taxes and really create obstruction, and -- and the republicans want to lower taxes and we want to get rid of regulations. i've gotten rid of more
regulations in the first nine months than any president has for their term in office that's a big at the same time, but we've really just begun. i who say we have at least another 50% that we want to do, so that's going to be fantastic, and in some cases it's statutory. we have to give a notice and then you have to give another notice and you have to wait 90 days, but we've gone along that statutory process, and i will tell you, tom, you're going to see a lot of additional relief from these horrible regulations that have been killing our country. they have literally been calgary. as you noticed, gdp was just announced, and shockingly to a lot of people, despite hurricanes, which possibly could be considered to be one point, we were at 3, and we're at 3.2 last quarter, but we were at 3, and to be at 3 with a one point, that would have meant we would have hit 4 or thereabouts, and
those are numbers that have not been seen for many years, so we're doing well, and we'll continue to do well. the big thing is we have companies that really want to move back into the united states now because of regulation, because of what we're doing with taxes, and some big ones are going to be announcing very soon dirk, could i ask you to say a few words from the national association of wholesale distributors that would be great. >> first thing, mr. president. thank you. appreciate the opportunity to be here a few of us in the room are old enough to remember being in this same room when president reagan was working on tax reform. >> you and me. >> you don't look that old. >> tom was here. 30 years or so have passed the tax code doesn't resemble what was done in '86 the form is lon-- reform is lonn overdue. i represent an industry with
high tax rates frankly, they are tired of paying the other guy's taxes unstated, but i assume that the kind of price of admission for being here today is that you support the process going forward. obviously each us have to see the details and then maybe one thing or another that we'd like to see different, but the broader perspective is that for the good of the economy, the good of the country and frankly i think for the good of hour members you have to support the process going forward. you have our commitment to do precisely that. >> that's great. >> and we thank you. >> that's really great i appreciate it. so important, you know, we talk tax cuts which is really to me very big thing, the tax cuts we desperately need them bull so many other things are happening including bringing $4 trillion back into the united states, and that money is going to be put to work in our country, for our people, creating our jobs and
factories and plants i think the number could be higher than 4 trillion it's been 2.5 trillion for so long everyone shade 2.5 trillion but it's gotten a lot bigger they kept saying 2.5 i think the number will be well over $4 trillion will be coming back into our country, and so many other things. one. other elements that are important, karen, and you're going to say a few words next because i'm dying to hear what you have to say, but one of the things so important is simplification too complicate asked, and we're simplifying it greatly, and i want to thank all of my folks for being here and working on it gary, steve, everybody the process is complicated but the end result will not be that complicated. it's going to be -- people are going to pay less tax by a lot companies are going to pay less tax by a lot that's a big difference and companies are going to start rebuilding, and they are going to stay here and they are going to expand and they are going to build new plants in this country. they won't be going to other countries like they have been
for many, many decades karen, could you say a few words, small business entrepreneurship council. >> sure, well, thank you so much, mr. president, for your support and leadership on this issue. this is really the -- one of the most critical issues for small business, and they know in they get tax reform through, they are going to have more capital to put back into their businesses they are going to invest more. they are going to provide higher wages, better benefits for their employees. you know, these business owners and entrepreneurs are also leaders hat the community, back in your communities, and they do see the lack of dynamism, the lack of business dynamism, and they don't see new business creation in their communities, and that's a really serious problem in this country, the lack of entrepreneurship weak entrepreneurship. according to our numbers, 3.2 million missing businesses in our country because of people not taking risks. >> right. >> so we're very excited about tax reform in terms of the growth it will bring, the
investment it will bring making the u.s. a haven for capital again because we need to get that edge back, need to encourage more people to start buses, particularly millenials. >> right. >> starting businesses again which is going to add to, again, our competitiveness so thank you. >> one of the things that we've been talking about and that we've seen and there's never been anything like it is the level of enthusiasm, the enthusiasm for business, for manufacturing. it's the highest level it's ever been highest level since the charts started, and we have a tremendous level now of enthusiasm for business and for manufacturing and -- and nobody has ever seen anything like it, and, of course, the stock market is at an all-time high, his forric high. it's never been -- i mean, it's going up i think it was 54 times since i was elected. we've hit the record, 54 times, and i notice it's up a little bit again today so that's always good we're going to try to keep it going up, but we've created
almost $5.5 trillion in stock market wealth, think of that, $2.5 trillion since november 8th. so we're very honored by all of that, but a very big part of it will be tax kupts and tax reform and we'll work on that together. thank you all very much. thank you very much. >> thank you very much, everybody. >> thank you that's president trump in the roosevelt room of the white house before members of the business roundthat i believe, and as you heard there members of the chamber of commerce as well talking taxes says he wants a vote in the cuss by thanksgiving. thinks some democrats will join in as well and also at the end he mentioned the stock market, the record-setting stock market that he enjoys watching. let's bring in eamon javers at the white house. our own ylan mui is at the bureau following the story >> reporter: one of the things we didn't hearings just as the tape ended, questions from reporters. we're told one of the reporters in the room asked the president about this idea of phasing in the corporate tax cut -- rate
cut that's been talked about yesterday. that got a lot of market attention yesterday. the president said he doesn't intend to do that in this meeting with reporters just now. that's an interesting moment not entirely up to him because congress will be wright the bit. also interesting interplay between the president there and some of the trade association leaders in the room. they have fwln before and seen these efforts under ronald reagan, under george bush, et cetera, and they know how this effort compares to previous ones tom donahue of the u.s. chamber saying businesses will have some differences among itself in terms of this, but thinks the president is doing right thing, go off to washington hand let washington hash it all out and get the details ironed out and heard from dirk van dongen, a veteran, national association of the wholesalers, a veteran and emphasizing some of these points, that his industry sees it a little different than other industries so all of those differences will have to be worked out and both leaders said it will depend on what's in the details of the plan which we're expecting to see as soon as tomorrow. >> hey among the details,
questions, as eamon said about the corporate tax, a phase-in or a one-shot deal and then also continued questions about the state and local deductions which kevin brady in an interview today seemed to suggest there was no relief for those in his plan. >> well, what chairman brady said was that there would be no relief on the incomes tax deduction, but what he had said earlier is that they are intended to keep and retain the deduction for local property taxes so that is one way that they are looking at presenting a compromise to members who come and represent high tax states. representative tom reid of new york said that he supports this type of plan, so that's one way in which they are trying to build that unity within the republican conference itself for this tax bill, but a lot of questions remain to be answered, including not just in the house but over in the senate vice president mike pence is going to be head over to capitol hill to have lunch with republican as far as today senator susan collins of maine
has said she doesn't want to see any tax cut for millionaires and doesn't want to repeat estate tax so you can see where the battle lines are being drawn out as we get into the heart of the debate. >> thanks. eamon, before i let you run. quickly no, comment at all publicly as we heard there by the president about the events of yesterday, the indictments of mr. manafort and his associate and the guilty plea by the former foreign policy adviser other than, of course, what the president has said on twitter. >> yeah, that's right. you heard some of the reporters there shouting out questions to the president about papadopoulos, george papadopoulos hand also paul manafort the president, we're told, was asked if he would pardon paul manafort that's an open question. according to the pool report, he paused for a moment, considered answering the question and then didn't answer the question and answered the question on taxes, a question he felt may be safer ground for him right now a lot of intrigue surrounding paul manafort because when you saw his lawyer yesterday, the first thing that manafort's
lawyer said, kevin downing, to reporters after coming out of courthouse was president trump was correct. there was no collusion, so a very direct message being sent from kevin downing who told me when i was asking him whether the white house has anything to worry about in terms what have manafort may testify to. he said the white house has no concerns about mr. manafort. a very direct message from paul manafort's legal team to this white house, that seems to suggest that he has no intent to flip, even though he's under an extraordinary amount of legal pressure right now. >> eamon, thanks so much our thanks to ylan mui as we said in our d.c. bureau, i'm op on the north lawn of the white house for us let's get over to meg tirrell with a market flash. seems like the ceo of pfizer is talking about taxes. >> reporter: one ceo who is eager for tax reform to get done he reiterated his optimism and is eagerly awaiting the details. as for how tax reform will impact the comcorporate
strategy, a lot of strategy about the company's potential for a big acquisition, he says that will depend on the details of tax reform. interesting to hear trump talk about companies leaving the united states and saying this tax reform plan will prevent that from happening. pfizer, of course, tried that twice with two massive inversions, neither of which was successive we talked about drug pricing and said anxiety on drug pricing is due to insurance plans hand high deductibles. focus on the industry is misplaced in that sense and also asked about amazon on the call today and it's getting potentially into the space of drug distribution. he says pfizer hasn't had any direct conversations with amazon itself and are always open people who will make the system of drug distribution more efficient. and there's rampant speculation that pfizer is interested in bristol meyers, they wouldn't comment on that but a lot of speculation that after tax reform they may be interested in a deal of that magnitude pfizer down there on earnings and nothing as to what we've been seeing from the rest of
pharma the other big story is milan, of course, the company putting out a statement after the news hit the stock that its president has been added to an expanded lawsuit alleging drug price collusion among generic drug-makers. the company saying that they have deep faith in the integrity of their president and stands behind him fully both intend to defend this case vigorously and look forward to the opportunity to present a full defense. >> meg, busy day on your beat. meg tirrell, thanks very much. let's get back to our conversation and debate about under armour jimmy, we hadn't heard from you yet. stocks hit a four-year low what's your take >> i wouldn't touch it i think you've got had a long way to go here, and there's an existential risk here. heim not saying this is definitely going to happen, but, you know, the reason they had such mojo two years ago is because they were signing up athletes, getting endorsements like crazy now, particularly in the mast six months you've heard a lot of athletes say under armour is not the place to go to get an
endorsement. certainly in the basketball season last year you heard that. and that's going to place more pressure on product placement for under armour which is frankly where i think a lot of the north american shaels growth came, from so, you know, first off, you're not going to want to touch this stock for the next few months anyway. a lot to prove here, but even after that you need to see signs of a tangible turnaround before you get in, and i have no idea what the earnings power of this company is, so i don't know what malt pal to put to it. >> one wall street analyst says earnings were worse than expected let's say hello to jamie welcome to "the halftime report." >> thanks so much. >> when is this going to get better >> it will take some time an over the last year they have expanded distribution into mass market retail for the first time, and i don't think they have done that with enough segmentation relative to their historical partners like dick's sporting goods, so the problem is the product cycle is long it takes them, you know, 18 months plus to develop new
products, and so to try to figure that segmentation into that lower-tier retail is going to take time and i think we've got more pain to come. >> you have a sell on the okay is the story really as bad, jamie, as the stock price and fall would suggest, or are we just in a stage now of piling on and looking for any possible negative that we can come up with about a company that most people used to love? >> well, i mean, the reality is that they cut guidance by 50% today so i think with the stock down in the mid-teens, that's definitely justified, and i think the question, is you know, where can earnings go from here? what kind of cost-cutting can they do? you know, as kevin plank said on the call, they have a cost structure that's just too big for the revenues as the business is today i think it will take time for them to cut costs and to frankly turn the product around to grow again. >> they call it a reset. is that the appropriate word for what under armour is going
through? >> it's going to be a prolonged reset. i don't think it's going to be over in 2017, and so, you know, i'm not sure that this is really about them trying to figure out, you know, they have grown performance, but is there a way for them to grow beyond performance, boast domestically and internationally. >> is there any risk as one of our panelists suggests a moment ago of athlete exodus, big-name athlete exodus >> hard to tell. i mean, you've seen some athletes come out i think over the last year and express some concern, and i think with these challenges, you know, nike has deeper pockets, and so i think the -- the incentives for athletes to go to under armour are going to have to be high in order to entice an athlete to take the risk. >> yeah. jamie, appreciate your time. >> thanks for bearing with us with the breaking news we had today as well. >> sure. >> jamie mayor morning the analyst at bernstein. from one stock that isn't working to one that certainly s.apple shares hitting a new
all-time high earlier today just as the first reviews come in for the new iphone x we're joined by todd hazelton, one. very first to get his hands on the phone. what do you think of the phone >> the reviews we have in the wall from our viewers has been pretty glowing. >> i loved it. the best voen i've ever viewed and the best phone can you buy right now for a number of reefnls the most advanced phones that i've seen built into a smartphone samsung has done great things hand apple did it better hand that's why this is a must buy for people who really want the business in a esphone. there are a lot of other phones you can buy. iphone 8, for example. iphone 7 even. still recommend to people who don't need it all. >> company says demand is off the charts that's what they said on the 22nd so about four days ago. price-wise, what about the price? that's one of the big concerns that everybody raises. oh, it's $1,000, north of $1,000. >> 1,000 or 1,150 depending on the model you buy.
here's what you haven't talked about a lot. you're paying a little down payment or going through apple no down payment and paying it off like a car lease so it sounds like a lot of money but it's not really that much as you pay it off, and on that toptic a lot of phones actually cost $1,000 last year's iphone 7 plus at the high end would approach $1,000 the galaxy 8 from samsung is $950 this one made the headlines. >> the nato official recognition, did you like this >> i loved this. >> is it quick >> incredible, really fast i'll do it right here but you're not going to see it. it's looked. i lock at it and i swipe up and it unlocks doesn't take much and you can use the same sensor for all the fun things h.i don't know if you've heard about the an emo g emojis they have something that others don't have. >> facial recognition, he obviously answered that. in terms of sizing and
flexibility, is there a major difference from really what i view as the last major product experience was when we went to the six plus >> right, yeah that's a good point. you went from 6 all the way to plus to 7, 7 plus and the design didn't change. >> right. >> now we have a great new design and that's why this is important because it stands out. shows that apple isn't just sticking with old industrial design and adding new components but actually trying new things here you have a brand new panel from samsung, but apple spent a lot of time with their engineers actually tuning it so it works better and colors are bert a camera i haven't seen anywhere else with a portrait view and it blurs the background and advanced cameras on the back not even in the iphone 8 plus which has a zoom had lens which allows you to take crisp and clear photos, even if you're bumping around anything you didn't like. >> i expected a pretty positive review. >> there are apps that still aren't adapted to the display they have big borders on top and
bottom and don't like right. otherwise i'm waiting to test it right and the battery life ran out pretty quick and otherwise i think that's a great phone battery life and the apps that node to be adjusted. >> is the screen size bigger than the 6 plus? >> this is a 5me.8-inch screen d bigger than on the 6 plus because it doesn't have the big bezells and the home button, the swipe mechanism works now to go home. >> good stuff. thanks for being here. we can trade the stock while todd is sitting here the other big news, of course, apple hits its high is word that, you know, maybe they are going to stop using qualcomm components. >> yeah. that's qualcomm shares getting hit on that. >> just hammered. >> great news for apple and anybody who is lucky enough to buy it, as i musted a m. i was lucky on that dip, judge, when i made that 10% correction to 149. we talked about it, talked about it, that gap that it's filled.
just about off to the races. a little blip here and there with the usual crap about oh, they won't get as many phones out there. todd and his review says people love the known it's going to sell a thon. i believe it carries well through the first quarter into the second next year. >> this selloff in qc ho mm overdone >> no. it's good on apple's part and showing up on qualcomm's share a long running match, the legal issues between apple and qualcomm qualcomm was stung when they asked for an innings junction. >> to use your met afoifr, would it be game, set, match >> i don't think it would be and here's why the legal issue at play here is the intellectual property that qualcomm is supposed to get paid form the chips actually are a very lore gin business for qualcomm the question is will apple pay for the technology that qualcomm owns that's ubiquitous in all phones that's the heart of this legal matter but, scott, the real point here
is that qualcomm needs to settle this had you know, they need to settle this early in the next year. both sides need to move hon from here. >> what about the stock, steph, from here? you know, friday you can order the phone and demand, as they shay is off the charts maybe demand is going to be stronger than people expected. i don't know but the stock has had a great run and what do you do with shares >> i prefer the parts guys the 3-d sensing, and i like broadcom very much, still trading a at a discount to the group but as far as apple itself just beginning a new product cycle, and i think you just let it ride. the stock is not expifbs, and you also get into next year, you'll get capital allocation again. that story comes back into the phone as for the product cycle. >> do you have a last word >> qualcomm is the only chip-maker with gigabit out there and i would be very curious if apple decides to
ditch qualcomm next year. >> yawl come shares down 7.5%. >> go read todd's full review of the iphone x. >> take a look at where we're finishing overseas ftse, the dax and cacaron over in france. a lot sun changed. a lot more ahead on "the halftime report. >> next, the call of the day zeros in on a big-name stock that one analyst thinks is about to jump another 25%. plus, alphabet, twitter and facebook head to the hill to face a grilling over what they knew and when they two it in connection to russia's involvement in the 2016 election. tomorrow on "the halftime report, vice chairman of the senate intelligence committee, senator mark warner after he gets his chance to take on those three companies. we'll beig bk. rhtac at fidelity, trades are now just $4.95.
february. >> amazing, yeah. >> i don't think so. >> the earnings, it's a show-me time. >> even so, by the way, said the same thing in september. we'd have volatility in september but nothing but blue skies. >> salesforce hitting a new all-time high. gunk heim nirnated coverage of the stock with a buy rate and a 1 it a price target. made this the call of the day. stephanie, do you like this, best position for cloud adoption with share gain potential. that's what the firm says. >> i like it, own it they an ai component and international upside they also have been vertically integrating their cloud products within their customer base, so occurring revenue is actually starting to improve. it's growing 20% the big wild scarred margins that's what the big beef is on this company can they see growth with margin expansion? i think they can, but it's certainly something to -- to be proven out i would say this they have a very big analyst day in a couple of weeks, dream force. the stock usually trades very
well into dream force so if you're long i'd stay long. >> growth drivers, gunk heim does, in the, quote, early stages. >> yeah. >> gunk heim thinks they can grow by greater than even your most optimistic view so they are definitely on board. >> i hope they are right but i don't think you need that. you can continue to do what they are doing and keep your head down i think you need to see operating leverage that's very, very important. margin expansion with the growth. >> unusual activity here, just the 23rd of october. we cited it on this show those options have tripled i believe since then it was 98.5 then hand now that's 102.5 or thereabouts i think it just goes higher. love this one. it's one of the best leaders in the industry. >> the 49%. >> 49% gain year to date for crm. >> speaking of unusual activity. he sees more and it's a steel name he's going to tell us how to play, it how the stock may react next on "halftime.
first michelle with a look at what's coming up on "power lunch." >> at the top of the hour, here's what's coming up. pharmaceutical companies are under fire a number of the stocks are taking very big hits because now 40 states are suing them for price-fixing we're going tonight view one of the attorneys general behind that suit. more on the fallout not just pharma tech also facing heat. lawyers from facebook, twitter and alphabet are going to get grilled on capitol hill over russia's election meddling the regulatory threat to big tech, and the growing housing crisis no, not that kind of crisis. it's a labor crisis. demand is through the roof but finding skilled workers, had a nightmare. the lengths home builders are going to to step up. "halftime report" is back in two minutes. power starts at the top of the hour don't move this is electricity. ♪
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already. back on "the halftime report." jon najarian at the telestrator with a double dose of unusual activity in the options market today, and letter "x" stock kicks us off. >> u.s. stole a wild ride, a wild ride today ahead of earnings after the bell tonight, judge. stocks selling off 4.5%. do we have put activity? no, upside call activity take a look. nov 27 calls, aggressively bought you'll see 10,000, 11,000 of those accumulated very quickly again, deep end of the pool because earnings are tonight so this is like a binary bet something or nothing i'm in these i'll probably be in this stock through the earnings tomorrow. another one real quick. >> yeah. >> take a look at pxd. pioneer, they are aggressively buying calls in here there you seat stock at 150. they are buying the 155s and you get a whole 24 hours on this
one, judge, because earnings aren't until tomorrow so there's two stocks both with earnings earnings palooza, pioneer natural, pxd and u.s. steel. i am in both and we'll see tomorrow whether or not i'm buying pizza. >> come on back. >> thank you. >> or something better >> you already owe us something. >> that's right, microsoft. >> e-mailing us from london telling us about that. >> come on back over facebook, google, twitter, set for two days of grilling on capitol hill over their roles over russian meddling in the presidential election. kayla tausche in washington. >> it's going to happen in two hours time the companies were prepared to tell the lawmakers that the scope of russian influence hon their platforms during the 2016 elections and beyond was wider than exposed facebook point to $100,000 in ad spending by the russia internet
agency with 3,000 adds, 80,000 posts and 120 pages on instagram. the reach that have content was 126 million people or more than half of the voting population. facebook's general counsel in remarks to the senate judiciary committee calls it, quote, a tiny fraction of all facebook content, but still says any amount is too much these companies, scott, have a delicate task at hand on the hill this week they will want to err on the side of full disclosure and high estimates so the committees don't feel fleeced take what happened to twitter. twitter's public policy team initially turned in 201 rogue acountry to senate intelligence staffers, yet today they are going to say more than 2,700 accounts, more than a ten-fold increase have been shut down because of ties to russia's ira. twitter will report that more than 36,000 accounts could have other russian links. they will also stress the preventive actions being taken
since the specter of regulation looms large for these companies. not just through political ad disclosures but also through potential new limits on foreign shareholders since it's the first of two days of questioning, scott, anything these companies say on the hot seat today could be used against them tomorrow. >> yeah, and you alluded to it, kayla, when senator warner, who by the way we'll interview tomorrow after this hearing blasted twitter for their -- that closed door session for not being forthright enough. >> he said he was deeply disappointed in the performance and in the disclosure that the company had provided to the staff of the committee at that time, and then he later clarified and said what twitter put forward was only where that company had overlap in accounts that facebook had already identified he was saying they basically hadn't done their own work to comb the platform and find exactly where these rogue accounts and where these rogue actors and activity were taking place, but obviously based on the scope of the numbers that
we've seen in the testimony alone, they are prepared to say that this was much bigger than we ever believed it was earlier on. >> kayla, thank you. we'll catch up later on with the senator about the hearing and talk to him about all of this and much more. this issue, guys, of just regulation, increases regulation over google. google and facebook, put twitter to the side more had a minute. remember when we were told about that issue regarding these two companies? here's champ here's chamath. >> this to me is the single biggest risk for those two businesses which is a regulator says, especially in europe, you need to dial back the capability of your advertising. what that is again is pulling that thread a little bit longer and that's what starts to unravel, the true monetization capability of those buses and that's the risk that has to be
mitigated. >> are investors, the question is, are they taking those risks seriously enough with two stocks have that absolutely killed it this year, especially facebook, up 56%. >> i think that's a concern that many have suggested, and, yes, it begins in europe. it is a long road to actually get though to the point where you would see regulation, but i think every investor that is in these large megacap tech names is aware of this you go to conferences, and people will off the insight that this is the biggest fear that they have in the marketplace right now. >> is this the greatest risk right now the surrounding facebook and google that chamath raises. >> so far what you've seen is things that result in fines, whether it's with google and privacy issues and whether you can remove your name from a search and fines associated with that or in a similar way tax issues with apple, not a name on our list, but obviously the very largest company out there. these are ways that europe so far has extracted money from
these companies. what you have to worry about though is both in the europe and u.s. does antitrust concerns ever come up you know, there's really not viable competition to google at least in the search business i mean, we've discussed with this amazon and another name not on the list but something we should discuss there is some competition from other names like jet but amazon is the killer to e-commerce. to the warning shot across the bower for antitrust concerns, there's a warning, but joe, what you were saying, a long way off but you should have -- >> going s&l willing to trade this 20 times because you have an overhang and there's a legitimate potential threat from europe so i absolutely believe that we're all aware of it, but i think that that caps your multiple on google. >> jason kalikanis has been pretty critical of facebook and
mark zuckerberg, the angel investor the company has to be regulated, he says, and it has to be harsh regulation no matter how many letters of apology he writes you can not trust zuckerberg. >> that's a hash statement. >> not so much different than what other folks have talked about. >> how much of what you're buying with the reach that you can get with google is because of all of these things that they know about to jim's point, what if they start putting up roadblocks and, for instance, over in europe they do that first, then how much do you haircut it 10%, 20%, not talking about the entire stock price, but you're adjusting your earnings outlook based on a 10%, 20% downward revision if they can't use those things that's what you worry about when that comes around. >> dollar on pace for its second straight months of trades. how the futures traders are wayg weill find out next.
my name is cynthia haynes and i am a senior public safety specialist for pg&e. my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california. welcome back to the halftime report we are watching the u.s. dollar tracking for its second straight monthly gain this two-month winning streak coming after a historically bad start for the year for the
dollar does the dollar have more room to run at this point >> well, just because it's been up for two months doesn't mean it's going to keep going we need interest rates to get above the 2.7 level. we're not close to that right now. i think we need to see 3% gdp growth or more for the next six months for us to get interest rates to move higher that will cause some strength in the dollar when you look at this market, the dollar made a nice run i'd be looking to same some profits. >> let's talk about the levels for the dollar index holding at 94. what do you think are the key levels to watch? >> i think the dollar index above 94 is the key. i've got a target of 96. we slight lly disagree. the fed is going to get serious about rates. the cme watch tool is telling you that the march, second rate hike for next year, the probability of that is gone from about 22% a
month ago to about 40% today that's starting to ramp up and will give us some sport for the dollar >> thanks. i'll see you on the online show. we have chief investment strategist he will unveal an unusual trend in the market that could lead to more gains that's at the top of the hour. >> thanks so much. final trade kos coming up next big reveal is next i think it's terrific. 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.
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the global investment management businesses of prudential. we're back on the halftime report >> i got out of that one still very cheap i still like the restructuring management team is great i just don't see a lot of upside here the stock didn't go up that much i did put the money into pinnacle food. that's a consumer staple company. i like their product innovation. that's where i'm putting my money within the staple complex. i hate to sell it down here. so cheap such a great management team
>> ge, seventh straight down day. lowest level in five years you bought it last week, 21.50 it got as low as $20.06 today. >> you're going to tell me now it's better than that? i said last week, i scaled in to half position in this one. stephanie said why are you chasing this pig i am because i thought it was cheap and i can write calls against it for 50 cents. this chart looks almost identical. when they come up with this cut, does it happen between now and the 13th of november, i think it does >> thege down for the seventh
straight day we're going to close it up in a few hours. let's do final trades. joe feoseph yourself up first >> these are stocks. >> why the stock go down >> they talked about the eu anti-trust case. they said fine could be in excess of a billion dollars. these are report the quarter last week. the response has been not so good i have no problem if you want to sell of your visa and mastercard they've had some run >> what are you got? >> an industrial that does work because i don't agree with john on ge at all it's really hard to follow caterpillar when they are seeing such operating leverage.
long story short i'm buying it. ie li i like it for long term. >> allergan, i think it's going to continue. it has more intangibles. >> softbank, rumors they were going to break off from t-mobile >> all right see you tomorrow power starts right now here's what's on the "power lunch" menu. farma is under fire. most states are suing for price fixing and keeping prices artificially high on 15 different drugs. the iphone x reviews are out cost a cool grand. so far most reviewers think it's worth it apple stock hit another all time high moments ago. housing's labo