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tv   Fast Money Halftime Report  CNBC  March 23, 2018 12:00pm-1:00pm EDT

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bond market isn't doing much >> no. even after durable goods, it's not doing much to budge yields the opposite reaction. they're sitting down there in the background 2.8% thank you very much. that does it for us on "squawk alley. it's time for the halftime report with squat scott wapner welcome to the halftime report we begin with breaks news this hour fears of a trade war with china taking a new turn. the country's ambassador to the united states saying moepts ago that xhin won't rule out scaling o tout buying of treasuries. stocks are selling off with us to discuss all of this today, jim, steve, josh bron wni here mike wilson as well. kick this around steve, this was, if you, we know about some retaliatory tariffs china was talking about.
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slapping on us, but this would be the biggie. >> it would be what would be bigger i sent this last night, actually, they started selling thinking about not buying. because we have tons of supply coming on. just take a look at funding right now. rates. but if they start talking about that, that takes it to a whole new level and frankly, where they've got us we'll see. right now, all negotiation destabilizing to the market. i think you have to pause on equities here adding more exposure because they've gotten cheaper every day. that's my tact and i think you have to stay away from some of the traditional market leaders what i will tell you, stocks are still overvalue d in some sectors. cat. deere. you can go through the list and say we're at the late end of the cycle which has people additionally nervous because of that factor, they don't see the beginning where you get rescueded. >> josh, dow was in correction territory. it is right now. you know, the futures were down big overnight. market came back
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up about 100. this headline crossed and i don't know how much the market fell on one headline, but it's a serious concern f. you start talking about china, either selling our treasury ors buying fewer. >> yeah, except that china is very smart and probably when you own $1.6 trillion worth of a security, you don't want to talk it down too much because that's your fx sprefrs. so i think that it's probably better to just look at that and say, okay, we could play a game with tweeting things about tariffs and so can can they. and leave it at that i don't think we want to extrapolate out this universe where china starts dumping treasuries in large numbers. but that's number one. the only other thing i would point out, i think ths worth pointing out, the market is in the process of figuring out what this all might mean. the market has not concluded
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anything which is why this morning, it falls. we have not decided whether or not this is going damage the economy, the stock market, what you're witnessing with volatility intraday volatility, that's just a proseccess we go through it all the time. >> the problem is that it risks damaging the stock market and the economy, which was looking pretty good. and you have you know, the benefits of taxes on one side. now you're starting to have to game what this could all mean. >> no doubt. i agree with what josh said, which is this is a new shot to the market that it's dealing with and it's going to deal with it in the way it always does they're going to sell initial reaction let's get my risk down in the areas that might be most effecti effective. and we're going to sort through this the it's way too early to call this a trade war this is a dispute. it does look like the administration is is using some of these tactics for negotiation
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purposes >> why is it too early what takes it from here to a trade war? we just slapped 50 to $60 billion of tariffs on china. they retaliate and throw out the possibility of not buying treasuries not a trade war? >> this is a trade dispute >> what makes it a war >> when it starts going down the wrong path it's $50 billion worth of goods. which is $12 357b9 billion of tariffs. okay, the retaliation so far has been pretty modest that's why it's not a war, it's a dispute and we don't know what the real intention is here the intention is they want to negotiate a better deal overall and this is the sort of first. >> you don't like this you agree with me. you don't like this if you're tim cook >> no. >> if you're -- let's wait up a k second here. all four of us have clients. we take care of our clients.
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you know who is china's biggest client we are it's not in their interest your intention is the wod. a war is an intention to decimate there's a big dispute here a day of reckoning in which the terms of trade need to change. >> can a dispute be isruptive? if a war is des informati-- >> there's an end game in which settlement occurs. it is not nuclear war. >> if you don't make your bets and wait for the end game to be involved, you've missed out one way or the other. so you can want say the market has declared it. it's a rare time >> this is a rare time we're adpreeing, okay? this is the time to invest >> call it a trade skirmish? >> this is the time to invest. we're in the quiet period before
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earnings start you had a few pihints. general mills that may be inflation on the edges the earnings picture still seems intact >> you also add another china dialogue bolt p thinks if you strike north korea first then negotiate. >> steve, it scares the hell out of me. >> they won't like that. you keep adding more and more to the dialogue everything trump has done, he's the regulator in chief now with tariffs. >> let's go to china, in fact, get more on this developing story these comments from the ambassador to the united states. what did he say? >> well, you know, the chinese premier was asked the exact same question this week of the
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closing ceremony at the national people's congress where by he was asked whether r or not the chinese would use a retaliatory measure, a scale back of purchases of u.s. treasuries now what was interesting was that the chinese premier had suggested that it really wasn't an option and in his words, he said that china was a long-term responsible investor and he also said that the allocation editions are made on market conditions granted his comments were made before president trump's announcement yesterday however, it was asked in the context of a trade war at the same time, there's a sheer reality. a financial reality as to what the chinese can do because they have trillions in reserves a lot of this is in dollars and the dollars have to be invested somewhere and some place liquid. so they don't have a lot of
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options and they know that p if they were to dump a lot of u.s. treasuries or scale back, that would create a lot of disruption for their own financial wealth here, over the past several week, i've been talking to different chinese officials and some have joked with me that they enjoy the fact that the reports were hitting the markets and creating some confusion about the u.s. treasury scaleback because they felt it's a good reminder to the u.s. that china has power, but at the sam time again, this is a joke because they were also telling me there is this final reality that they face that they are running surpluses. they know they have a lot of their money and wealth tied up in dollars, so they're trapped they can't make decisions that would undertheir wealth. >> they know the power of their comments if even not followed by action, comments of certainly say a lot and impact the markets. thank you so much. let's go to chicago. rick santelli is always following the bond market.
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how do you view this >> you know, when it comes to the purchase of treasure b ietr let's do a little background if you look at foreigners in 2015, they were net sellers. then of 326 billion. in '17, it rebounded to up 14 billion. our last data point for china specifically was the treasury, the 15th of march. china did buy 4.1 billion. they sold three and in november, 10.5 what's the short version the process is dwindling china, japan, all of this them specifically regarding that headline, i guess i would say long-term, they say the responsible investors, but maybe the real issue is they're not responsible trading partners
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and i think this is a negotiation on both sides and personally, i would think if there was any bite to this, i would certainly think this issue would warrant more than the 50, 70-point drop in the dow and unchanged treasury yields. >> we just need to see how it shakes out a negotiation can get tenuous it can get ugly. >> sure. everybody time i have an argument with my wife though, judge, i don't call up two lawyers. >> i've seen you and liesman on the air together so i don't know. i've seen you have real debates with some of your trading partnering thank you. >> good form >> how do you game this? >> just to address that, them talking down their book, we're not talking about corporates here not talk iing about high yield we're talking about u.s. treasuries and bonds if you hold them to mature the they're worth what it says on
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the coupon number two, to talk them doup near term is fine because they would love to buy them at a higher rate. so works to their benefit. >> is the market overdoing th 700 points yesterday on the dow. >> i think it was overdoing it one day. markets go up 80% of the time down 20% of the time so look, i put this in the classification of geo political risk right now k which is destabilizing to the market. in the long hairs, so very long in the tooth of a bull market and economic cycle. that's the concern so repositioning >> why is china in u.s. treasuries to begin with they have higher yielding than ecb. they're higher yielding than japanese bonds they can't buy anything else >> they're not going to dump their treasuries it kills them. we are their client. they want to take care of us >> the bigger issue though, that's not to me, the bigger issue to me is is that why do we
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want to resurrect industries that at their best were barely profitable and were incredibly cyclical to the point where regardless of what pricing was, you would have these waves of mass layoffs and factory closes. why would we want to prioritize that then hurt a company like boeing massive margins, massive job growth what posb possible use zblsh why would you bring lodge i guess into this? >> so now, wait. >> you wouldn't accept if it's political. hold on. you had a special election in pennsylvania, pittsburgh specifically a couple of weeks ago. week and a half ago. just prior to that he brings in steel workers in full regalia into the oval office to watch him sign a fake piece of paper >> can i take the other side of this then the taf riffs come out
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yesterday. >> if you're trump, do you think the november elections are going to go your way you stack the deck right now you put bolton in, kudlow, everybody you can to get as much done >> no, no. you can see he's clearly stacking his cabinet with people who are going to get things done now because he's running out of too many >> to you take a look at what happened yesterday and say this isry lick dick louse this is just a different president negotiating in a different way and everybody is slow to get on the curve to figure out what the end game is with a guy who's just uncon jenki vengsal. >> the chinese and japanese have been selling treasuries all year that was one of the reasons why yields spiked nup the first quarter because investors starteded to realize that. that's point one not sure what they're saying is a big change in the market's perceptions about china's
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appetite to buy our bonds. the reaction yesterday was on the back end that began two weeks ago. two weeks ago. we were, people were slath eerrg about the jobs data. the market was looking for a reason to trade off. we had two reasons the fed raised their plot at the margin talked more hawkish pl isishawk. and the trade issue, which isn't new, took another step forward another reason to lighten up we're at the low end of the range. 2600 the market is now finding value. it's 16, 16.5 times earnings that's just too cheap. when yields are at 285 >> i think the market is still trying to figure out where powell and company are going they rate rs going to remain lower. a path to tightening he sounded dubbish for the near term, maybe more hawkish for the long-term. poli policies is getting tighter. global growth, i don't know how strong it truly is if you look at the european pmis this week
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there's a lot to figure out. >> you know, but the problem with saying he's the dove now and hawk later is the same reason i don't call up card readers to tell me what my future is because most likely, they're not going to be correct. i think the pillar of his first press conference addresses that exact issue. the only thing the fed knows is what it does it has no real idea what it's going to do. if tomorrow the dow was down 5,000 points, i guarantee you, we wouldn't see three tightenings. so the accent wait the fact reporters seem to be interested most in the future because they don't need to do the homework to understand the present is no reason to think that heawkish o dovish he's a realist and he's going to tighten and wants to tighten, but he's going to monitor conditions as far as the growth spurt throughout the world, listen we've gone through a lot of painless activity since the credit crisis.
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even to taper to balance sheets. people think oh my god, this is no big deal. it really hasn't started if you look at the cumulative presence of central banks when we go down the road of trying to go back to the future trks going to hurt a bit and as far as trump's trade ideas, if he didn't get everybody's hair on fire, he would have no chance of suck u success. >> yeah. rick, thanks for joining us. i wanteded to get your perspective on this because it's gdeveloping as we speak >> i agree with that if -- if he's really serious about reorganizing the way we trade with a country like china, there has to be bluster and theatre involved i think that last statement is correct and i think that's what you're going see play out in the market as we become slow sli aneurotoday that type of commentary we did it when they were tweeting about health care last year and drug pricing. we knew it would go nowhere. we got used to it.
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three tweets, five tweets, seven tweets >> you know what i want to do, switch gears for a second and take the conversation to facebook those shares actually opened higher today let's pull up a look at what facebook shares were doing this comes after sheryl sandburg spoke to cnbc yesterday afternoon which helped cause the open here, but the stock is lower. elon musk. founder of tesla apparently is tweeting that he is removing space x, the page and tesla page on facebook and that he may do the same for himself. so i think the market is is trying to get its arms around an influential person like elon musk it's interesting in and of itself that you're talking about a tech billionaire tech genius who was saying apparently, that he is going to remove himself and some of his better known companies, obviously, from facebook >> who cares
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i mean, why is he -- not who cares you're say iing it, who cares -- >> founder of -- doesn't matter after the founder, cofounder of what's app sends out hash tag delete facebook, i think we're trying to figure out when the worst is going to be over. what the real long-term impact is going to be on users, when some of the bad press is going to go away it doesn't help for elon musk to sit there and delete facebook. >> absolutely right. here's how i look at it. that what they do is they create solutions to problems or solutions to problems we don't even know exist. they will come before they're in congress with a solution whether it's them, google, whether it's amazon. you name it. but they will have a solution. they're not going to wait for congress to come out and legislate a solution >> mike, does it worry you that tech has lost its leadership place? >> well, it hasn't totally lost
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it we've had a couple of days of relative underperformance. what's happen ng tech is the same thing that's happening in the broader market it's narrowing just fewer stocks participate ng the rally now. the same thing is happening in tech because it is the market. tech is 25% of the s&p 500 google has underperformed, too >> the chips have done poorly. tech clearly doesn't look as strong as it did >> neither does the market okay so let's be honest >> i think we're making the same point. >> can the market look strong without tech >> no. so the market is deteriorating under the surface. it has been all year and this is the call we've had all year, which is that price earnings multiples were coming down for a host of reasons volatility is higher fed is tight ping conditions credit spreads are starting to widen. this is not, this is not, should be a surprise to people.
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>> i find much more disturbing what's happening to the banks. i take a look at citi under 70 i take a look at b of a under 30 >> look at interest rates. >> i know. but we're looking at ten-year, about 284. to me, that's the greatest short out there still. the flight to safety i believe is what's propped it up now you have to see it reversed. the fed's tightening libor spiking up, increasing corporate buying costs >> still in the same correction that began january 26th. the s&p got within spinning distance nasdaq look ed better in that recovery but global markets, the same as u.s. markets, probably even more pronounced when you look at asian stocks we have not gotten out of this correction and it is basically seven weeks now. so the mind set that we haven't made highs after doing nothing but making new highs every
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month. 13 months in a row it's starting to weigh on people you're seeing that in risk appetites and i think it's worth keeping in mind. >> this could go on nor a long time >> you've just described where we've been and i afwri, it's a correction mike, to your point, you've cussed what's goin on in parkts right now. i strongly believe it's a correction not the start of another 10% down to a bear market. but what's going to moou it higher, the only thing that could possibly move it higher here is the earnings season, which is going to start. and the real impact to profit, which is what grows stock prices on all of the things that we're talking about, whether it's tariffs, whether it's technology, regulation user engagement of facebook. >> let's turn it from tariffs to tennis shoes look at nike it was up sharply earlier. maybe it's pulled a little bit back take a look at shares. it has pulled off the best level of the day it's still up 2.5%
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improving north america. it seems finally. do you buy the stock here? >> consolidating after falling off. >> does it >> yeah, it does >> said a high of $70 or so. 52-week high, it's not far off of that. i sold it around 67 about a month ago. it's hung out right at the level right now. clearly, the fundamentals, we saw it not only in nike, but in adidas are starting to improve the question out there is for deep value players, does this translate through into earnings at under armour. just wait. just wait for that to turn around >> the news that per shing square got out >> ackman made a quick 100 billion on that. nice trade immediate needed it, too i told this to cramer earlier when i was on earlier with him there were multiple notes this morning, everyone using the same word and that's inflecting.
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when talking about north america. why they seem to be growing more r positive on the story. until the, we know international is killing it. and it killed it again china was strong but until north america truly turns the corner, i wonder whether you can really consider buying this stock. pete, you have a thought on that joining us now in minneapolis? >> yeah, you know, the opportunity really started in nike when it was back in november and everybody overreacted on an earnings call because of the fact north america slipped. is north america starting to at least get steady getting more competitive against adidas here in north america i would say as long as they can just stay even here in north america, the true growth that we've been looking for and we've been getting has been internationally. it's not just china. it's all toefr rest of the world, but china obviously is the main figure that everybody looks at, so you look at the numbers. they were up 16%, this quarter even r more. the strength of nike is the international growth, plus the direct to consumer
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add in the fact their margins aren't great that said, i'd agree with jimmy. i got out at the same level about month ago with jimmy around 67. i don't like the valuation level. you'll see a time, this is very much like a home depot numbers are great. everything is there. and sooner or later, somebody is going to start to panic because they say suddenly, hey, look, you look at the pe, it's trading around 24, 25. maybe a 28 that makes me nervous. i'm going the take some off. >> give me a different name then you said you like other names. >> one that's easy, that's an unusual activity today i've got a name that i think plays right into nike. that's going to be a great opportunity for folks if they want, if they want to be b a nike and they believe in that story, there's a cheaper way to play it right now. >> wow what do you think, you're a television veteran or something? >> well, you know, i'm with you, brother. >> we like to tease.
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wel get to the unusual activity, i promise everybody. so stand by for that >> that sums it up valuation, when jim was nodding. that's the issue to me with the market is that what he's talking about in terms of earnings this earnings season, tbar is st so high. you brought a pmi in europe. soft, still going in the right direction, but soft. so i think the dialogue is changing right now as part of the trade issue is the economy really that strong >> i think it's and partially mike wilson, reflecting in rates. and i think rates are, i think rates are skeptical of where the company truly is >> sub 2% gdp. why do we need four rate hike sns. >> the first is seasonally weak. >> and so, more likely, we're going to do something in the mid twos this year if it really gets cooking. still below kind of this 3% magic number that everybody thinks we could get back to if all these things kick in so yes, i believe that bond
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market is you know, completely discounting the fact it's going to be hard to get much above 3% on a sustainable basis 285 is not a bad price for the ten-year treasury. given where buns and jgbs are. >> and thinking european yields based on what steve was just talking about may be inclined to rise as fast as maybe we thought. draghi certainly won't be all that aggressive. let's step away real quick everybody stays. we'll come back, follow the market dow is down just five points here's what else is coming upton halftime report. >> next up the big call on the big name chap maker on a run. you won't believe how far and how fast the analysts think the stock is going to move plus, the stocks mike wilson has identified as a place for new money. get in n borit towefe 'soo late. the halftime report is back in the halftime report is back in two minutes. evening long.
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drobbox soaring. up nearly 43%. anybody buying this? josh >> not buying it, but i'm very, very happy to see it open up with a positive debut. this is not like something that got fund ed last week cone company's been around for fen years, has been hiring started off with consumer and has been growing and now trying get into sbrenterprise we want two of these a week in this country i'm notinvestor. i own box, which came public in '15 down here on the nyse, but i'm interest nd learning more about it >> there's been no ipo market. this is great to see that.
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we need more supply in the market. >> there's a lot of ore compathr companies, they haven't announced, but we've talk ed about uber, palentere is another name this opens the door for more technology ipos. 2.85% on the tenure. not a bad rate investors have to have a dashboard. oil prices ten-year treasury rates. there's a lot of positives is all i'm saying let's talk about micron. we've made it our call of the day. the worst day for the stock of the year production concerns, dragging shares one firm still sees a lot of upside ahead
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that's why we've made it the call of the day. they've raised the price by $100 steve weiss sh, i go to you on this one >> i own micron for a long time. not selling it yet, but i did sell my western digital, which was a trade, i bought citi, unlucky. the only thing you have to know is capacity being at its stocks. the capacities say they're add ing is for the next generation but it's a skeptical market. i think it's okay. part of the correction now is, i don't think the stock could be down, but r for tech is down other wise it would be up. >> we're talking about not only the dropbox ipo, but if micron wasn't down today, that you may have had a turn of tech. that you needed this stock to help turn the whole sector >> i don't agree with that
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>> the report was great. this is just profit taking >> yeah. >> so one of the thinlgs mike pointed out in a prior segment is that netflix and amazon have held up really well and google and facebook have underperformed one of the reasons are cheaper ones it goes beyond that. it's because google and facebook are ad supported where as amazon is selling products and services and netflix is entertainment so until i think the cloud is lifted from whatever's going to happen with regulating social networks, which could go on for a while, i don't know that we should expect a furiously rallying triple q setting new
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records every day. it would be premature to think we're going back into that mode. >> pete, you have anything on micron >> they beat what they would raised expeck tases in february. so if in your opinion, yeah, they're really, really impressive the others are the fact that after you get the kind of run micron has had, people are looking for anni excuse to take profits. i think the upside presently in intel is high er than micron, part of that is based upon the fact that look at this run in micron maybe it's going to consolidate. josh is much better with these charts than i am is it going to have to
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consolidate for a while before the next leg higher? in the meantime, i'd rather be an intel waiting to see what the rest of the tech space is quoing to look like >> we're just hear frg the white house that the president will hold a news conference at the top of the hour. at 1:00 p.m. eastern time. doesn't hold many of these but there is so much on the plate today to talk about. not only what's happening with these tariffs in china, you've got to omnibus spending bill he is threatening to veto we'll find out what the president has to say about all of that. whether he was asked directly b about what the stock market did yesterday when w the dow falling more than 700 points in response to the rollout of those china tariffs. there's a lot going on he has new people coming into his inner circle that he's sure t to be asked about. >> don't forget, this weekend is going to probably be 2 million or more people on the streets in the antigun march and that's not going to be b ignored. then sunday night, skotormy
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daniels on 60 minutes and haur lawyer is tweeting picture of a cl rom people are thinking sunday morning, sunday night, monday morning tweet storm, in addition to all the tariff stuff happening. as an investor, market participant, is today, you're going to have a will the to chew on between the beginning of this news conference in about 25 minutes towards the close then likely be on that. let's turn back to you disney, microsoft, cisco >> we're trying to find really good ideas that we like from a
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bottoms up perspective that could work in the near tomorrow. it is going to be a much more difficult market it's a stock selection market. >> you guys agree with that? >> what's the case for e*trade doing better than it's peer group? it's done well recently. >> e*trade has more potential earnings upside. our analysts work. he thinks that numbers are still too low. so he's well above the street on
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the estimates. just thinks the numbers are low. there's potentially a buyer at some point >> i own microsoft >> let me ask you about cisco. it's been favored fwi old tech players. all that's old is new again. >> there's the new era stocks. the component stocks then there's the cap exben fish nairs, which microsoft and cisco are two. that's the area we favor the most these are two of the highest quality names in that record that's why they're on the list >> it's great having you u here. thanks for your patience it's beenreally great to have your insights. mike wilson, we'll see you soon.
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let's get the headlines now from sue herera hi, sue. >> there's a lot going on today, everybody. here's what's happening. an armed man was fatally shot by police after taking hostages in a supermarket in southern france today. the assailant killed three isis has claimed responsibility, but offered no details and that has not been verified yet. zblncht french president macron called it a terror attack and offered his quote quul suppofull support to those involved. speaking in brussels, he said he will return to paris in the coming hours and will monitor the situation closely. here at home, at least 500,000 people are now expected to attend this weekend's march for our lives in washington, d.c. and across the globe parkland high school students will lead a rally, calling for increased gun control after last month's deadly shooting. those students have received donations from all over the place including the like of gucci and also a number of
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corporate members like aetna and some sad news in the business world wayne huizenga has died at the age of 80. he founded waste management, blockbuster video and auto nation, he was also an owner of the doll finus, marlins and panthers and he will be missed that's mewes update this hour scott, back to you >> business icon >> absolutely. >> in the state of florida few bigger than he frequent guest on this network throughout the years ad> straight ahead, we are tri trading wynn, square, kb, target halftime's back after this it was my very first car accident.
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hi, everybody. coming up on "power lunch" at the top of the hour, we'll beginning with a presidential news conference where he's
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expected to talk about the omnibus spending bill. trade turmoil. china firinging a warning shot in response to tariffs will other countries follow china's lead plus, the tech wreck the sector getting hit hard over the past week. is it the opportunity now that so many investors have been waiting for and the technical take one sector the charts say will anmelfsupreme in this market meti, hatime report returns right after this elity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.
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we're at post nine it appears as though things are fluid in washington at this moment remember, we were tell youg at the top of the hour as the president himself tweeted there would be a news conference at 1:00 p.m. on the omnibus spending javers says, i'm quoti, in place of the press briefing, the president will now have a press availability at 1:00 p.m
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no word on where that will be r or who will be allowed today attend continue standing by that's what we're doing. figure out what exactly is happening at 1:00 p.m., where and who will will be let's do the blitz first up, resortwynn resorts pete, remember e we were talking about? >> yep take a look at the stock reaction has been. it was over 180 earlier. it's still trading above where steve sold out at. 5.3 million shares 175. he's out the overhang is gone one u of the biggest ballers of all time did exactly what you'd expect did it all in one chunk and to a company from mccow >> share of square falling as greg downgraded the stock to a sell josh, what's yours >> this has always been the case these stocks that competition would eventually be an issue the thing is, it's a massive
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market i just don't see that as a good reason to sell one of the better operators with one of the better competitive positions. stock has held its 100-day for two years now. i would use that as my risk management and not be a seller just because an analyst puts out a note >> jimmy, is this trade related? >> yes but take more than a one-word answer >> stock move, jim >> it's down about 16% from its high in early january. that's worse than the market, but two things are going on. so guys like me, who six months ago said it's too expensive are now looking at a inin ining at times multiple saying you know what, it's cheap you believe we're not headed to a bear market. this is a buy position on cat. >> kb home is up big today steve weiss.
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the number >> it wasn't a perfect one the earnings were great. but what was very strong about it was the commentary that the managers remaining steady. supply is tight. >> sources telli ining cnbc todn truth of a target an kroger merger. pete, you own target. >> i do. and in all honesty, had they made that decision i would have sold target. why would they want to jump into a low margin business. brian cornell has laid it out they have five different segments and grocery is the lowest margin so why would they make this move if this were true i would have exited but it is not. >> we'll get bullish option moves and retail is down 1% and the trade on it in two minutes
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let's go back to pete najarian in minneapolis watching the options. you let us with a tease so what is it now. >> i was asked to be quick footlocker is the less expensive play and footlocker is inexpensive and the may44 calls and tradin 43.60 and 2500 bought for $2.25. that tells mes that a great spot to be. i'll be in there by the end of the day for sure i'm not in there just yet. second one for you, as well, the interesting thing is we've been
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talking about se talking about semiconductor and how about cypress semi 14,000 of the may 19 calls trading for 50 cents and that was bought that is a big chunk all in one print. that is just above where the 52-week highs are. is cypress ready to break out, i like what i'm seeing in the semis. >> have a good weekend >> te akcare. >> we'll do final trades on the other side of this break ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow.
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we're back doing some shopping for a new tractor. that is the world's fastest. it was built for a british car show called "top gear" and v-8 engine thanks to chevy -- what do you have? >> i have a kuboda nice tractor but on that one, i don't know if
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that pulls a stump out of the ground that is what i'm looking for. >> give me your final trade. >> xle, long >> b of a city rare sale. >> intel holding up nicely. >> okay. that does it for us. hope all of you have a good weekend. back to "power lunch" which begins right now >> and welcome to "power lunch." i'm michelle caruso-cabrera along with tyler mathisen and melissa lee. president trump expected to appear any moment in the white house briefing room to talk about the spending bill that would prevent a government shutdo shutdown, the president saying he might veto the bill because of daca and wall funding. >> the dow again in correction territory. and let's bring in eamon javers from the white house >> reporter: there is an enormous amount of uncertainty about what will happen in a couple

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