tv Fast Money Halftime Report CNBC September 14, 2018 12:00pm-1:00pm EDT
i find it extremely hard to believe that bob mueller -- i learned to be a federal prosecutor, which i was for 30 years from bob mueller in large part i think it extraordinarily unlikely that, for example, he would limit mr. manafort's cooperation to that aspect of the investigation. that, i don't think, makes any sense from a prosecutorial point of view. i think this is a full-blown overarching agreement that will require paul manafort to say everything he knows about trump and the campaign's conduct >> glenn, doug, thank you so much for the guidance on a remarkable story today, although it hasn't moved the markets much >> dow has been up 52 points the entire time. dollar not moving either >> let's get over to scott wapner and "the half."
we're going to keep our eye on what's taking place in d.c. we expect to hear from paul manafort's attorneys we'll take you back there when we see them come out to the podium as well certainly we're keeping track of hurricane florence coming ashore in north carolina. you can see the surf there being kicked up. there's a lot of rain, wind, and expected flooding on the way there. we'll keep you up to date on those big stories. good afternoon i'm scott wapner he is considered one of the world's greatest investors, david tepper has never been afraid to make a big bet on stocks what to make now of the market maestro's message that the bull run is in the late innings and that even he has reduced some risk tepper's takeaway -- a day after our exclusive interview, the traders get their turn to react and debate >> you know what happens with baseball sometimes >> it goes extra >> extra innings >> and all new today, tepper on
the ten-year anniversary of the financial crisis >> that was when i thought the world was going to end plus, a big call on costco "the halftime report" starts now. good to have you with us on this friday. we're joined by steve weiss, jon and pete najarian, welcome, everybody. let's begin with the tepper takeaway, those comments in our exclusive interview about how long the bull run for stocks might last >> if you ask me what inning we're in, i think a late inning game i'll say it in a different way than the six or seventh inning, i can say it's the eighth inning you know what happens with baseball sometimes >> it goes extra >> extra innings >> that was david tepper with us exclusively yesterday. steve, you were with us out
there, sat in on that interview. what's your takeaway now you've had time to digest what he was saying? >> in fairness i've been privy to his thinking. only second to how much money i'll lose in a golf game to him, but here is my thinking. i think it's pretty consistent with how a number of others are thinking about it. i'm not talking about a ray dalio who has been bearish on the market for a long time but others think that it's a good time to take some risk off while still being positioned to benefit from the upside. at this point i believe those are in it 100%, have that fear of missing out, and that's really why they're there so dave's very focused on the bets he's making he has been knocked out or has taken some exposure down in the battleground stocks of facebook. >> forgive me for interrupting you, i do want to call your attention, everybody to what's happening with the dow jones
industrial average at this very moment you can see stocks have really taken a turn down. granted they're only down 20 points, but it certainly has been a precipitous fall on some headlines that you're looking at the bottom of your screen the president apparently wants $200 billion worth of tariffs on china goods despite the talks. there was some news the other day that the white house, perhaps, was seeking new talks with china we'll have to see how all of that develops. you can see how sensitive that issue remains in the market. with david tepper talked about it yesterday we'll hear from him. give me your thoughts on the late innings and what we're seeing develop here as it relates to trade. >> so typically in the late inning, which is what we define as six to nine months prior to the on set of a recession, typically you see stocks perform really well into those last sort of six to nine months and you see a blow off the top stock, the s&p is usually up about 20%,
25% in the years before a recession. i think we're probably six or seventh inning either way i think when you look across the globe in terms of where people can actually get opportunity to make a real return, u.s. equities, i still think, look attractive i think that when i look at the warning signals for an onset after recession it's probably 2020, late 2020, not 2019. so i'm a little bit more optimistic i do think waiting for a better opportunity, waiting to see after the midterm and after these tariffs are imposed what the situation looks like i think makes a lot more sense david didn't say he's taking all of his money out of equities he didn't say he's shorting equities he's taking a little bit of risk off here, keeping some money on the sidelines. i think that's a smart way to play it. >> one of the reasons, frankly, the very news we're watching as
we come on the air and as the dow jones industrial average takes this turn, that the president reportedly still wants $200 billion in tariffs related to china let's listen now to what mr. tepper told us yesterday about why this is so tricky. >> if we do the tariffs on china that will make it tough on the market here just going forward i don't know if that's an inning question or not an inning question it does get to valuations and where we should be i'm not saying we shouldn't or should i'm making factually that's the case and the other thing if we don't have it probably the question is how fast will the economy go because china is stimulating and stimulating because the tariffs are coming and so that might have a fact of pushing us over into higher interest rates so it's kind of getting tricky at this point in time. >> well, there you have it >> can i say one more thing? >> yeah. >> who thinks it's a coincidence trump saying that on the day the
manafort plea came out and that's what makes it so hard to manage this and why there is concern. tough to navigate this market. you get good news about china and then this misdirect play by talking about the politics >> so, on that note, eamonn javers at the white house has more on these developing stories, not only the headlines moving related to trade but the fallout related to the manafort deal >> reporter: that's right. the headline you've been talking about is the headline that crossed the wires a few moment ago from bloomberg saying trump told advisers to proceed with $200 billion in tariffs. so the headline here is trump is said to want $200 billion in tariffs despite the talks. to reprise where we are here going into this week a lot of observers expect the trump administration was set to impose that $200 billion in additional
tariffs that have been in the process and that would come. the president tweeted about that over the weekend then to the middle of the week, i start getting an indication from the people here at the white house that perhaps the hurricane, other factors might de delay, independently verified just yet that says the president wants the tariffs despite the talks that leaves us with the impression what's going on behind the scenes. some want the tariffs. others do not. the president seems to be conducting a live discussion with those different factions about which way to proceed here. no indication those are coming immediately. of course the president can decide anything he wants at
anytime he wants to decide it. so that's one story that's breaking here at the white house. at the same time, and i'm just going to call this up on my phone here as we're talking because we're doing this in real time, scott. we're getting this news about paul manafort. they put out two statements in response to the news within minutes of each other. the first statement said this. said the president did nothing wrong and paul manafort will tell the truth then minutes later the legal team responded with an additional statement which changed that line of the statement, the president did nothing wrong, period, omitting the point about paul manafort telling the truth. the legal team is adjusting its public comment on real time within just a few minutes of itself updating and correcting its previous statement
not confident paul manafort will tell the truth and the legal team doesn't want to be in a position of saying anything on behalf of paul manafort who they don't work for a lot of moving parts here in washington right now $200 billion in chinese tariffs on the line. the president and his aides trying to figure out what paul manafort will be cooperating on and what it means for this president and his presidency >> it's hard to know the answer because we haven't seen the 17-page agreement yet. it's interesting the market didn't move hardly at all on the manafort news. perhaps because we haven't seen the agreement itself now we see it move off the trade news you can understand the sensitivity of investors lies. one more question related to the manafort news, and perhaps you can address it let's not forget that mr. manafort, and even though we don't know exactly what he has agreed to tell prosecutors, he was inside that trump tower
meeting the president has maintained throughout that he knew nothing about so it raises the question of what manafort knows about that, if anything, and he's willing to tell the mueller investigators, if anything, on that front as well. >> it definitely does. >> reporter: let's review the bidding where we are in terms of paul manafort. what we know is paul manafort is now agreeing to plead guilty to a number of charges, two charges, relating to his conduct before he was part of the presidential campaign. the speculation had been what mueller wanted to do was flip paul manafort, put pressure on him, and offer a lighter sentence in exchange for cooperation. it appears to be a cooperation agreement. so it's cooperation on what exactly? and that's the question now. the president's defenders hope what's going on is what paul manafort is cooperating on is other misdeeds and alleged crimes relating to lobbying, offshore finance, other things that happened before the campaign
as you point out, he was the chairman of the president's campaign in 2016 during a key period of time, so it's possible that he knows things that go to the heart of what mueller's investigation was set up to look into and that is the possibility of collusion with the russians we don't know the answers to those questions yet. when we get the 1 pages we might get more indication. we may not know even by the end of the day today, scott. >> eamonn, we'll come back as needed let's get back to the matter at hand and that's watching the market reaction to trade as david tepper said, it's the trickiest thing for investors to try and what it will mean to the market >> as soon as you start talking at noon eastern time each day, the president will have some sort of news reading algo alert -- it's not that the president times that but,
nonetheless, it has happened three times in the last five days that we've been on the show that right at 12:01 or 12:09, this news comes out. this time it drove the market exactly as much as the last two times, 100 points. we were up 52 points we fell down 52. now we're fluttering at 30 points or so i'm just pointing out that that algo and those algos take that premium out very quickly and then nobody's there to do anything else. they're not there to buy it or sell it. it just goes back to an equilibrium. >> is it best to do as tepper apparently has done and derisk even a little bit? >> i think there will be a lot of people following david's lead based on how calmly he stated that and so forth, and not about getting short but about, hey, let me take some of this off here and wait. if you see some of the good news, a deal being struck, i think you'll see more than that
100-point that's been consistent, a 100-point move each time the president has done this if we get some good news i think it's more like 200 to 400 points >> some moves suggest if you get a deal with china you could have a 10% -- >> over time. >> even tepper thought that was too hardy. not that stocks weren't going to go up but maybe not in that magnitude. >> i think if there's anything right now after we got through all of these big earnings everybody wanted to see what are the numbers going to look like, the only catalyst right now that everybody is staring at every single day, not the only, but the main one, are the tariffs. and the commentary from the president that he's willing to pursue this, investigate the talks. i want to pursue the $200 billion. that had the impact. i think david tepper says it right. that's the tricky part of the market i think, also, take a little bit of the risk off. does that mean you have to sell out of a lot of the positions? he talked about trimming some of them up, scott
on top of trimming them, the idea look at the volatility index. given the fact of all this news we're seeing hitting the headlines right in front of us real time had a small spike to the upside right back. here it is in the 12s. now this is an index recently popped up to 15, could not hold that level at all and then pulled right back. and here we are once again we were under 12 before the news came out so i think the better way to approach things now is, yes, you might want to trim some of your portfolio back like david did, and i've done some of it myself. we talked about this is the story in front of us so why not take some back but it gives the opportunity to buy as well and protect. and you're protecting at very low levels >> it really encourages investors to stick close to home, meaning don't invest or buy companies that are big exporters or that are really dependent on emerging market growth sticking close to home is a strategy that's worked this year you see it with the
discretionary stocks, with some of the staples and the health care names as well but i think that's -- these type of headlines, this type of volatility, will encourage people to be investing more on u.s. companies that are benefiting from the u.s. economy. i think that's a smart strategy. >> you see industrials having a strong move as well whether it's boeing or caterpillar. >> some of those are benefiting from -- if you look at business confidence, if you look at cap-ex investing, that's picking up some of those stocks take advantage of that. >> the dollars come off, too, which is another wild card and we talked about that with tepper yesterday. >> and i agree with you. it's interesting the russell hasn't been the strong performer that we all thought i still think it will be what's interesting today is alibaba moved up a few points, and we talked about that with dave yesterday briefly it's not giving up much on the heels of this announcement
you'd expect to give up the last few days it's marginally down in line with the market. >> but i don't think $200 billion in tariffs is a surprise >> no. >> people largely expect that had would happen the question mark is, is the tariff 10% is it 25%? is it immediate? will it start to incrementally be added on? >> there was the additional talk of more tariffs. >> to another 267. >> you really don't know what the end game is going to be. the market has tried to place its bets on some kind of a deal. >> it's sort of getting immune to it, frankly when kudlow spoke about, okay, we're going back to negotiations, the market, sure, traded up a little bit but it didn't explode as you would expect a few months ago you would expect to really move up it didn't have that kind of move there's not a lot to give up >> let's go back to d.c. to more on the manafort case in the
breaking news we've been following in the deal with prosecutors. >> reporter: scott, the hearing has now wrapped up and paul manafort has officially pled guilty the judge in this case said that he could face a prison time of up to about five years on each count in this plea deal, but that the maximum sentence could be as high as more than 20 years of prison time he could be facing fines of about $400,000 as part of the deal he's agreed to give up some properties in new york but, again, paul manafort now officially pleading guilty that hearing is wrapping up. we'll see the attorneys come to the stakeout >> we'll jump back down to you and will hear from the attorneys once they do come out. we'll take that live so don't go anywhere coming up, here is what else is coming up on "the halftime report." one analyst's big call on a key name in retail, costco
this stock is up 45% in a year time to sell out or buy more plus, more from david tepper as he explains how he was feeling ten years ago in the midst of the financial crisis. >> that was when i thought the rlwagog ewod s intond who would have thought, who would have guessed? an energy company helping cars emit less. making cars lighter, it's a good place to start, advanced oils for those hard-working parts. fuels that go further so drivers pump less. improving efficiency is what we do best. energy lives here. improving efficiency is what we do best. where in all of this is the stuff that matters?
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all you have to do is submit your questions to cnbc.com/halftime. we're here for you get us on twitter with the #askhalftime all right. welcome back costco shares have rallied 45% in the past year wells fargo stepping to the sideline the analyst down grading it. maybe this is as good as it gets it's our call of the day steve, what do we do with it >> there are conflicting currents here. number one, i thought the stock was overvalued for a while so in terms of that, i agree with what he does. the consumer is extremely strong my issue is their online strategy >> i was wondering if the danger is downgrading anything out of the discretionary space if you consider costco half
discretionary, half staple, however you want to look at it it is a place to go and get out your big wallet. >> it's priced to perfection right now. it's had this great run, up 50% or close to 50%. it just hit a high of 245 on tuesday. i think the interesting part is what you just brought up which is online. we always bring that up when we talk about how does home depot compete? they have growth online of 20%, 30%. you look at all the rest of those -- best buy, target, walmart -- they are competing. if you look at walmart and target they have 40% e-commerce growth that's unbelievable. that's strength. what we're seeing now out of costco is that growth actually pull back. it's now 20% it was much better when you go back to april. it was stronger. that's been shrinking and is the concern right now. we're making some other moves as well today and, i have to tell you, you buy amd after you got all over josh
brown about recommending it some, i don't know, 50% ago, now you're buying it today do you want to apologize >> i didn't buy today. >> just look at the camera >> i'm not going to apologize for being devil's advocate for our viewers. nor will i apologize for being an open-minded individual. i bought it a week or so ago but, yes, josh came out -- what i was taking issue with was really josh's technical take >> i know but it was wrong. >> it has continued to move unlike twitter and -- he had a great -- >> i digress why now? >> he had a great call here is why. the fundamentals have changed. with the new ceo coming in, in fairness to josh, he did point that out that's fine. it's there i spoke to rob cintron he, he loves it and has owned it since $10.
he thinks the next stop is $40 so josh had a fantastic call on it i got to it. i'm making money now and i'll see where it goes. >> you're convinced this, as josh is and others, that this momentum that you've seen in this name, call it technical, fund amount mashup of both keeps going. >> i'm focused on the fundamentals and not the technicals and they look strong. >> my point is you could make a compelling case, apparently, no matter what side of the ledger you want to look at. >> you even have the production staff smiling and laughing this is going too far. >> hey, i have to make some money, this is the place >> i have to show my human qualities. they've gone from a follower in
semis to leading in cutting edge >> and in your defense, intel is having supply problems right now with its inventory as they move to a facility. you could actually see amd take leadership share from intel further. >> erin and i will continue with the rest of the show >> it kept rolling they're buying october 50s today. people are rolling up profits. >> a check of the s&p sector now. we're keeping an eye on those
headlines coming out of washington regarding trade, perhaps the president wanting those $200 billion in tariffs regardless of talks. the s&p is down five up next, hurricane florence making landfall. that's a live look at carolina beach in north carolina. we're going to get the latest on the storm, hopefully take you down there sait eatrghahd. i can't believe it. that everything sticks to stefon diggs's hands?
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welcome back, everyone i'm sue herera here is your cnbc news update. jason van dyke, who you will see momentarily on the right in court, has decided to stick with selected jurors rather than have a judge decide whether he's guilty of murder in the 2014 fatal shooting of black teenager laquon mcdonald. today was the deadline the judge set for his decision north and south korea launching their first liaison officer near the border. this to facilitate better communication and exchanges ahead of their leader's summit in pyongyang next week, the late nest est in a set of steps take then year president midora meeting
with xi in beijing to seek financial support from one of his ailing country's biggest creditors. the two leaders reaffirmed their ties and spacex says it has signed the first private moon traveler the announcement, along with when the flight to the moon will be made on monday. the original plan called for the two paying passengers to fly around the moon this year, but now it seems as though there will only be one you are up to date that's the news update this hour now we're going to go to wvit meteorologist kaitlyn mcgrath with the latest on this amazing hurricane, hurricane florence is still roaring. that's right, sue. it has weakened since making landfall earlier this morning. still a category 1 hurricane with sustained winds at 80 miles per hour and florence is not moving right now moving to the west at just 3 miles per hour, slowly crawling its way toward south carolina you can't really see the eye wall it has become disorganized and rain filled.
we're still seeing the impacts moving through far southeastern, north carolina those hurricane force winds, tropical downpours and rain bands extending up into raleigh now talking about heavy rain and a tornado threat for much of coastal north carolina as we head throughout the day today and approaching a critical time with florence. we had that high tide just after 11:30. in the past hour we have seen the peak, where high tide coincides with storm surge an additional 7 to 11 feet of rain from cape hatteras down into cape fear and the biggest threat not just along the coastline but up to rivers and streams trying to empty out because they are overflowing from rain and coming in contact with that storm surge. a very dangerous situation that will continue for much of the north carolina coast the further north or south you go, the lesser the storm surge a dangerous situation as we head through the day today and while the rain is going to stick around, the surge will lessen as we head through the evening
tonight. when all is said and done, we're talking about 30, up to 40 inches of rain possible as we head through the next few days we can see that bull's eye of rain from north carolina into portions of south carolina locally, again, up to three feet if not more of rain. while we have been making this a water impact, it is still a wind event as well. we don't want to ignore those winds. winds gusting up to 105 miles per hour we'll bring you the very latest. back to you. >> now to jackie deangelis in carolina beach, north carolina jackie >> reporter: guys, it's about 3 1/2 hours after the eye of the storm came through here and the front band before the eye is supposed to be more fierce than the back end t. appears during this storm it's the other way around the winds are gusting in a fierce way the rain is coming down super
hard the ocean behind me, you can see the waves and how strong they are. the water is coming up to the dune line. the ocean has swallowed up the beach. governor roy coop eaer of north carolina says there isn't anyone not affected by this storm as a matter of fact, more than half a million people in this state alone without power now. about 200,000 are in the shelters so this is pretty much taking a sweeping impact across the state. obviously the coastal areas will be worse the concern here was for flooding we hadn't seen any storm surge but we ran into some of the local officials who told us there are areas of flooding outside. but obviously we're not able to get to those areas to show them to you it is happening. you saw footage from new bern, 90 miles north, a coastal town where they're trying to evacuate people there they had storm surge and flooding of about ten feet
think about an average ceiling is 8 feet. as the afternoon progresses, right now it's gotten worse. it's moving through and has been accurate straight to the "t. we'll continue to monitor everything that's happening with as much information as we can. >> i appreciate you doing that work for us, jackie. you can see how fierce florence is as she comes ashore down in north carolina jackie deangelis cnbc's marking ten years since the financial crisis all week. next, david tepper weighs in >> lehman just went down and then i was just trying to figure out, as merrill would go
and then just going down the line morgan stanley would go. i think that was when i thought it would end >> more from part two of our conversation from david tepper you'll hear more next. mike mayo weighing in as well. lessons from the decade and the bank stocks he is picking now next on "the halftime report." the vix has dropped to its lowest point since august. similar drops tend to send stocks higher. trading positively 70% of the time making my dreams a reality takes more than just investment advice. from insurance to savings to retirement, it takes someone with experience and knowledge
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welcome back to "the halftime report. all this week we've been marking the tenth anniversary of the financial crisis hearing from those in the thick of the fight. in part two of our exclusive interview david tepper reflected on those perilous months and moments. >> the worst i thought it was i think was at a jets game
it was in september, and i think lehman just went down and then i was just trying to figure out i thought -- i was saying merrill would go, then just going down the line, morgan stanley would go, then it was going to be the end of the system so how was it going to stop? i think that was when i though it was going to end. >> tepper went on to tell me yesterday, steve, that it's now famous how he went all in in march of '09 he saw what others didn't see and made a big bet others weren't willing to make and, in farther, sort of underscores why he is who he is. >> he told us that also about the airlines i remember him telling me, going back to playing golf, and he
said think of an industry selling at single digit earnings growth like multiples of one or two times. i couldn't think of it he said the airlines 5% of every public airline so he goes in but most notable, as you point out for financials. he bought the preferreds, everything you could buy on those companies and had a huge, huge year when everyone was derisking and running for the hills. >> i asked him in the second part of our sitdown whether another crisis could happen again. >> first off, the banks are so much better capitalized. the banks were way overlevered when iworld at goldman sachs i was 10 or 12 to 1. when lehman went down it was as soon to 1 or crazy numbers i don't see anything happening like the financial crisis. >> more on how the banks have
fared from the financial crisis joined by mike mayo. good to see you again. hard to believe it's been ten years. >> time flies. >> what do you make of the reflections you heard from tepper i'm sure you have many of your own. >> it's night and day verse us a decade ago for banks, for u.s. banks. in that decade we would sum it up as capital. a decade ago banks had the weakest balance sheet in a generation te in terms of controls and oversight, it was absent a decade ago today it's very strong in terms of cost control, that's the driver for today's earnings growth whereas a decade ago all about grow, grow, grow and compensation far from perfect but the largest banks are now on returns more than growth that encourages more sustainable growth >> it's interesting, and i like your reaction to this, jamie dimon, the jpmorgan ceo, as all of you know, has sent a memo to his employees to mark the
anniversary of the crisis in which he says that the roots of it, in his mind, go back to 2006 underwriting policy, i'm quoting from the memo. unscrupulous brokers and cavalier investors, the banks, though not the worst actors in mortgages joined the party, too. how much blame do you think the banks should get and deserve >> look, there are many chefs in the crisis kitchen, and banks deserve part of the blame. loan growth was twice as fast as gdp. of the major loan categories, five of the fastest growth categories were all real estate. in addition to the bankers you had account @and the s.e.c. who made it easier not to take reserves you had rating agencies. you had consumers themselves some personal responsibility here as david tepper said, the regulators allowed the banking industry to have enormous leverage, way too much, and the
government, which was subsidizing home ownership and encouraged excesses. many chefs in the crisis kitchen. >> don't you think the biggest issue was they really -- because i was with lehman. they just didn't know the risk they actually had. and that was embedded by, frankly, greed by main street. >> are you suggesting that the banks deserve more blame than maybe mr. dimon is giving in the memo to his employees? >> no, i actually think government and mainstream america deserves more blame. nobody said you have to have flat panel tv in every room. nobody said you have to speculate on investment income from homes nobody said you have to leverage to the hilt and take out a second mortgage on your house so you can get a new suv. at some point i don't think main street took enough of the blame. no doc loans or mortgages is
absurd people lying like crazy. is that the fault of the bank somebody is lying? >> he also lays out, saying very bluntly, they didn't want t.a.r.t.a.r t.a.r.p. but did it for the benefit of the country dimon wrote many of the extreme actions we took were not done to make a profit. they were done to support our country and the financial system >> look, i think it played out very well for jpmorgan credit to jamie dimon. they wanted a fortress balance sheet. when the crisis came, that's when jpmorgan had to pay off from a strong balance sheet that allowed them to buy bear stearns and be strong when others were weak as far as taking an action with other people's money for the benefit of the country, we're always skeptical about that. we think jamie dimon is focused on shareholders. it can be mutually beneficial. you help out the country, so to speak, so long as it helps out the shareholders >> are you doubting his motives
for taking t.a.r.p.? he's laying it out clearly as to why he did it. >> he didn't want to >> do you think he had a choice? >> i doubt he had a choice i've been watching cnbc specials this week. i'm learning new information every day with your specials it's ad hoc. you had the political backlash no bailout for lehman. then more bailouts you had t.a.r.p. got voted down by congress. the dow falls 1,000 points and then gets approved it's not like you had some kind of plan which you were playing out. it was pretty adhoc. if that's what jamie dimon says, i don't have a view. i can't call him out on it on the other hand i hope he and the other bank ceos are looking after shareholders with a company like citigroup, lower than it was precrisis, we hope citigroup is looking out than interest with other people's money >> i have to run
last point and i want to bring it back current. what in the world is going on with goldman's stock what's the deal? >> we were on your show. we said we would like to hear from david solomon, the new ceo. we've yet to hear from david solomon. we'd like to hear what are the key financial metrics he's looking to what are the key business areas he'd like to allocate resources, and what is up with the new management team which was named yesterday. and so we want to see how that plays out. we need to hear from david solomon. i would love to be back on your show once we hear from him until he comes out it will be longer time frame for goldman sachs. >> it doesn't bode well for the trading numbers when the companies report, right? goldman's stock was down at least ten days in a row. isn't that the fear? >> we think it's a good move that the cfo is going back to the securities unit. he's all about technology and expenses and moving fixed income training more to the 21st century. we think that is a positive developing at goldman this week. we need to hear it from the
company. there have been more appearances by david solomon as d.j.sol, more as a disc jockey than in presentations to investors >> i have a feeling we will. mike mayo, nice to see you again. up next, jon and pete have unusual activity one of the stocks they're watching has surged 40% in a month. what's the options market saying now? straight ahead first a check on the dow 30. the dow is down 44 don't forget that the past can speak to the future.
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cnbc.com tom frank wrote all about it the story is online right now. go to cnbc.com >> we're back. the energy sector down roughly 3% in the last three months. options traders and, pete, you're up first. tell us. >> you can see this, obviously stuck in this little range for a little while down there and made this pop and it's been kind of hovering around ever since ask since november they started to buy the november 77 calls and they followed that up with today and shrinking back going back and going to actually october and buying the 76 calls. pretty aggressive. 10,000 of those traded, as well. the bet here is on the xle going
higher 30% of the xle when you break it down is exxon and chevron. i own stock in both. i didn't add to my position today, but i highlight the fact that these are monster trades over the last two days telling us, giving us a signal maybe this thing is ready to push up to the 76, 75 level. >> this is one that our brother from another mother, josh brown, has been all over. stitch fix this one fxis that run somebody bought a wholebunch of calls right here these are people who have been right and we've had unusual activity since the stock was 25 bucks a share. as it runs to the upside here. they took off 10,000 that's a million share equivalent they took off 10,000 and roll it up to double nickels for those traders out there. double nickels
they're buying them in big numbers here i think this thing has more room to run and i like following somebody who has been right multiple times quick update for you, scott, if i could. take a look at sony. this is one that we highlighted unusual activity in when the calls were a buck as sony moves from 54 now to almost $60 a share. these calls went from a buck to 4.60 so, that's why we trade. >> good stuff, guys, thanks. coming back over here. come on back because we're going to answer your questions coming up two minutes away tweet us @halftime do it quickly. we're back with those, next.a hb ♪ ♪ ambitions live everywhere. synchrony helps make them happen with financing and partner offers at over 350,000 locations.
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ythen you turn 40 ande everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade. welcome back to "the halftime report. first up, austin in texas asks
do you still like square at these levels or prefer something else it's for you. >> i prefer nothing else they just signed up apple and chrome book. i think those two accesses to people sending money through square is going to make this thing push into the 130s. >> i'm going to say paypal i love what paypal has been doing. they continue to get upgrades and people continue to raise it might be interesting. >> all right thanks a lot for you, pete, scx is that a buy? >> it suffered all week long but john had activity on wednesday with jim cramer and when we start seeing that often times it has been pretty right i like it, but i think it's very short term >> final trades, erin brown, you're up first. >> fdy is close to home and
buying dividends. >> data analytics being bought by moody's the company had cash deal, to me they're stealing the company i think you buy it >> box, bought it during the show b.o.x. >> thank you so much >> enjoy the weekend "power lunch" starts now welcomwelcome, everybody, to "power lunch." i'm tyler mathisen three major breaking news stories we're watching right now. number one, former trump campaign chairman paul manafort pleading guilty and cooperating with robert mueller as part of a plea deal. new reports that president trump wants to move ahead with massive tariffs on chinese goods, the markets moving into the red on that news. and, of course, hurricane florence crushing the carolinas. a storm whipping up punishing winds, massive flooding and devastating destruction. we have live tea