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tv   Fast Money Halftime Report  CNBC  April 9, 2019 12:00pm-1:00pm EDT

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>> crazy week continues. indeed intraday, dow has not moved around a whole lot it's been disney and apple that have been outperformed the rest of the components. and then we continue to battle it out around 2880 we'll see if that dynamic changes. i'm scott wapner stocks might be falling but one big name is rising again it is apple, going for a ten-day winning streak, its longest since 2010 is that the most positive sign yet that the rally's momentum is far from fading? it's 12:00 noon and this is "the halftime report. >> announcer: apple's run, up ten straight days, just over 8%. what's it mean for the rest of the market if we suddenly have a two front trade war in europe and china, which stocks will react first? and get ready to rumble. tomorrow, the banking ceos face a brand-new financial services committee with maxine waters as
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the head and alexandria ocasio-cortez ready to pounce. plus, big earnings from the group are now three days away. "the halftime report" investment committee weighs in. now, here's scott wapner >> all right, good to have you with us on this tuesday. here to debate and trade the big stories of the day, joe, stephanie, jim, and john and pete najarian. the stock reclaiming the title as the most valuable company in the world by market cap. pete najarian, to you. up 42% since apple's own low >> yep >> this is a great sign for the rally. >> well -- >> it used to say as goes apple -- >> goes the market i think a little bit less of that, though, over time. we've seen a little bit less of that, scott. obviously this has been a great run by apple and a lot of it is because i think the focus did come away from phones and people are looking at all the other areas where apple has all this strength and where they're growing. they're also looking at china
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and thinking, hey, you know what, when they did finally alter the price, those phones weren't what they once were. they were now suddenly touchable. suddenly they started selling the phones again so you look at wearables, look at services, and then all of a sudden there's another area, i think, that you're going to want to start paying more attention to, a.i. as that starts to come out, six, nine months, maybe a year out, we're going to start hearing more and more about a.i. >> doc, apple target today raised to 225. >> yep love it. >> remember pete's favorite analyst, katie >> there she is. >> morgan stanley. >> yesterday >> boy, she's right. >> talking up the healthcare aspect as still an underappreciated area of growth for apple. >> and i think she is exactly right on there that's a big shock it's my biggest holding, as you know i'm happy about that because this is one of those drivers to outperformance, to alpha, judge. and ms. huberty is exactly right
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that the healthcare side of apple's business, what they can provide as far as data and all the rest, to the healthcare industry is going to be huge and the more people, the more of us that have any of their products on our person which would include cell phones, not just watches and things like that, that is immense for apple. and that data is just like mana from heaven for the folks that either want to ensure or make sure that you stay healthier >> okay. farmer georgio >> look at jimmy >> skinny tie rocking and everything it's the new and improved farmer jim. call you georgio for the rest of the show because of the armani lack of transparency, who cares. guidance, who cares. right? that's how the stock market's been reacting. apple's 202 right now. >> so, look, i'm listening to what the brothers najarian have said and i agree there are things here, whether it's the services, healthcare, everything
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that is possibly pushing this to a higher multiple than it currently has but that multiple around 15.5, 16 times right now has traditionally, for the last several years, been resistant, hasn't really gotten above that. so so so here's the yin and the yang you've got 5g coming out and it's very clear that apple has not been on the forefront of getting 5g phones out there. lot of reasons for that, maybe it's the dispute with qualcomm but they're late to the 5g party and we need more iphones to support those services i'm still in the stocks, scott >> i know you are. >> i'm in there. >> capital management tried to get you in at sub 150 but that's okay >> i know you like it when i say you were right here's the thing i'm just going to add a splash of realism here. if the iphone user base doesn't grow, the rest of the argument gets a little, you know, a little shaky, so i really would like to see those 5g phones starting to get promoted >> steph, what do you make of this whole conversation, what apple means to the overall
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market as you look at what has really been an explosion higher by what is once again now the most valuable stock in the world. >> yeah, i think a lot of the apple move is apple specific, though i mean, i would like to say it translates into the market as a whole as it builds confidence for the overall market but there's a lot of good things, there's a lot of ways to win with apple they have a 1.4 billion installed base so to the extent that they can use the services revenue and see that grow, 17, 18, 19% per year, you're going to go from 18% of total revenues to probably 25% over the coming years and what's important about that is it has 61% margins versus the devices which only have 33% margins so that's why you're going to see multiple expansion and that's why you're going to continue to see it moving higher. i think it's also healthcare and apple music, by the way, which doesn't get any love at all and i think those are really powerful drivers for the stock overall. >> joe, it's not just apple, if
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you try to make a statement that, you know, so goes apple or as goes apple, so goes the market look at tech more broadly. tech's the best performing sector year to date. the other f.a.n.g. stocks have been performing well over the last three months. apple's 32, facebook 23, netflix 14, google 11. year to date, those stocks are all up tremendously. >> yeah. >> that's continuing >> well, it's indicative of a market that's searching for growth in an environment where growth is slowing, and you're going to see sustained revenue growth above 20% in all the companies that you're identifying and i think that's what the market gravitates towards, the market is gravitated towards that over the last couple years when we get in this low growth environment. i think part of the story as well is this capital redeployment, specifically as it relates to apple i know jimmy cramer was tweeting about this, this morning, and it's incredible, but you saw a massive and who are the individuals going out there and
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doing this there's 150% rise in short interest in apple from the middle of february until the end of february, so not only did you have when you reported the quarterly holdings from q4, you had everyone significantly selling out of apple, but you actually had someone which, i just -- it's incomprehensible to me, shorting massively apple from the middle of february until march and it's just continues to move higher >> that's what i said before there was a big issue around the change of -- in transparency right? they did cut their guidance, right? all of that's forgotten? because the stocks had a great run? >> go ahead, john. >> because of that, judge, you had underparticipation in this name the same sort of thing that you had in facebook as it crashed down from 180, 170, 160 all the way into the 120s and then they announced that share buyback so
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when you jeffries and all the big cuts that were going on, the 3rd of january, pull that up, folks, take a look at all those headlines from all of those firms that have embarrassed themselves by how wrong they were, cutting their targets down to 160, 150, even 140, are you kidding me now look at all those people that followed those analysts, judge, not all of us, obvious, but the people that did are scrambling to get back into that stock and unfortunately, you know, they did it right the first or second trading day of the new year i think it was all on the 3rd of january or so. >> absolutely. >> so that was terrible. >> so we're beyond -- >> as far as timing. >> that's the sort of point of the note today is they go to $225, they say after a turbulent few month and that's what we've been talking about, calm is being restored is that what you all feel? >> price is being restored >> about where apple is now? get past the noise now just focus on what's really happening. >> did so much really change, fundamentally, about this
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company, or was the visibility, the lack of transparency -- >> that's what i'm asking you guys the stocks had this huge run has anything really changed. >> let me answer what really changed, you know, you're -- you're giving jimmy a hard time about not buying apple at $150. >> i'm just kidding. >> and i know you are. but how many people -- listen. all the passive indexes in the world became active managers when apple was at $150 i can't tell you how many people i heard, they were writing blogs, days of apple are over, no you don't want -- lack of transparency, we don't want to buy apple here so i don't know if this was really about fundamentals as much as this is about price and people reacting to price and the price target on apple, i highlighted this when it was $190, the price target on apple needed to move higher and that's what you're going to see right now is the actual price moves higher, people are just reacting to the price i don't think fundamentals in this company truly changed all that much. >> it's really -- i think it's
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also about -- to your point on price, it's also positioning so, i mean, this stock at one point last year held up remarkably well and everybody was in it and was kind of crowded and that was when the stock was at, like, $220 so they disappointed and you had this snowball effect and everybody sold it at the, you know, during the lows and i think now people kind of are trying to figure out should they get back in, should they not, the valuation is compelling, is it not, but i think things have changed. i think we have better visibility on services and the margin impact and i do think they have a lot of ways to win in terms of revenue growth beyond the iphone. i think we all got obsessed about the slowing iphone sales and nothing else was going right and that -- and by the way, when nothing was going right, the company was buying back a ton of stock, so they're doing the right things and i think it's really a positioning thing >> so, i also think it's a -- i think it's a -- >> go first, pete, and jimmy you get the last word. >> i think it's about circumstances and i think there's an overreaction, the what we saw was china numbers in the iphone were slowing or not as good as everybody expected
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and that was the immediate reaction, like there was never going to be a reaction from apple. apple did react. they changed the pricing they did what they needed to do and to steph's point, she was talking about margins earlier, when you look at the growth in the businesses that are growing at the unbelievable pace at which they are, for a monster company, and this does get lost on people. how big services really is how big wearables really is. >> sure but revenue growth for services was slowing is slowing >> slowing, right. and then all of a sudden -- >> that is a fact. >> yep >> still, 17%. >> but -- and they've got the better margin area that you pointed out as well so you do still have growth. you have growth at a tremendous pace even if it is slowing somewhat >> do you have enough growth, is the pace enough to make up for whatever you're going to be losing >> my premise was when the stock's so dolla$150 my premise, focus on the wearables and the other areas. i'm going to bring this up again. a.i. keep an eye on that. when they hired the gentleman who's now running that for apple from google that was a big move
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and nobody seemed to pay any attention to it but that's something that's going to be coming >> last thing, quickly >> i think everybody's saying it's easy to get to $225, the target, and i would agree with that the question for me is what comes after that and the answer to that has to come with what do they do with the cash award. $1 billion to $3 billion tuck-ins they may work to get it back to 225, 230 but i would like to see something transformative past share buybooks and dividend increases. >> like what. >> buy a content provider. there's a slew of them out there, doesn't matter if it's discovery, amc, cbs, viacom, you know, maybe you want to get into a.i., buy an a.i. chip manufacturer, something that's growing explosively. i'm not going to tell them what to do. i'm going to say, look, that cash hoard just sitting there, that's where you get the next leg up >> dow is down 152 markets are lower across the board. that as the president is threatening tariffs on european goods like cheese and wine imf cuts the growth forecast to the lowest level since the
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financial crisis all right, so, what are we to make of this that seems to be why the market is upset so what we had, you know, here we go with tariffs again, maybe, doc. >> yeah, history doesn't like it and history will also show that you don't win wars when you're fighting on two fronts, scott. this is a very bad time for the president to be going after this when his own people are saying, we need to cut interest rates, we need to cut 50 basis points love larry kudlow, but when you're out there saying that and that's the thing that's holding us back, that's not the thing that's holding us back what's holding us back are tariffs rights now not where interest rates are so if you want to really focus on the markets moving higher, then relax that rhetoric about fighting a war on two fronts and instead focus on trying to get the one war won. >> that doesn't seem like it's going to happen any time soon. kayla tausche -- >> you guys were telling me it's all priced in. >> i wasn't telling you anything so don't talk to me. >> several of the people on the
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desk, not you guys >> i was -- >> told me over and over again that it's all priced in. a win with china's priced in now you're telling me or aren't you telling me -- >> i'm not telling you anything. i'm saying the president's talking about tariffs with europe now >> yes, i know, like i say, two fronts win the one that you're fighting right now first. we didn't start the war with europe, we started it in china, now we're kind of, you know, sabering them over in europe you don't want to do that. >> maybe a good part of a deal with china has been priced in, but a real messy deal with europe has not >> yep >> at the same time as brexit. i mean, this is a bad idea >> i agree >> by the way, i just want to get the reporting out there. kayla tausche was reporting earlier that the trade war with europe is expected to ramp up next month and they're targeting mid-may for a china deal and then who knows what with europe. that could get uglier after you
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get china done >> saying it's a bad idea. >> it's like, well, if you think this whole trade situation is going to be over with completely, think again. >> no, but getting china done -- >> full bore with the europeans. >> getting china done is more important than europe, obviously, and then not only is getting china done on trade very important, but also seeing the effects from the stimulus program that they've been putting in since last year and we are starting to see some green shoots we've talked about this over the last couple of weeks, total social financing for january and february up double digits after being down last year for much of the year that is very important in china. that's the number one data point that i look at to see if things are actually improving they're not great. they're not great. but they're actually bottoming out, i think, and then you look at some of the other data so i think it's a combination you have to look at trade, that has to get done and then you have to see this stimulus really take effect and that should stabilize, i think, growth globally and maybe offset some things that are happening on the trade front in europe. >> so, to me, europe is the key to all of this and if you look at the imf downgrade, it was
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0.5% for germany that was one of the largest cuts that the imf made so this is about europe slowing to your point, a resolution between the u.s. and chinese is most needed by europe. europe is a significant trading partner. they're seeing the contraction right now. i think on the other side of it, though, the thing about the imf growth outlook is they do show the recovery happening in 2020, so yes, they're seeing a moderation in 2019 but it lifts to 3.6% by the end of the year and they actually raise china so i don't view this as ominous as it's maybe being presented in the headlines. >> we have one of our own traders making some pretty big moves today to his portfolio so we wanted josh brown to call in and talk about it. josh, are you there. >> hi, scott, how are you. >> i'm good, thanks. so, disney, what are you doing with disney and twitter first. >> which one >> disney. >> okay. i doubled my position in disney today. >> okay. >> i think on disney, this is a
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stock that in early 2015 hit $120, $121 a share and then a lot of negative news about espn started to hit and that became the narrative for a long time and this stock has now been consolidating for almost five full years but the good news is, the more times it presses back up against that $118 or $120 area, the better, and you're seeing actually higher lows, so when it falls off, it's being rescued by a 200-week moving average. the buyers are coming in exactly where they should so you've got not quite an uptrend but i think it has all the ingredients now, what's the catalyst in two weeks, disney is going to have the biggest opening weekend for any movie ever made, in my opinion, when the avengers opens up to what could be $1 billion for all we know. never happened before. may not ever happen again. ticket presales are just absolutely going bananas it's going to be a global phenomenon maybe that's the catalyst that takes this thing north of $118
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or $120 and from there, there are no sellers so i can envision a scenario with russell wilshers rerated, everybody gets excited about the app for the fall, a lot of things happening in the second half of the year and i think this is going to be a really great trade >> so you double the size of your disney position >> yeah. i wanted to be twice as big as i had been because the closer we get to that resistance level, the more likely, i feel, it will break out. so, disney, the fundamentals tell you what to own, the technicals tell you when you want to own it and i want to own it bigger now. >> got you and tell me about twitter. >> twitter is -- if you look at the way it's trading relative to a lot of names in the space, a lot of media and social media names, twitter is acting better than any of them it's having a great year, and this is another stock that tends to go up on good days for the market and also goes up on bad days for the market.
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it's a very slow and steady accumulation here's another stock bumping up against resistance dating back to last august that $36, $37 a year is resistance it's hit that level several times, it's fallen off, now it's making this pattern of higher lows as well i think if they can get into the gap from last july when they had an earnings, quote, unquote, earnings disappointment, if they can get into that gap, the stock really gets loose, gets into the 40s, so i've been in it for a long time, i've done okay with it, i haven't really wanted to add to it. now i want to get bigger i think this is the biggest beneficiary for political ad span that no one is talking about for the next 18 months, twitter is going to be the battleground for every single campaign and this is where i think a lot of money will be spent by advertisers >> okay. we're taking a look at that stock. and then i'm kind of surprised about this next one. albemarle. you have sold it why? >> i needed to make room no -- i might get back in.
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nothing -- nothing negative to say about it >> give us a little history, though, in terms of when you got in, why you did get in, why you liked it, that sort of thing >> i started buying it in the '90s, went up to the 140s, i had not sold any i may buy back in. albemarle is a highly, highly specific story about catalytic converters and the types of lithium that you need for lithium ion batteries and i think they're the best play there. the sector has been tough because a lot of people are concerned about new capacity coming on. that's a problem that you always have whenever anything is commodity-related. i don't think that that's really going to be a big deal long-term. so, this is a name that i'll probably get back into but i have two stocks that i think are on the verge of breaking out and i just had to make some room >> i got you thanks for calling in. we appreciate it see you guys josh brown calling in.
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big week for financials as well with the ceos of the major banks heading to capitol hill tomorrow to face a panel of house lawmakers. all this ahead of friday's first earnings reports our wilfred frost joining us now with what to expect from d.c and we are getting an idea because some of the testimony, at least the prepared statements, have been released what are they going to say >> yeah, so, scott, clearly the title of this hearing suggests it's meant to be a sort of ten-year review after the financial crisis, how banks have changed, how the financial system has become more secure and on that topic, jamie dimon will say tomorrow morning, "there's no doubt that the strength, stability and resiliency of the financial system has been fundamentally improved over the course of the last ten years." but of course, we know lawmakers will go wider than that. they'll focus on other topics and try and score points where they can one particular topic i expect to come up is ceo pay in the committee's preparatory remarks which were released, they released a graph of how much the ceos are paid compared to the respective pay of their median
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workers. citi's mike corbat, for example, 486 times the pay of his median worker no doubt some uncomfortable questions to face there. solomon, who fares best on this, goldman-sachs, 151 times, is expect to say our people are paid based on performance of the firm as a whole. their group's performance and their individual performance and no doubt some further questions on the gender pay gap, minority pay gap and a few other topics, scott, i expect, very quickly, buybacks, data security, data privacy and the way the companies used forced arbitration. >> i wonder, first and foremost, how aggressive this whole thing is going to be it has the, you know, chance of being somewhat of a spectacle but also maybe brian moynihan of bank of america trying to get in front of that pay topic by announcing what he did today by raising minimum wage at bank of america. >> absolutely. to $20 an hour significant step higher than most of the other banks. wells fargo, for example, and jm
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mor morgan at $15 although it's more like $17 or $18. i think the timing of that one can only say it was meant to preempt the hearing tomorrow as for the tone overall, i would say, scott, it won't be as heated as what we saw in march with tim sloan because there's not an immediate reason for this it's a ten-year review on the flip side, i would say that only two of these ceos have ever faced a congressional hearing before so even though we think of the likes of corbat as seasoned pros, they have never faced this type of hearing before and that just increases the possibility of some kind of errors or mistakes >> going to be interesting we'll have full coverage i presume you may even be down there. wilfred, good to see you >> i will. taking the exceler with the ceos who want to avoid riding on private planes >> that's a good idea. very good idea >> smart >> wilfred, thanks we'll see you tomorrow >> i've had to cancel mine as
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well, of course. >> we'll have full coverage as you might expect banks. earnings this week. that's the real story. tomorrow's going to be a spectacle, a made for tv spectacle if you will. what about the earnings coming this week? wells later in the week, steph, jpm. >> i think jpm probably snaps back from the terrible quarter they had last quarter. i think the theme is going to be capital markets has seen a recovery january, february, it was terrible we knew that but march really did improve substantially. and i think that's what people are going to kind of hold their hat on and hope that that actually will continue i believe it will continue in terms of the activity in capital markets. i also think you're going to hear the rhetoric around mortgages actually increase as well, given the great application data that we've seen over the past month and i think that that is actually not in the stocks at all and i think wells fargo actually should fare pretty well. of course we know what's going on with wells fargo in terms of the management change. we have to wait for that stock to really do much but i do think that the cost-cutting story is still very much front and
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center after earnings, then you're going to get ccar and i think people will get excited about that i think you're in for a pretty good spell for the next couple months >> tell me why you think the two stocks that report on friday have so dramatically underperformed, a citi or bank of america of goldman year to date >> capital markets if you want the juice, goldman and morgan stanley and i think bank of america is a separate story, an operational efficiency story, operating leverage story and by the way, bank of america did have the best quarter of the big five last quarter. >> largest position of yours >> yeah. >> and watch jpm here because jamie said last week, mr. dimon said last week that he prefers to use capital to grow the business rather than share repurchase so watch this because he could be making an announcement, scott. >> okay, we will doc, thanks. >> here's what else is coming up on "the halftime report. >> wall street gets positive on a key player in the retail sector
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the analyst is calling for a 30% jump the call of the day is next. plus, our quarterly report zeros in on the halftime investment committee's big wins and losses from q1. "the halftime report" with scott wapner is back in two minutes. when you look at the critical issues facing our world, what do you see? we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.
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"the halftime report." any questions for me or the other traders go to cnbc.com/halftime and we'll be more than glad to answer those questions. keep them coming thank you. >> announcer: go to cnbc.com/halftime or get us on twitter with #askhalftime. >> we are back on "the halftime report," retailer pvh has been on a tear. that stock's gained nearly 40% since the beginning of the year, although it follows a dismal 2018 which the stock fell 30%. now, morgan stanley says the company has turned a corner. they initiate coverage, they go overweight on the rating, $164 is the target, thus it is our call of the day. stephanie, pvh >> i don't own pvh >> why not >> because they're pretty inconsistent >> you did, though >> a long time ago >> seems like a name for you valuation level. >> seems like a name, cheap, beaten down. >> no, no, no. >> thank you very much >> great valuation and all that kind of thing. seems like a steph name. >> yeah, i just think that
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there's a lot that's -- that has to go right. i mean, they've had some problems and missteps in terms of execution they get painted with the china brush for number one so that's been a big problem currency is a big headwind for them and they're having issues with products in europe, which isn't surprising ginsbuven whats going on in europe i would like to see a few quarters of execution just consistency and i would like to see europe actually stabilize. >> okay, so this is kimberly greenberger, well known analyst, morgan stanley, says, to your point, concerns about china are overdone, concerns about calvin klein execution are overdone she's looking for a reacceleration, thus the overweight 164 make sense >> so, scott, i see you coming to me and i understand it because it's this mix. >> trying to spread the wealth >> let's mix some italian fashion and midwest overalls, i get it i'm not a calvin klein --
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>> that's the trade, giorgio >> the wins of appreciation for fashion are so fickle, this thing could be hot for a couple of weeks, she could be right and then something happens, whether it's in china, they all of a sudden decide they don't like calvin klein or calvin klein gets the wrong, you know, version of tan on its khakis and the stock goes down. not my cup of tea. i can't analyze what the long-term drivers are here >> the strength in this company has been tommy hilfeger. calvin klein is where you've seen the choppy execution so the lift that you got in the prior quarter for calvin klein came from europe. now you're in this environment again where the whole world is questioning the growth potential in europe and i think it's correct to really cite that calvin klein is not going to see the sustained recovery and i think they need calvin klein to recover. i think they need heritage brands to recover. i don't think this can be specific -- >> why is the stock up 38% year to date if you guys are dumping all over it? >> listen, first of all, the
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stock was $168, i think, in june and i think it went down to $86 in december. >> that's fine a lot of stocks got destroyed in december >> yeah, but a lot of the stocks that got destroyed in december are now at or near all-time highs. this stock has a long way to go to get back toward $168. the bottom's probably in but i think this is a story we talk a lot about botttechnical and fundamentals on this show. you need to see fundamental traction from calvin klein the macro stuff, i'm not so sure >> currency's always been a big problem for this company very good ceo, excellent ceo, great management team, great bench, i mean, it really has a lot of the makings for a good story. i just -- i feel like they just stumble every, like, two or three quarters and it's -- it's that inconsistency which is why i think it trades at 12.2 times forward estimates. >> all right let's go to kate rodgers with the news headlines >> here's what's happening at this hour. treasury secretary steven mnuchin telling a house panel
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his department intends to follow the law and is reviewing a request from a top house democrat to provide president trump's tax returns to lawmakers. >> i want to acknowledge that we did receive the request and as i've said in the past, when we received the request, it would be reviewed by our legal department and it is our intent to follow the law and that is in the process of being reviewed. >> new york city has declared a public health emergency over a measles outbreak and ordered mandatory vaccinations for some people who may have been exposed to the virus mayor bill de blasio announcing the order. it covers people who live in brooklyn's williamsburg neighborhood where more than 250 people have gotten measles since september. and a sure sign of spring, the 83rd masters to be played in augusta, georgia, this week, favorites dustin johnson and rory mcilroy were on the course for practice rounds, both still looking for their first masters
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win and they will tee off on thursday that is the cnbc news update at this hour, scott, back to you. >> kate rogers, thank you so much options traders, they are making bullish bets on a semiconductor stock. it's already up 30% this year. that space has been ripping. stick around for more and unusual activity with john and pete we got a twofer. first a check on the s&p serkts. there you go s&p is down 10 communication is leading today industrials, pulling up in the caboose. halftime's back after this what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants... can be a little more... like plants. ♪
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welcome back to "the halftime report. marvel technology up more than 30% this year. guess what options traders are doing? the najarian brothers are at the telestrator with more to tell us >> that's right. >> what are they betting >> they've been right, they've been right, they've been right john did this for me and each time they've bought, scott, this thing's gone a little bit higher and it's a nice move what we're seeing today now, the may expiring the very first week of may, may 3rd. keep an eye on the 22.5s not that far out of the money at this point in time so they could start to move. they were bought about 3,000 of those were bought for about 30 cents today so not ungodly
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aggressive but aggressive enough to catch the attention because whoever's been the buyer in here has been right all along i like the semis anyway so i liked as soon as i saw this, i jumped back in, i had a position in this just a couple weeks ago, i had already taken it off but now i've rolled into these i think we've got some upside. i got another for you and we've talked about energy a lot. and i just looked at my disclosures. i've got 13 positions out of my 59 are in energy the xop hits almost every day. now today, down a little bit that's fine. they're coming in and very aggressively positioning again as a matter of fact, hit twice today but they're really focusing on the may calls. they're going up to these may 32.5 calls or 33 calls, excuse me, but some real size they were bought here, bought again here, adding to that, and looking for even more upside coming here. can this explode to the upside it's been pushing. we know where oil is i know joe knows where oil is. you're looking at, oh, around that 64, maybe a little higher level. if it continues on this pace, i think this xlp is going that much higher. >> didn't you have exxon yesterday?
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>> yes >> day before? >> i wasn't -- no. no, but i own it i own exxon. i love what's happening in exxon. >> maybe that's what we were talking about. >> that could have been, yeah. >> i knew exxon was in there somewhere. >> yes, sir. >> all right doc, go ahead. >> take a look at this one, judge, and i have a twofer for you too. the first one, avay, this holdings company, $18.44 it's up about 4% today and it is making a really nice move from this low right here on up to here so, i mean, as it makes that move, they came scrambling in, buying a lot of calls. and the calls are out there into the future far enough that people that are stock investors might want to pay attention to it too because not just a short-term trade, longer term trade. september, 20 calls, they're buying those in big numbers, bought almost 7,000 now so far today, i bought those calls, i'll probably be in two months second one, very short-term. this one is netflix and right
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from the opening bell, they've been buying calls in netflix they were buying the 365 calls that expired this friday so, the stocks right here now at $364, up almost $3 on the day. they were buying these calls again they expire friday and they've already moved from $3 up to $5, i believe i am in those calls and i'll probably be in them two to three days >> interesting a stock that you guys don't have >> i own the stock, bro. yeah but they do buy in there once in a while, scott this is a good example today >> thanks, john and pete halftime quarterly report is coming up. joe and steph in the hot seat. only two minut ay.eswa we'll go over their winning and losing q1 trades we'll do it next [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated.
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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit welcome back to "the halftime report," do not adjust your sets, i'm sue herera filling in on futures now. the gold market rallying today and technically it crossed back above its 50-day moving average. joining me today, jim, it's been
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good support for the yellow metal in the past. also there you see jeff as well. jim, what are you looking at now? >> okay, if you look at the six-month chart, thursday of last week, it broke through what i thought was significant support around 1287 and it sucked in a lot of really smart people to sell it, not just me, for the people who are watching me on twitter. the way it rejected that low, to me, is very, very positive, and then as soon as it came back through $1,300 on the upside, it seems like that is a good, substantial tradeable low now and now i'm long it again. >> jeff, what makes it move higher, if, indeed, jim is correct? >> well, sue, it's really interesting. we have seen gold hang in there all of 2017 and 2018 and now in 2019, it's fed policy, sue we saw that flip as soon as fed chair powell flipped to that more dovish tone, we have seen an underline in gold. central bankers are buying gold. there's a lot of anxiety underneath the stock market,
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despite the fact we're almost at all-time highs in the s&p 500 and i think that continues to keep a bid in the gold market. >> see you again in just a little bit for more on the move in gold, tune in to our live show the traders will join me and the lay out a new way to trade gold futures. plus we'll be joined by that gentleman, peter boockvar who says that wall street is ignoring a major market risk that's all coming up at the top of the hour. scotty, back to you. >> sue, thank you very much. i just want to bring something to your attention. we'll call it new at noon ahead of the pinterest ipo and on the heels of the lyft ipo. you are getting wall street coverage out talking about pinterest. atlantic equities just initiating it ahead of the ipo as overweight. $23 is the price target. they think it's unique and broadly positioned i just bring it to your attention because it's going to be another hot ipo >> sure. >> from the world of tech. >> although it might be -- >> it gets initiated already >> it might be kind of soft
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versus where the last raise was. pins is the symbol lehere when t comes out and they're saying the pricing will be between $15 to $17. >> they got the message from the lyft ipo and the way it traded >> squeezed that nickel until the buffalo screamed >> what do you think about this? >> this one doesn't look like they're doing that it doesn't look like they're overextending and getting every last penny out of it so to the extent that pinterest is not doing that, and it's got 250 million followers worldwide that use the service, it's probably a little more fairly valued. >> are you trying to get an -- >> yes, i am i'm trying to get in and it looks like i will >> just like you did with lyft >> i didn't get any in lyft and in fact i'm short lyft but we'll see where -- and by the way, they were buying puts aggressively in lyft again today, october 60s, i believe and they're trading for like $8 or $9 so these are not cheap puts but they're betting that
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this thing continues to go lower. that's why i'm short >> you're trying to get an allocation that you would then -- >> flip. i would flip it. yep. especially if atlantic is right and we get that kind of surge through '20 and it comes out $16 or $16.50. i'd love to take that. >> keep us up to date. i wanted to bring that to your attention again as atlantic equities initiated pinterest overweight second quarter is under way so we're taking a look back at some of the traders' most memorable calls from q1 and forgettable ones, we should say that too in the quarter report, stephanie and joe are up first >> i bought chipotle i believe in it. you got a great management team that has come into chipotle. it is a recovery story, trading with momentum once again on its side for the very first time in years. >> why would i not own a companies that delivering consistently well above trend and it is going to continue. this is a fabulous management team >> all right, joe. chipotle up 40% since january 11th.
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now what >> stay with it. it's going to break out, make new highs. >> stephanie link, costco, up 12% since february 19th. now what >> it's up 20% year to date and it's been a home run for the last couple years. i've owned it for a long time. every time i trim, i regret it because it goes up because they do have such a great business model, 75% recurring revenues and the subscription model is working in full force. they are going to report comps tomorrow i think you're going to see something like 6%. who's doing that retail these days, right so i continue to like it the only thing i don't like is the valuation but i'm just sticking with it >> okay. all right. that was the good. now we'll take a look at some of those that didn't exactly work out yet. >> one company in healthcare that did a great job in terms of the earnings numbers are going higher, it's the best in the business this is one you want to own. >> i would bail and put the money in steel dynamics. i like the domestic focus and they generate some free cash flow >> all right
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steph. >> what was the ew >> united health on mine. >> down 7% >> yeah. >> not terrible but best in class is what you said >> it is best in class >> what now. >> now it's even trading below 17 times they actually beat and raised in the -- in last earnings report and i expect they're going to beat and raise again i think the reason the stock is down is really all political and it's all about the single payer combination that we're hearing from congress. and also, i think there's uncertainties about the pbm business and really the viability of that, but i still like it long-term. i still think they're going to grow double digits i think the valuation makes a lot of sense so i'm sticking with it. >> okay, joe, on a day where u.s. steel is getting smoked >> yes, it is. >> down 8% as i'm looking at it. talk to me about steel dynamics, which is down 10% since you picked it february 25th. >> it has pulled back but overall it's up 16% on the year. i gave steel dynamics in answer, i believe, to a tweet where
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someone talked about other steel names. i like steel dynamics, u.s. focus, best of the steel names versus, let's say, u.s. steel. i actually think where it's trading right now is a buying opportunity. >> u.s. steel, by the way, downgraded to under perform at credit suisse today. >> a viewer wants to know if they should trade gilead for merck? we'll answer it next time to reach us cnbc.com/halftime. tweet us at halftime report. back in two minutes. ♪ ♪♪ ♪♪ ♪♪
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we're back time to answer some of your questions as well. first up, stephanie link, coming to you, janet in new jersey, thanks for the question, we appreciate that, should i trade in gilead for merck? >> it's really hard. i mean, they're both up about 6%. >> i own both. i do merck was a great took last year, one of the best health care stocks to own, up 6% this year, trading at 16 times forward. it's getting a little pricey i think. gilead it's interesting because it's up 6% year to date, but trades at ten times forward estimates and has a new ceo and the new ceo is rumored and expected to be doing a lot of deals for the company. i think the die nams micks will change going forward >> george, one for you, david in connecticut, okay, what's up
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with greenbrier? >> yeah. >> by the way that stock hit a new 52-week low today. >> you own it? >> i do. >> look you buy it here. can't say it any more simply this is a railcar manufacturer, an industrial, has a very clean balance sheet with almost no net debt, trades at about 80% of book value it's crazy trading like the recession is here right now and no sign of a recession coming this is a great buy right here. >> okay. good stuff thanks for the questions once again final trades are next -driverless cars... -all ground personnel...
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...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. no matter what you trade, at fidelity let's talk about thisd when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.
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oh, wow. you two are going to have such a great trip. yeah, have fun! thanks to you, we will. aw, stop. this is why voya helps reach today's goals... ...all while helping you to and through retirement. um, you guys are just going for a week, right? yeah! that's right. can you help with these? oh... um, we're more of the plan, invest and protect kind of help... sorry, little paws, so. but have fun! send a postcard! voya. helping you to and through retirement. time for final trades. pete. >> sticking with energy, oih, all they do is buy buy buy >> pete. >> pzza. bought that during the show.
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>> nice. >> okay. >> intel has paused the last few days setting up for the next leg higher. >> campbell's soup, new ceo, turnaround story. >> jm smucker. >> follow the markets. dow down by 150 points kelly and the exchange crew pick that story up right now. >> thank you, scott. hi, everyone welcome to "the exchange." i'm kelly everybody vaps here's what's ahead this hour. a two-front trade war. the administration threatening europe with tariffs as it continues its battle with china. we'll look at the consequences and the street's new bet, one major dow stock is getting a lot of love in the past week ahead of a major event we'll tell you the name and the details. apple is doing something it hasn't done in eight years, walmart is rolling out more robots and a socially minded s&p 500 is coming. that's all ahead in rapid fire we begin with the markets as scott said, bo

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