tv Fast Money Halftime Report CNBC July 16, 2019 12:00pm-1:00pm EDT
we'll see what cxs says. >> hbo, 137 emmy nominations, the most for a network ever. "game of thrones," 32. a record for a single show in one year i guess they're back on top. >> i guess going out with a bang, i guess >> let's get to sully in the half >> carl and morgan, thank you very much. carl, spectacular documentary last night hi, everybody. i'm brian sullivan in for scott today. your top trade, we are tracking the earnings movers. it's all about the earnings season we heard from the banks. now big tech is on deck. >> the earnings parade kicks into high gear with several big name financials reporting. is the sector due to break higher >> one part of the sector is lagging. we're talking about the potential for a chip surge and why one top wall street firm just went all in on facebook
the halftime report starts right now. >> welcome, everybody. it's great to have you with us on this tuesday. we have a spectacular investment committee today as well. yeah joe taranova, john and pete, kevin o'leary, cnbc contributor, guitar player and youtube chef star we'll get to that in a minute. bryn talkington from requisite capital management and jeff killburg of cck financial. thank you very much. all right. let us start now with the financials i think this is one of the sectors with interest rate moves and their relative importance in the markets, have you been happy with the numbers -- goldman, jpms you have seen >> very happy. i'm long jpmorgan, citi, results
from the financial everyone on the desk has done a fantastic job about talking about the potential opportunities. pete and john had unusual activity in the last two weeks or so in the financials. listen, if you could finally get -- kevin disagrees, but if you could get the financials to participate in a market that looks like it's not providing you much alpha opportunity you have the potential source that you never really factored in coming into 2019 am i fully confident in their ability that they're going to participate in the rally no i'm suspicious i own them i'm encouraged by what i saw today, especially from jpmorgan and goldman sachs and from jamie dimon talking about how the consumer is on fire. >> i'm so happy i have been underweight financials for two years. people buy financials because of a reaction they have to own the sector the reflex reaction. the truth is the balance sheets
of these entities have been deteriorating for years. the return on assets is punk, miserable. these things trailed the s&p and will continue to it's simple. the financials today aren't the financials of yesteyear. their margins are terrible their loan books are flat. these poor guys are always going to trail you should avoid them like the plague >> okay. you said a lot as you always do. let's unpack that. >> sure. >> is the fact that the banks aren't the banks of old -- i.e. basically hedge funds that no one knew what they were doing inside a boring lending business, maybe that's a good thing. the earnings may not be as boisterous, big sometimes. but haven't we derisked enough, kevin, where they are worth some money? >> look. all they're worth is utility as a financial infrastructure
service. you make the 2.2% defensiividen. you're going nowhere i get beaten up for talking about financials this way. some of my closest friends work there. i'm glad i don't own your stock. >> we'll get emails in a minute. you see the bottom of the cnbc screen the president making comments about trade saying we are a long way toward a trade deal with china or far from it in other words, there is a long way to go. stocks weakening just a little bit. every time you think we are getting closer on trades, positive comments at the g-20 meeting, now we get a headline with trump saying, maybe we're not close. but the market not reacting as much as we might think does that give you optimism? >> i'm optimistic regardless what we looked at yesterday was the slowest growth in china in 27 years they can talk about a hundred years and how it's always
looking out past this generation and the next generation. xi jinping is smart and he's not going to let it just go away >> 6.2% growth yes, lowest in 27 years. we'd kill to have 6.2% growth. are you surprised the markets aren't reacting more strongly? look at another headline we can put tariffs on another $325 billion in goods. we have heard it before. he's been threatening it for a year are you surprised the market isn't reacting >> this is part of the art of the deal the market has digested that we think we'll get a trade negotiation, hopefully i.p. protection by 2020 i don't think there is an incentive on either side whether it's trump or china. we could start getting meaningful negotiations.
>> they call you or your team and say, i'm worried about the trade war. >> markets were off 9% in december that was more discussion of what's happening at the fed. what's happening with earnings we're confident this will be resolved for before the election. >> we talked about the u.s. dollar you can talk about the banks and other sectors. why i like emerging markets, india, we see the federal reserve all coming together in conjunction, debasing the u.s. dollar that stagnant dollar will help international markets. >> i have to tell you, i'm here listening. one thing that drew me back in was kevin talking about the banks. you realize for instance citi is
up 37% jpmorgan up 17. >> would you rather own s&p and not have banks you would outperform by 17%. >> if you had banks and you're trading them, fortunate to be trading them -- >> hold on, guys i want to combine the two worlds bank earnings and the headlines. cycle it in. in many ways are the goldman sachs, jpms immune from trade? do they care >> i don't believe they are immune they're going to see a cascading effect from the consumer if it can hurt the consumer, absolutely that's what jamie dimon talked about today. he was call your attention in 2007 now he's enthusiastic about what's going on with consumers. >> okay. we have the two headlines. that's all kayla has more in d.c. where are the comments coming from >> the president is holding a cabinet meeting this morning according to reporters who are in the press pool in the room with the president he's making
comments on a broad variety of topics on china he's talking about china's growth and the gdp numbers that ground to a halt that we saw yesterday. he said you read yesterday that china is down substantially. president trump feels emboldened by weakening financial data out of china oh to press the position the other context for this is the fact that the treasury secretary and the u.s. trade representative are expected to have another call this week with their counterparts in china to try to chart a path forward in advance of potential in-person negotiations later this month. this is the president essentially teeing up that conversation that's expected to happen this week and trying to hold china to account here to actually make good on the things it promised. yesterday, larry kudlow said soon you are going to see china announce large scale foreign purchases. today the president is saying, we'll see if they do it. >> it's been tough to keep ahold of the trade headlines
you have done it as well or better than anybody. you have traveled the world with this are these new? is this sort of trump saying what he has said in the past i say that because the stock market hasn't reacted much >> brian, the actual words the president is using are the same. the semantics are different. every time he does it, he tries to saber-rattle to essentially make china feel when they get on the phone with u.s. officials, get to the negotiating table in beijing, in washington, wherever it may be, that the president is still considering some of the harder line tactics, that he hasn't abandoned those that he always has the options in his back pocket >> as we get more, we'll come back on. i don't want to overstate it kayla said it best
certainly we are not trading or reacting on the headlines with a fever pitch like we used to. >> well, that's settled down we understand what's happening bringing the financial earnings and what's happening with the trade war to me is the u.s. has leverage whether it's u.s. policy or with u.s. financials, to kevin's point, if these banks which have been in the penalty box, if you're a bank doing the same thing you were doing ten years ago, that's what's happening overseas deutsche bank and other banks haven't pivoted like jpmorgan. goldman sachs is doing things which has been an underperformer u.s. continues to have leverage. >> they are the ones that need momentum in 2019 citi did a fantastic job on the consumer said.
you asked pete if you could collectively have a conversation about financials and the headlines as it relates to china. in a certain sense, the trading desks for the banks need volatility potentially created by the headlines regarding future $325 billion worth of consumer goods tariffs you can make the argument that it's a positive for the trading -- >> i agree, joe. they don't need volatility necessarily. not to push back mr. wonderful, slash, mr. sexy what's happening in the banks, look at jpmorgan the asset management arm was 2.7 trillion the stock market is up 30% those assets they are managing, the fees they are collecting are growing. every asset management firm out there is bringing in fees to mitigate net interest income conversation. >> if you owned the s&p 500 without the financials you have way outperformed they have been a ball and chain.
>> you're cherrypicking. >> day in -- >> do you know why the balance sheets are terrible. there is no return on assets those poor guys have been squeezed out of existence. we have overregulated them bring back leverage and they'll soar again in the meantime they're on the bottom of the cage. >> you bring back the leverage, you have the risk. you're down 10% and people are carrying file cabinets outside because they no longer trade the instrument they used to trade. >> let the market be the market. frankly, i don't think the government is better at telling what a bank should do with the balance sheet. i prefer to let the market decide. >> i want to let another guy say something else important more breaking news steve liesman has an update on the american economy. >> when it rains it pours. rapid update in. strong retail sales number flat industrial, flat inventories. we are up a tenth to 1.8% for
the second quarter i think the story is there was a slow down but no one told the consumer let's look at who is where here. steven stanley at amherst at 2.8. bank of america at 2.3 the pessimist of the group at 1% for the third quarter we are at 2% forecast. we are settling down to what economists think has trended here i don't know if o'leary is trading a hotter economy than 2% some are worried about a cooler economy. i don't think we can get there, guys, if the consumers don't get the slow down memo brian? >> listen, you saw the retail sales numbers. you can nitpick this or that, but the numbers are positive
10 of the 13 internal groups up nearly double estimates in some cases. next time we see a steve liesman rapid update do you think they'll have to ratchet up the numbers? this is not a 1.8% economy. >> let me tell you something that's not profound. i think it is the essential element here we can do 2% with the consumer being strong with a low unemployment rate, decently growing wages. the next leg up the gdp is the capital spending and business spending number. i don't personally believe -- a lot of economists believe, too, we get there with the trade tariff trade war overhang on the united states. we are maybe leaving half a point. maybe a full point on the table. maybe the president could get 3% without the trade wars it's the executive in the c
suite that's taking a step back here, waiting until the tariff war clears. >> good stuff. steve liesman with a rapid update from chicago. thank you very much. let's stay with the theme. i think it's fair to say that the death of the american shopper due to tariffs has been greatly exaggerated. june retail sales blowing the doors off estimates. nearly everything you can buy maybe except large screen tvs coming in stronger than expected the discretionary and staple sectors are hitting highs. you have positive comments from jpmorgan chase ceo jamie dimon on the strength of the american consumer to the heartland, i was just in wisconsin. >> oh, yeah, you betcha. >> you know how it is. out there on the ake you drive up 94 from chicago to milwaukee or go to the lakes you see trucks everywhere. new cars new boats. >> pulling boats and jet skis. >> mall of america crowd the consumer ignored the memo
that tariffs were supposed to destroy the economy. >> they have not gotten the memo look at lululemon stock. look at the charge to the upside that's a canadian company. but look at target as well you look at t.j. max you walk into these places i'm in costco, home depot, every one of these places every week i don't go once a year every week and the consumer is lined up and the parking lots are packed. >> the cfo at jpmorgan, not just jamie myself, but the cfo said they expect three rate cuts this year to your point, do they overheat? do they? >> that's the fear are they buying all the new boats and new cars on credit that they ultimately won't be able to afford debt to income levels are low. get levels are high, but people are making money so they can afford it.
do you worry that will end eventually that piper and the boat and the polaris, the bill comes due. >> some people stretching out car loans six, seven years. >> nine. >> wow >> the fact that you're going -- >> maybe i'm the only one. >> lower interest rates with the july 31 meeting. we'll see the cut we have been talking about. i'm staying 25 basis points. personally, i think it's a one and done they're going to give us one rate cut here, not three >> you live in the hot bed of houston. no opinion here. just numbers year to date, ethan allen up 21%. walmart up 22% home depot, 26%. tractor supply which pete probably drives to church, 35% best buy, 40% up that's not market that says tariffs are going to destroy the economy. >> i think if you look at texas, houston, dallas, austin, san
antonio the crane is the state bird of texas. you see cranes everywhere across cities tariffs are just part of it. the tariffs hurt the small bike store that has to buy their parts from china because we don't make bike parts anymore. they are having to absorb the costs or pass them on. we'll also see at the end of amazon prime day how strong the consumer is. >> the new cyber monday was yesterday. bryn makes an important point. there are people that are getting pinched by tariffs nobody is saying they're not have you or anybody on the panel heard their family or friends or anybody they have seen in the store say, you know what, m maybele? don't buy that, it's 5% more expensive than it was. >> the euphoria citing for the consumer, if there is euphoria and the consumer has a concern
it's not the tariffs as much as it is potentially housing. and the impact of salt and the fact that house prices have reached a level that somewhat unaffordab unaffordable to me the euphoria is present if we saw house prices continuing to move higher and consumers reaching through leverage to pay the higher price we are not seeing that we see the sensitivity in price. i think that's a good thing. >> i'm excited about trade wars vis-a-vis consumers in china the reason the market doesn't correct every time there is more trump rhetoric regarding the trade war is this. the upside for me as a u.s. investor whether i invest in the s&p or small private companies, if i could litigate in china and i had access to the middle class the way i don't now. when i have a hit product i make in china i get ripped off. the consumer buys the knockout
from the factory i bought to make it for me i want trump to squeeze until i have access to their market and a way to lit game them into the stone age if they cheat me >> google land wind and land rover evoke. exactly like the f-150 a plane that looks just like the 737. >> i know we are talking about trade tariffs. >> how do we make money on the consumer >> that's the etf i like gives you amazon, disney, home depot. ever since trump took it from 10% to 25% the stock market is up 6%. i don't know where the conversation is until we see the rubber meet the road this is all rhetoric stay the course. >> there is another element. stacy said many consumers are buying now because they are
afraid prices are go up down the road >> stocking up >> i would push back on that. >> she's not here to defend herself. >> i'm pushing back on that comment. you brought it up. >> i just read >> technology is back at new highs. take it easy with it, we are watching the first crop of reports from big cap tech netflix and ibm numbers are due out wednesday after the bell microsoft, they are out with earnings thursday, after the bell all right. pete, we'll pull up the trader questions. chris in ohio has a question for you on microsoft he says, i just started actively trading options. i own microsoft as an investment it is now trading at the top of the channel. he's watching the charts should i buy short-term puts on microsoft ahead of earnings? >> no. the reason i would say that is this do i see the potential for a pullback if they push back in any way? absolutely
it's at highs. it could pull back if they disappoint now you have to play the volatility game. as you get closer to earnings, even though we have a 12 and a half vix, implied volatility of specific names going into earnings goes higher microsoft's iv goes higher you sell the 140 calls, 142s, 145s, sell those calls you are still holding onto stock and selling something at a higher level >> sell the upside calls, not the puts. >> citi took the target from 130 to 147 more microsoft. wells from 145 to 160. not that it's written in stone that's the way it's going to play out i think people are optimistic for the right reasons. the subscription revenue and linkedin we don't talk enough about linkedin as part of microsoft. going to be a significant driver for them >> options action is usually
5:30 p.m. on fridays we brought it here early despite technology's recent run back to new all-time highs there is one group that's been a dog for investors lately that's the semiconductors. they have not made new highs since april. the smh etf off 5% since then. trade war taking a toll on the chips. maybe the biggest group to get the smackdown nvidia, intel off 11, 13% in the past three months or so. are you buying these for clients? >> i own nvidia, but china imports more semiconductors and more chips than oil. any slowdown in china will impact the stock price short-term nvidia is a great name it sold off and has come back up you can trade the names. definitely on the headlines of china. long-term i like nvidia.
>> a lot of the chips are made in taiwan. whether there is a difference between taiwan and the mainland, but are we overstating the risk? there will be short-term disruptions but if intel and nvidia can shift production, get a higher margin, not get ripped off down the road, would that be a longer term positive outcome >> they are basically commodities. >> no question the sector is affected by a trade war that will be really intense there is an argument about which technology will be transferred to the u.s nvidia specifically got caught up in the crypto crap. everybody loved the name for a lot of reasons including processing bitcoins. they are suffering they have to sell to the car industry and everything else i like this space. right now you can stay back. you're not missing anything. >> i don't know what processing
means, but do you think crypto mining is dead >> i think crypto is about to have a really hard couple of years. i put bitcoin in that. i love to tell the story about crypto i bought it during a harvard class to show the kids it was not an investment. today it is worth $26. i show it every time i teach kids, this is not an investment. this is garbage. >> i know what that means. if you would have bought that hundred dollars five years ago it would be 5 million today. >> i have to time it >> you have to time everything >> bottom line is there is no inherent value there that's my point. it's going to zero one day when somebody brings a regulated product. i like their chances >> there is a lot to process here we'll get to it. here's what else is coming up on "the halftime report." >> announcer: see why one top
firm went all in on facebook, even as washington ramps up the pressure plus, tspotting unusual options action in two key stocks which way they are likely to move before the break our data parents on what happens to amazon in the month after prime day. the hype moves the stock it's up on average almost 6% bcomeno., go to cn.c/ksh the halftime report is back in two minutes. xfinity mobile is a wireless network
designed to save you money. whether you use your phone to get fit or to find the perfect gift, you'll use less data with a network that automatically connects to millions of wifi hotspots and the best lte everywhere else. so you save hundreds of dollars a year on your wireless bill. xfinity mobile has the best network. best devices. best value. simple. easy. awesome. click, call or visit a store today.
welcome back here is your cnbc news update this hour. a suspect is in custody in greece in the brutal rape-murde of an american scientist on crete. the man confessed to killing the 59-year-old molecular biologist working in germany a four-story building collapsed in mumbai killing at least two. rescuers were looking for others feared trapped in the rubble 15 families ignored evacuation orders to leave the building the space suit worn by neil
armstrong was unveiled at the smithsonian national aerospace museum as part of the 50th anniversary celebration of the moon landing mike pence spoke at the event. >> i expect it is moving for his family and for every american to remember the dangers and the risks at the time that this space suit simply may have been the very last thing that neil armstrong ever wore. >> apparently that suit was 76 pounds that's the cnbc news update this hour now to washington with a news alert. >> earlier this hour at a cabinet meeting president trump told top officials the u.s. has a long way to go with china on trade and he's still considering putting tariffs on the remaining 300 plus billion dollars in goods the u.s. imports from china. he did say it's still a question whether china will be buying
massive amounts of u.s. farm products as the two countries were expected to have negotiated at the g-20. despite the fact that the president's top economic adviser yesterday said that plan was still in the works this, of course, all coming as the officials from the u.s. and china are set to hold phone conversations this week. at least one conversation potentially two ahead of potential in-person negotiations should the negotiations over the phone go well. we'll see if we get a read-out from the calls or that call, singular, depending on the state of affairs between the largest economic powers in the world back to you. >> there is a lot going on today. we thought it would be a sleepy tuesday. it's gotten exciting thank you very much. by the way, the markets, we are seeing a sell. not a big pull-back. dow down to 42 that's the session low we have had a nice rally even gold and crude oil are
down now to even more breaking news speaking of crypto we go to washington what have you got for us >> the senate banking committee wrapped up the hearing on libra. facebook executive david marcus was forced to answer questions not just on the crypto currency but serve as a vessel for lawmaker frustrations over facebook overall -- russian interference, discrimination against conservatives, questions about data breaches and privacy. democratic senator brian shot said facebook should focus on fixing those problems first. >> why are you moving on to a new and challenging thing other than silicon valley which causes you to get bored with your own thing and try to move into a new line of business the question is not would it be great to eliminate credit card fees the question is not should the united states lead in this area. the question is why facebook
>> lawmakers also did address issues such as the overall payment structure, the tax liability of anyone who might hold libra as well as how facebook eventually intends to monetize this. david marcus said making money is not the goal in the short term the goal is to serve users that prompted a very incisive question from john denkennedy. he said, don't you guys have shareholders >> i'm happy to have somebody in congress bring that up thank you very much. despite the political risk and despite the stock's 55% gain this year, evercore say you've got to stay strong and long. they are reiterating the outperform $225 target on facebook calling it their best idea it is your call of the day mr. wonderful, i imagine you've got to love it you are long and strong facebook. >> i have been for years
i spend millions of dollars on facebook each year across over 50 companies we can geo lock the message to different markets at different prices no one else can. others try they're the best it is a fantastic business for entrepreneurs in america you should own it. i have owned it through all the political crapola and noise. it helps american business libra is a great idea. >> you said you hated crypto. >> this isn't crypto they are developing here -- look the reason i hate bitcoin is it doesn't solve any problems unless i'm a criminal, a thief, a drug dealer or i want to get around the rules i don't want to support that i decided the government in canada is going to fail in october. i want to go long canada it's been a horrible market to invest in. they hate usiness. that's going to change i want to buy a canadian index, xiu. i have to convert million into
canadian what a pain that was as every trader tried to clip me. if i had something like this that was regulated i could take $5 million, stick it in the payment system, buy equities there because it is a regulated payment system that would work. let me do it in europe, in china, switzerland give me a common currency and let me go to work. >> here's the thing with facebook bryn owns a company. you're a small company on facebook you have your products the idea, as i understand it, is libra should help you buy something from bryn's company on facebook when they first announced it, i thought it was a paypal clone. jim cramer talked about it maybe it's more ebay where they are trying to help small vendors like all 50 or 100 of kevin's companies trans act. does it add to the value of the company? >> i have missed the rebound on facebook i should have been in it and i have not
kevin's is one of the strongest arguments i have heard for why this actually will work. i like the international connectivity that libra potentially provides that's the important element of this i think about visa, mastercard i think about the tremendous opportunity that both of those companies have been on the investment side. i wonder if libra presents some form of a business risk to visa and mastercard it seems to me transactionally, that's where -- >> does it help -- bryn, how do you put the money on libra do you use visa and master card under the surface to get the transaction working? >> facebook had a thoughtful white paper of how this was going to work. kevin's walk-through is smart. i do think facebook is the stock everyone loves to hate it's hard to own when you have privacy issues
with mark zuckerberg having the power, that continues to irritate congress and overseas government bodies. it's such a powerhouse every dollar of ad media sent on social media websites, facebook captures 84 cents. >> it's also gotten the attention of some in congress. all right. got to move on and hit the trader blitz ready? first up, u.s. steel is rallying today. it's down 57% in the last year you own it. >> i own it. it's in the folio. we have seen a lifeline from president trump. he'll increase the threshold of u.s. infrastructure going from 50% to 95% don't forget about 2016. it was up 319% this is a name that should bounce back. it's been wildly sensitive >> oil and gas energy, the worst performing sector this week the only sector still in correction bryn, you are finding value-specific parts toll roads, kindermorgans.
>> kindermorgan is the poster child for the pipeline industry. they were front and center on confronting from mlp to a c-corp they continue to increase the distribution yield this year it will be about 4.8%. next year, 5.4%. it's a great pure play we love that it's negative it will change over time. >> put a band aid on it. johnson & johnson topping estimates it will raise full-year forecasts but the stock isn't responding. >> everybody hates it. we are going into an election. you always bash health care, promise to cut costs and you never do buy the names at the beginning of the cycle they printed a fantastic quarter and the balance sheet, if i wasn't ready already i would marry the balance sheet. >> all right maybe the single hottest stock that nobody but us is talking about, one of the best performing ipos of the year up
130% that's roku. no one is talking about this company. >> jim rode this thing like a champ and got off. the idea was to stick with this one. buy high, sell higher. this one has just done that. we had unusual activity in this one. they were buying when the stock was under $90 a share. today it's $111. i don't know what stops it. >> it's up 260% in six months. >> yes. >> on the flip side of that, domino's pizza sinking after earnings the stock down what do you think? >> pizza is an essential is that in the essential 40? >> if kevin wasn't going to marry the balance sheet -- >> pizza is an essential component of life. missing today, down 7% sales growth less than the street expected of 4%. i argue and one of the reason i'm not in domino's is patrick doyle is elsewhere that's the issue here.
you're seeing papa john's moving in you're seeing pizza hut moving in, taking away some market share. mcdonald's, better place to be. >> by the way, the burgers, chipotles have done better than the pizza shops. denny's is up 21%. america's diner. all right. slack initiated at keybanc with an overweight rating. >> first of all, you're wrong in terms of -- waffle house is america's breakfast place. >> i'll trump you on that. i have been to all of them >> we have slack talki ing about messenger. i think they are overlooking the competition level they've got now with microsoft this is a company that since they ipo'd it's not done well. slip, slip, slip avoid it another reason to own microsoft instead. >> good stuff there. options bulls are betting on one industrial stock up 6% already
to experience our most advanced safety technology on a full line of vehicles. now, at the lexus golden opportunity sales event. lease the 2019 es 350 for $379 a month, for 36 months, and we'll make your first month's payment. experience amazing. it all started under this buttonwood tree. twenty-four people came together to sign an agreement that created the stock exchange. just the right elements coming together.
it started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. it started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. it started with the markets, bringing together steel and buildings and silicon and medicine and rockets. we believe the possibilities of life and investing are greater when we come together. it's why for eighty years we've connected ideas with technology, data with inspiration, investors with solutions. so that every day together, it all starts again. ♪
all right. welcome back the brothers are seeing unusual options activity in financial, retail and industrial sectors. they have the trades pete >> i'm starting with discovery we haven't seen it in a while. it's made a nice move already. you'll wonder do you really want to be here the best way would be through options. you have a big move in the stock. you're able to buy here. they bought these in a big way you can see the volume it was about 15,000. now they're getting closer to 20,000 only 60 cents was the price they were paying for these. gives you room out to october. i'm in the calls i will hold these for a couple ofs mo one more in the financial world. last week we had morgan stanley and jpmorgan performing well capital one was a little bit higher than this, trading around 90.20 when we saw options
activity here. rolling out of the july 90s up into the -- i think it's the august 92 1/2 call there. they bought about 3,000 of these. they're a little bit more expensive. very close they have the earnings on the 18th if they push a little bit higher, these august 92 calls will move with them. i'm in it for at least a month >> quick one for you, brian. two actually 3m had the big steep fall-off from right there, right around the 215, 220 level all the way down to here it's been clawing its way back not exactly a v-shaped bottom. people have been making money. they are rolling up and buying the august 180 calls like that activity, i bought these. i'll probably be in them two or three weeks. second one, skechers the end of may on this show we talked about the stock when it was 25 bucks a share now you look at it
34 bucks a share it's nearly a ten dollar jump already. they rolled up from the 36 calls which they have just kept rolling up like this they rolled up from the 36 calls in july to the 37 calls in august like that activity, this is a trader who's been right time and time again i'm following them i'll probably be in there two to three weeks. >> jon and pete, thank you very much on deck, we'll take your questions. today they're on mining, jet airplanes, and children's clothes. p.s., you have time to reach us.
welcome back to "halftime. it is that time of the show when traders take your smart questions. david in florida asks, if freeport, the copper miners, a long-term buy? >> good question especially with the china trade skirmish popping up again today we wouldn't be a buyer here. technical strength around 9.70 it's a pure copper play and will be sensitive to china. >> all news stories start with the same three words. >> china, china, china.
>> no. a florida man. >> is children's place a buy >> i believe it is we haven't had unusual activity in the name for almost a year, however. when it came down from about the 115 level, slammed down here to the high slammed down here to the high 80s, low 90s, maybe it's bounced to 96, 97, i like it here >> german town, tennessee, i believe. finally, a question for the killer for john in connecticut lockheed martin, more room to run? >> more room to run. this is an essential name. as we go into an election year, you will see more government spending in defense. we like lockheed martin, lmt >> there you go. likes that can children's place. meantime, natural gas, down more than 4%. seema mody and the futures crew prove they have your trade >> gas futures tumbling in the aftermath of hurricane barry scott and anthony are your trader
what do you make of the big move >> it's getting killed nat gas is getting killed by the outlook, the weather outlook improving. it seems gas is coming down just as forecast high temperatures are coming down. bulls were hoping that electrical generation would pull down the huge surplus we have of nat gas before winter, and that's not going to happen >> anthony, what lechbvels are u watching >> seema, 229. just below the 230 area, i would be a buyer there we're about to hit the hottest weather of the season. there's lot of bad hair days left for this summer i'm going to get long right here >> tune in to our live show at futuresnow.cnbc.com. one bank of america strategist has a warning for the market as stocks sit near all-time highs plus, bitcoin breaking below ,0 nal trades with the halftime desk is coming up. what do you look for when you trade? i want free access to research.
yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. whoa. travis in it made it. it's amazing. oh is that travis's app? it's pretty cool, isn't it? there's two of them. they're multiplying. no, guys, its me. see, i'm real.
i'm real! he thinks he's real. geico. over 75 years of savings and service. check this out the transports, they're on pace for their seventh straight weekly gain. the first time that'shappened in more than two years a few transport companies are set to report this week. anyone got a view on the transports >> transports are incredibly strong canadian pacific, that was a great earnings report. shipments of crude oil, looking good >> what about the airlines every airline is packed. >> we talk about it all the time, how cheap they are, but it doesn't matter like the banks they have started to move to the up side. take a look at ual look at these names. they're moving to the up side. i own ual, but i got something for you in the final trade >> look at these performances. avis budgets i thought uber was supposed to
kill in the rental car sector. they're going to uber. look at this >> it reflects a strong consumer >> especially the airlines, able to raise the prices. i agree with pete. we'll get you a final trade in the airlines soon. >> you keep teasing the final trade. let's get to it. yesterday, we had four seconds today, we have a lot more time let's get around the horn. joe, we'll start with you. >> terms of raising prices, i think jetblue has done a good job of that. on tuesday, july 23rd, they're going to report. the analyst community is not giving the love to jetblue they have to come around seven buys, 12 holds >> give the love to jetblue, not the love to law, which is southwest ticker i like twes as well, but i'll take jetblue >> kevin >> i'm going to take money back to work in small and midcap stocks they trailed, not participated in the rally they're trading at cheaper pes i'm going to use the ousm.
it distills down the 2,000 names in the russell to the ones making money and pay dividends within the russell 2000. about 250 to 300 names >> crab flambe on your cooking channel last night on youtube. >> i'm so proud i have now launched chef wonderful. i'm going back to my roots and cooking. >> because there's not enough. brin talkingten, what is your final trade? >> we like a small midcap name it's a mortgage servicing company. it's a little misunderstood. it's a yield play. a little over 12%. it sold off, the market is projecting three rate cuts we don't necessarily think that's going to happen >> yef >> intel if you look at one of the world's largest chip makers it has been punished by the whole tariff conversation. it has momentum, it's beabove it's gift someday. >> cpe they just did a deal on the
permian. you know all about that. check out this stock i bought it during our show for unusual activity >> i own united airlines i also own in stock and i also own southwest airlines, but i'm soon to add american airlines. >> good stuff, and i'll see you tonight. fast money, 5:00 p.m i'll see you on "power lunch." joe kernen and the exchange begins right now you got that right, brian. thank you. welcome, everybody i'm joe kernen in for kelly evans. president trump firing away at china. the fed and europe once again taking some of the steam out of the market rally his comments and what they could mean for jay powell's next move. >> and the devil's in the details. big banks may be beating estimates, but some are saying that the beats are not quality the quality is strained. that's why we're not seeing a big time rally we will take a look. plus, putting its best foot forward. why saks is betting big that man will want to spend m