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tv   Fast Money Halftime Report  CNBC  August 20, 2019 12:00pm-1:00pm EDT

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didn't give us more more detail. tjx posted weaker growth in home goods being the weakest segment there. back over to you guys. >> what a day in your space, courtney great stuff. getting us all up to speed dow is down 55 to the judge >> carl, thanks. scott wapner, front and center apple comeback shares surging over the past two weeks. is a new high possible it's 12 noon this is "the halftime report." >> apple making big moves. the stock up 10% in two weeks. your next trade is straight ahead. home depot, kohl's and tjx missing the mark on sales. is the american consumer running out of steam beyond meat shares sizzling on an upgrade. is it time to jump back in after the recent sell-off? the investment committee is ready to go.
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"the halftime report" starts right now. welcome. it's good to have you with us on this tuesday our investment committee, joe terra nova, johnna jerian and marian bartell let's begin with apple second best performer in the dow. stock topping $213 this just has been quite a comeback, jim. >> we had that big sell-off the day that the latest tweet on tariffs came out about 2 1/2 weeks ago steadily climbing black. a barometer for the market, a little bit of give from president trump on china negotiations first there was the delay of the tariffs, then there was the talking with the apple ceo tim cook on friday where he said he made a believable case and a discussion he had with the ceos of three major banks so apple as
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with the market i think is perceiving that maybe there is some recognition from this president that the tariffs have done what they could do and any more will hurt and maybe the market thinks we'll get a sooner resolution. >> we're only 20 bucks away from an all-time high >> yeah -- >> who would have thought that a couple weeks ago. >> or last week when we were in the midst of 800-point sell-offs. it's made a strong comeback. apple, of course, has done exceedingly well here and we talked about how after that initial whack that jim just identified, it came back over 200 and held that even throughout ten days of pretty volatile times so people obviously betting that whether it's the september 10th event which is basically a lot of apple folks talking about what white -- might be happening then, but i think there are also
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1.4 billion devices out herehest from not just that they're getting into the streaming game for video and so forth, they are already one of the big guys in the room as far as -- >> let me -- i agree with that let me tell you when you're selling apple, here's who you're selling it two one of three people, the spy, which is under accumulation every single day, the freedom annapolis retirement vehicle for almost -- warren buffett is the other person you're probably selling to best of luck or the company. the company has, i don't know, 130 billion, 140 billion amount allocated to buy back hair own stock over the next few years and they retire that stock so as the stock goes back to an all-time high does not meet an all-time high new valuation. not issuing new shares they're shrinking the float so actually it can make new highs in price without having a more and more egregious valuation even if you don't agree that
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there will be growth for the company, which they continue to find ways to grow, so you could sell to buffett or sell back to the company as they obliterate that share that you used to own or you could sell to the buyers of the spy who will continue through 401(k), et cetera, you're welcome to do that but that is literally what you're doing when you get out of the stock because quote/unquote supplier issues in china or tariffs or whatever you want to do. >> sit next to somebody who got out of apple. >> i've gotten out of apple multiple times in the last couple of years. on the other side i'm long apple in hedge funds but forget that i'll own a lot of poor trading in apple to josh's point, let's say you bought it in 2014 and didn't have the bad behavior in the stock that i did you just held the stock. you're a double in the price of the stock. >> right. >> if you bought 100 shares, those 100 shares are now 125 shares. >> why the heck do you try to trade it. >> well, as i said before, i own the bad behavior in apple. >> i get it. >> whatever. >> i've made some mistakes in
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trading apple but let's not make the focus of why i screwed up. >> its not about you but trading versus owning it. >> it's so popularized i think a lot of people, it's in the headlines all the time there is a belief just a couple of weeks ago it fell because people believed it would be weaponized in the trade dispute but i think underneath it this buyback, this capital allocation story, which i tried to emphasize at the end of last quarter. >> as you usually do like the mr. buyback. >> apple is the greatest capital allocation story they have reduced the size of share cash from 200 billion, they've done a dead offering of 100 billion. the last four years they've gone from buying back 90 billion a year to 400 billion. that's an unbelievable buyback story. >> you know who should get credit and doesn't is tim cook has done a great job and on design, johnny ive, but carl icahn really forced tim cook to
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get some religion about shrinking the float and that took place at a time when apple and many other technology giants were reticent about buybacks and really capital allocation is very far from what they were thinking about on a day-to-day basis, always thinking about innovation and product cycles and all of that makes sense for them to think about but i do think that icahn desks a lot of credit for starting that process and now that that process has started and not really a factor anymore, what tim cook and the gang have learned is that there are going to be years where apple doesn't have the hottest, new phone coming out at the right time to satisfy shareholders but they could buy in 5% of the float and make up for that and they've done it and i think it's worked really, really well to get you through those gaps whens there isn't a hot, new apple product coming out which i think we can agree is the period we are right now. >> are we 233, right 233 and change is the all-time high is that now where we're headed >> that's only 10% higher, so,
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yes, you know, barring a severe deterioration in u.s. -- >> if the market keeps going up. >> exactly what makes both apple and the market go down is a severe deterioration in the u.s./china relationship but the other force propelling it higher and there are more forcing it higher is you'll enter the back third of the year and taxable investors will look at this up 40%, 44% year to date, i don't want to dell this and take a tax when i feel comfortable, i can at least bridge night 2020. it's early to talk about that phenomenon but it's not very early. just a little bit early. >> let's bring in steve weiss who says he added significantly to his apple position today. steve, you there >> i'm here. i'm here so i did own apple -- >> you went in again today. >> yeah, yeah, yeah, so i did own it, you know, i've been critical of tim cook in terms of his cap allocation.
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>> we don't even listen to that anymore. >> i'll give you five reasons for it i like the fact tim cook continues to have the year ear e president. he transported some production to china but yet he still has trump's ear and trump spoke positively about the arguments he made in the competitive disadvantage that apple would suffer to samsung if they continue with the tariffs. that's number one. one of my major concerns about apple or criticisms is that historically they've been arrogant in their launch of competing technologies such as functionality on phones versus the competition's so in other words they relied to unseat the competition when they came out with camera that samsung came out before i'm noticing a decided change in the strategy because they recently become more aggressive. they bought intel's modem business and that will allow them to get their 5g launch quicker. 5g had been a concern.
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we didn't know when they would launch 5g phones and i think 5g will be the biggest upgrade cycle that we've seen in many, many iterations of the iiphone and that will give you comfort anybody who looks at slowing sales of iphones won't be concerned about it so that's one thing. i also had concerns about the budget that they were putting towards streaming. it was going to be a billion dollars. now if reports are true coming out of europe, that's now 6 billion. >> yeah, they did seem to be disputing at least to an nbc reporter that number but your point is well taken. it's more than what you expected, i get it what about the notion of what josh said earlier, that, you know, it's sort of sell this thing at your peril either selling it back to the company, selling it to buffett, you know, or one other place and there's -- this is a stock you own, you don't trade
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>> well, when you sell a stock, it's always where you put the capital. better idea, apple is not always the best performing stock however i agree. it's a steady stock, always has a place in the portfolio and there are better things happening to it. let me give you another point, two more points here which i think are important, they came out in line with the aggressiveness we didn't know what the pricing was going to be. they traditionally don't reveal pricing until the product comes out. saw it with the new service. they released it today apparently and the importance of that is they're not waiting to unseat something from the competition they're going to head-to-head with disney. if you take a look at a long-term chart of the company, of their stock, you'll see that they've always outperformed down markets and they've always outperformed the indices we make a big deal of it being up since the bottom in january,
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but if you look at the gap, it's closing divergence and this can go again to not just a -- forget about the multiple but to an outperform consistently versus the averages i think that's very important. the gap was tremendous so i do see do like the fact that they' buying back shares because that increases your earnings per growth so for all those reasons i added to significantly it's one of the stocks i feel better about in a very turbulent market. >> one of your bigger if not the biggest position now >> the biggest position is actually the smh >> okay. >> but ibn has pared it back a bit. >> weiss, thanks for calling in. we'll see you back on the desk that's steve weiss nice to see you. >> nice to see you. >> was waiting to get through the apple specific conversations so i could turn to you on more broadly and we can pick up right where steve weiss was talking about. tech
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the smh. how do you feel about tech right here >> love tech longer term major, major secularable in tech and semiconductors so apple is part of tech we talked about it when our analyst upgrated the stock and what was surprising to us a while ago is how many investors were still under weight the stock so it's not an over-owned company and i think that's probably if i was going to add to your story on the desk is that it's not a crowded stock. so there's a lot of room for investors to buy. >> what about the notion of sort of growth tech versus quote/unquote quality tech >> well, we're all about quality in a volatile market we think quality is very important, so right now for our clients who would be talking about quality tech, but any kind
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of tech over the next three, five, ten years we think is going to be a major performer within the market. >> you guys agree? >> mary anne, you do a good job at talking about why price affects some of the narratives we hear in the market and i happen to believe that's true. i also think that a lot of people would benefit from looking at technical analysis from other markets to better understand this one. one thing we seem to get tangled up with is the idea there is a narrow group of stocks leading the market and apple being one of them, of course, over the last ten years but isn't that common like doesn't every bull market have its leadership names and they can continue to be leaders for a really, really long time? shouldn't people be armed with that before they judge, oh, it's just ten stocks driving all the gains? >> well, first of all, thank you very much for the compliment. >> well, of course. >> i really, really appreciate it as a technician, you always look
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at the breadth to see how strong the market is. what i'm surprised is that the breadth of this market actually is very strong even with the lack of leadership in small cap and so, yes, we talk about a few leaders but really in this market it's not a few leaders. we're not that far away from the highs recently in the advanced decline line and that stocks only for the new york stock exchange now, as a market ages and if your breadth actually narrows, it is a warning sign, but it's not timely it could be up to a year before you actually see a negative market impact but there's nothing wrong with the breadth in this market. >> where are you overall, though, on the market? your note soups a little more cautious than maybe you sound here >> well, tactically we are cautious, in fact, we said there was a roadblock to the tariffs and proceed with caution and you're entering the most volatile period which is september and part of october.
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so since we don't have a solid trade negotiation and all year we've been getting a lot of volatility we still see risk that volatility continues through september and october. now, with that said, our strategist on the global side, his indicators are indicating that you can rally because there's so much cash on the sidelines, but we would still be a little cautious over the next few months, but we still maintain our year end target of 2900 now, that's not a new high within the marketplace that's another reason why we're a little bit more cautious we think it will be a little more challenging to get to new highs but also if you do get to new highs to sustain new highs. >> mary ann, what do you think of the 52-week highs yesterday and today and it seems like that group in particular is just running and is there an economic story to tell there, or like how should we think about it >> i can say that's surprising
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with lumber as low as it is but that's good for the builders their cost structure goes down. >> the consumer signal, what should we look at that and say. >> we look at the consumer at the bank level so we actually look at our credit card data and our credit card data has been positive on the consumer we're not seeing through the data coming through the bank any weakness in the consumer i know people are questioning whether or not the consumer is going to slow down but the evidence so far with the retail data coming out and through our internal data, we're not seeing a weak consumer and also always point out that the consumers generally are the last to know anything negative. >> i agree. >> we're not seeing anything negative yet. >> the question is whether we're going to or not. you can read anything through the earnings we got today with depot, kohl's and tjx. rev is below the estimate. kohl's revenue down, comps were a bigger decline than expected
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tjx, sales growth, 2%, slowest in six quarters. is that now do we need to start asking about cracks for the consumers? >> i don't think so. i think you need to ask, continuing cracks in the retail sector whether it's the hard line like home depot and lowe's or soft line like department stores because across the board they're saying they can't raise prices in response to tariffs so obviously there's this debate about who is paying the tariffs, one of the parties that is clearly paying the tariffs are the profit margins of retailers, whether it's home depot's or macy's and i think what the market is saying today when you see home depot up is that that recognition is coming through to the administration as it considers what to do about tariffs going forward. >> not an actual debate of who is paying the tariffs. >> i'm being generous. >> everyone actually knows. >> i'm being generous. >> home depot, we talked about it yesterday being important and the expectation that analysts on the street were concerned about what they were going to get. when you look at the results, they were not as bad as what was
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feared and that's one of the reasons rye home depot is pressing towards an all-time high we talked about lumber prices. >> ceo talks about it, as well. >> that's a low margin profile for the business. >> but also talks about just the impact of tariffs and the continued talk about trade affecting consumer behavior. >> so in his comments he seemed to have some uncertainty what the direction or trajectory of that was going to be and i think that's consistent with what most people are expecting here because the reality is who knows where this is going to go over the coming months but when you go back to the business itself, margins for home depot were better than expected and a lot of the fear that was pre-eminent coming into this, i think, it was dismissed by the report. not as bad as people thought. >> the ceo also said that demand accelerated at home depot even though the numbers weren't spectacular and like john deere,
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it was a miss and the guidance was not positive and yet the stock is up $10. talked about it last week, said this is one to watch this week i'm happy that it's got this $9.50, $10 jump but t.j. maxx got talked about i was more optimistic than what the numbers show what is going on with t.j. maxx the consumer is strong enough they're not getting -- the margins they have right now are not as big because the other retailers aren't dumping stuff on to t.j. maxx at a big discount but having to pay close story a fair value rather than a deep discount like when consumers are not buying those other goods somewhere else and that's one of the things they talked about was the margin had compressed substantially over at t.j. maxx. >> you feel like the consumer is going to hold up >> so far, i mean, the whole issue is the volatility in the market is when trump added the additional tariffs, and has
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since rolled back a good portion of them trying to hope for a good holiday but what i would add about retail, what i've always noticed about retail, it is a very, very seasonal sector and normally going into the holiday season, they tend to ramp up in price, but you tend to want to take advantage of that and take some profits in the month of november. >> yep. >> and then buy them back again in the spring, so, again, a lot of seasonality to that. >> is the credit card data you guys follow indicating any specific trends within retail for investors who want to be tactical and be in the right areas where consumers are strongly spending? >> we don't break it down actually that granularly but look at the overall consumer spending and look at autos and stuff like that. we don't have a specific. >> good idea, right? >> great idea. i'll take split get some interns. >> i've got that tomorrow i'll give you that. >> okay. >> i'll give you that breakdown
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tomorrow because we have that data. >> people using the investitude credit card. >> no, through battle fin and this alternative data source but will bring it to you. >> let's stay on trades for a second as it relates not to the consumer but boeing. you bought boeing. >> bought some more boeing you'll remember i bought it two months ago, maybe three months ago. >> why >> look, it went down pretty hard in response to the latest tariffs about 2 1/2 weeks ago. if i look at a one-month chart it's down about 11.5% and s&p down 2.2% during that same frame. the 737 issue is not a structural issue, a software issue, i think they reconfirm they'll have it back in the air by the end of the year when the news comes out it's certified the stock is going to rocket and if i liked it at 341, i love it at 331 where i'm picking up some more positioning for the return of the 737 max.
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>> so you're paying almost 40 times earnings for boeing trailing 12 months and i know there are charges but like a company that's going through the amount of crises that this company is going through, has gone through and may continue to go through until it's resolved, shouldn't it be like 12 times earnings you're not getting any -- i know the stock prices come down but you're not getting a cheap enough stock necessarily to compensate you for all of the stuff that still has to be squared away. >> so -- >> or do i have that wrong >> how long do they persist? you will be right if they don't get the 7347 max -- 737 in the by the end of the year. >> are you a seller when that becomes apparent it's going to be way lower. >> i may be. i'm going to stick with my thesis with the facts that i have, granted, they're not all facts. some are opinions but the fact is the company has restated that
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they think they'll have the plane in the year by the end of the year if that fact changes, josh, then i have to re-evaluate the thesis you're saying there are issues there are big issues the stock market is saying they're not going to last. >> if it's apparent that that plane is not back in the air by christmas this is sub-300, right? >> absolutely. >> okay. >> i agree over to dominic chu with a news alert. >> from the justice department, now, cnbc has learned that it is filing a lawsuit to block sabre ho holdings' plan buy-out of farelogix. they help airlines sell tickets to consumers the doj says a combined sabre and farelogix would hurt competition and believes if it is allowed to proceed it would likely result in higher prices and less innovation for air travelers. the deal was announced last november due to close in suss a few days' time but now the u.s.
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government is suing to block it again breaking news, the doj blocking this particular deal. remember, this is a $360 million deal we'll keep an eye on those shares for sabre holdings farelogix is private, scott? we appreciate it thank you very much. that's dom chu jackson hole is about to kick off. where does the fed factor into how you view the market? >> so, we're forecasting that the fed has to continue to lower rates. one can make the argument that the fed is behind the curve. we actually changed our ten-year yield forecast for the end of the year to be 1.25. so we're looking for signific t significantly lower rates sustainable going into the end of the year. >> september, october, december -- >> september -- all of the above. >> interesting because, you know, tony dwyer tweets earlier. he says the whole bull story for our 2020 target is the fed gets
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ahead in caps and rates go back up on a reacceleration of the economy. >> that would be great if we could get a reacceleration and solid trade deal and get some positive -- >> you're saying you think the fed will cut are you doubting whether it will work >> no, we're still forecasting the market could get to 2900, right? so -- and we don't see a recession. so -- but we do feel that the fed has to continue to cut in september and october. we have acknowledged the downside risk to the economy that if the data continues to deteriorate, that we just don't get 25 basis points, that we can get a 50-basis point cut but right now we're at 25 -- >> joe, morgan stanley says more cuts are coming. >> the interesting thing when you think about more cuts coming you think about two things, how
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does it impact s&p companies? they'll do one of two things, increase capex which is forecast to increase around 7% or 8%, we all agree that the peak was last q3 of 2017 but it's the capital allocation story so go back to where we started the show. if you're apple and you see ten-year yields continuing to fall and you see these rate cuts you're going out there and you're buffering any potential negative head wind that you might be getting globally from the china trade tensions with a debt offering and you're going out and aggressively buying more and more stocks and people talk about the put under the market the actual put under the market is the capital allocation story for these s&p companies that are going to be able to go out and do exactly that, debt offering, buyback of stock. >> it's good to see you. mary ann, thanks for being here. here's what else is coming up -- >> announcer: buying beyond
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meat jpmorgan thinks the stock appealing again. the investment committee debates it our call of the day. plus, jon najarian is tracking unusual activity in the options market "the halftime report" with scott wapner and the traders is back in two minutes this cnbc program is responsisp by payden & regal. are we supposed to dance? ♪ boy boy bands without dancing are just ok. get a better than just ok unlimited plan with spotify premium included on america's best network. only from at&t. more for your thing. that's our thing.
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hey, everybody, jim leben that you wi thal my favorite part, send us a question cnbc.com/halftime and we'll answer it on air i can't wait thanks >> announcer: go to cnbc.com/halftime or get us on twitter with the #askhalftime. welcome back, everyone i'm sue herera your cnbc news update. vice president pence chairing the sixth meeting of the national space council he renewed the trump administration's support of nasa and their mission of returning american men and women to the moon and eventually to mars. >> to give nasa the resources they need to accomplish this mission, the president signed into law the agency's largest budget ever and as we speak we're working with congress to add an additional $1.6 billion to support our renewed commitment to human space
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exploration. italy's prime minister conte announcing his resignation after his right wing coalition party led by ssalvini yanked support he's known for his tough stance against migrants. hasbro is going to eliminate plastic from its packaging and begin phasing out elastic bands and shrink wrap and hopes to have a plastic-free packing by the end of 2022. you are up to date that's the news update scott, back to you > appreciate it. thank you, sue beyond meat soaring today. jpmorgan upgrades the stock to overweight that's after the recent pullback 18 on the price target it's a dollar bump from where they were. they say they're going to acquire more customers, duh. they see continued strength in measured nielsen data and the
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valuation has become more attractive maybe that is the number one reason >> sorry, i'm giving you a physical loo-- quizical look >> only 55 times sales why are you being such a prude >> it's six times -- >> what threshold are you looking at >> six times sales and 50 times earnings in 2024 five years from now and i eat the product. the beyond sausage is great. i don't know where you're going to get -- i just can't buy a stock based on predicting the next five years' worth of revenue and earnings >> let me take the other side and i'm not long on the stock and i respect that but let me phrase it to you this way -- >> you weren't buying roku for the next ten minutes. >> that's the counterargument. it's momentum. >> no, it's not momentum it's what if you have this zen moment sitting in style hovering
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above a pillow and recognize, wait, maybe the stock market is not principally concerned with what earnings will be next year, maybe that's not what drives the best performing stocks in the market. >> not at all. >> no, long-term, but what if we said, what if just hear me out, netflix went up 18,000% before anyone even uttered the phrase price earnings ratio in relation to it so what if forget that we can't know the numbers, what if they do acquire customers who jpmorgan and scott's point at a very rapid clip and people decide, you know what, that's worth more to me than whatever they earned this quarter or last quarter and i am willing to continue to buy this equity on the belief that at some point there will be a lot of earnings as a result of all these -- >> you make an elegant conversation and argument. i'm not buying it but you make an elegant argument. i have to have some -- >> i'm not buying it either. >> no i know you're not.
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but, hey, i bought roku. >> what's the difference >> look, okay, let's make it simple roku is momentum. >> that was momentum >> right now beyond meat doesn't have momentum. >> ki just point it out? it doesn't have momentum. >> it had negative momentum. >> that has stopped so quantitative models, once the price begins to deteriorate out it goes to the downside like they go to the upside. who is the marginal buyer? >> what are the options guys doing with this stock. >> there is one big trade that happened a few weeks ago when the stock was 130. i know it sounds like a few weeks ago -- it was calls and they traded out as the thing went through 200 for the second time. there hasn't been a return of that action yet about dell frisco's -- not del frisco but dell taco. when you get a jpmorgan upgrade or any of these qsrs coming up
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with this, when josh's shake shack gets out that have -- >> i can't get the del frisco beyond meat porterhouse for 4 out of my head. >> although it's overvalued on conventional metrics no one would argue the opposite of that, of course, it's really not that big it's $9 billion. and that's, a, not a big stock period in the s&p and in the foodland especially like giant consumer goods companies are way bigger so i feel like, of course, it's overvalued, but there's a very, very high likelihood that jon will be right. this will trade up and down based on massive deals with fast food chains, for example, or steak houses or international distribution and the people that are sitting there saying, i'm waiting for it to be 18 times earnings may never get a crack at it if it works. >> all the risk that entails. >> the collapse in beef prices when the margins go through the roof >> i was being sarcastic
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next time i'll sound a bell. >> is that what's in this stuff is beets >> sometimes with you you can't tell all right? >> i thought it was -- >> i thought it was like cauliflower. >> protein and -- actually tastes great tastes great up next jon is tracking the options market with two new trades in the reit space and get your sector check before we take a break. let's take a look. discretionary and tech in the green. the s&p is down 7 1/3. "halftime" is back after this. i saved hundreds when i switched
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try skechers wide fit shoes. >> announcer: only on futuresnow.cnbc.com sponsored by cme group. welcome back we have unusual activity there it is. del taco, 6%. >> exactly, scott. look at that jump just on the news about beyond meat and the beyond meat taco whomp! got to love that. >> make somebody go to del taco, is that if chipotle is being fumigated next door. who is the customer? >> i'm zipping it. >> don't take the bait, doc. >> i won't take it. >> get the unusual activity. >> what i did take, take a look at crown castle, cci, the stock
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crown castle, a reit, 145 bucks a share up 55 cents. somebody bets that it's going a lot higher they buy a lot of those 145 calls. they ended up selling some 150s against it, as well but take a look at this the october 145 calls, so they have plenty of time to be right on this one. and instead of 2500 now it's pushing towards 5,000 of those have traded today, again, as it went up they sold the 150s against it so it's a $5 bull call spread or call vertical second trade, take a look at what's going on in keysight, scott. keysight technology up a buck right now. they are also smart traders in this one doing a callvertical spread they were buying the 87.50 calls in particular in this one out in october, the 87.50 and 90 calls and bought the 92 calls and they sold short dated september calls against it
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as you can see, about 2500 of these rapid-fire bought in this particular name and like i say as it was rallying they were selling the shorter dated september calls against it so they've got time working in their favor because they own the longer dated calls and if the stock creeps up too around that 90 level which is only about a buck and a half higher than where it is right now, this one will really pay off for these guys i'm in both of these two trades. i'll probably be in them in the neighborhood of a month to two months. >> good stuff. come on back over. >> del taco is takeover speculation all over the tape since 9:00 a.m seriously. did you know that? all right. come on over we'll talk about that. judge. >> we will also answer your questions on honeywell, verizon, winnebago and more straight ahead. you can still have time to reach us go to cnbc.com/halfpipe. tweet us as llnde' d that next. rentes. muy diferentes. (vo) verizon knows everyone in your family is different.
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>> announcer: home depot shares jumping today after reporting better than expected profits in the second quarter according to our partners at kensho, since 2010 the stock has seen similar moves on just 12 other occasions. two weeks later home depot tends
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to outperform its competitor lowe's trading positively 83% of the time for more, go to cnbc.com/kensho. we're back we're going to answer questions in a second. the comments that you were just making in the break i think are perhaps more important than that at the moment. >> well -- >> your favorite taco place is what >> no, i was saying i never went to del taco and then jon was talking about these regional chains he grew up in the 1920s, what was it? taco john's. >> i've never been to queue don -- >> dostorres much smaller scale. >> ranch one, that was terrible. >> i don't remember that >> that was new york city. >> del taco just popped above 12 buck. >> unusual call activity. >> we could look at del taco
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again. >> it is the apple of mexican fast food i would say today. just phenomenal. look at this >> there it is, it's continuing to spike all right. let's answer questions now joe from louisville. what is going on with honeywell? it was nonstop but then it did -- they didn't finish the thought. >> a great tweet >> maybe it's the breaks i don't know >> in the last year honeywell is up 13% against the industrials which are basically down modestly, up 26% year to date. he is correct that the appreciation has moderated since july 3rd it appears it would have topped out temporarily at 178 i use the word temporarily down 4% since then i believe this is a company that the industrial space continues to be a leader and investors will pay a premium for it and
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you will see pause refresh to an appreciation once again. >> josh, from you j.b. in florida, what does josh think about verizon given 5g >> this is a stock i own and i almost own it thinking more about it as though it's a bond i know it's not a bond but the way i think about it this is a 4.24 yield getting on a company trading 14 times earnings and people say it's not growing that fast actually growth here is pretty good and between the dividend and retiring shares and the 5g network which should lead to more organic growth, i think it's a really good play and the way to think about verizon, don't look at daily charts, grow up look at a weekly, look at it over ten years, this was a $20 stock ten years ago. it's tripled plus paying you all of that yield so you've made way more than a triple if you just held on to it. i think that's how you want to think about verizon. we have rapidly gone to a place in this country where there
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aren't many of these types of high yield, high quality names that are so dom nashts inant inr industry. >> one from debra lee. jimbo, what are your thoughts about winnebago and thor >> good to hear from you we follow each other on twitter. still like winnebago but down a little bit since the tariff tweet comes out. looking at year to date charts four successive higher highs and higher lows and the chart is clearly going higher but it's susceptible to what the tradewinds blow. you know i think they'll clear by the year end and winnebago goes higher with it. i prefer it much more over thor. just over the last two years it's had better results than thor but i like the stock. >> want to say hi to your other follower or what >> really, really, really? >> i mean, come on you went there that was a little -- >> i'm trying to be cordial with one of my followers. you got to take me down for that. >> i couldn't resist
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doc, from peter in new jersey. what do you think of enphase energy >> on fire this one is one we spoke of back in mid-july, scott, for unusual activity stock was 20 bucks then. now it's 34. it's basically providing solar activity, solar power for homeowners rather than just businesses like a lot of folks focused on i don't know whether it's take-out candidate or what but this is a huge move in a month and a half love the activity. >> thanks as always for the can he, as well. coming up, energy stocks among the worst performers of the day. so the futures now crew will take a look at that trade next. first, though, joe what is that really him >> that's me, judge. is that john or pete, if so, where is the other one >> i can't tell. >> i mean, where do they hide you, around the corner >> do you have time? you got to get back to the gym what is with those guys?
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anyway, apple spending 6 billion on its tv content. will it mean more cord cutting or streaming services set to feel the pain from increased competition as well? and airbnb for your stuff failes and that's all coming up in today's rapid fire and domino's innovation garage in an exclusive inrvteiew with mitch allison. "halftime report" is back after this led usaa, it was that voice asking me, "is your daughter ok?" that's where i felt relief. we're the rivera family and we plan to be with usaa for life. see how much you can save with usaa insurance.
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welcome back to the "halftime oreport. i'm seema. let's bring the traders into the discussion scott and jim. scott, starting with you, what do you make of today's turn around and can it last if the u.s. dollars continues to strengthen >> i think the interesting thing it bounced off unchanged 30 minutes ago and gave back 30 cents in a hurry first time we're going to be lower in three days. obviously what secretary state pompeo said is not going to help >> if oil continues on this trajectory, how long will it take energy stocks to rebound? >> the ones highly correlated.
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crude trade $57.50 to me this will be broken to the upside i don't think that is what is going to happen. right where it is right now and made lower highs for the last month. i think it's going lower >> scott and jim, thank you. that does it for us, stay tuned for our live show at the top of the hour we're joined by david rosenberg. eaer. nd much more, 1:00 p.m stn. "halftime report" back with your final trades after this. olio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.
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is it to carry cargo... greatness of an suv? or to carry on a legacy? its show of strength... or its sign of intelligence? in crossing harsh terrain... or breaking new ground? this is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedes-benz summer event, going on now. lease the gla 250 suv for just $329 a month with credit toward your first month's payment at the mercedes-benz summer event. mercedes-benz. the best or nothing.
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on why the tide is turping ctr the worst s&p performing seor this year go to tradingnation.cnbc.comeed n gives you more.
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was in an accident. when i called usaa, it was that voice asking me, "is your daughter ok?" that's where i felt relief. we're the rivera family and we plan to be with usaa for life. see how much you can save with usaa insurance. final trades joey, you're up first. >> s&p 500 company within 1% of its five-year high
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>> if you find yourself in c cheyenne, taco johns >> other than that >> twitter >> consellation brands >> atvi. >> good stuff. thanks for watching, "the exchange" with joe kernen begins right now. >> thank you, scott. welcome to "the exchange." i'm joe kernen in for kelly evans. here is what is ahead, fear itself as in nothing to fear but. that is what one market strategist says is the biggest risk to the markets. he'll make his case. secretary of state mike pompeo says we need to regulate currencies just like we do all other financial transactions i heard it right from secretary pompeo's mouth could that be a positive for the crypto world an exclusive wit

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