tv Fast Money Halftime Report CNBC August 30, 2019 12:00pm-1:01pm EDT
rackets. it's going to be interesting tennis is an industry, they also care about what happens with the tariffs. back to you guys. >> interesting to watch. eric chemi, thank you. that will do it to us on "squawk alley. let's get to scott >> welcome to "halftime report." i'm melissa lee in for scott wapner it was an august to remember it is 12 noon and this is "halftime report." >> announcer: it's been a wild roller coaster ride this month should you stick with the stock that is worked shares of ultimata tanking right now. the butty klain getting a slew of downgrades. should you buy on the drop it's our call of the day the slowing global economy, one of the top concerns for the fed. is another rate cut in the cards? the investment committee is ready to go. "halftime report" starts right now.
great to have you with us ahead of the labor day weekend the final trading day of august, another volatile one, between gains and losses, the dow had been higher earlier in the session, but right now we are just barely higher by 14 points, s&p and nasdaq has turned negative this is the second losing month of 2019. investors got more defensive, utilities, real estate, consumer staples, the only sect aro finances down 5%, energy down eight. so the question going into september is do you stick with what is working? and implicit in that question is, do you remain defensive going into what has historically been a very tough month for the markets? >> it has been a tough month you look at it and say it's
probably going to be volume tiff we're going to see more responses on trade from china. what i'm doing is, yeah, probably more defensive in my style, which is to look for companies generating good cash flows. how do do i know they're returning it to me dividends, maybe they're increasing dividends, but in particular share buybacks. there's a few companies that have talking about stocks like citigroup, gold manning sax, marathon tipetroleum. and particularly some of those names are buying back below book value, which is immediately accretive. so bottom line, yes, defensive, looking for the companies buying babb shares. >> so many unknown as in the month of september we have tariffs going in on $125 billion worth of chinese goods
ecb meeting, a fed meeting later this month, on top of just whatever is happening in the markets. what's your strategy here? >> well, i think first of all, there's a chance that september ends up being quieter. i think people might return to their seats. i think individual thought might come back in, and we won't have as much program trading, but if you're nervous about that and don't want to miss out on those ten days of the market, and you might need income, there are a lot of really great companies trading cheaply, like at&t, enter price products, ibm, chevron, duke energy these are company that is have paid dividends for dozens of years, sometimes 100 years or more even throughout 2008, 2009 are trading at a discount significant to the market multiple so hide out, stay invested, collect? income, you get to stay in there. >> joe >> i think if you look at the month of august, i believe that
the portfolio diversion iskt story taught a valuable lesson to all investors, even the equity investor. you look at it, the s&p we're going to bleed off about 2%, but when you're looking at reits, both higher by 3%, munis up, even high-yield was up so you extrapolate from that the portfolio diverse i was, and the look at the equity, how did you do from the last year when you have over-attraction from the faang names, and they haven't even returned to above their highs. so i agree with what jim and jenny are saying i think on the key side under a slant toward quality, lower beta type of names. i don't know if you want to look at the market and say i want value. value didn't really work well this month energy and financials declined significantly. so i think it goes back to defining in this environment what have been the leaders
i think in september, leaders continue to lead, lag guards continue to lag. >> does that mean that tech, josh brown, doesn't really have as much of a place in your portfolio? if we're looking at tech having the worst august since 2015, along with finances and industrials and materials, and you want to stick with what is working that's correct implies not tech impltsd well, what's working over what time frayed? if we pulled it back and look at that time it over 36 months, you would say i really only want to own tech and consumers discretionary, so i think this arbitrary turning over the calendar is actually not significant for professionals managing money i want to build on something joe said, which i think is the biggest takeaway i decided sometimes after memorial day that i was not going to be one of the people running around with mire hair on fire every time a president sent out a tweet or chinese media put out a counter-point. i want i'm going to have a good
summer, read some books, focus on me. i'm not flipping open my laptop to swing cash back and forth here's what happened if you chose to ignore all the histrionics take a look at a 60/40 portfolio, van guard, total market, stock market, and b & d, by the way, this portfolio is essential free, a couple basis points. if you that you're up 0.68%. that's how you go into labor day. all of the tension, the screaming and yelling and vix spikes, et cetera, et cetera you didn't make a ton of money, but you're up, you're fine it doesn't matter. i think that's been a really good posture to have when we now have elected leaders who can swing the dow jones by 600, 700 points on the tweet. if that's the environment we're in, the answer is not let me guess when and what the next tweet is
the answer is stays diversified. >> do you have that port for the i don't going through the independence of the year >> yes a year ago at this time -- and i looked back, we were going into labor day 2018, and we -- the royal we, we were absolutely certain that rates were going nowhere but higher jamie dimon said look out. it's a year later, now we're say treasury is going to zero percent, if not negative, to fof europe we are almost as sure about that outcome combined with more fed funds rate cuts as a year ago about the exact opposite, the fed has to raise rates, wage growth, near the those extremes probably plays out so you make not look like a genius every day, but overall the risks and rewards will balance out this is a rational course of action in a irrational period of
time >> so i gra he with part of josh and disagree with the other part >> i disagree on the 60/40 it's hard to think about putting any money in bonds, and the inflow the last month, i don't know who is buying bonds i certainly wouldn't want to the part that i totally agree with you on is in a nutshell what you're saying, is control yourself, use discipline, stay focused, tune out the noise. i think especially in this percent where it's so much noise to me it's almost how i felt in 2015 when i was waking up every morning and checking the oil markets. the best thing you can do for your portfolio is focus on long term and keep control of yourself and don't be good et in and out. >> you know that there are
european bond funds where a year ago people would have said how can you buy european bond funds, that are up 30 to 50% year to date, on european sovereign bonds that nobody in a million years said these are these are a buy. capital appreciation in european bond funds has screamed to the up side. you can say you lie it or ecb is manipulating it, you can do the whole dance, but you still have made money in that asset class. >> 30 to 50%. >> specific european bonds. >> wait wait, are you talking about greek bonds? >> all over the continent. >> german bonds? >> bunds didn't have that far to go. >> you're not getting 30% to 50% on -- >> unless you're -- not adjusted for currency, greek bonds trade as a lower nominal yield
you can say it shouldn't be that way. >> josh, josh, i'm going to call negative yields what they should be called. simper augustus that was the name of the most expensive tulip. that's what we have going on anybody buying bonds and negative yields, anybody doing that is saying i'm going to selled bonds to a greater fool than me. not a game i'm ever going to play i think the 60/40 planning is a good one i would make a slight modification, the bonds, why not put it in cash >> i agree. >> the bonds rate is 2%. it's one of the highest rates in the world. >> fine, so buy a money market and lock up -- >> i'm not disagreeing bonds are a spectrum of different maturities. >> this conversation is kind of nuts i'm talking to four people who manage money who pick stocks for a living, who guide people in
choosing their portfolios, and say i do 40 march in cash. 40% in catch when is the last time you said that, jim? temples bonds are definitely more than cash. >> they're not yield -- >> can you go bond ladders -- >> you're not going to get -- hey, josh, i know something about municipal bonds. >> i know you know quite a bit i'm making the point cash is not the only way to earn a yield >> 2%. >> and can you -- >> joe terranova, what are your thoughts >> he, mil how are you? we're talking about 40% exposure to bonds and classifies it as government bonds that's incorrect let's talk about corporate bonds. >> high-yield? >> so if you think about u.s.
equities in the financial industry, the source of opportunity as an investor has been on the debt side verse the equity side. we keep talking about financial equities, a lousy place to be, muted returns. the did i of financial institutions has been the place to be. so let's take the conversation and move it in the right place corporate conditions are in a strong place we are not going to see with lower private sector borrowing costs that suspect -- we suspect they're going to continue to fall you're not going to see a growth in defaults. if you have lenders that are willing to extent maturities, you're okay on the default side. so you're going to have a lot of debt offerings, for s&p 500 companies. i would argue you want to take advantage of that, because you're utilizing it as a diversification tool government bonds, that's pasch much the equation that i don't think belongs in a conversation about 40% exposure in your
portfolio. >> joe, i just do not want 2.5% ten-year corporate debt in a world where i with go by the dvy, the i-shares dividend at 3.5%. >> hold on, here's my point. >> no, no, let's say you bought -- >> interest rates are too low. >> i'm not buying it. >> i'm not selling you bonds you are. 40% bonds. >> oy vay. jim, if you built a portfolio geared toward fixed income, but you incorporated things, to joe's point like investment grade, high-yield cold debt. if you incorporate municipal bonds and then threw in thinned like preferreds, have you seen a chart every the preferred stock university 30%, 40% it's an incredible diversifier it has some equity-like component to it, but you're getting yield there, people are chasing it higher after you
bought it. >> final word to jenny here. >> here's the thing, as your average client, you think, my average client, they want that 40% for the income, for the safety they're not looking -- >> that happens. >> that is not your point. >> you're using it as ballast, dry pow, so when there's an even very like we had in september, you have a. >> use cash instead. >> i agree >> you don't get enough yield pickup to go out ten years you have a flat yield curve. >> c'mon, joe. >> if you built a portfolio -- >> you've done incredibly well so should you abandon every fixed income >> i'm living in the market conditions of today. you're right, a year ago, you're right, that was absolutely the right call when jamie dimon was calling for 4.5. josh, you're absolutely right. >> so today is the wrong call?
>> at is.45 on the ten-year? >> can they not? >> why do you need -- >> is it impossible? >> who cares >> if you're long -- >> it matters. >> certainly low to like ridiculously low why don't we go plaid, to quote "spaceballs". >> commodity trader sitting on the desk sugar and a penny? >> that's what you're investing for? why not buy bitcoins and bury them in your backyard? >> if you're looking at a port follow -- to jenny ace point you're not getting enough currents yield out of a conservative -- we all agree on this premise, but what if we're saying we're looking for total return on this portfolio, which might mean when bills come due for a retiree, they have to sell down in equity or sell down some bonds rather than pull that income out, that is what
financial advisers in this country are doing for millions of people in retirement or close every day. we have no choice, so i appreciate the world that you want to live in where yields are being -- paying you for the real risks you are taking we just don't live in that world today. i don't know that we will. we got to move on. i want to talk about individual winners in mott month of augusts individual stocks. >> yields! >> actually. >> yield curve. >> home depot gaining 7%, veriz verizon, merck coca-cola do you stick with these? jim, boeing, you owned this, they just pushed babb the return of the 737 >> so united did that. >> i'm sorry, yes. >> that's an important distinction. boeing as of last week is still defending early in the fourth quarter they'll be flaying the 737 max. honestly that sounds a business
aggressive, but management keeps say this i have to believe that they're saying that, because they have some inside knowledge of this. if not, they are setting themselves up for a world of trouble in terms of shoulders lawsuit it gets back in there in the fourth quarter, the stock goes back to 400. >> if it doesant >> if it's late fourth quarter, fine if we're talking we don't know, maybe the first quarter of 2020, look out below. >> jennie, in boeing >> no. >> is it too risky >> it's too expensive for me >> i agree. >> i've always said i would look at it if it traded with a market multiple i don't think we're going to get there. let's go walmart joe, you got this one? >> it's interesting. when i look at the list, i see walmart up 4%, verizon up 5%
a lot of the names i have in my equity portfolio are doing exactly what i wanted them to do what's been a chaotic environment. so we had the federal reserve meeting. we felt as though we had the all clear, and then the president gifted us with a bit of thursday afternoon august 1st messaging that the markets did not like. that followed a lot of chaotic communications back and forth. to have names like verizon in your portfolio, and be up 5% month to date. to have mcdonald's in your portfol portfolio, which i have, 4% up, walmart up 4%, i even offer the example -- we had a gentleman on from goldman sachs talking about the faan good s and technology, didn't mention microsoft once microsoft for the month of august is actually higher. so i think it's a mindset where you want a quality focus in your equity portfolio i think that's the environment we're in right now
i think it's the right environment, and i think it goes back to the beta exposure, you want to make sure year exposure is lower than it has been in the 12 months prior. >> but we've seen at least in the retailers a sort of -- we've seen pain overall for the sector, but the once doing well are sort of the discounters. that appeal to values and bargains. >> that's a good point, but there's so many more losers than winners in the spate you can identify the winners you talk about dollar store, but also costco, target, walmart yow side of that, i don't think you touched the space, we're going to talk about ultimata later o. but i mean it's just another story where somebody with brick-and-mortar retail, the stock got ahead of itself, and it's probably not going to get better retail is very, very tricky, only stay with the winners >> the retailer, named
specifically have all figured out a way to keep that you are consumeers in a colloid loop, with omnichannel, with apps, with the types of -- with membership, these are the things that keep somebody continues to choose the store it's very, very different for retailers to do that, so i agree with jim, i think it's been a very tough place i want to pint to verizon. i'm long the name. verizon hit a high of 59 bucks last december. it's been bumping up against that level it's clear resistance, look at a three-year chart this is a stock that i think breaking 59 to the up side maybe because treasury yields go significantly lower, and people keep chasing these names, i don't know what the reason will be, but i'm going to tell you something, this set up, verizon above 59, even with a retest, that would be a clear and present breakout for a major league important company, and
this is the type of stock similar to microsoft, people don't talk about t. people don't give it respect, people don't get excited about it, but it lox phenomenal technically it's set up. you own verizon firms i also own home depot what i see collectively is one commonalty is these are all particularly well-run businesses none were up in august, because the overall industry was up. they were all up on their own merits when i look at home depot i hate the broad brush statement that retail is horrible it's not really true it's just changing home depot is one of the case in points here. it's a phenomenal executer look at walmart, target, they're crushing it, but they're the next 20, 30 years. so i like the list >> by the way, all new time high for stor, this is one of the
best charts, it continues to make new highs, this is the company, if you want exposure to consumers, but you don't want exposure to how a retailer does, this company is buying up their real state and leasing that spa space. this is the name that i think is better than almost. >> on the equity side, i think what i have to try to do is find the tailwind in each of the sectors, what is the tailwind in retail it's the consumer is driven by the opportunity to purchase online s if you have that digital strategy, the online platform and you're able to communication it effectively and have your consumer interacting and purchasing online, you're doing oak the other thick is back to
technology and some of the megatop technologies giving, i go back to mega-cap technology i think what will important now is capital allocation. if you look at the chaos the markets have endured in the month of a, alphabet and apple in the mig acap technology names, they have not seen the type of megacap technologies have i think the focus is because of the capital allocation, a new one on the part of alphabet, and continuing one on the part of apple. i think there is your tailwind. >> alphabet up almost 4% in the week to your point, they have the flexibility to be way better at capital allocation than they have been. you have to think they have to be looking at microsoft, apple, what are these guys doing? >> especially with the quarter they had. >> yeah, they need to. let's talk about the economy weighs on investors.
let's brings in steve liesman with a rapid update. what's new >> you're talking about the consumer we had the consumer spend z spending, our "squawk box" when it happened. up better than expected. that leads to a slight adjust upward to on gdp running at 2.1%, which is, you know, better than sub-2, which is a lot of people were focused on we have two more months of data to go. this is where our tracking forecast from the street are running right now. let's look at who is where he the high side there raced up 0.3, oxford at 2.1 and deutsche bank, they have the bottom there, 1.6. i want to -- it looks like the 2% economy to me when i fold in our estimate
>> the difference between this and the previous economy, while they've both been 2% for, this is true. >> huge, huge. >> i want to point one thing out, 1.1% in the fourth quarter just glares out at my. we had a terrible holiday shopping season last year. >> historically horrible, was it horrible overall for the fourth quarter. we're one month left in the third quarter. sentiment overall, particularly with regard to trade issues ain't that great i'd like to see some improvement as we get into the fourth quarter. i'm starting to get too close to the holiday season we're talking about retail if we have another bad holiday season, you're going to see more swathing in that space. >> i'm more interested in your discussion as far as i know, this weekend
we'll have in barbecue, some beer maybe, and we're going to get a bunch of tariffs you guys are all barbecue and beer does nobody care is it all cool >> no, what has happened, both on the part of the united states and chinese, they have fatigued investors so much with -- >> can't do it anymore >> i couldn't even tell you what actual tariffs we would be expecting this weekend, because there's been such. >> it's a little unclear and the other -- >> eastbound december 15th. >> that's what maybe me think about it. >> which is much more consumer -- there's some consumer goods in the september 1st, including some of the apple products like the wireless headphones, the watch, for instance, but the large part is september 15th. >> nobody really starts thinking -- if you're a retailer
you think about it ready, but the whole christmas idea, if you have this downdraft in ceo confidence along with consumer confidence going into the christmas selling season, it will be a really good time for those two countries to start to make nice. >> see you next friday for the jobs report. i'm going to wait for the tariff on sunday? >> 50 basis points middle of september. >> so relieved i don't play tennis >> thank you steven. here's what's coming up on "halftime report." >> announcer: not so pretty, ultimat ulta with multiple down grades on the stock and our call of the day. pete najarian is tracking the action in the options market. plus the investment committee is ready to answer your questions to reach us, go to cnbc.com/halftime, or tweet us
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giving the impress that parliament may step in to block him. >> i'm afraid that the more our friends and partners think at the back of their minds that brexit could be stop, that the uk could be kicked in by parliament, the less likely they are to give us the deal that we need opponents are asking the nebraska supreme court to reconsider its ruling. that ruling upset state regulators' decision. and jim laval, who escorted president kennedy's assassin moments before he was fatally shot has diedty age of 89. he cease seen with his hand as jack ruby shot him in close range in 1963. that is the cnbc news update melissa, back to you. >> thank you call of the day, shares of
ulta plunging, and slashing outlook for the fiscal year. the disappointing results resulted in a number of -- joe, you had been in this you sold >> yes, i did. if i sound mo rorosei i had woku to a stock down 20%, happy birthday warren, i think he's 88 today. i understand if you're warren buffett, you say i'm long the stock, 28% higher than where it is this morning. i believe in the business, great, let me just buy more, but that's not really the way the world works, or at least my world. so down 28%, a name i've talked about on this show i've mentioned it because of gen-z, i talked about it having momentum i've said all the glowing and positive thing you could say about it
you begin to read the details of the erpgs, you begin to look at analyst -- i stopped reading them, because it doesn't matter. you're in a stock down 28% you get out of the stock that's the right thing to do for all those not in the stock, me selling it here, if you think that's the bottom, congratulations, go ahead and buy it i still think it's a quality company. i still think over the long term it would be good, but influence of that matters -- >> there must be instances when you have a stock that goes down a lot. it's a quality company with a good management team, and you think this is something they can fix. these are broader trends that seem to be our control of ulta they said color cosmetics, a move towards skin care, away from fashion trends, you can't stop that. >> listen, everyone thought that ulta would be a strong play because of instagram how do i know that the next move is people will stop -- >>i a retailer
to be, it's even simpler it's a retailer. >> when you're down 20%, nothing is simple. >> it was a darling, up like 25 times over ten years, but those margins, that growth rate, they're gone they have competition. it is a re tailer and not one of the winners anymore. >> two things, first of all, joe, you harvestsed your losses >> no. we're not going out to dinner this weekend. >> but you're offsetting the gains. still good i think it's more than just a retailer it's a very fashion-based fickle retailer. >> so is abercrombie & fitch. >> but it's not home depot and walmart. it's a retailer, but very specific to fashion trends we have no control over one thing that i think was interesting, estee is 458%
asia-pac. >> and they have more presence in the skincare aspect >> to your point, though, they're 'retailer, and they're basically saying there was a lot of innovation, and now it's kind of died down as part of my -- i'm still using a liquid lip i'm playing along, but they're saying there's been a deceleration and sales have now gone negative. i don't know where the bottom is i'm looking technically, the stock double bottomed, so if you were long and you're like, when does this torture end? we're very far away from where it's bottomed previously i don't know that it ends just because it had a bad day today i'm with joe i'm not running in here. by the way, still traiting 18, 19 times earnings. it's not like what a bargain
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trades on four stocks making news today general motors with the tariffs set to go in effect on sundays, president trump is weighing if on gm's presence saying we gave you a handout, maybe you should move jobs babb. >> the bailout that kept people employed, i don't want to talk about that that was ten years ago i don't know why he thinking this is going to get him votes in the heartland gm is one of the better companies in this country. gm is just fine. >> meantime tesla shares are higher on news that china will exempt tesla cars from its purchase tax josh >> well, look, when you get a positive headline on a name heavily as shorted as tesla, you would expect more than what we're seeing today so we used the term fatigue in
the last block i think there's a ton of fatigue on both sides on the tesla story. the stock does not appear to be as volatile as it used to be. big lots posting a big earnings say at the can successfully navy gatt tariff headwinds. >> i think tariffs are the least of its problems. retailers are lighting up my screen, but the challenge is, envisioning what the companies like ten years from now. i don't see a future for big lots as it is. shares of campbell soup. >> i have a built-in childhood negative bias. >> you don't like tomato soup. >> i used to have to eat it all the time for the labels drive. >> oh, yeah. >> i have a negative bias. the second bias is i think we're a society that wants fresh options, better food we don't want things in a can.
that being said, you have to respect this quarter, the potential is there that the stock can go to 50 to 5. you take the 33 consumers staple s&p 500 companies, this one has the largest short interest, so significant short interest the goldfish, pepperidge farm snack upon unit was good, but i still have a negative buys. >> it's not his cup of noodles. >> that was good. >> not really. next up we'll answer your questions. you can reach us on cnbc.com/halftime or tweet us. "halftime report" is back right after this who's dog is this?
welcome back lots of great questions coming back in, first up, greg asks, how does the safety -- like royal dutch, bp, maybe even schlumberger >> i feel pretty good about them the super-major integrated, which i own and the bps, i think you would have to see a major, major collapse in energy prices likes sub-45 before you even want to have that conversation we're just -- they're safe, they're fine. next up, al from california
wants to know -- what is up with allergan. >> we initially bought abbie, and part -- we like allergan, great products, i would own it i do own it. next question is about beyond meat. is it still overhave a valued. we go to josh, obviously. >> it's a food question, you want me to answer it. >> are you going to grill? >> it's still overvalued guess what, that tells you absolutely nothing we did a couple block posts, it was 40 times sales when it came public at a $50 million valuation. that 40 times sales tells you
absolutely nothing about the fact that it would one day be a trillion dollar company. so this is the type of situation where i think you focus on the growth, you focus on the valuation way later, and by the time the market does fixate on any of those valuation metrics, probably that's when you want to be out if they can keep putting up big growth numbers, i believe the momentum players will look way past >> it goes higher. >> if they can keep doing what they've been doing and announcing deals, if you're short, it's going to go up. >> well said by a gentleman who has his own steak knife in a restaurant. >> i sure do finally jason in wonkers, what happened to mosaic? >> same thing since 2015 it's been a significant down
trend. i know there's notes on the streets i read thinking 2020 there would be a turnaround. there has to be a turnaround but the firc names have been lowy if we could identify -- >> thanks for all the questions, you guys sent out there. options traders are here pete najarian will join us, first kelly on "the exchange." a market may not be on everybody's radar, and whether the good times can last. plus something is happening in global real estate that hasn't happen in seven years and tennis goes high tech. a look at how new technology is changing the game and the company is cashing in on it. that and mar on "the exchange today. the "halftime report" is back right after this it's going to be a week before they can get through on these roads
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on one under the radar name. pete najarian carving out some time in minneapolis. you're away from the fair. you got the unusual activity though pete >> yeah i'm just coming from the fair as a matter of fact, mel. this biotech stock, it's not a name that ever gets talked about. i don't ever remember hearing that exel, very interesting to see this though because it jumped on our screens pretty early in the trade.
buying the october 22 strike calls. about 8,000 of those trading, mel. they were buying them starting in the 45-cent range it's interesting to see just because of the fact that i don't see this name very often i like what i see what's going on here. they actually have a pe. this isn't one of these pie in the sky type names they actually have some profits. so it's a name that somebody seems to think has some movement in the very short term we're talking about just over a month and a half or so i'm in these calls so i'm very, very excited about what might happen there and why are they buying these i got an update as well for you. we talked about fedex just on wednesday. stock was trading about 150 at the time they were buying the september 162.5 calls. they were paying a dollar 50 so you've got to be disciplined in this market, mel. we talk about it all the time. you and i have kicked around this idea of being volatile. i think you have to take what's in front of you. i trimmed almost all my position in fedex today off of that i'm going to hold onto a couple
left but i just really like what we're seeing out there but you've got to stay nimble. you can not be in this market expecting every day is going to continue to the upside >> speaking of staying nimble, pete, what's the best thing you ate at the state fair? >> i had the greatest thing. it's called a dilly dog, and it's something that's so interesting to me because the dilly dog is a dill pickle, they hollow it out, they put a sausage in there, they batter it up and deep fry this thing it is the most outstanding thing i had. i felt like i had josh next to me when i was eating this thing because i swear to you, was so good and i'm thinking, josh, where are you, man, you ought to be with me. >> dilly dogs for all. pete, thank you, great to see you. pete najarian minneapolis. straight ahead your trades on a few of the earnings, slick slack and lululemon. "halftime" is back in two. ame.
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let's get for some of the earnings on deck for next week slack is out lululemon on thursday. slack, you own this one. >> slack is not what you'd call an earnings story per se i own the stock. i'm actually hoping they,quote/unquote, disappoint the street if it gets a two handle i'll be buying more of it. this is a very long-term investment for me. i don't think the valuation when it came public was reasonable. i'm dwlad it's fallen. i hope it falls a little bit further. i love a reset of expectations
on the first earnings report i don't dislike that so that's what i am looking for currently. >> let's go to lululemon, joe. >> online was up 60% on thursday that's obviously been the story. calvin mcdonald has done just a fantastic job in transitioning things the concern here if there is any would be on profit margins there was a shift in terms of shipping from air freight to ground that has to do with some of the tariffs. if profit margins are not what the street expected, then you can expect a fallback. but i am in this stock >> is this the retailer you like >> no. just because of price. and, look, you can lambase for that but we just had a conversation about ulta, and then hit an air pocket of considerable size. i'm not saying that's what's going to happen with lululemon what i am saying is trade's about 35 times earnings. it's up 50% on the year. if you're in this stock or you're thinking of buying it today, what are you looking for? what sort of outsized results are you looking for that's going to propel it even higher
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listen, i know financials are not exciting, but that's what i call a dilly dog [ laughter ] >> and on that note, have a great labor day weekend, everybody. that does if for us on the "halftime report." don't go anywhere. "the exchange" begins right now. >> thanks, melissa hi, everybody. here is what's ahead despite the tweets, the tariffs and the recession worries, the dow and s&p are actually on space for their best weekly gains right now since june we will help you get your portfolio set up for september as august draws to a close plus, the president taking aim again at general motors today tweeting about their made in chin kra strategy we will do a fact check and see why autos are being targeted yet again. we will look at one area of the market that is so popular right now that the pace of demand is break records. what it is and how you can play it if you should but we begin with today's markets and seema mody is here with those numbers >> the last trading day of the month