Skip to main content

tv   Fast Money Halftime Report  CNBC  November 5, 2014 12:00pm-1:01pm EST

12:00 pm
somebody wrote in in 50 years what taylor swift song is going to be part of the american song book. >> she doesn't dance with snakes. she's not swinging around a pole. that's good for pop music. >> yeah. dow is up 81 and the president speaking this afternoon. let's get to headquarters, wapner and the halftime. >> carl thank you very much. let's meet the starting line. joe terranova. jon and pete najarian, stephen weiss, he is live in denver at the schwabb impact conference. we do begin with a sweeping win for republicans in last night's midterms and what that means for the markets. stocks up today but much of the focus remains on crude oil and
12:01 pm
earnings. keystone, the market likes the news. dow up 80 points. 94 out of the s&p 500 today. nike dr. pepper, johnson & johnson. procter & gamble. >> it's interesting. people are saying well the republicans are coming in and historically it doesn't necessarily mean it is positive for economy, positive for the markets. why can't it be? when you think markets have been strong over the last five years. what is the one thing that we're all discouraged about? tepid economic growth. some change in washington, d.c. could lift the economy, have the economy join along the capital market asset appreciation. i think it is good overall. i don't see why it can't be. >> steve weiss, what is the word at impact? >> this is an amazing event. about 7,000 people here and everybody is in the business. and i would say that generally there is optimism here.
12:02 pm
saunders spoke last night, was optimistic. some speaking about washington politics. and some of the myths are just myths and you can see a good market. i don't want to sound euphoric here because we still have europe and china but you have in terms of the u.s. a potential gold locks setting. goldilocks setting. i like retail as well. so there are things that you can buy and i think you can move forward. we'll watch of course for thursday although i it will be a non event when draghi speaks again. but overall it is an optimistic tone here. >> pete you like healthcare too. >> i do. part of the thing, it's two fold.
12:03 pm
the main focus forward in the first hundred days is about the u.s. corporate tax rate. 39.1%. something they are all going to try to hammer to a lower level. and who are the folks with the biggest exposure? pfizer, merck. and technology, apple and microsoft. the names on that list. and the top ten you are going to find a lot of pharma and technology names. i think those will do very well. and that is going to be great for the u.s. economy. >> joe, quickly, keystone, the majority whip was on cnbc saying this first week the bill is going to be on the president's desk. >> there are a lot of things that potentially are going to be positive for the economy. repatriation of capital could be. all these initiatives don't have to hit. >> more than potentially. it ee's absolutely. >> yeah. and all these initiatives don't have to become actual policy it
12:04 pm
comes at the e perfect time. the perfect storm. we've all talked about the economy really not performing the way it's supposed to. now i think you have the chance for the economy to really accelerate domestically. how about this stat? the dow has not had a preelection year loss since 1939. so talking about 2015 historically setting up pretty darn well. >> and you heard paul richards last week just pounding the table for how bullish he was going forward. as far as the election itself judge, joe and peter wright, we're going to see excel. buying cnq, canadian national resources. i'd shy away from the tar sands like sun core because of what's happening with the price of crude oil and the pressure saudis have putin. but i think excel is a play.
12:05 pm
medical devices. the med tronnic, striker, zimmer. many of these stocks will benefit in the short-term and for the long-term. these are good plays regardless, judge. but some of the changeover here will be positive for them. and then pete, whenever he's talking about financial, whether it's goldman sachs, wells fargo, morgan stanley, there could be some legislation that moves through the system finally now that impacts these guys as well. and lastly, judge, apple. they did a multibillion dollar offering overseas. we all owe one of the reasons they did it is repatriation issue. if they don't have to do it that's very positive for stocks in this country. >> many sectors are going to be impact by these election results. dom chu is a look at the wall with what to watch. >> the focus right now is the kbengsal wisdom is there are a handful that really stand to benefit if the republican
12:06 pm
congress can get some policy done. the banks, so far this year you can see they are up about 9 and a half percent. maybe some argue already pricing in some of the move for the republican controlled congress. but maybe loosening regulationes on the certain parts of the banking environment. maybe not a full appeal of the dodd-frank. but certain a focus down the line. another we were just talking about again banks a big focus but also healthcare. these guys are up 22%. one of the best performing sectores on the s&p 500, arguably pricing in a gop victory through the course of the year. but still these guys not just drug makers but also medical devices and other parts will stand to benefit. insurance companies as well. and then lastly let's talk about the big one everyone is saying. of course energy is going to be a huge focus because that is vis-a-vis what's been happening with oil prices. so will investors actually use this as the bottom for the
12:07 pm
energy market? that remains to be seen. but still. if the keystone excel pipeline gets done, more drilling starts to happen, you could see some companies really benefit especially in oil services and of course domestic exploration and production. >> dom, thanks. >> dom talks about the potential here and a positive one for the banking industry. think if we're able to unlock some of the animal spirits in the financials by lessening some of the regulations they have right now and not having to put so much cash on the balance sheets? how about a year where m and a is up 60 or 70%. how about the financials finally participating in the coming years. not having the concerns of going out and getting the growth, making acquisitions, in particular in the regional banks. >> let's drill down more on the energy trade. john dowd is live from boston. john, welcome to the show.
12:08 pm
>> nice to speak the w you. >> on the heels of the election. lots of talk with keystone, oil prices, gas and the frackers. what is your outlook. >> the commodities markets have come under pressure and made valuations around the entire sector more attractive. i have investments in the lower cost companies that can grow and profit in this current environment. >> a lot of pain can going to continue for some or not. and is that in some respects a good time to get in? >> so there is a lot of pain in the industry right now. the u.s. e and p companies they had $13 a barrel a profit in the second quarter and oil price are down about $27 since then. so the profitability is low. when i look at the integrated oil companies most cannot cover dividends can the capital spending budgets in the current environment. and most opec countries are not
12:09 pm
able to fund their budgets in the current environment. so there is pain across the board. >> pardon me i'm sorry for interrupting you. >> excuse me -- >> i thought you finished with that thought. eog is one of the stocks you like. it is on the move today. it is in one of our own traders playbooks. speak to it and then i'll get you involved with a trader who i'm sure has some questions for you. >> there are three or four basins in the u.s. accounting for all the production growth. the permian the bakken and the eagle ford. they have been the first at discovering how to use the oil shales in order grow production aggressively. they have been reducing costs on a per barrel basis and have been one of the most successful. >> joe. >> there seems to be this fear john within the energy equity investment space that the saudis will continue to make this push to fortify and maintain their
12:10 pm
market share by driving prices lower. do you suspect a lot of domestic energy players number one will allow to it occur and really are that sensitivity to where it will negatively impact their earnings going forward if the saudis continue with it. >> i think there is a lot of pressure across the board in the energy markets today. do i think it is going to get worse and worse? i don't. i think nothing focuses companies and organizations like lower commodity prices. and in the past when the profitability per barrel has been this low it's actually been an opportunity. currently we've been oversupplied for the past six or seven months on crude. but that was a current environment. if you take 25 dollars off the price you benefit not only supply we should see supply growth slow not just in the u.s. but overseas and also acts a stimulus to demand. >> another name you like.
12:11 pm
ana darco. >> they own one of the dominant positions. they also have a good splargs track record and have been able to monetize the successes. they have a group of kpen companies that have the knowledge or skills to grow in the current environment when most of the industry does not. >> do you have a view on where you think the floor is for wti? >> no. i've been doing this for a long time. and i think -- i don't -- i'm not investing based on my view of where the commodity price are going to in the near term. i'm investing in which companies have cost advantages relative to their peers and who can actually grow through it. when i look at the history, go back just a couple years, everybody was bearish on gas in 2010. but selling all the gas
12:12 pm
companies wasn't the right call. the right call taet at the time was to own the companies growing production aggressively because they outperformed not only energy but the market. the companies growing production profitably and in essence driving down the commodity prices are poised to win and outperform. >> thanks for coming on john. >> thank you. >> john dowd. >> those are great comments and the analogy to the gas market really is -- really is compelling. because that is wha exactly what's occurred. too many are focussing on the spot price of oil. but that relative to the xle are completely different. quarterly to date xle down 5%. spot oil down 14. and what you are seeing going on is passive investors are holding onto the energy equities. and the hedge fund community are helding on to energy equities
12:13 pm
and using future oil to hedge against and derivatives to hedge. so the folks at home, don't touch the energy equities and don't make decisions based on the spot rice of oil. >> can i give you -- >> quickly weiss. >> here is the difference. natural gas, it is not a global commodity. whereas crude is. so that could come into the equation somehow. i don't think is slam dunk that we see the old highs. this does feel like a floor though. >> president obama set the make a statement on the outcome of the midterm elections. that is coming at 2:50 eastern today. and we'll bring you that and the instant analysis as it happens. gaen ne again a news conference. not just a statement. coming up peters thiel joins us in a first on cnbc interview with his reaction to the
12:14 pm
elections. tim cook coming out and the global payment wars. and golden opportunity? and three stocks overvalued right now. look out because some have been favorites on this desk. we've back after this just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review. i'd just gotten married. i was right out of school. my family's all military. you don't know what to expect. then suddenly you're there...
12:15 pm
in another world. i did my job. you do your best. i remember the faces... how everything mattered... so much more. my buddies... my country... everything... and everyone i loved... back home. ♪ [ male announcer ] for all who've served and all who serve, we can never thank them enough. ♪ femalsave hundreds on beautyrest and posturepedic. choose $300 in free gifts with tempur-pedic. even choose 48 months interest-free financing on the new tempur-choice.
12:16 pm
the triple choice sale ends tuesday, veterans day.
12:17 pm
kelly has breaking news right now. >> david einhorn out with with an interesting letter. overall down 3.9% for the quarter but up year to date. he characterized it as the frustrating quarter in which apple was really the only material winner. the other thing is amazon has been added to the bubble basket of short stocks. he is very bearish on the company. and some of the loosing positions einhorn experienced included a short position in u.s. steel. a short position in mallen krot. and a long position in siecivio. and long investments, cmx and emc. he closed a number of positions. keurig short.
12:18 pm
closed out. joy short. lu lu and under armor. so a lot of news here out of green light capital and sounds as if they are struggling with the market as a lot of us in the current environment. >> it's the amazon things that stands out here. and correct me if i'm wrong, i think it was a couple years ago we were at robinhood and during one of his presentations he talked about amazon. people tried to make the assumption he was short when i don't believe he was at that time. do you remember that. >> i do. and let me give you color from the letter. he says the rebate disappointment is notable and for years the story has been amazon is not profitable because it is growing so fast. now growth is slowing but it is leading to even groeters losses h. e thinks amazon is just one of the many stocks for this narrative will ultimately prove
12:19 pm
false. >> interesting stuff. thanks kate kelly. >> i brought amazon on that big disappointment, judge. i still hold it here. i don't think the time to sell one of these big retailers and this is the largest internet retailer in the world even including alibaba. i think this one trades up into black friday. i'll probably hold it right up till then. >> may 2012 he called amazon a riddle. excellent job not shorting it. i shorted it from time to time this year. i da. i wouldn't buy it. i think the time will finally come where the street is going to punish amazon for not being able to accelerate the growth story and margins. >> don't you think that doc? >> they already did. that is in the rear view mirror. i this think they already did the punishment judge. the reason is stock is down on the year is because of that.
12:20 pm
>> why is it going to turn around. >> into black friday? it is a retail play. >> didn't they in their most recent earnings give a somewhat disappoint outlook for the holiday season. >> yes. and how much is the stock up from those lows. traded down to 268 now it is over 300. i bought it in the 70s, but come on. it's been a nice pop to the upside here. and everybody kept saying well 295, this is line in the sand. it got back over that. i think it will get a little pressure from mr. einhorn and his comments but nonetheless i'm in call spreads and i continue to hold them. >> i wouldn't do anything here on amazon. i'd let it drift up into the amazon and then i'd sell and get out. i think the story is over. >> those are strong words. over? really? amazon over? >> i think people are tired. well look, i don't think the
12:21 pm
company is over. i think it is over as a stock until they decide okay we're going show something for shareholders. the wimpy strategy just isn't working, give me a hamburger today i'll pay you back next week. that's over. right keith? >> you're right weiss also always. >> thank you. >> i'm going to move on. some of the tech world's biggest names meeting in dublin for the annual tech conference. peters thiel whose a member of our cnbc top 25 list of the icons in leaders. and joins us on a cnbc interview. remind we do have a bit of a delay. peter, what's your view of amazon? my guys on the desk are right in the midst of this debate that peter einhorn is short that name. >> well it is always, amazon is a super hard company to evaluate
12:22 pm
in general. and it's certainly has had a extraordinary history if you look bam. it ipos about half a billion dollars in 97. i think i went up to 118 in early 2000. down $4. and up to 300 or something today. sites been an extraordinary history. on the long-term i would not bet against bezos. he's one of the great entrepreneurs off our time. and i think great companies shouldn't be profitable right away. they should have ideas and ways to invest in the future. and amazon has lots of ideas on how to keep investing its money. i think it could be very cash flow positive but it chooses to instead in the future. and i think that is both a good thing for the world and a good thing for amazon as a business. >> so you are saying that you think wall street and investors
12:23 pm
are unfairly punishing jeff bezos and the company as it stands now for amount of money they are spending and the lack of profitability? >> well it is -- it's -- you know i'm not going to evaluate it on where the price of the stock is right now. but i do think wall street is always too biased towards short-term profitability and biased against long-term growth. because people in wall street this, you know, daily, weekly quarterly cycle and can't think ahead more than a few quarters at a time. so they are always biased that way. >> this topic, the election results in the united states and other things. but i want to hit this valuation issue. because certainly the valuation of several technology companies and business models of some are hotly debated as we sit here today. you have been critical, yourself, of uber.
12:24 pm
you are an investor i believe in lyft. and you have had a little bit of a back and forth with bill gurley out in silicon valley as well. gurley was on cnbc a couple days ago. i want to play what he said about uber and its valuation. and then i'd like you to react to it if you would on the other side. let's listen and react. >> it is the fastest growing company we've ever been involved with. and i think that is why when the company was, you know, put in front after of a large number of investors that you ended up with the evaluation that it did. >> do you want to react? are you being unfair do you think in the way that you are judging uber? >> well i would say that -- i would say gurley is being quite circum speculastanc circumspect in the tape you played. he said people were frenzied and bidding it up. so yeah they have had a
12:25 pm
phenomenal run. 18 billion is a high number. it is possibly worth that much. the context i've argued is that i think air bnb is worth more. it is a very competitive space. and you have questions about what its long-term margins will. where airbnb is undervalued relative to uber. the point here is i don't think we have a bubble in technology. nothing like the late '90s. you only get bubbles when the public is involved. and these are private debates among private investors. because the companies have learned not to go public. ipos happen very late. because you get punished by wall street focuses too much on quarterly earnings cycle. so the great tech companies have learned to stay private. the public is not involved and
12:26 pm
there is no bubble because that only happens when the public is involved. >> segue to another question related to technology and silk val. given your stature in the area. would you give context on what you think it means that tim cook came out publicly last week? >> it's clearly very significant. it was a very courageous move on his part. i think it is always good for gay people to come out. but i it's also understandable why people might not choose to do so. i applaud the move and think it was a very courageous move on his part. and obviously apple is the biggest tech company in the world, period. so this is very significant. >> and let me finish by asking you to respond or react as it were to the elections last night here. the sweeping wins by the
12:27 pm
republicans taking control of the senate. you have called the u.s. government, you have said it's in the middle ages in your words when it comes to technology and science. i'm just wondering if you think this election, any in the near future will help move science and technology at least into the renaissance and out of the middle ages. >> you know, i'm probably somewhat more sthympathetic to e republicans because i care a lot more about the fiscal issues but as far as technology they are in the dark ages. so from the technological perspective government has become a reactionary force in our society. it is basically something that slows down technology, that regulates it and that stops it from happening. if i was spending too much time in d.c. i would be endlessly frustrated by the gridlock, how nothing ever gets done.
12:28 pm
how problems are never solved. so i spend my focus in silicon valley where i think people are working on solving real problems and working on building a the better future. >> peter we're grateful for your time today. thanks so much for coming on. >> thanks. >> coming up. don't tell the najarians to sell intel. >> the pc is done. the pc is done. they have been telling us forever. it's going higher. >> well, will a down grady have the brothers bagging their chips? and with stocks at all time highs t it is you have to the find bargains. so three stocks that are just two expensive. and gold down and silver down in the last months. is it final the golden opportunity buy? all that and more next. take a closer look at your fidelity green line
12:29 pm
and you'll see just how much it has to offer, especially if you're thinking of moving an old 401(k) to a fidelity ira. it gives you a wide range of investment options... and the free help you need to make sure your investments fit your goals -- and what you're really investing for. tap into the full power of your fidelity green line. call today and we'll make it easy to move that old 401(k) to a fidelity rollover ira.
12:30 pm
12:31 pm
welcome back. the rising dollar doing a number on precious metals. gold slumping to a 4 and a half
12:32 pm
year low. jackie at the nymex with more. >> this is an incredible move for gold. we've seen it dropping 100 dollars in just the last two weeks alone. jeff, scott mentioned the strong dollar. that is one issue. is it the only issue? or also talk of deflation of problem here. >> it is a long way from 1920. about 800 dollars lower. and inflation concerns turn into deflation realization. but the big thing yesterday on the futures now show is the technical level. 1185 we broke that. but you have to realize buying here could be a good opportunity as cost of production comes into play. >> it could be a good opportunity to buy but last year goldman put out a report calling for gold to go 1050 by the end of this year. some are saying we may get there. >> i think may made a great call
12:33 pm
last year. and this is a bear market. brutal. we've tactically traded gold in and out this year. a couple weeks ago, dumpbd all. i don't own a single ounce. i think you wait till 1050. yeah some production issues but this is a bear market. sell the rally, wait for the dips. really wait. and i think that 1050 level makes sense before you even think about it here. >> gold is a little bit of an expensive doorstop. head to futuresnow.cnbc.com. >> is this a golden opportunity. >> i think you are going to get a flush in here. and the question is if it happens at 1050 or even a thousand. i looked across the board looking for where some of those big areas where people are short puts and so forth.
12:34 pm
i think that could be a clue as to where people might have to get out. people that will be basically flushed out by the margin clerks when they come over and say hey feed more cash to this position. i think that could happen and that is the time when brian could be right as far as being patient. you wait for that flush to get in. >> years ago everyone used to talk about emerging market central banks being the buyer of last resort for gold. and here it is down to 1150. where are thoese emerging markets. and they are not going to be there right now where yen so so week. so if you are interested in gold i think you have to be even more interested in silver which has declined more and gives you a little more industrial strength edge to it. >> yesterday we had a spirited debate about kors and jon was buying. find out if he's sticking with it and then three names we talk
12:35 pm
about a lot here that our next guest says are overvalued. the dean of valuation after the break. when change is in the air you see things in a whole new way.
12:36 pm
it's in this spirit that ing u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.
12:37 pm
female announcer: tuesdaduring sleep train's triple choice sale. for a limited time, you can choose to save hundreds on beautyrest and posturepedic mattress sets. or choose $300 in free gifts with sleep train's most popular tempur-pedic mattresses. you can even choose 48 months interest-free financing on the new tempur-choice, with head-to-toe customization. the triple choice sale ends tuesday, veterans day. ♪ sleep train ♪ your ticket to a better night's sleep ♪ get four years interest free financing bulldog: mattress discounters veterans day sale ends tuesday. on the entire tempur-pedic cloud collection!
12:38 pm
and, get a queen size serta mattress and box spring set for just $397. ♪ mattress discounters gopro, amazon, twitter. three stocks often at the forefront of the debate over whether some tech valuations are simply too rich. the next guest is the dean of valuation. nyu, finance professor. joining us live from new york city. professor, welcome back immaterial's been a while. >> thank you. glad to be back. >> thank you. i want to jump over amazon was we just talked about it a lot. however, gopro. that's where i want to go. tell us why you think that stock is overvalued. >> i'll start by saying i think gopro might be the greatest trade on the face of the earth but as an investment it is
12:39 pm
wanting. the way i see it it is a company that makes cameras for hyperactive oversharers and there are quite a few out there. but it's priced as the social media company in terms of revenue and margins and that is where i think it falls short. it has promise but not as much promise as the market thinks. >> the one thing i took away from their earnings the other day is how much views they have, how many minutes people are watching and some of those numbers that are approaching and/or over 100% year over year, some of these gains. i hear people always saying this is not a media company. but they are a media company. isn't that really the catalyst going forward is sales of these incredibly unique cameras that are nothing like a phone which people compare it to all the time but the idea that this is a company that has content and distribution through youtube and other sources? >>. >> and that is the way they present themselves. in fact when i read the annual port report i was surprised how much time they spent on that focus and i think that is the
12:40 pm
optionalty. if you are buying for the media opportunities that is what you're looking for, is how much money can they eventually make from the media opportunities that come out of gopro. i'm not convinced that the revenue opportunities exist on that. but i could be hopelessly long wrong on that. >> you short the name are you suggesting people short the name. >> no. you have to separate the invest prosecuting the trade. this it is stock where mood and momentum is what's driving the stock and that pricing game is completely out of control. so even if you believe it's overvalued, don't go crazy and sell short. that is a recipe for disaster. >> i just wanted to clarify that. twitter, tell us why you think that company is overvalued. >> maybe it is my inherent bias but when twitter went public it had a lot of potential in online
12:41 pm
advertising that hadn't figured out how to make money. after five earnings reports i don't any change. facebook has changed and evolved as a company. with twitter i don't get the same sense of the company evolving. and that is what makes me pessimist about the future. because this space gets more crowded every day. and have unless the company can start to figure ways to make money i'm not convinced it is worth even the low 40s which it's trading at. >> when you hear people talk about twitter, yes they question the valuation. they say it is a dominate franchise in terms of what it is. it is a great brand. they question the management, maybe, more than they do the business model. you are saying question the business model equally as much as the management. >> and i think the management has to come one the business models. so when people complain about the management i think that is
12:42 pm
what they are saying. is you have lots of users. you have to figure out more creative ways in which you can take advantage of those users. and i don't see that yet at twitter. >> professor great to have you back. we'll talk to you soon. >> nyu finance professor. steve weiss i take you you would agree? >> i do. and one of the things we're hearing out here, they are looking for anthony noto to perhaps become the next ceo. while he was a great banker at goldman he's never run a company. so i agree with the professor a hundred percent. i don't think you short though. because the momentum can turn quickly. >> are you disagrees on gopro? >> analysis is a human natuge v. every category they have, they have growth. and the one thing we didn't even touch on is how about international. they have 80% annual in the
12:43 pm
asian markets there is a lot of reasons to look and say this is not the end. >> trader blitz now. earnings central edition. four trades on four stocks making news today. trip advisers tumbling after week guidance joe. >> i think it's a mid 70s stock. i think expedia is much bigger play. >> doc, kors. >> kors, i like the stock yesterday. >> fighting back now. >> you were getting just a deal yesterday. again, everything they sell judge, that they are buying in dollars is made in pakistan, vietnam, bangladesh. you name it. the strong dollar makes those more attractive purchases and easier for them to print more money to the bottom line. this was a gift and that's why i bought. >> steve weiss, nu skin. >> bad week for these
12:44 pm
multilayered companies. first herbalife now these guys. they are the first to blame the dollar. be thank you dollar wasn't that strong. also weak sales. i essaystay away and never like. >> pete fire eye. >> not been my fire. there are other security names in the business you can be with that already have earnings. they don't have earnings. they disappointed on the outlook. yes growth but they still haven't been any way to find any profits. that is a mimajor issues. go anywhere else in the security space. intel's got mcafee. we'll talk about them later. >> ro you on the fire eye? 5:00 p.m. fast money. dave dewalt. exclusive interview this morning. our call here today is in the chips. plus a double dose of najarian means we not only have some
12:45 pm
unusual activity in the airline industry, we also have a trade update. and did you know they were the co-founders of option monster? >> what? who? >> that's right. so far 9% drop in applied materials, is it time to take the money and run? you're driving along,
12:46 pm
having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car plus depreciation. call and for drivers with accident forgiveness, liberty mutual won't raise your rates
12:47 pm
due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. there was no question she reminds you every day. but your erectile dysfunction-that could be a question of blood flow. cialis for daily use helps you be ready anytime the moment is right. you can be more confident in your ability to be ready. and the same cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache.
12:48 pm
to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. all right. coming up at the top of the hour on power lunch, three sectors that could break out from the republican sweep. we'll break them down and take a look at stocks you may want to audit to your portfolio. marijuana voters sparking up the elections. where we stand on pot in america right now. and you can join the conversation. should marijuana be legalized in all 50 states? you could go to cnbc.com and vote. gold and silver getting crushed. gold closer to the all important
12:49 pm
$1,000 level. and how low and should you get in? all that at 1:00. >> thanks. when something unusual happens the najarians find and it try to make money on it. and pete and jon are the co-founders of the option monster. unbelievable. and the after spotting unusual activity, the a trade has worked in your favorite. >> and now you exit. the move in the stock itself, this is a stock like many in fact the material sector. they are the material maker. but when you look at this company, this absolute move to the uptds upside. the buying started in here. it was a huge move. not the options. the options moved to upside in incredible way. we were out the end of last week. >> jon what are you seeing today. >> jet blue. big beneficiary of the lower
12:50 pm
fossil fuel. and the fact they have been a laggard in the pace space is run of the reasons people are piling in. january 13 calls, the open interest was about 2200. so far they have traded almost 12,000 those calls. it is a big bet as these go up from the 35 cent level. that is almost a double already. i think there is a lot of upside with jet blue. i will probably be holding these for about three or four weeks. right now i'm in the stock and not the options. there is a feeding frenzy on these so i haven't gotten the options yet. >> what about you? >> i am in just about every other airline right now. american, delta, united. yesterday monster buying. i got a spread to the upside. >> you think the bulls are trying to ride this one in jet blue are wrong? >> i don't. i think they have potential to
12:51 pm
move to the upside. i don't want to overpay for options. if it comes down to a level i think is more tolerable than right now i will jump in and try to ride it to the upside. intel up 30%. is it time to sell the stock? the analyst that is stopping it with a downgrade is up next. later don't miss a first on cnbc interview with ceo of johnson & johnson on "street signs "today.
12:52 pm
12:53 pm
12:54 pm
welcome back. our call of the day is intel. stacy, welcome back. >> good to be here. >> why do you think this stock is set up in your words for a nasty correction? >> so there has been worries that intel has been overshipping the market for a while. these were crystallized after last earnings where they had unit growth up 15% year over year versus the pc market that has been kind of flattish. the story is kind of nuances. i am a little worried about what they have done but the way they are setting themselves up. >> you are our resident intel bull. you got a problem with this call? >> i remain a bull on this.
12:55 pm
i followed something different than stacy is talking about. when you are talking about this with the pc shipments. how about what we are hearing that it is stronger and not dying the death that everybody thought? wouldn't that remain a positive for intel going forward? >> i have never been a believer that the pc market is necessarily dead. i don't think it is a growth market but i don't think it is dead. this call is around what intel i think is shipping in the wake of the way the pc market is. if you take a look at what they have done and we have this laid out in the piece, some of the upside they showed in the first half, they are slaughtering at this point. some of it was channel build in the first half. that is actually normal. historically the first half channel builds are followed up by second half channel drains. the results suggest they don't continue to build channel inventory. the guidance suggests they
12:56 pm
continue to build inventory. i think they are looking at a second half. that is something we haven't seen in years and years. usually when this does happen they are followed by corrections. >> thanks so much for taking the time. >> thank you, guys. >> quick break, final trades on the other side. [ male announcer ] eligible for medicare?
12:57 pm
that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they could save you in out-of-pocket medical costs. call today to request a free decision guide. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide.
12:58 pm
♪ in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.
12:59 pm
welcome back, a programming note, the president set to hold a news conference today on the outcome of the mid term elections at 2:50 eastern time. we will bring you that live and the instant analysis as it happens. give me a quick comment on tesla after the bell today. let's comment. >> with oil prices going down you can send the twitter controversy now, who needs tessera. >> steve weiss what is your
1:00 pm
final trade and quick tesla comment. >> quote john macro buy it long. >> morgan stanley the stock to go to. >> cnq, bought it. the president 2:50 and "power lunch" begins now. "halftime" is over. "power lunch" and the second half of the trading day start right now. >> thank you very much. a shake up on capitol hill. stocks are in the green. who stands to win right now? three sectors that could get a major boost from the republican suite. marijuana voters lighting up the elections last night. we will talk about where americans stand right now on the issue of pot. you can join the conversation, as well. should marijuana be legalized in all 50 states. go to cnbc.com/vote and weigh in. come on over here. the commodities crushed. gold and sve

15 Views

info Stream Only

Uploaded by TV Archive on