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tv   Fast Money Halftime Report  CNBC  November 11, 2015 12:00pm-1:01pm EST

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going through retail today. we mentioned nike. it's followed quickly behind by wal-mart. heats it for squawk alley. ♪ welcome to the halftime report. i'm michelle caruso correra. we have joan, josh, john, and pete. the most famous armenians in america, except for the kardashians. >> shopping spree plus alibaba versus amazon. which on-line retail giant offers more bang for your buck right now? the great rate debate. with will the fed make a move, and will it rattle the markets. black rock's rick reader joins with us his take. first, though, we focus on
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retail. >> that drag, it seems to be something i think what terry lundgren was on today, he made it sound like it's much more of an industry wide situation. maybe it is. we need to still hear from a few of the other big retailers throughout. we need to heard from nordstrom's and from folks on the did hes count side as well, like tjx. we'll get that in the next couple of days, and i think that will be a better tell. quite frankly, right now you're looking at a reaction, the cascading reaction, right now, of basically all retail sales say, all right, things aren't so great. this is pushing to the down side. there's competition on the e-commerce. we all know about that. >> how is that working out for you? >> not so swell.
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in fact, michelle, the seasonality seems to be mainly pointing towards the e-commerce sites that pete just mentioned. in particular take a look at amazon today. yes, i know they've got an upgrade. take a look at how they have performed over the past several weeks. >> they're not seeing the drivers or the weather cooperating in terms of getting colder fast enough for people to switch over to thick coats that will keep them warm and so forth. without those sorts of things, you're not really going to get this final push, michelle, until we get to black friday. by then i think -- >> everything will be on sale. >> well -- >> deep discount. >> much of it will be. again, mr. lundgren said exactly that.
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>> metabolism or -- >> column a and column b. thank you, joe. what i want to call -- >> go ahead. >> focus. focus. >> take a look at the two best performing sectors of the year on a global basis. not just u.s. stocks. they are consumer discretionary up 9.6% year-to-date and consumer staples up 6 and change percent. doing better than everything else. a lot of it has to do with lower energy costs, et cetera. then you take a look at the difference between the consumer discretionary sector here in the u.s. and the retail sector. xly is right at all-time highs. the xrt, however, is 12.5% off its highs for may. retail is not doing well. the consumer is doing great.
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>> let's talk high -- let's talk high-end retailing. kenneth kohl in the midst leave branding and boosting brand awarnts. a fresh logo, new marketing campaign, and a concept store in new york city. all part of the refresh. scott joins us live from the iconic conference with fashion designer kenneth cole. hi, scott. >> hey there, michelle. how appropriate to be at the iconic conference with a fashion and retailing icon, and that being kenneth cole himself. he is the chairman, the founder, and the chief creative director for kenneth cole productions. it's good to see wrush. >> thank you, scott. >> we mentioned in the intro here that this is a big year for you. i don't think people realize how big it is. refresh.
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a rebrand. new logo. you got a ceo who is less than a year into the job. what's happened that as a public company we couldn't do a lot of what we needed do, and some of the big kind of holistic changes that, you know, in the virtual world we do business refreshes sometimes weekly, and they change their functionality and their accessibility, they change -- in the physical world, we sometimes don't refresh for -- until our lease runs out or until we have to. until it's ammortized. we went private. step two, how do you reenergize and reinvigorate and revitalize to a degree deemed appropriate. we've done that. we opened a new store in new york with the goal of merging physical and virtual retail. trying to take the best of both experiences into one physical
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space. theb virtually trying to bring some of the physical and much more curated presentation product into our virtual space. we all have them and have to deal with them. ultimately to provide for them the urban uniform, which makes dressing intuitive. that's been the process. >> how difficult is it specifically in your world of retail, which changes so quickly to stay relevant 30 years into this? how do do you that? >> you have to wake up and take inventory and look at the world around you, and what i do --
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every day you have to look around and say am i still relevant. >> everybody who exists everywhere is an alternative. >> i believe after 30 years i have the right to be considered, but every day i have to earn the right to be chosen. to be selected. >>. >> we see what's happening to macy's today. the stock is down more than 13% today. >> you just opened a big beautiful tour in downtown manhattan. is that a statement where you are seeing it right now? >> we're trying to reinvent ourselves. we all try to do it. it's harder if you are macy's. they're as good as retailer as exist. they made the virtual transaction probably better than most. they're subject to the whims of the market. >> macy's is making -- i know
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they're making some big structural adjustments, but it's hard. the customer today is very whimsical, and have you to speak to them on their terms. you have to be where they are when they're there and speak to them in the language they want to speak. >> people know i think as much for fashion and retailing as they do activism. you have a message, and you're not afraid to tell it to the world. >> for those that say you can't mix capitalism and activism, what do you stay? >> i say they're not just related, but they're interdependent, and i think today you have to speak to the bigger customer and about what's not just what they stand in, but what they stand for. not just what's on their body, but what's on their mind. it's incumbent in that remark, and i think business today, the proverbial hand that feeds businesses is their respective communities. to the agree you can wecht with that community, you can play a
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bigger role and you have a greater reason to exist. i've done this for 30 years, and i am very committed to finding a cure for aids personally, and i -- i work closely with help usa, and i have 25 years on this ever growing homeless population. not just in new york, but everywhere. >> do people start to see kenneth cole standing for social causes, more than kenneth cole the business and the retailer. i read where you said in the advertising and messaging, you need to see the product more. we're going to tell the product story better. >> there's two messages. there's a advise walt message, which is the product, and we say look good for good.
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>> your life -- let me speak to you about a bigger person. you wake nup the morning, and the first question is not what am i going to wear? hopefully can i connect to both of them, look good for good, and then i think our brand is a bigger reason to exist. >> from private to public to private again. will you ever go public again? >> not if i can help it. you know, it's -- there's a reason to be public, but not unless you need to be prub, and not unless you need access to those resources, and at the time we did, and today we have a much longer term agenda. it's about creating a establishable relationship with the customer. it's about the customer experience. it's not about a profits today. it's about the experience today, which will lead to profits tomorrow. creating a model that is rationale and relevant today and
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tomorrow. >> best of luck in all you're doing. >> thanks, scott. >> the refresh and everything else. kenneth cole with us here. kenneth is about to take the stage, by the way, guys, at the iconic conference. i'll be doing that a little bit later in the day with under armour founder and ceo kevin plank. you'll see some of that, by the way, in the closing bell, so i hope all of you will stay tuned for that. great day here in d.c. michelle, for now, back to you, and i'll see you back there tomorrow. >> yeah. great, scott. i'm not surprised. especially on a day like today where you see macy's getting hammered. is he probably so relieved that he doesn't have to face the public market every day. thanks, scott. look forward to the under armour stuff. ahead on "halftime" facebook director mark selling nearly half his stake in the giant. josh brown owns the stock. we'll get his take next. plus, we're breaking down alibaba's recordbreaking singles day. the biggest on-line shopping event. didn't disappoint today. why is it not helping the stock? then in honor of veterans day and the 21 million vets living in the united states today, we're talking to one defense
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a record $14.3 billion. single day. alibaba ceo jack ma spoke about the economy xhirs earlier on "squawk on the street." >> the most traditional way of prompting the economy, like exporting and investment is getting slowing down. today because of the internet, because of e-commerce, we are getting this out of that. i think today we see that the -- the opportunities, the potential is there. the big numbers not helping the stock. you are long baba. >> i don't think the industry believes the numbers, actually, and there are reasons why you shouldn't because it's hard for anyone to go in there into the internals of the corporation and
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inspect it. >> can i stop you for one person? >> number -- you are suggesting that the number today isn't true, or are you talking about the overall balance sheet, et cetera? >> starting from 10,000 feet, i don't think anyone believes any of the numbers coming out of china 100%. then getting to a little more microlevel, i think alibaba specifically there are some trust issues in terms of sell side firms here in the united states, and what all xwraub is putting out. i also think that there's an institutional issue with the vie structure in general. it's not really the same as buying other internet common stocks. >> request each happy to be in
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because i do think that the stock is over penalized because of the trust issues. >> inevitably we always compare it to amazon. which is a better stock bet right now? joe, what do you think? >> amazon. i think amazon mreelgts. i think what are you seeing in terms of revenue growth, 23% plus year on year, 20% quarter on quarter, the ability, the investment that they've had in infrastructure, logistics. the web. i think it's all playing out in their favor right now. technically it looks absolutely sensational. >> the price structure $800 a share. >> 830% this year. >> another $50 to the up side. i think a lot of what you are talking about, i still think with ceos around the entire every single sector, i think these are one of the best if not
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the best in terms of how he has been able to direct this company for decades now and being able to manage the shareholders in terms of how they spend. then all of a sudden when they do pull back a little on their spend, he is able to show you just how much the earnings are. it's aws. it's all the strength they're getting from the cloud. the growth and the cloud itself. all those things put together, that's why this company is doing so well. >> it's the perfect storm if you think about it. what pete is talking about, we're an economy that focuses on convenience of time. consumers right now on the trends that are being pushed. the products and goods that are being sold, they're being sold on amazon right now. it really is a perfect storm for a stock that i missed completely the last couple of years. many others have missed. finally, are you seeing the acceleration in growth. >> i see you nodding your head? >> well, this is one that i like both, michelle. i certainly like what basos has
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done at amazon, and pi hats off to him. this is a fabulous year, and the fact that morgan stanley says, hey, another 20% up side, dynomite. however, i think you can get 20% a lot faster over in alibaba. i'll grant you there's more risk, but i think there's a lot more than 20% up side if you believe in jack ma and it's not just employing to be, of course, the retailer. it's the ali pay. it's all the things they do to fill state the retail that goes on their platform and some of the investments they make, like mission impossible 5. that's not going to be the thing that moves the needle a lot. that was a pretty nice first toe in the water, if you will, to get into hollywood. >> to john's point -- >> one of the best stars to do that where w. >> to john's point, everything pete and joe said, is absolutely true. the question is who doesn't already agree with it? how much of that is already in the name? alibaba, by contrast, there's a ton of mistrust. there are a lot of people that simply don't understand the story yet. that's what might create the
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opportunity. amazon say pretty out there story. i think everyone is aware of how great they are. >> in the short-term don't you have concerns of the trust issues in terms of the up and down? it would easily be up or down 20%. >> the point is that's where the potential up side comes from. >> sure. >> it ends up being contrarian. at this point relative -- >> it's the high for p 0 points for a reason. >> all right. coming up next, macrobrews instead of microbrews. get it. the $100 billion deal that will control one-third of all beer sales. plus, fantasy sports has become a money maker and even a job for some is. new york's attorney general is -- our desk debates the value of luck versus skill when it comes to picking winners and especially losers. right after this.
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>> let's hit our traders. four stocks making news today. first up, anheuser-busch, inbev and sab miller agree to $106 billion deal. >> i'll drink to that, michelle. this is going to be a huge deal. already is. in fact, there's a spinoff of $12 billion spinoff as part of
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this. >> that will be the question. >> i hope they're not going to add, like, yet another-an and lengthen the name even more. -natured names are so overrated. >> it will end up going all around the chaser boards. >> apple's new ipad pro. its am music service is available for android phones. you are long apple. what do you think? >> i am. the stock was down earlier. now it's back up into positive territory. it's all about the enterprise. >> very interesting. i think with all of the great things this adds to us right now, this is going to build the enterprise that they want. a huge sector for apple. >> mcdonald's announcing yesterday that it will not spin off its properties into a reet
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saying it's focused on other initiatives instead. the ceo joins squawk on the street earlier thoughed. >> we've not been particularly delight with our results the last couple of years. we've given up a bit of market share. there's win back in the near competition, and then we build the future. it will take more ieo share. it's phobinging on running -- >> mr. new world, your thoughts on mcd. >> you're a mcdonnell's girl. >> i love breakfast all day. it's my most favorite thing they've done in years. >> i walked into a mcdonald's for breakfast in wisconsin this weekend, and walked right out. >> because joe is a snob. >> smelled awful. >> the arugula and chardonnay. >> he goes to the midwest, and boy, oh, boy. >> beautiful country there, though. technically the stock went from 102 to 112 right after earnings. technically it's pristine. you got to love where the chart is right now. breaks below is so. do i trust it? no. its capital indication story.
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turning $10 billion in 2016 cutting costs. >> borrowing money to give -- >> that's a good thing. they got cut slightly. >> tick it the technical on this one. >> facebook director selling half his stake in the company. josh, are you long facebook. does this make you nervous? >> no. mark is probably one of the greatest living investors. he has been early to every important tech trend. practically invented -- >> he invented some -- yes. >> it's an academic tool. it was mosaic, and he invented all this. he still has a lot of facebook, and the smart thing that any investor did is diversify, special when you have a share price that's quadrupled over the last three years, and he owns from pre-ipo valuation. i don't think it's shocking he sold 134. he is not talking to the press. anybody can have any kind of
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conjecture, but they don't know the reason. i don't think it's terribly important for the future of the company. >> crude oil prices hitting a two-week low today. gosh, the pain never stops there. jackie deangeles at the nymex with the futures now crude. jackie. >> hi, michelle. that's right. after we got inventory data last night. a big build setting us up for the department of energy report that we're going to get tomorrow. delayed for veterans day. in europe and overseas we are getting longs for crude oil. it now appears that saudi arabia and russia are in a price war in europe. >> if you are looking to find some sort of floor in oil, it's not going to happen any time
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soon. >> let me ask you this wrish always come to you on volatility. since the start of november, we've seen average moves for crude oil up 2% every single rsh how do you trade this volatility right now? >> well, certainly it's quite a move. it's less than it was a few months ago. that's one thing that is encouraging. a low of 2% seems like a lot. you have to step your bid and offers out here and especially as we're stair stepping lower and making lower highs, lower lows. you want to be cautious about when you step in to buy. like scott said, $40 a barrel in the near term target is very reasonable by the end of the year here, but volatility until we see a spike above $45, i don't think we see a huge plunge below 40. right now it's a stair step lower here. supply continues to slowly increase in the margaret. >> all right, gentlemen. thanks. more on crude oil on the live show tomorrow 1:00 p.m. eastern. futures michelle. >> all right. thank you so much, jackie. talk about the potential for a rate hike. well, the it rocked the markets.
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black rock rick reader with his $700 billion worth of advice next. plus, playing defense. that sector up more than 10% this year so far. three stock pick from one industry expert coming up on this veterans day. halftime is back after this. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.
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hi, everybody. i'm sue herrera. here is your cnbc news update for this hour. university of missouri police say the suspect accused of making on-line threats against black students and faculty is 19-year-old hunter park. he was arrested early this morning and jailed on a $4,500 bond. he was booked on a preliminary charge of making a terrorist threat. the president of the international olympic committee says he won't speculate yet on whether or not russia will be barred from the upcoming olympic games. thomas bach saying he is waiting on more information to take action against russian athletes who doped. joe ae crab shack is the first major restaurant chain to drop tipping. the seafood chain will experiment with the new policy at 18 of its stores. it will pay servers, hosts, and bar tenders at least $14 per hour instead of the current $2.
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in las vegas a 24-year-old from north wales, pennsylvania, is the winner of the world series of poker. swrak mckeehen takes home $7.7 million after besting josh beckley, a 25-year-old from new jersey. congratulations to him. that's the cnbc news update. back to you, michelle. >> $7 million in poker. it's a great country, isn't it? >> it is a great country. you are absolutely right. >> all right. let's shift gears to the markets, and with the upcoming fed meeting means for your money. rick is the cio of fundamental fixed income at black rock. he manages $700 billion. assets under management. he is live from the schwab impact conference in boston. rick, good to have you here. wow, that october number in payroll is pretty spectacular. we're starting to see wage growth too. they're going to hike in december, aren't you? >> i think -- i'm pretty convinced. i think they should have hiked a while ago. i think the markets -- the thing that's pretty amazing is the
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markets have now moved from where it was a couple of months ago. not going to move -- not in december. maybe not all of next year. i think it's 80%, 58% problemability. we think they're going to go for sure. >> how much more after that? how fast are they going to -- if they start, it's not one and done, is it, or is it -- how many more hikes after that? >> there is so much focus on when the fed starts and is it september or december? i think the more important dynamic in the fed has been articulate in describing this. it's the pace they go at and the destination they're going to. this is going to be very gradual. we think when they announce that they're moving rates and presumably that is december, when they announce it, they are going to be very clear about data dependency and that the process will be very gradual along the way. that means as long as -- they can rise moderately, but they'll be well contained. it's a big deal for capital spent tour for markets, et cetera. >> it's joe, so you don't believe a cycle of interest rate
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hikes are coming, and if it was to come, what would be the economic metrics that would be the catalyst for them to start the cycle of rate hikes? >> i would say a couple of thing. no, i don't believe that's right, and i think, in fact, this fed will be very clear about this is a different process than anything we've seen before where you've had a very consistent move 25 basis points every period of something like that. this is one that is going to move, look at the data, determine the move again. it will be very asymmetric in terms -- very big point. two, you have the rest of the world or the rest of the developed world like the ecb and bank of japan that will be more aggressive meaning the fed has to be sensitive to the currency, and sensitive to what the rest of the world is doing. what do you pivot off of? the big deal will be wage pressure. the big deal will be inflation. i think financial conditions are also important. i think that's going to be the driver we focus on in terms of when the fed may pick up the pace or slow it down. i think it's going to be a big focus on how you see acceleration of prices. >> do i infer correctly, you don't think the long end moves
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very much, and the reason i ask is as we always hunt for yield, what did you do? do you go to high yield, where it's nearly 8%, or do you do what? >> yeah. it's a great question. i think it's going to be really important. i think on the back end, the long end of the yield curve is as important for the economy as the front end is. it's out capital expenditure, mortgage markets pivot off of. i think the fed will be clear or certainly try, and harder on the back end to keep the long end down. we think interest rates will move up very gradually. i think places, some of the muni market and the long end of the curve in different structures is actually pretty interesting in the long because i think the back end will stay reasonably contained. by the way, we made a pretty big call today in the last month ago. if can you dap capture, carry, or income in that range you
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talked about, maybe 6 or 7 in high yield, even parts the e. m. we're being cautious on em, i think that's not a big deal going forward. where you can get income and even parts of the equity market, you can make some sense. >> it's josh brown. who is taking the bigger risk right now with people's money? the guys that are betting on credit risk being the right one to take, or the guys who are betting on duration risk being the right one to take? on a global basis. >> i think -- listen, interest rates in the rest of the world are going lower, first. i mean, the ecb is going to try and drive rates lower still from where they are today. certainly bank of japan will try to deep rates down, if not lower. real rates lower in longer term. who is taking the bigger risk. i would say we've gone through a credit cycle in a couple of months where levels got to -- i would argue credit in parts of the u.s. are attractive and interest rates in other parts of
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the world are more attractive today, meaning in europe and india, mexico, are pretty interesting. hard to say who is taking the bigger risk, though. >> it's both, swrosh, based on geography. good to see you, rick. >> great. rick joining us from the schwab conference. >> all right, we have another investing heavy weight tomorrow. mario, the chairman and ceo of the gabelli funds will be with us live from the schwab impact conference as well. coming up, new york's attorney general thinks daily fantasy sports sites are illegal gambling. here is what nfl hall of famer joe namath told "halftime" recent loy that. >> do you like fantasy sports? >> you have to pay rsh stwroo do they win something? >> that's gambling. >> wasn't that fun? our desk debates that next. let's take a look at the halftime portfolio leaderboard, in the meantime. josh brown in the lead followed by dr. jay, john, stephanie in third place. jim in fourth. joe and pete rounding out the
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bottom. stwloo let's just linger on that shot for a moment. >> especially -- >> let's focus on you in the number one spot. does that feel better? >> someone on the desk made a trade today. we're going to unveil that trade coming up. you are watching cnbc because we are first in business worldwide. turns romantic why pause to take a pill? or stop to find a bathroom?
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i can recognize people, analyze images and watch movies. well i wrote a few books, did a speaking tour, i... i've been helping people plan for retirement. and i help doctors identify cancer treatments. is that all? i recently learned japanese... yeah, i was being sarcastic. i haven't learned sarcasm yet. i can help with that. coming up at the top of the hour on "power lunch" it's been a wild ride for stocks this year, so where are mom and pop investors putting their money to work? the ceo of td ameritrade tells nuss a power lunch exclusive. plus, tyler at cnbc and ink magazine's iconic conference in d.c. a lot of big names in the line-up today, including shark tank's kevin o'leary, and the ceos of go daddy and life is good. they're all on power lunch. it's macy's outlook a bad sign
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for the holiday shopping season ahead? we'll discuss that and, of course, much more. in the meantime, back over to you. >> looking forward to it, mandy. >> new york's attorney general is sacking daily fantasy sports ordering them to stop taking bets in the state. eric is tackling that story. eric. >> that's right. new york state banned the two main operators of daily fantasy sports saying it's gambling. that leads us to the central question. is it gambling? regulators and casinos say yes because there is chance involved and you are betting on the outcome of sporting events. draft kings and fan duel say no because they claim it's a skill-based game. skill versus chance doesn't matter. you could have one or the other or both and still be gambling or not. look at on-line poker. it's clearly dominated by skill, but obviously there is chance as well. the country is broadly defined it as gambling. the borgada casino held a
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basketball free-throw shooting contest for money. that's mostly skill, but obviously some chance, but you are the one doing the activity, and you are betting on yourself, not somebody else's outcome. on-line poker, that was a skill and chance-based game, but it got wiped out by regulation a few years ago. the question is here is daily fantasy on the same trajectory? >> good food for thought there. hot dogs and beer for thought, speaking of sports. thank you. let's go around the desk. what do you think? is daily fantasy sports gambling? joe. >> yes, of course, there is. there's no predictability in terms of what the outcome is. it's too short-term oriented. how do you know if lebron james or john will have an off night? you don't know that. >> it's almost like day trading. >> day trading is legal. it's not gambling. >> i know that. because it gets lumped in with investing, which is not really
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gambling, but does have some elements of chance. the seminole text on this debate does an activity rely more on luck or skill, as written by michael of -- >> didn't know there was a seminole text. >> there is. disentangling luck versus skill. he looked at baseball. he looked at hedge fund managers. the idea is there are questions you can ask that determine whether or not something is more skills-based, or -- some sports are more skilled and -- >> what do you ask? >> can you lose on purpose? >> can you lose -- can i bet -- this sunday there will be, i don't know, 12 football games. can i actively say i want to lose this, and do it? maybe, maybe not. i might pick what i think are the worst teams for the matchup, and i might actually end up winning by accident, and when you apply that test to a lot of things in life, it turns out there's way more randomness and chance that you might have originally thought. >> which makes it gambling? >> well, closer to gambling. >> what makes it gambling is money. we all agree on the fact that -- >> that is an element of it,
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yes. >> this is betting on a sport in a different way, but it's betting on a sport, so obviously there is chance there, and there's gal bethleheming. there is a heck of a lot of skill, though, and the folks that have that skill, i think the odds of strongly moved in the favor of those that do all this research and actually do have the skill. >> the winners have skill, but most people are just -- >> there's a lot of winners, though. have you seen the pay-outs? >> michelle, i think one of the keys here is that lotteries are ways that the states collect money, and if they were collecting money on this, which eventually -- >> then it w would be legal? >> when you pay taxes, you are going to have to pay gains on this. however, you can't say, mr. sh snyderman, that it's illegal to have a lottery in -- or legal to have a lottery in new york and illegal to have this form of fantasy football gambling and/or any other fantasy sport because they're the same thing. >> all right. attorney general just wants a headline every single day. >> okay. >> that's what sde. >> this one will not stand up.
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>> we want to note that comcast, the parent company of cnbc and nbc sports are among the investors in fan dual. coming up, honoring our veterans. remember to honor our veterans today. we're talking to an analyst in a wall street firm with a mission to employ our service men and women coming up after this. the only way to get better is to challenge yourself,
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and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. every day feels like veterans day at directsle hamilton. about half the firm's employees
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have searched in the military, and many were wounded in combat. pete covers defense stocks at drexel hamilton, and he joins us now to talk stocks and also why the firm does this. good to have you here. >> thanks. appreciate it. thank you for leg me be here. >> why does the firm do this and do you notice a difference in employees who have served in the military? >> a couple things. i think these guys want a helping hand up. they don't want a handout. they want to be trained up and help themselves transition from military service into a real career when they come home and just be able to help their families essentially. so that's what we do at drexel. we put a lot of time into letting these guys get their series seven, study up for that, and teaching them a trade, sales, trading, or research and get that experience they need to stay with drexel over the long term or transition to bigger firm in financial services that can, you know, hire more en masse essentially. >> you cover defense stocks. >> i do. >> are you bullish on them right now, and if we are more likely to see -- i'm wondering if there's an election play.
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the more likely it is or less likely it is we get a republican winner, does that move those stocks together? >> i think, you know, in the middle where a lot of people are most people are not talking about cuts to the defense budget. i think maybe on the ends, rand paul or bernie sanders, i think there's some speculation about their intentions about the budget but most people in the middle are not talking about that. i think in general we're in a decent place right now. i have been telling investors since the beginning of the year don't expect 20% returns but they can grind higher. they can get you 10% to 12%. >> what are the best names? >> we have liked boeing for about a year. it's been our top pick. more commercial aerospace than defense but it's in great shape. we have good data out this morning concerning the world airlines, profitable in every region of the world, more profitable this year than last year. that's a good place for boeing to be. you're knot going to have airlines cancel orders or defer delivers. so boeing stock top pick.
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we still do raytheon and harris corp. the theme of the world being a more dangerous place, right? you have countries in eastern europe and the middle east, the patriot missile defense system we have heard about for decades has gotten a second lease on life. >> i know harris corp from when i was in iraq years ago in 2005. they did the tv station for the country. >> yeah. >> wanted to ask you about lockheed, stock is up 12% year-to-date, looks phenomenal technically. what's the story there? >> we've been buying lockheed for a while. they closed the skikorsky deal lately. it's not going to be an accretive cash acquisition for lock hooed, so i'm a little concerned right now. i want to see them come out with the updated data to see if they've been conservative nir y initially or not. i would like to get more
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information. >> thanks for joining us here on the set. >> my pleasure. >> today drexel hamilton, hi company, is donated commissions to veterans charities. we're very excited about that. many thanks. >> thank you. >> thank you, pete. >> the najarian brothers are always on the hunt for unusual opportunities. today they're hanging out by the coffee machine. we're going to explain. plus, what our experts are focused on that you may be missing. "halftime" is back right after this. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution.
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guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor.
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you win some, you lose some. john, here is a trade you made two weeks ago in the energy space. >> both based on unusual activity, judge. two energy plays. one sun edison. big short squeeze we believe about to happen. the stock making a nice move to the upside. big call activity, bought sune
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for the portfolio. also eca, bought that, again, unusual call activity. >> since then sun edison is down 30% and encana is flat. what's the update? >> unfortunately, the encana holding still got it in the portfolio here on cnbc, but the sun edison as most of the viewers know from that day, when we popped, we popped because of a rumor that mr. tepper, who was going to be on "squawk box" the next morning might announce he was long that. i faded that, said i don't know if that's going to be true or not but the stock had popped i think almost 11%, michelle, into that short squeeze that we talked about. so got out of that one. that was a nice trade. the other one, not a good trade and still got it. >> all right. double najarians today, double the ponytail power. pete and john, you're seeing unusual trading in the options market. >> the ptp power we have working right now. when you look at xerox, very
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interesting. the stock is having a 5% stock today. very strong day, one of the strongest in over two months, and when you look at the unusual activity that we're seeing right now absolutely incredible. they're coming after the november 10 calls. they started at 12 cents, went up to 22 cents. over 12,000, i think now it's over 13,000 were purchased far above the open interest. a lot of activity out there and the call to put activity, 100 to 1 calls versus puts. a lot of activity out there. stock getting a nice lift today. >> all right, you saw some activity, too. >> went with the financials, saw state street, a nice pop. this one we see very strong activity, michelle, december 75 calls over 8,000 of those have traded. the open interest was only 451 contracts. opening new trades and obviously in anticipation that something positive like a rate increase is going to happen between now and december. >> we should point out that made you lead to a change in your
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portfolio. >> i added to my halftime portfolio as well. so i will probably be in there a couple weeks. >> we'll see if it helps you move up the leaderboard. time to go under the radar with three things the traders are watching that you're probably missing. joe? >> japan, nikkei, a lot of money flowing in over the last five days, up 4.5% while the s&p continues to struggle. >> john? >> well, i think it's kind of interesting, michelle, that you have ralph lauren, rl. the stock made a nice pop and created a big gap just a couple weeks ago. now it's right back in there looking like it wants to fill that gap, so that's on my radar. >> peter. >> american capital, it just continues to hit constantly, almost every single day and it doesn't get covered but you take a look at what the stock has done over the last month or, so incredible move to the upside. >> josh? >> freeport-mcmoran. this is way more volatile than your typical carl icahn stock. this is a stock that went up 64% four weeks ago, the next week it
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was down 35%, the week after up 60-some-odd percent and then down another 32%. that's pretty outrageous in terms of being a holder of that name and watching that go on. >> definitely some good under the radar names. that does it for us. "power lunch" begins right now. thank you, michelle, and thank you very much for that. well, "power lunch" is starting right now. i'm mandy drury. welcome to the show. tyler will join us momentarily from the iconic conference, and he has a really great list of guests all lined up. on the agenda today, sacked. new york state says no to daily fantasy sports. what is next for the fast-growing business and companies like fan duel and draft kings? brawl at the mall. is jcpenney making a big move against macy's? and, another sign for investors that


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