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tv   Fast Money Halftime Report  CNBC  April 29, 2016 12:00pm-1:01pm EDT

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is going to be keeping the name of the combined company which is interesting. >> and tom carston is going to be running the company, and lot of the brand equity in that company of course. and owl, it was a lot earlier today, but as kayla said a lot more to come next week. have a great weekend, and let's get over to the headquarters with scott wapner in the house. ♪ xx. >> welcome to the halftime report, and i'm scott wapner, and in fact, the s&p has given up all of the april gains, and are we on the cusp of a bigger pullback, and the billionaire investor carl icahn told us this yesterday afternoon. >> i am still very cautious, yes. extremely cautious about the market, but i do believe in general that that there is going to be a day of reckoning unless we get a stimulus. >> and so, maybe sell in may has
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started a little bit earlier, and we have josh brown, steve wei weiss, jon najarian, and josh of the macro group gianelli. >> well, it is cautious any time, and not just this moment, and anybody who is invested you have to understand that without warning a 10% correction could happen, and that knocks you down 15 or 20 depending upon the portfolio, and the bigger picture, it is shocking that we went into the earning season expecting a not so great earning season, but we all felt, and you know, we all meaning the collective investor psyche, and tech will get it done for us, and the tech has been the source of most of the earnings-related consternation. take a look at the triple qs on the monthly basis closing at the 10-month moving average in a while, and meanwhile upside surprises in places like exxon. so a lot of what is going on is company-specific, and the macro stuff is largely papered over.
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>> i want to know if now that you have got, you know, icahn again negative on the market, and you know, you have obviously had a great run, doc, since the february 11th or the 10th bottom the or whatever it is, and is it time to get cautious again? is it time to be worried about the market, and that this tremendous rally that surprised a lot of people is about to rollov rollover, and yesterday, maybe precipitated by what icahn said or confluence of other thing, and selling off again, and how should we be thinking abt it? >> well, coming a couple of days before we kick off in may, and the sell in may that you mentioned, that certainly on a week when amazon outperforms like crazy, but apple which had been the darling just underperformed like crazy, and yeah, it made a lot of folks nervous. i wasn't as nervous, judge, because of what i saw out of facebook quite frankly, and what i saw out of amazon that we will talk about, and could we have a 10% correction?
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i don't see it in the cards here, but i think that we can continue to go right back to work, and more or less ratchet it high ler, but ratchet it slowly grinding, and all i am looking for is 4% to 5% on the year. >> and go this way, steve, what is more meaningful to where the market goes from here, and since there are two of the three or four biggest stock stories of the week. apple's decline, and now that we know that carl icahn is out or amazon's gain? what is more important to hang on here? >> well, they are both separate stories completely, and apple is a large number, and tapping the tech innovator that they were in the past, and am song has had the earnings power, but they are showing it to you now. >> and they are the law of large valuation. >> yes, they r and that is why i am not involved. i have been taking the risk off, and the reason is that when the fundamental investing means nothing, and that is the case recently, then something is going on that i can't understand that i can't figure out. when companies are telling me -- >> you think that fundamentally,
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and not driven be i the fundamentals and the recession moved further from the conservaticon sese se servse ser -- conversation, and the oil moving to $50 and those are fundamental reasons that the stocks went up? >> well, actually i disagree, because oil, and nobody can call a fundamental reason for oil to go either way, because it is impossible to analyze. you can look at the production coming down, and the opec nations, it is increasing, and the way i am looking at a company on the verge of bankruptcy telling you that they are filing for bankruptcy, peabody, and then the stock rallies 20% after they tell you that, that is not fundamental, and the other thing that i would say this is the multiple on the market has expanded. this is not the typical point in the cycle when you will get the multiple expansion on the s&p and it is shrinking, and the earn in earnings are the worst case snare yoeshgs and without
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energy, they are not bad, and still not growing. so you have the earnings recession, and albeit, it is the strong word, and multiple expansion, and trading at the higher multiple when the fed was on the cusp of easing. >> and now, is this a preview of what may is going to be like as we wind down april? >> well, a couple of points. one point that there are so many hedge funds closing that we don't know if this is for selling by the guys getting out, and we are talking about the big hedge fund tas are closing, and this is the end of the month, and we might see some of that and people front running and sell in may thing, but when the market is down, i look at the vix, right? that is elevated and then we look at the hyg and is the hyg telling you something, a credit proble problem, and down 20 cents so we are not seeing that, and so we are in the midst of the earning season we which we started at 2050, and so we are back after 300 companies report and 200 more to go and at the higher end of the range, and we have the
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dollar low, and the commodity on fire, and gold doing well, and the baltic dry is over 700, and the things are not going worse, but it might be a little bit of the market hiccup in terms of the earnings, right? some good, some bad, and the hedge fund selling and that sort of thing. >> i want you to think about why we had the dramatic drawdown that we did going into the middle of february, and what has changed since. if you consider the twin stories, number one that china is about to crash, and i'm not saying it is not ever going to have in our lifetime, but it is the other way, and doing massive stimulus again. and when you think of the dollar reversing course, and maybing the emerging markets more palatable, and quite frankly helping the future earnings projections for the u.s. companies for the time being, those are fundamental shifts, and you may not like what got us there. >> and actually, janet yellin is
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responsible for the shifts. >> and now, the tech -- >> but still fundamental changes. >> but they are not, because you have the policy issues in china actually getting worse, because they are putting off the inevitable, and so you have traded the short term gains in stimulus. >> and i am not believing that. >> and this is one thing that is clear -- >> and forget the central banks and all of that, because you need the fiscal stimulus. >> and now, the hedge fund, and not one that i am invested in that does not have a 30-day know fis for the selling or the liquidating, and most have 60, and 90 like gates, and ackman, a year and a half, and versus the mutual funds. >> and it is the end of the month -- >> quarterly. >> quarterly. >> okay. it is not until the end of june versus the mutual funds that are for the mutual funds, because it is daily liquidity, and so it is not a hedge fund force >> and you have ten hedge funds worth $6 billion a piece going out of business, somebody is selling. >> well, they are not going out of business. >> well, yes, they are shutting
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the doors. >> and i need 90 days to get out, and if i'm a mutual fund running a trillion or more like they r then i have to sell the day they come out. >> and we had a 14% rally in the s&p and maybe they want to take a couple of chips off of the table if you are a mutual fund running trillions of dollars. >> you are calling a two-day backup a hiccup, and we are overdoing it on that, and if you think that the market, doc, head heading into may is setting itself up for the fall, what do you need to do? >> well sh, then you -- >> because the sentiment has completely shifted from the february, and the diamond bottom february 11th, and it is a hated rally, if you want to call it that, but sentiment is certainly different than it was in the beginning part of february to where it is now. >> yeah. >> and until carl icahn gave maybe everybody a reality check that he is still worried. >> he is still worried, and he is worried last time, and the gentleman that would make him some sort of cabinet member, mr.
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trump says that there is a recession imminent, and so there is plenty of reason for folks to be worried are, however, i don't think that most of the earn iin reports that we are seeing right now bear that out. apple, certain ly. and we most of us on desk think that that's a waiting for the 7.0, and not waiting for the fact that people have not wanted a phone every year or two years with the upgrade plans the way ta were, and so i don't believe it has changed significantly, and apple is still going to be doing the big numbers and so apple right here got down to the february low, and right down to the august lows, and right down there, and it is bouncing slightly, but carl's comments certainly had a lot of folks who were in it, because of carl and worried because is in the canary in the coal mine hitting the sell button? >> and do we believe that are the are people with real money selling though, because carl icahn -- and like, is anyone?
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>> well, i am reminded right now that art cassian who is a well respected voice, and nobody can pick the exact catalyst of why the market is selling off, but he called it on to the "closing bell" the icahn flush. >> and that is the process of buying and selling, because another investor no matter how smart or well connected or whatever says you should do? i feel bad for you. >> and that is not the first time that carl said that there is going to be a flush. >> no, he said it is lower. >> and after you have had a tremendous run in the stocks, does it not force you the sit back, and say, you know what, maybe now is the time to take a lit le chips off of the table, and take a few chips off of the table when we are heading into the may, and sell in may may work? >> well, i don't believe that steve's institutional clients would listen to that. >> and that is not the point. the point is that in the market, if you are ail seller, and not institutional seller, they
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will take your money, man, and keep driving down the bid, and that is the momentum, and the machines kicking in the momentum. and the interesting thing is crude is up, or at least five minutes ago and the market is down five days, and we have not seen that correlation in a long, long tile. >> and ceo bill ackman is going to join us for the entire monday, and it is an exclusive interview here on the "halftime report" and so much to talk to him about the performance of the hedge furnds or how valeant has more news, and we will get to all of it. this is what else is coming up on the "halftime report ". >> jim cramer says a bull market is ahead for pharma. is he right? we will and finergy, is it the bang? and it is the 2016 cnbc stock draft, and our staff will give you the picks for the rest
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of the year.
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welcome back to the "halftime report" and we want to call your attention to nbc partners which is off of the worst levels so far. the company has released a statement saying that mdc management is con fident in the financial reporting and accounting practices, and it is intending to defend itself against the false and misleading accusations of the short seller report which is solely focused
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on destroying the value for the shareholders for their own personal gain. the this is with regard to the short selling research report put out earlier by gotham city research which alleges and makes the case that mdc partners as a stock that should be worth $1 per share or 96% downside from hee, and they have made the case in the report which is what drove the shares down as much as 23% intraday earlier today, but again, scott, guys, mdc partners are responding saying that i will defend themselves vigorously against this attack of short selling firm. >> and stocks are down 14%, so they have work to do if they want to continue to try to fight back against the allegations. dom chu, thank you so much. and now sh, over to the desk. four trades on four stocks making news today. western dig is falling, and what is the story? >> well, the whole sector as steve gave as well as the others
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are under pressure, and there is a lot of factors going on right now, but one of the things is that they are obviously not getting the orders they anticipated and they did not plan for that. that is big when you have valuation above the sector, and right now, over $13 billion, and backed down to $8 billion and seagatet is at a 6, and the chart is ugly, and 40 is a big level, and so you want to watch this carefully. >> and exxon and chevron, and break it down. josh brown for the breakdown. >> so, the -- look, these are the companies coming into the reporting season with very, very low expectations, and they have both managed to beat in some reare spect if you can call it exxon by 13 cents on the earnings, and chevron on the revenue, but this is the power of the low expectations, and this is why value investing works, and these stocks have largely run up into the report, and maybe this is going to cool them off, because people said that it is not as bad, and it was not. >> and doc, a pandora jumped on
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the hikes, and stocks down 4%, and what are you going to do with that? >> well, they beat on the top line, and listeners, and the churn was not bad, and instead of the churn where ta lost the listeners, they have added 79.4 billio billion, and so the time spent listening up. the advertising which those of us who listen for free up as well, and so that is a positive report for pandora, and bad for some of the others in the space. >> and steve weiss, buy due, the stocks are up 6%, and shy. >> yes, line linkedin, and not only did they beat the guidance, but they have raised the guidance going forward. and off of this, i bought j.d because they had gone up last quarter, and now close to the highs, and this is going to be important in may. >> and the gold is hitting a 15-month high, and one trader said that the rally is getting
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higher. we will go to if futures pit to see about the trade coming up. and when everybody was running away from linkedin, one of our guys ran in, and the company is reporting below out earnings, and upping the guide answers as well. and we have a trade update as welcoming up. turns romantic turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. 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, or adempas for pulmonary hypertension, 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. 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,
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all right. welcome back to "halftime report" and gold is jumping 2% today and hitting the highest levels in more than a year. and jackie deangelis at the nymex, and in the nynex and all around new york city. >> it does not matter, and good afternoon to you, scott. gold prices are getting a big bid today even though the stocks are not, and approaching the critical 1,300 level, and jim, what is behind the move? at first glance i would say the weak dollar. >> yes, i do, it is the weak dollar specifically against the yen. the yen is exploding this week. if you are looking back for a couple of years like what the huge move in the gold was all about, it was about a accommodative boj, and the
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juxtaposed to the hawkish fed. the fed has walked back to neutral, but the other part seemed dovish boj, and the bocd, and now the boj is going to be questioning the efficacy of the economics here, and it is push ing the gold up. >> and now, let me ask you, because $26 is the move, and may not break 1,300, and if so, if it is going to the happen, when will it happen? >> well, now, and about the next month or so. i said yesterday on the show, and so did anthony, the trade of 127 1276-ish, that meant higher prices, and now that we will settle above that, 1,400 in the next couple of months, and the level in the hex int couple of weeks is 1330 for me, and i want to see bl where it is, but this is a medium-long-term trade for me. >> yes, we will watch the futures. thank you, jim.
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back to you, scott. thank you, jackie. the gold is pushing 1,300, and faded here? >> no, it is a new and the rethat is going to -- it is a trend that is going to be going on for the rest of the year. gold is a function of the zero interest rate, and negative interest rate policy that is going on in the world as well as china doing better than expected and not falling off of the cliff. so if you are going to be looking back to when gold started to the break out, it is the negative interest rate policy is implemented and basically everybody flocked to the the gold. >> and the gdx is up 13% on the year. >> yes, and i'm in it still, and pete is. >> as long as you are and pete are in it, i am in it. >> they are in and out of stuff in five minutes. so check back with them in the commercial break. >> yes. >> and this is probably one of the longest holds of any of my disclosures on the site right now, and the reason is that it
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is work. there is barely even a pullback. if you are going to get a 20% or 30% pullback off of the gdx, it is rare, and it is going left to right on the 45 degree angle, judge. no reason to get out of it yet. all of the catalysts that john mentioned are still out there for this, and then today, silver wheaton and barrick and a whole list of others are hitting the gdx for the upside, so there is a number of interest out there. >> and to you put your clients in gold? >> no. >> why not? >> it does not serve a purpose in the portfolio. >> it could be a little bit more than one-word answer. >> well, i don't have a problem, but when we do the portfolio construction, and when you are running the regression, and what it contributes to the portfolio, it is tough to say, because it is a commodity, an unbelievable cyclical boons, and busts, and if you are going to own it
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because it is an inflation hedge, and sorry, but the real estate investments do better as do many categories of stocks. but if you do it to hedge against the dollar, foreigns will do better, and if you are owning it for the catastrophic, sorry, but the dollar is bert, and quite frankly, so do most of the levels of the treasuries talk about the 10-20-year, and it is not a gold stance, but i just can live without it. >> and do you comment on that? >> well, it is a personal opinion, and right now it is trading well. >> well, the personal opinions that are available, and i'm -- >> your personal opinion is that you don't want to put the clients into gold, but i have clients making money in the gdx, and the gld and doing a ton of the options on the desk, and call spreads out to 175. >> and stop it. stop it. we are talking about the investing, but for trading gold is fantastic, and actually, you can do well trading the miners as well for the investor portfolio, and we are having a
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different conversation. what does gold bring to the table, but really, other things you can use in place of it to address the issues that people use gold for, and so i have no problem with trading the gold, but that is not the question that i was responding to. >> and a negative interest rate policy, and so you can't run the regression on that data. >> i have looked at the charts that show that gold is a great inflation hedge, and charts that have is showed that it is not, and others that say it is a great hedge for the cataclysmic circumstance, and others that i is a it is not, and what i do know is that nobody has ever ever told me what the intrinsic value is of a bar of gold. so the fundamental players are not going to be involved and if people want to guess the e emotion of the market, and play the momentum, then that is absolutely fine, and it cuts both ways, so the trick is to know when to exit. >> jim cramer says to go for pharma, seeing a bull market ahead. we will talk to the panel about
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all right. we are back on the "halftime report" and we are back over to the sue herera with the headlines. >> there is what is happen iing this hour, scottie. tragedy in norway, and 11 people have been killed in a helicopter crash off of the coast. they were going to off shore oilfield there when it went down. two people still unaccounted for. two days before the indiana primary, the governor mike pence has endorsed ted cruz for president. and right now trump is leading, and as part of a deal with ted cruz, john kasich is not going to be competing in indiana. >> and now, a ban on criminal history may be removed from fed job application. it would not apply to the intelligence or the law enforcement community, and if enacted you would not have to reveal your criminal history until a job offer is made. and caterpillar is scaling back the production and the
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workforce, and the construction worker said they will close five plants, and eliminate more than 800 positions. this is is part of the strategy outline last year to cut 10,000 positions by 2018. that is the news update, and obviously, a victim of the commodity falling prices, and back to you, scottie. >> and sue, a stock that is much in play, because earlier in the week, it was upgraded to the buy which is extraordinary rare if you are looking at the coverage, and only two buy ratings, steve, on caterpillar, and that is because they have one added this week. >> i am surprised that there are not more buy ratings, because the company is consistent a thapd have missed every quarter for the last four year, and that con sis t consistency is worth something. so they are cutting the production out, and cutting the jobs as more people are liking the stock, because they belief that the cycle is turning. to me, it is a charmed life that it has never achieved the valuation which is below $60, and so i am not going near it.
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>> and the stock is flat. >> well, up today. >> you have a different opinion? >> yes, what we will see once the new president is elected a huge infrastructure project spending, and we will see some type of tax agreement coming across the board, and probably a lot of the repatriation of the overseas dollars to be used to finance the infrastructure spending, and if you are looking at the other stocks in that sector, rallying in anticipation of that. >> and i was going to say what utopian world are you planning to enter january 20th? >> make americab great again, scott. >> oh, you are asking for the wor world. >> and you are not supposed to be drinking before the show. >> both parties could do it, i believe. trump or hillary. >> and now, some of the largest f
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pharma companies, accord cording to our own jim cramer, the rough run may be over in pharma. >> can they go from roving bear market to the raging bull market like so many sectors in the recent months? here is the bottom line. we have an awful lot of signs that the drought is over, and so my conclusion is yes. if you don't own the pharma, it is time that you should buy. >> i love everybody's opinion on that one. because it is a good provocative take on that space. doc? >> abbv. i like this one a lot. it is one of the stocks that has continually this year, 2016 had some institutional interest nit. and even on the days when valeant and others are smashing, that one will work for you, and abbott with the st. jude acquisiti acquisition, i like what they are doing, so those would be two of mine, judge. >> and the sector in general? >> well, jim could be right and it is a defensive sector, and i like it. like the big cap biotech better,
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but the issue is the campaign, and so while the average drug price is only upless than 5%, the average out of pocket expension because of the insurance companies not covering the reimbursement is up significantly, and this is what is killing it. that is the only fly in the ointment, and how big of an issue in the campaign, a lot of it is in the stock, but not enough. i like the group overall. >> and you like valeant overall? >> yes, i like it as a trade. i bought it, and got out quicker than stomped out, which is a record for me, and so the momentum could be the 10 not having anything. i don't see the momentum starting to take hold, then frankly, i'd rather be short. >> i think that cramer suggested, too, that he thinks that the worst could be over, and you know, the thing has b bottomed? >> well, i don't know if it is over, because you have a ceo that by the way left the company that got cut in half in stock price that is not a turnaround, guy. >> and no, i know that --
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>> he is going to be spending half of the time there. >> and jim is going to be the first to say that he didn't like he how he left, but the prospects of him in the new place given the damage to the stock price at valeant, can it get worse? >> yes, they have monster debtload, so it is a momentum trade, a absolutely. >> yeah? what are you doing? hand signals, are you talking? >> well, we liked it because the 10k was coming out, and then the announcement of the new ceo, and it is out because of the two facts, and option position, and so going forward we have to see how is it going to trade, and it is off, because people sold on that news today. >> and vol came out in a humg way, too, judge. this one, sarepta, and any of the big explosions in the volatility have been there to be sold really. and you have been rewarded for it. >> and speaking of valeant, and the pboard member of pershing
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square bill ackman is going to be here. and dom, he is playing the role of the commissioner, and he is coming up. >> all right. judge, i am not sure about the guru, but ki pick the names out of the hat or the trophy cup. so here's the order of the stock draft for the "halftime report." number one, jon najarian. number two, steve weiss. and number three, the reformed broker himself, josh brown. that is the stock draft order, and scotty, back over to you. >> thank you, dom chu, and we will reveal the picks ahead. "halftime report" is back after a break. >> the "halftime report" with
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scott wapner is real reviews. real money. >> my problem with apple -- >> real debates. >> we end the year modestly higher than it began. >> and the most profitable hour of the trading day. >> don't be surprised to see a 5% or 10% move the other way, because that is what we have been having for a while now. >> "the halftime report" weekdays at noon eastern. you pay your car insurance
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coming up at the top of the hour on "power lunch" a day of reckoning for the financial markets unless we get the fiscal stimulus which is what the billionaire investor carl icahn said yesterday, and big trump supporter, but warren buffett does not buy into that. who is right? >> and now, facebook versus google and almost everybody, and the new rivals in tech, and which side of the trades should you be on? and the war on drug prices should big pharma be regulated more strictly? that big debate is ahead. we go to breaking news and sue. >> thank you very much, ty. and in is out of puerto rico where the health secretary says that the u.s. territory and the island has recorded its first zika-related death amid an outbreak of the mosquito-borne virus on ap. anna rias said that a 70-year-old man infected with zika died in february from a
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drop in blood platelets and now they have seen more than 600 zika cases, and 73 of those involving pregnant women, and we know e that zika can cause severe birth defects and encephalopathy specifically. and according to the health secretary, 16 people have been hospitalized, and four are believed to have developed a syndrome that causes temporary paralysis known as gilliam barr syndrome. and back to you as puerto rico reporting the first zika death. >> tanning you, sue, for that alert. the nfl held the first round draft last night, and today, we are hosting the cnbc stock draft. this is how it works. each trader will take one stock and hold it until the friday before the souper bowl which is february 3rd, 2017, and the trader with the best performing stock over the time is crowned
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the champ. and this is the stock class, alphabet, apple, microsoft, jpmorgan, johnson and johnson and wells fargo, and cisco systems, and gilead, and pfizer and royal dutch shell. each has a minute to make a decision. and doc, on the clock. >> i am going with alphabet not because it is the first on the left there, judge, but because the stock down as it with apple almost the same percentage year the date, and will outperform here until february 3rd next year. the paid clicks were up 29% in this name, and the cost per click, and in other words, to get people to the platform and is so forth, that is down. so i think that those are two positive things for the former google now alphabet, and i think that video facebook owned it this last quarter as far as
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outperformance, but you know, google has 65% of the search market, and i think that they will continue to thrive on that as well as the youtube videos and so forth, and the self-driving cars are a distraction for now, but i think that it is something that people will overlook going forward. >> and who wants to play mel kuiper jr. and assess the pick? >> well, i went with alphabet as well. i liked the story. since i go second, i will give you my pick which is j&yj, and all of the names can make sense on some measure, because they are all quality companies in the phases of the growth and earn in ings, but the reason i went with j and j, is that like jon, with we are in a low return environment, and you have a new management there for a little bit, and that i have started to turn the corner. so i like health care, and a defensive sector, and takes care of me if the e kconomy falls of of the cliff, but at the same time, no interest rate sensitivity if the rates are up,
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because the balance sheet is pristine. so right now next year's numbers, and i believe they may go up, i have a stock that is a great name a worldwide brand, and selling at a discount so that the market multiple, and that is why i am picking j and j j. >> mel? >> well, me? >> well, me. i think that you are right again. i think that johnson and johnson and pfizer as well, and we could have if cramer is right, and i think that what we have seen the worst of the health care scare, you know, bernie sanders wants to shutdown the whole industry before congress. >> and he would shut down all of them. >> and so before you are trotted before congress, that is the low of the sector. >> and josh brown, you are last but not least. >> yes. >> last but not least, and make your selection. okay. i wanted j and but weisj, but jpmorgan, because there is a
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going to be a lot of the randomness here for all of us good and bad. and i think that you have to think about the environment that we are in, and likely that the rates are going to be somewhat higher, but not substantially higher, and it is likely that the banks can rerate as the process is started and as they do, jpmorgan may not be the most up, but it is going to p participate, and in the meantime, i am buying a stock at book, and decent buyback, and great management. so this is going to give me a decent chance going into the unknowable future. >> and weiss, first, give me a comment on that pick, and the context of what i think that i glanced at something that showed that you sold citi? >> yes, i did. >> and you have been a defender of citi as a stock? >> yes, and first on jpmorgan, and while i was close to alphabet, the real choice came down to jpmorgan and j&j, and i picked because the multiple is so low and i believe that they are going to be open. >> i am open to the trade. >> and no. in terms of the citi, i sold the first tranche of it when we had
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the rates going up in the 50s and frankly, i know that it is historically cheap and discount to book and all that, and it will go up, but two things, i wanted to take the risk off, and that is one that i wanted to take off ax and the stock is up after reporting, and the whole bank sector are better than worst quarter so it is not like the earnings are growing, but loans are growing, and the other reason is that i have owned the stock for three or four years, and it is just a frustrating hold i holding, and now that i am finally positive on both tranches, i said, let me get out. so it is a good trade or the good investment, and not a trade, and i will be back in the financials, but maybe something like schwab, and little bit more leverage and not as difficult regulatory oversight as citi. >> well, as i understood the contest, it is basically outperformance from this date until february 3rd. >> you understand correctly. >> i like that google and apple
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were both down at the lower end, because i think that both of them will have positive results going into the fourth quarter, and the first quarter of next year which'll help drive this and outperformance comes the way of google, alphabet versus these other two. >> and coming up, john says to forget about the fang trade, because it is all about finergy and he is going to explain, and what experts are watching that you might be missing today. we are going under the radar today at the "halftime report ". >> if you want to hear more from the experts go the cnbc.com/halftime for the exclusive commentary and behind the scenes access. ♪jake reese, "day to feel alive"♪
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>> take a look at linked in. stocks up 2 %. a strong quarterly report. josh brown took a chance on the name after the big pullback last quarter. let's listen. >> if you get a sell off use it as a buying opportunity. i think the competitive mode is incredible, probably more defensible than facebook. this is a company that came out, beat earnings and told analysts we're not going to throw money at the wall. we're going to refocus on six or seven key initiatives with real roi. >> looks like you got a new hair product since then. it's working for you. what and the trade?
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>> i'm glad a wore a different tie today. i'm on the name. i don't know that this is going to be a great year for the stock, but i'm willing to start a position where i did. i'm up a little bit at this point, but it's not really what i'm looking for. i think over three to five years linkedin as a position on the new social web that's far ahead of where -- we talk about yahoo, it's irrelevant about what's coming. linkedin is relevant. you go to any person in their 20s. they're keeping their linkedin. this company is now at the center of how we're going to find people that work for our companies and build businesses. they're very, very important to any recruiter pretty much the entire fortune 500 and small businesses like mine. and i think that's going to be a place where they can make money, and when you look at talent solutions, revenue up 40%. that tells you everything you need to know. >> those are credible arguments.
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why is the stock down 50%? >> it was expensive. it didn't belong at $250 a share. it's not cheap here, but maybe it is relative to the growth rate. >> they did execute flawlessly until the one period since it was an ipo. we got tons of resumes but also got a lot of qualified resumes within there. and the costs of recruiting from that, i wouldn't go with a real senior person on it but with someone on the junior mode, it's a valuable tool. as well as going into a meeting and what their background is, you're more prepared. >> i was suggesting everything you say sounds credible. >> thank you, scott. >> josh too. >> but i was talking to both of you. but you have a stock down 50%. where's the disconnect? >> why is it down so much? it happened to have come public prior to facebook, and then when facebook came out, stumbled out of the gates and caught its foot and starting to gallop higher.
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they're in the same social media etf. i think a lot of people bid this up well past the point where it belonged even though there's a high growth rate and an incredible mode. they still have all that. but now the pricing is more reasonable given what it is. it's certainly not facebook or google. it's linkedin. i think they have a good vision for what this company could be for the global economy. facebook is not in china. neither is twitter. google is barely there. linkedin is in china. i think they've done a lot of things right they don't get enough credit for. maybe now they will. >> let's move sticking with tech. john is looking at a new group of stocks he calls finergy. >> yes. i think what we're seeing on the desk is a couple of -- financial
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energy material. over a trillion dollars tied up in those stocks. first part of the year, energy and materials got smoked out of the gate because of lower oil. everybody said it was going down to 20. now we're seeing a rebound in oil and commodities, and materials and energy are on fire with financials trailing. i think going forward we're going to continue to see m&a come into this sector. i think we see a lot of m&a in pharmacy. right now we haven't seen any m&a in the big cap financials or the energy stocks as well as the material stocks. with interest rates at negative interest rates zero, and both sectors heating up, i think with the economy i think we're going to see better m&a and better earnings which we already saw this quarter. >> okay. coming up, a quick break. we'll come back and set you up for the week ahead in earnings and tell you whether to buy or sell amazon after the blowout earnings report one evening ago. back after this. this car?
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came courtesy of james and patricia thompson. this tv? margaret and tom lee. the championship game ball? that was sebastian diaz. good guy. and all i had to do was ask for their money and pretend i was investing it. their life savings is now my lifestyle. female announcer: don't let someone else live the life you're saving for. find out if you're dealing with a registered investment professional at investor.gov. it's a great first step toward protecting your money. before you invest, investor.gov.
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i'm never going back to a manual brush. another reminder, bill ackman joins us monday. it is a cnbc exclusive interview. let's kick around a stock we didn't talk about much today. it deserves more. amazon. an absolute blowout quarter. what more do you want from this
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company? >> they're already delivering everything that pete talks about all the time. that is amazon and now microsoft are killing it in the cloud. these guys have been doing it for a decade, and now it's up to 24% of operating income, i believe. retail is j what, 3%? it's just amazing. everybody thinks of amazon retailer. >> aws is stunning. aws is growing twice as fast as retail. and it's still only 9% of their revenue. >> yep. and it's going to be just a monster for them. it is already. but it will be even bigger. >> i love the management. >> i know you don't like the valuation. >> which is why, they've executed. it's a great story. keep in mind what i said earlier. i'm in more of a risk off mode. when i have this stock trading where it is, i'd rather take it off the table, take some off the table at least and then come back into it when i feel better. >> it was in correction territory now it's 5% back near the high. it roared back after giving
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record profits. >> i think it's turning into more of a logistics company. they can do delivery, put your servers in the cloud, they can do drop shipping and everything. and i think their next biggest revenue stream is their streaming video. >> the new stand alone video service. can you get past the valuation and know this is a name you have to pay up for? you pay for the growth they're delivering? >> it's the given good which is an item whose demand for it goes up as price goes up. it's very bizarre. there aren't many things in the world that are this. amazon stock seems to be that. if you're a growth manager and you don't own the name, the question is when's the next pullback so you can own one. it's miscategorized. it should be in the tech sector
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given where the business is going and toward internet and web services but if you own the name, they didn't give you a reason to sell it. i wouldn't run after it to buy it like a give and good, but it's a better hold than sell. >> thank you for joining us. bill actionman monday. thank you very much. hi, everybody. i have driven everyone else away it appears. everyone else is off today. michelle will join us shortly in iran. i didn't run kayla off apparently. she'll -- >> i would never run from you, tyler. >> for the next two hours from the nyse. we're tracking the volatile trading but we start with breaking news. >> we have more details now officially from the cdc which just released the latest morbidity and mortality report. it says that we now have in puerto rico one

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