Skip to main content

tv   Fast Money Halftime Report  CNBC  July 28, 2016 12:00pm-1:01pm EDT

12:00 pm
alphabet was down 5% but they tend to be rather short lived drops for that stock. very subtle hamilton reference there. >> you caught that. >> the world being wide enough. with oil now in bear market territory that does it for us. let's send it over to the half. thanks. wat the top trade this hour the one stock some say could be a in a naer in the coal main for the rally and it is ford. the auto maker's shares getting wrecked today on weaker sales in china and a sobering of outlook for business this this country. it calls into question what's been a pillar of strength for the market and it has us wondering if stocks are at risk if sales have peaked.
12:01 pm
it's great to have you with us today. john, how about this story, ford getting destroyed today. do we need to be more concerned beyond the auto sector. >> well, judge, i'm not a big fan. i like their products but i'm not a big fan of ford, i haven't been a fan of any of the auto companies in this country. in fact a much better buy would have been volkswagen even though they have the rigging of emissions. >> don't you look at this story and say if the consumer has been a pillar of strength at least in certain areas like ouautos and housing don't you say i need to be worried about this overall market steve. >> to your point home building, so home building and autos generally are the two biggest
12:02 pm
towels in terms of the consumer recovery, however this time's different because of low rates and incredible financing opportunities and subprime lending still being a huge factor in auto sales as opposed to home sales brought ford a lot of demand and that demand has been satisfied so when you see all time record sales figures as we saw up until this point, then i don't think you should be surprised that it's falling off the cliff. china is a different story and i think there's good reason too be worried about china. we've seen time and time again. we saw it with apple. i don't think it's a tell in terms of our economy. the numbers have been good. i sold my ford two years ago and i haven't missed a thing. >> so mark fields, the ceo of ford was on mad money a couple of weeks back or late june and said we're starting to see some things in the marketplace we hadn't anticipated or in the
12:03 pm
first quarter last year or this year. here's what kramer said this morning once these numbers came out. >> i think the people are going to say this brought the whole stock market down when it came out but he's been concerned for a bit. the auto business had been on fire around the world and that's been a major prompt. >> is peak auto if we're there a problem for the stock market. >> peak autos are here and we're going to see a down year relative to what we saw last year. i do not believe that's what takes the u.s. equities market down. >> if you're looking at the chart of home depot instead of ford and it was having a day like ford is having today we would be asking ourselves these same exact kinds of questions so why would ford be different. >> ford is different because understanding the u.s. economy it is now a technology software and services based convenience and time economy.
12:04 pm
if you look at the technology companies that are reporting, they're spectacular. i think the narrative surrounding ford's earnings this morning which steve points out rightly point towards the possible concerns for china. is china slowing and you saw the luxury brand, lincoln, sales are awful. the currency there is being devalued. right now the chinese policy makers are pulling back on stimulus that has lifted things like manufacturing and you're looking at a economy that's navigating its way toward a u.s. styled economy and if you look at things in the marketplace right now that the chinese in the last three months, they're pulling back. one of them is oil. >> for the same reason we didn't look at all time record annualized sales of autos as indication that our economy was
12:05 pm
overheating and that was just a month or two ago -- >> not overheating but we looked at it as a point of real strength where the consumer was spending. if they weren't spending at at mall they were buying cars and things for their house. >> in terms of auto sales and what we used to see, we see that correlation with a gdp number that was higher than the 2% we're at now. it's lost its correlation. why? because of zero interest rates are changing the way that we can look at economic indicators. >> if you look at what's happened with car sales over the last couple of years they were phenomenal and a lot of it was driven by interest rates. >> 17, 18 million vehicles. >> to steve's point a lot of that demand was pulled forward and it doesn't mean gdp is slowing. if could be rising as ford sales are coming down for many other reasons. consumers can be strengthing not weakening their demand wand i don't think you can make the case any more there's a strong
12:06 pm
correlation between gdp and car sales. >> phil is in chicago. phil this really dropped a bomb on the market today. >> absolutely because everybody remembers what happened just a week ago with general motors. those were blockbuster numbers from gm. people were saying we're seeing really strong demand in showrooms particularly here in the u.s. and then we got these numbers from ford and these were way worse than people were expecting. they were expecting to make 60 cents a share. when you look at the two main causes for them to fall shorts of earnings expectations let's start with china. ford lost $8 million in china and asia and one of the big drivers of that loss the fact that it's seeing more competition particularly in suvs from local auto makers in china. when we were there earlier this year we talked about how the chinese auto makers are driving
12:07 pm
the lower end of the suv market. i believe that's playing a role in terms of more competition hurting ford in that market. then come back to the united states and you look at what's happening with incentives in u.s. showrooms for ford. they were up 20%. 20% in july. now a lot of that is because you've got the new f series and there's an increase in sin se sentiviv sentivives. the bottom line is 20% increase in incentives and a billion more dollars spent that's what mark fields was talking about when he was talking about the impact of this and now the question is whether or not the company will have to cut production in the third quarter. here's fields on the analyst call earlier today. >> we're going to stay very disciplined in matching production to demand and when you look at our approach going forward as we mentioned, you will see some production adjustments in the second half and in the third quarter. >> remember, production drives revenue which ultimately drives
12:08 pm
earnings. as you look at ford, gm and chrysl chrysler, yes gm and ford are doing better but the big concern is these guys have been pushing truck and suv sales, the most profitable vehicles, they've been pushing them aggressively here in north america. we if we see greater wars that's going to cut into the profitability. >> how worry some are these increased loan defaults that ford saw. >> a little bit but not terribly. some of this is because you had people moving from deling wentsy into default. i think you need to look at the broader market overall in terms of defaults and when you look at that for the auto industry at least through the first quarter the industry was still below historical averages. it's probably still below averages in the second quarter. it's not a huge issue at this
12:09 pm
point. >> appreciate the time as always. i'm not suggesting that the overall market is going to crumble to its knees because ford gave a tepid outlook of what's happening not only in china but the united states. i'm saying put it in your back pocket and hold on to it and remember it because it seems to be a significant move for an area of the consumer market which had been strong. >> i'm glad you said that because i think that it's way overplayed that this is a great read through. i think it is something you put in your back pocket but other than that -- >> both the loan defaults and the question of -- >> we're addicted to incentives and that's hurting ford and when we talk about every one of these names during this earning's season we've said you have to produce in your growth area. where is their growth area, china and they're not doing good. >> the busy day of the earning
12:10 pm
season, if you want to say earnings have been better than feared i think is fair to say, wouldn't you agree with that. >> yeah. >> revenue 56% beating, a lot of big name stocks, facebook's a perfect example today. our question then do earnings thus far justify where stocks are. >> the earnings can continue to show the kind of growth they've had and it's not just in a few categories. think about it. jp morgan had a good number. then you had names like boston scientific today and facebook, fortune brands so widely spread across industry sectors and if that can continue through the end of the year and i see no reason why it shouldn't with personal spending up, we have a 4% growth in personal spending retail sales are stronger, it's mostly internet but i think that spending can continue and this is a consumer driven economy.
12:11 pm
>> do earnings where we are now justify where stocks are right now. >> they do and the fed justifies it and the fed will continue to justify it. it's always this chicken and the egg. >> the fed is not going to expand the market multiple. earnings have to do that. >> but people can gets in here and chase these stocks which they are doing. since brexit it's hard to pick sectors that have not outside of the one that joe talked about as far as crude oil and the energy sector rolling over once it burst through 50 and that was the chorus that occurred at that point because everybody just slammed them from everybody that might talk about rig count and production come on so fast that it slammed aum the way back down and the i think the same thing will occur again in reverse.
12:12 pm
>> i think the fed has expanded the market multiple. from here. they'll have help from the bank of england and the bank of japan because the u.s. is the default public market investment anywhere. my point is where else are you going to go. unless you had a bad earning season the market wasn't coming down. here we are flat today. it's a typical earning season. we came in better than reduced expectations but the fact that the market stayed where it is with slower growth is in fact a multiple expansion. so there's no place else to go. >> the problem is oil. so oil continues to go down. oil -- if it continues to roll over and it rolls over in a meaningful way and takes the market with it then you have to
12:13 pm
worry about energy company earnings again and then you have to worry about banks again. how big of an issue is that today. >> first of all in the near term -- you're coming up towards the end of the week so you will have a lot of spec funds that will push oil towards $40 because they believe there's a lot of long stops below $40 so it's probably going to get towards $40. the problem occurs when you look at the high yield energy credit market. do you see spreads begin to widen out. >> that's huge. >> that's where the potential problem would be looking forward. you're not seeing that right now. one of the benefits you have is a lot of the debt that needed to be maturing and rolled over in the energy space that happened in the first quarter. you get a little pass. you're going to see an acceleration of that in the first quarter of next year. so as we march towards the second half of the year if oil is below $40 it's going to be a
12:14 pm
problem. >> do i buy chevron and exxon with oil is looking to go tomorrow. >> my answer would be no. we've been grinding but we've been grinding a little bit lower. we're in that 50 and we started dropping off and here we are at 41. i would say no. >> almost identical performances. >> where's there's guidance. >> exxon 15%. >> i love these names so i'm talking against myself right now but that's based upon what we've seen over the last week and a half or so we started pushing towards those technicals and you have to pay attention to those things. fortunately the buying we were seeing was in january so maybe there's a turn in oil. >> if oil rolls does the market roll with it. >> if we think about what's happened with oil stocks they have been the best performer recently. they've been really strong and
12:15 pm
people talk about how consumers cyc si siekal so they're a little ahead of themselves. so forget about whether energy prices are collapsing. the stocks are ahead of themselves and i can see them coming back a little bit. i don't see there being any similarity between where we are right now and what drove the price into the 20s. if we can stay roughly in this range, somewhere at 40, i don't think there's a big risk. >> there's two places in the energy space you could look at opportunity first of all natural gas which is up 8%, it continues to work. and then we go back to the conversation we had the other day surrounding refiners, they are in a difficult position on the performance basis year to date and from the earnings capacity but if oil continues to pull back you're going to get favorability in that spread.
12:16 pm
>> what performers do you like. >> i like 66. you could look at -- >> i like va valero. >> let's me jump over to don. >> the latest in the ongoing saga the twist here is the ongoing dispute has taken this turn a massachusetts judge has denied a motion to dismiss a lawsuit filed over the removal of viacom ceo and board member. that's the red stone entity that controls both. the judge denied an immediate request for examination of r redstone's mental competentsy.
12:17 pm
>> a lot ahead on the halftime report.
12:18 pm
♪ you've wished upon it all year, and now it's finally here. the mercedes-benz summer event is back, with incredible offers on the mercedes-benz you've always longed for. but hurry, these shooting stars fly by fast. lease the cla250 for $299 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.
12:19 pm
12:20 pm
following facebook's earnings blow oout. amazon, shares are up 40%. >> not willing to bet against it. it's an economy of convenience and time. every time i've tried to go against amazon that's proven to be the wrong thing. if you get a pullback fantastic. >> we were talking about it into their prime day as you recall and that prime day july 12th said it will mark the top short-term top and it did and we fell about $30 from that
12:21 pm
short-term top and it got down to $17.28. now into these earnings i happen to agree with joe i think they're going to knock it out of the park. >> how does options activity look. >> it's mildly bullish. it's not crazy speculation. unfortunate thing here is that the options are very expensive. $740 stock. not surprising that at the money calls might be $15 with one day or two days to go. so that's one of the problems with the stock that's this big. >> how do you view amazon? >> we don't own it. i wish we did. i've been looking for it to pull back and it hasn't happened at the level we want and i think with cloud kputing being so much in the news today that place to amazon's strength. >> why don't you own it. >> i would look at the pe and he would go blind trying to find it. >> the chances of it pulling
12:22 pm
back in a meaningful enough way to really impact the valuation is not going to happen is it. >> we don't know whether it would happen or not. it's silly. there have been chances in the past year and a half, we had three opportunities, it was close to the price target we had, didn't hit it and we should have done it. >> i guess my point is that this is going to be an expensive stock. >> people wrestle with it constantly. >> you're going to have to make a decision whether you look past that. >> and the spending of jeff. it comes down to a couple of things. it's prime and aws. we know what microsoft said in terms of the cloud so you have a bit of a read through there to figure out it seems like they're going do well in the cloud since they essentially own it and then you look at prime and how about the fact they're going to launch prime in india. we know how much that is to this company.
12:23 pm
look at how well they did on prime day. record sales that day and it shows you they're adding more and more to the prime world. >> this is one of those stocks where you either own it or you don't own it. if you own it you put it away and you're a believer. if it's not in your discipline you ignore it and move on. >> what about alphabet. >> google isser call. i can see google going either way as it relates to earnings. would i be more inclined to go facebook, more inclined to go amazon, i would even be more inclined to look at netflix. >> you like it. >> i do. netflix i'm concerned about this whole competition thing. i think it has started to rear its head and now it's become ag story. but i think in terms of google we know they dominate search. that is who google is but how about youtube and it doesn't get talked about enough. one thing that zuckerberg talked
12:24 pm
about is this move towards video. when you look at google and you know what they've got on youtube there's a lot going on behind the scenes and it's not been factored in yet so that's the one bonus you get. >> for more go to cnbc. facebook hit another record high today but our next guest said on this show last week that investor expectations were too aggressive and down graded the stock. rich, welcome back. >> thanks for having me. >> you say investor expectations are too high and maybe the greenfield expectations aren't high enough. >> clearly they weren't high enough for this quarter. that was a blow out quarter as you said but i think as you're seeing in the stock which has ste steadley a fear of decelerating growth in the back half of this year. >> goldman says it remains in
12:25 pm
the sweet spot and crammer says it's one of the growers. mau is 1.7 billion. how do you look at any of the metrics and worry about the growth of this company. >> i think you have to think there's four key drivers of facebook's revenues. i think they were very clear on their call that add load is basically hitting a wall, that they can't push that ad load any further. i think time spent you have to worry that competition is going to pressure them on the engagement side as you move forward and clearly snapchat is having an effect and they've priced us with the growth no doubt but it is hard to believe there isn't some slow down in that user growth as you move into '17 and that puts pressure on ad pricing as you move into '17. i think that's why the street is
12:26 pm
reacting the way it is and investors are taking profits. we think facebook is amazing but the stock is 350 plus billion dollars that everybody owns and everybody lovers as and the ris reward is what everybody was worried about. we wanted to take a little -- we thought the risk reward was more balance in had than it had been in a while. >> i was looking at numbers and i thought they were phenomenal and that stock trade up to $133 and i was hitting bids at $131.40 in the after hours last night. opened $127.50 today. i think it's people taking profits. when you talk about the competition and i hear snapchat thrown out there i can't believe that in he adult thinks that snapchat and the ads that might go there are at all in the same realm as what's going on with
12:27 pm
facebook and alphabet/google. >> let me be clear. there's no doubt in my mind from that an advertising standpoint right now facebook has a mobile mon opposite lee. there's nobody that can do what they do. they own the category. they're crushing twitter. i'm talking more about time spent and the revenue numbers are not going to be there next year for snapchat that are meaningfully impactful to the facebook growth story but engagement certainly concerns me and i think as you look forward to the growth and time spent, which has been a meaningful driver, they said last night that time spent was up double digits year over year as a driver of that advertising number, can that continue in the face of very significant time spent competition. that's where we start to worry that expectation, especially can looking where people pushed
12:28 pm
numbers to this number which is dramatically higher and raised targets dramatically we're worried about the relative opportunity right here and i think that's why the stock is trading where it is and why people are taking profits. >> we'll get you back soon. joe. >> core holding, i love the results. i think they're the one thing that people are underestimating is when you think of facebook, you think of facebook domesticly. when you look at these revenue numbers, ausha up 65% and europe up 65%. why aren't we talking about the potential of facebook internationally. i think that's what we're underestimating. >> so the most amazing number to me is the 1.7 billion because i've done it in other quarters. you look at it and you say wait a minute how many people are there in the world and then you google that and it's 7 billion. so they're adding 220 million
12:29 pm
users a quarter. that's two-thirds of the united states. it's not just the united states. i think the revenue potential that they have is so extreme and you get to that mass ability to reach more people and then the advertising just is mushrooming. it's very impressive. you can see why cheryl did not take the job at disney. >> you have interesting value plays or ones you think are good values that you've picked up around the brexit issues. scott's miracle grow. why that one? >> because it's european. >> we'll have you back. >> so it's mostly a domestic company we we had a domestic bias. it's cyclical. it's about housing and lawn care
12:30 pm
and it has other divisions. they got rid of their service business and they're using that cash to delav raj and they have a hydrouponics business and that means growing things without soil. it's a $4.6 billion company and it can triple in the next three years and one of the crops that are used with hydrouponic is marijuana. that's not why we bought it, but there's really nice earnings growth and margin opportunity. >> how about the next one, ingersoll. >> it had a tough day yesterday. it's up since brexit. it's two-thirds again u.s. has the best technology in the business so they're improving their margins, housing, commercial residential. >> hd supply.
12:31 pm
sort of plays into the conversation we were having at the top of the show. >> so again consumer spending. consumer contractor spending on commercial and residential. it's very cheap. >> got a major deal in the cloud space today. how do you play it? we're going to name the names next. k4rr7. were . was just a bottle.
12:32 pm
12:33 pm
that no one would ever notice me. but i knew i could be more. that one day, i would make people smile. [woman speaking indistinctly] the earth needed to find a new waytury, to keep up with the data from over 30 billion connected devices. just 30 billion? a bold group of researchers and computer scientists in silicon valley, had a breakthrough they called... the machine. it changed computing forever. and it's been part of every new technology for the last 250 years. everything? everything! this year, hewlett packard enterprise will preview the machine and accelerate the future. see star trek beyond.
12:34 pm
here's what's happening at this hour. the krechllin telling the u.s. to get to the bottom of the democratic scandal of hacking e-mails itself bp the accusations against russia boarded on the stupid. new video shows an air strike in northern syria on a vehicle suspected of being used by isis militants. the vehicle is driving alongside a road considered to be an isis supply route. red hot lava creating new land. it's the first time since 2013 that one of the volume can
12:35 pm
anyway owe's flows has made it to the pacific ocean. the. the restaurant auction in new york city has been completed and it did not disappoint. it brought in about $4.1 million shattering presale estimates of about $1.33 million. the restaurant will be moved to a new location a few blocks away. that's the news update this hour. more halftime coming up next. get one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates to sweep it away. and oral-b delivers a clinically proven superior clean versus sonicare diamondclean. my mouth feels super clean! oral-b. know you're getting a superior clean. i'm never going back to a manual brush. romantic moments can happen spontaneously, so why pause to take a pill?
12:36 pm
or stop to find a bathroom? cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating 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, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use. many men aren't aware their health insurance may cover cialis. contact your health plan for the latest information.
12:37 pm
12:38 pm
we have a wrap it up update. love these. >> another down grade to the second quarter gdp. it's about the rebound from the weak first quarter. we are down another .1%. not remarkable after the weaker trade data. q 2 tracking 2.4%. a range of 1.8% to 2.9%. that's a decent amount from the first quarter. gdp coming down by a full half point.
12:39 pm
moody's.com put this together for us. they're down by .5%. morgan stanley down 2%. a tricky read this morning in a sense there's better import numbers. we have the consumer running at a 4% annual rate in the second quarter. i'm sure the street has glomd on to. tomorrow morning the bea will put out the second quarter number and revise back data from 2013, 2015. all this i think bears on the fed in a big way. >> so the fed yesterday said that near term risks to the economy are diminished. >> right. >> the numbers you just put up from the street suggest that they don't agree with that and i wonder if the fed's in jeopardy of miss reading the economy yet again. >> can i push back against the anchor of the show. >> that's all right. go ahead.
12:40 pm
you'll never be seen again on this show but go ahead. >> the point is that at 2% the risk to the economy have diminished. they're not close to zero. that's tread growth. the fed is worried are we headed to recession. here's the thing you have a split decision. you've got a 1.1% weaker than expected first quarter. you've got a somewhat better than expected second quarter. this is why the fed might be on hold here because it's going to wait for the third quarter to break the tie. >> let me bring you what jeffry the founder of double line capital told me yesterday in a series of kmail exchanges. as to whether september was back on the table or not after yesterday's fed meeting he said friday's gdp report will set the tone for september, if it comes in at 3.5% or better they
12:41 pm
probably hike in september but the fed said the gdp result would throw the door open. doesn't flow if it's going to be that but said 3.5% or more would throw the door open that the long bond wants the fed to tighten and it's been that way for two years. >> i don't think 3.5% is the number we have to deal with. underlying consumption growth of the economy could be but some of the other stuff is going to take off and it's going to be a negative combined there. i think i'd have to add to this comment, if we get strong gdp growth and strong jobs report i think that could create a possibility. i think the feds are likely to wait here. >> do you think the fed would make a move before the election. >> yes. i do. i do. i believe it's back on the table. i believe that what has happened in asset pricing since brexit
12:42 pm
butts it back on the table and i think friday august 26th we're going to sit there glued to what's going on. >> is it a big so what though? if they did a quarter in september are you going to hide in the hills. >> absolutely not. >> i know we make a big deal of it. i'm the first guy to say i think the market overreacts to it. if they do a quarter in september they're probably done for the year but it's not clear it changes the risk outlook. >> investors and wall street could be caught off sides on it. jp maorgan was saying december. >> even after yesterday's comments that as crack the door open, just an 18% chance of a september hike right now. that's why i hate to give a plug here but that conference may be really significant this year when we're going to have a lot
12:43 pm
of feds speak at that. >> thanks. chi potly is on the move. >> back in the positive ter tear, this on the heels of multiple reports saying that the company is now going to open its first tasty made burger concept in lancaster, ohio. the reports there sites the spokesperson saying that that first outlet will come for the company. we've known for a while, we heard that they were going to get into this but now it says it plans to actually open this restaurant again in lancaster, ohio sometime this fall. we have reached out for a comment. we'll bring you more as we know details but that's what we know for right now and stock is rising toward session highs. a big deal in the cloud space today. there's some unusual activity in the options market. but first we're getting ready
12:44 pm
for power lunch live once again in philadelphia at the democratic national convention. >> at the top of the hour a lot of big names in philly, the democratic national convention, mark is lehere in the booth. we're looking forward to speaking to him ahead of hillary clinton's speech tonight. a mega deal in cloud space. we're going to talk about the stocks that could take over and is there a car crisis coming, what is ford's guidance signal. morgan's emerging markets will be next. halftime report is back after this. tokyo-style ramen noodles.
12:45 pm
12:46 pm
freshly made in the japanese tradition, each batch is small. special. unique... every bowl blurring the line between food...and art. when you cook with incredible ingredients... you make incredible meals. fresh ingredients. step-by-step-recipes. delivered to your door, for less than $9 a meal. get $30 off your first delivery blueapron.com/cook. my m...about my toothpasteice. she eveand mouthwash.ice... but she's a dentist so...i kind of have to listen. she said "jen, go pro with crest pro-health advanced." advance to healthier gums... ...and stronger teeth from day one. using crest toothpaste and mouthwash makes my... ...whole mouth feel awesome. and my teeth are stronger too. crest-pro health advanced... ...is superior to colgate total... ...in these 5 areas dentists check. this check up? so good. go pro with crest pro-health advanced. mom's right...again!
12:47 pm
we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. welcome back. want to show you facebook's shares. they're higher on the day and yes they had blowout earnings but the stock has reached
12:48 pm
session lows. rich greenfield the analyst on this program just a short time ago reiterating why he has a hold on that stock and call that he made earlier this week when he down graded it. facebook is off its best levels of the day. another stock we're watching today is kadmon. sam waxle founding it, his brother is the ceo. had a difficult day. the stock is a little bit higher today but still well below that ipo price. it's at $9.77 at this hour. a big merger deal today. oracle announcing to buy netsuite. shares are up 18%. dr. jay made his way over to the tell straighter. what do you see from unusual
12:49 pm
activity in this stock. >> not surprising we see a lot going on in the cloud space and it's not just zen and other big cloud plays. zen is one that i've been watching close bye but it's fireeye. it's down to $17. it's getting a lot of love today at the september call strike. so when you look at that stock, 6.5% today it's making a nice move with these september 19 calls. they started buying them right around here. let's call it 70 cents and have spiked them up over $1.05 and they're looking for more. there was a rumor about cisco. so there's a lot of chatter about that name. i bought it. i intend to hold it for at least a month because i love it down here in the mid teens and i think it could get into the mid to high 20s if indeed we get
12:50 pm
some m and a. >> there have been some insider buying by the chairman trading, over $4 million worth of stock has been purchased, but you look at the november 44 call, so they're going out a little bit of time, but right at the money. stock trading around that 44 level. buying november, 44 calls, over 6,000 of those trading. paying a couple bucks. i'm in this as well. i'm all the way out in november as well, so i've got plenty of time to hold on, but i'm going to hold on to these calls for a while. >> so since we're on the topic of health care, bristol myers, you own that stock, right? >> yep, love it. >> give me that one. earnings today. >> yeah, great company. the way all these guys trade right now, look at amgen yesterday. put out these great numbers, but it ran into the number. the stock pulls back. when you're talking about gileads, we've had some huge movement in some of these biotechs. when you look at bristol meyer,
12:51 pm
it is much more like a biotech, scott, than it is a pharma name. so because of that, it's going to be a little bit more volatile. >> i just wanted to say, on bristol myers, and some of the other health care names, where they're very expensive drugs, you have to be careful that they don't run into a political pushback. >> well, they already have. gold prices hitting a two-week high in today's session. we'll talk about that when we come back in two minutes. alk abs on their auto insurance. wouldn't a deal involve two parties discussing something? a little give, a little take. because last time you checked, your rate was just whatever they say it is. why not give you some say in the matter? or even better, let your driving do the talking. liberty mutual righttrack® finally puts you in control of your rates. all you have to do is connect, drive and save. in fact, safe driving could save you up to 30%,
12:52 pm
with 5% off just for signing up for righttrack®. and the discount is good for the life of your policy. to get started, visit a local office or call liberty mutual today at take control of your rates. visit a local office or call to learn more. liberty stands with you™. liberty mutual insurance.
12:53 pm
12:54 pm
welcome back to "the halftime report." i'm jackie deangelis reporting from the nymex. joining me now, brian studland and jeff kilberg. jeff, gold getting a bump, is this all based on the fed? >> it is. it's up 25 years year-to-date, jackie. they basically related the fact that the chances of them hiking rates in 2016 are slim-to-none. and slim just left town. so you put this in a very conducive environment to own gold, coupled with the fact that $180 billion a month of liquidity is being injected by central bankers worldwide, i think gold continues to go higher. >> brian, gold had a nice move post-brexit. can we reach those levels again? >> i think ultimately, by year end, i am looking for 1,400. i think we ran into a bit of a
12:55 pm
brick wall. i'd wait down until that 1320 to 1310 level. that's where i'd be a buyer of gold. >> big show ahead online. we're talking gold with ron paul. and we're talking to tom kloza about oil. 1:00 p.m. >> thank you so much. pete, you were noticing that big move in gold following the fed. >> second the fed came out, you look at the gold itself, all of that moving significantly higher yesterday. they're still playing in that space. and they've moved out in time in the silver stocks. you look at the silver stocks, as well as the gold stocks. i don't think it's over for any of them. >> i think that gold can go higher because of inflation. we're starting to see inflation in certain sectors of the economy and that's what will help move gold. >> coming up, just three hours
12:56 pm
left to trade. a handful of earnings on top. earnings that already came down the pike that we will trade as well when "the halftime report" comes back. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.
12:57 pm
when you cook with incredible thingredients...ato. you make incredible meals. fresh ingredients, step-by-step recipies, delivered to your door for less than $9 a meal. get $30 off your first delivery blueapron.com/cook. you've wished upon it all year, and now it's finally here. the mercedes-benz summer event is back, with incredible offers on the mercedes-benz
12:58 pm
you've always longed for. but hurry, these shooting stars fly by fast. lease the gle350 for $579 a month at your loca mercedes-benz dealer. mercedes-benz. the best or nothing. welcome back. i want to go back to pete. >> we've been talking about the chips and how great they've been performing. we had texas instruments. you look at qualcomm.
12:59 pm
we know how much, 68% of the revenue coming from apple. this is looking towards the future. this whole space right now i think is in play. i don't think the m&a is over. >> okay. >> if you're going to talk chips, i'm going to talk semiconductor processors. they reported yesterday, much better than expected. they spent a lot of dough for a new product cycle that is going to hit now. >> let's take a look at three companies that do a little buy, sell, hold. pete, whole foods. >> i think at this level, i think it is a buy. last night, i wouldn't have thought so, but they've absolutely murdered that stock. i think 360 is going to get them turned around. >> gopro, doc. >> i bought it. i bought stock.
1:00 pm
told twice as many out of the money calls. i'm still in it. >> you weren't sold, pete? >> i loved it, but i talked him into it. >> groupon. buy, sell, hold. >> sell. >> thanks for being here. appreciate it. >> thanks to all of you for being here. "power lunch." i'm tyler matheson. good afternoon, everyone, and welcome. we've got a trifecta, a hat trick, a triple play of battlegrounds today, from wall street to the race for the white house. a megadeal in the cloud. cloud wars. rising fear that a car crisis could be coming. car wars. and an escalating war of words between hillary clinton and donald trump, candidate wars. we get set to kick off the final day of the demti

127 Views

info Stream Only

Uploaded by TV Archive on