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tv   Fast Money Halftime Report  CNBC  October 3, 2017 12:00pm-1:00pm EDT

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>> yeah. market has been doing okay after the big gains yesterday. the dow is up for a fifth straight session. >> better than okay. >> s&p is looking for not just six straight but a rise in 14 of the past 17 sessions records on the transports, the dow, the s&p. >> and the small caps have joined the party which is key as we look ahead potentially to tax reform. >> let get over to the judge and "the half. baas all right. carl thanks very much welcome to "the halftime report." we'll be covering the averages and the new highs along with the russell 2000 we also hope in the wake of the hearing on capitol hill, wells fargo ceo tim sloan has just gotten off the hot seat that perhaps our wilfred frost will catch up with him as he makes his way down the hallway if that happens, we'll bring you the sound, if in fact we're able to get any if you missed the hearing, there were several fiery exchanges you heard elizabeth warren sort
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of the last voice there, but it was an exchange between the two, senator elizabeth warren and tim sloan that was one of the more memorable moments. >> i think the reason that i'm the right person to run this company today, notwithstanding your criticism, is because i have been making change at this company for 30 years. >> are you kidding you know, look, you've been there for 30 years and every one of my colleagues on both the republican side and the democratic side who have spoken so far have talked about a broken culture at wells fargo, have talked about the fact that the problem starts with leadership you made money personally off of it when you were asked about it, you did not tell the truth, and you tried to cover it up wells fargo is not going to change with you in charge. >> all right that was an exchange there between senator elizabeth warren, tim sloan the wells fargo ceo. we also have to have on cnbc today the company's largest
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shareholder, warren buffett. he said he still has faith in mr. sloan. here's what else he said. >> only enough to stay under 10% which was something that the fed requires, and since wells repurchases their shares and we were right up against 10%. in fact, we went over because we repurchased shares so we will sell enough to stay around 9.8 but that's still becoming a bank holding act. >> see the s.e.c. files that show you selling. >> we'll keep it below 10% we've not sold a share except for that purpose. >> i should let you know we do expect to get some tape turned around from our wilfred frost in a moment so you'll hear from tim sloan as he emerged from that hearing room on capital after facing a blistering criticism from some of the senators in
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that room, most especially from elizabeth warren also welcome into to pete najarian, have the gang all here, joe, steph, jon najarian pete, you recently bought wells fargo shares. >> yeah. >> i'm sort of wondering what your thoughts are as a shareholder. you know, buffet, okay he's not -- he hasn't sold any shares, but he said he's only, you know, he's keeping it only under 10% in that threshold that he has to have. >> yeah. i think it's pretty interesting. i'll throw something back at you. would you rather listen to the fact that senator warren's talking about the fact that it's a broken culture, or would you rather listen to warren buffett in terms of his analysis of the bank who says it's a terrific bank i know exactly where i vote and that's why i bought that stock around 51.50, scott. warren buffett has not been shaken out of the stock. says a lot about what he thinks is going on. >> josh is shaking his head no. >> warren buffett -- >> josh can shake his head all he wants but it's a $55 --
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>> he cannot sell 10% of the stock if he wanted to. there is no what i that he could say, you know what, i disapprove of this and then dump his holdings on the market he's too big in the name the warren buffett of old -- >> why didn't he reduce his holdings why did he not reduce his holdings given the fact if he thinks it's a broken culture, why didn't he at least take some off? i would ask you that question. >> i don't think he thinks it's a broken culture. >> right. >> i think he thinks it's a challenged company and he's often invested in companies that were great franchises and momentarily challenged i don't think he thinks it's a long-term issue, pete. >> right. >> so to that respect it probably isn't probably can be fixed and i don't agree with elizabeth warren, but let's not say. >> right. >> that warren buffett is giving this thing a vote of confidence by staying there he had to stay there oh, by the way, the market -- >> nobody has to stay anywhere. >> for right now he can't dump his whole stake. >> nobody has to stay anywhere if he thought that this bank had that many issues, josh, if he
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thought that he had to be concerned, he would have trimmed. >> he could have done that he did that with ibm and big blue he could have done it. >> when buffet triples, it's on the way out. keep that in mind. historically when buffet starts to sell, it ends when he's outof the trade >> the other thing to consider, and i think our colleagues on "squawk on the street" brought this up in a comment from jim cramer wells fargo had the multiple that it had and was doing the kind of business and the stock was where it was in large part because of the business of the cross-selling which got the company and tim sloan and the others, you know, some of whom are no longer there on the hot seat in the first place. >> 100% right. does wells fargo need to be re-raided in the market? >> it's flat year to date. the xl is up 14%. >> even further though. >> he clearly doesn't think so he's in the name.
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>> i think pete thinks in the low 50s there's an opportunity i actually think the stock is fairly valued where it is right now. i think the news is out. it's going to take time. i think you've seen a little bit of a spillover effect. the muney bond business is suffering with state pensions because of this, and i think it's in a stabilization mode pete might be right. you might see a little bit paf lift but i don't know if we need to negatively reprice wells fargo. >> stock is up 8% in a month. >> but it's flat on the year. >> it's flat on the year it has absolutely lagged. >> yeah. >> and i think on a relative basis, what portfolio managers are looking for is to outperform and this one is going to underperform i think the rest of the bank sector. it may not go down absolutely but on a relative basis at 1.5 times price per buck, it's not cheap. >> you agree that the multiple that the stock had by virtue of what its business was producing, a business that's now called completely into question >> well, no, i don't think the business is totally --
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>> that part of the business is. >> that part might be, sure, and they have to do a lot of investments in that business and they have a lot of fixing to do, and so to my point of this not being a relative outperformer, when a company has to heavily invest like they are going to have to and the cost structure is still pretty bloated. they have a 58% efficiency ratio, their goals were to get that to the low 50s, mid-50s they won't get there this year the story get pushed out a little bit in terms of operating leverage they have to fix the problem first. it always takes time but i don't think it's broken. i don't think this company is broken by any means. i just think it's going to lag there's way many other banks that you can own in the process. >> i 100% agree with stephanie that's the major point it's still a storied franchise, great assets it's not a broken business there's obviously cultural issues and there's no reason to expect wfc to re-earn that premium that it's just lost. it may not ever regain that premium to the other bank stocks
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again. doesn't mean it's a terminally bad investment but just means curb your enthusiasm. >> fairly valued what you said before if you think back to jpmorgan and the whale, what did it take, basically a year forthat to recover. >> didn't go much lower than that. >> pete, you have a different fundamental view about where you think this stock can go. >> right, yeah, and i think so far it's already been proven out a bit because we were talking about the stock at 51 and now here it's trading at 55 and i think there's upside from here, scott. if you look at the potential of what, and everybody on the panel is talking about they do have great franchise businesses absolutely no doubt about it i think that that can continue to be something, and because they had been lagging, maybe if they can put some of this behind them after listening to senator warren and everybody and all of the pitch forks that were out there coming after them today again, if they can put some of this behind them -- >> i mean, you act like some of it is not justified, pete. >> what? >> you act like some of it is not justified. maybe you have a problem with the messenger in elizabeth
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warren, but the message -- don't you think some of that is justified? >> pete's point as he has made is because warren buffett is a better person to analyze that company than elizabeth warren is, and he's got skin in the game elizabeth warren does not. so as i said, when i bought this thing, scott, as you recall, when they announced that whatever it was, september or whatever of last year, whenever all that came to light and the stock slammed down to 44, i said i'm buying it here aggressively, the reason i did that was that that was priced in, at least in my opinion now, it's proved out somewhat because the stock is like pete said 55 now. but when you're looking at the discount that steph addressed, which is very accurate, flat on the year versus would i rather have had jpmorgan for the year, absolutely so, in other words, that compression that you're talking about, the business segments that have been lost or are vastly underperforming there,
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that's why the stock is priced like it is right now in other words, i see upside from there, not downside. >> so, wells fargo ceo tim sloan, as i said, has just left the senate banking committee hearing room and he did speak with our wilfred frost let's listen >> very good to see you, tim do you feel like you got a fair hearing and did senator warren take any of your comments out of confection >> she definitely did take some of my comments out of context but i think the hearing was very good it allowed us to talk about the fundamental changes we're making at wells fargo. >> the focus seemed to be more on your time before you were ceo and what you did or didn't know then do you still feel there's more to answer on that topic? >> i don't think so. the focus -- the focus of the hearing was wells fargo one year later and i don't really understand why we spend as much time as we did talking about history, but we're able to get our issues out. >> thank you, mr. sloan. >> thank you >> scott, i'm going to pick up on that, clearly tim sloan
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pushing back saying senator warren did use some of his comments out of context when she was questioning him. there was one during the hearing in particular that he questioned her about, something he said in july 2016. i found the original interview it was in "american bank" and you would have to say that those comments weren't in fact taken out of context by senator warren the issue though where he perhaps would have grounds to argue is the way in which she argued for quite a long time that his comments that he cared about his employees were false because he was in the middle of a cost-cutting program that will would lead to some people losing their job, so there's a nuanced arguments here, but unsurprising to see senator warren at the front of the questioning once again. he said at the end, tim sloan, he felt this went very well. i think it's hard to claim it went very well, but it's easy toe claim it went very much better than it did for his predecessor john stumpf a year ago. >> considering one is no longer in the job and one of them is.
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>> thank you very much, wilfred frost in the hallway just outside where the hearing was being held. >> look, it's hard for -- it's hard for the ceo to take the brunt of all of this, but it's hard for him not to be put in that position because, look, this is not like, oh, arthur anderson and they had this one rogue office in texas doing shading things for enron and how could you tar the whole arthur anderson nationally? they ended up doing that in this case it's a national boiler room space. it's identity theft on a commercial industrial scale. >> that's why i'm thinking when -- >> it's every region of the country. >> with all due respect to mr. sloan, when he says, you know, i wish were were talking about wells fargo one year later rather than the past, the reason why we're talking about what happened in the past, a, that's the reason why you were called on to the hill, and second is that it was such a sizable and outrageous event that took place within wells fargo. >> we have viewers -- we have
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millions of viewers who are small business owners all over the country. you say to yourself, i'm a small business own other can you imagine if i had something like that going on, what the consequences would be there's no hearings on capitol hill you are out of business the next day before they even prove you did it, just the accusation you're gone. we have a handful of banks in this country that have grown to a certain size where that's just not an option, so these hearings are really the only thing keeping that kind of behavior in check sometimes. it's sad, but it's a fact. >> let me spin it this way from an investment standpoint wells has gotten a nice bump of late and people are buying banks. anything deeper beyond that that takes this stock higher in the near term in. >> in the near term i don't think so but in the longer term, medium term, yes, and it's the efficiency ratio i talked about. they have very aggressive goals to get their bloated structure, overhead structure down, lower, and i think over time that is going to happen. that's a real opportunity to see
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positive operating leverage. the problem is they now have to invest a whole heck of a lot in fixing aural of these problems so that's just pushed out, and that's why i say medium and longer term, i think that there's upside in opportunity. short term, i think it's challenging, and i also think other banks will outperform and as a pm long-term investor, okay, you can stay patient with wells, jpmorgan, goldman sachs, name of the list, there's a lot of them. >> will, do you have a thought on that. you know this company as good as anybody does. >> i think the key point to focus on at this stage is that the bank happens already settled with the cfpb. it has already passed both the quantity tative and quantitative part of the tests and even though the stock has declined 30% relative to the bank's index that's come almost purely from the multiple moving down, not having a significant earnings impact so the question at this stage of what happens next is whether the fed does decide to
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act to remove more board members. they do have the power to do that and only 3 of 15 were recently removed and whether the political pressure, the media pressure following a hearing like this which obviously elevates the focus once again lead to the scalp of the ceo in a similar way that it did a year ago, and the question of what that does to the multiple again of the bank share price as opposed to the earnings itself which haven't really been hit that significantly. >> joe, i think were you going to make a point. >> can we get an intraday chart. >> we're around the lows of the day for the stock for wells. >> we're talking about a waiting game for wells and you're asking what's the catalyst time is the ultimate catalyst for them there will be a moment when you see outperformance for wells fargo relative to a city or bank or jpmorgan and while time is allowing them toll stabilize you're witnessing them a year where cities are up 24%. jpmorgan is up 12% and bank of america is up 16%. that's where the momentum is that's where the earnings
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r.that's where the money is going to continue to go. pete >> right you follow the money you follow the money i absolutely do. why i own bank of america and citi and own and bought back the xlf. joe brings up great points their opportunity is created by a situation when you think something has been oversold. that's why i thought wells fargo was an opportunity i felt as if it was oversold it got down to that $51 level. we talk about 1.3 times book that's when that stock has been basically stopped and started to move back up again we've already had an 8% move i think there actually could be moves that could go with the rest of the banks from here. we've already gotten the 8% so i think there's more upside because of that. so i think there's opportunities always in the market, but that's a great point joe brings up. those are stocks most of us already do open. i own those. i look for the torque, and i think wells fargo created an opportunity off that have selloff just like jon was talking about the opportunity a year ago as well. >> the other issue is if buffet
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ever does decide to sell or take down any part of his stake, he's not going to call you up, pete, and tell you, hey, by the way, pete, you know i'm selling, chuckle, churningle you'd be surprised we're pretty good buddies. no, you're right he's not going to go out there and call any one of us to tell us he's taking off his position, but certainly if you can look at what's going on right now, if you look at -- instead of putting this in a microcosm, look at the bigpicture of what's going on in the stock 165 million account, scott, 3.5 million of those had all of these issues going on with the unauthorized and all the rest of it, so if you look at it on a percentage basis, that's not a huge percentage, right, so it's not as if this entire bank had absolutely collapsed and there was -- and the issue was widespread throughout. it's a big sample set when you look at it and say 3.5 million accounts, 4 million accounts, whatever, but when you really look at the big picture, i think that did create opportunity and then steph was talking about
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middle and long term, absolutely i think that exists. they can get back to a 1.6, 1.7 times book which will put this stock significantly higher. >> appreciate it see you back here tomorrow in the meantime, as you may know by now, the president recently landed in puerto rico. it happened within the last 30 minutesor so here are some comments that president trump made on the ground in puerto rico moments ago. >> i hate to tell you, puerto rico, but you've thrown our budget a little out of whack because we've spent a lot of money on puerto rico and that's fine we've saved a lot of lives >> reporter: okay. i've got to tell you that is a comment that's not been heard here in the command center where people are actively working on helping getting puerto rico back up on its feet, but it's one of the issues that the governor already sort of
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tackled today. he said, look, we want to be equal to harvey in texas and irma in florida. what happened with puerto rico and maria was devastating. it's going to cost a lot of money to get back on our feet, and we want that aid from the federal government to come and help us get back up on our feet, and blaming puerto rico for throwing the budget out of whack is not likely to add to trump's popularity, especially because the tweet storm over the weekend with the back and forth with the mayor, the president said about the san juan mayor that her recovery disaster response was awful and had a lot of criticism there and people on the ground, while they may have agreed before the president tweeted it, the optics of him being at the golf course and her being out and helping people, it just didn't go over well here, scott. >> you know, contessa, to your point. is the mayor involved in any of the official events that are happening within puerto rico today? >> reporter: yes she has been -- well, yeah
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for one thing, she's at the briefing where the president just was they saw each other. they shook hands and before the president left washington, d.c. he said oh, she's come around. she's sort of changed her tune was his message, but she hasn't been in the two briefings i've been in with fema and general buchanan who is now the dod lead on the ground here in puerto rico and with the governor, the mayor hasn't been here she's been out at the distribution centers we've seen photo-ops of her wading waist high in her water to get to people and she's been out saying look, lives are on the line we can't play politics right now. open lines of communication with the federal government is what's most important so of course i'm going to go at the president's invitation to meet with him. >> do we also have any indication of whether the president is going to get a larger view of the swath of damage from the hurricane or if he's going to remain mostly in the san juan area? >> well, the governor had just said this morning, look, we have no details about how or when the
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president will get a look at this, but we have since learned he's planning to take a brief aerial tour. he'll be able to see the lush tropical mountains that, you know, when you fly into puerto rico, normally they are green, and instead now they are so barren and brown he'll get a chance to see that he may see some of the gas lines, but it's hard until you get on the ground and you're driving these back roads, it's hard to get a sense of the desperation, and also the magnitude of the damage. the whole island was walloped by maria, and you cannot drive a mile without seeing evidence that the storm has crippled the way this island functions. so, again, a brief helicopter tour, he's going to land on the "u "uss kersage" and he'll meet with the governor of puerto rico as well and he'll meet with some
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of the armed forces there at the "kearsage," the navy ship that has come in to respond to the efforts. >>onss ctea brewer following the events in puerto rico for us we're back in two minutes. listen up, heart disease. you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies, and data without insights. and fragmented care, stop getting in the way of patient recovery and pay attention. every single one of you is on our list. at optum, we're partnering across the health system to tackle its biggest challenges. your bbut as you get older,ing. it naturally begins to change, at optum, we're partnering across the health system causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain
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welcome back more coverage today on the food stocks including dominoes,
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darden's and wendy's, all buy waitings mcdonald's and chipotle got holds. we'll make these our call of the day. stephanie link, what do we think, domino's buy, darden buy, wendy's buy, yums buy. yes? >> i think consumers is hard and i look for self-help stories, especially in the restaurant space because it's so challenging in the moment. commodity costs are going up and then you'll have employee costs going up, so i think that overall i'm looking at yum i've owned it for a while. it's had a very nice run and they are refranchising the business so that should lead to more stable cash flow and more efficient operations and the stock trades about in line with mcdonald's which i think is a good story and restructuring story as well, but i think it's much more liked at this point. i think it's a little bit more overowned than yum so i think yum is one that still has legs to the story. >> i mean, obviously, i'm going to agree with the domino's call. last year domino's was an
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excellent trade for me held it most of the year, as you guys know. we talked about it quite a bit and it's the millenials with mobile ordering and the attraction to that the disappointment i had in myself is you had a pullback in domino's in august down to 170 and i missed it. right above 200 again. i don't know if it goes back to 170. >> darden, strong unusual activity buying way upside calls. i think they were buying january 92s with the stocks around 80 bucks. >> the price target here is 92. >> that was a week ago yesterday it was yum brands and they were buying in the money calls with yum brands. big unusual activity in both of these names in the last week. >> okay. we went through the charts on these. to give people some sense of a trend and what looks like it could be working out right now, and so when you do that, there's not a lot to love here. >> not for many of these names. >> buffalo wild wings looks awful until you look at chipotle
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which looks way worse. papa john's is as i'm talking breaking key support that. one is going to look a whole lot worse than today. >> maybe you're making the case for domino's. >> bear with me. >> sorry, sorry. >> the two that look, and it's not a coincidence. mcdonald's, psychologically tough to put new money to work there, such a huge outperformer, i can't bring myself to do t.domino's, agreeing with stephanie and agreeing with joe, this is a name that had a very much-needed correction 20% between june and august. that's substantial a lot of hot money came out. new investment money came in to replace that money and now you are starting to get back above those levels that one i think structurally on the charts looks the best for continued upside. >> it will be interesting to see though if yum can fix pizza hut and if they can fix pizza hut a little bit. >> you make a great point. >> then domino's has a competitor
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domino's is way ahead. i'm not comparing the two. if you get a little bit of momentum at pizza hut i wonder if that takes some of the sales and momentum out. >> one thing to round this out, what do mcdonald's and domino's have in common these are the two companies -- mcdonald's and domino's have both done the most investment in upgrading the quality of the food and have done, in my view, the best investment on the mobile app which i think joe brought up, and so i think it goes to show the stocks that look the best right now in this space are the ones that are really trying to give the customers what they want and not just trying to maximize earnings today. >> taco bell put up an 8 comp in the first quarter. put up a 4 comp in the second quarter. >> fine, look what it's tied to. >> yeah, but talk about the product. they have the product. they have the sales. they have the traffic. the two barriers to fix are kfc and taco bell. if you fix the other two pieces,
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and you have a gem and restructuring and i think that that at least is a story within the restaurant space. >> i want to run from the segment. starbucks, initiated hold, nobody talked about it. >> no-man's-land. >> a lot of folks watching and own this stock. >> a lot of people own dunk-in as i do and no-man's-land. frustrating. ready to get out of it. >> i think people think they have to lower numbers one more time and if they do that it's safe to get back in. >> the race to become the next fed chief is heating up. president trump meeting with two candidates last week, including cnbc survey front-runner kevin warsh, senior economics reporter steve liesman has been doing some digging and finds mr. warsh would bring controversial opinions to the fed. >> food to the fed, you guys are really on top of it. >> people talking about kevin warsh would be to the fed what betsy devos is to the department of education or scott pruitt to
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the epa, an agency head in direct contradiction with the administration warsh reported as being a top candidate. >> changes are in order in how the fed organizes itself, conducts its business and deliberates policy choices the existing governing structure enforces a group think and places the fed at considerable institutional risk when the next crisis strikes and makes the next crisis more likely to be harmful. >> here's an encapsulation of some of the thoughts from kevin warsh. one is the fed should have exited low rates and the big balance sheets long ago. he focuses too much on decimal points when it comes to inflation ranges and he wants the fed to focus on whole numbers and less on the latest economic data and market reactions. critics point out he's fond of blasting the fed and short on
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how many he would fix it he's been criticized by several economists, including former treasury secretary larry summers, for his contention that the qe depresses business investment summers called it in 2015, quote, the single most confused analysis of monetary policy i've read this year the gloves are off a little bit. >> okay. >> on this particular man. >> war, goes to the president and said the fed waited too long rates should be much higher. >> he doesn't say that i'm with you, scott. >> kevin, have you seen the s&p 500, booby, look at the s&p. >> trump is a professional debtor he loves debt. he loves to take on debt and loves to restructure debt. >> that's why kevin is cagey on the implications his own policy. he sounds great as erudite as any person i read criticizing the fed which i would say with a
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lot to think about he never goes that next step and says, okay, therefore, ergo, here's what i would do. >> he'll never do it. >> do you agree because josh brought up excellent points yesterday. if you think about what he has said, the markets should be a little bit concerned about him coming in if he acts on it josh said yesterday, which is a great point, once he gets in there, what he shade might not actually be what he actually implements. >> let me tell you one thing the market might like. you have sat around the table and talked about the communications cacophony out there. it sounds like kevin would be a little bit more on top of that, a little less fed speak out there. >> love that. >> and maybe a little less transparency which better or worse could mean more like the volckerdays where you're guessing a little bit and more focused on the chairman, but, yes, i think he's more of a hard money guy. donald trump has to make a decision what kind of fed does he want and why? and the decision about the chair will flow from that rather than picking up -- >> he wants the kind of fed
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that's going to keep the economy getting bert and the stock market going up. >> yeah, that's right. >> excuse me. >> i'm not sure kevin warsh is the wrong guy for that. >> he wants the type fed chair that will not do that went on under lbj where there's a fight over where -- when rates should go up and how soon. he wants the type of fed chair that says yes, mr. president i think rates should be this high you're right, mr. president, i'll do it every single thing that we've seen from this administration tells us that is what he really wants. >> one thought here. >> and then i have one last question for you. >> my reporting is that jay powell, the federal governor, is a top contender and the way i hear him talked about with kevin warsh is on power. i'm not hearing people who oppose poulin personally but hear a little bit of internal opposition to kevin warsh. kevin not put on the board, we put him on the board a month ago, has now become a top
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contender, maybe a middle ground between hopes who is want a change in policy and a continuation jay powell may be that kind of guy. >> last question a day of hot seats, sloan and the former equifax ceo on the hot seat the chances, what is the percentage change that yellen is reappointed in your mind now through your reporting in. >> our poll shows it's a 38% chance and i had somebody richard fisher said this morning. >> what's your own gut tell you? >> more like 20. i think donald trump is going to want to put his own stamp on the federal reserve. i feel like he's that kind of guy. i feel like he's not going to want to say yellen is my person because yellen is not his person, will never be his person he will reappoint her. he can never own that appointment as something and i think that's the kind of person he is, although i think the market would favor that reappointment. >> steve, thanks. >> pleasure. >> steve liesman a lot of unusual options activity, as usual and today it's in the airline sector jon najarian will tell us which
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stocks options traders believe are about to fly plus, philip 66, lenar, walmart, paychex, they are in the blitz coming up in a couple of minutes.
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♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone
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back on "halftime," dr. j at the telestrator and always in search of signs for opportunities in the options market three airline stocks which one are you starting with? >> starting with jetblue, you're right. they came for all the airlines this is sectorwide they are buying stock. they are buying options. jetblue, look at that. it's already pushed. it's of% today and which calls are they buying, october 18's and november 20. these calls give them the right for the next two weeks to control it at 18 which now it's in the money call and then they have the november 20 call as well a look at the next one even further out we've got southwest. southwest. they came in and they bought january calls, bought big lots in there as you know, buffet, this is one of the ones that he likes. he's still got united though he's trimmed a little bit but southwest, he's got a ton, and these guys are buying a ton of calls in here.
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so stock value, option value, buying out of the money and so for, love this action as well as when you take 2 bucks up 3.6%. lastly take a look, american airlines aal, the one i fly all the time this one is up $2.15. it's been a widow-maker between 50 and then slamming back down this time we're targeting right there, 55.56 on this shot right here that came in buying november 15 calls so upside calls in all three airlines. united's got some. just not as heavy and that's why i cited these three. >> didn't realize the private jet had the same ticker symbol. >> jet smarter and american airlines, kind of flip back and forth. i got in the plug. >> just giving you a hard time come back over here. now to sue herera with the latest headlines. >> her he's what's happening at this hour, everyone. a feat of heroism to tell you about during the las vegas shooting tom macintosh was shot in the
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leg, and he was helped by a total stranger, james lawson who was an army reservist. he helped with macintosh's tourniquet and accompanied him to the hospital. mac-says he would have bled to death if not for lawson. >> you were bleeding out you feel like you wouldn't have made interest. >> i wouldn't have. >> if someone hadn't stepped in? >> by the time i got over the wall may pants were soaked and shoes full of blood. i wouldn't have made it. i'm very thankful that james was there to help me >> fiat chrysler is recalling more than 700,000 jeep and suvs because an improperly installed brake could let water in and former intel ceo paul otellini has died in his sleep he was a lifelong intel employee serving as chief executive from 2005 until he retired in 2013.
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the in its 49-year history intel has had only six ceos and otellini was the fifth he was 66 years old. that's the news update this hour scott, back to you. >> sue, thank you so much. well, the nasty proxy battle that procter & gamble just hit a new level as former ceo a.g. lavalle weighs in with a letter aimed directly at activist shareholder nelson peltz leslie picker with more as the clock ticks down to the october soth shareholder's meeting >> just about a week to go i spoke with lavalle earlier this morning and he had some choice words the legendary former two-time ceo of procter & gamble has officially thrown his hat in with management in the company's fight against nelson peltz cnbc exclusively obtained his letter titled "this is too important. i'm taking the gloves off. he says he's voted his $70 million worth of shares in favor
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of p & g's current board and is against adding peltz to it the board. lafley writes mr. peltz and mr. daley are clearly out for number one they certainly don't represent me, a long-term shareholder. he calls their reorganization plan a, quote, step backwards and says of their digital acumen that they would be the last two people in the world that anyone would call to get any insight on digital and e-commerce but phone lafley said peltz's fight is a few years too late. that perhaps bill ackman's timing was a bit better when he took on p & g. ackman pushed for then ceo bob mcdonald who was replaced by lafley in to is. the letter reflects increasing desperation at p & g and support was solidified from all three proxy firms and with a week to
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go until the vote it's not surprising to see the fight heating up. >> david faber has made the point several times i think through this whole saga that retail is such a big part of the vote, a heavily held retail stock. >> it is. >> 40% of the float which you almost never see in a dow stock to have so many retirees in cincinnati with a few thousand shares and important votes. >> important votes but they tend not to vote. >> open the mailbox and pay a little more attention to it and check off for either side. >> peltz has said i think publicly that he thinks he lost the dow vote because he didn't do a good enough job with whatever outstanding retail. the thing about these companies that exist for 100 years and the tell phonocompanies are the same is that their employees that did hold the stock, these are the kind of people that do vote. these are like the kind of people who write letters to their senators, so these are not like let's say a technology
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stock and everyone owns it through an etf and you don't have this generations of people who have passed down these shares in this case you really do have that. >> right i've gotten more e-mail traffic from retail investors, and more than any fight i've ever covered. >> as engaged as perhaps we think they are leslie picker. the blitz, phillips 66 hitting a two-year high. goldman upgrades it to a buy. >> 109 price target rather than 88 and rather than telling you i was wrong on refiners let me tell you what's the best moving forward, amd v. >> lennar beat the top and bottom line. >> about to break out above its earl el summer levels and if it does and holds there, i want to be long hand not out. >> walmart acquires parcel stephanie link, the last mile delivery company based in new york. >> doing a good job making acquisitions in the digit-at-strategy.
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so/10 is the day they meet with investors. i think it's positive. i think the stock trades up into that i would actually take some profits on that day. >> paychex comes up most recently because of adp and ackman but paychex is up today, earnings beating expectations. >> beats on top and bottom line. the stock trades right up against the 52-week high still looks good. >> next up, our "halftime" quality earl report. it's judgment day here as we see which picks hit and which missed for the traders in q3. first, let's see what's coming up on "power lunch" with my colleague brian sullivan hey, ri. >> coming up on the show, warren buffett says the stock market is not expensive. bank of america says they are seeing warning signs we debate who may be right plus, get this, a top tech fund manager gives his best stocks for the next tech boom and apple is not on the list we'll show you who is. the ceo of hbo lays out how he plans to follow up the massive hit "game of thrones" and, of
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course, the very latest from the las vegas. all thathe aad on "power lunch." more "halftime report" right after this like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over $120 billion dollars in real assets. partner with pgim. the global investment management businesses of prudential.
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welcome back we are taking at lock at some of the trader's most memorable calls from q3 in our "halftime" quarterly report first up, sfef any long hand jon. >> there's a new position i just added to, abbvie, a great
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pharmaceutical company, great pipeline, margin upside. >> tes larks i really do like after this significant correction, and people shooting against them i like it. >> all right stephanie, we'll start with you. bought abbvie. up since september 5th. >> had a nice run and a favorable patent ruling with amgen so it looks like their key drug will not see competition until 2022 which is a god thing. they have a very strong pipe loin hand margin upsidech the interesting thing this stock trades at 14 times forward estimates. it's still cheap and you can still own it let the dust settle a little bit and still buy it i think maybe it goes to is hundred. >> it's still cheap but up 18% in a month. >> let the dust settle. >> what does that mean, let the dust settle? you're not taking any profits in it >> no. i would like to buy it. >> telling people not to buy it. >> it's had a nice run. >> i've got it >> it's still cheap so i think
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you can buy it but a lot of fast money is in there, let the dust sell and then buy it but i think it goes higher. >> fast money, doc, tesla up 5% since you made the call. had the delivery issues and now with the rocket he'll be able to get you on the planet within 90 minutes. >> seriously, what are you doing with this? are you still in this? >> it went from roughly 325 to 380. now it's 344. it's getting down to a level judge where i'd like to buy some tesla here. like i say we've all joke about some of the musings of elan musk. >> they don't deliver the cars they say they're doing to deliver. >> right. it was going to be the mother of all production issues and it is turning out to be that. we'll see exactly how fast and how many -- >> he was only off on september deliveries by 80%. i don't see what the big deal is. >> apparently not much because the stock is up 60%. >> i think it doubled to 390.
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i wouldn't be in this. i don't care what he's problem for next month or next year. the worm might be starting to turn on sentiment there. >> not all of the traders picks worked out just yet. >> nope. >> bed, bath & beyond is just the spot for kids going back to college. this is kind of like christmas for them as far as the retailers. >> i do like they're seeing an optical. given that you're going to see spend pickup in at&t and verizon. i do think you'll see better margins as a result. >> some good, some we'll see. sienna's down 5%. >> the story is so good and optical for them. but they can't execute consistently and that is the reason why this thing is so volatile. if they beat the quarter, it's up eight. if they miss it's down ten. i don't think the story is dead. i'm going to stick with it. i think 2018 sets up well and i do have operating margin
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improvement upside as well. >> doc, bed, bath and befuddled. >> right. i said this was their christmas quarter, judge because of all the back to school stuff. these guys got a lump of coal, so did i, because the stock was roughly 26 bucks back then now it's 22 so that's a bad call. i'm not in the stock right now but i would look to be in if i see something percolating in the next couple weeks i'd love to get back this. >> the dollar is on the move. futures now is on deck. we will do that when we come back after this quick break. what started as a passion... ...has grown into an enterprise. that's why i switched to the spark cash card from capital one. now, i'm earning unlimited 2% cash back on every purchase i make. everything. what's in your wallet?
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welcome back to the "the halftime report." we are watching the u.s. dollar today trading near 7 week sky. scott nations, interest rates over the last month giving the green back a little bit of a boost. we going to go higher? >> i think we are. you're absolutely right, jackie. people overthink the dollar. 90% of the dollar's move has to do with relative interest rates here and mostly in europe. the dollar's gotten off the canvas and continue higher. >> jim, we're over 93, what is the next level to watch? >> so, the six month chart shows that the down trend is clearly been violated. i'm still positive it's going up to 96. however in the shorter term, that 93, 90, 94 level turned around. so i expect the consolidation to
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go into the low 92 before it turns around again. >> check out the live show today. plus we're joined by scott redler who says the recent pullback in crude would be the best opportunity to buy. that's all at futures now. "the halftime report" is back after this. well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. becareally want to be there, but you can't.
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market's close in three hours that means it is time for final trade. dr. jay, you, are up for the.
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>> aeri pharmaceutical. this one has strong unusual activity. it doesn't usually have much of anything. they're buying it big today. >> okay. josh brown. >> if you just tuned out all the noise and did nothing else but focus on weekly closing price of the all country world index, new high as i'm speaking right now, broke above over a year ago, the 200 day moving arj has not even kissed it since. why are you listening to anything else? why you waisting your time with other people's noise pollution this is what you focus on global pull market. >> okay. >> you want a tissue. >> follow that. >> following on that. >> also listen to stephanie like i always do. >> abbott labs. they spun out abbvie and they got approval for lennar. they made that acquisition. i think there's upside to the sinnergy for that story. stock is attractive. above average growth. i like that one.
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>> keep the other half. >> how about citigroup and jpmorgan. >> jpmorgan, back to the ipo. >> almost to 97. >> looks fantastic. >> how about yankees-twins tonight? >> let's go yankees. that does it for us. "power lunch" starts now. >> here's what on your menu. the death toll in las vegas at 59. the investigation into the tragedy continues. shocking new details emerge about the killer plus wells fargo ceo grilled on capitol hill earlier today. equifax's chief set to testify next. a senator will join us on what he plans to ask the ceo on america's biggest data breach. president trump in puerto rico as this hour. many are still without power. is there a new front-runner to take over the fed from janet yellen. the short list may be growing a little longer. i'm brian sullivan. "power lunch"


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