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tv   Fast Money Halftime Report  CNBC  October 17, 2017 12:00pm-1:00pm EDT

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>> disney and nike, a lot of those kids portfolios that people set aside when the baby's born >> lump those in with apple, all associated bob iger on the apple board. >> ibm tonight i assume you'll have your eye on that, right, jon? >> of course >> let's get over to the judge at hq. and welcome to "halftime report," i'm scott wapner. our top trade this hour, finding value in a record breaking market with the dow crossing 23,000 for the first time ever earlier today, which stocks can still deliver for your money with us for the hour to discuss and debate that, jim leeben that will, john and pete najarian we begin with one of the best past performing of the decades, bill martin beaten 99% of his peers over that period, he is with us today with two eye opening stock picks.
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bill, welcome back it's been a while. good to see you again. >> thanks for having me. >> you look at the stocks that have taken the dow from 22 to 23k in only 76 days and it's boeing, cat, home depot, goldman and i look all the way to the bottom of the list and the worst performer is general electric, a stock you say you are buying and it has become now a contrarian call because nobody seems to like it anymore why are you buying ge? >> well, i guess it shouldn't be too big a surprise that a value firm like oakmark is buying something that is tremendously out of favor we think this is a very different company looking forward than looking back. new ceo john flannery is going to be very focused the return on invested capital and capital allocation both within the income statement and on the balance sheet we know there's a big earnings reset coming the stock wouldn't be trading at 23 if that weren't the case. but we believe from that number this company is going to show much better than average growth, that they have higher than
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average quality businesses most of their income coming from parts and services so we think this is a business that deserves to get back to a market multiple, if not a premium. >> you mentioned the new ceo, john flannery, we talked with bob nardeli last night at 5:00 on "fast money," he of course former and long time ge executive. want you to listen to what he told me about ge we can discuss on the other side >> one of the challenges for john is -- john flannery is, he's got fewer cards in the deck to deal with, so he's going to have to -- you know, what's always worked for me, scott, is a strategy of enhance the core, extend the business and expand the market that's why we went from 4 billion to over 20 billion in power systems in our five-year period. >> i mean, the implication there, bill, is clear. i mean, you're looking for flannery to pull some levers that some like nardelli wonder he has the ability to do that now. >> well, i think the big
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question is the starting point this company's not going to earn $2 next year like the prior ceo committed to do. so from that perspective it's going to be a long time until ge gets a $2 plus earnings number on the other hand what john did when he ran the health care business at ge is not that different than what he faces running the whole company now. you had a business that was losing sales, it's margins below industry peers and he cut costs, got margins up to reasonable levels and started growing volume again there's not a magic to that. it's just running business better. >> what about the dividend is the dividend at risk? and how much do you worry about that and it is dangerous, i guess, is the word i'm thinking of, to talk about this stock and perhaps even recommend it ahead of what could be a dividend cut? >> well, i think first any company that's yielding 4% in a market where the ten-year bond is 2 and change, you have to think there's some risk in that
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dividend or it wouldn't be priced like that at oakmark, we aren't really preferential to whether we get our returns through dividend or capital gain, so we aren't owning this because they pay a high dividend. we're owning this because we think they can improve earnings and the p/e multiple will go up on that. if somebody's owning it purely because of the dividend, they might need to reconsider whether or not they want to own this stock. >> understood. i guess what i'm implying is if they cut the dividend, the stock's going to get hit hard. you know that. >> i don't know that. >> you don't think if ge cuts the dividend the stock will go down >> i don't know. some people will sell. it depends on what they decrease the earnings estimate to typical company today is only paying out 50% or so of its income as dividends. we know ge is not going to earn something north of $1.80 next year. >> got guys on the desk who, i
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mean, visibly almost jumped out of their seats, bill, when you said you weren't so sure that the stock was going to get hit hard if they cut the dividend. i have some of them here who wants to jump into the conversation. >> so i guess, bill, maybe what you're doing is you're accumulating now but reserving the ability to accumulate more if and when they do cut the dividend because of course the stock -- you might say it shouldn't drop and then cut the dividend, people should have known that. okay, that's fine. but we know that's not how most people operate in this world but the bigger issue is why do we think it's so out of favor? maybe it isn't it's a 20-some odd p/e ratio on trailing, granted the earnings picture for a while. the average price target is $28. i don't know that it's sold -- i mean, the chart looks terrible, but maybe it's not as out of favor as it could get, i guess is what i'm driving at. >> obviously it can always get more out of favor. we think this is a company that
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within a couple of years should be able to earn somewhere between, you know, in the mid ones, call it a buck and a half, that should sell premium to the market multiple on $1.50 of projected earnings it's, what, 16 times, that just doesn't seem like a high enough number for business the quality of ge and we're speaking to somebody who my first 20 some years at oakmark we never owned ge. we always thought you could buy the component parts cheaper than the company. you could buy a good industrial and a good financial and pay a smaller combined multiple than where ge is selling. that's just not the case anymore if you look at consensus numbers out a couple of years. >> how long have you been buying the stock, bill? >> we started buying it almost two years ago when it was about this same price. and clearly made a mistake not selling it six months later when it was in the 30s. >> right and then more recently you've been buying it again once it got
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down to current levels. >> we've been adding to it into this decline. >> yeah. you know, the other stock that i find, you know, eye opening to talk about today from your perspective is here you are a self-described value investor and you're buying netflix, a stock that is never associated with value stocks nor value investors. why? >> right and before we unleash the style police on oakmark, 30% of our portfolio is still financials, low p/e, low price-to-book but i think you have to acknowledge that there's some businesses that a current p/e just doesn't lead you to a reasonable estimate of the business value and we think netflix is one of those businesses i think it's interesting when you look at other subscription services in the audio and video area, like sirius xm, like spotify, like hbo now, those
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companies all sell their services at over $15 a month netflix before the price increase they're talking about now is at $10. and if you ask people who subscribe across the board to those which of those is the least valuable service, they never say netflix. we think there's a lot of latent pricing increase availability here and if you think about value per subscriber, netflix is selling it barely higher than the price that at&t is paying for time warner implying the value in their hbo franchise. so we think the only big issue here is at some point netflix will decide that they can't grow 28% a year anymore and subscribers by underpricing the product. and then they'll let prices migrate to the level other services are already at. if netflix charged $15 a sub, the p/e would be about a market multiple right now. >> uh-huh. i have a question on the desk
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from jim. >> hey, bill listen, i'm not wearing a badge, so i'm not the police, i'm a value investor like you, i look at netflix all the time. how can you not look at this stock given what it's done the risks that i see as a value investor and i'd like you to address these two risks if you would, one is the price-to-earnings multiple, and you do a very good job in your commentary, that's a very good story about the analyst said raising 50% prices, but what if the market just one day says it's a fabulous company but it shouldn't have a one hundred times multiple, 80 times multiple is enough so nothing else changes, but just the market says maybe not 180 -- 100 times but 80. and then in conjunction with that because that doesn't just happen out of the blue, when you enjoy pricing power like what you're talking about with netflix and like what we've seen in the last month, that generally from a capitalistic point of view begets competition. so do you worry about somebody competing with them, seeing these margins, seeing the
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pricing power and at least taking some of their business away >> well, unfortunately that's something we worried a lot about a few years ago when netflix was a lot cheaper and other video subscription services were spending so much more on programming than netflix could spend. when you divide by the larger denominator, price person scriber on that programming is much less. but the size netflix has grown to now, it's spending more than twice on content what hbo is spending and yet it comes to less per subscriber because the base has gotten so large so i think it's going -- the mote netflix has created is already large and it grows as every day goes past. as for the risk that the p/e multiple falls, again, we don't think that's the relevant measure or the relevant metric for valuing netflix. but any stock we own could go down 20% and pretty much anything in our portfolio if it was down 20% like we've done
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with ge, we want to be increasing our position. >> before i let you go, bill, why don't you just comment on dow 23,000 and just the difficulty of being a value investor in a market that almost goes straight up. >> well, if we look back nine years ago at oakmark we were selling stocks that were at our buy target because other stocks were available at half our buy target those kind of opportunities are unusual. and they're a distant memory today. but if you adapt to what the alternatives are today, i don't know how you can be so concerned about the s&p multiple being 15% above long term averages when you think about the bond, ten-year bond as a p/e multiple it's selling about 90% above its long term averages warren buffett was on here a year or two ago saying he'd
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rather buy a good business at 20 times earnings than a bond at 40 times. i think those are the alternatives people have today business value grows every year. dividend yields are higher than they are on bonds. most people aren't even at their target asset allocations because they sold at the bottom instead of buying. so i don't see the excitement. i don't see the excesses that we typically worry about at market peaks. and going from the bottom up on a stock by stock basis we're still finding stocks we want to buy. >> yep we'll talk to you soon thanks for being here. bill nygren from oakmark let's get to eamon javers at the white house with breaking news. >> we're getting a clearer picture on when the president plans to make a decision on the fed chair. source familiar with the decision making process tells me that the president will make his decision before he leaves on his asia trip on november 3rd. the president is expected to decide by then, that's not a guarantee that he will we're also told that we're down to five candidates for that job.
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he's going to meet with janet yellen on thursday to interview her, and when he does that after that interview he will have met with all of the five remaining candidates for the job the candidates are yellen, powell, wash, taylor and cohn. gary cohn somebody close to the president here at the white house but not necessarily one of the front-runners for the job. but we are given to understand now that the president is expected to make the final decision on who he will nominate for fed chair before he leaves for that asia trip on november 3rd, scott. >> eamon, thank you so much. eamon javers at the white house. let's kick around the markets. react to what nygren said. has big time chops when it comes to stock picking who looks at ge and says there's an opportunity i don't want to pass up. >> as it relates to ge i think it's all about financial flexibility, you have to question whether they have it at this point i don't believe they do. that's why i'm in honeywell. you're talking $8 billion in commitments toward the dividend, they need to reduce that down to
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$5 billion to $6 billion at a minimum. secondarily, talking $36 billion in unfunded pension liabilities and another $10 billion to come over the next four years this is a company indicative when you look at the pensions of the old world that we lived in and i think it's going to bring forth the question a lot of these old school companies that have the pension liabilities how do you value them going forward. >> at some point people are going to stop hating on the general and they're going to look at it like nygren looks at it and says, okay, turn it around. >> i don't know why he thinks it's going to get a market multiple let alone a premium to the market it's just not the way we treat conglomerates anymore. there was a period of time in the 1990s it was a golden era for conglomerates and things like tyco and ge had this halo but that's like so long ago it's not really as relevant as it once was even on the sum of the parts it's hard to say this thing is worth that much more the idea that new management is going to get this like jack
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welsh-esque halo over it any time soon that i can't picture continue to sell discounts in the market even if they turn earnings around which is a big if. >> that is a big if. that's where the issue really lies, scott. look at this company we all say are they going to do anything with dividend. bob nardelli last night talking about they can't do anything with the dividend and if they do i think the reaction will be different than what bill nygren is talking about right now i think there will be heavy pressure on the sell side because people are holding onto it for that exact reason. >> etfs, do you know how much money has gone into etfs that are dividend focused like a trillion dollars. >> well -- >> way beyond that, ishares, everyone's got a giant either dividend appreciation, dividend growth, whatever this is a 4% yield that's in almost all of those strategies so it's not even like people saying, oh, they cut the dividend but this is expected. these are rules based portfolios, don't care why >> there's another force at work with ge, which is that a lot of people have this at a very low
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basis. and for years they've been handcuffed into it the lower this goes, the less the capital gains issue for taxable investors becomes a problem. and you will see some sellers who a year ago at the prices then prevailing would not have sold. >> how about the market as a whole? i mean, as we cross -- what did i say it took 76 full days, like 50 something trading days goes from 22 to 23. >> but i don't think it's any different than yesterday. >> okay, we crossed 23,000 i don't think anyone here on the desk is going to advise any different strategy than we have been it's still about having exposure, broad diversification, broad exposure -- >> of course but a reminder, yet another one, of a market and i keep using this word unabated because that's nearly what it's been no matter what you throw in the market's face if the market is a thing, it doesn't matter stocks continue to go up. >> percentage distance between 22 and 23 is much -- big heger
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picture there are excesses, a lot of them taking place outside of the market. there are massive bubbles being blown. they're just not necessarily in the s&p 500. >> and, judge, when you look at 11 straight days in the nikkei, i mean, you know, you're only this far, at least on my maps, this far from north korea when you're japan and yet because abe goes out and says, well, you know, i'm asking for this confidence vote, apparently the stock market over there is giving him that confidence vote. 11 straight days just boom, boom, boom to the upside. >> the world is running, okay. >> right. >> it's almost every stock market around the -- >> we've been saying this for a while. >> there are still names out there, but here's the thing, in terms of big cheap stocks, you can't just buy stocks because they're cheap. you have to understand what the risks are that are inherent in the current price and you have to be comfortable with it. so you can look at a qualcomm which is a name we've bandied about before and i'm in the
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name, look, i'm comfortable at some point they're going to settle the case with am. i'm not saying tomorrow. it's probably next year. and with the current price-to-earnings multiple i'm comfortable owning that stock. it's very similar just a couple months ago, gm, what you're looking for asymmetric risk, to the upside, you look for those you can find them. >> the only thing different about today is the vix is 4% and does that indicate we're about to go parabolically higher >> it tells me people are smart enough to buy protection and as they're buying protection they're moving the volatility a little higher. we talk all the time, under 10, been under 10 for a long time, in single digits, it's as inexpensive as it's been in years, gives people the opportunity to buy and ride the market that much further and look at where the leadership is when they're looking at the s&p 500 and that's what we're measuring when we're talking about the vix, when you look at the spiders, which stocks are the ones leading they are the big cats. it's mcdonald's, caterpillar,
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j.p. morgan. >> down the list. >> j&j, look at that stock we'll talk about that in a minute. >> it's boeing, it's cat, it's goldman, 3m. >> think about semikublconducto so important economically in every sector now, no longer a cell phone story or a pc story everything is now semi and this is a global thing so you look at intel, had a huge breakout which we talked about in advance of the show, now it's consolidating those gains, hanging high with other tech stocks pulling back this thing seems to want to stick to this level. i think it's got another leg higher and i'm staying in it nvidia made a new record high like ten minutes ago you know, the chip stocks don't get talked about enough. they are growing in size they are growing in importance in the nasdaq and there are so many of them there are hundreds of -- >> and the chipmakers like applied materials which we just talked about last week was unusual. today even more. i mean, you look across, scott, to josh's point, whether it's a
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micron, we talked about that yesterday, intel, applied materials, go down the line. fundamental story still intact, valuations are great, they've got growth that's why people own them. >> let's go back down to washington, our kayla tausche standing by with new information now on a developing story as mexico and canada team up against the united states to stop proposed changes with nafta, kayla. >> well, scott, a lot of the industrial companies that you were just talking about care deeply about exactly how this process is going to go down today. i've learned top trade officials from these three countries they'll appear together this afternoon, but in a closed door meeting today canada's foreign minister and mexico's economy minister are set to tell the u.s. trade representative they oppose the protectionist policies put forward this round by the u.s. that has created quite a contentious environment among negotiators. according to people familiar with the countries' plans, canada and mexico will say they remain committed to continuing negotiations on nafta and will even publicly touch on progress made in areas like small
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business and competition but the uncertainty caused dollar to spike to a nearly five-month high against the peso when cnbc first reported this news earlier today and could move even further depending on how the u.s. responds this afternoon. the ball appears to be in the white house's court. the white house and the office of the u.s. trade representative declined to comment. the president did speak though last night with canada's prime minister justin trudeau on two specific trade disputes, according to a readout of that call provided by the canadian government the first, duties placed on soft wood lumber back in april. the second, hefty tariffs placed on the jetmaker bombardia by the u.s. after a lawsuit brought by boeing and the resulting deal announced last night with airbus a person familiar with that call said it was informative and discussed the guarantees that airbus had provided in order to do the deal and they said this call took place after the announcement so it wasn't as if the president had any hand in inking that announcement
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or in inking the deal that boeing and bombardier ended up doing. the relationship between the two countries issi in exrabble -- jt as going on the air we got statement from the retail leader association in response to our reporting earlier today saying that it cannot afford for the united states to abandon free trade. so a lot of industries watching this closely we'll see what the afternoon brings. >> all right thanks for the update, kayla here's what else is coming up on "halftime report." >> next, a band of bullish calls on biotech we'll run you through the list in today's "call of the day," next and why our data partners at kensho say buy the banks today "halftimrertwi stte po" thco wapner and the traders is back in two minutes this is not a cloud. this is a tomato tracked from farm to table on a blockchain,
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our data partners at kensho say buy the banks today. banking index up an average 1.24% two weeks after jpm beats on earnings. for more go to cnbc.com/kensho. welcome back to "halftime report." biogen upgraded the stock to buy. we've made it our call of the
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day. in focus given yesterday what the president said these stocks have done incredibly well. what do you do with this call? >> when you look at what their price target jumped to, scott. >> $415. >> from $300. >> stifel goes $415. we're going four handle one way or the other. >> and talking the idea the ms franchise is not destined for anything in the dust just yet. there's all kinds of dimpt areas they're talking about. they're talking about some of the growth in most recent drugs as well in terms of how much that's really taking effect. also, way back underneath everything else in biogen there's always potential and always the killer unfortunately, but for alzheimer's. and everybody's been trying to get the key to this whole thing forever. they've got one in the works as well if that actually came through, this 415 number seems very realistic. >> yeah, up 25.5% year-to-dad, xlb up 20.
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>> you've got a couple things going on there was a head fake late last year with both candidates kind of throwing everything they could at the media try to appeal to everyone. and a lot of them were talking about drug pricing and the drug companies getting away with murder and i think you had to be smart and realize this is the same thing that happens in every election and it doesn't matter and that's the phenomenon -- >> president said this yesterday. >> yeah -- don't value so many. >> they do still listen to him he's the president of the united states, still listen -- >> i'm talking the stock market. >> estonia -- >> with all due respect, to emp, every president, blah, blah, blah, algorithms are written, they are the programs that literally say if x twitter account tweets anything about the words drug and pricing, sell x many lots of this option and this stock this is what's going on right now. and it's not small potatoes. it's going on in the billions of
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dollars. >> okay. so let me stop you for one second. >> so that's not long-term stuff. so that's like ten minutes. >> so i think consensus was that he wasn't going to end the payments to the insurance companies and yet he did and the stocks got hammered. and he seemed to take pride in the fact that not only what he did -- >> insurance stocks. >> that's what i'm talking about. >> we're talking about biotechs. stocks shrug that off -- >> okay. i'm making the analogy here if you didn't think he was going to do it to the insurance stocks, he did. >> yeah. >> okay. so if you don't think he's going to do it to the drug stocks, why wouldn't he? >> i suppose anything's possible but the important thing is that it has not happened yet. and i think a lot of people looked at these companies like they were politically vulnerable they still might be. anything can always happen but until there's actual pen to paper on any kind of legislation about drug pricing, which by the way neither party is desperate to wade into right now, i just don't think we have to evaluate these stocks in that light
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there are other things going on with them that are bigger near-term drivers. >> and some of those drivers are that these large cap biotech names are really quite cheap this is not three, four years ago when you would look at these multiples and scratch your head and how could you actually pay for these. a lot of these names at the top of the ibb, biogen being one, gilead being another, these trade at forward multiples in the mid teens. those are very attractive. i can think of another name, alexion, very attractively priced think further a lot of these companies at one point had one flagship drug, most of them now have branched out and have many more drugs, pete, to your point on alzheimer's, biogen, somebody's going to win that but there's no way -- >> best plan really continues to be mainly the etfs, xpi, for instance, and pete i think cited it last week for a 90,000 lot of calls that somebody what 9 million share equivalent or something like that. it was a huge buy. the unfortunate thing about
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biogen is just like warren buffett's stock, it's almost impossible to trade. which is the way they want it. they don't want you trading it they want you to own it. so i get that. but, i mean, celgene is my go to. >> exactly the stock was 116 when they started aggressively buying. >> why is it impossible to trade? >> because it's 300 and whatever a share. so you can buy it, but you're not going to trade that one because the bit spreads to move a chunk in that one you're moving it up and down too much because it doesn't have the public in there because the 300 some odd dollar stock. celgene when it was 116 now it's 138ish is a lot easier is just my point because you do have some risk in not just the pros. >> far better liquidity. xle is moe is the way to play all of this. you get the exposure in whether it be devices, whether it be a
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lot of the drug companies and even the large cap biotechs, that's what i'm long. >> all right let's do trader blitz now. harley davidson beating the street did see a big drop in sales though doc, you got that one. >> yeah, well, they sell big dropoff in sales but the stock's trading up now basically opened at 45.75, i'm seeing here. almost $2 higher than that so the big drop in sales and the slightly better sales number but a miss on profits isn't hurting them today. >> all right boeing enkoicountering new challenges as airbus snaps up bombardier. >> yeah, really in the icu as far as plane sales go, look, if you're in boeing you have to ask yourself how much better can it get? you're trading in the low 20s forward multiple, you're ignoring all the risks of any orders being canceled out there. look, it's a fabulous company, but it's doubled in a year just be careful. how much more can you get from this >> mixed quarter for sonic fast food company says drop in
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sales is partly due to hurricane harvey traffic. >> i would buy that. 24% drop in sales got to be some kind of exogenous event with a fast food chain. but bigger picture this is still in the down trend. it looks like it's fighting off the bottom there are probably some shorts in there covering because it just wasn't that bad but this is not the best set up in the space i like some of the pizza names better and i actually bought a little more recently. >> united health care is on the move today better than expected full year profit forecast, joe. >> yeah, 2018 looks good and this kind of takes us back to the conversation of a couple minutes ago. think about where the stock was on friday. with the announcement for president trump, fell down to 186, it's right back to 203. what matters most is the earnings and the guidance looking forward. jim cramer pointed out yesterday, i think that's still the better one. >> pete, speaking of spirit airlines. >> yeah, they get a little
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better revenue guidance. the problem with this stock, scott, is they have absolutely lagged the rest of the sector. you want to talk about an underperformer, the stock's trading at $35 when you look at the highs toward $60 and look at united and delta and american and the performance of those versus this, this is an underperformer. i think it's still out of favor. the biggies have gone after them in price if you start to look at delta and united, they have gone after spirit in pricing and beating them at their own game on the lower end and that's what's getting them right now. >> all right coming up, johnn and pete findig unusual activity in the options mart behind four big names today. we will do the big reveal when we come back first check on the dow 30. the dow crossing 23,000 today "hfte po er.t timeve alimrert" back right after this ♪fly me to the moon ♪
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♪and let me play amon-- (ding) (bell mnemonic) that's why a cutting edgeworld. university counts on centurylink to keep their global campus connected. and why a pro football team chose us to deliver fiber-enabled broadband to more than 65,000 fans. and why a leading car brand counts on us to keep their dealer network streamlined and nimble. businesses count on communication, and communication counts on centurylink. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan.
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the cnbc iq 100 index, up 26%. today's leaders include united health, johnson & johnson, nike
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and life sciences for more go to cnbc.com/iq100 welcome back everybody i'm sue herera here's your cnbc news update at this hour. the first lady of france is urging women to break the silence about sexual abuse and harassment, that amid a torrent of online reaction in france to the harvey weinstein scandal mrs. macron said women speaking out could be, a, quote, cloud with a silver lining, end quote. attack on by taliban killed storm police chief security forces killed all five attackers but not before dozens were injured here at home police in richmond, virginia, are searching for the person who vandalized a jefferson davis statue overnight. someone spray painted the word "racist" on the base of the statue a city committee today will review a proposal to remove
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confederate statues. and here's a scene you don't see every day in our neck of the woods. yes, ladies and gentlemen, that is a cow hoofing it. he's on the loose on the streets of new york city that's no bull it's happening right now in brooklyn the prospect park area police have already made several attempts to corner the cow and as you can see he's garnering quite an audience. doesn't seem to be intimidated we'll keep an eye on this udderly ridiculous story for you. coming up. over to brian sullivan with the news update. you never know what you're going to see in new york city. unfortunately, it's probably escape from a slaughter house which are in that area. >> i'm more upset that you completely milked those cow puns. >> i did milk them. >> hoofed, udderly. >> yes. >> proud of you, so generous. >> it's a mooving story. >> love it coming up on "power lunch," the president holding news conference with the prime minister of one of the world's
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hottest stock markets, greece. could trump go offscript again we'll bring that to you live new data showing valuation at some of the world's biggest tech start-ups may be vastly exaggerated. and with controversy swirling around the league, nfl fall meeting getting underway in a few minutes. we're going to take you there live scott, back to you in a couple pony football player exits as well. >> brian, thank you so much. see you in a bit coming up, brothers najarian will pick. >> lots of unusual activity. >> some of those pictures. >> we'll be right back in the eastern united states supported by innovative packaging that extends the shelf life of foods and infrastructure upgrades that help us share our produce with the world. all across new york state,
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we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov what's that, broheim? i switched to geico and got more. more savings on car insurance? yeah bro-fessor, and more. like renters insurance. more ways to save. nice, bro-tato chip. that's not all, bro-tein shake. geico has motorcycle and rv insurance, too. oh, that's a lot more. oh yeah, i'm all about more, teddy brosevelt. geico. expect great savings and a whole lot more. right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client.
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welcome back to "half-time." brothers najarian have made their way to the tell straighter. >> judge, last week pete saw some great facebook activity and jumped on it i was not in this week i'm back i'm back in facebook because of some big upside call buying. take a look at how big, judge. take a look at the stock chart there. now you see nearly 35,000 calls have traded at the november 180
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stripe stocks around 175, they're buying 180, i like that. they've got more than 30 days to be right i also like that so i'm scrambling in here along with those calls another one quickly, granger, gww, take a look at this one stocks making a nice move here at 188 this morning, $188 a share, they were aggressively buying calls in here they're buying the november 190, so both the stocks we're talking about are november expiration. in this case the 190s, scott, these have now gone $6 or more in the money since this morning. they bought them at 188, now the stock's 196, like i say, i like the direction and i certainly like how actively they're trading this name today. >> all right, pete, what have you got? >> well, we're talking health care area and today we saw huge call buying. just a couple weeks ago we had huge call buying in the xlv. i'm not a huge fan of the etfs,
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this was a huge trade we saw today. we had some xbi, but look at that, scott. that's some large buying 39,000 overthese calls were bought out in november gives them plenty of time to be right. they're just out of their money tradi trading at 84 give or take call it 82.80, something like that. that one's pretty interesting. now let's go onto an individual name fastenal, this one doesn't get talked about a whole lot, but look at this recent move we're seeing in the stock right now. this is where the stock was in the 50s. had this choppiness after a bad plummet right there. but now we've been stiffly moving to the upside somebody who's been right is rolling up in their calls today in there as well going out to november once again, they were buying with no 46 calls, they're taking those off today, sold those but rolling up to these november 48 calls. that's somebody who's been right, made money and they still want to be in this stock thinking it's going to break out even higher. i'm in that name as well. >> guys, thanks so much.
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come back this way with the nfl in the president's cross hairs, owners and players meeting right now in new york city cnbc's eric chummy covering it live from the scene. eric. >> that's right, scott just outside these doors nfl owners are set to walk in any moment now for their league meeting starting at 1:00 a lot of issues hurting the league and hurting their 'rsiness wee going to talk more about it "halftime report" is back in two 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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all right. we're back on "halftime report."
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nfl commissioner roger goodell and owners from all 32 teams in new york city today for the league's annual fall meeting ratings and player protests are high on the agenda cnbc is live inside the conrad hotel with what to expect. eric. >> that's right, scott, thanks so commissioner roger goodell just walked into the conrad actually just two minutes ago getting ready for these meetings that are about to start 1:00 the top of the hour with the owners. a lot of big issues on the agenda this year it's not the typical fall meeting. they are in the president's cross hairs. the brand is one of the most polarizing in the whole country. fans have stepped away from the games, from tv ratings, from buying merchandise, a lot of wall street analysts even think the damage is so bad companies like cbs and fox could see meaningful earnings declines because of the lack of tv ratings. so the big question here at these meetings, can the players and owners find some agreements about these anthem protests without forcing them to stand but to get to an agreement, and
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part of that is the owners backing them on some criminal justice issues, social equality issues and trying to see if they can all come together. because they share these revenues equally 58 to 42 for the players, all that money needs to be split. if there's no money, they are both going to lose scott, back to you. >> eric, you get an idea of how highly charged this whole thing is i've seen pictures of protesters outside and also somebody, a well-respected executive telling me that he saw bomb sniffing dogs, which to him is a first. and he's been to every nfl owners meeting that i can think of for probably the last 20 years. >> that's right. the protesters are out there not as many as maybe some people would expect again, it's early and meetings will go onto tomorrow, and i have seen the bomb sniffing dogs out there. they would not let us pet it fuzzy, not a typical kind of meeting, it is filled with police and security all over this place. >> yeah, eric, thanks. keep us up-to-date i know you will this meeting with the owners and the commissioner himself
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getting under way in about ten minutes time. >> yeah. and this is something that's been escalating for quite a long time and unfortunately i don't think, you know, we talk about this in terms of companies all the time whether it's a ge or anybody else, we say it starts at the top, starts with the leadership and are they doing the right thing or wrong thing are they being reactive or proactive? this unfortunately for me shows that the nfl is being reactive they waited and hoped this thing would go away, it has not. and this is just one of the elements there are multiple elements right now playing in the nfl that's hurting the ratings the ratings were actually starting to slide last year and even before that with kaepernick taking the knee and the rest of that when this all started but i think roger goodell owes everybody an answer to why are we waiting this long before we make this decision $44 million a year this guy gets paid, scott, to run the nfl and this is something that's been very important and right in front of him and the owners and players have got to get together >> you can see the sensitivity around the issue of kaepernick in -- yesterday, you know, doc,
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aaron rodgers, packers star quarterback, one of the biggest stars in the league, goes down with what might be a season-ending injury mike mccarthy head coach gets asked about it in the interview room and snaps at the reporter who asks the question about whether they were looking at kaepernick clearly, people run comfortable talking about his role in all of this, his future in all of this as he -- >> he has no future in this. >> -- files a grievance against the owners >> kaepernick has no future because he blew himself up in san francisco. thine the numbers were among the worst ever in the league he can look around i don't think there's collusion on the owners' parts and obviously, they've let these protests continue despite suggestions like ours that perhaps a time could have been carved out for them to do the protests other than at the anthem >> i'll just say, and we'll leave it there, that i think a lot of people would -- or there are many people out there who would disagree with whether he's good enough to play in the
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league now or not. that's for another time, maybe another day. >> all right >> gold on pace for its worst day in nearly four weeks how the futuretrers s adare playing it we'll talk about that next on "halftime. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan.
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welcome back to the "halftime report." i'm jackie deangelis we are watching gold today, on pace for its worst day in nearly a month as the u.s. dollar is gaining some ground. scott nation, is this a reaction to reports of a meeting between
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president trump and economist john taylor? >> i think absolutely. and the reports are that professor taylor was very impressive professor taylor well known for the taylor rule, which would essentially institutionalize the selection of the fed funds rate. and people ask what would the fed funds rate if we were watching the taylor rule it would be about 3 1/2% versus the 1% and if he is fed chair, then we know that's going to help the dollar, it's going to hurt gold. so we're seeing it off about 1% today. >> we've been watching gold for some time. it hasn't been able to hold that $1300 level. where do you think it goes from here >> jackie, john taylor is a hawkish person so definitely gold is lower on that but when you look at economic date ar in u.s., in europe, in china, all very good right now stronger dollar. 1290, 1285, those are the 15 and 30-day moving averages we're through that 1254 i think we go there. >> today on the live show we're
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joined by the man who called the huge rally in copper, mike dudeas of vertical research partners plus trade ideas for gold and the dollar as well, all at the top of the hour, "futures now.cnbc.com >> we'll do some final trades right after this quick break 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. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall.
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i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host. when you have the right financial advisor, life can be brilliant. ameriprise all right. markets close in about three hours. let's get to some final trades
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on this historic day for the dow jones industrial average, breaking through 23,000 for the first time ever. dr. j, you're up first >> well, i'd say i robot irbt some strong upside call buying in the name. they've bought aggressively. let's see the december 85s, i'm in there, bought it during the show >> pete. >> we talk about the chips all the time i brought up applied materials earlier. we actually during the show had some applied materials option activity that was rolling up in other words, they've already had some profits, they want to stay in it i like what we're seeing there, scott. this name is going to 60 >> josh brown. >> don't tell anyone, but alb has already shrugged off that silly goldman downgrade and is now on the verge of making yet another new record high. >> alb >> yeah, man i feel like people aren't really listening to me. >> if anybody knows about lithium -- >> what does it take to get your attention? >> the stock's exploded. what do you mean they're not paying attention
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>> scott scott. >> francesa bought it because you -- >> people have no idea >> you're not speaking from the heart. that's the problem >> joe >> lamb research they report after the close tonight. if you get a pullback, buy it. sooner or later it's going above 200. >> citigroup this is the tenth pullback in one year the pullback's done. it's going higher. >> good stuff, guys. thank you. thanks to all of you as well "power" starts now i'm melissa lee. here's what's on the menu. market milestones. the dow hitting 23,000 for the first time ever. what comes first 24,000 or maybe the big correction many are expecting? president trump set to hold a news conference this hour with the prime minister of greece it comes on the back of yesterday's surprising and rowdy gathering with the media we'll carry that live. and a major warning for the american housing market. what it could mean for home builders and buyers. "power lunch" starts right now hi, everybody. i'm brian sullivan as melissa said, the

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