tv Fast Money Halftime Report CNBC December 6, 2017 12:00pm-1:00pm EST
you've covered it for the most part accurately which is surprise for you folks, but that's okay. we're on the verge of an historic victory that cuts taxes for the middle class, for businesses, brings back probably in excess of $4 trillion as you know, we've been saying $2.5 trillion for years. well, that number has greatly expand, and we'll be bringing back in excess of $4 trillion that will be put to work in our country. there will be a lot of jobs being brought back with that money. right now that money is being spent overseas it's not going to be spent overzeas any more. the house and senate are now negotiating the final bill, and i cannot wait to sign these giant tax cuts and reforms i mentioned tax cuts, but it's also reforms, but i'm looking forward to signing it. it will be the largest tax cuts by far in the history of our country. we'll be bringing the business tax from 35 all the way down to
20 at 35 it's the highest in the industrialized world at 20 we're on the very low side, so we'll be very competitive. you look at china. that's 15% other countries are 18% and some are 23%, 24% the average is actually of the primary competitor is actually 23%. so we'll be pretty much below the average, and we'll be able to compete, and despite all of that and despite -- before we even get this massive injection, we have a stock market that has hit record highs, 81 times since our election victory 81 times it's at a new high right
now unemployment is at a 17-year low. very shortly it's going to be at a 19-year low. we think the numbers are going to continue to go downing and we are also getting into the pool of the 100 million people that are not working. that pool is now coming back as you know, that's not
considered in the low employment numbers which means
we have a lot of people that want to get to work and that will be working. consumer confidence is at a 17-year high we've created nearly 2 million jocks. think of that. 2 million jobs since election day. that's based on consumer confidence that's based on enthusiasm every enthusiasm poll, especially for business enthusiasm and job enthusiasm, is at an all-time high that's why companies are coming back into our country. they are opening up new plants most of you have written about toyota came back in. we have many car companies back in they are going to michigan they are going to ohio and going to states where they want to be. they can go anywhere they want, south carolina, north carolina, but they are going all over our country. they are coming back in. we had many years where we had no new plans only had closures. now we have openings, and that means a lot of jobs. but to get it going the way i
really want where we have gdp getting up to 4%, 5%, even 6%, because i think that's possible. if you look back in your votes, you'll say when i said 4%, people said that would be years. well, it's turned out that i'm right because without the hurricanes this last quarter we would have hit 4%. at 3.3%, which was adjusted previously, this is far beyond what anybody thought we would be at, so we're at 3.3% gdp i see no reason why we don't go to 4%, 5% and even 6%, and i don't want to go beyond that because then i'll be criticize federal we don't hit it, but every time we go up one point, just so you understand, one point means $2.5 trillion, means 10 million jobs. so one point in gdp is an incredible statement
$2.5 trillion for each point and 10 million jobs for each point, and i think we pier going to be going up a lot of points, so in order to really keep it going the way i want and the way we all want around this table, we have to pass our taxes it's in conference right now but i call it the mixer. i think when it comes out it's going to be a beautiful mix. there are things that i like better in the senate bill. there are things that i like better in the house bill i think when they come out, we'll have some new additions, and we'll have the best version. i think we'll have a fantastic tax bill there are very, very few people that aren't benefiting by it, but there's a tiny little sliver, and we're going to try to take care of that very small group of people that just through circumstances maybe don't get the full benefit of what we're do, but the middle class gets a tremendous benefit and business, which is jobs, gets a tremendous benefit.
we'll be giving the cabinet today an update on national security and strategy. we'll also receive briefings on the latest developments in the tax cut negotiations, and -- and administrator mcmahon, who has done a fantastic job at small business administration, where's linda? linda, did a really fantastic job, is helping small businesses in record numbers, and they have needed help really because of the hurricanes the hurricanes were devastating. as i said, gdp, if we didn't have the-hour capes, we would have hit just about 4 this last, but we had, us a probably know and probably everybody remembers, we five really bad ones, and we have a lot of businesses that have been severely hurt, and linda mcmahon has done an incredible job in helping those businesses out through the small birks so thank you very much, linda so we're in a great period in this country because jobs are coming back. up employment is low business has never been stronger, but we have a military
that we have to build. i want to thank general mattis for doing such a great job with respect to isis. he's knocked the hell out of them of course, i've made it possible with what i've let you do, i think. >> yes, sir. >> wouldn't you say? >> absolutely. >> but he's done a fantastic job. he and the military have done a fantastic job with isis. they are essentially knocked out of syria knocked out of iraq. that's the good news the bad news is they go all over the place, and i'll tell you where we don't want them we don't want them here. we don't want them in our country. tell them to stay wherever the hell they are. we don't want them to come into our country. they do go back into other countries. we don't want them in our country so we're watching that very closely i would like to wish everyone a great season, a merry christmas and happy new year, and i will tell you that we have a big announcement coming up at 1:00 perhaps a couple of you will be
there, maybe not but it's a big announcement. it's an announcement concerning israel and the palestinians and the middle east, and i think it's long overdue. many presidents have said they want to do something, and they didn't do it whether it's through courage or they changed their mind, i can't tell you, but a lot of people have said we have to do something, and they didn't do it, so we'll be talking about that something at 1:00, and i like forward to seeing you then. thank you all very much. thank you. thank you. thank you very much. >> mr. president, what decision have on the peace process? >>
we'll talk about it in a little while. >> do you have confidence in robert mueller, sir? >> thank you very much >> it could happen the democrats are really looking at something that's very dangerous for our country. they are looking at shutting down they want to have illegal immigrants, in many cases people
that we don't want in our country. they want to have illegal immigrants pouring into our country,
bringing with them krirn crime, tremendous amounts of crime. we don't want to have that we want to have a great, beautiful, crime-free country, and we want people coming into our country, but we want them to come on our basis, and that's why we're being so careful with our process and our screening, and as you know we had a tremendous verdict rite other day in the supreme court with the ban that got quite a bit of attention, probably not as much attention as it deserves, but we tremendous -- that was a tremendous victory for this country. not a victory for me it was a victory for our country, so the democrats maybe will want to shut down the country because they want people flowing into kour country. i want people coming into our country and i want to vet those people and i want to vet them very carefully because we don't want radical islamic terrorism
in this country, and we don't want to have crime in this country. you look what just happened in san francisco. that was a disgrace, and as you know
the federal government just got involved and did a great thing because they are going to take that at least to the next step they did a great thing by getting involved so thank you very much i'll see you all at 1:00 >> all right that is the president of the united states in the cabinet room speak on a number of topic. i can't wait to sign these giant tax cuts and reforms, he said. the stock market hitting record highs, the president noting once again enthusiasm, he saitd saisa an all-time high i see no reason why we don't go to 4% 5,%, 6% and at the end he was asked about the prospects for a government shutdown. the president saying it could happen and eamon javers on the north lawn white house for us. >> reporter: the president did
say it could happen but the expectation in washington is that they will have a continuing resolution which basically extends government funding for the next couple of weeks while they work out a deal we know chuck schirm and nancy pelosi are coming to the white house on thursday to talk about the terms that have deal, so what the president is doing there is setting up the stakes for this debate. nobody expects a government shutdown this week but there will be a fight over immigration, and it may be that the white house feels that a government shutdowns, at least in the short term, a short government shutdown could work in its interest if the white house is seen as fight against democratic immigration proposals, something well received among the president's bampts you s base this was a very effusive president here, talking about the massive bull run on the stock market, gdp, job growth, companies coming to the united states this president hammering home that he is delivering for the voters exactly what he said he was going to do, so this president in a very good mood today. we'll see more of him hat 1:00 when he makes this announcement about jerusalem which we expect
in just over an hour's time. >> eamon we'll see it then. >> eamon javers on the north lawn whout white hou . we'll continue to take a look at the market hand this rotation the fund manager speaking out with us today about the beaten up tech sector what he's telling investors to do with that space as it tries to bounce back today, somewhat unsuccessfully tech not completely selling off, but as we look at the nasdaq it's getting a little bit of a boost. with us for the hour to talk about all of this, joe terranova, jim babbittial, steve weiss and pete najarian. there's so many questions now about the state of technology and whether it will ultimately be this rally's undoing. dow negative by about eight points and s&p barely positive and now negative there is the nasdaq with a slight bump today. 67, 71, that's a gain of a little more than nine points yes, this month is young
the nasdaq pacing for its worst month in more than a year. steve weiss, you spoke yesterday with us about maybe why this all is happening, and you think a lot has to do with taxes. >> i think it all has to do with taxes. i think technology does come back this year is different than any other year because this year with the tax proposals you're motivated to sell in 2017 versus typically you delay your profits taken, harvesting in january of the following year so you have another year to pay your taxes, and the reason is, there are three reasons. number one, hedge fund managers lose carried interest which means it has an ordinary income on their gains rather than paying capital gains if they wait until next year so that's one reason that's big, so what are you going to sell? you can sell where you have the gains. second is fifo so if you've been investing in technology, you've had a lot of gains, so if you wait until next year, you're not going to be
selling the new stock. you'll be selling the old stock where the gains are even big, so you're going to be forced to sell this year those directly hit technology, and -- and the third thing is if you're a high earner and you're in a high tax state, you'll be gaining more taxes next year, so do it all this year. >> jim, look, you've been on this program saying don't -- don't sell. >> right. >> who in their right mind would sell after a tax cut and all this other stuff for a tax bill that you would thus have to be on the hook for this year? >> right, and i think steve raises a good point. the only thing i would add to it is that we are in committee between the house and senate there's talk, at least fifo, everybody thinks fifo is a bad idea i'm being generous calling it a bad idea hopefully congress gets its act together and takes that out. you know, as for the said and local tax deduction which will push higher taxes into next year, that may be adjusted as well, so, you know, i'm notsur
that we've actually seen as much selling as maybe you think there has been, because if people sell now and then these things come out of the final bill, they could have really shot themselves in the foot. >> i'm not -- i'm not, you know, saying this is what i think will happen this is what large family offices, billion dollar and above and hedge fund managers have told me they have been doing. >> mm-hmm. >> when you have sizable positions, you can't wait until the last day of deefnltz you've already done your planning you're also shutting down. >> i disagree with that. >> have to wait for evidence and other anecdotal evidence to suggest then that the selling in tech is not over with yet, because that's where the biggest winners lyrics and if you look at -- i mean, the -- the rollover in any bounce that we've gotten over the last couple of days has to be somewhat concerning, no? >> well, no, i would agree, and i think it's all tax-based right now, what we've seen, but it
hasn't been all that brutal. i mean, we bring it up every single day and lock at the financials that are outperformed and we look at technology. a few names are down 10%, a few of the names, scott. many of the names are actually down 3%, 4%, 5% which as a group we all watch that happen, but, you know what. i think there's still guys out thereto that will probably start selling and selling. this is not something that happens in two days and they are out or three days and they are out. this is something that we'll see over the next couple weeks, but i think if it gets over 10% that's where the opportunity is created. >> so you'd be >> a buyer look at the fundamentals we get each and every quarter this past year is there anything out there right now that would tell you to be a seller right now of facebook, for instance, or any of the other names we want to put in the phaf.a.n.g. category? no the opportunity has not been
created yet though because the selling hasn't been as vicious as we've expected. >> the gains have gotten ahead of even great fundamentals. >> which i'm not in this camp. >> absolutely not. >> you're in that camp >> i'm going to disagree. >> you think they have >> i think in some they have i mean, let's be real. >> how could they not have >> fundamentals justify some of these stocks >> we're talking about the technology sector. the swath that i invest in, value investing, hasn't gotten ahead of itself. if you look at the intels and cisco systems and you and i have had a good debate over this over the years what multiple apple should trade hat but at roughly 14 times next year's earnings i'm going to go out and say i'm very comfortable with that multiple we'll find other swaths. >> let's talk about what everybody else is looking at not talking about the intels, ciscos and ibm the ones that have totally rolled >> so if -- >> especially the chips.
>> i'll just focus on amazon >> if amazon starts to come off and it really hasn't and we're saying that because it's gotten ahead of its fundamentals, then we're finally saying that an earnings multiple matters for amazon which has been a laughable concept. i've put it out there many times and frankly been laughed at here on the show. i don't think now is the time that necessary lit world has changed and people start valuing amazon on earnings multipast you i just don't see that happening now. >> joe >> i think this has nothing to do with fundamentals this is just something called money flow, and this is the end of the year, and people are trading around positions mutual fund managers, 50% of them in large cap growth technology have outperformed their benchmark. you haven't seen that type of perform nance nearly 15 years. they are doing exactly what stephen is talking about they are paerg back some of their gains not knowing what the tax structure is going to be going into 2018, and they won't wait until the last minute this is a trading event. >> they can't. they are going home.
>> i agree with pete there are names like salesforce and adobe. i picked up some of those today. those are names that you can buy but the f.a.n.g.s to your point, they are closely being sold by whether it's hedge funds, mutual funds and it's all about positioning. >> our next guest says the fear is overblown joining us is the ceo and founder of ross gerber. welcome. >> good to be on. >> what do you think about this? settle the debate on the desk. >> i'm one of the guys with the money that's flowing and i'm doing exactly what pete is saying i've made huge money on my large-cap tech and i'm looking at my value stocks at 15 and 20 pes and looking at my tech stocks at 40 and 50 pes, and i was a trader in the '90s when microsoft was 55 pe. oh, it will never go down. it's so great, so we've taken profits in technology and moved it, you know, into the more value areas like the -- well, it's hard to call them values,
but the home depots, the disneys and the apples from the facebook, nvidias and the netflixes, and it has nothing to do with fundamentals, just keeping our weightings, and literally after we made our trades, it seems like the computer a lg os just clicked in, and maybe it's black rock or whoever, and it was like the same trade just happened so this has nothing to do with fundamentals the fundamentals couldn't be better for technology. >> how much does it have to do with taxes and maybe a narrative changing a bit on wall street and what the impacts in certain areas could be and thus people are selling who otherwise wouldn't be right now. >> you know, i think there's some of that going on, but the republicans are so confused and clueless that we have no idea what it actually is going to be at the end, so i think it might be premature to make, you know, all kinds of tax-related trades, but i do agree if i'm a hedge fund manager i'm taking my profits right now and taking my lower tax rate for sure, but other than that, it's hard to
call. >> but you don't think this rotation that we've witnessed over, you know, however many days, we want to go back and say it started, being a lasting thing that people will just continue to go into these other areas and clock their gains, source the funds and put it into whatever else. >> no, no, no. there's so much money out there right now. we're getting calls every day. people want to buy bitcoin it's like ridiculous, and now i'm getting things like maybe i should buy one of the safe tech stocks like tesla and, you know, so like honestly, this is like the '90s, and i feel like we're in '95 and '96 right now and not '98 or '99 i've not seen the energy around investing. among young people, a lot of our clients are young people and they are calling us and they want to invest in stocks, and it's been 20 years so i -- so i'm not concerned about that at all. the economy is as good as it's been in a whimp the only thing i'm worried about is the government starting the huge war in the middle east and i'm very worried about interest rates because they are going to have to move higher next year and how
much higher is going to be hard to call. >> i'll give you, we certainly don't know what the finished product of tax reform is going to look like if you see a risk of selling on the news when it's ultimately done, and maybe we've already witnessed a little bit of that. >> i do think a little bit of the selling was the sell on the news move, but honestly, where do you put your money? you know, you've got cash which is zero still. you know, where do you -- bonds are kind of risky in a way, so where do you put your money? a good dividend stock like apple, you know, if it's suitable for you as an investor is kind of a perfect investment for me because i've got so much cash to repatriate and i've got dividends rights and a wonderful set of products for christmas, so we're not scared of the stock market we're more scared of the bond market. >> yeah. good to have you on. >> thanks for having me. >> we'll do it again sometime. ross gerber out in l.a. for us. >> can i give you another perspective. >> yeah.
>> i can tell you off the top of my head half a dozen funds, telecom, media, up 40% this year and their positions they have put on have grown to outside positions and they will cut them back 75% at least of mutual fund managers, long only managers, underperform every year, and so if you've got these great gains this year, you're going to bank it you're not going to gamble on the last three weeks or the last two weeks, you're going home saying this is a great year and let me mark it off then. >> what didn't seem like a gamble whatsoever suddenly feels like that. >> absolutely. >> go ahead. >> but it's also the corporate amt being included in the senate bill that's problematic for technology you keep talking about all these other sectors that benefit from tax reform, that benefit from the lifting of regulations, but yet technology really does not benefit. >> it gets hurt. >> exactly. >> but you can't deduct r & d,
so r & d instead of becoming a deduction which fuels your growth, research and vernlgts n now that's not deductible. >> dom chu talking about the sectors that pay the heist amount of taxes will get the biggest boost. where was tax on the list, the last on the list, the caboose. >> if you can't. increase r & d you'll have to make a decision here am i going to hit my earnings to fund my r & d, the development of new product, or is my growth going to slow down that's a real debate that we'll hear about going forward. >> let's bring in another voice now to the conversation. the chief market strategist tony dwyer back with us today from new york tony, what are your thoughts now? >> what's happening, judge my thoughts are it's -- you know, you have a possibility of i call it the "sanford & son" correction which could happen. if it's 2%, it's going to feel outsized but ultimately the
fundamental backdrop that we've talked about since raising our target last may, they are all still there, and i think the most interesting thing is when we talk about interest rates and the yield curve which i know you get sick of me talking about, judge, but ultimately it's a buy signal when it gets this flat so you'll have upside from corporate tax reductions regardless from a macro level regardless of which way whether it's 20, 22 or 25%, and the market correlates to earnings, so, you know, again, next year looks pretty good. >> why did we have 300 plus point reversal this week backed up by another intraday reversal? what was that all about? >> well, i think -- i think it goes what the traders were talking about. there's profit-taking that goes on i don't think -- i don't think weiss is wrong with that can you clearly have profit-take, and once there's -- i believe stocks are in some weak hands here at the end of the year if you are really highly convicted, you don't really care about a 2%, 3% decline, but if you got dragged along you'll
sell pretty quickly and i think we saw a little bit of that. ultimately, you know, as it relates to the topic du jure, technology, we've been neutral weight technology and it's honestly up until the last couple of weeks. that's been the wrong call i'm looking for a reason to get back in, and when you actually look at a couple of technical indicators on the relative performance of technology you're about as oversold to technology as you get to the s&p. so all these things are lining up for entering the new year. >> technology is the most oversold it's been it's definitely, you know, the growth the earnings are still coming from there why wouldn't you put a stake in the ground and say, okay, i'm getting in now i got this opportunity. >> because historically when it gets this oversold the price gets a little bit worse on a relative basis >> but you can't pick bottoms and tops >> as a matter of fact, i really stink at trading which i've said publicly however, over the longer term i
do think you want to buy on any further weakness. >> the last couple of days it's fell more like a sell the rip than buy the dip kind of mentality. >> judge, it's probably going to be that way. this is one of the best environments for investing that we've had in a long time you have fear of fed you have fear of government shutdown you have fear of changing tax legislation, and if that creates weakness, hell, yeah, you've got to be a buyer. we're still years away from recession. >> fears of changing tax legislation. we've gone from feeling almost euphoric about this change in tax legislation which you just said fear. we weren't talking about fear. the market wasn't up 20% of fear we didn't think we'd have a santa claus real because of the fear of taxes. corporations will get a tax cut and all of a sudden the narrative has changed. now we're talking it fear? >> we could have called for the "sanford & son" correction which is as seemingly big correction
but there isn't. you're extremely overbought in the indicators, so overbought that you can have a pullback no question whether you'll have a pullback at some point what do you do with it is it the peak or a peak a no question in my mind that it's a peak and you have to buy it until of a an inversion of the yield curve has shut down the credit clearly the fed will be raising rates here at the upcoming motoring hand that will flatten the curve even further we found that if you look at the 2.10 spread from the current level of flatness, 60 basis points or under which happened last week, you get a median 63% gain over 1,000 trading days to the peak we're focused on the peak, not a peak. >> i got you tony, good to talk to you as always. >> great to sigh guys. >> all right now to the controversial provision in the tax plan that would change the rules about how investors can sell some of their stock positions is timely getting some attention today on the hill after weeks of criticism about that proposal on this very program and elsewhere.
our kayla tauschy in washington with the latest there. hi, kayla. >> reporter: we've learned 41 house republicans have signed a letter to gop leadership urging them to remove the so-called first in first out provision that you have been discussing as driving some of the market activity these republicans want it removed from the senate tax plan that's according to a draft of the letter that we obtained. the joint committee on taxation estimates that provision would raise just $2.5 billion over the next ten years, and the letter calls that out it's expected to be sent momentarily, and it lists a wide range of concerns, from the shifting of the cost burden to retail investors, to the fact that it would hurt market liquidity by locking people into short temp positions and even complicating philanthropic efforts funded bid stock sales it's being spearheaded by the missouri congress who has been active in regulatory policy in the house. none were conferees that would be participating in the
conference process between the two chambers that being said, we've learned there's some individual grass roots efforts among senate republicans targeting this provision as well. we'll see what form that takes and whether it's enough to actually get it removed from the final bill, scott. we should also mention something else that is captivating the other side of the aisle in the senate and that's an increasing chorus of democratic colleagues calling for the resignation of minnesota democrat al franken. this is coming after politico reports new allegations against the senator from a congressional aide from 2006, of the senator was in congress. he has categorically denied those new allegations, but even so seven female democratic senators and three male colleagues are now calling for him to resign, and just a few minutes ago, before we came on, scott, we did get a tweet from the chair of the democratic national committee who said he should step down everyone must share the responsibility of build agriculture of trust and respect for women in every industry and
workplace. that includes in our party, so having the figure haestd dnc is certainly meaningful other, scott, and while it is an issue that deals with an individual senator, you have to imagine that democrats want to regain some moral authority going into this special election in alabama next week where this is an issue. >> and we're just learning now, kayla, that senator franken is expected to make an announcement tomorrow, whether in fact this can last until tomorrow given what you just said was a gathering wave certainly on the democratic side of the aisle now for the senator to step down. >> and it seems that it was this politico report this morning, despite senator franken's denial of that report, that has caused this wave to begin steam just last night at an event senator kirsten gillibrand works started the cascade first this morning, she wasn't ready quite yet to say at that time just last night that she would call for his resignation, but it seems that that report today has
changed that. >> kayla, thanks so much kayla tausche on the hill for us let's discuss on the desk the fifo deal. okay 41 republican congressmen and women signing this letter. maybe it's the beginning of something. >> well, hopefully yesterday after mr. schwarzman was on the air with us, he got off air and he picked up the phone and called the president and said this is the first i'm hearing of this, this is ridiculous if you think for a second about not allowing the s.a.l.t. deduction, if you think for a second about first in, first out. about boast those dhings are against what we heard the president at the top of the show talking about, the stock market, the economy. he wants to the stock market to rise think about the revenue if you get the s&p to 3,300, right, think about the additional tax revenue the capital gains that you'll collect from the government so why would you impede that from two things that logically make no sense. hopefully there will be adjustments. one completely removed but secondarily i think s.a.t.l. is still a big issue.
>> it's a very big issue and the problem with it, joe, i don't know how the tax bill can be paid for if you -- if you don't keep the state and local tax deduction. >> keep the market going up. >> okay, yeah, that's not how they will score it you and i can agree on that, you and i can agree on dynamic scoring but that's not how the senators and congressmen vote for this maybe it gets curtailed back to a low number that people can live with, but it's going to be hard for blue state congressmen and senators to vote for this if all of the state and local tax deduction is removed from taxpayers. >> the bottom line is that you're not going to raise the revenue because the most mobile people are the ones that pay 95% of the taxes which is the top 5% guess what, they get up and they leave >> exactly. >> so what you do -- >> you're going to turn new york, california, connecticut into illinois. >> some very interesting and interesting commentary
yesterday. everybody had a chance to repeat it >> you and i were talking about that yesterday. >> interesting thoughts certainly from mr. dalio and others on that very topic. >> all right. >> plenty of stuff that needs to be straightened out and you wonder if some of this is something holding as a negotiating tool is that part of this somehow i mean, if everybody thinks it's ridiculous from larry kudlow on down, then -- and schwarzman yesterday talking about the confusion on why some of this exists, maybe that's something we're using as a chip or the republicans are using and they will pull it out. >> here's what nobody is focused on i would say with the deficit -- i stayed -- i sound like josh, sorry. i would say -- >> is that the most important thing you're going to say today? >> the deficit putting up this tax bill, there's virtually no chance of an infrastructure bill unless it's all private. >> you know why, steve, because the one thing nobody is talking about the fact that you need to control spending at the federal level, and that's like not on anybody's radar screen.
>> you know what none of you are talking about, it's time for a break. >> yes, exactly. >> i had something that was really important. >> i'm sure you really did. >> that nobody else is talking about. >> up next, steve is tracking bullish activity and one drug store stock down 15% this year the reveal is exin "halftime" is back in two minutes. (news anchor) downtown traffic is still bad. expect massive delays. (radio channel changing) (news anchor 2) all lanes on highway 50 remain closed at this hour. (news anchor 3) the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts, over the course of the week, to about 10 pounds of carbon dioxide. growth is good, but when it starts impacting
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welcome back to "the halftime report," everybody. i'm sue herera here's what's happening at this hour six women have filed a lawsuit against harvey weinstein seeking to represent a class of, quote, dozens if not hundreds, end quote, of women who say they were assaulted by the movie mogul. the suit claims that his actions to cover up those assaults or alleged assaults amounted to civil racketeering firefighters in the los angeles area responding to a 50-acre brush fire in the sepulveda pass in the santa monica mountains just off the 405 freeway. extremely dry conditions, combined with the santa ana winds, fueling that fire the fire is in the vicinity of
the j. paul getty museum donald trump jr. meeting with the house intelligence committee on capitol hill. he was seen leaving the trump international hotel earlier this morning. the committee is investigating possible collusion between the trump campaign and russia. and new research from chase auto finance indicates nearly half of all americans would be comfortable doing their entire car purchase online. for those who don't want to, 76% say it's because they want to test drive the vehicle before buying you're up to date. that's the news update this hour scott, back to you. >> sue, thanks so much pete najarian at telestrator now for some unusual bullish activity in a retailer an telecom. pete >> starting off with walgreens, scott. back to december 1st they bought april, july and january calls very aggressively in walgreens and today they are doing a deep in the money call buying the april 65 calls. very, very deep in the money interesting to see the stock is trading, right around 721 when they made this purchase, very
aggressive to me that looks like a stock replacement. somebody who wanted to have stock and maybe they did what we were talking about taking off some of the stock but they are putting some into the options and maybe that's part of the trade. that's like an $8 type of option, but i was already in there, an i'm in the stock right now on walgreens and i like what i'm seeing as follow-up pain twice already in the last week that's pretty big to me. we also got at&t for you, the second one at&t, also very aggressive we know about this time warner deal we know about how the ups and downs have been going there. april 37 calls 18,now i was told and maybe even 20,000 have been purchased 1.25 there was already buying in there as well, scott buying april 37s and had a decent open interest buying more today and adding to, that and selling some of the 39s so somebody is expecting to see at&t mick a pretty nice move between now and april to the upside stock was around 36.10 when they made this purchase. >> see what happens with time warner between now and then. come back over. >> the trades on home depot,
h & r block and lululemon and first though michelle caruso-cabrera has a look at what's coming up on "power lunch" in 20 minutes. >> there you go, denying my ability to do math on air live coming up at the top of the hour on "power lunch," president trump speaking at the white house expected to recognize jerusalem as israel's capital and move the u.s. embassy there. we'll carry that live. a big lineup, the ceos of new mont mining and hilton hotels and p.f. chang's and kevin o'leary is with us along with robert shiller and oak tree's howard marks "power lunch" at the top hour, but "halftime report" is back after this. ♪ ♪ ♪
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welcome back to "the halftime report. time for the trader blitz. first up, h & r block soaring on its earnings jim? >> this is not because of the earnings this is because next year people are going to need more help with this tax bill and its ramifications. they make all of their money in the april quarter so the quarter that just passed has no relevance. >> this was supposed to simplify the code what do you mean home depot announcing a $50 million share buyback. pete >> expect to see this stock higher but the problem is the stock has run so farr fast, going up, up, up every day i think any significant pullback, 10% off the all-time
high, that's when you buy. otherwise you've got to hold on. >> joe, walmart making some changes in its corporate name. walmart, inc. >> no more stores. >> 50% online growth for the past three quarters, 65 billion spent in this country from november 1st to december 5th over 100 billion to be spend over the holiday season, and we're only at 15% e-commerce that's why it's walmarting >> lululemon reports earnings today. weiss, you sold it last week. >> i did, regrettably though it's flat, maybe down a little look, i still look this. it's not that they have a complete mode, but if you're a lululemon buyer, you're a buyer and guess what, they are still understored. in the u.s. and canada lots of green fields for them ahead. i still like the name. >> speaking of lulu, the ceo, laurent potdevin >> that was good. >> didn't know your french side
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by now you know about the carpage in semiconductors. those stocks are down 8% in the past few weeks wells fargo today sees opportunity in at least one name in that space initiating applied materials with an outperform rating and a $65 price target. that's why we've made it the call of the day. i'm leaning on you on this one. >> it's a great name and after the earnings, as it goes back, the stock was over $60 and corrected down to 49 so the price target of 65 is not outrageous by any means, and you look at the valuation, plus, they have growth when you've got a great valuation they turn middle rates in terms of the pe and you see the growth and the revenue and the profits and in ai and data, there are lots of reasons to be excited. the transformation that's going on in the rest of the world and everybody has to lean on the chip area, chip equipment is the place you want to be to start and that's why he's right about the applied sgleerl is this a
singular call on a singular stock within this space, or can you translate the same type of thing to some of the other names that have gotten obliterated in one week this is down six lam research down 7 and skyworks more than 9 and micron 6 and broadcom 4 president 5 why do we think? >> i think we've got to the distinguish between the chip and chip manufacturers which amat is one of them. you mentioned data and that's going to cause them all to redesign their architecture. that's why amat, koa ten corp and lamb resear and lam research are in a good position. >> i would add teradyne to that one. when you're talking about gross margins that can lift towards
40% and they have 40% of their cash sitting overseas. >> what about micron let's focus on that individually because that's one that you do open. >> why are you laughing? >> because he's been lasting over that for the past few days. >> a good trading call coming up, oil prices are falling. eyilgoth wl to the future pit to see what's going on we'll get the trade there when "the halftime report" comes right back ♪
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and it continues to scrape along the bottom at $93, this is supportive of crude oil prices and i like the fact that we are tolding $56 currently. >> you like the trend and the pull back today. anthony in, what levels are you watching for crude oil >> i think we are going lower from here, dominic the fact is that opec has never been at 100% compliance. gasoline demand dropped by 500,000 barrels and going lower. it was put up and replacing supplies as you can see. that is done 54.90 is the next level down and we get up below that and test before the year is out. >> we have both sides of the argument, the bullish and the bearish case for more future, check out the live show tomorrow, 1:00 p.m. eastern exclusives now we will go back to you and the halftime crew. >> let's trade it, jimmy >> let's take a complex subject
and make it simple oil is no longer an asset and trading on supply and demand and you had four weeks in a row. for the last two years, oil starts to roll over and of course supply is going up and inventoriy is going up it's going further down. you sound angry. >> i don't mean to >> i'm put off by that >> i was angry for jim >> i feel nothing. >> either outside the equator. 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. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity.
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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. welcome back to the halftime report a big show we have coming up from the wells fargo investment forum in new york city we will be joined by those three gentlemen. lee cooper in the midst of this market and looking ahead to 2018 scott as well. rates and the fed and taxes and so much to catch up with mike mayor on what's going on in the financials whether that trade is really back and has momentum into 2018. we will catch up with them tomorrow look forward to you joining us there. pete, you are up first >> one of the companies we don't talk as much about, we continue to own it and it's 52-week highs
and they are buying calls in there as well. when you look at what they do with the snack add and the beverage side and the move away from carbonation, i love the management and the stock is going high >> do you want to address the rumors >> i am not taking over franken's seat >> for governor? >> there we go jesse is my man. >> that's good >> i mentioned this before star city. fce.a. they will come out with the alternatives next year i think they sell the company. >> like what i was saying about oil, i think they will get a buying opportunity for a couple of weeks in the sle. i am saying that happily is that better >> it was mark fisher saying range bound. 40 something or 62 >> i don't think you will see a
crushing bear market, but down to 52, easily. >> back during the show, we talked about dominos good point of entry and got up to the upper 180s yesterday. i take the products. >> mcdonald's hitting all time high with the ipo today. we will see you at the wells fargo conference power starts now >> thank you very much good afternoon and welcome to "power lunch" along with michelle i'm tyler matheson you are looking live at the white house where president trump is set to speak any moment he is expected to formally recognize jerusalem as the capital of israel and announce plans to move the em bass tow that city effectually. this is a major shift in america's policy in the middle east and towards israel. one that many foreign policy experts said could inflame tensions and amend peace efforts. others say it's a move that is overdue that