tv Fast Money Halftime Report CNBC February 9, 2018 12:00pm-1:00pm EST
is down 3% in the early going here >> couple of big techstocks seeing a nice lift today nvidia and microsoft both very much in the green. that will do it for "squawk alley. let's head to scott wapner and the half >> all right, thanks very much welcome to the halftime report our top trade this hour, correction watch stocks trying to find their footing today. everyone wondering the same thing. when will the correction end with us for the hour today, jim, josh, jeff, the founder and ceo of kkm financial rob is back with us today as well he of course with ubs private wealth management. one of barren's and forbe's top advisers pete hanging with up today from minneapolis. stocks have been b juching between positive and negative territory all session long still working on the worst monthly slide in nine years. granted there's still long way
to go in february. jim dow has been in another big ring 600 points today the worst week shaping up since '08. you told us yesterday stocks were going to go down another 3% right on the money what happens now >> let me be careful, scott. i don't want to pretend that i can tell you what's going to happen today or tomorrow but you asked a question and i'll answer it i think this is going to be like a typical correction where we bounce along for a couple of weeks then people real the profit growth picture is still in tact. economic expansion is still in tact and interest rates at the ten-year is at 3%. yes, it's higher, but that's not nosebleed territory. so you're correct. we talked yesterday that i had sold stocks last week. i'm taking a stand today putting a stake in the ground and b i've nibbled at one of my favorite companies, gbx. added 2% to the portfolio. not saying this is the bottom. not what i'm saying. i'm saying i liked it a month ago and now, it's 12% off. over the next two week, i'll be
lagging back >> kind of like the cooperman strategy names he likes, owns, names he bought on the dips that we've seen so rob what is this market action tell you about where we are in the correction cycle >> i think we're going from an overdue to overdone. it's an indicator, houf, it's not always right sometimes you get false positives, so what the president obama fif fundamental backdrop jim mentioned, i think this is a time you want to be considering lagging into the market. i do have some worries though because this severity of this price action has paralyzed the dip buyers they are completely, completely scare d about this and i think you know, when you have this type of move, tl a risk that it spills over spilling into capital allocat n allocation it could spill over to business
confidence to consumer confidence i don't think that's happening right now. i think there's a fear that's building >> josh, it's been violent the velocity of these moves. stacaring the heck out of some people who don't just don't know what to make of the market action and what it means for whether you should get in now, whether it's going to get worse. tell me what you can you think >> rob makes the important point which is this is just a market story. the it's not yet an economic story. i don't think people are radically changing their portfolios just yet. but of course that's the kind of thing that can happen because everyone fights the last battle and everyone allocates fresh money baseded on what happened to old money yesterday so absolutely that's something we should be thinking about. but i think you know, context is important. the s&p has been up every year since 2009 we're down three point something year to date, so we're back to
where we were on thanksgiving. you used the word velocity it's the first time in history we've made a new all time record high then down 10% within nine days it's never happened before so there's a lot of uncharted territory stuff. here's what i want to talk about. if you're thinking about when is the correction over, i always go wak to internals instead of just folking on what the index is doing, look at what stocks are doing if you didn't sell last week, you might be late to sell. only 2% of the s&p 500 names the stocks themselves, are above their 50-day moving average. excuse me, ten-day in the meantime, you have 90 stocks in the s&p that are already in their own individual bear markets the last time we've seen that was september 2015 and january 2016 if you had sold on those occasions, you sold the bottom
doesn't mean oh, we're smooth sailing now that we've hit these extrem extremes that has not been advantageous if this cycle. >> on the moving average, we have touched it three times this the last several years one was january 16 that he mentioned. chinese growth scares. the other was brexit the other was the election you tell me if those represented good buying opportunities in this market. when you have skepticism like we have today and a positive fundamental backdrop, that's the kind of buyer. >> the only difference i would suggest is what may quickly feel like a questionable, jeff, backdrop, fundamentally of rising rates and the fed doing what it's doing on top of the tax reform plan i remember those words at conference that i was at of larry fink saying it's unprecedented. who knows how this is going to work out you've got rates rising. the fed is rolling off its
balance sheet and we're doing this massive tax plan and who the next knows how it's going to play out maybe we're learning >> that's right. we are in unchartered territory. we've never seen fed monetary policy intervene we saw the expansion to 4.6 trillion i think we've become conditioneded. i don't want to diminish the pain in the market there's serious pain, but also wild opportunity i think you have to understand what is that opportunity we've seen the technical takeover, but i think we're going to see more of f a shake we haven't seen the panic selling. two weeks ago, we saw panic buying the bearing were throwing in the towels 100 billion in retail. >> it's felt like panic selling at moments >> i agree with scott, but there's a larger point that i want to draw from this you know, we're all talking about this basically being a correction and scott, yesterday, you asked us all a question, does anyone think the bull market is done an we all unanimously answered no
we think it's in tact because of the fundamentals my clients are more sanguine than i've ever seen them yesterday, cnbc did a report i watched. there were interviewed with people on the street everyone say it was a correction think about this for the last ten years, anytime the market has dipped for any of the reasons you guys swrus mentioned, everybody said, this is it, this is the big one average man on the street said we're going back down because everybody had the financial crisis fresh in their mind the fact everybody is so san beginning quinn worries me for this correction, but i think one year from now, if it's a year, that you get another correction or maybe something worse that e people are quoing to say, it's new york it's brexit, it's the election when something worse happens that we're going not going to be prepared pr the. >> pete, give me the view from minneapolis today. >> sure. well, it's all about air pockets
and margin calls if you look at the final two hours of these days where we've seen these huge moves, that looks like a margin call i mean end of the day. whether used to do it in person, tap on your shoulder and say come up with the money or liquidate. you watch the acceleration in the final couple hours and the air pockets happens all throughout the trading session so what do you do right? i find it very interesting you're not seeing the derivat e derivatives markets the telling you right now this is the bottom just yet what we're seeing in the derivatives markets is folks that are profiting on these moves to the downside or protecting, but probably profiting on these moves to the downside and continue to want to see that i can give you a couple of examples in the industrial space, xli, huge put buying. eem. if you're talking about the emerging markets huge put buying. across the board in many of these huge indices we talk about every day, we are still seeing
put buyers and put buyers that are taking money off the table where they've made money, but putting it down further because they expect to move to the downside so even though i agree with everybody, there are opportunities out there. i don't think you want to just jump in. you might want to nibble here and there. because i don't think we've hit the bottom just yet. >> the dow was at the lows of the day as we speak. call it 280 and the other thing that's happening today much like it did yet i know that everybody's fixated on rates and the level of the ten-year note yield. yields are falling and so are stocks that's another thing that you've got to deal with i know efb's fixated, josh, on what's happening in treasuries >> glad you brought this out by the way, nobody can say they've withbeen watching the sw and weren't aware of the i word creeping back in we've been all over this since december and talking about how shorter term treasury instruments becoming a little bit of competition for either
longer term bonds or you know, rate sectors or stocks and even multiples lo and behold, the one-year treasury, one spot 78 up from .79 where's the two-year 215. >> percent >> so these are big moves in short-term treasury instruments and people that have been out on the risk curve and didn't need to, now they can be in a money market you know, they can be earning 1.5% and taking little risk and might say for a part of my money, that's okay that's enough. i think that's a phenomenon the agg, the big bond market etf, total bond market, it's off 3.7% from the highs. but it's remarkably stable right now given the concerns about rates and it is helping people that have constructed reasonable 50-50, 60-40, even 70-30 portfolios it is doing its job and acting
as balanced as the market swings 600 points 1,000 points >> real quickly, scott, to pete's point, these option premiums it's wildly opportunistic right now. you're seeing people buying puts j and j. an essential name. it's trading 126 you can sell that one month out put collect $3 it's a 2.5% collection >> i love it >> i think there's a great opportunity to get into some of these names you've had on your wish list. parlization, it's down, but you have to stick to your plan >> i'm also watching the s&p which has now reached its tuesday intraday low so we're trying to find you know, testing these lows an pab put iting in new lows rob, you tell me what is going to help you determine when this correction is nearing the end >> i think as sentiment gets more and more negative
i will tell you that the notion of renting the market is something that's very important and structural to etfs i think what they have given people the ability to do is ride this wave while momentum is good and stay positive and then when that reverses, it can sometimes be more meaningful than you think. so i'm careful not to get too over optimistic because of the fundamentals, which i think are in tact. however, you know, you've got to be mindful of sentiment. two things drive markets fundamentals and earnings. and earnings will be good in the short run, sentiment drives that >> the other point, pete, to make here is that you're in a period because of your in the midst of earnings season where companies aren't able to do these big buybacks on that activity is not able to take place now and you've got to believe, i hope you believe, that once you're able to do that, and even more so perhaps
because of this slide we've seen and so many more stocks would be on sale from levels they were prior, that you'll begin to see that as you get into the latter stages and out of earnings season >> and that's just one of the elements, but absolutely, scott. i think that's good point, but i think the reality of the market that we're in right now is the fact that these are these air pockets, look at what we've had since we started this show and you're looking now at the s&p, but also at the dow as it's tumbling down to the downside. we are in unusual times. higher volatility environment. people have to understand just like you and i do, people have to understand when you u sell put, what that really means because people get uncomfortable with that. the other thing is auch time, you use that higher volatility if you dip yourself into stock positions where you can sell an upside call and got the most common strategy out there.
but that's where you've got those extra premiums to give you a little bit more cushion to the downside it doesn't feel as bad if you can you continue to slide. scott, it's just an incredibly volatile market we're in right now. those buybacks, sure, that would be great, but i think that's just one small element that we're talking about here the rest of it really, it's the algos. look at how they love to find momentum and then the computers come in and push things down in a vel ocity like something as cooperman said the other day, that we've never beseen before. >> nasdaq after its own leg down recently in the last several minutes is now in correction territory in and of itself dow and s&p in correction, down 0 10%. nasdaq is at that now. jim said he bought greenbrier because it had reached an attractive level i've got the nasdaq in correction is anybody looking to pick off these tech stocks that have fallen they think unfairly or fallen to
levels they didn't expect them to get to and are now buy iing? anybody? pete buying anything today? >> i have one, not today yesterday, during the show, actually, latter part of our show, i actually did dip into vmw. this is a stock i'm sure it can go further down, but i did what i was just stating bought the stock sold some calls. got an incredible premium for those calls and it gave me an opportunity. do i feel like i bought the bottom absolutely not but when i see a stock that goes from 165 a week ago that's trading about 110 now and probably lower, now 109, that is you know, i don't feel like i'm buying the bottom. but i'm getting something at a deep discount on somebody that i think they're in the right space. got the right fundamentals i like the company, where they're going and i think there's opportunity. so r there are some out there, scott, but i'll tell you what, don't feel like when you dip yourself in you're buying bottom because you're not >> there's real quality in tech
right now with twitter and snap chat >> that's a short squeeze. >> i think what's interesting is that the highest quality names, other than apple, are not letting you in you don't have people selling the best highest eququality dwrt stocks on things like oh no the economy is getting too good. they're down, but not down as much as you'd like the real pain is happening xlu off 15%. energy names down 15%. those are areas that i would not say are high quality but not the growth stocks that everyone wants they're down >> duke energy there's a name that's been thrown away. if you look at utilities in general, they're all lagging if it's a chubb insurance, the hire beta, the faang stocks, you're seeing a lot of cash come out of those >> scott, let me add to this we were trying to figure out how long this correction goes on how deep it goes this morning i woke up, i read the headlines like everybody
else fund flows was reporting there's a record outflow from equity funds. $24 billion. that's mostly retail investors getting scare d, taking their money out of the market. that doesn't finish in a week. people go home on the weekend after a week like this, they're working real jobs, not look iin at the stock market every day like we are. think think about it over the weekend and think maybe this is too much ris bk for me next week, they pull more out. it's a process that takes a few. >> this week below the 200 day and people say, oh, i don't believe in technicaling. that's fine. technicals believe if you and a lot of money is being traded based on trends. you u don't have to like it. but it's still happening, so if we go out this week for the first time in something like 420 days or whatever below the 200-day, not that does anything to the fundamentals of companies, but it changes some of the psychology and whether you like it or not, hurricanes hundreds of billions of dollars
are being run. sitting on that level. >> that knife cuts both ways volatility comes in. those programs are going to buy. rates come in. >> some will do the opposite we don't know who wins that tug of war >> you are seeing what's happening. i'm agree iing that volatility s amplified by these both up and down >> bigger picture, hold on the growing pains we're seeing, if you're an adviser, and you see this move down, in fundamentals are still positive and sentiment is negative and you're not telling people to take action on whatever shopping list they have, because they're investors, they're thinking more long duration about the portfolio. you are make iing a mistake. not saying you buy it now, but you've got to think about it when a kid grows too fast, it hurts. >> i think the biggest thing we're forgetting about is that assets don't remiss over a week.
all the cycles we've seen, it's over months, over quarters this spastic reaction, there is overreaction >> great point i will pink nailed something that you win over very quickly. there are obviously margin calls going on that's what this is. pete, you know it when you had all these inverse vix etfs blow up there were hedge funds long these things there are margin calls going on. you're right on that >> thank you, jimmy. yeah, it's clear though. each and every day when you see all you've got to do is with the final hour and a half or two hours, and you watch the acceleration to the downside, that's exactly what you're watching you're watching margin calls and you've got to be prepared for that including today it's friday. obviously. but last friday, i was sitting there with scott at 6:00 at night and we were talking with jim cramer after the market dropped and that accelerated towards the latter part of the day. so i'd expect to see that again.
>> the margin clerk doesn't ask if you want to work the order. >> no, he doesn't. >> we're going to step away. pete, you're going to stick with us stay with us we're going to take a quick break. we're going to find out what unusual activity pete is see ng a part of the market what it's telling us about where this correction could go next. that's straight ahead. there's a lot more coming up on the halftime report. >> coming up, one analyst says this dow component is set to jump 20% we're debating the call of the day. next plus, 1918 olympic winner, rob mcclanahan part of the miracle on ice is with us live as the games begin in korea but he's been busy with the markets lately, working if finance. ies en'selngishe tli h clntwh halftime report rolls on
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67.18 is where tech currently is trading. all right. united technologies. is upgraded today to a buy the firm has a $150 price target that's a 17% upside from here. it's our call today. because we look after these calls and what do you guys think of this? so many of these industrial stocks were doing so well. coming into the correction then the correction happened and a lot of stuff has fallen out of bed. is this time to get into these names like utx >> you saw me smiling, so many of these stocks have gotten hammered why not utx, honey well, emerson. first off, we've been talking about the markets and i think you can nibble here if you like united technologies, fine, but i'm not going to distinguish it. all are fip. you can nibble, but don't load the boat here. >> it's tough tape
utx. it works in a lot of different sectors, but at the end of f the day, you going to see the pullback but again, i look for discounts and they provide the discount. >> got a 6% discount i know it's a tough take at some point, aren't stocks like this going to be worthy of putting in the cart? >> cash covered. very important there don't want to mislead anyone these are names that you can get paid for lower entry this is a name we like from a diversification standpoint for sure >> just to be more clear i think the markets from here to december 31st of this year are going to be up nicely. united technologies will contribute to that is it going to be the best performer? i don't think so i can't tell wrou what the best is i don't think it's united technologies, but the market's going higher >> pete. >> one of the things we talked about this past friday, scott, we talkeded about what are the areas you'd p nervous. i brought up industrials i love them. i think the names give you
growth diversity. you've got segments for united technology that fulfills just b about everything you're looking for. you look at the strength they've got and the acquisition. they are doing everything right. but you look at pe level just when you were talking about 6% go boy, that was pretty high. boeing, pretty high. you're waiting for these pullbacks. i don't know whether you've gotten enough yet to jump in because quite frankly, everything is going right. but you've got to still look at hey, where is the price versus the earnings versus the growth u. they've got growth it's not massive growth. but they do have growth. no doubt about it. sales is up 7% earnings up 2 or 3%, so that's great, but when you look at where it is on a pe, it's not cheap. i think you've got to be very, very selective when looking at the variety of the names out the there. >> i can't help but find it interesting that so many of these big blue chip stocks and
we made the point on this program a couple of week ago that i did not remember a time where you were getting double upgrades you were getting them to buy or outperform thinking that no matter how high they had gone, there was a lot of runway left now that they've come down 6 or 10%, nobody wants to touch it. >> because price drives and analysts upgrades and downgrades are nothing if not sentiment manifested in the form of a nine-page pdf that nobody reads. my price target is 80. goes to 90 it's now 100 >> i get it. i'm only bringing it up because it's an ra poe for sentiment it was so far out of the stratosphere that now we're wondering why these stocks are having such violent reversals. >> you'll start seeing downgrades and nothing changes with the companies so take that as you will utx has found support in a rise
in 200-day it's about 120, 121. if you have to buy it and you want to be in it, maybe wait a couple of points and see if the buyers come in there >> i think time h take oaf you'll see a washout here. play those 121.53 that's an opportunity to get into the game. >> you know, when you look at the in defense of the analyst, you have 19 months in row without a 5% correction positive view on the economy, the sector, you're going to upgrade and chase. >> i'm saying no wonder that you had then people start to bring out the e word, euphoria, when dwen, we made this point, too. s&p targets blown through. what do you do get cautious no, raise your s&p target. the price target on a stock gets blown out. what do you do double upgrade it because you
think it's going to rise >> human nature and that's why as investors, you do the best you can. >> we're sit iting here today a we've gone through 10% of a pullback, pete, and then i've got no takers. no takers on these stocks that were double upgraded a couple of weeks ago. >> there are certain area that i think, we talk about this all the time one of the things we've b discussed is what are the areas of the market where we've had just names that have gone absolutely through the stratosphere obviously i put this industrials in that space. there were others that we were talk iing about where you did b the dip. there are opportunities out there. i mean i think some of the technology names, after the massive dips that we've seen in some, i think there does create opportunity to buy i just think in the industrials, that's one where you can sit an wait and i know josh is discussing these moving averages, so i guess you'd sit and wait get at that level. then you've got to pull the trigger though you don't suddenly change just because it does hit 121 and you
get nervous. i think you have to stick to a discipline of where do i enter and exit >> here's what we're going to do if industrials aren't the place you want to go in, you got tech. worst day since brexit discretionary worst day since august 15th. energy on pace, worst week since 15 financials worst week. can i just maybe -- h this might not be a popular opinion, b but it's relevant because when you get into a correction, correlations spike intramarket correlations spike intrasector correlations and i don't know that they all bottom at the same minute, but the idea that oh, i'm going to hide out in consumer discretionary and be down 9% versus hide out in tech and be down 11%. that is not frankly the way investors are thinking in moments like these those distinctions are not matter until we're on the other side and then we throw up a graphic and say, oh, look, this is sector recovered 15 minutes
before the others. that's not what's going on on the street right now >> i agree and disagree. >> i liked it better in the beginning where you agreed >> i knew you would. the reality of it is is that there has been dispersion of performance. non u.s. has outperformed. >> not so slightly >> percentage points is not so slightly in a week and a half. >> pick your market. hong kong's down more. >> the point is that emerging markets -- >> i love you any way. >> i want to go to chicago rick santelli. up there, he's watching the bond market closely rick, i rustled you up because i'm wondering what you make of, and this is the second day in a row, where yields are falling and stocks are falling >> well, you know, 284 is current ly the high yield close for the year for tens.
we're at 281.5 so yeah, they're falling i don't pay a lot of attention intraday moves they're a roller coaster i care about where we got off and for the most part, even though there's margining throughout the day, it's the final price that's significant but i've made something easy here the long end has been the star of this drama/tragedy we've been living through and if you look at where it is now, it's at 313. you know what it saw the last week, 309. to me, i would watch that more than anything. to me, this isn't b about necessarily picking up which yield above us is going to be the big yield. i think it's more about how firm it is relative to its ongoing continuing higher weakly closing yields, but i also think that the 30-year was so lazy for much of 2017, the knob spread note over bonds, pop r lar down here. maybe not so much on the retail side with regard to what spreads people trade really was getting quite narrow. it looked like it wanted to bring 20 basis points.
so there's a lot of information to be gleaned about the 30-year bond >> we've made the point, i know i have multiple times on this show, that the tax plan that went through was wholly transformational the kind of tax break you gave to corporations is absolutely transformational you're going to see it show up in their earnings power. but i also feel though, rick, that maybe right now, we've changed the narrative a bit and we're looking at the tax plan, the budget deal. we're looking at infrastructure talk and maybe it was all too much too late. >> that's a great point. but do remember, we had close to $1.5 trillion deficits under the last administration several plus years in a row and why didn't we make a big deal about it then? because the fed had low rates. now all the issues you've
described, a shot in the arm with regard to tax reform is making the fed and their balance sheets globally intersect with the shot of adrenaline so i don't think it's surprising but at the end of the day, let's remember one basic concept the stock market and the economy wrooim, but they're not synonymous and if you look at the wreers around '11, '12, '13, the economy was spongy, but the economy was pretty good. these things happen. there isn't correlation set in mortar with respect to the economy, markets, tax policy, earnings especially when you have fed balance sheets even reduced from their 16.4 trillion combined highs. they're still over 16 trillion and the turn over the last couple of training sessions really is i think at the especialpicenter of what's goinf you really want to look at it. >> there's a reason that a guy like larry fink has the job that he does after the company he does with the amount of assets
that blackrock has under management and i brought it up already, but i haven't gotten your take on it. it's this idea of doing this perhaps too much too late tax thing chlgt all of the deficit explosion that's going to happen as a result. but then also at a time as you said, rick, when the fed is raising rates and unwinding its balance sheet at the very same time it's a cocktail that may look good when you're mixing it up, but when you taste it, it may taste like crap. >> i tell you what, i would never say a negative thing about tax reform letting business have more money to spend in a much more efficient way. although there have been times where people in congress used to say food stamps were stimulus. i'm sorry. it's a good thing. we just can't help it that the good thing was built on top of a bunch of bubbles and stimulus almost a trillion dollars if you recall, rig aftht after the cri that put a few curbs in a few suburbs. i think this is real it's just a time, the length of the business cycle
how long in the tooth this recovery has gone. a dangerous intersection, but i still say don't blame good tax poli policy blame the fact that the balance sheet started to be reduced three and a half years ago >> it wasn't we deal with the here and now. >> but i still wouldn't point a finger at cheapening capital from the perspective of business we're talking about the small compani companies, the pass throughs that generate the jobs i would never say let's not do this because the fed is going to reduce their balance sheet and try to be great parent, but spoil their kid. >> i've said, it is transformational right? i mean, we -- >> absolutely. i couldn't have picked a better word, scott. that is absolutely right >> rick, we finally have the inflation that everyone was wrongly fearful of >> we think we do. >> wait a minute but now it's good. and deficit spending, the biggest enemy of america, now it's good. >> i didn't say, who said
deficit spending is good >> how should the viewer, well, the people that are about to prove a stimulus plan after just approving -- >> congress. congress, the only time they get together, the only time the independents, the democrats and republicans get together was when they agree on more spending i'm not pleased about it i think the it's a horrible thing. but on the other hand, everybody's stuck between a rock and a hard place because we have boat loads of stimulus that were rotten policy stimulus in the past and put us in a precarious situation. >> rick, we got to split thanks for joining the conversation >> i love the group. >> i think it needs to continue. thanks so much rick santelli in chicago up next, pete najarian with the bearish options activity in one place of the market i know you have interest in we'll tell you about it when we come back.
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can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. all right. we're back pete has that unusual activity pete, we teed it up for you. tell us what this bearish stuff is you're looking at >> you know and we don't bring this up a lot, scott, as you know
people sometimes get frustrated. they say hey, you guys are always talking about the calls yesterday we talk about the iw inputs that were aggressively put. when the market was still strong in toz pif spot, i looked at the qqqs and some huge roll downs there, scott while we were in positive terlt. they were trading at the 156 level and somebody took off a trade they made a lot of money u on the may 155s they rolled it into what you're seeing now 17,000 of these were bought. what thauz dozen that mean they were bought for $4.43 with the anticipation that the qs have further to fall so somebody who was right to the downside is expecting to be right again. i followed along i bought i'm out into may if these move dramatically for me, ooichl going to take them off, but at least i have plenty of time to hold on so if it takes time, i'm willing to hold on to that for a little while. >> it's interesting bet being
placed what about visa, pete? >> that's one more we've had it on a couple of different occasions. jon talked about it just the other day. but we're seeing again today, they're adding to some of that, but they're going out to june with plenty of time. so pretty aggressive buy iing there. 8,000 of the june 120 calls aggressively bought. that's interesting to me in this negative market, you are seeing a little bit of putting the toe in the water in terms of just trying to see where they want to be that's a name. i love the growth aspect of what's going on in visa now. i love the name. i own these calls, so i got plenty of time it was good to see adding to that today >> i got you have a good weekend. >> sounds great. >> all right from miracles to market, rob mcclanahan, one of the mar star of the hockey team of 1980 is with us next find out what he's telling his
clients about the stock market he works at financial services now. can't wait to catch up with him. first, we're catching up with tyler mathisen >> one of the things is that you're going to join us, scott, about half past 1:00 and we welcome you forvigilantes. are they in charge what does it mean for stocks that would be one of the best brains on the street, he'll join us market psychology, stay calm and not let your emotions take over your investments and we'll get a technical take what do the charts say is a bear market coming out of hibernation or is this kind of a garden variety correction. we'll see you at 1:30. in the meantime, halftime report back after this. the dow down 347 feel that? that's the beat of global markets, the rhythm of the world. but to us,
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today? >> well, there's a couple of things that's been going on really throughout the week from the eia confirming the iea is increasing production to numbers we haven't seen before that 11 million barrel a day number for 2019 is pretty big. but i think there's going to be a pause here this is exaggerated. crude is in correction territory now and i think it will be bought based on a number of things, not the least of which the seasonality, which gets strong mid february. >> it's oil's worst week since november of 2016 what are the levels to watch >> down almost 11% broke through minor support at 60 and right now, it's at 59 in my machine opinion i think now the risk is now to the upside if it holds here and forms a bottoming pattern, i'd buy it. i'd throw in two more. there's been dollar strength and crude seemed to trade. not insignificant.
>> for more on crude, you can catch futures now ef tuesday and thursday at 1:00 p.m. eastern time scott, back to you >> thank you so much well, he went from being a key part of team usa's hockey gold medal in 1980 to the nhl then to the world of finance so what better day to talk to rob mcclanahan he scored the game-winning goal in the gold medagal me against finland. we'll talk markets, hockey and limbs next on halftime oh, and there's the closing bell. (sighs) i hate missing out missing out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, only with td ameritrade.
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welcome back to halftime report a check on the markets where the dow is down by more than 400 points this minute that is a loss of 1.35% and as is the s&p and now the nasdaq, during the last hour joining that group nasdaq is down more than 2%. and some of the biggest names within it, the five names are getting crushed. google is below $1,000 and we'll hit those. the winter olympic games underway in korea today. our next guest knows a thing or two about going for the gold rob mclanahan was a winger on the olympic hockey team in lake placid and scored the gold medal goal and today he works up in minneapolis and that is where he
joins us today live. rob, it is good to see you welcome back. >> thank you, scott. good to be here. >> always a treat to have you join us. we had al michaels last week from the super bowl. so it is all coming back us to, some 38 years later. >> we've had a little action here in minneapolis over the last week. it is fun. >> so tell us about the marks. you've been around the block a bit in finance morgan stanley, piper, and now craig hall um, what do you make of what is happening right now >> well it is -- i'm not going to be a market -- a technician but i will say that this move that we've seen here to me is overdue and i would say it is not something that a lot of people have seen over the last several years but i think it is something that we -- the market will be able to take and digest. >> it feels to you like -- maybe not a garden variety correction because of the velocity in which it has taken place it is -- certainly scared the heck out of a lot of people but
you don't have a feel and those at your firm don't have a feel that it is more than just a long awaited correction. >> actually, with our firm we have several analysts that feel this is a great opportunity to step into some stocks. we -- the semiconductor is a stock we've liked and the entry point here is very attractive. side games is another stock that we've liked and it is another stock that we would take advantage of on the weakness. >> are you guys mostly into technology and things like that? what kind of stocks do you keep your eye on these days >> so our firm covers technology we also cover some industrials and some health care stocks as well but would you say our largest part is in the technology area. >> when the market had this great run and then in january seemed to take that next leg higher, were you guys sitting back and saying, you know what,
this sounds a little too good. this maybe is a little bit of euphoria starting to creep in. it is time to be cautious and maybe folks have gotten too complacent >> well we are not a market timer. we are more of a firm that likes to pick stocks and we do a good job at that. so each analyst has they're levels where they are comfortable to step in and we leave it to those analysts to make those choices. >> let's talk some hockey. we're 38 years removed from the miracle on ice you don't have the pros going this year so if anything it is the closest to back in the '80s when the amateurs were playing are you still following and watch the olympics, hockey as close as you once did. >> i follow all of the olympics. i love the winter olympics obviously. my wife was a division one ski racer so he enjoy watching
skiing this year in hockey -- we have still have four kids playing hockey and elder statesman playing over in europe so it is an interesting tournament this year. >> i'm wondering, lastly before i let you go, the marks are doing their thing and i'll keep it brief what do you remember most about 38 years ago unfortunately coach brooks is left us way too soon, years ago. but what do you still think about when you remember those days >> well, it was an unbelievable experience it is really hard to describe in a short time and with the words. but i will say this, the fact that we're still talking about that 38 years later goes to show you it was an impactful moment not just for the players, but for the entire country and it is something that all of my teammates and i are very, very proud of and we enjoy -- we enjoy discussing whenever someone wants to bring it up. >> it is funny, most people focus on the goal against the
soviets but you did score the game-winning goal against finland in the gold medal game. >> yeah. rizzo made a career out that and and done well. we give him a hard time. but it was an honor to play for the usa and win the gold medal and it is just something that -- as i said, we're all very proud of and we always keep our heads high. >> he said if the shot was one foot to the left, no one would remember his name at all. >> he would be payton bridges. >> rob, you do well. it is always good to catch up with you we're glad you are doing well. we'll root for team usa as we always do. and think of you and the rest of the guys thanks so much. >> thank you rob mclanahan joining us we have a twitterquestion from a viewer today and it is for josh brown back to the markets. please ask josh his opinion on twitter at these levels. a lot of stocks selling off. you said -- jokingly, twitter is
a safe haven it is like gold. of all of the ports -- >> listen, this market feels heavy. so if we come in and the nasdaq comes in, i don't see how twitter keeps most of the gains that it put on if we kwr -- we were in a more hospitable state, but they released a profitable quarter into a stock market crash. so it is what it is. however i'm holding it and i'm not concerned that it may fill that gap back down and come back to where it started and people will be upset but i've been long-term in the name and added when it was in the teens so i'm not a seller here i have a long-term view that this platform is more valuable than people give it credit for and they're worried too much about users and not enough about the prestige of the user and how impactful in the world the messages are on twitter. so i'm not a seller. but i have no idea whether or not this this could old up
my guess is no if the overall market stays the way it is. >> could we throw up google. take a look at this stock. you said before the show that you were looking at this especially under $1,000, which it was, just a short time ago and it has gotten a bounce the market has bounced off the lows as well. >> so i have a post about this on my blog that kind of went a little bit viral earlier this week one of the things that i did when we got into a situation like this and it is a long time, i put ludicrously low bids in, in the stocks that either i don't own enough of or i missed out and it always made me upset. and i use good until cancel by limit orders so i'm not just randomly flinging in a trade and when i feel like it i will set the number where i want to own it and i won't get hit, but it makes me start to root for the market to get lower. it is this weird psychological trick i play it helps me hold on to the rest of my portfolio. and sometimes i steal some stocks and i did that
in 'netflix and facebook i don't even want you -- to tell you the price, and it is not because i pretended to be an amazing trader and i just said let's make this interesting. google is a name i would do this and facebook sitting on the 200 day right now. so facebook has not even glanced at the 200 day, so long i can't remember when the last time was. >> people were making the argument when we were near the highs that google and facebook, if you are looking out a few years projecting earnings -- >> those people don't understand that the e-part is not the part that determines where the stock goes short-term. the e part is the most important long-term. are earnings growing but in the short-term if the market one day feels like paying 30 times for facebook and then a few days later decides, you know what, we only want to pay 25, it doesn't matter how good you are at estimated the e., it is the p. that is moving the price on a day to day basis and frankly
there is no real way to predict the p. the only thing you could try to do is understand psychologically and that is by using technicals. >> it is good to have you here the dow is down by 185 it is traveled nearly 17,000 points this week believe that i'll see you in a second on "power lunch." it starts now. >> i'm michelle caruso-cabrera calling it a wild week understatement a thousand point drops and triple-digit rally and point losses it is crazy. the central question, where do we go from here? we're getting feedback from you, the viewer, the individual investor send us the questions at power lunch at cnbc.com and we'll answer them this hour. and don't be fooled by the plunge in stocks, the real field might be in bond stocks. is someone sending a