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tv   Fast Money Halftime Report  CNBC  May 11, 2018 12:00pm-1:00pm EDT

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internal audit >> you know who's winning? facebook near all-time highs. getting close to that $190 a share mark just shrugging off all of those issues seems so long ago. scrolled up in the timeline. >> that's right. refresh, refresh have a good weekend. we'll see you on monday. let's get to the judge and the half >> welcome to "the halftime report." i'm scott wapner our top trade, the apple streak. the stock goes for its tenth consecutive up day would be the longest run in eight years. what that means to your money and the broader markets. with us, jim, josh, jon, sarat here as well apple, that stock getting closer to a trillion dollars in market cap. doc, this thing is recharged, and it doesn't seem to want to slow down, all beit a little blp let's call it flat, but $189 >> apple on fire, been on fire
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since the earnings, judge. the same thing, believe it or not, in paypal i'm not trying to switch on you, but i'm saying there's a couple stocks that have hardly had a down tick in the month of may. and apple and facebook are two of them that have just been kicking butt and taking names. love the stock, as you know. the only big cap i own i continue to own it here and i'll keep writing calls against it i think it's going to finish the year just as strong as the last month indicates. >> i would be talking about $200 in the not to say distant future you own it as well >> i own it as well. we're talking about this march to one trillion. i looked at the q for the most recent quarter the share count went from 5.1 billion shares a year ago, to 4.9 billion. whereas a year ago, $190 a share would have been $1 trillion, now you're looking at 203, 204 to get to a trillion. there hasn't been much news this
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week, yet it still keeps going up this can't keep going? >> why not why wouldn't it be. >> what it could also be is the buybacks taking place. >> both. it's both. >> let me finish every quarter, we're going to have to look at what the share count is because $204 a share right now would get you to a trillion probably next quarter, it will be closer to $210. i think it will get there by the end of the year, bt it's not an easy lift. >> obviously, buyback, they announced a big buyback. they have the buffett double down all of it is playing a role as to why this stock has new life >> he's buying 10s of billions of stock, talking it out of the market the company is doing the same thing. could you imagine if only they could innovate, where this company would be by the way, we can't run the counterfactual, we can't go back in time and prevent buffett from announcing he bought the huge amount of shares he bought on top of what he already owns.
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we don't have the ability to do that, but i do think in hindsight, of course, that represented a major turning point for the market so now you're looking at the first two back-to-back up weeks for the nasdaq 100 since february you've got 61% of the s&p back above the 50-day, short term moving average again, the best level since what we saw pre-february flush. you've got names like nvidia come out with a blockbuster report, open down, now well off the lows you look at facebook, google, very important stocks in the market, both up 5% on the week and i think tech continues to lead apple continues to be a very important part of that maybe not on each successive day, but since we got that news that buffett found value in the biggest technology stock, biggest stock in the world, i really do think that's been very supportive for sentiment you have seen that reflected in the prices >> we discuss that that was a key catalyst to getting this - >> i wasn't sure about that at
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the time you were right i was a little skeptical but just in hindsight, looking at price action ever since then, seven straight up days for the dow. russell 2,000 and the microcap index are literally inches from record highs i think all of that can be traced back to the shot in the arm of confidence at the exact moment we needed it coming off the 200-day moving average >> sarat, that brings me to you. you own very little apple. you're talking value buffett sees value you're saying there are better values elsewhere >> what i'm saying is we made a lot of good money on apple we took the capital, we took it earlier than we should have. and i will say that we made a mistake there. but i'm not going to chase it at these levels i'm going to look for other opportunities. i bought facebook when it was down that was the opportunity i like google. i like some of these techs, but i think there's also other opportunities to spread around this is a good sign. what josh is saying is the market needed this to get the
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growth stocks back you're not going to get the market ahead unless the tech was ahead. unless you see financials, industrials go so all indications are there is opportunity ahead. >> it is incredible, really, from the moment buffett told becky he bought more, the stock and the market itself has been on a bit of a tear let's go to the white house. the president meeting with auto executives today >> thank you very much, we have at this table the biggest car manufacturers in the world all represented by their top people and mary, it's nice to see you again. we had probably my first meeting was with you and a group, and we made a lot of progress in the last period of a year and a half we're working on cafe standards, environmental controls, how to build more cars in the united states we have a great capacity for building we're importing a lot of cars. we want a lot of those cars to be made in the united states i think what we'll do just very
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quickly, because we're represented by so much media, we're just running around the room quickly and you can introduce yourself and the company. we'll talk for a couple minutes and we're going to talk privately. but we're going to, again, for the media, we're really talking about environmental control, cafe standards, and manufacturing of millions of more cars within the united states for michigan, for ohio, for pennsylvania frrx all of the different places south carolina, getting bigger and bigger north carolina so larry kudlow, everybody knows. go ahead, elaine >> elaine chao, secretary of chancetration. >> scott becker with nissan norkt america. >> i'm from volkswagen >> very good thank you. >> bob carter, north america >> by the way, thank you you're moving to michigan. >> yeah. >> from mexico >> yeah.
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>> that's what we like now he's my favorite man in the room big announcement the people in michigan very much appreciate it. it's a big deal. leaving mexico, going to michigan that was a very well received. i appreciate it. thank you. >> bmw >> good. >> mary barra from general motors >> mercedes-benz >> rick, honda north america >> representing seven of the manufacturers. >> john bazella. >> brian smith of north america. >> scott pruitt, epa >> mr. president, thanks for having us. jim hackett, ford motor company. >> we know you well. so these are the biggest in the world. we're going to be talking to them, and we want them to build more cars in the united states and also build them here and ship them overseas we're doing a reverse act. and that's going to be something
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i think that's happening, and we see it happening, a lot of it has to do with the great tax cuts and tax incentives that people have been given and we have other incentives coming so we appreciate you all being here and thank you very much, everybody. appreciate it. thank you. >> do you have confidence in administrator pruitt >> yes, i do thank you very much, everybody thank you. >> time to go. >> say it. >> are you concerned nafta may adversely affect - >> we'll see what happens. we're negotiating nafta. i have never been a nafta fan, as you know. nafta has been a terrible deal for the united states, one of the worst great deals in history. we have some bad deals in this country, between the iran deal, nafta, mary, we can look at any deal bad deals. now we're going to good deals. nafta has been a terrible deal we're renegotiating it now we'll see what happens mexico and canada have -- look, they don't like the lose the golden goose, but i'm
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representing the united states i'm not representing mexico, and i'm not representing canada. but nafta has been a horrible, horrible disaster for this country. and we'll see if we can make it reasonable thank you very much. >> all right, that's the president, of course, at the white house, meeting with auto executives today among them in the room, mary barra, went around the table the head of fiat chrysler, a nice laugh there between the president and him, my favorite man in the room is what the president said regarding a plan by fiat to move a plant to michigan from mexico they're there to talk about cafe standards, the environment you saw towards the end, the president pledged his confidence in the embattled head of the epa, scott pruitt. that was the business taking place in that room eamon javers standing by at the white house. that's one piece of business today, eamon, before the
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president later this afternoon discusses drug prices. >> yeah, that's right, scott what we saw there was the for-camera part of the meeting what i'm told will happen next in the meeting after the cameras lever the room is the president is going to ask all of the automakers what they think the miles per gallon and other standards should be for cars nationally this comes against a backdrop of a dispute between california and washington, d.c. over what the emissions standards ought to be. the trump administration is proposing pausing on emissions standards on 2020 and not going forward for a number of years. california wants much stricter emissions standards. the automakers are sort of caught between these two they want one national set of rules overall so they don't have to make cars in different markets and figure that complexally out. that will be a difficult negotiations we'll talk to the ceos when they come out as you say, the president is also talking about drug prices in the rose garden at 2:00 p.m he'll make his pitch for how to lower drug prices in this
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country, but we're told that he's not going to go as far as saying that he's going to allow medicare to negotiate prices directly with those drug companies, which is something that advocates of lower prices have said the government should really do. use its purchasing power to get lower prices for the government. instead, we're told, there's going to be a mix of measures here that are proposed i'm told those will be market moving in terms of the pharmaceutical stocks but they won't put those out until after 2:00 p.m., after the president starts to speak. we won't get specifics on that until after we see the president in the rose garden at 2:00 >> thanks. we'll talk to meg tirrell in a bit about what to expect from that later on this afternoon eamon javers on the north lawn >> let's button up the apple conversation we didn't get a chance to bring up the luke that gene munster is out with today he talks about a new paradigm for investors in the way they should look at apple greater visibility in the iphone, he says, is one catalyst two, services. three, cap return. and four, new products based on innovation. >> i think the post important of
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those is the services. we have talked for a long time, and josh made a funny quip about the lack of innovation there, and that centers on the iphone which still is 60% of this company. however, 15% of the last quarter revenue came from services it's growing at 30%. that can be an antidote and offset to this somewhat boring lack of innovation in the iphone >> it's funny. when he talks about -- gene munster does, innovation, he's even going beyond any sort of innovation you would expect with the phone. he's talking about original content, augmented reality, including glasses. autonomy, automotive autonomy, opportunities that are not even reflected yet in the valuation of apple shares. >> i hope he's right i'm going to tell you two things first, you could say that about a lot of the tech giants if way mow were a stand alone company, you could make the case it would be worth as much as tesla, and there's no way at today's valuation, investors are
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giving google credit for anything going on there. probably because they can't see it, and that's fine for right now. apple has things cooking that they're not fully getting credit for in their multiple. however, this is the caveat to that a, none of them are big enough to really be able to move the needle relative to how big services and devices are and , and maybe this is the most important thing, they have not succeeded at many of the large-scale projects they have attempted starting with tv and then they have been talking about cars forever, and then we heard about health the speaker for the home is an also-ran, to be charitable i think it's like too early to say it's a new paradigm for any of these products. >> we'll see apple, just one of the tech stocks that's been higher lately our seema mody is looking at the other big winners in the space it really is a refinding the mojo, right? >> it absolutely is. the biggest names in technology have regained a lot of the
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losses and they're testing new highs. facebook, amazon, apple, netflix, alphabet, all up between 8% to 12%. amazon is now less than 2% away from its all-time high now, facebook has also recouped all of its losses since the cambridge analytica scandal broke. some traders bought the dip and were anticipating strong earnings to drive the stock harder but way, there's more. china trade tariffs sent chip stocks lower, but they have also rebounded in big way, led by amd, nvidia, and despite today's drop in nvidia, it's still higher by 14% in the past month. look at intel and texas instruments, significant gains there as well. some analysts say a number of risks if you look at tariffs, if the tariffs are imposed, that could hurt tech companies, business in china, and something to keep in mind is valuation the size and speed of the comeback means 33 times earnings
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versus the s&p 500 >> you look at the month to date gains, the nasdaq in and of itself is up 2.5% in the month you look at the facebook gain, 8.5% the smh is 8%, apple is 14.5%. amazon and netflix have done well this sector, for all of the worries about is tech done and what's going to pick up the leadership role, okay, maybe we push that to the back burner again. >> and it's broadbased it's not just the fang names there were some names that you're talking about in there that are old line technology texas instruments, intel, cisco set a new 18-year high yesterday. they're going to record earnings next week. you also have qualcomm, which sarat and i both own it's up about 10% in the last couple weeks >> they came back and said we're going to do a big buyback as well >> follow the cash >> $10 billion buyback, you're seeing that surge in buybacks led by the technology sector >> it's not just fang. >> although the teeth are back
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in the f in fang i mean facebook -- >> at $188 >> this far away from $190 >> it was at $149 and change >> who was pounding the table here for it? >> me. >> me, you and i we were pounding the table for it i loaded up on this in call spreads, not in stock. it has rewarded me richly since then, from basically the $151-ish level up to here. still long it. still long the spreads, scott. it's interesting today that there's a little bit of focus, even though cryptoes are down on the week because of buffett's comments and the korean exchange raid that happened last night. no, it did >> i believe it. >> nonetheless, the former head of messenger at facebook is taking up the cryptocurrency trading arm over at facebook that could be pretty exciting. >> what do these guys do that were short facebook in the $149, $150 - >> smart guys, too
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>> there were plenty of voices on this desk as i was asking all of you, at $149 and change, real really, you think it's going lower? i didn't have a ton of people ready to jump forward and say i'll buy it. >> i would have guessed lower. i wouldn't have guessed new high two weeks later. >> the sentiment had gotten so, so negative. and this is representative, if nothing else, of the way that the overall market narrative has changed. >> look at any company that has dealt with some type of controversy or a scandal, whether it be facebook, equifax, it's recouped mostly all of its losses amazon, those negative tweets from president trump, now 2% away from its all-time high. good stuff seema, thanks. >> as eamon javers mentioned, president trump is expected to lay out his plan to bring down drug prices later this afternoon. we're going to give you a look, there's the white house, of course that's taking place 2:00 this afternoon. meg tirrell has been following this she's going to join us in a second >> market is trying to build
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seven straight days for the dow. it's been a run of six days in a row. apple remains the big story. the march towards a trillion dollars in market cap getting ever so closer today, itself going for ten straight days of gains. that would be the longest winning streak for shares of apple, wow, in some eight years. that's quite a run, doc. >> and like i said, you look at paypal, too, judge that stock was under $71, the 3rd of may here we are, seven days later, and it's the softest day it's seen in a while, down 50 cents or whatever, at $79. >> well, meg is with us now. so we saw the president in the room with the auto executives. that's a key piece of news for this morning, but really the focus in less than two hours is going to be about drug prices in the rose garden. >> we did get some hints from senior administration officials about what to expert so far, the response from investors across all sectors of
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health care is really a sigh of relief overall, no major surprises. first, there will be changes to medicare part d, the prescription drug benefit for seniors. the administration has discussed giving free generic drugs to low-income patients and requiring plans to share a minimum portion of drug rebates with patients. what this might result in, though, is plans shifting higher premiums and thus analysts said today that won't be a huge impact on pharmacy benefits managers or insurers at least in terms of their stocks. second, a focus on medicare part b, which covers drugs administered in the doctor's office or high school. one is a major eye drug. those changes for part b don't look as severe for drugs as some feared, driving the stock higher today. it was up more than 5% at one point. so that essentially looks pretty good the third part that the president keeps talking about is how the u.s. paid higher drug prices than the rest of the world. not a lot of details on ow they could change it.
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perhaps it takes trade negotiations to get there, but overall, at least from the pharmaceutical standpoint, not a lot of the major things people were afraid of, drug negotiation, reimportation, none of that mentioned here, but the president could always go off script >> you never know. let's break this out because there's a good amount of ownership on the desk. sarat, bristol, merck, cell gene >> take out alumna, bought that's a completely different company. but you had a couple things going on firstly, the pipelines have not been as robust as people expected secondly, this overhang from the white house. we're waiting to find out exactly what they're doing a lot of investors won't step in until you really find out what drug prices are going to happen. at these valuations, doc, you know, this is what i think we need to get into because these are the value plays. >> an awful lot of them. >> you're in some of them, bristol and merck. >> bristol, yesterday, took a shot in some azn, and agn as
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well there are some pockets of real value created whenever the president addresses them and people are waiting to see whether or not he really hits them with a stick or instead holds out a carrot after threatening them with a stick. >> you look at -- pardon me, jim, i'm sorry you look at some of the losses year to date >> that's where i was going. >> j & j down 9.5% year to date. fooiszer, 2.5% santa fe, bristol myers, allergon >> these have been value traps we mentioned three names all three of those, there is definitely value there, but they have been value traps. they have been catching, so the question is when do you pull the trigger on this? we're talking about president trump, and we also know the election season is going to pick up in the summer it's not a presidential election cycle, but there will be a lot of rhetoric about drug prices from various congressional candidates
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i say the middle of the summer is the time you pick up the three names. allergon, cell gene, and regeneron. they have great prices it's just early to do it today >> the other thing to consider, and there's been chatter in the last couple days doc, we talked about it yesterday is m&a rumor again. and innuendo about some of the bigger names, whether it is allergon, which was in the news a couple days ago, or others >> i did reporting to try to figure out if there was anything to the allergan chatter. i think some of the chatter may have been around pfizer coming back to the table. it doesn't sound like there's anything on the table there, but the deal just happened allergan is of a similar size. their stock is depressed bankers might be trying to shop it around. >> historically, you want to own the seller you don't want to own the buyer. what they do is cost cutting at this point you're trying to get big
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synergies. i wouldn't buy these stocks with that specific reason, not yet, for take out >> meg, thanks we'll see you later this afternoon, when we see the president. >> here's what else is coming up on "the halftime report. next up, the wall street note saying, quote, don't be a bonehead see which way this analyst that has everyone talking today thinks tesla's going next. >> before the break, our data partners at kensho on what happens after netflix jumps 30% in a month and sold two weeks later the numbers show the stock takes up another 2.6%. beating the rest of the nasdaq stocks for more, go to "the halftime report" with scott wapner and the tderars is back in two minutes
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and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. we're answering your questions today, later in the hour tweet us @halftimereport use the #askhalftime come up with questions for our traders. >> it's talk about tesla that stock has fallen more than 20% from its recent highs. and they say do not be a bonehead the company is poised for a big narrative shift, and shares could hit $500 in the next two
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years. the analyst behind the call joins us on the phone for our call of the day. romit, welcome who are you calling a bonehead >> well, we're referring to, you know, the community that makes up 30% of the float that's short the stock. >> are you looking for a massive short squeeze? >> in order for tesla stock to go higher,i think the short case needs to be invalidated the people who are long the stock, if you look at the top five holders plus elon, they account for about 50% of the shares outstanding i don't think they're selling. so in order for the stock to go higher, yeah, i mean, basically, we need the argument around cash flow, insolvency, production you know, those concerns to be alleviated >> your problem, though, is that if anything, romit, and i would
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be surprised if you didn't admit this, the short thesis has been emboldened recently, it hasn't shown any cracks >> you know, i disagree, scott i think the short thesis just keeps shifting you know, six months ago, the argument was they couldn't make the model 3. well, they improved model 3 production by a factor of four in the first quarter you know, after that, it was they faced major insolvency risk then the company came out and said we're going to be profitable in q3 and q4. we'll see if they get there. >> why do you trust -- why do you trust what they say? they haven't been able to prove themselves almost on anything they say >> yeah. i would say a couple things. i think from the results you're seeing real progress the other thing, scott, is you know, we're a global bank, and
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we happen to cover a lot of the suppliers that sell into the model 3. and what our research is saying globally is that from companies like bizlink is that in fact, tesla is making big strides in improving production and that they are on track to hit that 5,000-car-per-week target if they do, i do believe that they will be profitable. and that would poke a major hole in the short case. >> you don't think they need to raise cash >> i think they do need to raise cash, but i don't think they feed to raise cash today i think they can raise cash later this year or next year when they're in a position of strength, when they're generating positive free cash flow, when they've got production for the model 3 over 5,000 cars perweek >> you don't have a problem with how musk acted on the recent call i mean, if nothing else, it was a really bad look. >> look, he's a genius
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and like we have seen with other geniuses, like steve jobs, they can be eccentric i actually felt sympathetic for him because the company has been under -- you know, has gotten a tremendous amount of negative feedback from the press in particular about issues like passenger safety and insolvency risks that have been blown out of proportion. >> romit, i is have a quick question this is jon. the $7500 credit that now very few people qualify for, especially with the model 3, with the price moving up from what was first stated to be a $35,000 vehicle, now more like $50,000, $55,000 vehicle without those incentives being as high for most buyers, is that still something that they're going to be willing to throw $50,000 at >> you know, look. today and all year, if you're buying a model 3, you're paying
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over $50,000 >> yes >> and every month this year, the model 3 has been the best selling alternative energy vehicle in the united states >> brand-new, too, though. you know, it hasn't -- it's not been out there for very long so they're exhausting that list pretty fast, aren't they >> they are, but you know, as you go through the year, the price of the vehicle is going to come down. they're going to offer that same vehicle at a $35,000 or $40,000 price point. there's going to be more options available. if you want a white interior, you can't get it today you can get it in six months i'm really optimistic about the ramp of the model 3. you know, with or without the tax credit >> thank you >> and you don't have any worries whatsoever that musk leaves as ceo, as some of the shorts have put forth that they expect him to? >> that he -- he just signed a huge pay package
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so i don't think that's something that's imminent. >> all right, romit, i appreciate your time and candor talking about the big call you made today $500 price target within two years. romit shah >> josh brown. >> i would say as to the eccentricity issue, i think we need to draw a distinction there's a long and rich history of ceos who say they're not going to talk to analysts, not going to appear on conference calls, not going to play the quarterly game >> that's fine, then don't >> hang on those are people quarter after quarter who were hitting internal targets and constantly enriching shareholders year after year you think about companies like general cinema and berkshire hathaway and the washington post when catherine graham was running it that's a route you can go. however, you have to literally deliver on the things you say you're going to deliver in order to buy that much leeway. if you're going to miss every target you have ever put out there, and you are going to play
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the wall street game, then you can't at the same time be disdainful of people asking questions on behalf of those who have money at risk >> you can't call well respected analysts like toni sacconaghi a moron. >> you can, but crush it on the numbers. >> based on their performance and legitimate questions in the market - >> it's not good form. if you want to run it like it's a private partnership or you want to run it and just say i don't talk to the street i don't get involved with quarterly anything, you can do that, and people have done that very successfully, but you actually have to deliver on the financials in order to get that respect. and you haven't earned it. so you know, don't be shocked that there's negative feedback about passenger safety and this thing and that thing because if you treat these things disdainfully, then you're going to get more negative feedback >> this is essentially, look, don't pay attention to all of the noise and nonsense that's out there. focus on the big picture of what this guy musk says he's going to
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do and the stock can go to $500 in two years. >> that's the essence of the call >> that's great. that's a $100 billion market cap. so to say that this thing will be worth $500 in two years okay, maybe if he gets profitable, stops taking on more debt, and hits some of the targets that have been laid out quarter after quarter, but you know, i don't know that that should be somebody's baseline assumption based on what's going on >> he can't take on more debt. let me make it clear >> make it clear >> the dent he issued in august of last year is down to 88 cents on the dollar. it's rating triple-c let me finish. which means if he needs to raise capital, and if you're going to buy the stock here, you have to know that. >> everybody thinks they need to raise capital. >> which means he's going to have to sell stock because he can't sell debt. the stock will have more supply. why would you buy it in front of that you wouldn't >> with 35,000, you know, romit was saying as i was talking to
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him about the $50,000 number, prices are gaucoing to come dow. what happens to your profit margin if you take a vehicle from $50,000 to $35,000. how did he magically make $15,000 more you don't. >> it's going to become a manufacturing company. manufacturing autos is not easy. that's why gm and ford trade at six or seven times earnings. there's so many issues you have to deal with >> the virtue of ford and gm, year to date, their stocks have stunk. they're down 10% >> and they're doing fine. >> thank got this is a battery company. >> a tech company. >> let's move on we're just past 12:35 on the east coast here's where your markets stand right now. dow, s&p, nasdaq, they backed off their strong starts this morning. we told you that the s&p is still putting in its best week in a couple months we'll keep our eye on watts happening. in the meantime, let's get to
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sue herera with the headlines for us >> hello, everyone here's what's happening at this hour we begin in california, where los angeles county police have detained a person after responding to reports of a man with a gun at a high school in palmdale one person was shot in the arm and is at a local hospital in stable condition one firearm was recovered. palmdale is about 90 miles northeast of los angeles >> the kilauea volcano in hawaii is threatening to blow its top in coming days or weeks, after spewing lava that forced 2 houn people to evacuate the added threat could ground planes at one of the island's two major airports >> one palestinian was killed and 49 wounded by israeli fire in weekly protests on the gaza/israeli border. that brings the death toll to 41 of the number of protesters killed since the friday protests began in late march. more than 1700 have been wounded. >> starting today, amazon is
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increasing the annual cost of its prime membertion by $20. to $119 per year and starting next month, existing prime membership customers will begin renewing at that increased rate. you are up to date that's the news update this hour back to you. >> sue, thank you so much. have a good weekend. >> jon, following unusual options moves and it's in a pharma stock it's up 17% in a week. he'll give us his trade next >> first, the s&p sectors, telecom leading the way, a defensive day. flat, we'll call it. s&p not even down 1 point. halftime returns after this. ♪ feel that? that's the beat of global markets,
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to grow your business. the dell vostro 15 laptop. contact a dell advisor today. the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done. no one thought much of itm at all.l people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here.
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all right, we're back. jon najarian at the telestrator with unusual activity and in a pharma name. it is up on the week it's still down, though, doc, more than 50% this year. it's - >> right there, judge.
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that's why i mean, as the stock fell from $30 a share all the way down into the teens, that was an investigation. now there's somebody willing to bet that maybe by september, things get cleared up. it's not too much of a reach, really the stock is $14.07. they come scrambling in, buying the september 22.50 calls. september, 22.50s, about the equivalent of 400,000 share equivalent this thing goes back anywhere close to 30, this thing is an absolute home run. and you're taking a lot less risk than buying the stock so we like the trade i bought them. i probably sell an upside call against it again to hit the time decay factor, but i like the stock to recover from this level. >> it still looks for a big jump in a few months. >> yeah, well, you know, the fall was basically like i say, it was a $35 stock in february it was right about $30 when the investigations and so forth happened that drove it down like
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that now, with the stock at $14, like i say, i kind of like the odds of picking up some upside calls. i think there's plenty of ways you could position for the stock to make a recovery once they get the investigation in the rear-view mirror. >> you have market cap on that it's like 1.6 billion. that's small >> 1.8 basically, they cut it half. it was almost 4 billion when it was at $35 >> good stuff, doc, come bag over here. >> next up in the blitz, we get the trades on semantic, nvidia, yelp, and news corp. there they are we're back in two minutes. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall.
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and we begin with the blitz. first up, symantec is getting absolutely hammered today. doc, it's on pace for its worst day in nearly 17 years >> yep >> cut guidance. there's an internal investigation. >> audit committee announced an internal investigation steve weiss would say, it's been
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schmized traded 75 million shares i can't even talk. >> doc's voice going down faster than these shares. >> we'll move on nvidia is under pressure despite a beat on the top and bottom line the guidance as well all right, josh, you own it. >> i do. and look at this candle today. don't fall out of your chair if it closes at yesterday's closing price or somewhere in the vicinity the buyers came in really, i can't understand who would be selling it this is an incredible quarter. a triple play. beats on earnings, beats on revenue, raises guidance a little bit of material weakness in the crypto business. doesn't matter every other business is full speed ahead, and the story is very much intact >> yelp is down despite reporting a record beat. you have been buying it. >> we have been ccumulating this this is a stock that grew 22% organically. $10 of cash flow i think this is a good stock to
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own. >> worst day in two years for news corp. jimmy, give us the scoop >> this has been a good stock in a terrible industry. up about 20% over the last year, even after being down 7% today honestly, i don't think you should hold this stock this industry is going through m&a activity that, number one, we're not sure what will be approve and what won't be approved, and even if deals are approved, you're not sure when the winners. you should take the win in this name and move on >> oil prices are pulling back from multi-year highs. we'll get the trades from the futures pits and we'll do it next on "the halftime report." first, though, tyler mathisen has a look at what's coming up in less than 15 minutes on "power lunch." >> thank you, scott. coming up on "power lunch," the president set to make a speech on drug prices that will be at 2:00 eastern time we'll bring it to you live, have instant reaction and analysis. obviously, a very important topic that touches all of us one way or another plus, is facebook about to launch its own crippo currency we'll talk about that, and wall
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street meantalist sent us a market prediction earlier this week it's in this envelope. it's been sealed and held on the porch since then he'll join us to reveal it and perform a little magic of the mind we'll open it. we can society it has not been seen since monday. "the halftime report," including the mentalist after this
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welcome back to the halftime report i'm eric chemmy. and this is futures now. crude hovering around $71 today with a number of firms making bullish calls. pimco calling it to 80 after it was said on thursday that $100 crude is not out of the equation scott, can crude head higher >> i tell you what, option traders absolutely think so. it's up about 60 cents over the last 90 minutes. and over the past 36 hours we have seen big buying in the 90 strike and 100 strike in the december options so there are certainly some people who think there is quite a pith more upside. >> brian, what's the next key level to watch here in oil >> well, i think when you are looking at it, you know, it's been in a bullish move right here we are probably due for a pullback, below 70 below there i am a buyer supplies are somewhat tight. demand is strong out of india
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and china. when you look at the capacity and gasoline futures that appears like it could move higher with crude. the geopolitical tensions around it putting fuel into the fire heading into drivering season. 80 seems reasonable. >> for more futures now, head to futures coming up, final trades with the halftime team. this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit to see what adding futures can do for you.
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welcome back take a look at the names reporting earnings next week we will kick some of these around it is a big week for retail. we have got matt boss coming on on monday to talk about retail number one retail analyst at jp morgan let's kick these around. home depot. >> i'm looking to see how soft the first quarter was and what that has to do with the home building product stocks as well like fortune and massco. that's going to be a leading indicator to see how well these stocks are going to do. >> give me the board again, please drum roll. drum roll. there it is. macy's macy's has that big sell call the other day. kim birl greenberger, right. >> the problem with macy's jcpenney, nordstrom all of them this is a dud quarter. the first quarter of the year, everybody has a shopper's hangover after the holiday
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season the first quarter of the year is not good for any of these companies. you have got to get a turn around later in the year i am expecting nothing. >> walmart on thursday >> i bet somebody wants to know if they are making a big acquisition in india that's one of the strangest things that happened in this week. >> the flip cart acquisition at $15 billion. >> why did the guy come out and say this is about to happen? and then everyone said what are you talking about? like it seems like they wanted to say something but they didn't i don't know >> i will spare you on jcpenney. >> i'm not in the name i spared myself. >> you know what, you spared all of us. cisco, though, you are in cisco? >> opposite end of the spectrum. >> give me your rip on this? >> the stock yesterday had an 18 year high. if you look to juniper's earnings weeks ago they were get. cisco has been moving away from hardware to software, security, internet of thing.
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that's true but they still have a hardware business and juniper bodes well for cisco i'm looking for a good report. >> we asked you to send in questions for your traders let's look at the tweets what are your thoughts on >> i'll take it. this has been a treacherous stock this year. it looked like it was breaking in and out the 50s it's just been absolutely hammered ina lot of people are pointing to emerging markets softening up, which there is some truth to except then you look at alibaba and you realize this is probably something more company specific and less people pulling money out of chinese tech etfs i don't know how it shapes up but i want to stay with strength in this space and want to be diversified. i use k webb for exposure into chinese internet i don't pick individual names in the space. >> staples overblown? they are down a lot?
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>> deserved. >> deserved? >> yeah. their yield plays -- they had a great six, seven years in the post crisis period where rates were obsurdly low and people would buy anything that had a three handle on the yield but now you can get that with no risk. >> the other part is that staples have been really the effect of amazon amazon has taken the brand out of most of these staples and people don't want to pay the premiums they used to trade at 22 times margins. they are trading at 14 with declining margins and revenue. >> the essentials line and then at the low end, people start a brand on instagram it could have a million followers in a few months. >> koss co, walmart. >> there is a lot going against these companies. >> final trades, jimmy. >> a week ago steve weiss and i got into a match about caterpillar. since then it's up 7%. i think that's your final trade.
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>> throwing shade at weiss on live tv when he is not here. >> i will give you my 20 seconds. >> it is our thing don't phi it, scott. >> i'm loving it i can't wait for weiss to be back next week josh >> google. higher 100 points in the last few days i think it looks phenomenal. i'm long i'm sticking with it >> doc >> devin energy, dvn been in this one, pete's in a lot of energy names. like it a lot. up from the beginning of april 30 bukds now it's 41. i think it goes to 50. >> serat >> qualcomm. we got a bounce off 50 it's been going up all week. the buyback was instrumental it's management telling you we have confidence in our business. if the deal gets done the stock goes higher. >> it's also telling you they have many paths to share value creation xpi is one of them settling the apple dispute
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get be china resolution on xpi and other sales there. and the buyback helps. >> dow is going for seven in a row. >> let's do it >> i feel like the market has its thing back do you feel that way >> tune in monday, we'll see -- >> definitely. it broke through the resistance on the s&p 500 at 2710 going higher. >> great week weekend. "power lunch" starts now. >> a busy friday at the white house. president trump holding a major summit with auto ceos in an hour he unveils his plan to tackle the soaring costs of prescription drugs he is accusing the industry of getting away with murder. staples are one of the worst performing groups this month and the worse so far in 2018 what's going on with that? he mailed us this envelope on tuesday it has a bold prediction about the stock


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