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

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thursday, and the possibility of tightening for qe, which everyone is watching here. >> and at&t/time warner, those two crazy kids going to be allowed to get hitch >> we'll find out tomorrow if inflation is running hot with cpi, so buckle up. in the meantime, let's get to the judge and the half all right, welcome to "the halftime report. i'm scott wapner our top trade this hour, the huge week for stocks with tonight's summit, central bank meetings ahead, economic economic data all coming in the next several days. what really is at ake for your money this week? with us to debate that, joe terranova, jim lethenthol, josh brown, jon and pete najarian, and with us from toronto is kevin o'leary, chairman of o' shares etf and a cnbc contributor. stocks modestly higher ahead of so many critical events. the dow is coming off its best week in three months pete, you tell me how you're sizing all this up
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>> i'm pretty deep into the market so i'm sizing it up thinking regardless what we're going to hear and how things are going to transpire over the next couple days, we already got through the g-7, and as we get through the different rate issues as well, there are so many different areas coming at the market, but all we see is positive paper flow. so it means i'm very much into the markets. i went from a position that was 40% cash last week, early part of last week, all the way down towards 12%. >> you're getting -- >> absolutely. >> even more >> yeah. >> exposure with all of this ahead. >> and with the lower volatility, it gives you a great opportunity, if you feel there's anything about this that you're uncomfortable with, you have to hedge right now. >> josh, give me the lowdown on what you're watching most importantly this week with as we said all of these different issues fed likely to raise rates. ecb, boj, who knows what's going to happen with trade, the summit tonight, et cetera >> look, i think a continued theme, something i have been talking about, and this week even more evidence, the economy,
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the u.s. domestic economy is on fire and you're getting that information in the xly, consumer stocks, another new high right now. just looking outstanding these stocks do not seem to be phased by g-7 headlines or any of the geopolitical stuff. people are going about their business and spending money. and look, take a look at retail as a subsector of just consumer in general xrt is 1% away from the july 2015 highs off the bottom from august '17 lows, 32% rally from there, and these stocks, i think, are telling the truth, and i think things that we hear uttered from g-7 or whatever are not telling the truth. and that's really the most important thing right now. >> joe >> i think that's, for me, where the opportunity is you're trying to find things in your portfolio where you think you're going to gain momentum. josh points out retail i said last week, i have done a poor job in trying to get a
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strong allocation to retail. what i have been doing in the last couple days is zeroing in on a retail. monster beverage pete and jon pointed out unusual activity i talked about purchls purchasing that on the show. i'm adding to that position, and chipotle, that's a name we have been talking about on the show, making the fundamental turn. i bought that on friday from a quantitative perspective you saw massive blocks being done on friday in chipotle to the tune of nearly $100 million. market has moved even higher in the stock. i want the exposure, like josh said, to the consumer, more retail oriented. >> kevin o'leary, how do you size things up the trades you liked, the russell 2,000 small caps are doing well and we're hitting records in some of the larger areas of tech and the nasdaq and trying to get back there for the dow and s&p too. >> i have stayed the course on redeploying capital, primarily into small cap you know, josh said the u.s. economy is on fire double fire to small cap
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small cap is just beginning to start to show from the cash flow increase basis pretty well right across the board because it's not just the tax reform. deregulation is really started to manifest itself in better outcomes for these companies pretty well every state. so i think in deploying new capital, i have also reduced my cash down in the last week i'm amazed at all the stuff going on around the world, and and money just flows into the market i'm doing the same thing this is the best place to deploy cash we had a head fake on interest rates. the competition between fixed income and equity still isn't there. the only place to deploy capital right now is back in equity. >> is that going to change this is a critical week for central banks. we think the fed is going to raise rates. i would be shocked midweek if that doesn't happen at this point, and we have to wait and see what happens with the other central banks as well.
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>> i got off a phone with a fixed income guy and i said what can you give me on a bbb ixsix months it's 2.2 to 2.4. why would you put your money into that? of course, you're going to stay long the equities because you can almost get that on the yield on a small cap you could make 2.3%. why would you go to up the balance sheet? it's not there yet >> the reason why you would do that is because you don't have to be all in on one asset class or the other, and a bad year for a bond is down 2% or 3%. that could be a bad hour for a stock. you have different volatility profiles i think the right advice is not one or the other maybe with fresh cash, but just overall, and i think you would agree with this, dividend stocks are not going to act like bonds when push comes to shove in a bear market, and you probably want to have a mix of both in the way of an asset allocation, right? >> it's a valid point, but my
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bogey is 5% a year if i p myself into a 2.5% fixed income product, i'm 0 basis points behind the ball i'm not enticed yet. i'm not excited about deploying capital yet into credit. it's not interesting i thought if we had gone through the 3%, maybe to 3.5% on the ten-year, now i'm starting to say to myself, your argument makes a lot of sense this is why inmarket is hanging in there incremental dollars coming in from managers that have a 5% bogey or on some cases on the pension side, 6%, they're not loving 2% returns. >> yeah, doc, people are hanging in there, to use kevin's words, because the fundamentals have been good. are we supposed to ignore the noise, and i don't know if you consider the summit a lot of noise or the rhetoric that came out of the g-7 was a lot of nys, and the market didn't react very much to any of it. you're going to get inflation data this week along with the certainly drive the way people think about where rates are going and then as a result, what
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stocks may do. >> true.and scott, echoing whath said, the g-7 was just a nothing. i don't mean to throw too much shade on those guys. but that was a nothing because look at the market reaction >> those guys. who, merkel? >> and merkel. guys and gal there was nothing going on there that was interesting to the markets. that's why the markets are doing what they're doing right now as far as our conversation on the desk in the u.s. and how much people are feeling better right noout the economy and so forth, you look at even michael's stores which i talked about a couple weeks ago it's up i think 10% pin the last two weeks, maybe less than that. you look at gap stores, remember when we were making, including me, making fun of it on the big drop after the earnings. take a look at it now. filled that gap. came all the way back up screaming higher we had everything saying, well, you know, banana republic got to ditch it got to split this thing up
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look at how that thing came back obviously, the american consumer is spend and m talking about the domestic story inational, obviously, the tech companies are hitting it hard >> would you buy that stock right here after what it's done? >> no. >> no. >> not gps, no, not gap store. >> the market has been right let's say, an undeniable up trend from the buffett apple buy day. we have retaken 25,000 on the dow. we have continued to set these new records on the russell is there anything this week that's going to upset the apple cart, jim, on this uptrend that seems to want to go higher yet >> i've got to look at all these events and answer your question no let's start with the fed they're going to raise rates it would be a huge surprise, as you pointed out, if they didn't. everybody will look and say what comes next one or two rate hikes the rest of the year. as long as it's one of those two numbers, we're fine. if it's anything else, we have something to worry aboutbut
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that's not going to happen the ecb, they realize italy just happens three weeks ago. they're going to do nothing to upset the apple cart as far as the summit, look, anything that comes out, even the worst case of the status quo being the same between us and north korea, that's not going to affect the economy not going to affect profits. there's nothing happening this week that's going to affect the economy or profits >> i feel we almost have a pocket where you could continue to have these climbs in the market until earnings. not that far away. >> you know, i was the last one to speak, but i noticed nobody here is saying hey, let's raise cash we're pretty ubiquitous. >> i have pete and kevin o'leary taking some of the cash that they had and - >> raise cash based on what, on a feeling? >> didn't you hear what i said nobody is raising cash, including me what i will say is this, though. just because you're fully invested doesn't mean there aren't opportunities to sell higher priced stocks and buy lower priced stocks. there's plenty of value names. you can look across the fascial space, a some of the retail
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sector, like starbucks, i picked that up last week. also in the biotech and pharma space, picked up allergan. there are plenty of opportunities. i trimmed a little pfizer tohol. >> i'm with you. >> just trimmed it also today, i trimmed a little bit of apple i'm not selling the stock. it's still a huge 5% position in my portfolio, but for the clients who are 8% and 9%, that's too much. >> nothing about the consumer's behavior is going to change because of the events in singapore oor the central banks. that's the folkish right now whether you're looking at trip adviser, marriott, they're eating out, fixing up their homes. you talked about home depot and lowe's being in a recovery phase. the consumer behavior is what you want to focus on this week doesn't adjust that behavior >> kevin, you are making some significant portfolio moves. i'm curious as to what they are and why you're doing it now. >> during the g-7 insult fest,
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and i agree it was a nothing burger as far as the markets were concerned, something occurred in it canadian market they had an election in the province of ontario. canada has been an unmitigated disaster for investors for the last two years for a whole host of reasons including trump's tax legislation wiped out their competitiveness and capital has been leaving the country by the billions shell took $17 billion out last week, kinder morgan threw up their hands and said the country is not investable and the government nationalized the pipeline they said we can't build anything it's all in litigation you can't get anything done in canada i consider that the bottom of the market here's why that election, and i came up to be here for that election as an investor, the liberal party of the province of ontario was decimated. it's been in power for decades it was wiped out it doesn't even have a political base anymore it lost so many seats, it's not
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even relevant. this is a great tale for the markets. so i have said wait a se this could be the turning event because there's another election coming in alberta, which is the bread basket of energy for canada, 40% of the economy, and it's going conservative too. those are pro-business, pro-competition, pro to the right, pro international in every way. and then there's a third element, the federal election for the prime minister happens and it starts in 14 months i think there's a 50/50 chance he loses his mandate too i went long canada i bought 60 names in canadian dollars using a canadian etf called xiu, which owns everything, and i bought canadian dollars to do it. i'm betting on a move inhe canadian dollar to the upside, and i'm betting all of these left-wing governments, including the one at the federal level, are all getting wiped out. >> i don't know. trudeau's mojo -- you could make the case that trudeau's mojo may have been strengthened by what happened over the last several
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days and the response of not only president trump but trudeau's itself >> i'm betting the other way i'm betting that what you're seeing when the entire province of ontario goes to the other side and wipes out the liberal party in ontario and then they're going to be wiping out the socialist party in alberta, i'm loving the new direction of canada i'm going to bet, putting a third, a third, a third. mosttfolio managers that are running international mandates or sovereigns give 3% to canada i had zero until this week now i'm at 1%. if albertas to the right and kennedy is the name of the guy running the show there for that election, then i put another peent. if trudeau gets wipeout, which dwling there's a 50/50 chance,m% it's all going to happen in e next three months. >> maybe o'leary will be involved in that who knows? we don't know yet, right you'll make the announcement here, i'm sure, right? >> i'm -- listen, i'm waving the
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canadian flag. going long the dollar and 60 large cap canadian companies i think the place has been washed out i think it's over. i think the downside is over >> maybe it's a good opportunity to use what kevin is saying and doing to talk u.s. versus whether it's canada or europe, asia, emerging markets >> i'm not saying he's going to be wrong or that won't work, but i don't know of anyone that makes investment buys and sells based on elections like for a living in real life. i don't know that that's a strategy that there's ever been any empirical evidence, like, if you were investing based on what you thought a politician would be able to accomplish, just in general throughout life, you would probably get half right and half wrong just like any other decision that you're making on macrofactors that seems tough for me. i understand the rationale, it makes a lot of sense, it's just that real life has a way of getting in the way >> you're not giving credit to president trump, the policies of the administration >> no, actually, i think the tax cuts have been tremendously beneficial to the stock market
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>> i think the difference here - >> so i'm telling you the same thing is happening in canada sa? how do you know? >> remember that mayor you remember that guy in toronto that went -- his brother just became the premier of ontario. he's as right wing as they come. you gotta love that. >> george w. bush cut taxes by even more than trump did, and we ended up with almost a depression three years later there's no signal. it's great if it happens maybe for a short period of time, doesn't mean it's going to be a great investment. one plus one doesn't always equal two because there are other variables at play beyond just that one factor i'm not saying you'll be wrong you might make money on this trade. i'm just saying it's not like a reliable thing you can say, oh, canada is going to move to the righ buy canadian stocks. it doesn't work that way >> wait a second they're cutting taxes next week. cash flows are going up. this is a 40% of the canadian economy. dent be a chicken little on this one. i'm bullish. >> i hope itorks
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i'm not shorting i'm just saying i don't know if this is an enduring strategy that can be relied upon. that's all i'm saying. >> i think you guys might be differing on the idea between a short-term trade, which a catalyst like -- >> that's true too >>sus long-term investments. a long-term investment is going to choose stocks t weather any election outcome >> if i told you the dems are gog to take of the twohouses of midterms and i told you there was a good likelihood of that happening, whether that's true or not, but if i thought, that was my opinion that or anyone's opinion it was going to happen, you wouldn't or couldn't make any sort of trades or investment sions based on that theory >> ta great ques >> he' a theory. >> here's another theory the markets are smart. you're talking about $100 trillion worth of people that are thinking and talking about all of these issues all day, plus computers, plus software. the market handicaps these things to too much or too little extent prior to them happening
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there's noys a trade based on an outcome. we have a buy the rumor, sell the news >> if you wanted to buy mcdonald's today because you thought something was going to happen where mcdonald's could take market share from somebody, you would make any investment decision on buying a stock based on what you thought was going to happen by virtue of what the fundamentals - >> what does the market already expect or what are you ahead of the market on? and that's not always clier. >> he's trying to get ahead of the market on what he thinks will happen. >> impossible to know whether or not the market agrees with what he thinks. impossible that's all i'm saying. very hard. >> kevin i give you the last word on that >> i look at it and say to my, cash flows on the largest cap companies in the country of canada are going to go up because government is going to cut taxes it's the same premise upon which i went long small cap stocks six months ago that proved to be right. because the policy drove
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through. in november, if you took your chances on the russell, you have been well rewarded same thing is happening in canada in the end, it's all about cash flow if the government cuts taxes, cash flows go up if they reduce regulation, which is going to happen in canada with the new sheriff in town in alber alberta, cash flows go up. if the government gets wiped out, cash flows go up. that's my premise. >> you're right. you're right, so i guess where we're differing, that is absolutely in the short-term the ere's no denying that. however, in the intermediate term, it's not as though tax cuts come for free we're exploding the deficit for this one at the end of a nine-year cycle or toward the end of a nine-year cycle so that's what we're doing in the u.s. we'll see if it works. maybe we can outrun the clock. >> wait a second in the u.s., if we get 3.5% gdp growth, you're going to pay for those tax cuts within three years. >> that's not true even the most aggressive dynamic
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scoring, throw out the cbo, even the most aggressive dynamic scoring does not have us wiping out the deficit with 3.5% gdp growth, and by the way, that's if it arrives. >> that's the 10% difference in corporate tax. you took it down from 31% to 21%. that will be paid for. >> my grandchildren hope you're right about that >> look, we have to switch seats. i'm going to put you in toronto. i'm coming down there. that's what's going to happen. this is nuts you have to be pro business, pro cash flow. i think canada is turning the corner it was negative here for two years. now things are changing. they're changing >> hope you're right >> joe >> i would like to follow fun flows. i think this presents an opportunity because money is in the wake of italy coming out of europe and it's looking for somewhere else to go and the business environment that kevin is identifying, whether he's right or wrong, forgetting the debate for a second, it presents an opportunity, a source of funds can go there, somewhere beyond the u.s. that's a favorable thing i think you will see funds go
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there because they're leaving europe and they need a place to go >> you know, i understand kevin's point, but you criticize me in a joking way, obviously, about my minnesota connection. but kevin's going to canada. i don't know why the u.s. -- why did we suddenly become less attractive i think we'll continually be more and more attractive >> don't think he's saying that. >> he's saying the opportunity is better in canada. >> no -- >> he went from 0% to 1% >> if you buy, you take usd like i did and buy canadian dollars at 77 cents, that's the first trigger. you have to make the assumption the economy is going to be more buoyant. lever number two, the top 60 companies here are going to have better cash flows starting next week when the new government takes over so i'm not saying the u.s. is better or worse than canada. i'm just saying i haven't invested in canada in years. >> i would rather skip canada and just stay here in the u.s. because of the cash flows and the business opportunities here in the u.s., still in my
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opinion, dominating what's going on in canada >> canada is like 2% -- you're underweight. you should buy more. >> yeah, look. if you run amandate, you have to allocate through gdp >> have you takenesh poseur off in other areas of the world? >> what's happened is i have taken some exposure off in asia. i think that was a mistake i was a little more nervous about the singapore thing than i should have been i think i'm going to have to put it back on i think the outcome of this thing is going to be good. it's going to start a dialogue i was too nervous, and that was where i found more capital to go into small cap domestic u.s. i took it out of asia and i think i went out too early you can't get it right all the time clearly, what's going on in singapore is some kind of a woodstock event, a rock show down there and there's a lot of positive feeling coming into that market. i think it's going to be
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reflected in fd flows, particularly in things like e commerce, consumer i think, you know, that economy is growing at 6%, and here i was pulling dollars out of it, putting it inan economy growing at 3%, our own that's a bit of a >> you should buy north korea. >> there's no way to buy north korea. >> oh, all right >> you do that >> launch a fund you could be the first >> yeah, the etf thing could be nuke >> oh, my god. that's inappropriate >> josh and i are going to go visit north korea. i bet you the food there is fantastic. >> i'll pay for the plane tickets. >> i might be the food there >> i'll carry your bags. >> all right, kev. thanks for joining us. we'll see you back in the house, i hope, soon kevin o'leary joining us from north of the border today. >> let's go to eric chemi with a market flash >> that's right. so fitbit is up 8% right now that's based off a brand-new
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research report saying they have their short term target at $15 the stock is less than $7. that's 130% upside it has a lot more room to run. citron is saying fitbit could be a big long that's why the stock is up back to you. >> thank you very much eric chemi there >> wasn't it last week, didn't citron have another positive call >> they did. it's like they're flipping their model around >> on snap >> yeah. went positive on snap. >> what did they say, buy or sell >> buy >> he's throwing in the towel on shorts, perhaps. it's too difficult i'm just being facetious, obviously. >> he does good analysis in this case, both in fit and snap, he's probably picked a pretty good area to get that squeeze even ramped up more. and fit has this new fit for kids, i guess, for kids as young as 8 and all the way up. and that's a very popular thing, apparently, for kids >> what is he saying fitt going to do, $10
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>> $15 >> a double? you know what, it's possible you have a huge short position and no one likes it. if anything goes right, this is a stock that absolutely could do that i just don't know that this is the kind of stock that everye wants to participate in. >> it doesn't take much to get a $6 stock to get a little pop in something like a citron note >> and the float is tiny >> tiny flow with a large short. >> by the way, it's been ramping for weeks. so he's seeing momentum come back into a name that's been left for dead. >> highest since december. so like you say -- >> long term, still palm pilot >> it's been on this uptake for a while. >> yeah. long term, it's still palm pilot. so i would -- i guess if you want to take this call, maybe i would trail it with a very tight stop like a ten-day m.a not for me >> we'll step away for a quick break. here's what else is coming up on "the halftime report." >> next up, the energy stock one
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analyst says buy now if you want to make a fast 10% on your money. the call of the day is two minutes away pete and jon najarian are seeing in the options market and how it will move these two big names. "the halftime report" with scott wapner and the traders is back in two minesut
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all right, it's all about the free cash flow that's what bmo is saying about conocophillips today as the firm initiates them with an outperform rating. a $78 price target it's our call of the day pete, i go to you first. >> they're basing a lot of this call, as you said, on free cash flow that's one of the things i think i have leaned on when i went o exxonmobil and the fact i think there's still catch-up here. conocophillips has a great run with the price of oil. chevron has had a decent run exxon has lagged some people say maybe exxon was overpriced i think there's a lot more catch-up, so i think there are names. for instance, $6.4 billion is what their free cash flow is going to be this year, 2018. you know what exxonmobil's is. market caps are different, but on a percentage basis versus market cap, $31 billion,
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chevron, $21 billion i think right now based on the performance already, i think exxon has far more upside. >> you used to own this, right >> i did had a great run. got out because i think exxon is a better place to be >> around the time of the bmo, joe, is looking for increased buybacks and a higher dividend a couple of catalysts to drive the stock higher >> to the conoco story, there's more in july of '14, this was an $87 stock. $31.70 today this is also about the production volume growth that you're seeing in conoco relative to chevron, relative to exxonmobil over the next three to five years, you extrapolate forward the production growth volume for conoco fphillips is around 6.5%. exxon mobile has plenty of upside potential but the street continues to reward conoco phillips, additionally, there right now is this concern about the permian basin and the
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bottleneck surrounding it so you're looking for diversification. conoco phillips provides that to you, and a significant presence on the gas side with lng in lask that's why the street likes the name so miuch. >> chart looks phenomenal. 72 is very minor resistance. doesn't look like it will have trouble getting above. not overbought yet at all. if you look over the last year, this is a stock that has really separated itself it's up 60% versus the xlp, which is its peers, up 30% the street is rewarding quality in this space, in the energy space, and conoco phillips has come to symbolize quality. >> all of the good analysis you gave us, those things can reverse quickly. the permian basin ottleneck a year from now will probably be solved by infrastructure spending i like this call what i'm really pointing out is the five names that were up there, you can buy them for
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different reasons. the one i particularly like is royal dutch shell because of the dividend with the dividend of about 5.2% on royal dutch, i don't have to worry about what happens to oil over the next month. i know i'm getting the dividend back i know there's economic growth over the next few years that will propel oil higher all of these names will go up. but i think dutch shell will do it better. >> if i told you you're going to get economic growth, a higher dividend, that's what the analyst is banking on, and you get more >> so i'm purposely picking royal dutch shell because lower volatility conocophillips will be higher volatility for the reasons you listed, and that volatility, scott, should be to the upside, but i'm willing to get volatility elsewhere in my portfolio and have royal dutch shell be a steady eddy with a growing dividend player in my portfolio. >> after lagging for such a long time, look at the next month, exxonmobil, in the last month, up 7%. conoco phillips, basically flat,
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chevron, basically flat. that gap is beginning to close and you'll see exxon outperform. >> up 2% >> 7%. 2% last >> pete, that's a great buoyant to what i was saying exxonmobil has been a laggard here >> definitely. >> if you're a deep value player, that's exactly what you appeal to in that list of five names. conoco phillips. definitely a higher growth, higher beta name you want something s'more at a cheap price, you get exxonmobil. you want something steady eddy, royal dutch shell. >> apache, apa, that's the one i have been trading for, when we got out of conoco, i went over to apache. i think it's outperforming and will continue. >> the one variable that could make conoco continue to move higher is natural gas prizing continuing to move higher. natural gas prices back to unchanged on the year. >> the najarian brothers are seeing unusual options moves today in apple we'll find out what the story is when we come back after this quick break.
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hello, everyone. welcome back i'm sue herera here's what's happening at this hour north korea's kim jong-un taking in singapore's sights today. ahead of the historic summit with president trump meantime, secretary of state mike pompeo says president trump is ready for that meeting. >> president trump is going into this meeting with confidence, a positive attitude, and eagerness for real progress. he has made it clear if kim jong-un denuclearizes there's a brighter future for north korea. >> back in the u.s., an investigation is under way into a fiery car crash in california. a woman died after the car she was riding in cashed and caught fire as she was trying to outrun police authorities believe that she was
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in a stolen vehicle that was involved in a kidnapping >> utility giant pe is warning investors that the california wildfires caused significant liability for the company. state officials blame pg & e's equipment for eight of the october fires, several of which were deadly. >> and ihop finally revealing its new name the restaurant chain replacing the "p" with a "b" so it will be ihob, now known as the international house of burgers, but this is a temporary change and it's a move to promote the company's new summer burger line all right, you're up to date that's the newupdate this hour back to you. >> sue, we have a correspondent on the front lines of that story. >> well, what do you think of the name you know, international house of burgers? >> isn't it international house of brown >> it could be >> i thought they were going to
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do breakfast or blockchain >> blockchain would have been perfect. >> i get it because day parts are everything with fast casual. you can't just sell -- first, nobody is eating pancakes. it's all carbs people aren't into that. they had to do something different. i'm just surprisedhink they're going to wade into the burger wars just like with a tweet. >> well, it's only for the summer because apparently, no pun intended, they have beefed up the menu with burgers for the summer they have an angus burger, something like that. maybe they should send to the show >> i'm not going to say that it can't work or that i know everything about the burger business but i walk it like i talk it i'm going to tell you that nobody is going to be like, let's go to that pancake place that changed their name yesterday for a burger like, i don't know burgers are breakfast might have been a nice way to do it slowly. kind of lake a pivot
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this seems rash. >> cheese burger pancakes. >> ew. you got it >> thank you >> ihob. it sounds terrible i have had enough. >> all right we talk, of course, about the north korea summit to help cover the breaking news from singapore, please watch a special edition of "squawk box." it starts an hour early tomorrow well, two hours early. 4:00 a.m. eastern time >> geez. >> tomorrow morning. now for a check on the dow 30. there it is. united health is leading the way today. there's depot. dow up 58. halftime is back in two minutes. the governor has declared a winter weather emergency... extreme risk of burst pipes and water damage... soon, insurance companies won't pay for damages.
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our data partners at kensho are prepping for november midterms already since 1990, in a midterm year between june and november, the s&p is down on average .56%. while the russell really tanks, down more than 7%. for more, go to cnbc.com/kensho.
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welcome back shanes of hanes celestial are down double digits, but options traders are looking for gains ahead. yon and pete are at the telestrator with that and more in today's unusual activity. >> exactly, judge. as you said, down from about 42 to 28. making the move higher from 28 today by about 30 cents. what were they doing scrambling in, buying august calls. fairly large purchase, about 6,000 or 7,000 have traded at this point early on, 2,000, then 4,000, 5,000. the august 29 calls. just above where the stock is right now. we came in with those. i bought those i haven't sold anything against it and i'll probably stay with this trade about a month, four weeks, judge. >> pete, what do you have for us >> a name that we talk about all the time on the desk, but rarely do we talk about when we're looking at unusual activity, that's apple
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it is one of the most dominant players out there in terms of option volume, but we're starting to see unusual activity this chart has been phenomenal everybody has been following apple all year, of course, but now they're looking for a breakout last week, we started to get negative news potential that maybe they're a little behind. certainly, the options markets are not pricing that in because last week we had june upside calls, the 200 calls were bought this week, the july 215s, 10,000 of those were bought we're seeing aggressive moves towards the upside on maybe a breakout up and through 200. katie huberty, h price target is above $200. we'll see. maybe she'll be right sooner than she thinks. this is interesting to see i'm in june, july, and i own the stock. >> just in time for jimmy's sale of some of his apple >> right, well - >> let's call it what it is, a trim i have clients who have been in this stock for five years. they're up 225%. the s&p is up 75%.
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5% position has grown to 9%, 8% in some cases. i'm just bringing them back down to 5%. >> are you making a call on the overall market >> absolutely not. this is prudent portfolio management this is what portfolio managers do >> not in this ne, do they >> okay, have fun. by the way, the catalyst is the news on friday this thing has been on a tear. every quarter, we see the asian suppliers come out that represents a buying opportunity a few weeks later. this is prudent risk management. not a call on apple. i still have a 5% position and i'm fully invested in the market i put it in other names. >> i'm just messing with you 203.45 - >> really? >> 203.45 it has to get over for a trillion dollar market cap apple appears to be on the march there. >> we'll have a lot of shares when it does >> we'll be back in touch with you when it goes over the level. >> we're talking boston, scientific, seagate, chesapeake,
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electronic art we're back in two minutes. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you
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through your options trades step by step i could be up for that.e that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
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let's do the blitz first up is boston scientific. pacing for its best day in five months on reports of a possible
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takeover from striker. >> yeah, it got halted earlier today, judge as those rumors hit, and the stock did just spike we had unusual activity in it three times in the last month. the stock has already traded, i think, 25million shares versus normal activity of around 7 million. so this is a lot of people that are believing something is going to happen, and boston scientific might be absorbed. >> all right, seagate is up 4% today. josh brown >> upgrade from susquehanna. they're talking about this quarter and next quarter tracking above expectations for shipments. one in particular, one of the things seagate is doing, near line, which is a compromise between cloud computing and cold stored data. they have a box that sits right in between and this is apparently a hot area for technology spending right now. >> chesapeake, 3%, joey. >> this is about natural gas stocks jon mentioned apache before. that's a great name. chesapeake approaching $5. once again, rather, a name i
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looked at and a name everyone should give consideration to natural gas prices back to unchanged on the year. storage levels, 22% below the five-year average. 31% below year on year street is underinvested. take a a look at natural gas electronic arts hits an all-time high today >> jimmy, you own it >> the stock is fabulous the gaming space is a great place to be. we are talking about microsoft, ea -- it will give new access to about 100 different plains that's another reason that's going higher if you look at this chart, it is unstoppable. >> how about southwest airlines is higher today. barron over the weekend, you used to own it, what did you think about it >> i did all airlines have facing energy cost we talk about it all the time. as oil is rising and we look at the performance of a lot of these names have really lagged
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i rather be some where else. i love this name but, having seen that so for right now, i am out and i am not with any of the airlines for this >> we have somebody on twitter sending you a question esonanns ai answering some of y qutis d we'll do it next you can always reach u us @halttimereport on twitter.
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welcome back to "halftime report." i am phil lebeau flight 971 from rome to chicago have been diverted they have a security scare sources say there were notes found in the laboratory on the plane. so that flight has been diverted united said they will work to recheck passengers a security scare that people are keeping eye on involving united airlines >> thanks phil at'll keep in touch you with on th story as we get more details. we'll do "final trade" straight ahead on "halftime report.
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we always like to hear from our viewers. pete, we have a tweet for you today. justin mallory asked, how much higher can target go >> people were just disappointed of what analysts said they were supposed to be hitting on some of the metrics the numbers were phenomenal. looking out into the future. if you get towards 90. look at the p right now talking about the 14 for target. you get up towards 90.
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it may be time leitting them loose. at least trim. >> is that your target for target >> my target for target is 9-0 >> scientific of boston have been highly halted >> what does that mean boston scientific and stryker both halted. what is thermo fisher doing in that environment because they need to respond. >> you can see boston scientific is up. we'll follow-up on that and let's see what meg tirrell had to say >> we talk about commodities today. we don't talk much about copper. it has been strong take a look at freeport-mcmoran.
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i think there is plenty of upsides right now. >> bgcp, about a 10,000 lot just went off in there. i followed it during the show so i am in that right now >> bgcp. >> when i looked at you you were not paying attention, you were making a trade >> exactly >> i was watching him do it. >> excuse me, i have to make some trade >> he didn't say anything. he was typing away >> um, service now, this is a name that i mentioned before i am in the stock. pull back very nicely in may to the 50 h f day bounce off of that it did not bounce back its got a nice pattern of highs
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and lows >> roku is on a tear here. i like it. >> it is up 6% >> twilio which is my rocket fuel they continue to stay long keep on getting short. >> thanks guys >> you are my rocket fuel, scott. >> this is my rocket fuel. >> we are bringing the rocket fuel welcome everybody, i am tyler mathisen, here is what's on the menu today mystery in t history is in the making as the president is getting ready to meet with the leader at north korea. what is at stakes? the stakes are truly high. we'll comb through the trade numbers between u.s. and canada and china to see which country is really paying what to whom? and flips and flops. our real estate mogul, how he'

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