tv Fast Money Halftime Report CNBC June 26, 2018 12:00pm-1:00pm EDT
one thing was interesting is survey respondents say a lot of them don't know if their companies are doing anything about sdiversity companies who are taking steps would benefit by being vocal about it >> thanks, julia banks getting a bit, that's helping the tape let's get to melissa lee and the half >> welcome to "the halftime report." i'm melissa lee in for scott wapner our top trade this hour is the coast clear with stocks slightly higher after yesterday's big selloff. when should you get back in? do you pick up the stocks sore sectors that got slammed the most here to debate that, jim, joe, jon, and also with us here on set, lindsey bell, investment strategist at cfra research. first, we have to get to the move in oil. we have seen oil spiking on a report the u.s. is pressing
allies to ratchet down the purchases of iranian oil to zero take a look at the spike we're up by 2.5% joe, what do you make ofhis? >> we said yesterday, i think the iranians will be the losers. there seems to be a cartel that has been formed with the russians, with the united states, with the chinese, and with opec itself, and the pressure is being put on the iranians now, this is coming at a time where we're also dealing with domestically here in the united states less crude oil wti crude oil. that's because inventories are at a five-week low, but additionally and more importantly, the oil sands canadian facility is down until the end of july. that's 350,000 barrels per day of heavy oil that's converted into sunthetic light oil that's clearly creating a demand for physical oil, and you're seeing a very significant widening in the spread between the first month and the second
months in oil and also a significant narrowing between wti getting much richer in price and crude oil not rallying as much >> this is bad for refiners. it's good for -- >> it's bad for refiners i think for those watching the show, if you're invested in energy, i still believe that's an opportunistic place to be you probably will not see energy ecwiquities move up as much, but they're the place to be, and i'm curious to see two things. number one, how president trump deals with this. does he do an spr release, does he use rhetoric to try to talk the price down, and does this become problematic for the consumer and the u.s. stock market >> we got a note out yesterday, rob, that basically said investors were underweight the oil sector are you finding that amongst your clients and in general when it comes to individual investors? >> that's the case we talked about it all year on the show the fact is tech has been a leader smin of the value sectors have been underweight in most
client portfolios. so we have encouraged clients to migrate from growth to value energy and financials make up 40% of the value index exposure. i think what we have seen in the last few days is happening and this price move is going to continue that acceleration i actually view it as a very healthy thing from a market perspective to see that broadening out >> where in oil do you go here, and which stocks do you think will be most supported by a move higher in brant and wti? >> we talked about this a lot on the show and joe has given excellent analysis you didn't mention this earlier, but there's a pipeline in getting oil of the permian basin. the problem is a lot of these short-term issues popping up, the price of oil can be overturned relatively quickly. for me in the energy sector, i'm playing it relatively safe viewers know my favorite pick is royal dutch shell. an easy way to play the price of oil.
5.1% dividend yield, close to book value, and whether it's the super major integrated oils or some of the higher quality servicers like a slumber jay, there are a lot of names out there that can give you the exposure to the oil sector without a great amount of risk >> jon >> i think the fracking stocks are where you want to be here, mel. because obviously, i think it can bring it on faster so you and i spoke yesterday, and several weeks ago, even leading into the opec conference that there's the buy rumor sell news adage that works on wall street fairly well and the converse of that we sold off pretty hard because the rhetoric was that they were going to talk the opec ministers into increasing production and then pushing down prices that didn't really happen to the extent that people thought it would. we saw $3 pop in crude immediately after the opec meeting was announced as far as the results of that meeting. and now i think, mel, with
what's goi on in iran right now or towards iran, this just further plays into that good for the frackers >> where do you stand on energy and what point do you get concerned for the consumer >> right, it's a great question. on energy, we are overweight we have been saying all year that going into this opec meeting, yes, supply, it's been a supply story all year. supply is going to increase and the opec meeting, we weren't sure if the was going to be enough given everything going on the involuntary declines in venezuela, mexico, now iran, most people in the market thought 15% to 20% cuts out of iran, if it's down to zero, that's going to create a huge spike in oil prices, but this is good for the emp and integrated companies when you look at earnings energy earnings numbers have gone up significantly. there's a .92 r-squared correlation between wti oil prices and energy earnings >> pxd, oxi is another name, and eog, three names i think you
could work with, and for a high beta pay, you could look at chesapeake >> let's get more on the move in oil and bring in brian sullivan at a big oil and gas conference in washington. great to have you on a day like today when we're seeing wti and brant catch a bid midsession what's the talk there and are you hearing anything about this pressuring of allies to dial back iranian oil purchases to zero >> we are hearing that as well in fact, just up the escalator to my right is secretary perry, energy secretary rick perry is literally up that. we had a few moments with him off camera earlier today we also got comments from the russian oil minister they're all in a room with a number of other member countries and companies. conoco phillips ceo is in that room, representatives from chevron and exxonmobil it's an interesting move in the price of crude oil we got headlines earlier today the saudis were going to raise their production to a record 10.8 million barrels
russia is going to raise its production by about 200,000 barrels as well. we confirmed that about a half hour ago, to our camera, in fact we'll get the comments out if we can. you have a lot of these big producers saying they're going to increase their production that's going to add more oil to the market now we have these iran headlines which completely turn things around i was listening to your conversation with joe and jon and others, and i just want to point something out about the u.s. side of the story, which i think is important when we were in opec yesterday, or last week, we talked to scott sheffield, the chairman of pxd, that joe just recommended. just be careful about peak production in the permian, because there's a lot of concern out there that if we lose barrels elsewhere, oh, don't worry, texas will pick it up i'm not so sure about that because we heard a lot about pipeline constraints, truck driver constraints, trucking key can pump more oil, we just don't have a way to get it to market right now sheffield said he thought for now the permian may have been peaked out either way, really interesting
headlines. we're going to try to get comments from secretary perry wunl once he comes out of the meeting upstairs >> jim has a question for you. >> brian, good analysis there. i'm curious, you talked about the pipeline pressure coming out of the permian are you hearing anything that maybe that's why the rig count hasn't risen as much over the last year as i would have expected it to i'm perplexed by the curve here. >> yeah, you're exactly right. no people, no rig count jump we saw rig counts double over the past year and every week now, it's kind of gone down or stayed flat. you know why if you don't have people, if you don't have the services companies, you have to remember that when oil bottomed out a couple years ago, literally hundreds of little service companies, the men and women who actually go and put frac sand down, they went out of business. all you hear from the permian is we have the oil. maybe we have the pipelines although we could use more
we don't have the people and we don't have the smaller services companies. they don't exist and there's no bank fnlsing to get them going if you're ten guys who want to start your own oil services company, currently you work for a big company and want to go off on your own, you probably can't do it because you can't get the capital or bank loan because the banks are so burned by the last oil downturn so just be careful about saying easily replace barrels lost from iran or whatever here's the question as i have to go back, which is this, we can push our allies to not buy iranian oil, but with all the trade stuff going on with china, are we going to go to china, the biggest buyer of iranian oil, and say, hey, china, don't buy iranian oil. what do you think china is going to say right now there's probably a few things i can't say on camera that will be their response >> it would be in chinese, right, brian >> my chinese cursing game is low. >> mine too. going to lettia go thanks a lot brian sullivan joining us from the oil and gas conference in
washington, d.c. let's talk about the ancillary trades here. we talked about the energy trades yesterday we heard from carnival kuehl. all their costs including fuel went up higher than expected you have been in the airlines. that's been a painful trade for you. what does it make you think now about the airlines you hold >> it caused me to dump the calls in american airlines but i held on to delta for some of the reasons mentioning on the desk yesterday. they have the refinery out in pennsylvania, i believe, that they use as a bit of a hedge since they produce not jet-a, necessarily, but they can make money on that side of it but i like, mel, some of the plays like, for instance, boeing overseas last week, there were headlines all over the uk papers about potentially airbus leaving the uk because of the punitive feeling within the eu against the brexit
well, i think that plays right into boeing. boeing on a $40 correction off the recent high, $370 to $330, i like picking up a stock like that >> rob >> for me on the value sid that's being created by a headwind going away, and that's higher energy prices, is the master limited partnership space. it's really been an underperformer for the year, however, the last quarter, it's up 13% no surprise, rising with oil prices and kind of stable interest rates and what i would tell you, stable but volatile. both at the same time. and what i would tell you is that headwind going away, when you have an asset that's yieldi yielding 8%, with a historical average of 300 over the ten-year, that represents good value. >> yield is amazing but shouldn't it not matter if the oil price is $60 versus $70 a barrel, shouldn't it not matter? >> correlations over the long run are not high correlations over the short run are very high, as it relates to
interest rates in oil prices >> a spike in oil, and - >> you see value and the performance is there >> rob, you know i generally agree with you on this trade you also know i'm out of it because so many shoes drop in this sector. >> when did you get out? >> i think it was march after the first decision that knocked them all down like 20% in a day. i guess the question is simple, what's the catalyst? it's been three years, almost four years since the 2014 slide in oil prices took this sector down what brings it back? >> i think it's the slow removal of negatives that brings it back and a recognition of relative value versus other securities you could own. what are the negatives that are going to be removed? i think interest rates, the pace of rate increases is likely to slow in my opinion and i also think energy prices might sustain with the cyclical recovery you have those two headwinds that are, you know, pulling back a little bit >> that's a good -- is $70 wti, is that going to be the price
here, or do you think there's going to be some other intervention, shall we say >> if you do an spr release, if the president authorized an spr release, it's a different type of crude oil than what's needed, you need wti >> the wouldn't solve this problem? >> you're releasing heavy oil which would have to be broken down into synthetic light oil. the headline would appear to be one that would lower the price of oil, yes, we would agree with that, but i don't know in the long term that we solve the issue. listening to brian and everything here, we're talking higher for oil we clearly are we're talking about taking iranian oil off the market i said yesterday, you have the saudi aramco ipo, a situation domestically here that brian identified that is a logistics problem in the permian basin you have peak production, and now you have the oil issue. to me, that leads to higher oil pricing and the question becomes what's the impact on the economy, what's the impact on the stock market that's the ultimate question
what does the federal reserve do if oil prices go $75, $80. >> what do you think is that going to be enough flation for them to say, yeah, let's keep going >> i think we're going to have to watch what the consumer says. we have consumer confidence that ticked down from may's 28.8. but it's still at very high levels we're just off the all-time high we're significantly above levels we s all throughout 2017 you see retail sales going up. friday, we're going to gespending and income numbers. we'll get to see what inflation really is doing and how these energy, the increase in energy prices is impacting that there should be an up swing there, but i think so far the consumer is feeling very good. there is - >> strong enough to withstand this spike in price? >> i think to $70, if we get, you know, $80, $85, we'll have more of a problem. >> i think that's a really good point. i want to add to it, that it's been almost a year since oil
broke out of the $45 to $55 a range and in that time, you really haven't seen any crack in consumer confidence. and you certainly haven't seen any crack that has been attributed to higher energy prices now, what this tells me is you go back to that 2008 to 2014 timeframe, the consumer got used to $3 plus at the pump and that's back where we are today. they may not like it, but it's not denting their confidence because they're used to it >> what does it mean to companies with oil as a major input. >> you heardesterday from carnival, exactly, one of the biggest users of diesel there is shipping companies, of course, are right up at the top of that list truckers right up there as well. >> fedex yeah >> it has negative implications for fedex, u.p.s., the big trucking companies like jb hunt and so forth as well as all those cruise lines have been tagged on it and i think there will be an opportunity at some point here i just don't know when yet now that's why i'm not picking them
up >> it's about magnitude and pace, just like interest rates not just where it goes it's how it gets there and the digestioperiod associated with it so i'm not too sure the consumer can't withstand, especially in this labor environment that we're in, which is very healthy. >> so far, the correlation is, since we broke cnbc broke the story, regarding the iranian imports and the price has gone up $2 since then, clearly, the stock market is okay with it, and yawning, because the market has correlated to move higher with the price of oil. >> all right, let's move on here ge, general electric, leading the s&p 500 today. pacing for its best day in more than three years after the company announced more details of its restructuring plan. morgan brennan joins us live from the new york stock exchange with details and a fiery exclusive with the ceo just took place. >> that's right. so shares of ge are at session highs right now, up almost 9%, this after the company unvei its plans to become more
focused, stronger, simpler, saying it's going to be from this point forward aviation, power, and renewable energy company. it's spinning ge health care into a stand-alone company, a process that's starting immediately and will take place over the next 12 to 18 ms. and also saying it's going to fully separate ge, baker hughes over the next two to three years in which it has a two ds stake in that company. so earlier today, on squawk on the street, john flannery, who has been at the helm just shy of a year, saying that this process and this announcement which investors have been looking for for months now, is very personal to him >> i share in every sense the pain, if you will. you know, my life savings is in the stock. so i have the same sort of connection to the issue. the second thing i would say is we have gone through a tough patch. we faced into the issues we're dealing with the issues. we have a plan, we know where we are. we're realistic about that
we know where we want to go with the portfolio, with the balance sheet, with how we run the company, and we know exactly how to get there, and stay tuned for the ride here. >> now, david faber also asked john flannery if this is it, if there are any more surprises that could be coming out of ge, something that we have seen in terms of news announcements in recent months that has helped push the stock down by half over the past 12 months he said we're done yes, we're done. no more, iuess you could s skeletons coming out of the closet, to use my own words. the thinking here is by spinning off health care into its own stand-alone company, you unlock more value for that specific business rather than if it were part of this conglomerate umbrella under ge. the reason he's keeping aviation and power and really renewables, which seems to be its own tier now together is because there are a lot of synergies technologically, in terms of materials that are used, and in terms of install base and just in terms of the global
infrastructure from a production standpoint, in terms of baker hughes, how they exit that stake over the next two to three years really remains to be seen. there are different ways they could do that. and then the other thing i would just notes, melissa, is ge capital, which is continuing to be a part of this new reenvisioned ge thatrelooking td will make a capital contribution to that of $3 billion next year. lastly, the dividend staying in place until this stand-alone health care company is realized, at which point both ge health care and ge, the stand-alone company, will reassess where the dividend is at back over to you >> morgan in the release ge said that it would basically re-evaluate the dividend and put it in line with its industrial peers. is that sort of a backhanded way of saying we're not cutting the dividend we are not eliminating, i should
the dividend? >> yeah, i think it's safe to say, at least at this point in time, based on the press release, the comments on the call, and the interview on our air today that that is the case. i would not be surprised to see that the dividend does get lower, lowered in line with industrial peers when the time comes in 12 to 18 months when health care is its own company >> absolutely. thank you. morgan brennan joining us from the new york stock exchange. any interest at this point in general electric i understand you have had this conversation many times on this show as we have on many other shows this time is a little different because we have sort of what a road map would be for the new ge jim. >> so i'm going to thaw a little bit, but let me be clear i'm not buying it today. but it gets interesting. now you have to raise an eyebrow. the problem with today's news is it confuses balance sheet with income statement they're cleaning up the balance sheet a little bit there's still going to be questions, are there any surprises not withstanding what
mr. flannery said, but the big question is what is the earnings power? that's the question all of us had on the desk. right now, people think it's going to earn a dollar a share that's been questioned from the st now as you're splitting it up and you have questions of what's allocated to what section, what it means is it's going to take a few quarters for the clarity to really come into the income statement as far as what is the normalized earning power i like what flannery is doing and i give him a thumbs up, but it takes more time before -- >> i 100% agree with jim it's taking up a level, restructuring takes time 18 months sometimes. and you have a business whose power business continues to deteriorate. if i was to look at the industrial sector, which we're neutral on, it's had a tough time lately. we view it as a trade off the bottom, more of a trade versus an investment story. >> i think that's right. in terms of it being a trade, you want to be in the stock, i would think. >> i'm thinking some of the more high quality names not going
through the same >> for general electric, i understand what you're saying versing the income statement versus the balance sheet, but doesn't it just take a small improvement in the balance sheet. does it matter right now what the income statement is churning out if the balance sheet is improving? >> listen, i think for a trade, you could get a bounce in the stock, largely, though, the investment story around this is going to be dependent upon what's going to come forth in the coming quarters. pension liabilities are a big issue. to say - >> they're shoveling some of that with the health care spin-off >> agreed on that point, but to say they will be cut dramatically, you need to see the evidence of just how much that cut is going to be. and you're only going to get that in the coming quarters. >> what are the options activity indicated about ge >> flannery, his timing was impeccable to not get people all excited or get people very negative about selling baker hughes, when bhge was down there in the mid-20s because that's
where it was in february he basically pounded the table and said nope, not going to be a quick divorce here now that we've got a little more clarity about when they may sell their stake, they have a two-thirds stake, as you guys all know maybe that happens in 2019 here, mel, and it's with the recovery in crude and so forth, his timing on this particular part of that business has been impeccable >> it could work out >> because something that was foisted upon him, now he has the choice to wait and let this thing play out and let the buyers come to him >> industrials in the most recent sell' off is down 5.6%. do you like industrials? this is weird, all wrapped up also in the trade war stuff. >> exactly, it's been a tough call we have been overweight industrials and at this point, valuations have come down so significantly on a number of these names that it's worth looking at we don't see a recession coming around the world, at least in the next year and a half you have the imf at 3.9% growth for the world. you had fedex come out, they
reiterated their gdp expectations for the u.s. and the world. of course, there's always the caveat of the trade war situation. but we think that, you know, you look at the pmis in asia they have come down over the last couple months, but they sort of stabilized in may. if we could see that continue around the world, the global growth story might have tapered off, but it might not fully be over yet >> how long do you think it takes to ultimately play out because i don't think this trade news is going away anytime soon. so you have a little bit of a headwind, great price, which is a tailwind, but a little bit of a headwind how do you think about that? >> we think the overall market in general is going to be in a trading range at least until this trade talk is over. and we kind of talked about that earlier this year. volatility re-entered the market in the last couple weeks it reminded me what happened in february when the market went into correction territory and it was related to the fed and their monetary tightening policies we heard them increase the number of times they're going to
raise rates to four two weeks ago, and we think that the trade war conversations are really playing into that and hurting the market on the downside, so we would be careful, but you can nibble at some of these stocks here >> i think that's a record for the month of june, 25 minutes, we didn't talk about the fangs >> until now >> high five >> lindsey, great to see you lindsey bell >> here's what's coming up on "the halftime report." >> the street's number one chip analyst joins us for our call of the day. why he downgraded a big tech stock to sell that's gained over 45% in one year. >> plus, we want to hear from you. the traders will be answering your questions tweet us #askhalftime >> before the break, a look at tech after yesterday's drop, the sector is still up about 11% for the year according to our data partners at kensho, after similar moves of 10% or more in the first half of the year, the bullish trend tends to continue with an
average gain of another 14% by the end of the year. for more, go to cnbc.com/kensho. healimrertisack in two minutes. let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.
up over the upgrade before. >> no, no, no. i do regret it not from the standpoint of the stock. the stock hasn't moved all that much at all. it's just that had i realized that investors would start paying attention to the structural issues that frankly we have been talking about for years, i probably wouldn't have bothered the reason we upgraded it in april after the earnings was i was worried the data center growth would still continue for a while, numbers would still go up and frankly given the magnitude of the guidance raise last week, the surface logic of that was correct what i missed was given the final public disclosure of the ten nan ameter delays, investors stopped caring as much about numbers going up >> how much of a tipping point was the resignation of cruzanch to making this call? >> it was important because, again, my worry was that upside risk has numbers go up, and
frankly, numbers could still go up given the magnitude of the raise, but i think given the leadership vacuum now, the stock is much less likely to inflect sharply upward if numbers continue to go up in the near term i think given the short call, the sudden and very abrupt and surprising nature of the resignation gives some upside protection in the short. >> who do you want to be ceo of intel? could that ceo persuade you to upgrade the stock once again >> i have hesitated to speculate in print in terms of who could or should take the spot. i think by them putting bob swan in the interim spot, it does indicate they're looking at both internal as well as external candidates you're not going to, for example, but murky in the ceo spot and look for external candidates they're looking for both i think the easy - >> go ahead. >> the easy thing to do is put murky in and sell him as an outsider, but we'll see what they do. >> stacy, thanks for joining us.
stacy rasgon of bernstein. let's get to courtney reagan >> just hitting here at cnbc.com, new reporting from lauren hirsh she's saying sources familiar with the deal say that conagra brands is in advanced talks to acquire pinnacle foods this is a deal that could be announced as earlier as this week no price could be immediately learned in cnbc.com's reporting. however, it is likely that the deal would be done in a combination of both cash and stock. the companies were not immediately able to be reached for comment. that would be conagra and pinnacle foods, but again, cnbc.com's lauren hirsh reporting conagra is nearing a deal to acquire pinnacle foods as you can see, your shares of pinnacle foods are spiking by more than 4% back over to you >> thanks. courtney reagan with that news let's get back to brian sullivan in washington. he just spoke to rick perry.
brian. >> yeah, we did. that's why i wanted to bomb back in on your show. thank you very much. here's the thing department of energy secretary rick perry coming out of a meeting, racing into another meeting, gave cnbc a couple minutes. i asked him about the iran sanctions, the news u.s. is going to push our allies to buy zero oil from iran he said he wouldn't comment directly on that that's coming from the state department he's the energy department however, what he did say is he believes the saudis may be able to produce more oil than perhaps the market thought coming out of the opec meeting there were headlines rick perry was unhappy with opec. he said i wasn't unhappy with opec basically, i think the saudis can maybe produce more or will produce more oil than the market expects. remember, guys, the opec meeting, they didn't come out and say x number of barrels. they said a percentage of their expected cut so perry was confident, basically, that the saudis, if there is a gap in the market, would be able to produce more
oil, as well as i asked him about the united states and the permian basin, he said bottlenecks now, but we're going to continue to invest. the bottleneck stuff we just talked about a few minutes ago, and he said we'll continue to invest, make sure that the permian can get more oil to market not in the short term, but longer he's confident in the short term, the saudis would be able to produce more oil if needed, if we need to fill the gap from iran >> brian, it sounds like he's saying essentially that if oil gets too high, the saudis will start pumping and bring the price back down. >> yeah, i don't want to put words in his mouth, but if the saudis have capacity, and we know they do they're part of opec, sort of the big king of opec, they have to abide by the deal they made in vienna. iraq also coming out and saying they're trying to produce more oil. so it sounds like this energy secretary, again, i don't want to speak for him, is confident, either saudis or maybe others can fill any gap
we talked to the conoco phillips ceo, by the way, off camera, or an camera and you haven't seen it he said the market was well supplied and would remain well supplied code words for maybe we can pump more oil >> brian, thank you. brian sullivan joining us from washington let's get the headlines with sue here herera >> here's what's happening at this hour, everyone. a top trump official squaring off with senate democrats at a hearing on child separation. senator bill nelson asking hhs secretary alex azar about his department's efforts to reunite children with their parents. >> they would either continue to be in our care or if they have reached a point where a sponsor who is in the united states who is a parent or a relative has been vetted and has been approved for sponsorship, they would have been released as expeditiously as possible to those sponsors >> prince william meeting with israeli prime minister netanyahu
at netanyahu'sidence in jerusalem. the first official visit to israel by a member of the british royal family earlier, he visited the holocaust memorial laying a wreath at the hall of remembrance. he called it a profoundly moving experience >> u.s. has deployed a third aircraft carrier this year to ptroll the south china sea carrying more than 70 aircraft, anchored in manila bay in the philippines. >> and that is the cnbc news update this hour melissa, i will send it back to you. >> thank you, sue. >> we have breaking news on uber we're in london with the headlines. >> yeah, uber has been granted a license to operate in london a 15-month license rather than the u.s. five-year license that's because the regulators want to see if uber can make a change, just a little context. in september of last year, the regulators transport for london
denied granting uber a new license to operate in the capital. they said it was not fit and proper to run in london. it raised concerns over the security of drivers, kearns over the way it worked with regulators sirns then, uber has made changes, reporting serious incidents to police, maximum hour driving time for drivers, and now those conditions have satisfied the judge here at westminster magistrates court in central london and has satisfied the regulators and the 15-month license they have received is on condition that they continue to meet these, continue to meet some of the regulators i'll read over the conditions. one is reporting any data breaches to the regulators in due course another is not hiring any drivers who have had criminal pasts. and another one is around communicating everything that they do with the regulators. this is key, a huge win for uber and a huge win for new ceo who
has looked to clean up the company after a very muddy past. >> the latest on uber which is now fit and proper to operate there. >> coming up, jon is following bullish options moves in a stock up over 35% this year. >> and a sector check, energy in the lead after the spike we saw in wti and brant telecom bringing up the rear "halftime report" is back in two. et's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital. you mighyour joints...ng for your heart...
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let's get to the telestrator where jon najarian is watching unusual activity what are you looking at? >> that's right, take a look at this this is march of this year it was nearly $119 a share $20 lower than that right now at $98.25 at midsession we see them scrambling in here, buying a lot of calls. they're buying upside calls out in august. and as they bought these august 100s, which are only about $2 out of the money, they also sold lower puts they soldthe 90 puts to help pay for this so this is a pretty aggressive buyer who obviously believes that the stock can get back on that track that we saw earlier, mel. i bought these i'll probably turn it into a
call spread in the next few days or weeks and i'll be in the trade about a month. but i do have a second one for you. take a look at this one, mel bobba. alibaba, this one has made a smaller correction, but from around here, let's call it 215 bucks, down here to 191. now they're scrambling in, buying september calls similarly, they were selling puts, buying calls in this one buying september 210s. i like this one. i'll be in it probably a month and i intend to spread these off in the next week >> coming up next in the blitz, the trades on mgm, spotify, but first, to tyler mathisen with what is coming up on "power lunch. >> we'll see you there will trump's trade tactics work or is he taking it too far we'll ask former commerce secretary and u.s. ambassador to china, gary locke. >> plus, the ceo of gw pharma, they got approval for a drug
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trader blitz first up, mgm resorts downgraded to neutral >> joe >> so far, year to date, the stock is down 12%. casino and gaming is down 3.6%, it's been an underperformer. going from conviction buy still keeps it at buy. for the longer term, that's where you want to be this is a diversified company. this is not just about las vegas revenue. it's also about macao, and alsounts non-u.s., rather non-vegas u.s. locations which make up another 25%. i like the diversification here. >> spotify is moving higher after barclay's initiated the stock with an overweight rating. >> a $210 target a quarry about a week ago, maybe two weeks ago, put a $225 target on it. tiger has a 7.2% stake here. tiger management, so i think a lot of folks are piling into this space looks like it's good for spot, at least in the short term >> lenar is pacing for its best
day in three months after reporting a beat on the top and bottom lines >> the stock and sector have had a rough 2018 the obvious reason is tariffs on raw materials. i think what you're seeing today is what's more important than those tariffs and price hikes is that interest rates are low and that makes housing more affordable it looks like interest rates are going to stay low for the foreseeable future >> the retail etf has risen in the past three months. rob is taking profits. why? >> i think the tariff news it's likely to impact some of the goods that are sold by the retailers. we had an amazing trade here in a very short period of time. it's taking profits, not completely selling the position. recognizing what the macro environment may show us. >> next up, how the futures traders are playing oil's move higher at itwmiteonthe halftime report.
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to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. welcome back to "the halftime report. i'm jackie deangelis this is futures now. e getting another check on crude oil spiking 3% as the use pushing allies to cut their iran imports to zero. oil surging above $70 a barrel for the first time since may jeff, let's start with you should we expect more gains as pressure mounlts on iran >> jackie, short term, the answer is no $2.50 move in the crude oil today, sensational you see that volatility come in due to the fact that, yes, we
don't want iran sell any crude oil. however, as it shakes out with china, the reality is maybe that's not actually going to happen the narrative we have been talking about about crude oil, let's remember, it was at $64 a couple trading sessions ago >> all right, jim, oil broke 70 today, what do you think the next stop is >> i think the break of 69.5 for friday's highs is a big day. i suggest that we head up to 74 or 75. when we consolidated from friday i didn't think the story was fundamental bullish. i was kind of in denial in my head but with in move today, forget it. now, it could come back down but it think it will head to 74.95 >> thanks guys, much more coming up on, melissa, back to you. >> thank you, jackie deangelis breaking news out of the white house. president trump is speaking out to members of congress, eamon
javers is there with the details. >> reporter: that's right, the president is talking about this decision that we got down from the supreme court this morning on the trump travel band, he calls it a great victory for our country that the supreme court upheld the president's third version of his travel ban. he's talking about asking for more funding for r tthe border wall it is one of those meetings where the president asked each members around the room to speak. quite a few members who all spoke. the president have been talking now for about 40 minutes or half an hour, we'll wait to see what comments he made when we get the tape out and calling the supreme court's decision today a great victory for our country, melissa. >> thank you, eamon jarsve, joining us we got the "final trade" on our
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with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia. . welcome back to the "halftime report." the first one is from anthony who asks, how do you see the oil crisis emerging the oil market >> rob, you did what with d.m. >> we reduced a little bit because we think the trade discussions are going to be front page news for a while, in addition stronger dollar and higher interest rates are good
for emerging markets it is a little bit different today inemerging markets today and fund mostly in lower currency there is still reaction to the dollar sometimes overtime. it is too risky to be in right now since it is a neutral waiting. >> china being on a bare market, that's a wait. >> next up when does caterpillar becomes a buy, this tweet is for jim >> it is intriguing for any value investors. this is all on china's concerns on trade issues. i think it will be resolved but it will tyke take take two or te months you may have to wait for a couple of months a the best finish the dollar cost average into it. this is definitely attractive here >> let's get to this tweet here, "i want to buy facebook stocks,"
what's your long turn? >> long-term, i love it. oculus tv and another reason to like facebook, it just bounced $5 it is right in between the recent highs and lows, at $197 is a good deal >> looks like texdot >> i agreed with rob though. i don't believe the coast is clear. i know rob mentioned this kind of lingers with the trade concerns and i still think we got some time here >> final trade time, rob >> i think you got to buy xlx, interest rates have come up on the short end. profitability improves and i think you can own financials >> enbridge.
>> celgene looks like a ridiculously c stock >> intuitive surgical. >> rob, thank you a lot for joining us that does it for us here for "halftime," "power lunch" starts right now. >> i am michelle caruso-cabrera, president trump is talking and tweeting like crazy today. turning up the heat on trade and taking a victory lap on the travel ban and hitting iran on oil experts. we are reading all the latest from washington straight ahead shares of general electric surging right now. companies selling. this is the end of the over haul, can it jump start the industrial revival company the fda improving the first ever marianne based drug. the ceo is going to tell us what the historic decisio