Skip to main content

tv   Fast Money Halftime Report  CNBC  June 28, 2018 12:00pm-1:00pm EDT

12:00 pm
allows us to continue to invest deeply across all operations across all states. >> andrew masterman, brightview ceo. thank you for joining us >> thank you very much it's an been interesting session from a price action standpoint dow's down 42. look for nike and final stage, ccar tonight let's get to melissa and the "half. welcome to "the halftime report," i'm melissa lee in for scott wamer ipner amazon, a giant opportunity and that's coming up trading ahead of the market moving comprehensive analysis otherwise known as ccar, those numbers done out, with us, jim lebenthal, steve weiss and cnbc contributor, ali mccartney, managing director of ubs financial services
12:01 pm
pete najarian, you've been staal war wart of thing anck and thin? is it going to get thick >> i don't know if you want to put it all in ccars because it's not. it certainly gives another catalyst it's something where i'm holding ton abank-america, citi. i like the fundamental story, mel because of that i'm holding on >> what is the fundamental story for financials, ali, i feel like the fundamentals have been set up since the beginning of this year >> you're obviously right. i think the short-term w going, global growth has weighed on it. the fundamental story is banks
12:02 pm
perform well when they have money to lends out regulatory restrictions at check. and we have an increased interest rate environment. and the other thing, dominating the headlines, you'll see earnings go up we're there buying on this weakness, whether you do it through buying calls >> three out of four of those three. rising rates we had 31 basis points but the thing has spread since 2007. that has been a big problem for the financials >> it has been a lingering worry for the financials that this flattening yield curve could lead to recession base that's one of the bellwetherers nine of the last 13 times we've gone into recession. i think when you look at the banks it's a tale of two banks you have the domestic regional banks and then the big what we used to call the money center banks. the regionals have tended to do -- i think looked a lot stronger i'd probably buy jpmorgan in
12:03 pm
here i own it, but i'd probably add to those positions and then you have to look at those who have been kind of the bad actors and see if it's ready or a time getting involved again. meaning the wells fargos and how many accounts are going to get open at how many different banks and if they cleaned up that bad house keeping. >> yeah, not that easy to clean up the bad kehouse keeping. would you bet on a wells fargo, weiss? >> no i wouldn't bet on wells fargo, i wouldn't get paid enough on the upside versus citi which i own and also visa and mastercard look, there seems to be like this rule that you have to own banks. >> everybody loves banks >> yeah. every strategist we trot on here on krchlgt ncnbc financials arec to be. >> i can't wait, here's why --
12:04 pm
because right now, they're way too cheap, number one. number two, if i had another place to put my money, i would put i'm sitting with cash so i'm waiting for others to come down and we'll talk stock that i bought a lot of this morning and you know, there's this -- remember those old civil war movies where you lined up like there was one line and there was -- and then another line behind that, right? >> jim, welcome. >> see, jim doesn't like the financials because of the sub -- >> all of these people keep lining up and keep getting shot. one line goes down another line of financial buyers comes in and they get shot. i'm holding it, as i said no further place for the money. they are cheap and they will rally at one point. that's the gap because i think i can make more money elsewhere. >> okay, okay. let's talk about what's going to happen going forward the reason, it's a very
12:05 pm
complicated situation but let's try to simplify it i do think the reason they've underperformed is because of the flatness to the yield curve. it's a flight to quality in light of what's going on with the trade issues and an ecb that has incredibly incredible monetary stance. >> and those things don't seem to be going away anytime soon. >> well, the anytime soon parent of your sentence is the part that i think we have to parse. >> okay. >> because we don't know when the trade issues that are going on with china will be resolved i will dare to say they have to be resolved for trump's sake before the midterm elections that's a good four months away hopefully, it gets resolved by the end of summer. when that happens you should expect a little steepness to come back. and if the europe engdp regains strength, that's a question mark, i think the ecb has to evaluate, do they need an emergency rate policy in place ten years after the crisis
12:06 pm
i tell you, i don't think they need so. >> go be back five year, ten years, 20 years, and the correlation between rates and the xl -- >> what do you mean when you say rates? ten-year yield, spread -- >> the ten-year. i didn't look at the spread. you have to look at the spread because that's critically important for the earnings >> yeah. >> but in terms of the correlation, with the ten-year, banks used to trade in fundamentals then you see in around 2011 that that broke apart so the spread between the ten-year and banks has never been wider and to me, that's a function of what also happened in 2011 which quantities taser trading, relative ral trading which is controlling a lot of what we do. and particularly the banks, given the liquidity there. so, you're fighting a couple of different forces here. >> there's something else that went on in 2011 and has persisted to this day. >> absolutely. >> which has preceded 2011,
12:07 pm
banks that used to be valued on price to book that metric got thrown out for a very good reason people didn't trust the assets that were on the book. okay, that's fine. but again, we're ten years downstream of the financial values i might think that ccar is goofy at this point as do other regulations the banks to clean up their balance sheets. when we look at a citigroup, just a ski example and people like peter and me or whomever say there's value there's a reason for on the flip side, look at wells fargo where it's trading on par with jpmorgan it makes no sense whatsoever >> it sounds like you're concerned about the international exposure >> yeah. i own it, that's the one concern i have what sort of risks do i have for what we're seeing going on in europe deutsche bank, is that something that's weighing on the banks i would say it absolutely is people, at least whether it's
12:08 pm
right or wrong, that's part of presence of jumping back in. for one year, bank of america is up 19% for everybody saying, geez, these banks don't do anything. they haven't done anything this year, that's true. but it depends on your time frame, too, mel. some of these names that we talk about each and every day, some of these names aren't just trades, they're investments. and they've been in portfolios for a long time. >> from where we stand we look at large institutional clients we're not talking about investing today or tomorrow. but uber economic cycles to your point, where are are we going? they should be up already. they're down 5% on the year. we think that the ccr is only going to emboldzen by the day. and with the ten-year treasury to get out of volatility in the short term but you've got to be there. >> why do you care about voltz tilt >> why do we care? we definitely care less than you
12:09 pm
do >> i don't care about vol at all. >> okay, my clients care about volatility >> less than you do. >> you only worry about the war of 1812. >> please don't. >> we care about it in the sense that, you know, we're dealing with trying to get portfolio where is ke minimize volatility and correlation. >> but why do you care about volatility >> because our clients care about it it's the difference between the way people invest when they're motivated by emotions and the way they don't one of the ways to get exposure to financials right now, given the point in the cycle we're thrilled about hedge funds hedge funds tend to perform. that's our background. that's where we go a lot of our clients seeing big capital marketability. hedge funds can do the long side, they can do the short side they tend to be very uncorrelated when you have environments like this and they tend to perform well in rising interest rate environments so if you're going to do it that way, do a hedge fund
12:10 pm
moving on here, up more than 12%, energy, crude breaks above $74 for the first time since november 2014. so, where do you go here with this continued rise in ta? >> i think you stick with it, okay, because you still have a lot of factors that are keeping production, in particular, delivery in the u.s. of oil and particularly distribution hubs, it's keeping the price higher. i also want to say, mel, this is a great segue from the earlier discussion on financials the same negative tone that we have about the in thises today apply to energy this time last year in the fall it rallied and it really hasn't look back. i think that's a parallel here you look at the place of oil as similar to what the yield curve needs to do for financials, sorry i'm going backwards but i think it's important investing is about pattern
12:11 pm
recognition, okay? what you're seeing in the energy sector, i think it will continue and it applies at a later date to financials. >> i understand what you're saying abosenout sentiment, peo seem to be in the bank trades or underweight or underexposed to the energy trade right now there are the kremental buyers that could still come into energy >> yeah, but, investors are waiting for things to get comfortable. i think the trades have gotten comfortable enough where people say okay i can be there now. they didn't want to be there two years ago. when we were talking about it on this set and into the bank, a lot of people were shooting arrows at us it turned out it was okay. even a couple months ago when we were talking about the oil service companies and chevron, people are saying, now, they're coming around. the price has gone up enough where the average investor want to get in and the columnists find they can write it better
12:12 pm
comfortably. you ignore book values at the banks at your own peril. i understand they go out of fashion but you've got to pay attention. you've got to pay attention as piece says to what's going on in europe because we've got central banks that are out of sync u.s. central bank. and it doesn't matter it will provide opportunities. >> it's a big catch here integrated we've got refineries. >> i'll still buy chevron. >> okay. >> i continue to like it i'd buy exxon as well. >> i'm extremely overweight, unfortunately. i don't like as much weighting as i put into this sector. i am in it -- >> that's just because the sector went up far faster than you thought. >> well, i think it's because it didn't track with oil. whether it's exxon or search ron, they didnro chevron, it doesn't move the way you expected to move even if oil grinds, mel, for some of this to rise higher even
12:13 pm
throughout that grind. i'm so exposed it's going to be showing up later. >> that's a tease. >> that's a tease but i'm in the service games, emp names >> number one pick in your portfolios? >> of all of them? >> yes >> of all of them, exxon >> in the group there i think we finallyhave a supply-based market upside is fine oil prices we can take the world needs 7% less toil produce the same gdp than ten years ago. this is definitely a place to be, earnings are booming own it all >> jim brought it up the permut. exxon chevron. they're so weighted. they've all got international. >> to focus on that as i did did run the peril of you can't forget what's going on with
12:14 pm
iran, saudi arabia, et cetera. i think it's wise to focus on the permeon because transporting oil solvable. >> it's about a quick fix. >> it's about a year most of the pipeline companies are looking -- we're already halfway through 2018 most of the pipeline companies are looking at new capacity coming on in 2019. that's not that far away and the markets will anticipate that this isn't a bad time to be in >> i missed the group unless pete wants to give me that at his cost >> at his cost. >> he doesn't like it that much. >> but i think he can buy or else give the opportunity to buy it after the saudi aramco prices. >> you think the prices will fall >> yeah, because we're creatures
12:15 pm
of habit you have some changes, right you have venezuela not able to produce. middle east, who nose what's going to happen with iraq, iraq is producing fine right now, iran we just don't know >> do you have a specific area of energy? services, emps what specifically would be the first area to say this has sold off enough, i want to get in which one would you go for >> i think it's a homogeneous group, away from heavy gas companies. you see that icahn got out of l & g, i always thought that was inflated for me, i'd go with the big ones, the small ones i mentioned danbury yesterday. i like those you have resources that it's moving because the junk's moving i wouldn't be in there >> oil's not the only thing on the move today, emerging markets also moving on pace for its worst quarter since 2015
12:16 pm
eem seema mody. >> markets down 6% just this month. two factor in play growing investor concern about the economic impact of a potential trade war and the stronger dollar. now up 5% just this quarter. moody's warning that a stronger dollar increases it's credit risk of several emerging markets. just point out, asian companies among the hardest hit, china leading the pack trading lowest level. trading deeper into negative into bear market territory yuan currency dipping to the lows year, raising concerns that china is using currency to respond to increased trade tensions and speaking of currencies, it's worth pointing out the indian ruppy just a low and a trucker's strike has brought the country really to a
12:17 pm
standstill take a look at the brazilian company etf. ticker twz, after hitting a an 18-month low >> thank you very much what we've seen with bank of america, the outflows for merging markets cumulatively are higher they've been intensifying for may and june ally, do you like emerging markets are there opportunities in your view >> look, i think there are long-term views getting back to the volatility question. we actually took our overweight down to neutral? >> how long were you overweight? >> we were overweight about two quarters the issue is the short-term issue with the dollar. the dollar strength is making it a really hard trade right now. in terms again being in long-term for the clients i can't ignore the demographic for the population growth in those countries being in there long term we're being thoughtful and careful about how we do it
12:18 pm
>> so, everybody at the desk, i think, today when i said i'm worried about the dollar and emerging markets, said no, no, no, it doesn't trade on u.s. dollar it's not dollar-dominated anymore. that's bull. and we see that now. >> and i agreed with you at the time >> you were the only one >> i understand. >> from afar michael. >> anything else you were right about, i agreed with that, too >> yeah. >> you put until a lot of time >> that's what i do today, steve weiss. >> i don't think you go in these are pure momentum trades it's a liquid market, it's very thin and i just don't see the value there and it's impossible do analyze that >> what worries me was there was a time that people were looking for all sorts of yield, whether it been stock market yields or yield on bonds and people were rushing into emerging markets everybody was on the debt side, right? and now -- >> funny how it turns out like that the one thing i'll say about emerging markets and i will
12:19 pm
acknowledge i'm a u.s. investor but i do advise clients about how to invest in this space. the answer is you have to have an active manager. i don't like the etfs for this the etfs by mandate have to have exposure to their country, brazil was mentioned, political turmoil for many years russia has had similar issues. you want a manager who is actively going to side step those issues as they come up >> so, if i'm a person at home, everybody watching -- not everybody, a lot of people at home are watching and i'm thinking i can do it applies with an etf there's eems, ewz. >> you can use the country's specific etfs but i do think you want an expert manager, as steve said >> wouldn't you rather just have an individual name, though everybody wants this whole thing about i want to be in brazil do you really? or do you want an individuals name that you'll have a better understanding of >> 100%.
12:20 pm
>> i agree with you. >> every person at home doesn't need to be in emerging markets at all >> better in the old u.s. of a >> well, you don't need the risk, you don't need the complexity if you have the big cap stocks that are trading in multinational mega corporations with solid bass sheets and earnings you're going to get diversification. google would be a company that's trading around the world johnson & johnson is a company that trades around the world pepsi cola which a lot of people don't like right now and i continue to look it tends to be solids >> and how about an international here in the united states >> like avad da? >> yeah. i think there's plenty of names that you can get the exposure that you want. i'd rather be in individual names than being in the etf. i don't want to be dragged down. >> here's the real message from em, and that's what klein's
12:21 pm
doing. they're preparing for the trade war. the average emerging market currency that's corrected has been 32% i don't know are the chinese going to do that but that would be disastrous if they did it right? but clearly prepared for ail trade war with the banks and with debt and with the value of the yuan, even though they're saying they're not doing it. >> if i were an individual investor the way we're doing this for clients is three-fold you either do a structured note where you price in the volatility and use that for protection that's one way separate way to be a separately managed account where you have someone on the ground and picking winners and losers in the trades and the third is to deal with equity where you have is the discipline to stick isn't. you have someone investing on long-term trends there >> ally, thank you for joining us amazon impacting the markets pharmacy stocks understand
12:22 pm
pressure after amazon announced it will acquire the online company pillpack that hitting other distributors. and this news comes after amazon also announced its rollout of the last mile package delivery program of shipping stocks like fedex lower this hour. pete najarian, eyou read it, and you think, today might be my day to buy -- what >> i don't think today is the day. we had this news that whole foods was getting bought, obviously kroger and everybody else was getting sold out. kroger was down to 29, and back up to 20 again look at best buy, all of these names supposedly going to be put out of business by amazon. the answer, do you react the right way? walmart can be used as an example. not everybody is the carnage of everything good going on with
12:23 pm
amazon right now great opportunities but it's not immediate. i don't think you want to go in today and say this reaction with walgreens, i think you buy it today. i think you wait a while and then it's going to take time and many of those stocks getting hilt today have yum side >> yesterday, stephen weiss, mck -- >> i always give two-day lead time >> and you bought tell today >> i actually doubled my position on abc, amerisource bergen let's talk about both of it amerisource bergen, 28% owned by walgreens. so they have right of first refusal. i think they consolidate eventually if they don't, someone else will in terms of mckesson, mckesson, the number two person in the country. the present chairman has been chairman since 2002. i'm not sure they want to be
12:24 pm
there. i think both companies are particularly well positioned for an acquisition but that's not why i brought it up i don't buy companies. they're compellingly cheap they will do well. and i think in terms of value, i can see them outperforming more so than i can see the banks, frankly. i continue to like them. i will add mckesson, didn't add to it today but i will add >> you are like amazon is going to pounce in and grap all of the prescriptions. the thing to remember, prescriptions are stickier than normal if you have your prescription at a wall green or wherever you have it the likelihood of you actually transferring that is on the lower side >> and price is controlled, too. let's not forget that. >> and it's not often when somebody shows up in the morning that says i'm going to give you 10% off the stock that you've liked for a while. cvs coming down almost 10% today. we're seeing a pattern repeating when there's head line risk in
12:25 pm
the white house, you see the market tank. when you see a cyber security issue, whether target, a hacker, the stock tanks. and you're seeing the same thing with the pharmacies. there's an amazon effect if amazon goes to space like groceries like pete was saying, you get an opportunity to buy it >> what opportunity? >> cvs, walgreens not bad, too >> jim >> i think it's a very long runway from making this announcement regarding pillpack. and there actually be some traction in terms of their businesses being hit where i think there's a real risk is fedex and u.p.s. amazon is already delivering that's a much easier business than the byzantine rulings of drug description >> let's get to leslie picker with a news alert. >> that's right. the ongoing battle for fox's activist with disney
12:26 pm
and sir christopher hone which owns 7.4% of total shares outstanding. he is saying that comcast has what it takes to get regulatory approval for this deal this comes, of course, on the heels of the justice department saying yesterday that it would approve the tieup between disney and fox with some minor concessions on that. he lays out a variety of ways in which they would be able to receive regulatory approval, antitrust approval for this deal mainly coming on the heels of course ever the time warner/at&t deal which shows that vertical maneuvers are approvable it's important to note on that basis disney has the higher offer. comcast has not come back yet with a bid that would supersede that one so, we're still waiting on hat in the meantime, sir christopher
12:27 pm
hone has made a case of what he believed would be a superior offer. if they do make a superior offer it is approvable >> fox shares up 27% in just the past month got to take a break. here's what's coming up on "the halftime report. three big calls of the day straight ahead, a cut for facebook plus, wall street making moves as a top player in the software space and a big name until hardware plus with all of the success in the stock, maybe lebenthal should get a look at the knicks and rangers. msg is one of the big names in the blitz. and we want your trade, send your questions through twitter, #halftime we're back in two minutes.
12:28 pm
12:29 pm
12:30 pm
welcome back to "the halftime report. time for the "call of the day. cfra downgrading facebook to a hold rating saying that risks remain and the company's reputation has been damaged from the cambridge analytica scandal. shares are up more than 20%. michael farr, do you like it here >> i do like it here i don't understand why people are going to change the call on facebook like this look, facebook growing earnings like 20% a year for the next
12:31 pm
five years they're trading at 20 times earnings so you're buying, i think, at a reasonable level if they grow at even 15%, that means they're going to double earnings over the next five years, okay? that would take them down to ten times earnings i just don't understand. about two-thirds of world's online users, internet users, for facebook i think they've got a powerful model. they've got what, $44 billion in cash on the balance sheet. you get a stock it hasn't gone on sale enough for me today. i'd like to get it cheaper i don't think you bet against this company in the next few years. >> michael you're hearing more and more teens aren't using facebook it's become the soccer mom app does that worry you at all >> yeah it worries me a little bit, not much when they've got two-thirds of the world's internet users, online users already there, you go back to the amazon argument which is it's about the ownership of the customer's online experience
12:32 pm
and they have a lot of eyes and clicks all over the world today. >> sales force, in a moment, a bullish call calling the stock a top pick shares up 44%, weiss. >> it's a great country. it's got a phenomenal culture and a great ceo. this is one that had has such a lead on the rest of the market oracle was trying to catch up. hasn't been able to. that price target is going to go up again is my prediction. >> well, the margins, free cash flows. there's so many different things there anybody more aggressive than benny hopp. he's aggressive, i love that multiples always scare people but they are growing very fast in every different category with its revenues and earnings. next up, making a bullish
12:33 pm
down 5%. you own this one >> yeah, it's a very complicated situation. lemp let me try to limp sa fsimplify. and the ceo and her team either fix that margin problem or this is a super starboard of directeddirected directors that need to fix it. i'm not talking about cutting heads necessarily. you can consolidate campuses the analysts isn't talks much about this there's far more to upside than the downside >> don't the margins naturally improve strategic? >> they should everything should be historic. i say this as a guy that owns iechlts bm i say this was a man who owns ibm and everything should be story line i just wonder when does the
12:34 pm
patience run out >> yours >> not for the stock, but maybe -- who's the ceo >> he says she's bleeding. what happened to the stock >> the stock goes higher >> they bring in somebody with a success story, it goes higher. >> we'll let that hang there let's get to the trader "in the blitz" madison square garden. you sold that today? >> i told that today look, it's been a great company, up 70% in the year and a half when i owned it. when i bought it there's a 40% discount versus the value of the assets today, in my opinion, it trades right at the value of the assets possibly spinning off the knicks and rangers will take care of the taxes if they ever sold the teams they would have had to pay taxes. that is taken away now, what i've got is fair value for the knicks and rangers in madison square garden, all of which are pretty high value.
12:35 pm
does somebody pay more than the 3.6 billion that's "forbes" values the knicks for? i don't know >> and strong earnings, michael farr >> i think the earnings will rise i think the balance sheet strong they had to turn things around bed, bath and beyond falling today after a decline. >> that was the only thing that people focused on. you know what they're losing to the targets and tgxs of the world. chipotle after management told the investor call that they're planning on closing 65 underperforming restaurants. the way they answered questions specifically about what they could add to the new menu and what they think about international growth, people were not satisfied with how they answered or maybe more accurately did not answer those questions weiss. >> yes, let's keep in mind, this stock has had a huge move with
12:36 pm
the new ceo that came in >> 80% >> and now the reality,.answer is it's too soon to tell he just hasn't been there that long he was paid in advance in terms of stock price for what he was going to do. let's get a reset. it may go lower. it's so overvalued it was even overvalued at the bottom relative to restaurants it was trading like a high-tech and it's not >> the multiple year is what, 68 or -- >> it's crazy. >> so, we ask, if you're to look at various examples in the quick space, in the restaurant space, this is trading like a starbucks which could be perceived as a turnaround story mcdonald's also. shake shack is trading at a high but more growth well chart >> i think that's the biggest problem for the stock is absolutely where the valuation lies i do think it was a great hire they're going to work on the
12:37 pm
technology side of things. all of that is a positive. i think you're seeing days like today where you're down 8% mel i think people are focusing on where this valuation it's pretty high >> it's not like shake shack that's say niche that's carved out but this is extremely competitive. >> so when you say extremely competitive, year saying not just strictly what they sell which is sort of fresh mexican fare, i don't know how you want to characterize that, just anything you can buy for ten bucks? >> yeah, in the broad category but ka dqdoba and others poppin. >> what you get for chipotle it's not the same cuisine, it's the same space as primarily lunch people that want to get out in five minutes. >> if you can buy a starbucks -- to me, a more conservative had
12:38 pm
company like a starbucks i would own that >> and a show that we like to play on the 5:00 show, i'll bring it here to "the halftime report," starbucks or chipotle >> starbucks, easy the valuation -- you look at the fundamental story of starbucks right now, they're incomparable right now. >> i wouldn't own either >> ooh >> you don't understand the game >> longtime add juncjunct. >> now, it's 17 times multiple unless you think that brand is really broken, and i don't, by the way, that's an incredible price to get this brand. >> it's not that it's broken it's just i don't believe the growth is there. >> and in america.
12:39 pm
and even china for that matter >> that's the part that's the killer >> that short term i think is coming >> let's goat to the headlines with sue herera. hi, sue. here's what's happening at this hour, british prime minister theresa may is phasing a chiding on the brexit. she's do to give them an update. eu commissioner jeanne claus junker is worried about the progress say fire swept through nairobi's largest open air market rescue teams are searching for survivors and bodies so far, the caution the fire not immediately known. an israeli-american teen found guilty of making a string of bomb threats targeting jewish community centers in the u.s he has dual citizenship. he faces a possible sense of several years in jail. his sentencing date has not yet been set
12:40 pm
and the u.s. ambassador to the u.n. nikki haley visiting religious sites in new delhi hayley who was born to an american sikh family is discussing ways for cooperation between the two countries. and lessening independence on iranian oil. >> that's all. back to you. next up, pete, unusual activity the bullish options he's tracking and energy stock up 5% in the week. we've got the financials finally showing life for the week. the sector is down about 2%. "the halftime report" is back after this
12:41 pm
what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done.
12:42 pm
wi'm really grateful that usaaq. was able to take care of my family while i was overseas serving. it was my very first car accident. we were hit from behind. i called usaa and the first thing they asked was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too. we're the hayles and we're usaa members for life. see how much you could save with usaa by bundling your auto and home insurance. get a quote today. in these turbulent times, do you focus or plan for tomorrow? at kpmg, we believe success requires both. with our broad range of services and industry expertise, kpmg can help you anticipate tomorrow
12:43 pm
and deliver today. kpmg. welcome back to "the halftime report" devin energy's shares have soar. pete, what are you looking at. >> in devon, it's pretty interesting, mel, because somebody has right for quite some time now. they're originally buying the july 40s rolled out of those and put them into the october 42s and now today it's the january 50 strike calls. they took off to close to a double but these january, look
12:44 pm
at the size of these trades. 50,000 of these calls bought, mel. i haven't seen that in these time of names and it's a real dollar amount that they're paying this is something very big i had to get involved in this. i exposed energy names but i own these calls as well. i expect the stock to move to the upside it's already made a nice move like you said but i think it's going higher reiff got another one for you, cake cheesecake fact fore a similar trade where they're rolling once again out of october into january look at these, the january 60s about 5,000 of these calls bought as well so, i'm back in that as well i like what's going on in the stock. when you look at both charts, both of them look like they want to continue to the upside. i'm in these calls as well i'll be in both of these calls for at least the next couple of months >> thanks, pete. up next, nike set to report earnings in just a few hourses plus, coming up on top of
12:45 pm
the hour on power lunch with two new casinos and bettingcan new jersey make a comeback and president trump set the site at the fos x'$10 billion factory. you'll see it all on power lunch. mean time, "halftime report" is back after this. at the marine mammal center, the environment is everything.
12:46 pm
12:47 pm
we want to do our very best for each and every animal, and we want to operate a sustainable facility. and pg&e has been a partner helping us to achieve that. we've helped the marine mammal center go solar, install electric vehicle charging stations, and become more energy efficient. pg&e has allowed us to be the most sustainable organization we can be. any time you help a customer, it's a really good feeling. it's especially so when it's a customer that's doing such good and important work for the environment. together, we're building a better california.
12:48 pm
welcome back to "the halftime report. nike reporting earnings after the bell shares are up nearly 15% this year. what are you watching for? pete, i know a lot of people are looking for neshg deflection >> they reported neshg was weaker concerned about that, sold off stock and i think that was the opportunity. when you look at the opportunity, revenue, where's that coming from it's coming from international that outgained on the u.s. side yet, everybody wants to focus on north america. it's a buy at this point, obviously earnings are the real end. >> look, the quarter should be absolutely fine. the thing that you bring up with north america that has inflected the trade issues should not impact nike. world cup should be a positive stock trades at 17 times forward earnings for the stock for the
12:49 pm
history that's about 10% above where it trades. the next 10% move on this is the downside but for a long-term investor two, three years out it will be higher than today. >> i think you'll get better >> is it too high with international growth >> i think at 27 times it is obviously, this is an opinion, not a fact >> did he change his mind when asked? >> you never know. >> here's my issue i like it, you still see it as a dominance brand. but they lost their entire management team to the me too movement in my view, they didn't kick them out soon enough >> the stock hardly reacted to that >> there's got to be a list when you lose a whole layer of senior ye atment likth >>ou buy it? >> i buy it. >> next on "the halftime report." orrow. with ingenuity, orrow. technologies, and markets expertise we create the possible. and when you do that,
12:50 pm
you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. you'll only pay $4.95. 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.
12:51 pm
wlet's do it. ? ♪ come on. this summer, add a new member to the family. at the mercedes-benz summer event. lease the glc300 for $429 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. this endangered species is getting help from some unexpected friends. these zebra and antelope. they're wearing iot sensors, connected to the ibm cloud. when poachers enter the area, the animals run for it. which alerts rangers, who can track their motions and help stop them before any harm is done.
12:52 pm
it's a smart way to help increase the rhino population. and turn the poachers into the endangered species. ♪ ♪ welcome back this is futures now. we are watching gold sinking to a fresh six month low. precious metal now on track for its worst month in nearly two years. brian, are you stepping into buy this dip >> i think you have to be careful because when you took a look at this, people are mentioning trade wars. and what this means really is potentially china will need to counter act it by devaluing their currency and by doing that, that strengthens the dollar i think that is why we're starting to see it above the 95 level. and that is bad for gold because now as a safe haven instead of gold, they are using u.s. dollar as the safe haven.
12:53 pm
so that trend could continue if trade wars continue to escalate. i think we're at a very binary situation. gold is either headed a lot lower or a lot higher depending how this plays out and i think how china reacts >> trading just over 1250. what does the chart tell us? >> chart tells me that 1245 is the next level of support. i'm going to take the other side of brian's a little bit. i'm going to buy gold here they were short up until a couple weeks ago, now a long position i see the dollar failing at the 95 level >> all right coming up, we'll be joined by joe zidle, and he'll tell us why there should be a big bull run and plus helima kroft wicroft w here to make sense of the
12:54 pm
volatile week. 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 complicatew? 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 through your options trades step by step until you're comfortable. i could be up for that. 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 - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide.
12:55 pm
- she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.
12:56 pm
12:57 pm
the traders are answering your tweets first up, pete remember yesterday saw unusual activity in under armour. linda is tweeting, where is under armour going now that it is over 23, where are the calls. >> you know, i could see the stock easily getting towards 25. what stood out for me is not the unusual activity, but if you go back when we talked about the insider buying as well i like seeing that we always wait for those things where somebody commits to their company. but i think the stock is going to 25. >> next tweet from shane would asks given the recent selloff in intel, is it a buy at these levels jim, you own it. >> yeah, i do think it is a buy here the bad news seems to be priced in we know about the delay and the ceo. if anyone is negative on the
12:58 pm
stock, they have to think that the new ceo when he comes this is going to find a lot of things that were swept under the rug. but i don't think that is the case so at this valuation and with the bad news priced in, i think it is a buy. >> and one viewer is asking when invidia. >> it is very high multiple stock. i like it. it has tremendous technology >> it makes chips. >> it makes chips. >> this is going into "power lunch. >> intel is right near yields. at some point it comes back to ert earth, but now buy it. adidas says its website has been the victim of a data breach they became a wear that an unauthorized party now claims to have acquired limited data associated with certained adida
12:59 pm
customers. they are reaching out no thoto e customers. >> all right thanks time for the final trades. jim. >> there has been a number of biotechs that have beaten down and one that seems to start to rally is reagainer ron i like this name >> i don't know if the next move in mckesson is down another buck or two or up another buck or two, but i know in a month, three months, six months, it will be a lot hire you can't replicate their businesses just by buying a company for a billion dollars. should buy >> and fedex, there is all the trade war pressures, but the stock is down a bit. you got 2.5% dividend. i think you buy the stock.
1:00 pm
and it is 13 times earnings. i think you buy it i also like this marshfield opportunity fund >> hilton, it is on the lows >> thanks for joining us "power lunch" starts right now and welcome, everybody i'm tyler mathisen america first. president trump in wisconsin right now to break ground on foxconn's new $10 billion facility out there that in stark contrast to neighbor harley-davidson wisconsin company trying to navigate tariffs that had been sparked by the president's trade actions. amazon taking a big step into health care buying online pharmacy shares of walgreen's, rite aid and cv

59 Views

info Stream Only

Uploaded by TV Archive on