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tv   Fast Money Halftime Report  CNBC  July 29, 2019 12:00pm-1:00pm EDT

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of dollars for being the best. >> just to put it in perspective it's an opportunity for real estate developers building some stadiums stocks are mixed dow is up 70, s&p is down 4. we have a big week with lots of data, lots of earnings, and of course the fed >> that's right. get ready for that big hour is coming up. let's get to melissa and "the half." >> thank you, carl i'm melissa lee in for scott wapner trade talks, the fed rate decision, the jobs report, and the busiest week of earnings, it is noon, and this is "the halftime report. >> announcer: the fed getting ready to cut rates for the first time since the 2008 financial crisis will it be a green light for this record-breaking alley to keep going a big warning for boeing over the handling of the 737 max groundings the risks still facing the company, and airlines. apple leading the earnings avalanche. the stock up more than 30% this
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year can it keep rolling on "mad money's" jim cramer is with us for the hour "the halftime report" starts right now. >> it is great to have you with us on this monday. our investment committee today, joe terranova,ster know, and jon najarian and cnbc's jim cramer, host of "mad money." always great to have jim on the desk earnings economy and rate decision front and center and president trump firing off on the fed once again tweeting that the fed raised rates too early and too often and said a small cut isn't enough meanwhile janet yellen giving her thumbs up for a cut. >> although the u.s. is doing well, i would be focused on wanting to keep it doing well, to keep the expansion on track, and i think in light of the risks, i would be inclined to cut a bit. i wouldn't see this as the beginning unless things change, of a major easing cycle.
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>> cnbc's senior economics reporter steve liesman is here as well to give us his two cents and much more, i hope. it's a foregone conclusion in terms of what the fed will say afterwards, though that is not necessarily a foregone conclusion. >> right we were trying to be watching the guidance very carefully, and also the press conference. powell has a per wet to do here, which is to explain why he's cutting while the data doesn't necessarily 100% support it. now, you can make the argument, based on what's going on with trade around the world and make the argument based upon what's going on with the manufacturing side of the world, not necessarily based on, i think, what's going on with the u.s. economic data in and of itself, especially if you look at things like retail and jobs and some of the other indicators that are out there that are really not that bad >> inflation also obviously. >> that's the other argument >> it's the obvious one, the slam dunk. >> on the other hand it's 1.8% in the gdp you're looking for 2 the miss of 0.2, is that a
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reason to cut or a reason to stand pat? i will say there's a lot of disagreement on the street from all three buckets. i got people saying they should stay on hold, people saying 25, which is jpmorgan and morgan stanley at this late date looking for a 50 >> pirouette, what is the risk/reward an jerome powell doing a perfect pirouette, jim, from a market perspective? >> i think he could it it. the 25 is fine the industrials, stephanie and i were talking about during the break, they could do nick aikens is the ceo of electric power, the largest in the industry and the deceleration is stark, both consumer and industrial, with the exception of some areas of texas, and i think if the fed were to look at that level granularity, it would be so easy, because nick has been a guest forever and the expansion really tracked what he said or you could argue he tracked the expansion but electric use in this country is down, and it's not out of conservation. it's because of a real slowdown.
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i think it makes a lot of sense for powell to do 25. >> so the data is not necessarily shown us the real slowdown we're seeing in power consumption. >> precisely >> this is what china watchers used to point to >> they used to get the data, the only data that you would trust. >> this isn't china. we have real economic data i get what you're saying, jim, and i can't discount that electric data which is good data >> the largest power company in the country. gone you can't rig it >> i got employers hiring 220,000 and looking for 166. i had retail sales beyond -- >> the country has it. >> the country has it, right >> i would point out what yellen said is why can't we have an expansion. why can't the numbers go the other way. we could, steph, name 20 companies whose deceleration is rapid. >> particularly industrials and auto and markets at the end of the day, consumer is fine. it's the bulk of the economy, which is why the numbers still look pretty good, the top line
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numbers, gdp and all that, but manufacturing is really struggling just look -- >> tariffs >> tariffs, absolutely overall global growth is slowing. while i think the fed meeting this wednesday is very important, the china pmi data is equally as important to me to see if we'll see a stabilization. if that keeps on deteriorating, global growth is going to continue to deteriorate and that's not a good thing. earnings are equally as important but we have to get through the two events on wednesday. >> i still believe that, through 2020, the tensions with the chinese are going to remain in place. i don't think that's going anywhere that's staying with us with that said, manufacturing is going to have a headwind, going to remain in place so what you want from the 25 basis point, are you cap pi with capex? >> i'll take it. >> i would >> you want capex, and 13% growth, are you happy with that?
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>> you bet >> you want to focus on what are the companies going to do with what they're going to get from the federal reserve, and to me it comes down to capex, maybe m&a and buy-backs f those can increase with the numbers that i just presented, i think it's good for the market. >> that's good stuff >> to jim's point we heard it on the conference calls already of china, most of the mentions done in the negative light. that is going to be another data that jerome powell could weigh going into this situation or it isn't? >> i guess i am a little bit suspect and meant to be seen on this that a fed rate cut offsets the effects of a trade war ich' not sure that's the right answer other than there's two good reasons to cut, one is to meet market expectations because if you didn't you'd have the conditions that a market sell-off that causes a need to cut rates and the other is maybe
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you change the capx calculation. a little hard for a set of companies that just received an absolutely historic tax cut. that brought the statutory rate down from 35 po% to 21% to argue a quartert point rate cut is going to make the difference towards making an investment or not and i have a hard time believing that froms a'a psychological effect as well meeting market expectations and little downside risk to it because i don't see the incipient inflation, go ahead and do it. i'm not sure that's the answer >> you saw the capex expansion after the tax cut, correct >> actually it was before. >> aed hhead of it >> it was weird. two pieces of capex but go on. >> 100%, companies froze why? what did they see? tension witness the chinese. >> right but you're kind of making my point for me, right, which is
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how does the quarter point cut solve the problem of the trade war. >> relacks. >> maybe >> it goes to 325, puts the tariffs at 325 billion the market takes a big hit we need some back stop >> it is some back stop i agree but it's not a cure. i'd be much more pessimistic on stocks i think if you told me i had another 325 coming and i was going to get even 50 basis points of rate cuts. right? >> that 325 is going to impact the consumer >> right >> yes >> in a big way. >> you're already hearing rick polaris on this morning saying they this h to raise their prices some by 3% >> most of them they worked around >> they started raising prices a year and a half ago. they really did and they intensified. stanley black & decker, also same deal. the manufacturing companies i think were first to really start
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to put the price increases in place, because they were going to see it on margin. >> right >> that should help them going forward, and melissa, it's interesting on industrials in general, these stocks are actually the ones that disappointed, they're right back to where they were before earnings >> incredible. >> united rentals, caterpillar, itw. >> a fed cut >> it's a fed cut and you're seeing a trough here >> right >> you look at the dallas fed number it was all right st still negative but less bad. >> because of the pipelines. >> you have to pay attention to the way the stocks are also reacting and responding and earnings season always gives you chances and looks. >> they are going to, they already put themselves in a box and can't get out of the box because they said throughout their communications to us, not reading between the lines but directly, we're going to i have go you a cut it will be 25 basis points, i think we'd all agree and if they
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didn't it's a problem. >> what if they say one and done what is the reaction of the markets? there's tar ofis on $300 billion worth of goods, no deal on brexity which is causing the dollar to strengthen all of the unknowns out there. >> if they did that you would see a repeat of december we have to see, steve, multiple cuts but i think that's what the market's anticipating and if you just took that off the table, despite what yellen just said if you took that off the table, this would be december all over again. a huge mistake >> we need one independent how about the president, he fired the person he really needed oh, such a shame >> if i could weigh in on it quickly, i think the fed will give us the language that it has been giving us i think we are in the act as appropriate modality of fed policy right now and i think they'll continue that language and that could mean whatever the
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fed needs it to mean, and it could mean what the market wants it to mean in the sense if i think we need more rate cuts, i think the fed will do more rate cuts, act as appropriate, we will act as appropriate and work for that purpose >> what language will we hear about the balance sheet ending the runoff that was so important in the fall >> sunday night, some people watched "60 minutes. i read the fed reports for the next week. i was surprised to see a couple folks calling for the possibility that the fed may end the balance sheet reduction this week i logical cannot rule that out, i think that's possible. that's a bonus on top of what the market might be expecting. i think the idea of letting it run for two more months or cutting it off now is different from a financial point of view from a psychological point of view i think it will speak to a fed that gets it on all cylinders. >> get more bang for their buck if they're ending it this week
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>> there's research that says the idea we've heard this one, which is that act earlier but also the idea of surprising the market, that is something that has some backing for what the fed will do. >> steve, thank you. >> pleasure. >> steve liesman stephanie, going back to the industrials, you and jay were talking about industrials getting back to the levels where they were prior to reporting what looked like disappointing earnings at the time, united rental rentalals? >> for sure, up 20% at print they don't surprise or raise guide anze we thought they'd do so the stock fell 10%. it's a volatile high beta thing. if you want juice you want to own it and conservative you don't want this, but it's back to where it was because the underlying fundamentals were good the kneejerk reaction is silly you have to look at the fundamentals and i bought united rentals on that weakness because the quarter was just fine.
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really it was. emerson is your perfect example today. the trailing three-month orders, stock indicates it's halted, down 2%. now down 50. so to me that tells you that a lot of bad is priced into this particular part of the market. >> jay what are your thoughts on the general electric earnings this week? >> i know larry doesn't want to hear this but he doesn't have the horses, larry colt, ceo. he doesn't have the horses the the jpmorgan analysts are powerful and they may have a decent quarter, the ge company but again, aerospace will be good because it's not as levered to boeing as the others but we have the black hole of power, melissa and it's not been solved it hasn't been solved and i would like to see people like health care more everyone has decided he gave away the health care good part of health care to danaher.
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i thought he got a good price but we need to see the analysts who bash it, he doesn't have the horses i wish i could say otherwise >> what do you do on the cost cutting front? they underperformed for ten years ard doing to management team, ten years they haven't been able to rein in costs there's overhead and a lot he can play with on that side of the occasion maybe you need power to stabilize. >> what's amazing, power is going away from the great margin power into things like wind. >> right >> wind and solar, i don't think people realize we're not germany but we're moving aggressively toward wind and solar and there's not a lot of money in it for a company that specializes in power doubled down in power in retrospect ill advised >> aren't the industrials basically the proxy for this entire conversation surrounding the fed? you look at the performance of 3m after its results it pops a little, falls right back, caterpillar has done nothing. >> back to where it was. >> look at mohawk, what was that
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all about? >> performances tell you, joe, these guys see green chutes the bounce back. what do you see? >> the manufacturing component of the economy means something and that's why i think it's a worthwhile conversation that we're going to have with 25 basis points and a balance sheet runoff i don't see the industrial opportunity. i'm in honeywell and copart. i'm mining for industrial names all the time i can't. >> there's a scarcity. we know that >> i'd love to buy -- 3m >> it's so hard. this time he talked about the earnings the groundwater issue was addressed very well. i thought he did a good job. >> as always, there have been stocks that have continued with momentum after, and there have been stocks that ran into the earnings, facebook among them, 3m another, they run to the earnings, post up a nice
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premarket move and it's gone there are a bunch of software stocks today that are getting slapped, even though they have put up good numbers. >> yes >> mostly the sector has been very strong. >> the story of positioning this quarter it seems >> yes, and for whatever reason. the people running the large portfolios are hitting sell buttons on those as soon as they get that, even a stock that we'll talk about later, mylan. great news on several fronts stock popped as much as 27%, 28% in the pre, and then whack, they took it away like that if you weren't disciplined, and you didn't take your profits, this was not a fun ride. >> just quick, the most interesting color regarding business in china might come tomorrow night from tim cook on the apple conference call. the last couple of quarters he's talked about what's gone and told us when there is a headwind and tailwind tomorrow night he should be able to offer insight what's it like >> can we talk more apple after the break? i have some ideas. >> we have a lot
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we will definitely talk apple. today ceo michael o'leary weighs on the impact of the 737 grounding on his business and didn't mince words on the earnings call earlier today. >> we were originally facing 58 aircraft for the summer of 2020, that's now 30 at best. it may well move to 20 it could move to ten and it could well move to zero if boeing don't get their [ bleep ] together quickly with the regulators >> comes after southwest announced friday its plan to pull service from newark airport as the boeing jet remains grounded stephanie, you own boeing. >> um-hum. >> the focus mainly when the jet gets back in the air on the impact on customers and whether or not they'd be willing to take a flight is also an impact on the customers and their perception of boeing and whether or not they want to do business in the future, not necessarily for the orders they have in place but maybe the mid market
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airplane or the next one in the pipeline >> not a lot of options. a airbus is already producing to the max. they can't take on anymore airlines want a second source. this is down 20%, which reminds me of last year facebook when it was always in the news there was an article every day couldn't get out of its own way. >> boeing is still up. >> up 5% >> facebook was down >> my point is the news flow has got to stop. it doesn't have to look that good but i can't wake up every single day and expect the stock to go up when you have headlines like this. it's the faa, it's not boeing. it's the faa, they got it wrong so they have to make sure they're meticulous in this whole process and it's taking longer >> every day there's an article,
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over the weekend an article about the faa outsourcing parts of their inspection process to boeing itself, then there's an article about the smaller high growth areas in the world that are buying these jets, the biggest customers for the max and they're really feeling the pain and how that's an impact. every day there's something. >> when it happened with facebook then it stopped >> and they announced the huge pieback at 125 a share for facebook mel, i listened to mr. o'leary a lot. he's trying to play poker here and he doesn't have a good hand. even though he's got all that money to spend he's playing poker, mel, because right now he is a one aircraft fleet. he just flies boeing that's all they fly. full stop, end of story, you don't have airbus mechanics on staff, and so forth. so for you to say, for instance, i'm going to go with two aircraft here, not happening
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not happening, michael i don't believe you. i think you're bs'ing us, to use part of what he said i think he's bs'ing here trying to get the better deal out of boeing i've heard him talk about how people are going to be fine flying on boeing airplanes they're not going to care about this and he says all of that -- >> quite an irish accent >> i have an irish passport. >> i would pif doewife does, too >> does she? >> but she's irish >> my wife is irish, bridgity meghan mary mcgrath. so what's going on, he is trying to bluster and play poker and i get it, neither boeing nor i are buying into it you know you're only buying boeing because that's the mechanics you have >> you're right. i was going to day to unpack t you have the infrastructure in place to service boeing planes >> why does southwest only fly boeing same reason. he built his fleet based on what southwest id >> how do they control the news flow the british paper says someone
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who worked at boeing for 30 years say they cut every cost, did everything wrong i have to wonder, when muilenberg, the ceo will be able to say i've listened to every single critic. you can all come in here and watch everything, everything that we do >> that would be positive. >> the cfo taking care of it, doing a great job. just put a damned gopro on, for heaven's sake. they need to show us everything. feels like j&j they said we are not doing the right thing with talc and they investigated and said we are i have never seen a daily blast what an unsafe company is that is the safest company on earth >> so should there be an independent investigation -- >> fine, yes yes! >> hire somebody -- >> give me your tired judge, for heaven's sake. get me a federal retired judge i suggest that to facebook, too, but there's not enough to go around >> you're not worried that the customer will not step on the plane once it's back in service?
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>> america doesn't have as many maxes. they can go against southwest say we're not going to flow southwest. they'll all go on american that's why i asked gary kelly the ceo, it's my biggest fear someone will play politics which would be a shame >> if you're an owner of boeing you hold onto it and if you don't own it, would you buy it >> i wouldn't buy it i wouldn't buy it, because i really think that they haven't done a good enough job they really have not said in a transparent way, here's what we've had. here's the people we're firing here's the heads that have to roll here is the communications let's see all the emails let's see the emails between them and the faa >> they kind of can't. >> why not >> because of all the investigations going on >> there's lawsuits anyway >> as soon as this hit this negative news hit this terrible news hit, muilenberg went on the road >> too soon. >> maybe but at least he was proactive wanting to say what he could say but he couldn't say that much.
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>> i know they say the government's - >> his hands are tied. >> they say it but sometimes you have to go against your own words and say people think our hands are tied but people think our company is now an enterprise dedicated to lack of safety. this is a company that put the b-29, b-17 i was on a plane struck by lightning, boeing. we were going down pretty fast, and then a new set of lights come on. i went to the pilot after, he said boeing always makes no two-planes, there's one plane and the second plane, when the first plane goes bad they don't talk about that stuff. >> wow >> here we are thinking that boeing is basically someone that is skimping on safety? it's not true! >> it's their reputation and that's hard to get back. >> it's hard >> it will take time they have to do a lot of marketing and a lot of spend for sure they have to talk to their customers and really coddle them for sure and give them price concessions, to jon's point. i expect all of that but the stock is down 20%. it's lost $38 billion in market
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cap. still if you go back to that quarter max was the issue, every other piece of this company the results were better than expecteded they're doing all they can do. you get this one piece fixed which say big issue but they'll get this fixed >> april $3.5 billion offered, 5.5 billion offered today, once again oversubscribed >> i think there's a level you want to buy it and the level is when they're more transparent. i don't think they're transparent enough and i think they keep saying our hands are tied i don't like that. their hands aren't tied if their whole reputation is at stake untie your hands let the faa issue an injunction against them for telling the truth. they have to stop lawyering up jim our lawyer says the government says this your company's reputation is on the line take the chance the faa says i don't want you being transparent. is that going to happen?
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i think you're too transparent who is too transparent in 2019 >> the fed >> good one. much more an apple's earnings coming up. here is what else is coming up. >> jon is tracking the options market, seeing some unusual activity plus one of dr. j.'s pharma bets that's up big since he bought it we want to hear from you, jim cramer and the investment community are answering your questions in "ask halftime." you can reach us at cnbc.com/halftime, or tweet s @halftimereport un using #askhalftime "the halftime report" is back in two minutes. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better,
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switch to xfinity mobile and save hundreds of dollars a year. now that's simple, easy, awesome. get $100 back when you bring in an eligible phone. click, call, or visit a store today. welcome back i'm sue herrera. appearing with more than 60 first responders in the white house rose garden, president trump signed the 9/11 victims compensation funding bill into law. it extends funding for 9/11 victims and their families until the year 2092. >> today we come together as one nation to support our september 11th heroes, to care for their families and to renew our eternal vow never, ever forget new york's governor andrew cuomo signing a bill reducing penalties for possessing small amounts of marijuana
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it makes the violation similar to a traffic ticket, $50 for possessing less than an ounce, or a maximum of $200 for one to two ounces and a sweltering heat wave is gripping toronto and other regions of canada and likely to continue today city hall reached more than 100 degrees on sunday afternoon. it is hot all over the place that is the news update this hour melissa, back to you >> all right, sue, thank you sue. apple set to report earnings tomorrow after two straight quarters of declining revenue. investor also watch iphone sales number as well as growth in the expanding services category. joe, you're out. no more apple, you sold it why? >> because i rang the register, apple around 150, sold up around 190. josh brown made a great point on friday he's right you look at the mega cap growth technology names, we all own them if you are in a hedge fund which i am, i own them, they own apple, you're in mutual funds, you own apple.
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i got into amazon which you and i talked about friday, bought it at 19.29, not looking good today. out of the fangs, i'm okay with it there's other places in technology that you could be in 2019 and that's done well for me so far so when i look at apple, quality company, i'm sure it will do fine but i did what jim advises not to do, i traded it, successfully for the first time in a while >> hedge fund but i have to tell you, ubs did a piece, ubs evidence lab, we make jokes about that but we couldn't >> csi action. >> exactly what i think of sentiment with only 19% bullish on apple, down from 30%. it does feel like that apple is the fang that people aren't into at 16 1/2 times shares i don't like to run up ahead because that puts a lot of pressure on tim cook >> it goes back to positions we saw that in facebook's earnings in terms of the stock reaction afterwards.
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we call that in alphabet's earnings out of favor, going to earnings bam with a great report and the stock popped and is holding on to gains for the most part >> right the danger has been just as joe has said and josh, when you see this runup, as jim says, you get this pop in to earnings. can they justify it now then this is a break-out level basically, as soon as we got through the may 3rd high, which was 210.23 something like that, when we got through that today, there will be some folks piling in and you're seeing that now based on the upside activity that people are buying upside calls here, but i would say for traders, not for holders, but for traders, this is one of those that, given the run-up, you would probably want to take some off the table, as it pops >> well, but then you want to look at the details. >> true. >> iphone are going to be weak asp is probably going to be weak we know that this is the reason why it trades where it does. services is key.
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>> yep >> and the deceleration, it's not going to accelerate from last quarter we all have that modelled in but how much is does it decelerate and how much do they talk up the new services products that are coming, that have already been announced and we can remodel and see reacceleration into next year in services which carries double the margin. >> steph, katie upperty thinks it's going to accelerate tony says it's 12 or 16. i've been begging him to talk about life time value of this. if they talk about the service stream, because they have 98% customer satisfaction. if they put together, if luca, who is a good cfo, listen, guys, don't think about next quarter revenues build a long-term value revenue stream and we're going to like it, if we can get more health care launch. >> they already talked about the news plus. they talked about apple music, apple card all of these are services building that's the momentum. so i think they really need to talk it up so that people will
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say okay, this quarter services whatever it grew at, 15%, 14%, but that has a chance to aks accelera accelerate. >> how about 16? tock goes to 25. >> 18% this morning, so my goodness >> will we hear anything about the 5g phones and whether or not the 5g will be across iphones offered in 2020? that's minchi quo, noted apple analyst in south korea said all three phones will be launched in 2020, will be 5g capable which could drive a huge cycle, be competitive with lower cost android phones >> you have can i live through the valley don't trade. >> exactly >> i think individuals go through the valley >> it would be a september that's when they launch them >> and they can put a spin on the intel buy. they said listen, they're excited about the pad and it matters. intel is not a bunch of bozos. they're not. they worked a long time on this thing and did expect to win. there's no love loss --
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>> what do we hear about china >> you know, the notes i'm seeing are basically, this is here, iphone demand over macro will be not good that's why people say why it's not rallying as it should. i look at it and say look, even i say own it, don't trade it this is a rough one. they have to do 17% to 18% service to maintain this, and i think that is going to be hard but they got to tell this life time value still working on it. hey, guy to the talk about service. i hounded them on breakout of service. >> fabulous. maybe someday. sony shares have risen nearly 13% so far this year but bullish options traders benting the run can continue doc has activity >> we have upside buying and it's relatively short term we've got sony with upside calls throughout the morning, and they traded about 5,000 contracts, mel. so when you look at sony here, down ten cents on the day, and
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you see the move that these calls have made, about 5,000, half share elive constituenqueqt i'm in the october 57 calls. probably in those for several months and they've got earnings right around the corner here so they could have bought a shorter dated call but they wanted to buy it further out into the future. so that tells me that they anticipate the earnings call is part of the story. the rest of it is what sony's bringing out into the fall second one if i could, mel, take a look at what we've got going on in this one because pen national gaming up about 14 cents, this one is one that some of the smaller gaming companies have had a lot of love lately, whether it's el dorado and others, they make some announcements of acquisitions or whatever it might be penn upside call activity, buying the august 20 calls here. they have earnings i believe either tonight or tomorrow, very soon, and yet they're buying some that are further out in time so again, like this one, shorter
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hold, though probably about a week to ten days >> cal doing well. vichy is connected with the el dorado lots of good domestically. lots of good >> you have an update on the back of the mylan/pfizer deal. >> mylan the 24th last week we had big upside call buying in here they've bought, bought, bought, and you had to be disciplined. pete preaches that, mel, when he's on the five as well as this show, discipline dictates action, dda. this one you had to take profits because like i say, it popped 27% in the premarket it was through $24, look at where it is now, it's $21, still a nice windfall for you. you've got a $2.58 gain in the stock and the options are up over 100%, but if you were trading early in the session, you were taking a lot more off the table. >> i cannot believe pfizer is the one that's down. they off-loaded lyrica, this amazing drug going off patent,
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going to kill their earnings and suddenly it's off. no one cares lyrica can't drag it down. i think pfizer is -- mylan because it has a deal with pfizer so heather breast gets to buy more time? >> the quarter wasn't good at pfizer it wasn't good relative toment ment some of te other pharma companies johnson & johnson hands down you have to buy some things that have a little bit of hair on them >> hey, hey, hey >> sorry >> well that's why the uri, i get that >> a little bit. johnson has some hair on it but guess what >> that thing is -- >> $80 billion a year. >> 3m looks like it's a shaggy dog. >> health care was good. >> your dog looks like 3m. health care finally broke out. >> toss it all in there. >> love canal.
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>> we have to take a break this american teenager just won $3 million in the fortnite world cup over the weekend how can you play the big business of becaming we'll give you the edge. the s&p 500 sectors, real estate leading the way up 0.5%. consumer discretionary the bottom of the packow dn 1% "halftime report" is back right after this ... or its sign of intelligence? in crossing harsh terrain... or breaking new ground? this is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedes-benz summer event, going on now. lease the gla 250 suv for just $329 a month at the mercedes-benz summer event. mercedes-benz. the best or nothing.
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nlt with kohl pam . welcome back. i'm bob pisani the biggest amount ever won by a single player at an esports event with revenues projected to hit over $1 billion this year, how can investors take advantage of the group team seymour asset management todd rosen blum of cfra joins me the gaming space is blowing up in anticipation of the esports is going to be huge. is it? and is there a way to play that's using etfs? >> there's an investment case for it and a handful of products out there. espo is a vector etf that outperformed the broader market this year, up over 26%
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another product, gamer gamr which is underperforming you need to look at what's inside the portfolio you get companies that are clear plays on this, activision and blizzard and nvidia that exposure to esports and other segments >> that's the problem with the really tight niches here it's tough to get a real pure play what do you have you have electronic arts, act e activision, ten cent not a lot. >> ten cent is 30% of revenues seeing kager of 32%. they own 40% of epic games which is fortnite. depending how deep in the weeds you want to go on this, bob, i think you really do have etfs that can take it further >> gamr been around three or four years that's a broad one interesting about the three etfs out there, more than half of them are outside the united states a lot of obscure japanese
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companies if you really want to get in on the weeds on some of this, not a lot of people know a lot about. i against the question is, is there going to be enough to justify a real industry? >> that's the case you've got the newer product esports one, espo that has just 25, 26 holdings, so the gamer product has three times that there's a lot of differences inside the porter. vanek is more concentrated. >> we have to go, tim, but the big players electronic arts, the other big player, 17 is lagging. >> ea trading 25 times forward apex legends is their big new title coming out, a repeat, refresh and i think gaming is here esports are absolutely here and i think buying the long he were term players that aren't priced for gross anymore. >> thanks. tim and todd appreciate you joining us for more etf edge don't go away. the live online show starts at 1:00 p.m. eastern,
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etfedge.cnbc.com we'll be talking the pot etf proliferati proliferation, five investing with artificial intelligence and more >> thank you beyond meat is up 40% in the past month and hitting paypal and the record-breaking consumer staples sector in "the btzli." "halftime" returns in 30 seconds.
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time for trader blitz. steph you're watching pmg been >> this is a home run stock and i sold it way too soon they're seeing 4% to 5% organic growth the only problem is the multiple hard to pay 24 times for this. >> david taylor has done a remarkable job the momentum is extraordinary. it moved too much and it's moving again >> paypal downgraded to a sell at guggenheim. paypal calls >> i overstayed my welcome in this one, mel. it's been a great ride and wells and argus taking their targets up i thought that would be enough guggenheim slammed them today so
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it was 122 last week, it's 112 now. i think wait until below 110 and reload >> bank of america's brian moynihan they have competing products >> they do i don't care which one it is but i do think there is, i think square is a better buy than paypal >> beyond me shares lower after the earnings after the bell, the stock surged nearly 800% from its ipo. joe, i don't know. what do you make of this >> we talked about this back on july 19th and i said we've got to, i said don't sell, let's wait to hear for the earnings call this is an example of what jim is talking about, which is don't trade it, own it this is a social phenomena it's been traded by the hfts on a regular basis. the range is $30 you're not in there trading this name if you believe in it as outrageous as the fundamentals might seem, take a small position and stay with it.
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>> wow >> would you even take a small position in this up 800% from its ipo >> i can wait until tomorrow holy cow they're going to blitz it. i think i said something this morning, pure heresy for a lot of people. ethan the ceo is the tesla he's elon musk of food he's come up with a better delivery system and i went to the company last monday, ate dinner with him, oh my god, the sausage was great. the taco was great the burger was great you have tocaramelize the stuff. that's the key >> the problem with the stock is no one knows how to size it. you go out on the weekends, people aren't asking me about microsoft or honeywell they're asking me about beyond meat what do i do about beyond meat >> trade the options, mel. >> how expensive are the options? >> they are expensive. in june when the stock was 133, they were buying the 160 calls those were $13 in june, they were the january
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calls. that's how big the premiums are, but think about that, not only how big a windfall it was but think that you have only $13 to lose if you buy that call rather than that big -- so i think ethan is a brilliant guy >> you were with him at dun din doughnuts. >> with david hoffman from dinkdin dunkin' donuts as well >> who is next >> they'll make steak. i got to tell you. >> steak >> they're going to make steak >> i don't know. >> not impossible. impossible is impossible because it has gmos. >> all right, speaking of food, let's talk chipotle hitting an all-time high after goldman sachs initiated the company with a buy rating of $1,000 price target, the highest on the street adding it to the conviction buy list, it is our call of the day here remember last week the ceo of chipotle bad mouthed beyond meat say it's highly processed in order to drive with the principles of clean food, et
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cetera i don't know how can we get our head around the valuation for chipotle >> kate rogers with a fantastic report >> with all the ceos, done very well >> i think these are people who understand digitization. these are people who must have listened to mark benihoff. october 15th his trailblazer book comes out kevin johnson, 2% of the digital, these guys have gotten digitalization and why i like the goldman calls the guy who is least far along is niccol at chipotle big runway >> they also talked about this is one of the few sectors in the market that cannot be encroached by amazon. i thought that was interesting they got the benefits in terms of technology and digitization that jim was talking about, cost savings but not going to be displaced by amazon. >> well face it, mel, if they hadn't had a couple of missteps with the food along the way, yes. but i mean it's in some ways
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perhaps even similar to boeing they needed to get out in front of this better than they did at that time. to jim's point >> niccol joined, totally transparent. didn't bad mouth people. he said totally transparent. >> sure did. >> didn't bad mouth people, basically said we've got a brand new chipotle. >> the parallel that he had to go. >> nailed it. >> this industry is in the sweet spot the goldman note, very good, talks about the impact of low gas prices, talks about the wage effect. >> yes. >> talks about third party promotion. talks about the impact of uber eats talks about door dash and grub hub, how that's benefiting these companies. clearly chipotle is out of the prize. there's other names that are talked about, wing stop. >> which i love. >> i think that company does
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well the one question with the industry is, is it still recession proof? and i think that's where you kind of have to ask the question because if third party promotions are working at one point do the consumers not want to may more than the $5 or $6 to not get that delivery. >> this is the tug of war. we fought it because we want people to come in and drink but we had to see to it. we had to bring in caviar, which is square, we had to surrender millennials will not get off the coach, plying whatever video game, watching netflix, having a beer, i hate them. they're hatable. >> wow dennis mulenberg has to go and you hate millennials. >> dennis -- it's kind of like with trump and the emails, so to speak. >> let's talk in a year on boeing. >> a year is fine. >> we'll reconvene in a year, in
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the meantime -- >> that's the question our ask halftime segment is straight ahead i'm off to college. i'm worried about my parents' retirement. don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay?
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carol in florida wants to know if blackstone is still a hole. >> i own it, i'm holding it. i thought that quarter was
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fabulous they are poised to see revenues acceleration to 20% next year. margin opportunity management fees are going double digits great story. if it pulls back low 40s you add to it. >> got this one so right you're so right. >> thanks. >> adam in north carolina, this one's for you, jim, twilio, buy, sell or hold >> i do believe this company has the best technology, what's behind lyft and airbnb buy. >> you were mentioning software before. >> everybody in the software space, crowd strike, roku, everybody this morning, it was a very big rotation. so whoever it was that was pulling that trigger, had to be across several different big funds that were doing it they were liquidating a lot of those big holdings. >> opportunity, keysight
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technologies, guide wire, software, gwre, and then of course microsoft forever. >> interesting on wednesday when they're all reporting. >> blowout. >> the semis continue. >> final trades straight ahead this is the couple who wanted to get away who used expedia to book the vacation rental that led to the ride ♪ which took them to the place where they discovered that sometimes a little down time can lift you right up. ♪ flights, hotels, cars, activities, vacation rentals. expedia. everything you need to go.
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. welcome back jim cramer is here, has been here all hour.
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thanks for being here. >> thank you. >> what do you have for tonight? >> i have gold bugs. i am a gold bug. and then kevin conroy. he's done this great deal and boom, people hate it i think that's wrong it's hard to do the arbitrage. exact science. a lot of people use it this man has made it a juggernaut company. >> down 8% right now. >> people do not believe in this combination. i think the combination is terrific i think they make money. it's a little rich we'll talk it out. >> you're also kicking off the summer on the streets tomorrow, that should be fun. >> that stock has come to a level where it's no longer dangerous. way too inflated, not by chip, but by the market that just said, listen -- denim is a tougher category how about that quarter fantastic. >> perfect. >> beautiful.
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>> can't believe it wasn't up that big. >> i agree, it's a buy. >> final trade time, joe >> jp morgan full force, icbc. >> steph >> l 3 harris. >> qsr, like the restaurant brand. >> our thanks again to jim cramer we'll see you tonight at 6:00 on "mad money." the exchange begins right now. welcome, everybody, here's what's ahead today the busiest week of earnings, the trade meeting in china, the jobs report and what that could mean, this could be the most market moving fed decision in years. all of that in the next five days, and we're going to get you ready for the market's big week in minutes from now. fortnite proving video games aren't just fun anymore. real competition for your battle in your eyeballs and yes, your money. i want my kids to start playing. the winners an

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