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tv   Fast Money Halftime Report  CNBC  January 27, 2020 12:00pm-1:00pm EST

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we cannot wait to see this tonight. phil 10:00 p.m. eastern time. cnbc's original documentary, fugitive ceo, the carlos ghosn story reported by our phil lebeau. >> safe to say there is going to be a movie. tomorrow morning, 3m, lockheed, utx, and more. let's get to the judge and the half. appreciate it carl i'm scott wapner, front and center this hour the wos selloff for stocks in months the make it or break it moment for your money is under way. it is 12:00 noon and this is the "halftime report." >> the bizziest week in earnings, a fed decision, and the growing threat to a virus. what will investors do from here apple getting ready to report tomorrow will it save the day or add to the selloff? plus the stocks that are most exposed to the deadly virus spreading across china and around the world the commitment committee is ready to go. "halftime" report starts right now.
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welcome. good to have you with us on this monday a busy one it is our investment key, jojo, jenning herring ton, the ceo and portfolio manager, shannon shi coach as we will begin with the markets stocks are sharply lower today fears of the coronavirus and its spread spooking investors. shannon, you have a lot on the plate this week. fed meeting, busiest earnings yet kicks off. s&p stocks reporting s&p having its worst day since october. usual suspects in this sort of environment are the ones that are down starbucks, nike, casinos, airlines travel mcmoran. what are you looking to do >> we are looking at stocks that we already own that we could potentially buy here travel, cruise lines, airlines, historically all of those stocks
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have performed poorly when there has been an outbreak this nature the other thing we are looking a of the is industrials this week. we have notable tech stocks reporting earnings if you look at the industrials, though, we have seen a pause as far as this rotation from growth to value over the last couple of weeks. i think that that's going to persist and could potentially be compounded if we have disappointment in the industrial earnings this week i think number one there is opportunity that exists in the market as far as some of these names. number two i think we are looking for a little bit more support. my biggest concern with coronavirus is that we were really looking at china and the reacceleration from an economic perspective as being a catalyst for this first part of the year and justifying some of the gains we have seen in the equity market with that coming to the fore, i am more concerned about the sentiment impact on chinese growth rather than the virus itself. >> joe, i get it, right, the investment committee, if you will, is taking a look around, taking a look at your books. you are trying to see what looks attractive, what has maybe sold
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off too much the problem is when to know when to buy if you are thinking about doing that mike wilson, okay, over at morgan stanley says the correction has begun he says it will be contained to 5% or less because of liquidity. he says index prices appear to be ahead of the fundamentals that's been a question all along in this run up, is it matched ed fundamentals or not. >> the market found its reason to correct municipal bonds are higher investment grade is higher higher yield is rightfully lower, it should be because of energy prices. the equity market has found its reason but it has been building over the last couple of weeks we have been talking about it on the he show. one of the reasons why it was not about apple or microsoft or alphabet it was the weak performance of financials it was treasury yields that were rolling back towards 160 that's an uncomfortable level
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for financial institutions with everyone exposed to financials that could be leaving people in the position worry facing today. can we endure a further selloff that takes us down 5%? absolutely. >> let's not forget, it was a 200 point sell off. >> the things causing this aare temporary. i am not going to worry about the fed. >>r. we have earnings coming up from the big technology names what are those earnings going to look like? the street excepts them to be positive what's the price action response going to be? is it going to be like jp morgan, great earnings, price performance lousy? that might be the case that's going be the tell you how deep the correction is. >> that's right. because, jenny, you have got
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according to jp morgan, significant growth optimisms already priced into equities. >> right. >> that means there is little risk -- i mean there is more risk now that a less than exceptional outlook from these companies now reporting -- we have a boatload of them this week that really matter. it could be a huge disappointment. >> this is where i go when we are in a time of potential panic or something to actually finally panic about, this is when i look at the companies and what exactly i own. it is a wonderful way to ground yourself i went through the portfolio and i have got 36 companies in my dividend portfolio six of them i think may have risk to slowing china growth or a problem out in china or a coronavirus. there might be risk to six of them that means 30 companies in my portfolio have like no impact whatsoever because of this that's a nice way to give yourself a pause, take a step back, think about earnings, think about the fact that these earnings are based on 4q numbers
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and that that's probably going to be positive and as 30 of the companies report it is very unlikely that coronavirus or china gdp is going to be mentioned in their earnings report. i think the vast majority of the companies broadly are not going to be addressing this in their earnings and i think we will get the chance to step back, move on and lock at the bigger picture. >> one of the worries, jim was that if you thought the market was ahead of itself, there are people who thought the market was overpraut bought, all you needed was a little match to light something, and you could have this first correction in a while. now, maybe it is corona krirs. okay that's what it appears to be today. do not discount, though, i think bernie sanders rising in the polls in these early states. it becomes a cocktail of things that could potentially be upsetting for investors. coronavirus means you have a tipover. now you are worried about bernie and you have reason to sell and wait am i wrong >> you are right i think the question that comes from that is how long to wait.
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i mean, scott, i was trimming over the last couple of weeks. not raising gobs of cash but 10% cash pile. i am not rushing into the market everything you are saying -- you left out rockets fired in iraq at our compound there. everything you are saying is sort of creating a brew here i can't use the word correction. we are 2.5% off the high if we go down 5% that's the normal noise of any given month. >> let's say we are down two-something now. you go down four who is going to have the conviction to step in at that moment because you are thinking then what if we are down six, what if we are down eight, what if it goes down ten? >> you and all of us here are in touch with a lot of investors. most of us have been waiting for this most of us have been saying we are trimming, we think it is a little bit overbought. we used that spark that we needed the bring it down but that is an opportunity for us to actually put money to work
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i can name names, disney, they are closing disney shanghai. that will affect first quarter earnings but not their long term plan, movies, or des me plus starbucks -- all of their earnings will be affected. frankly all of the earning will be affected for the first quarter of this i don't remember what we have seen in the past, things like sars, ebola, swine flu, they pass relatively quickly. it is highly unlikely this passes through the second quarter. that makes it a buying opportunity. >> i am going to call you when it is down 4% on the s&p and say okay you had your list that you were looking at. are you ready to buy those i don't mean you, i mean everybody who is saying i am waiting for an opportunity to buy. >> i don't think you can wait too long i like the fact that you do call me when i say i am going to buy something and it reaches a target and on air you said jimmy you said you were going to buy
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it are you going to buy it. i am not looking at the s&p doing down more than 5%. >> because of what mike wilson says, because there is too much liquidity ready to find a home. >> exactly. >> you laid out the negative forces but you have an accommodating fed easing trade tensions and a president who knows not to mess with the trade tension bee hive not right now in the election cycle. >> if you get a miss of 17% in the s&p, which are the big mega technology names that being said i think we are still okay instead of correction, how about row take, how about looking for opportunities in places like health care, where we previously weren't looking? how about in financials which i mentioned have been awful at the top of the show. how about looking a of the the exchanges or some of the insurance companies to find opportunity moving away from the big money centered banks i like to use the word rotation before we use correction i think that's the right word.
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>> did we look at tomorrow as the most important day of this very young year because of what happens after the bell, maybe around 4:30 or 5:00 with apple reporting its numbers, given what that stock means to the market, what it means to all those who are watching, what the stock has done over the last year, and now how much is riding on it with a much higher bar going into that number >> scott, i don't think so i don't think it is make or break for the market look, this is a second half of the year story because of 5g it is that simple. you will get some i-phones sales reported for the quarter, the holiday season when they report next time. you will see what the margins are and what percentage of sales are in services. that will all be good. but everybody is looking to the second half of this year i don't think apple can really make or break itself and thus the market tomorrow. >> i feel like the question is is apple going to save the day or be the break that, you know, the bulls don't want the see >> i actually think i would have been more concerned if we had not had this couple day pullback here that we are getting on the coronavirus concerns for apple
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because i think there would have been a lot of expectation that given what apple has done already this year there might have been people really looking at this as an opportunity to trim if the earnings are just good enough. so i am a bit less concerned than i was a few days ago that apple will release fairly good results and that well still see a strong selloff similar to what joe was talking about with jp morgan i am a bit less concerned about that. but i do think it is going to be a clear sign to the market if this can continue to be a stock that's going to continue to ride high to your point, people love to own apple. the sentiment has drastically shifted over the last six months. >> i want to come back to you? >> go ahead. >> you the me why you think the market can withstand a disapointing earnings report from apple i don't think it can. >> i must have misspoken i did not mean to say it can withstand a disapointing earnings report from apple tomorrow what i mean to say is looking at
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apple, and its results which i think are going to be in line, i don't think that moves the market higher because i think everybody looking at this is saying whether it is 300, 310 or 320 n that range, as long as it stays there it is going to be fine looking for growth from apple, it has to come from 5 g in the second half of this year. >> i don't think the market can go forward if apple doesn't give a got outlook. >> i want to respond. >> go ahead. >> to me, apple is not a bellwether for the s&p 500 i don't think they will either but they could have horrible numbers and that would have no impact on the portfolio i manage or people who manage portfolios like mine will have. yes it has a huge weighting in the s&p. it could pull the s&p back a little bit but let's say it has terrible numbers that's not as broad based just
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because of its weight in the s&p 500. >> i have to politely disagree i think there are a lot of dividend investors who are psyched to own apple in a dividend portfolio i fell like this is broad ownership. they are people pointing to 5g from a growth perspective to want to own the stock. they are looking at the amount of capital that's returned to shareholders to want to own the stock as parameters for their strategy i will be at managers, portfolio managers in my world i think that many of them sort of construct a portfolio that they can almost always buy apple at this type of valuation. i do think it is going to be very difficult for the market to have some enthusiasm going through the back of this week. and it is going to point to some of the concerns that joe has about tech stocks if we got a disappointing report tomorrow. >> i mentioned this three months ago. february was the most concerning point to he moo. what is the catalyst, after the s&p companies report, what's the catalyst for the month of february is there going to be phase two
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of a trade deal? are there going to be earnings are companies going to be buying back stock given where their valuations are it means temper your expectations >> how can you temper your expectations when expectations have been ratcheted up every single day facebook today, price target to 250. apple to 300 netflix to 350 alphabet to 1650 and on and on and on those aren't tempered expectations. >> the position is already in place. they are catching up to positions. i am worried about the money flow the money has already led to with the 11% rise we have seen in the last three months for the fact >> we are buying into the dip mentality. we are the coronavirus, bernie sanders, they are really risks but they are not real risks that will knock the market down 10% or worse. >> why are we talking about 10% down or more >> because the word correction has been used many times on this
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show and the technical definition is down 10% the important point and i am going to slam this home, we are in a buy the dip mentality right now. >> i totally agree >> i still own apple now it doesn't matter as much. i am not going into tomorrow's report biting my nails but i have cash and i am ready to go i know what i want to buy. steve weiss has been talking about qualcomm another dividend play. i think you own it jepy. >> thank you. >> it is down to 80, the target is at 87, i am back in. >> i want to talk with everybody about what they want to buy. >> qualcomm, disney. northrup grumman let me see their report. >> so -- oh, we are not going. >> disney is 136, trading lousy. >> okay. >> not much of a price difference than where it was four and a half years ago, summer of 2015 >> well, what looks good to you? if it is at 136 now?
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>> i think now, but i think the coronavirus gives it one more down indicate. >> a few percent more? >> one or two percent. it is not a bad place to buy right now. i don't think you load the boat here i mean the disney shanghai news is the reason it is off. they are in the cross hairs of the coronavirus. the thing will pass, like sars did, just like ebola did when you have disney plus, that is the driver for this stock i have got -- >> weiss wants me in this so badly. >> what number will you get in at. >> 182 hold my feet to the fire. >> it is on the record >> you are the record keeper court. let's go to the stenographer, what does the tape say. >> jen. >> royal caribbean is down 10% on this pullback
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i could see us wanting -- i think it goes down another 5% over the next couple of days rcl is down six right now. >> i think we could get a 15% correction on this stock bythe end of the week. put it in perspective. 9% of their customers are from china. so you know, if you like the space, which we do, you know, maybe 15% off, that's probably a good buying level. >> joe. >> we have a lot of names. i think what bill miller said about his letter about the fourth quarter where he sat there and did nothing and that was the best position and i look at my portfolio and for the better part of the last couple of months have been sitting with it and holding i it is time to rotate it, time to shake it up and look at other places bond proxies are going to be coming back. peek, which is a health care wreath i think that's a place of opportunity. in financials i want to look continually at private equity. i like apo, apollo management. i like the insurers.
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i like allstate. i like progressive the asset managers are coming back t. roe price or raymond james. in technology, twillio, emerging software, mid cap type name. i think small caps and mid caps are coming back again. the consumer is going to win from this environment of lower rates. look at the way housing is trading. lennar, pute, all trading well i want exposure to that consumer, whether it is shi boat lay. >> larry mcdonald is pointing out for us on twitter the xlp is higher on the day. >> i think jim did a great job this morning talking about consumer staples clorox, yes, that works. but there is more to it. how about coca-cola? how about pepsi? i got into monster beverage. in the consumers staples space that works walmart, in the consumer staples
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space, i got out of that i am looking to get back into that again. >> bonds at 1.6% i don't see that going down. you get past the virus, the bond proxies are going to perform. >> were bonds falling before the coronavirus? >> they were. >> yes, they were. but that dip was because the bonds have been oversold yields had gone pretty high. i think most of the yield decline is because of the coronavirus and the implication -- which is true it is happening in the loun ar new year, a major spending holiday, major treeing holiday in china second largest economy in the world. global gdp will be affected by this, but emporarily and rates will go up and the bond proxies, i don't think they perform then. >> jenny. >> one thing yields being meaningfully higher must be in the eye of the
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holder >> 145 to 185. it is packual. >> still low we are doing a lot of what shannon is doing we are looking at carnival cruiseline which was at a 410 yield a week ago now it is at 440 yield we also own las vegas sands. we are not increasing our position because it is a full size er with looking at financials. we have focused on regional banks and have seen attractive prices there it was interesting on friday, zero exposure to coronavirus and china, stocks are down 3 and change percent i have a buying opportunity and cash bushing a hole in my picture. suspect by the end of the week that may be be an area where i step into. there has been shakeout over nothing specific. >> there are still some great opportunities in, had. if you look at anthem, if you look at abbott whether it is diagnostics, whether it is the expansion of
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care there are health care companies that are going to be sold off meaningfully, we are not seeing the rotation to these names that we should be saying because it is a risk off move because of the election. those opportunities might come faster in names like those two i just mentioned >> do we think that tech is the most at risk right now mega cap growth -- like mega cap tech, the ones i read off to you earlier, apple, alphabet, amazon, facebook, netflix. you can pick a couple of and throw them in the pot. are those at the most tactical miss which is near term oriented. i would not call it longer term risk texas -- i mean even if it is shorter term, longer term, whatever term. >> i think the high p/e guys have the most risk netflix might and facebook might not. i think that's where the most risk is.
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>> a technology name i got stopped out of was texas instruments. i used the term rotation home depot to me and lowe's both work spring is coming >> mega tech stocks, apple matters more than many other names. and their delivery tomorrow after the bell to how these things perform don't you think that am i the only one? i mean appel is going to report -- >> i think -- >> here's the thing. i think the risk there is you run out of buyers. who doesn't own it at this point in time. but the offset to that is the fact that the etfs own so much of it. anyone who wants to come in the market and is using etfs to express risk on when that comes one or two days from you no. is already buying 4.5% of apple in the spyders >> the best thing that happened for apple investors, it is up
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over 100% over one we are and it is also the worst thing. >> if you think it is going down 20 or 30%. >> i am saying it raises the pressure and the bar more so than it otherwise would be going into tomorrow afternoon. >> i understand what you are saying. >> do you disagree >> no, let me say this to you. last week i did an analysis on what they should earn, and i came up with a fair value of $294 i still own some but i trimmed some at 315. that all makes sense here's the point 310 to 294 it is not horrible for the market >> does it decline the other nams i mentioned likely to decline with it. >> amazon sputtered all of 2019 while apple went through the of radio. we have seen disconnects within the fang. >> amazon is one of our higher conviction names because it is trading differently. i think scott to your point inthe biggest concern right now
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that i have is that the folks in technology names right now are looking to go now. if we are talking about truly buying the dip we need to have money coming that's not necessarily invested in the s&p 500 right now. that needs to come from cash and bonds. we are not seeing that rotation. i think if we do get selloff on some of the technology names are the same buyers going to come in from outside i am not sure. i think it will statue row take over the next weeks. >> maybe the fed mid week is going to save the day by doing nothing except being as dovish as they have been and you have the liquidity of the fed as the backdrop and the reason why the tepers of the world and those are cited despite all this stuff it is a simplified game and that the help is there. >> it would help knowing in a the liquidity is there i disagree with scott. apple is rerated it is trading just like proctor
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and gamble we talked about it on friday it is trading 25, 26 times i could easily experience multiple contraction down to 22, 23, very easy n. a heartbeat that will impact the market on a tactical short-term basis. >> i mean we want to go back and forth, he said, she said i mean, you know, it feels like is it rabbit season or duck season in this conversation. >> are you watching too much bugs bunny >> let me remind you, we have neither in nassau county in long island. >> the you are repping the 846 i am repping the 845. >> here's what else is coming up on the "halftime report," looney tunes. >> maritime shares falling 20% since the start of 2020. one firm thinks now is the time get in the investment committee debates it in our call of the day. plus, the materials trade. the big themes and expect alatis
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all right. we are back. let's talk marathon oil. shares are under pressure by a couple of percentage points. sixth straight negative session. yikes. don't worry. the recent weak seasons a buying opportunity bass they upgraded it today to a buy. $17 is the price target. that's a big move from here.
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thusway made it our call of the day. jimmy, i turn to you first you own marathon petroleum. >> yep. >> not marathon oil. into right. >> tell me why. >> thanks for bringing this up it is a distinction between a high beta oil play and a low beta oil play. marathon oil has a 1% dividend yield and trades at a multiple of 20 times. this in an energy sector which has been sputtering. if you want to own marathon oil, higher batha to oil you need the see oil prices or the rig count going up neither of which is happening. why bet on that when you can get a 4.3% dividend yield buying back shares, trades at nine times earnings it is an easier way to play the wait, the long wait for the energy sector to perform which it hasn't and which has been painful to me. >> shannon has petroleum, not oil. schwannon and jepy have
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significant exposure duke energy, enterprise, energy transfer, kendra morgan, 1-0 and more okay >> it sounds worse than it is. those are three strategies mushed into one list i actually like this call. i don't own marathon and it doesn't fit the exact profile of what i am looking for. what i like about this call from stifel is that it reminds of us the ability and the strength of the u.s. energy business, right, and that we are -- and there is a lot of independence here i look at this and i read the note and it is talking about their strength in the bach and the eagleford and a lot of the companies that you listed are the infrom structure companies they are taking energy out of those basins and transferring it to the refiners and it is in our cars and we are driving around. >> you don't care about the price of oil. >> i care less about the price
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of oil but as long as it is consistently above 50 there is a lot of money to be made in the marathons and the producers as well as the mid stream space i read this and i was happy because it emphasized my thesis, which is it is a strong and stable business. for me the mid streams group is the right place to be. which sounds like the sentiment that you have got, the right place to be. i like the call. i appreciated. if i wanted to be more aggressive it is the right call for me but it is not. >> shannon. >> we have a number of energy holding. they are small waiting for us. we think the 2022 to 2025 range we could see less supply coming on line which could create an opportunity. we like names that are somewhat more insulated our highest conviction name in the energy space is valero we also like chevron we think there are opportunities to own some energy names in smaller percent ans. i think there is going to
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overall be a cap on the price of oil. i would limit your exposure to natural gas through the end of the year european prices continue to fall and we are not nearly as optimistic about that portion of the energy market. >> these stocks joe have stunk i am looking a of the the returns over a year. there is no other way to say it right. >> uh-huh. >> everything is ugly. >> et cetera impacting high kbreeld refirst and foremost i am with jenny. i have one oak marathon, capital efficiency when you are speaking that language in the energy space shareholders will pay attention. they did so in the case of chevron. that's one of the reasons why chevron has the ownership that it does. but a company that is ahead of where marathon wants to be is apache, apa. take a look at that. but you need to gemmy's point a recovery in oil provides and natural gas prices. >> okay. let's go to sue herera for the headlines? hello scott, hello everyone. here's what is happening at this hour fog and visibility were so bad
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that los angeles police and the county sheriff's department had grounded their helicopters right around the time the chopper carrying kobe bryant, his teenage daughter, and seven others crashed weather is expected to be a primary focus as the ntsb begins its investigation. senators myth romney and susan collins say revelations made by security adviser john bolton strengthens the argument for wbs in president trump's impeachment trial. they are haven'ted to vote on the measure. state attorneys general will meet with -- to merge their probes into google. at&t is spending money to upgrade cell phone service at hard rock stadium which will host the super bowl on sunday. the company says it has added 300% more capacity it should be a fantastic game. that's the news update this
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hour scott back to you. >> sure hope so. sue, thank. more trades coming up. s&psector check before the break. we are down across the board s&p down 38 points, more than 1% staples are the best of the worst. we are back after this i love the new myww program, because it's tailored to you! ...take the personal assessment and get matched with a proven weight loss plan. find out which customized plan can make losing weight easier for you! myww join for less than a $1 a day.
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welcome back materials stocks among the biggest losers in today's selloff. and the sector has been a dud over the past year can it become a leader again dom chu is at our big shiny wall to take a look at that >> i was listening spently to your huge conversation about the energy complex just this last five or ten minutes or so. energy the worst performing sector in the s&p. materials, the second worst performer though it is in positive territory in the 12-4 month span over the last year, 2% gains for the s&p. half that for the s&p 500 materials sector now let's look at some of the underperformers. it gives you an idea that this cyclical economically sensitive sector is one that can be subject to the whims of the global economy let's start with the best 12 month performers martin marietta and sherwin
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williams building products, home improvement, bulk materials and home improvement products. all at market beating performances maybe that continues air products and ball, ball makes glass containers, up there as well. lets look at the underperformers. you will see cyclicality play out there. mosaic fertilizers dupont, new corps steel, international paper, eastman kodak. concern about pulp and paper prices for corrugated cardboard leading to those declines. scott, you wonder whether those building materials trades carry through positively if there is any fiscal stimulus with regard to spending. >> joe, take a stab at this, either from the winners or the losers you used to talk about sherwin williams, not to be confused with sherman williams which you called it one time let's talk about sherwin williams. >> nice of you to remind me
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scott. >> but get it right. >> i will say a lot of this depends on a turnaround in manufacturing. that is so important getting the materials sector moving once again. >> who is banking on that? wide shot. raise your hand. >> exactly >> you are >> yeah, i mean i am taking that as the cap ex pick up i have been calling for since this phase one deal was signed. >> you agree with joe. continue then. >> my exposure is basically the gdx. i just have gold the purpose of gold is -- >> the make money in the last year it has been to make money. >> it has been a hedge in the portfolio. but i can't find the fundamental reasoning to get excited about the material names i can't. >> right it is on a stock by stock basis. when i am looking at dom's list i think he has international paper up there which is a dog but last summer i bought west rock, also a paper producer and it has been a fantastic holding and fantastic return because it was researched at the right time for the right reason it is down a little bit right
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now. but it holds a place in my portfolio. i added dow last year. incredibly cheap, strong dividend on the list of what i am looking to buy right now. i am not done with the research but i carted looking at cc last week it is interesting and compelling from a financial perspective $3 of earnings and a $2 dividend so it is compelling it is down so much. i haven't finished the process. >> i hate to stop you but i want to get to this one, freeport it is getting crushed today? we own it. we are up 30 or 40% off of when we bought it so with a lot of these materials stocks it is about buying them at the right time and holding them for the right reason. beingdown 8% doesn't chang our investment thesis. maybe we add a little bit if we have cash and that's the right thing at that point in time. but it is a blip in the overall holding period. >> the kroepa virus is spreading, so are the risks for
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a number of stocks with exposure to china down grades for both wynn and estai laweder today. we will go around the desk and talk about those plus o sckneto soaring on the virus threat we will tell you what that is straight ahead on the "halftime report." ♪ ♪
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comcast business. beyond fast. welcome back to the "halftime report" i am meg tirrell with a market flash on vir biotechnology. they are looking into whether they can develop a potential coronavirus drug the ceo making the statement we are using our technologies to determine whether we currently have or can identify technologies to neutralize this virus. we don't know if we will be successful but we are working to find out et cetera now up 25%
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it is a $2.5 billion market cap company. scott. >> watching everything with perceived exposure one way or the another. thank you. that's meg tirrell covering that stock. we mentioned stocks down today estee lauder is one of them. downgraded today at oppenheimer. also off of their top picks list talking about the krin affecting their travel related sector. >> if you like the company for the fundamentals and you have looked at it and you anticipate that you are looking to trade in and out of the stock over the next couple of months then i could see the downgrade here i think longer term you are not going to see a meaningful impact in that the acceleration of potential earnings in this particular stock is going to continue despite the fact that there might be near term disruption in the name. >> can you step in to.a wynner an lvs today. wouldn't step in on a casino. >> another one that got
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downgrade of the at b of a coronavirus the headline for the reason why. >> we own sands. we bought it in june of last year on expectations of acceleration in the chinese economy as well as a shift from vip gaming into retail gaming. i think that that second piece, i do think that the reacceleration of the chinese economy is going to happen i think the second piece is probably what's at risk in the near term. if you are not in a full position and you are interested in looking at adding to gaming stogs i don't know this is the day. but to your point, over the next couple of weeks there is a opportunity if you want a toe hold in macau that you could be doing it here. >> what are we looking at? >> in term of the krins. yeah. >> one thing i am in is gm it has been a value trap call it what it is the reason it is down in 2019, china's auto sales fell off a cliff. gm sold as many cars in china as it did had the u.s so china matters
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if you see people sequestered or quarantined in china that could hurt their sales that's why it is down today. but as i have been saying the coronavirus will pass. >> it is a dog i am getting tired of it i am getting tired of it i am not selling it today but i think the price is the low to sell it. hopefully i am hot going to hang myself with that line in a a couple of weeks. >> nike is trading well, nike is a name you could buy here. less inclined to buy a star buck i think you are looking a of the the airlines they are receiving a benefit from lower oil pricing, the consumer is still strong take a look at the airlines here. >> "ask halftime," it is up jeks questions coming in on mastercard, pfizer, six flags. and send yours as well first brian sullivan has a look at what's coming up on the exchange. >> all right off the lows but we are still down about 360 on the dow. we will have more on the market
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selloff and maybe nervous investors maybe were already looking for a reason to take some profits plus, is the united states really prepared for any kind of an outbreak here former health and human services secretary under president george w. bush michael leavity will join us on that live. and we will tell you just how important china is toll oil trade and what might happen next will why history is not your guide. that's coming up on the exchange more scott and the gang at "halftime" right after this. that's room for possibility. ♪ gimme two minutes. eligible for medicare. and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza... [mmm pizza...] is your part b medical expenses. this much - about 80 percent... medicare will pay for. what's left... this slice here... well...
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all right, let's answer some of your questions now. shannon gets the first one from ralph today in san diego, california your thoughts on pfizer are what >> i think this is probably a hold here if you already own it. i wouldn't buy it here if you're looking at health care i would say as much as i like health care, i think early on big pharma, i would look elsewhere or into businesses that are more diversified than just pharma. >> is the worst over for six flags and can they sustain their current dividend yield that's a good question. >> those are two super different questions. a couple weeks ago they preannounced i spoke to the company a couple times since. mike spanos will be on the earnings call scheduled for february 20th. i think there's a reasonable chance they cut the dividend they're only earning about $3 a
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share. if they do, they might cut it in half and beyond that and why the worse may be over and you want to own it, they have $3 share earnings and $3 cash flow and it's pretty cheap. there's a lot of free capital potential. >> you have spoken to thep km and you think they might cut the dividend >> they will not say so it's me purely doing my math on that. >> even if they cut the k dividend, the stock wouldn't go down >> see, it went down a tremendous amount when they preannounced a couple weeks ago and preannouncement did not justify moving the share price so i think it was people fully anticipating a cut in the dividend the so i think the cut in the dividend if it comes is paid for or maybe they keep it and use cash flow to keep it up in the future. >> and another question, i brought greenbriar it fell 5% in no time at all is this something you're still high on or should i get out?
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>> yes, hang on. this coronavirus obfuscated what's going on with cap x and cargo loading and manufacturing has everywhere in the world started to tick up and the u.s. is about to follow w that rare call holdings go up and revenues from greenbriar. stick with it. >> i have a holding in mastercard since its ipo that's back in '06 should i continue to hold it or sell >> i should have asked alan the question in '06. i don't think we have enough time but some day i will tell you my vonage story about how quickly the got out of mastercard it's a card process duopoly between mastercard and visa. earnings will be strong. if you don't get a favorable situation, don't panic you will be fine final trades are straight ahead and you n wacaalys listen or watch live on the go on the cnbc app
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depend, do not miss our cnbc original "fugitive ceo: the carlos ghosn story" tonight at 10:00 p.m. eastern you will hear from carlos ghosn himself, including new details of his escape. looks incredible cannot wait until 10:00 p.m. let's do "final trades." >> joe mentioned it earlier, airlines sold too much but domestic operations are not flying to wuhan and that's a great opportunity. >> honeywell, they reported this week and we expect continued cost-cutting and margins looks great. >> b & g food, dividend yield that i think is very, very safe
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and no international exposure. >> i like b & g foods. >> i do too. emeril sauces, cream of white. >> joe >> the exchanges, there are four of them. cme, ice, nasdaq, any of the four. >> good stuff. and great to be back with all of you. that's it for us "the exchange" starts now. welcome to "the exchange." i'm brian sullivan it is a big day for investors, a big day for your money the dow and s&p having their biggest sell-off in nearly three months the markets trying to gage just how large the impact from the coronavirus will be to the u.s. and global economies companies with huge exposure to china. we will dig in on these sectors putting oil, restaurants, travel, casinos. it's a big hour. but let's get a look at the markets and the numbers. dom chu has more. >>


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