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tv   Fast Money Halftime Report  CNBC  October 2, 2020 12:00pm-1:00pm EDT

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our breaking news coverage continues this hour. welcome to "the halftime report." the president testing positive for covid. stocks falling sharply on that news recovering a bit now markets reacting to the latest jobs report.
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we're following all of that today. we'll get to the markets in a moment we do begin with our top story the president and first lady testing positive for the coronavirus. our shep smith joining us with the latest >> it's news on the east coast here is the news the president and first lady are positive for covid-19. the first lady reports she has mild symptoms but feels good the white house says the president has mild symptoms. president trump is in good spirit ossen ca -- spirtss on a call this morning. president trump is in both categories
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>> he continues to be not only in good spirits but very energetic. we have talked a number of times this morning i got the five or six things that he had tasked me to do, like i do every single morning he is wanting to make sure that we stay engaged. i think the other thing that is critically important, the doctors continue to monitor both his health and the health of first lady >> joe biden sent his thoughts to the president and first lady for swift recovery now they are testing those in the president's orbit and the white house and beyond contact tracing beginning as well results today from people around him, this just in. the republican senator mike lee of utah just reported he too has tested positive for covid-19
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the president's daughter and jared kushner is negative. >> borrowing something from your show this evening, the truth, the facts. they'll never be more important than in situations like this it raises questions of what we as the american public have the right know and when we have the right to know it >> the white house did not release the information on hope hicks.
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we don't know when the president found out he tested positive we know he spoke to sean hannity on fox news channel last night lots to report >> we'll look forward to that. >> i mentioned we do have the investments committee. markets are on the move. jim, what this news does today to the pace of the recovery. how people react, how businesses react to this news the president has tested positive for covid-19 >> great question, scott
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when you get past today to recovery is in place the economic statistics are been coming in better than expected i can't tell you when or how it will be. i believe you'll get it. i don't think you're supposed to bet against the recovery let me put it another way and very simply. if people are taking today's news and the uncertainty that it contains and saying, hey, i to move to cash i want to get out of stocks. history shows that's a bad move. you need to stay invested through volatility otherwise, you miss rallies like the last quarter gave us i don't want people to miss those rallies. stay invested. >> the issue, shannon is we don't know how the consumer is going to react or how states or businesses will react to the news today and if it could you says anybody to dial back in
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their behavior >> i think it's more the latter to be honest, scott. i think it's more about the different state and local governments. we were very bulled up on reopening. we were looking past the election which i think we should attributing those to reopening could this slow what's happening. we're at a very important inflection point and the markets are digesting the potential for these reopening to be pulled
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back this very real individual testing positive that debunks the myths we heard. >> house majority leader sunny hoyer was speaking on the floor and said negotiations continue between treasury secretary stephen mnuchin and house speaker nancy pelosi they beau want to get to an agreement and that talk could bear fruit perhaps as soon as this eekend. pelosi was asked about the
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possibility of a deal coming together despite the vote. she responded, i don't know. we'll see. the democrats asked for $75 billion for testing, tracing and treatment. >> i appreciate that very much saw the market moving higher off of the news. you did have house speaker pelosi saying we will get something done now sort of underscoring will. it takes further meaning today because of the jobs report which did miss expectations.
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how we're factoring this into the market and the diagnosis >> what this reminds me of is that today the challenge of political courage looms larger than ever. we hope that moves forward we need that. it's important for the business owners than the capital markets at this point.
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fund strats tom lee says the news marks a positive turning point. he said trump getting the virus repudiate those skeptics of the need for masks, ppe and skept s skeptics this should make many rethink mask since we know a lot more staffers will get infected this is somebody that's argued for the roping of the epicenter stocks >> we understand why.
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if you were going to come to me before that, i was going to say i think the stimulus is the big deal we're cornncerned about the president, the first lady. we looked at these numbers today. the job numbers. they weren't very impressive at all but we expected that as somebody that already discussed. we are looking down the barrel of when will we get this stimulus and maybe that's going to happen over this weekend. sfa as a matter of fact, i feel like that's the case. there's going to be some selling. people will first sell because that's the first reaction they get when they are reading all over this news i think the reality is, there are plenty of different areas in the marketplace right now where we have an opportunity for a nice rebound especially in we get that package i think we will over the weekend. >> i seep you doing a lot of that sort of putting your money
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where your mouth is. >> i just saw over the last couple of days we have seen all different opportunities. i think in are names that can have significant moves to the upside we have seen some of biggest plays within the usual options we have been seeing over the last three, four trading sessions has been in a lot of various technology names that's
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given me a lot more comfort in what my gut is telling me. i'm seeing what others participating in the markets and putting out these huge buys in names like boeing and aing and tesla and nvidia today some measure on. in the longer term, i think we will see that package soon because of that, i think the markets will react in a positive way. >> they are reacting now in a positive way you've got definitely a move higher i'm wondering whether you think this news today in any way, will spur this movie back into technology, including some of the names that got hit pretty well in september. the faang stocks were all down or most were down double digits, including everybody's favorite stock apple. do we have our eyes keenly focussed on tech and that puts a bit of a lid once again on the
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so-called value trade. you can look at the stocks and they are quality i'm looking for quality names and if they have growth, a lot of quality names with growth are in the faang world that's part of the reason why we have seen that we look at the truckers and the rails and transportation and so forth. i'm not talking about the airlines i'm talk about those others that are move things around the country. because of that, i think there are a lot of other opportunities but technology, yes. >> pete, bear with me. i'm going to go back to ylan who has more breaking news regarding stimulus on the airlines which i see stocks are moving higher
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>> reporter: that's right. house speaker nancy pelosi issued a statement calling on the airlines the hold off on furloughs because she said congress working on relief her statement says that relief for airline workers is being advanced in congress congress be advance a bipartisan stand alone legislation or achieve this as part of the c e comprehensive negotiated relief bill that will extend the payroll support program for another six months these workers can maintain their criminal training and certification rierms that are unique to the industry she said the job cuts would be devastating. this does seem to echo the sentiment we heard that the negotiations on a bipartisan relief bill seem to be ongoing even though hope had faded these talks are clear lir moving
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forward now. >> i want to read to you the very bottom of our screen which i'm noticing, vice president biden, dr. jill biden and his wife have tested negative for the coronavirus. with we have those now. earlier today on news of the president's positive test. then this disappointing jobs report we're moving the ball forward on stimulus that's clear you can see that movement specifically in airline stocks which ylan was just telling us about. i'm looking at united airlines which is nearly 4%
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the s&p is down 20 the dow is down but 50 there you see a perfect example of united which is spiking on the news that ylan was bringing us on the comments from the house speaker. >> the market is waiting for good news. what we're seeing is as the good news comes, stimulus package, we'll see a bounce off of these lows that was critical for the success of the market and also it's going to help that main street, that small business owner. >> shannon, if you needed another reason to understand why this market is where it is and why it's come so far since the spring, this underscores it. you're going to get more stimulus, it seems you've already gotten a lot. the fed is so engaged and it's not going anywhere this is yet another reminder of
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where we are even in the face of so much uncertainty. the pace of job growth now slowing as we learn today a positive test from the president and the first lady and the white house today and yet the market is able, at least, at this moment to move past it because it believes more stimulus is coming >> this economic data shows the airs act really was. the fed can create conditions. you need meaningful fiscal stimulus we saw that expired in the cares act is important.
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the commitment to stimulus and that tail wind from fiscal stimulus will create an opportunity for economic growth next year which is what the story should be and our focus. >> he is sticking and confident in his year end price target soon be entering the market will, as hesays, the most volatile time of the calendar year we shouldn't be surprised to see price swings during the period
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you're not doing anything today. why not? >> just to mirror bryan. we have a six month, 34.27 on the s&p 500. that was right at the low of the correction we talked about it right now i'm waiting for the third quarter earning season to come in. last quarter was terrific. we had no pre-announcement going in that's a very good sign. to go back to bryan's target and my target, i have to make this point clearly. this is not a time for a hero to come out and say let's go all the to cash or let's go all in
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it's a set up for 2021 with fis d -- fiscal stimulus. you have to pick your spots now. >> dow jones has gone into positive territory about six points or so the ball really moving on stimulus specifically relating to the airlines. give us to latest phil >> let's be clear. american and unite who had are the bulk of the furloughs that have been announced that went into effect starting yesterday, both of those airlines have said and did say on wednesday, look, if you can get a deal done in the next few days, we will roll back the furloughs brip brinks brings up the question, have employees been furloughed.
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yes. they said we stand by our pledge if they come through and they pass some type of an aid package, let's say later today or tomorrow or soon they will roll back those furloughs. those employees who did receive furlough notices who were told effective yesterday, don't come into work. you have been furloughed and the process has begun. that continues until there is an aid package that is passed this is the bridge they are looking for through march of next year to keep the employees on the payroll and most significant of all those employees, not that it's not significant for everybody but most significant, the pilots it's very costly to furlough them and bring them back into training so they are faa compliant. >> you use an interesting word,
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"bridge. we can't have this be a bridge to nowhere >> you bring up a great question >> this has to work. >> all of this comes down to what do you expect business to be like in march of next year. we know the first quarter is always the slowest time of the year for the airlines. do we expect a surge in travel come january or february no not unless there's major advancements when it comes to a covid vaccine. if there is and you have fewer areas locked down, you have more areas where people can go and visit for a long weekend or a vacation then yes, you will see an increase in traffic right now, scott, we're still seeing travel on a regular basis every day down anywhere from 65 to 70% it hasn't moved over the last month. >> appreciate that very much
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>> the 65% decline if phil was talking about, i don't think i'm saying anything provocative there. the question is when does that come your term is correct we'll be building a bridge to nowhere. we need covid treatment or vaccine. >> as cautious as you sound to me and you're not being willing to put any money in market right now, what are you waiting for? if we're here having a conversation about backstops for all intents and purposes, whether they come from washington via stimulus or come from washington via the fed, we're talking about backstops.
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if you know that more is coming and it's going to be there for the foreseeable future, what sign are you waiting for before you would put more of that 8% or 10% cash that you're holding into the market? >> i'm down from 13% to 9% i'll give myself a little pat on the back i think you'll get some dislocations in the earnings report i think the month of october, i'll be surprised if i go into the election with this much cash we're talking about the airlines i own alaska, boeing, raytheon technologies if the airlines get a shot in the arm, believe me, i'm going to feel it i'm not pushing back hard on you but i'm not risk adverse i'm 91% invested in some stocks
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that will perform with the stimulus bill. >> this is maybe more than a shot in the arm. it's an old fashioned booster. we'll see how it works let's take a quick break we have a cnbc exclusive interview. sofi ceo is with us. we'll talk his new dividend etf. 'ldohawh wreacin two minutes. plap
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this is decision tech. find a stock based on your interests or what's trending. get al-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.
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. welcome back sofi is rolling out a new etf today. the first offering gives a new meaning to tgif. for an explainer on that, kate rooney is with us with the ceo hey, kate. >> the new etf is paying a dividend every friday instead of every quarter. ticker, tgif joining us now is anthony noto thanks for being here. how do you match up wh wha is a quarterly dividend with these weekly distributions are you holding onto the cash and then dribtsing that and what happens to the money in the
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meantime >> sure, with sofi invest in the products we're trying to differentiate on selection it's the only place you can buy stocks without commissions our objective with this particular etf is to continue to give our members access to investment in vehicles that are right for them give them access to things that are differentiated most etfs have dividends on a quarterly or annual basis. our view is that's sort of driven by old thought processes and philosophies why can't you pay on dividend frequently the money is there we're going with a higher frequency payoff sort of like your income from your paycheck. >> just to clarify, you get that dividend every quarter and you're paying it out to the customer on a weekly basis
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do you hold that cash and are you able to monetize that? >> the etf is investing in high income fixed securities. they paying out on that. the so call add min traitor is managing the cash flow it is pay out the five cents every friday as long as you own the etf during the dividend pay out period >> some of these dividends could be pretty small. i see ford, teva what should the clients expect to earn in a given week? >> it's set at five cents per week depending on the etf price which started at $100, it could be five cents per week times 52 weeks divided by the stock price over that time period. assuming the etf price stays at $100, five cents time 52 weeks
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would give you a little over 2% yields annually. >> welcome to halftime nice to see you again. congrats on today's news >> thank you >> in 1999, 2000, you're sitting at goldman sachs you're one of the top analysts back then. are we heading down another 1999-like road >> it's hard to make comparisons between today and 1999 given the most significance different is we're enduring a global pandemic and economic uncertainty one of the benefits of the etf
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we're providing, select 500 at about $10 per share. wii giving them prod based diversification. allowing them to set up recurring investment opportunities through the app. you can i vest every week, every day and have it preset in the amount you want to invest. that time period was clearly very disruptive to investing and those that remain focused on the long term and dollar cost average were able to get great returns over next 20 years >> when you see some of the activity within the market today, does it give you pause in any way whether it's their proliferation of spacs which everybody is talking about now even some of the other technology stocks that have had just enormous gains in trade at very elevated valuations, the
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likes of which you would have been wrieting about back in the day. >> i think the speculation is as great as it's been in my 25-year working financial and it creates a significant amount of risk and the best thing investors can do is not try to speculate and focus on the long term the volatility is being driven by different dimensions every day. there's a different news story breaking every day some related to the global pandemic some related to the political environment. some related to the global economic environment those are very unique. there has to be a high degree of caution and the best way to approach that is to diversification, long term focus and dollar cost aver rajjing >> i'll talk to you again soon i know kate would like to wrap up with you as well. go ahead >> thanks, scott we talked a lot about this boom in the retail traders especially
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on plats foforms like robinhood >> we have seen a sector acceleration and demand from investing since the beginning of the year we were the first to launch fractional shares. 32% by investment activity is around fractional shares it's pretty broad based. it's definitely paying off >> got it. we'll lever it there thank you so much for being here scott, back to you >> i appreciate you bringing that interview to us pete, interesting, i want to focus with you, if i could, on the comment from anthony on
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speculation right now as high as it's been in the 25 years that he's been watching all of this >> we do bring up these names. we talk about names that don't have multiples because they haven't gotten to the point where they make money. is it a bit toxic at times absolutely i think there are opportunities out there. you do have to be careful. there's no doubt about it. this is a time not so different in some ways to the 1999 era where there were companies that had all kinds of bells and
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whistles that looked fantastic >> kwhast the most speculative position that you have on right now? something like a data dog or even twilio. growth is there right now. there's going to be competition. i think they will do well. are they ahead of themselves maybe. you have to be very, very tactical when playing some of these various stocks that's why those names are not stocks for he. those are option trades so i can trade the risk i'm willing to have on in terms of how much premium i'm willing to hold onto
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for upside rather than being in the stock and wake up one morn where it's down 15 or 20 bucks or many. >> defining your risk. coming up, the investment committee on the hot seat. we're doing the quarterly report the biggest q3 winners and losers in our portfolio and what they plan on doing with them now. you'll hear the names next you can watch or listen us to live on the go on the cnbc app we're back right after this. what your mommy does... my mom has super powers. it's like she can see the future. what?! it's like she time travels in a rocket ship. that's cool! and then she comes back saying "try this" or "try that." she helps everyone. she helps them feel less worried. wow! mommy, so what is it that you do? i'm a financial advisor. she is! aig proudly supports all the professionals taking care of our financial futures.
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welcome back with a turbulent third quarter in the book, we look at ou winners and losers you have to losers 21, 19, 19% respectively to the down side. are you selling these? what are you doing >> no. those are the only energy stocks i'm holding. they each have their own
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reasons. i'm focus in on marathon they are selling their speedway gas stations for $21 billion. they are about to take in cash greater than their overall market cap >> shannon u.p.s., alibaba, free port mcmoron which of those three are you most confident about in the quarter ahead relative to the gapes that they've already had >> we think the e-commerce and cloud continue to grow you can put aside your relations and any potential impact on the
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ability of u.s. investors to hold the stocks in china, alibaba should be at the top of your list. >> what are you waiting for eog down 29, valero is down and chevron is down 19 you love these and they konand y continue to kill you giuys. >> absolutely. we think the refiners are well positioned we are anticipating that through next year. >> i don't know if i heard you laughing or not pete but energy has been punching you around >> turn me around too. >> you have chevron. we know what's going on with
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energy you also have u.p.s. up 50 what's the name that stands out to you are they best or worst if you're making any moves forward i love both draft kings and cr yorks port because bauz ecause of that, i n the name has plenty of upside. i met the ceo at one event >> these guys are outstanding. when you look at what they are in terms of the annual potential of the online betsing world, we're talking about 50 plus
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billion dollars. it's almost a new 50-week. good stuff we he avpete's latest trades in unusual activitactivity we'll do that next
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virgin galatic is up >> this one is pretty gr interesting. it's performed nicely. some are expecting a great performance this month they are going out to october 30th expiration. the last friday of october they are buying over 5,000 of the 24.5 strike calls. the stock is trading around 20 they are buying a 24.5 strikes call that's a pretty significant move to the upside. just real quick touch on twilio. they were buying next week's 300 strike calls that's part of the reason i'm in
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twilio now we have a little something going to be up side. people look flg a different of different areas for big is up side to still continue to make moves. i think the two names can get there. >> good stuff. thank you. we do have more trades ahead on the half. as we go to break, take a look at some of stocks hitting all time highs today including peloton, data dog. roku which we'll hit before we 'rba rhtft wee ckig aer this.
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let's do the futures outlook now. copper is moving higher. let's bring in jeff kilburg. always a good indicator, jeff. >> it's always been a leading indicator. it's interesting to see, as we get the understanding of the pickup in china, that is a good sign of that utilization of copper i want to be a buyer here, scott. $2.90, that's a level of purchaser. i want to see my target go up to $3.20 a pound. there's a stop just underneath $2.70. you can potentially make $700, but we saw copter have baper hae
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back-to-back bullish zones, so iss th ia good one >> thank you we'll come back and do final trades, next
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>> announcer: missed a show? don't sweat it the "halftime report" now has a podcast, market movement interviews, call of the day, unusual activity, and, of course, "ask halftime.
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we'll get to final trades in a moment however, look at shares of roku. that's an all-time high. jim, it's up 10% this week alone. a lot of people follow you in, and a lot of people follow you out of this thing, so you're currently in, right? >> yep yep. about 16% in the month
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i'm not being facetious, i'm going to hold it until it stops going up and i'm not being facetious, okay this stock is a trading vehicle. the first eight months of this year it did nothing, okay? you can't trade it when it's doing nothing, but when it catches a bid like it did in august, you got to get on and ride that train until it stops so i'm in until it stops, and you have to be nimble getting out, which is what i'll do >> let us know as i know you always do. >> i will. >> shannon, first crack at final trades today >> great my final trade is disney for those of you who are bold enough to go in under 100, kudos, for those of you who are not, it might lose a little steam. you have parks, you have sports, and disney plus. don't wait for parks and sports to come back before you buy this stock. it was a darling this year, it will be a darling again.
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>> sony, apr, consumer electronics. it surprised wall street in august it has a cash low of 14% and it's actually fairly valued. a great buy. >> thank you pete, i need a time. >> levi's, how about that? >> jim >> cleveland-cliffs. >> good stuff. good weekend, everybody. "the exchange" is now. thank you, scott, and welcome to "the exchange," everyone, on a big day for the markets, the economy and the u.s. stocks are staging a big turnaround after dropping sharply on news that president trump and the first lady both tested positive for covid-19 what does it mean for investors, for policy negotiations, for the campaign and the fate of this pandemic we've got it all covered today, and we begin with the latest on the president himself. kayla


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