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tv   Fast Money Halftime Report  CNBC  September 2, 2015 12:00pm-1:01pm EDT

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way of streaming cob tent in this day and age. we now the house of cards premier gives net fliks some trouble. imagine what the nfl will be like. >> yes. the network will have to maintain something quite large. >> let's get back to the judge who's back in the half. ♪ >> thank you so much. our game plan looks like this today. the energy play. why one big firm says now's the time to buy even though oil goes on one wild ride. calls of the day from disney, gopro and some of big-time moves from some popular ones today. we continue with stocks continuing to rebound this hour. off the highs, though, investors
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wonder if they're in the market of finding the bottom or if a m more significant pain is ahead. do you think we're close door we need to go to the bottom to test the lows? there's a couple of percentage point ace abos above it. >> yeah. that's the question on everybody's mind. if you look at the history of these things, these types of sharp corrections that occur in a compressed space of time n our case, less than a week, they bounce and if they don't come back all the way, they roll. you saw it yesterday. you're not getting that big recovery. let's talk about today, scott. this is one of the biggest bounces after a down 2% change that i can remember. you don't have any scepter showing it. so there's no leadership in the recovery. biotechs look particularly weak
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yet again. oil is wrecked again. and if you really want to think about, you know, the situation where there's no real leadership sector, what you're basically saying is it's an etf kind of washout. i don't know what's going to change that equation, whereas the spring that comes out and everyone's happy again. >> it's so negative, right? everybody you talk to is pretty much negative. maybe you need to step back and say that the turbulence that we've experienced over the last week plus now is just a matter of trying to figure out what the appropriate multiple on the market should be. it's no more difficult, no more simpler than that. what is the right level that stocks should be trading in the new environment that we may be in, one of lower global growth, one in which china's selling some treasuries, rates could go higher. i think that's what bill gross was talking about where he said
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cash or near all cash is the best place to be. >> i think that's exactly it. that's the exercise i've gone through. here's how i get there. coming into this week and looking at monday, we had morgan stanley looking at 130 bucks on the s&p next year in earnings. we had goldman at 136. the market was trading at 15 half times current. have to take out the emerging market growth, the lift you have from there. that reduces your earnings and that reduces your price earnings, your multiple. where i come out at is we're less valued, it's been five or ten -- 14 times on the five and ten-year multiple. so i think that's probably a little too low because the u.s. economy is still pretty strong. so i come out to 15 times a reduced number, cutting the earnings by about 3% to 5% and you rest at 1830.
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now, you can overshoot that. we always do overshoot what's reasonable as we get more emotional, but that's where i think you can start getting back in. >> the problem is, doc, people, experienced investors and the ones i've been speaking with don't know what the multiple on the market, don't know really what the level of the market should be yet. and it's going to take a while to figure out that answer based on some of these scenes that are happening globally. china, merging markets, the economy, feds, it set rah. >> right. as far as, judge, the speed that josh spoke to at the very top, the moves happening, expect that to get even faster. in other words to see this -- it's not a v-shaped bounce, that's true. we did get down to that roughly 1618 bottom last week and came off of it. however, that would have normally taken us weeks to make that big move that josh is talking about. now it's basically days or
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hours. that's because of how short term everybody is, not just hfts. everybody. buy and hold, buried and dead. so what should you be doing right now? you should be selecting some of these stocks that are the best in breed, that are still holding on, you know, the ones we talked about last week when you were out. facebook, apple, disney, ex-son, all of those substantially above those panic cell levels. are they getting crowded? not in my mind. i still like those. >> the inclination would clearly beb to sell any kind of rally somehow should get. people are selling right into it. that's why the dow is up by 100 better than two. >> right. it's based on measures of volatility. last week we were talking about the volatility index. it got to over 60 we're still in the 50s. now we're pushing around that 30 level. yesterday it got up to 32. we got back down in the 28, 29
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level and here we are as we start to pull back in the volatility place. i would say along with john and josh and steve, when we're looking in the markets, look at certain areas. when we're talking about the valuations, look at some of the names where you are getting some of that bounce and not necessarily an entire sector, but take look at the airlines for instance. when you look at american, 37 trading toward 31, delta pushed lower. now it's $5 off those lows. those are names that still trade in single digit multiples. these are names that are cash. that's what you're looking for. we've come through earning season. we know about the companies themselves. and now going forward, those are the types of names we're looking for as we see some of these selloffs and obviously the high multiple names, they're having a harder time. >> we have a couple of new voices. ron insana, he's a cnbc contributor and dave rosenberg, chief strategist.
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dave, it's great to have you, ron, as well. >> thank you. >> what are we figuring out here? you have a post that i have read. >> appreciate it. >> we want to talk about whether this is a retest, the start of a bear market, a blip in the bull market. what is it? >> i'm certainly not in the bare market. we don't have the preconditions for that. it's short, sharp, and scary. if you look at the classic model, it's a lot of what we've heard thus far. not don't you have a retest. there's a momentum low where we're down a thousand points in the first three to five minutes of trading and after that there's a rebound after the rally. then you begin the process of rebounding. we are still in a correction, whether we're 9% in the y'alltime high or 8.7. we're looking for a 10% to 15% pullback 14rk 'em peak or trough. it's still in a correction mode.
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>> dave, do we get much deeper, do you think? >> i think we are in a retesting phase and we're still in this correction period. there's no question about that. i know that day to day it makes for great news but being around for 30 years it's part and parcel of the correction market. i think we game baim somehow immune to it. there are global issues each beyond china that we have to work through, but beneath the vee near in the latest loefg the selloff that started after the chinese devaluation, a lot of domestic oriented sectors in the u.s. have corrected way beyond the fundamentals. there's the classic throwing the baby out with the bath water. i think that's what you want to focus on. it's not really about the market anymore. it's about what stocks are
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coming out of thery you build t. you have the regional banks, the retailers. the one thing we can say in this sea of uncertainty and it's not just china. japan had a second quarter contracti contraction. right now a lot of doubts ahead of the greek elections september 20th. there is this $15 trillion animal that's called u.s. private sector demand, which is growing very nicely. 3.5% steady at an annual rate and there are sectors you can pick off that are oriented to that $15 trillion market that are going to come out if you have a 12-month view. i think you're going to come out of this with some very attractive expected returns. >> not to mention some of the economic situations in the city. josh brown has a question for you. >> yeah. and i guess i'll throw this out to ron as well. does it really matter whether or
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not the consumer is still strong given the fact that we've had 50% market crashes take place on the heels of some arguably great economic years? think about the year 2000 for example. the stock bubble caused a recession. there was no recession in leites 1999, early 2000, is number one. the second thing is do we distinguish between a correction when you near flat or down trend versus a correction and up trend because the news flash this is no longer an up trend. it's now turned lower. the 200-day, which is a little bit of a shortser term is beginning to turn lower and i don't know if you can call that a questionable market anymore. >> ron, do you want to take that? >> yeah. corrections can still be 10% to 20%. they don't have to be, you know, 10%, stop on a dime and go back to the high. we've consolidated a lot of gains this year thus far.
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this was the year it was going to go up. all these things came together for an up year and you don't have one. now i go back to the thesis which i've been operating at some time. in apropos what david said, this is a $15 trillion consumer market. you don't have in anywhere else in the world. 13% skportss, 6% go to china. i think the u.s. still looks good. i think the fed's on hold. i think that ultimately will be the catalyst for a real rebound gerch that we've never seen the environment increase rates. with inflation data going the wrong way. i think the fed will probably defer and that will be a good catalyst. >> what makes you wonder as well, if china in a sense is doing some of the fed's tightening work for it by getting rid of some of the reserves, whether they take that into consideration or won't move as a result of that to further
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exacerbate cha could be a bigger issue. >> you take-two things. if you're 'veev holder, whether it's china or whether it's some other sovereign, you're selling bonds, okay, because you need the cash because your economies aren't dole well, particularly the emerging markets. you'll see those rates move up. in terms of interest rates which is what we operate on in this country, perhaps they go one and done. going back to what you said about fortress america, absolutely true. however, the caution is the reason why i've cut back my holdings dramatically is i'm look for buying opportunities in companies that aren't associated with the s&p's 40% exposure to nonu.s. so while our economy is basical basically self-sufficient, the s&p isn't. i love stock. i love facebook. a billion users.
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that's great price. i hope to get more, but maybe i'm being too cute. >>'ll let you get the last word. do you think we're making too much of an impact on china's global economy? who knows how bad it is. we simply do not know. >> i think we are making too much about it quite frankly. i remember, you know, japan had a very similar impact in the 1980s, went into a multi-decade malaise. china has been pounding their first on the table for four years. are you telling me the u.s. woke up two weeks ago and china is slowing down and there's no transparency? that's new news. some of the latest data has been an excuse to maybe sell the areas in the narth are related to china like struls, like
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technology. but what do home builder, retail, consumer domestic cyclicals, regional banks have to do with the price of emerging markets in china? nothing. the 200-average day rolling over, that could look completely different three months from now as it was toward the end of last year. the catalyst is probably going to be that the u.s. economy after printing a 37 gdp order was not just a bounce off the first quarter but we reprint the handle for the third quarter. that will be a sign that for all the comments about the u.s. being resilient or the oases for it and during the asian crisis of 1998-'98, think that could be a powerful catalyst. for the earnings outlook. >> david, it's good to hear from
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you today. ron, good to hear from you as well. i know this conversation certainly continues. tomorrow do not miss steve liesman's interview with the treasure of the united states, jack lew. 6:00 a.m. eastern right here only on cnbc. coming up next, despite the massive downturn, hsbc says it's time to be overweight energy. does our desk agree? i see some heads shaking, eyeing rolling. >> not mine. >> tough questions coming up. we'll talk to the analyst behind that call as well. plus, the techcrunch has hit apple hard. now, negative, should you stick with the investment? we talk with someone who has a big stake in that name. as we go to break, tech stocks deep in bear market territory. we're back right after this. >> we want to hear your crowd noise. tweet us @halftimereport.
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more "halftime" after this. you. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor. i'm watson. and today hundreds of companies are putting me to work. i'm teaching watson to help your vet speak dog. you're a dog, right? i'm teaching watson to help you make healthy choices. i'm teaching watson to help design a vacation around your personality. don't judge. i'm teaching watson to answer endless questions. how big is infinity? where do babies come from? why can't i have chocolate for breakfast? i'm watson and i'm ready to work with you.
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[is the staying awake part...t challeng( gun shot )your day sleep train has your ticket to a better night's sleep. because when brands compete, you save during mattress price wars. and through labor day, save up to $400 on beautyrest and posturepedic. get interest-free financing until 2019 on tempur-pedic. plus, helpful advice from the sleep experts. but this special financing offer ends labor day at sleep train. ♪ sleep train ♪ your ticket to a better night's sleep ♪ all right. welcome back. showing you the s&p heat map right now. sectors tech is leadingty way the along with industrials. utilities rolling over. energies weak as well. we've been obviously tracking oil's wild ride session after session. so volatile in that space. that's what we're keep ang eye on at this hour. despite a small rebound apple is
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still negative this year. is it the time to get into that name? let's ask someone. paul meeks is back. welcome back. >> good to be here. >> what do you make of this week's apple? >> think it's just a hold. i have a lot of long-term confidence. like everybody else, hourk i'm worried about the iphone exposure. it's about two-thirds of sale, also a chunk of profits and sales come from china. we know the obvious slowdown there. i think i'm a buyer when it's below $100. right now i'm a holder. >> it's really astonishing when you consider the number of stocks or the percentage of tech that's either in a correction or bear market. stunning. 45% in bear market, 39% in
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correction. anything look good now? >> yeah. analystics. i like tablo and spunk. i do think microsoft and oracle are going to get it in the cloud. in the previous segment you had tom leighton of ak my. also if we get a chance for facebook to come back at $82 a share where it was a week ago monday, i think it's a buy. >> hey, paushlgs you went through some of the names. is there a catalyst before you jump into it? what if facebook doesn't get back down toward 28 or apple at 100. is there anything that's a
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catalyst for getting you back into aggressive fashion? >> don't think so. i own all the names and have substantial positions. what i'm trying to do is gauge the companies to see if they get back to that week ago monday level. the on one i'm keeping a close eye on and they come september 17th is adobe. there might be a catalyst in that name. >> paul, real quick, jon najarian, the question i have is about the subsidies of the phones, basically the areaiers getting out of the business of buying them and basically leasing it back to you through the data programs and all the rest. how much of an impact do you think that's going to by b? is that why you say two-thirds of the sales will come from iphone. is sprints exit one of the reasons why you're worried? >> it's not the key reason but we've had such an explosive
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ramp-up of the iphone 6. we're hoping the announcement of the next rendition in september is good and we hope the apple watch and apple pay will become a hollywood studio but it's difficult when you get into fiscal 16 which starts on october 1st to have growth on top of very strong compares. >> paul, good to drop you as always. >> yez. >> if apple drops again, we want to hear from you. >> please do. >> do you have a comment? >> apple's kind of interesting. i share some of the concern. i think the stocks will be okay but you have to be concerned with the issue you brought up. people who have the am watch, not one of them said, i love it, go out and buy it. and going to a content provider instead of using someone eels content, we don't know how that's going to work.
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what we do know the phones were double the next most profitable phone company. this may be the team. >> we should also mention netflix by the way. yesterday was a disaster. the stock was down some 8%. news breaking today that citron is short that day. here's a look at the stock down 5%. that news coming oup before our program. you can see at the lows of the day for netflix most likely as a result at least some piling on there because of that news. do you have a comment on that? you own the stock. >> my guess is the market got the news yesterday quite frankly. that's why it's down close to 9%. this is a stock that went from 80 to 20 back to 100. i don't think the fundamentals have changed in the last five days as the market cap has. so i think to get into the discussions of here are the pros, here are the cons, i can find one in each column with my
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eyes closed. there's not a lot of fundamental catalysts right now. they'll act to the vis i attitudes of the future and all the stuff going on in the middle. >> but with -- maybe this is, you know, the poster child of a momentum stock. as jim cramer tweets just a short time ago, in a bear market, a call like this works. >> of course. >> the bull market, it does not, period, end of story, that's it. >> this is the market where people are shooting first and asking questions later. it doesn't pay to do it the other way around. it will at some point. in the short term f you have something negative to say, it doesn't take a lot of effort. everyone's looking for a reason to sell even more. >> one name that paul mentioned that i've been looking at and look looked at is tableau.
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it's an incredible company. lowers the costs so dramatically. that's one you have to look at. >> tomorrow we're going to be joined exclusively by dan niles of alpha 1 capital parters in. we're going to be getting his take tomorrow. with look forward to having dan on then. coming up, we take the calls of the day. there are many. one says forget the chinese exposure t year of the monkey. star wars to the rescue. the analyst who's betting disney could rally 12% defends his call. that stock has been so much in the headlines the last few weeks, we'll talk to analysts giving it a bump today and here's what's leading the s&p higher right now. we're back right after this. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed.
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can a business have a spirit? can a business have a soul? can a business be...alive? all right. we're back. it's time for our calls of the day. gopro. raymond james. this is for you. they cut the price target to 50 from 70 and they do a read-through, say, amber really
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lasses they're not coming out with anything. it's done. >> they beat -- the bottom line beat the topline. they say going forward we don't think we have any new product launches for this particular year. they read that as, okay, gopro is not refreshing the product in time for christmas. that's why ambarella is down. most of that justing to the new market multiple and growth. that's a pretty big hatchet. when they took it down, it hardly left any upside. gopro, i'll rather by ambarella. >> doc, clsa upgrades win even though they're pretty negative on it. >> the numbers are as about as bad as they can get. >> ongoing pain is the headline
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of the note. >> you look at 15 consecutive monthly drop in handle at the tables and macaw just terrible. this is a brave call by the analysts but certainly down around 70. some people were looking for it to be pushed to 65 on the move. i think maybe this analyst and others are getting in a little early. wheel see whether or not 70 holds. >> what do you think of this by sandler o'neill? >> they went from a hold to abe. >> they say price weakness. >> yeah. they're looking at the mull. s right now. they're talking about 12 times. you look out to 1216, the stock is trading. i like the name as well. it's getting pulldown. those related to china are making more sense to me. >> two exposures that they have. u.s. centric and housing. >> if you look to some of the
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housing numbers and specifically today, i saw brian sullivan was shaking his head at some of the numbers. that speaks well. 59 dollars is not that much of a stretch. >> now to a company, the stock so much in the news the past few weeks. analysts betting big on the mouse house. disney youtd performed at clsa. we're joined by the analyst who made it. welcome to the show. it's good to have you on. >> thank you for having me. >> why is now the time to upgrade this stock? stoo the strees estimates are low. just very quick statistics over the past three years they beat the street estimates by $1.5 billion. they're underestimated the power. >> it's quite extensive.
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they say, look, a lot of what you say makes absolute sense in the areas in which you say it. the one headline that jumps out at least to me and it's near the top of what you right today york u have a 17 times mull. at a time when the market multiple should be. isn't that the greatest risk to this call? what if you rear wrong? what if it's not 17 times. >> first of all i can be wrong. i actually look at disney. disney is special because it's been trading in the same shape and form for 30-plus years, so we can look at the trading history since '85. then it collapses and the stock takes a double hit. so we are pricing it off that. we're assuming the market
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multiple stays where it is. >> you're not discounting it at all, i mean some of the -- or looking past some of the upset we're seeing in the traditional media land scape, though, are you? i mean the whole catalyst for this stock to go into the slide that it did were the sub losses for espn. >> well, sub losses, revision of guidance, but i also think for the last 18 months if you think about it disney was the momentum stock in the space, retail participation. it could do no wrong and suddenly they have a bit of a revision, shaky hands and broader market, that's what we're looking at now. i don't think it's a material impact on earnings. once again i think the consensus numbers are low. >> vasily, we'll talk to you soon. >> thank you. >> one firm says to buy it and
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hello, everyone. i'm sue herrera. here is your cnbc update. she opposes gay marriage on religious grounds. she's facing a possible fine and even jail time for her actions. masked men in military uniforms kidnapped 16 workers in baghdad. it happened at dawn while workers were still asleep. they're contracted to build a sports complex. demonstrators in peru's capital burning a huge american flag to protest the planned arrival of 3,200 u.s. troops for a six-month tour. afterward they marched through lima toward the residents of the u.s. ambassador. federal regulators have lowered the number of estimated defective takata airbags from 40 million to 34 million.
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some were counted more than once but they said 19 million airbags still need to be replaced. that is your cnbc update. scotty, back to you. >> thank you. we're well off session heise. dow had been up as much as 225 points. after they would be cutting that more than a half sore so. dow supplying 154 s&p and the nasdaq trying to rebound as well to what was the worst start since '09 and was a rocky, rocky session. speaking of rocky sessions crude continues falling another 4% today. jackie deangelis with more. good afternoon. >> that's right. we've got a rise in inventories from the department of energy and also the news that president obama has the support he needs to move forward with an iran deal which would bring more oil back on the market. so brian, your take on how to trade this volatility. a lot of people are very confused right now. >> yeah, they should be, jackie,
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because you've mentioned some of the fundamentals that have gone out the window. you have to look at the charts and the technicals. that's always oil is trading on these days. what when e printed above $42.40, oil is off to the races. i want to see that drop below 45 because the level of volatility is too high to really get a change in this bear market in oil. until then it's sell the rallies. we're still in this bear market mode until we get them to come down and price things more accurately, things are going to come down. >> what's the next level for oil? >> i disagree with brian. i think we're in the bottoming pattern. however, that being said, we went up too far, too fast. if it settles below like 43. 43.20ishi43.2 43.20ish in the contract. but i base that mostly on the
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fact we're backing out tightenings. that would soften the dollar which is one of the reasons where the crude is. >> for more head to our website and we'll see you live for the 1 1:00 p.m. show tomorrow. our next guest making a bold and contrarian call. ben laid ler is the strategist at hnbc. welcome to the show. >> thank you. >> we've seen buffett and icahn make moves. i'm wondering if it's too early to make a broad sector call to go overweight right here. >> it's clearly a contrarian call but all that means is the market is very sensitive to any potential good news here. we've never seen more than a one-standard deviation event his
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storicly. we're seeing some stability there. it tees biggest underweight they have out there. we're looking for a moderate gradual move. i think you put all that together and i think the sector is going to award them. >> it's a contrarian call, there's no doubt about that. opec may be ready, willing and able to sort of reassess where we are, but i wonder where you think china and the potential of much more emerging market pain factors into your thinking. >> sure. it's them trying to force opec out of the market. we think that's market. give that some time and you'll fully see that in in bum bers. i also say the demand numbers have been firming up. if you look at the iea numbers, they've firmed up to about a million dollar a barrel. i think you're beginning to see
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the demand response come through from the oil prices and that gives you some buffer clearly to declining gdp growth expectations. ire definitely coming through. >> don't you think it's somewhat arbitrary at this point to use some numbers when what you didn't have in the paste, you didn't have u.s. being self-sufficient in energy or china foeding instead of growing. looking at natgas, where it was so plentiful, they cut back, capped the wells and as soon as price rose, they started producing again to. me i see that in oil. i don't think we see prices of 70s or 80s for a long, long time. if you give any of these guys a dollar, they're putting it in the ground and coming up with a product. ite goengs to be sur vierchl of the fittest in terms of who can produce. >> would say you've got 20-year
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valuations and 10-year oil prices. we see chinese gdp growth firming up a little bit into the rest of the year. we certainly don't see it slowing significantly. we have gdp growth for the year. we see the market picking up so we definitely see the glass is half full rather than half empty. >> ben, thank you for coming out. we appreciate your views. hope to see you back soon. >> ben laidler, hsbc. your comment. >> it's a corollary from now in the '90s or 2000s, every macro environmental carries with it different characteristics. right now we can get an energy really quickly. can suspend production. prices rise, put it back online. that's something that the drillers of the last decade simply didn't have the technological capacity to do and we've got weakening emerging markets which is a mirror image -- a 180 from what we saw last
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decade where you had four bricks drinksing as much oil as they possibly could. i don't know if i love this idea of looking at relative -- >> why are you looking at it? >> i'm giving a dividend there. i'm holding the highest quality names. those are the fittest, the best balance sheets. i'm not playing games like range resources or any of the smaller producers. i want to look at the companies that benefit. >> pete, the refiner's attractive? >> i think they can be, yes. i still have a position in valero. >> do you have a position because you have real conviction there or you do have a position because you feel stuck? >> i would go into josh's camp of certain specific names i do like at this time and i think valero is one of those names that stands out. i have a position in bp. i have a couple of positions, short term because the volatility of this market that we've been talking about, that's
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what everybody has been attacking. very short interpret and a lot of the less quality names but they can give you some incredible moves at an incredible rate, but you've got to be very, very careful in this market. >> exxon mobile. >> i bought it last weak on monday. happy to still be holding it here even though it gave up some of those gains. i've about now written calls against it. weatherford is one. wft, watch that one. that's a pretty decent drop. i'm watching that one. >> coming up, football fans rejoice. cbs sports embracing the streaming culture. there are a few more games you'll now be able to see on your smartphone, plus, josh brown, there's one less thing for you to worry about. >> there is? >> that's what they say. >> okay. >> we stop serving breakfast at 11:30.
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>> rick, have you ever heard the expression the customer's always right? >> there's a slight resemblance in the hair cut. >> the watch? >> mcdonald's serving breakfast all day. >> i'll try not to have a falling down moment right here on the set. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.
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hi, everyone. coming up at the top of the hour on "power lunch," we have six bargain stocks that are paying great dividends, plus a 20% rally in the s&p 500? well, we'll speak with one bullish money manager who is sticking with his 2311 target on the s&p by year end. and counting down to the fed's beige book, the last fed report before the big september 17th meeting. it could be a big market move and it could happen right during our shower. "power lunch" is coming up at the top of the hour.
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hi my name is tom. i'm raph. my name is anne. i'm one of the real live attorneys you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here, we're here, and we've got your back. legalzoom. legal help is here.
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okay. welcome back. let's do our "trader blitz" now. this guy and a microphone -- >> it's unreal. >> get to our "trader blitz." cbs going deep on streaming nfl. >> exactly. they're going to stream a game from london, judge -- for free. that's going to be an
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interesting one. jets/dolphins. then, of course, cowboys/carolina on thanksgiving. hulu also just announced they're going to have a new ad-free service. a lots of focus on media stocks because of what's announced today. >> general mills. morgan stanley upgrading. their shares go to equal weight from underweight. >> they're doing some cost cutting and morgan stanley is freak being out about it. i don't really understand. like so the stock is up, it's having a decent day. these are not great names at these current valuations. none of them are cheap. a lot of them have been elevated because they're dividend. yes, you can always cut costs but i'm just not sure this is a reason i want to pile in it today. >> what about mcdonald's? you are going to get all-day breakfast. >> surprised these guys showed up for work, tell you the truth. first of all, congratulations on celebrate being yellow taxi day
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with the shirts. appreciate it. >> what are you doing? schtick? >> i don't think it will move the needle that much. >> move the needing? >> on the scale. >> i'll weigh in on mcdonald's. >> yes, you did. yes, you will. >> go, quick. >> not going to matter. this is just another reason for millennials and young parents to avoid this store all day. they don't want to eat this breakfast. they don't want to eat it at 9:00 a.m. they certainly don't want to eat it later. we have some under-the-radar plays for the second half of this trading day coming up next. big day? ah, the usual.
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moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. can a a subconscious. mind? a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?
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but what if you could see more of what you wanted to know?
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with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. we're back. time to go "under the radar," three things traders are watching that you might have missed today. >> ppg. that's one of these specialty chemical companies. this stock was $115 a share. it's dropped all the way down and now here it is in the low
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$90s. today we're seeing very unusual activity. seller of puts, the november 90 puts, and the november 95 calls. very bullish. it also means somebody who's willing to own this stock if they're wrong, anything at $90. and anything above $95, they start to cash in and do very well. stock was right around where it is now around $92.50 whether this initial trade came in. >> call now. get your book. trade the options. >> that's right. learn how. >> judge, i thought it was interesting when you look at the breakdown of online ad spend and that google's collecting 36% or so. then you go way down the line past yahoo! and microsoft and all the rest with bing. you get down to twitter at about 2.3%. so if you wanted to see the glass half full, you'd see look at the upside for twitter on online ad spend. >> they have the board meeting coming up, this highly important board meeting. >> that's right. do they name that new team or
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that new individual? but as far as the downside, the downside is they've been around a long time and they're only getting 2.3%. >> how does twitter do the board meeting? >> you have a thought, josh? >> i have an "under the radar" that i think is actually really important. >> i hope so. don't sell yourself short. really. >> thank you. i will have more confident in my under the radars going forward. there's been a sea change in what's working for stock pickers and for people who are attempting to gain an edge on the market this year. the first quarter and a lot of the second quarter was all about small cap growth. the only sector that was positive actually. now you are seeing a big change. high-quality is where you're seeing much better relative strength, much better stock performance. companies with good balance sheets, companies with quality earnings are doing way better now than the junky stocks, stocks without earnings, the
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types of fast-growth biotechs that we're leading. if volatility is going to continue for the rest of the fall, then those are arguably a better place to be looking for bargains than at some of the growthier stuff that used to be the world's fair at the end of the year. >> show of hands -- that was important. right? >> way to go. nice. >> guys, see you tomorrow. thanks for watching. "power" begins right now. >> announcer: "power lunch" and the second half of the trading day start now. after a bearish day yesterday, the bulls trying to make a comeback. s&p, nasdaq and small cap russell 2000 all higher. but today we dig in on the biggest of the big caps, the names likely in your retirement plan. companies like disney, ge, ibm and caterpillar. and more and more wall street analysts are sending out notes saying buy on weakness. does the street really think the bottom is in? tyler's out. i'm in. mandy's inside the action down at the new york stock exchange. >> i


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