tv Fast Money Halftime Report CNBC July 20, 2017 12:00pm-1:00pm EDT
the year below three sixty-three. the number of illnesses linked to this virginia restaurant reportedly over 100. people will be watching that situation. >> nike up 2% on an upgrade from morgan stanley. >> tonight microsoft, capital one. busy day tomorrow. let's get over to wapner and "the half. welcome to "the halftime report" i'm scott wapner amazon wars as another sector comes under attack from the tech juggernaut is anything safe from the bezos ba zuk ka? with us is joe, jim and josh and mario gabelli is here. he is the chairman and ceo of the gabelli funds. let's begin with the amazon and new group of stocks getting hit today. there they are on the wall home depot, best buy, lowe's, whirlpool? best buy, too. sears will begin selling its
kenmore brands and appliances on the shopping site. so, mario, i guess this is what we're used to now. do we have to look at our portfolios and are they saying that it can be disrupted by amazon >> it's part of the free market system it's good for the consumer something to come along with the business only two days ago along with a baseball team. inflation for the goods and analysts watching this, all they have to do is look at page 41 of their annual report. appliances are 7.8% of the company's total revenues, however, that's been the big growth factor on a com space and that's what the street looks for. >> do you think some of this is over blown >> look, mr. market, that is the volatility in the market where is home depot going to be in the next five years the important element is inflation in the goods they sell they are going to do something material because they are
saturated in the u.s., they have to do something. i'm glad that amazon comes along and knocks off everybody it keeps you on your toes. >> these are blue chip names home depot down 5% lose down almost 7, whirlpool, 4, best buy, 4 brian nagel over at oppenheimer taking a look at these declines and saying, this has got to be over blown no >> no, it definitely is. actually, bank of america and merrill lynch looked at online multiples versus retail brick and mortar multiples that's a spread. it's never been wider. so this is obviously the consensus bet that if you sell any kind of product, you've got to figure out a relationship with amazon and good luck preserving whatever margins you thought you might maintain in your own stores and online to mario's point, this is the creation destruction impulse of capitalism. >> isn't there a lot of truth to what you said? >> yes. >> if you can't beat them, join
them. >> we talked about nike. i'm not going to go crazy here nike had people selling the shoes where they were not economically benefitting resellers, it looked terrible, a sloppy mess on the page, et cetera, and eventually nike said, you know what, we're going to sell on amazon. we're going to do it our way we're going to clean up the resellers on there we're going to put fresh product. we're going to control what it looks like on the page maybe they don't make as much money as they would on their own app, but at the end of the day get the product to the consumer and if you've got to partner with jeff, listen, you had your chance to build out your own version. it didn't work as well as his. this is the reality of life. >> imy >> well, look, there is big, big changes going on for many years to ecommerce more people are buying online than in stores having said that, i don't think it's reasonable to expect the in store experience to go to zero. >> you pop into some of these stocks that are getting hammered
today or no? >> yes, i might. i'm not going to today i haven't done my research on home depot, but i'll tell you bluntly, i don't think home depot is going away. >> do you have to do a whole bunch of research to know if you're going to buy it >> i do a lot of research before i buy a stock. having said that -- i don't want to be sanctimonious. >> home depot is not going away. down 7.4%. >> i just got a text from wyse, he says you're wrong. >> you're talking about a company that's taking 1.8 billion to 1.2 billion shares. even if earnings are flat, even at basis they're going to earn $75 billion of revenue cap ex is 2.5 billion. they have a total flexibility. the question is short term market dynamics. more importantly for me, at what point does somebody step in and say, hey, wait, jeff is being too disruptive and he's entering too many markets and there's
anticompetitive behavior. >> can they get too big for their britches >> i don't know. the world changes all the time you have a new administration that says the free market's at work, businesses are good, let him compete. on the other side of the coin at some point you may have a new administration that says central economy has to be controlled >> it's not like the president hasn't thrown some fireballs at amazon and bezos already, right? he's said a few things over the last few months. could that grow a little bit worse as amazon tries to spread its teng tackles all over. >> it was at&t in the '80s and ma bell had to break up and microsoft has issues and google has issues everyone's going to have issues. >> there's some differences that can have the amazon take hold. books are obvious. one book looks identical to another wherever you buy it. home depot is a little bit immune to this, just a little bit. if somebody needs to go by nails, they're not going to do it online. they need the nails today. same with appliances but from a
different perspective, which is you want to touch what you're going to buy for $1,000. i want to make sure it's going to fit. >> people have been buying big screen tvs for years on amazon. >> well, i'm giving you an opinion. it's not a fact, it's an opinion. i do think there are some product categories that are a little bit more immune not perfectly immune, a little bit more immune. >> subject to pricing. when i go look for something online, i'm looking for the price and then i'm looking for the convenience, i'm looking for the spread and the timing. it's a great price comparison shopping before i used to wait for "consumer reports" to come out. >> do you own amazon >> tiny. >> is it because the value -- as a value investor you can't get around the valuation >> no, because i was stupid. just missed, along with netflix. netflix is more to my core competency. >> you made the key point here, it's the matrix. how much time is going to take me, how much do i want the experience of touching the item and that's why omni channel they
thought would be the answer for retailers, give the customer multiple ways to interact, give them different options, you can order it online, pick it up at the store, return it at the store, and i do think there is something to that. some retailers will be fine in the long run we're not talking about the fundamentals of the businesses only we're talking about the multiples. home depot is one of the most expensive in the sector. this is a stock that's been priced for they will be perfectly immune and now the market seems to be saying, well, they'll be mostly immune but it won't be fun when people are price shopping in the aisles like they do at best buy. that is going to weigh on the multiple it may not wreck the business, but this is what matters to traders. >> he anything to add? >> i have nothing to add >> six stocks are impacted home depot and lowe's began the fall after quarterly earnings in april. would i buy them right here?
no, i would wait until the current earnings are out in august this is also a housing story also impacted is whirlpool this is kenmore versus whirlpool. that's a brand issue i don't know if i'd go there either sears, good luck to them i never want to buy sears. >> too bad jcpenney doesn't have the whirlpool name. >> you've hit your name. >> tweak them every now and then. >> best buy on this, absolutely you want to buy it this is whatyou've been waitin for. this is the whoosh, this is the selloff. you have back to school, iphone launch this is an opportunity in best buy. amazon, wouldn't buy it. exactly what mario is talking about here you are seeing amazon getting very aggressive in entering other businesses, okay and that disruption is going to lead to someone finally saying, okay, we are going to go out and we are going to try and compete against amazon who is amazon's competition in this country
>> only walmart. >> yes >> there is no other there is no other. >> the aggressive nature of what they're doing, forget about what the trump administration may or may not do, the aggressive nature on the business side of what amazon is doing is going to leave others in a defense mode and to do what amazon is doing i wouldn't buy it. >> we asked at the top of the show, we opened the program with is anything safe from bezos and his grand visions of where amazon -- >> walmart. >> you're telling me walmart is the only name? >> the only name and it doesn't mean i think they're going o win. walmart. a lot of what amazon does is technology but also a lot of what they do is logistics. the reason why they can undercut prices is not because they have the nicest website or most traffic on the website, but they've got the ability to get product into people's hands. there's only one other company that, a, has the financial wherewithal to build what's
necessary technologically and, b, the logistics not just, hey, we own trucks but the breadth of what they've got across the country no one else has it now it doesn't mean that walmart will be able to take that and mobilize it the way that they need to, but recently it looks as though they're actually going to make a go of it and try there is no other retailer with both the financial and the logistics capability >> is that -- does that make sense to you >> from my point of view that's one side of the equation the other side is what's going to happen to inflation inflation is more critically important to distributors in toerms of if they can maintain most of their gross margin, the sgna is not going to rise as fast they're going to have an extraordinairy improvement in their ebida. >> it's a good jumping off and looking at the fang performance. these stocks which were being questioned seems suddenly back year to date facebook is up 42%,
amazon 37, netflix 49, google 25 your funds own these stocks. >> no, we have one fund in particular which is up 21% this year, it's called a multi-media fund it's run by chris morangi. we have a whole team that does the context and connectivity we own it p in one fund but not owning a lot. >> you must have a feel of whether this high growth area of the market which is so favored by investors is going to continue to lead the pack. do you -- do you think it will is this the place that people should continue to look? >> i don't spend -- if you're going to buy an etf and buy u.s. companies and therefore by definition you're buying sta&p going to have that with the nifty fifthy of 1971 people were buying polaroid, xerox and avon. >> it's crazy when you read articles about the dominance of these companies and then you
juxtapose that with what we were saying about -- not we, i wasn't born, xerox, polaroid. but the prevailing wisdom was these companies are so disruptive and so good that it doesn't matter what multiple you pay and then one day it did. >> well, there's no question that that occurs and then obviously what happened to leland o'brien in 1987 when the market dropped 1,000 points. you're going to have a stress tester ets u.s. capital market is 28 million. world equity market $70 trillion these stocks are 15% of the u.s. markets. >> does the nasdaq look expensive to you >> i don't even know what nasdaq means. i don't own any. >> you must be thinking about -- >> no. >> -- growth versus value? >> no. no. >> bottoms up. >> i look at -- i went to see company x, okay? >> right >> i want to buy defense, pet parent companies, i want to buy companies that are involved in organic natural foods and then we look at whether -- you know, we want to buy a company that sold soda -- not soda, sparkling water, okay?
then we look for little niches everywhere there's so many attractive companies so we don't care about nasdaq. >> even in an environment where people look at the market -- >> absolutely. >> i've gotcha if you think there are so many attractive companies, what i'm saying is even in a market guest after guest after guest comes on and says fully valued. >> they still give out the mass -- look, in the 1931 when the market collapsed, movie theater stocks were up 100% so there's always something of interest the question is can we buy enough of them at the price. >> you worry about complacency the vix is under 10. people are too complacent? >> that's what i get paid to do. i climb the wall and worry every day. >> are you tired >> i'm exhausted but earnings season is like now fang hasn't missed when fang misses -- >> everyone keeps talking about the valuation of fang. everyone keeps talking it's too rich netflix comes out and reports a quarter that takes the stock up
$30. facebook looks pretty good so far heading into earnings, we'll see what they report until one of these companies miss, right? >> facebook's been fully valued since the ipo. >> a year after the ipo. >> literally. >> the first year. >> 20% cheaper. >> right, but it came public at like $100 billion valuation, 60 billion. it was already fully valued based on the information we had then and then things change and in facebook's case they changed for the better. >> for a guy who does as deep a dive as anybody we know on balance sheets and understands earnings and everything else as well as you do, do earnings -- do the current level and earnings growth, does it justify where the stock smarkt today >> you've got one other element. what's the multiple? and the earnings -- the euro today is 116 a year ago it was 108. when you're translating the earnings in europe which were improving into u.s. dollars in the second half, you'll have a tail wind for currency that has not happened england is a little different. the town is a little different
those are big pluses there are a lot of little pluses around there listen, yesterday northern trust dropped 8. today bank of new york was up $1.50. how do you do that by buying an etf. on the other side of the corner state street and larry fink's company. >> vanguard. >> they buy a company in hawaii. they don't put anybody on the phone. it's okay. the markets will sort through. >> all right we have a lot more with mario gabelli, including your questions, a lot more on "the halftime report. >> next today, a big blow for a former high flying apple supplier what's bringing the stock to its knees? and can it break out of the slump. plus, pete najarian seeing aggressive chip buying in a company. it's a stock that's about to make a big run "the halftime report" with scott wapner and the traders is back in two minutes
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in case you haven't been paying attention, it is a bad week for chipotle. shares down nearly 10% stock is nearing its low of the year today video surfaced showing rodents reportedly falling from the ceiling at a chipotle in dallas the company said it was an extremely isolated and rare event. this comes, guys, after neurovirus was confirmed in someone in virginia store which was closed y , you know, a couple of days
ago. >> i was pretty bearish on chipotle i'm not saying this is fine or there should be rats falling from the ceiling i do think there is some element to this idea that chipotle has this media glare on it it's such a big, visible brand it's very much in tune with like what millennials are interested in there's probably rats falling from the ceilings at fast casual and quick service restaurants all over the country and it doesn't make social media because it's not chipotle and, again, it's not to say, don't worry about t. it's obviously going to be an issue i'm not bullish on the stock by any means. i think they get a lot more attention than anyone else would. >> how do you own this stock in that sort of environment >> i'm not in. that's a different conversation. >> what i'm suggesting is there was a belief that they were on the road to beiputting all of t past them. >> now they have people looking for reasons to -- >> the stock had come back >> yeah. >> here we are going down even
before these issues surfaced we're fixated on that. we're not talking about the business anymore. >> you know how many likes and retweets you get if you find something wrong at a chipotle. that's what's going on it's hard. very hard for them to get past this. let's talk nike. that stock is rallying after morgan stanley valued it jay is doing it. good to see you. >> good to see you. >> so you think the window to buy nike at the bottom is closing? >> absolutely. >> get in now or don't get in? >> right i think the biggest push back that investors have had on nike over the last 18 months is the growth rate in north america this quarter the growth rate is going to be negative 2%. after this quarter we think the growth rate will start to improve. we see it approaching the mid single digits. that will be a big catalyst for the stock as we go through the rest of the year. >> stocks did a nice little comeback up 14.5% over the last month. >> what's interesting, there's a near term story and longer term story about all of the
investments to really adapt to this changing retail environment where amazon has been so violent. that's something that's helped the stock. >> jay, you just mentioned amazon i would submit to you that's not the issue. the issue is adidas has a lot of mojo going under armour looks like it's fallen on hard times, but i don't think we can couldn't them out. i go back to the last cycle low which was '04-'05, it was nike and nobody else. adidas wasn't even thought of. under armour i don't even think existed at that time now you have real competition directly in their space. does that change the multiple that this stock should trade at? roughly low 20s, 22ish times earnings, that's kind of where i would say it should trade. >> you know, it's interesting, jim. i think the competition has made nike better and helped industry growth rates improve all of these brands are creating excitement for consumers and competition has been a problem for nike over the last
10 to 12 months. i think going forward nike is going to do a little bit better job and bringing more innovation to market that can help them stop the share loss. >> i think you're right. i'm in the name. i'm in the brand full disclosure i bought in the 50s. they've made it more acceptable to be in sports wear in different day parts, if you will, to borrow a phrase it's more of an all day situation, which means obviously concurrent, more sales and so i think that's a new normal for sports wear. i know athleisure was a trendy thing. we're saying it's over i tonight see it's over in real life. >> josh, i totally agree with you. one of the things that under pins the growth of athletic wear is the trend people exercising. people want to dress more comfortably. they want to be able to dress more casually. all of those things are helping the category broadly. >> let me ask you, you have
been, i think, undoubtedly one of the more skeptical analysts certainly of the last couple of years on under armour. right? i remember a couple of at least 50 plus page notes that you put out from the work that you did the stock has obviously gotten obliterated over that period of time is the worst over? and if not, at what point is it attractive for people to buy who love the brand and think that its days are far from over and the trajectory still is very, very high. >> scott, i think we're at a point with under armour where the stock is pretty much -- the stock has adjusted to what the reality is for the company right now. i think they're at a little bit of a transition point. what they're doing, they're still trying to transition they've reached the upper echelons where it's becoming known across the world there's a latent opportunity the question is can they improve operations, can they improve the issues that have plagued them? if they can, the stock can be a big out performer. not enough evidence to know that
that's going to happen you know, there's definitely up side and down side from here on under armour >> go ahead. >> i guess really the same question but it relates to lu lu lemon. they appear to have bottomed at the end of may is that sustainable? >> i don't cover lu lu lemon i wouldn't want to opine on the stock. i would say broadly speaking the potential for athletic footwear is strong. that's good for all the key brands. >> back to under armour for a second the company itself had this run of, you know, however many consecutive quarters of 20 plus perce percent of revenue growth. it was a huge streak once that got down into the high sort of teens, people started to get worried. the company took down its own forecast based on, you know, guidance that they had given out at an analyst meeting. what is an acceptable level of revenue growth for under armour to you at this point >> i think --
>> in other words, if double digit high teens isn't good enough, what is? >> i think what's priced into the stock right now is really strong growth internationally. talking about 40% type of growth and very type of flattish growth in the u.s i think that's what's going to be acceptable. if they can increase that u.s. growth rate that's going to be a key to get people more optimistic that the stock can rally. >> you think 51% over year is justified. >> 51% in terms of >> the stock >> i think there was a mismatch between wall street's expectations for what the company can do and maybe what the reality was. that's adjusted. i think the stock price move makes sense. right now we're at a point if they can do what they need to do, improve the operations, improve the product, they can respond. nike and adidas are making adjustments in the supply chain. under armour doesn't have the ability to do that. >> morgan stanley's jay sole joining us >> no. we like live sports.
basketball teams like the knicks >> you almost hesitated before saying it. it's hard to get the word out. >> it's not the knicks the houston rockets aren't for sale the madison square garden is a $200 stock it's my fang equivalent. i even bought you a shirt so you can wear it on the street. it's bright colored. you can -- you pray for a lot of stocks, you can pray for a lot of companies. >> where's carmelo going >> i don't know the answer to that look -- >> portland. portland. >> there's 24 million shares out. the stock's 4.8 billion. knock the cash off, you're paying $2.5 billion. the houston rockets are going to go for a big number and you can get them for free. the get the rangers and knicks you can buy buying baseball teams. atlanta braves, i was in atlanta watching them play at their new field. >> why did this stock just shoot up 12 points in the last week? what's going on with it specifically >> madison square garden >> i don't know.
>> something's cooking look at this thing. >> nah live sports. >> the presumption -- i don't want to -- >> no, no, you're telling me l melo is being traded. >> msg networks is going to get sold that's going to be the wherewithal to take it private i'm in the name. probably asking you a stupid question >> what is it worth? >> no. >> i am a large shareholder on behalf of all of our clients we have -- >> a disclaimer before you came in. >> i was following josh. he said he owns something and was buying it. i -- i -- i would have not mentioned that except i hitchhiked on his excellent comments. >> i'm being completely serious. i swear i'm not joking the knicks performance though, does it matter at all for the stock price of msg >> hasn't yet. >> at some point does it >> i would hope that their performance improves before somebody tries to buy the knicks because a strong team would do quite well within the framework of what's going on if they have great performance,
somebody else is going to say, i've got to own it that excitement amongst some extremely wealthy individual ballmer paid $2.2 million for the clippers the knicks have a better market, better brand, franchise. nobody would ask me about the clippers you asked me about the knicks. that's because you're in new york. >> well, and i know you're a knicks guy. >> yes >> but, scott, just for the record, i own msg and we've talked about it, right it currently sells at an enterprise value of 2 3w$2 billn that's what the knicks are worth. on top of that you get the knicks, garden. >> and you get the air rights out of hudson yards one of the hottest places in the country along with some other places like reno and -- >> as far as worth though, these aren't even economic deals the ballmer deal isn't what's the multiple his son said the knicks are for sale, not many nba franchises.
he said, i want it, i'll buy it. that's how these get sold. >> josh, you said the same thing when this guy up in boston that bought the football team there, hard to mention the name of this team, but -- and he paid $178 million. today it's worth $3.8 billion. that is not what they call buckas. >> i don't want to dwlos over the atlanta braves investment you have you were down there. >> it's part of a malone touching everything and part of his ecosystem and to the degree that that is a company he has control over for five years it can become a vehicle to do a lot of interesting tax dynamics. we're waiting for the tax rules. there's a lot of things held up until we figure out the effective date of taxes, how it handles corporate distribution sz and so on and the rate. the stock is selling -- 58 million shares of stocks 60 times 25, 1.5 billion you have 7.5 billion in debt you have a real estate play in the battery, you have the
stadium and the team the team has moved into an area which is quite vibrant, but live entertainment, live entertainment is going to be very hard to be displaced by these other forms of entertainment. whether it's live nation in terms of entertainment, whether it's beyonce, whether it's music publishing is also another area. this is a very interesting company over the next three or four years. >> jay, thank you again. >> thank you. let's talk qualcomm. one of the worst performing stocks in the s&p. that's after the company reported a 40% drop in profits let's bring in the number one chip analyst, stacie rascon of bernstein who just put out a note on the stock. stacy, welcome back. >> good to be here thank you. >> so you basically say that the results were even worse than they first appeared. how so >> yes in the current quarter of the licensing results, which drive most of the profits of the
company, were quite weak versus expectations the licensing results also included some amount of meaningful catchup payments from devices shipped from china in previous quarters that wasn't in guidance not only was the number they reported weak, it was even weaker than it should have been if they didn't have the catch up payments in there. >> if you had downgraded this thing to sell today, i don't think anybody would have cursed you out. why didn't you do that >> you know, i'll be honest, i've been fairly negative on it for a while. i never seem to be negative enough it's the gift that keeps surprising me. >> yeah, maybe today in the other direction. where does the apple thing go? and how much does it matter to the qualcomm story >> it is the qualcomm story at this point i think the stock right now is a play on two things, its licensing dispute resolution and potentially the nxt deal but the apple situation is by far the biggest issue.
it's a massive revision in terms of profits i don't see that apple has any incentive to settle at this point. qualcomm doesn't seem to be holding any cards. i think apple would be perfectly con toenlt to take this for the next few days. until then i don't think there's much incentive. >> you're telling me there's no incentive for investors to be involved in the stock. you paint a scenario at least it sounds to me as though qualcomm is uninvestable in your mind >> at best i think it's probably dead money, right? i mean, if you're buying it today, you're buying it probably for one of two reasons, either you're expecting a resolution to the licensing dispute sometime soon in a form that does not significantly impair the current business or you're buying it for the nxp. as to the first, i don't think there's any resolution coming any time soon. in terms of nxp, it is a creed
they need it they're likely to wind up paying more than the deal price just given where things are in activists and other activities once they do close it you have to worry about integration and other risks. cheap all done by itself is never a reason to buy this stock and i still hope for that. i wouldn't want to buy it just because it optically looks cheap. >> stacy, thanks for coming to the phone. we appreciate it. >> thanks. >> number one analyst in the chip space i mean, if i ever heard of -- >> it's a dog. >> don't buy a stock -- >> how does anyone own a semiconductor stocks in one of the biggest semiconductor rallies that's down 18% and not find fault with what's going on at the company and whatever their strategy is. the reality is they're selling chips, they're fighting with one of their best customers in the courts and thoen you look at other semiconductor stocks that are up 100%, 200% in the last couple of months
if you say you're a stock picker it's hard to say how you're long this and not this. >> are you an owner? >> yeah, i'm an owner. >> oh, my god. >> thank you for that encouragement. >> you've got it. >> highest praise. >> here's contrary -- >> good news is you're not correlated. >> historically this has happened before. you go back ten years ago, there was a huge fight, broad com versus qualcomm that was then on par with what you've got apple versus qualcomm right now. you take a look at the various gofts that are going after them versus the u.s three years ago you had china doing that the point that i'm driving at is these things get settled i don't know when it's going to get settled. stacy said years. >> i don't think it's years. >> the guy rasgon doesn't know. >> what if there's no settlement they lose in totality. it's a $30 stock. >> that's a good question, joe if they lose in totality, it goes down. for them to lose in totality you have to basically throw out i.p.
rights, you have to throw out i.p. law it's not like qualcomm doesn't have a case here. >> where are you in? >> about $62 i'm underwater on it the news with apple when it hit, it was a one-day drop. after that you're now playing for the settlement coming at some time. >> do you fear you could be looking at a $43 stock versus 53 >> i don't fear 43 they'd have to lose outright. >> that's a possibility. >> i don't think it's a very distinct possibility because you're throwing out intellectual property law >> they could win, but i don't think that's what you're playing here for >> playing for a settlement that's not going to come for three years. >> i don't think it's going to be three years >> all right got to split >> semiconductor up 45% the last year anything has been better than -- >> let's just stick with the chips and bring in pete najarian you have unusual activity in another name >> i do. it's in micron
actually, if you looked every single day this week i could have come on and talked about the unusual activity in micron, scott. we had 40,000 stocks out in the august 34s on monday if you take a look at the chart and look at the 52 week, can you see a stock that's moving and josh talks about this. pushing at 52 week highs can it break through they're around 32.5. we continued all week so far including today. somebody's buying calls that expire next friday the 28th of july and they bought over 14,000 of these almost four times the open interest were purchased in the july 33 strike call. it's been buyers all week, monday, tuesday, wednesday and today. very aggressive positioning. looking for the stock to potentially break out. this is one of the stocks that's been performing very well. this is an environment where you should be performing well as opposed to what i heard in qualcomm. >> this stock has held in the rise more than a year where that
trend has been your friend if you're shorter term oriented player, very, very simple trade. you enter here, go along with pete, you trail this thing i would not use a daily close. i would use a weekly close on that 50 day. if it closes below getting into the end of a week, it tells you that something in the trend has changed. until then, this thing could continue higher and you know what your risk is. you have that back stopping you. >> pete, do you own qualcomm >> i do not own qualcomm. >> okay. >> i own micron the stock, i own micron the calls i am not in qualcomm. >> good to see you. >> good to see you, man. >> let's give you one more point on micron. the xlk, the tech etf is up more than 7% in three months, micron is the best performer in the index one month later up on average more than 4% ahead on "halftime" mario gabelli answers your questions tweet us use #askgabelli. the fate of o.j. simpson as his
where to get in... where to get out. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. welcome back to the "halftime report." o.j. simpson about to find out if he'll be a freeman. jane wells is live at the facility where simpson is being held jane >> reporter: hi, scott in about 20 minutes that hearing will get underway. we could have a decision before noon local
just a few minutes earlier we had video, bruce fromang, one of the victims which sent simpson to jail will be speaking in simpson's defense. here's what simpson said about that robbery at a previous hearing in 2013. >> i am sorry for what has happened i spoke to -- i have spoken at length to both of the victims. they've apologized, i've apologized i know their families, they know my family and i just wish i'd of never gone to that room. i wish i didn't. i wish i had said keep it and not worry about it >> reporter: now that was 2013 but simpson is more popular today than he has been in decades as award winning programs on fx and espn last year reignited interest in his story. media outlets will even be broadcasting today's hearing life and streaming it.
a lot of people have made a lot of money off of simpson. any money simpson might make would legally have to go towards the multi-million dollar judgment of the families of ron goldman and nicole brown that would preclude the suit he wore when he was acquitted 22 years ago which simpson says he legally possesses. his pension which is now worth over $4 million, guys, that is protected. the goldman and the brown family cannot get that money. >> jane, thank you high interest in that story again top of the hour. the whole thing gets underbe way. we'll see how that unfolds jane wells in loaflock now to sue herera with the latest headlines. >> here's what's happening at this hour, everyone. senator john mccain sending out his first tweet since the announcement he has a brain tumor. he said, quote, i greatly appreciate the outpouring of support. unfortunately for my sparring partners in congress, i'll be back soon, so stand by
meantime the senate opened this morning with a prayer for mccain led by senate chaplain barry black and mitch mcconnell said a few words. >> i know the senator from arizona will confront this challenge with the same extraordinary courage that is characterized his entire life, and he should know that we're all in his corner. >> the justice department announcing it has dropped a requirement that harley-davidson spend $3 million to reduce air pollution as part of a $15 million settlement that the obama administration announced in august of last year if you recall, harley execs visited the white house earlier this year. all right. that's the news update this hour i bet you remember that, scotty. back to you. >> i do. interesting timing >> to say the least. >> interesting timing. >> yes >> it has been made in america week as well. >> that's exactly what i'm
talking about. >> yeah. >> all right, sue. thank you. >> thanks, scott. >> you guys saw that do you own the stock >> no. we own it -- if we own 1,000 shares we have 20 portfolio managers. each one does their own thing so we may i'm looking at the parts that i have my fingerprints on. >> you are yo' not watching, sitting up there watching over all. >> i would buy an indian if i were you and not a hogg. never mind >> motorcycle. >> motorcycle, sorry thank you. >> i knew where you were going. >> i'm looking at the defense asia arctic cat was bought by textron. they have a new ceo. they're waiting for tax changes. if i can depreciate my 727 in one year, i'm going to be a lot better. >> you've mentioned tax changes a couple of times in how you're thinking about certain areas of the market and your own portfolio. do you think we're going to get meaningful corporate tax reform? >> my recollection is you have 33 senators up for re-election next year or something like
that, of which 25 are democrats. you've got to unite the country and move ahead and have a competitive global economy and we are between the notion of global where the u.s. taxes, whatever you earn around the world, and territorial, which everyone else is and the rate, something's go the got to give i think you'll have a meaningful tax because you want a strong economy and market in the spring of 2018 as you're preparing for the election but the effective date is what i'm -- i don't know. and should we be able to depreciate one year? what does it mean for s corps and c corps and llc. they're not complicated, they're just political thank you, darling i got it you know, you've got 33 guys running for senate next year who are going to go look at their constituents and say, look, i did nothing. something's going to move the needle. >> all right michelle caruso cabrera has a look at what's coming up on ""power lunch."" >> central bankers around the world taking their foot off the
gas and nearly everyone, including them, are just so relaxed. bill gross of janus funds joins us on cnbc with his outlook. polaris making recreational vehicles the ultimate consumer discretionary product. doing much better than who hog. we have an exclusive interview with the ceo on what they are doing all right. >> as you guys already know, o.j. is in court he could be set free today at that parole hearing. the decision expected in the next hour. we're going to be all over it, in part because we can't get enough of that archival footage for jane wells who hasn't aged not one iota that and more "power lunch" now 13 inminutes. "halftime report" is back after this don't move
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811 is available to any business our or homeownerfe. to make sure that you identify where your utilities are if you are gonna do any kind of excavation no matter how small or large before you dig, call 811. keep yourself safe. we'll have much more with mario gabelli ahead. he'll be answering your questions live tweet us at #askgabelli. back in two minutes.
welcome back to "the halftime report. i'm jackie deangelis jeff, the dollar index is down trading and how much worse can it get >> maybe a percent or two. it's interesting to see the stock market, s&p 500 up the same . the euro jumped and cratered the dollar broke 94 a very important support level janet yellen is in quite a
pickle as she manages this cycle as the dollar is just plummeting. >> jim iurio, your thoughts? >> in my mind, the fundamental condition is this. it had a reason to rally after the huge selloff in the last few months it went lower and cratered like jeff said. we look at the nasdaq big winning streak at the top tofhe hour "halftime" is back after this. this is where i trade andrs. manage my portfolio.
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811 is available to any business our or homeownerfe. to make sure that you identify where your utilities are if you are gonna do any kind of excavation no matter how small or large before you dig, call 811. keep yourself safe. welcome back to "halftime. let's look at the questions that you all had for mario gabelli. first up, lance asks, thoughts on mgm resorts moving higher today. >> in the s&p 500, that moved up 600 million shares of stocks 33 it's a buy i want to own it i want to own steve wynn that's a much better buy for other reasons and in addition to
that, i like these microcaps el dor rad dado is doing a terr job. >> okay. phil asks for your thoughts on the auto parts companies no word if it's phil lebeau. it might be. >> look, the infrastructure in this world is going to be improved and how do you do that? a derivative is class a trucks $24 stock. and then the retailers, o'reilly's oversold and i think that's okay even though amazon is lurking independent of all of that, my own reaction is that you have to own the parts of the ecosystem inside of the week because of autonomous driving and the electric vehicle and we had a big valuation but a small price that could be topped by someone. >> because nvidia is playing a
big role in the future of autonomous driving and that stock has been an unbelievable winner, are you in that name >> within the framework of a billion cars on the road, 1 billion. and there's a lot of ways to participate. i don't know if -- i'm recommending navastar and inveco which is owned by agriculture. farm equipment is going to do quite well beans are improving. there's a lot of things going on case new holland has to be aggressively bought. >> okay. give me a 30-second rundown of churchill down. >> given the fact that horse racing and observers has been going down for 20 years, what happened to cause the stock to go from 30, $40 to 180 it's called big fish, which is a game like activision
look, we're drib bebling the st out. i would rather they buy mgm. >> are you in the gamers >> yes activision kodec is great we've owned it when it was spunnspun off of another company >> mario gabelli gave me a t-shirt and that's all i got. >> 1955, some of us were here, 2.5 billion here and now there's 7 billion. >> on that note, consolation brands is at an all-time high. final trades >> buy more visa. >> sysco systems has been moving higher i think it continues. >> you don't like the food service?
>> i happen to like this more. >> i'm on the other side from mario. i'm short the knicks >> we have ten seconds. >> discovery is going after scripps. does that deal happen? >> forget that the family wants to sell them. you have to buy ssp as well as discovery. that whole ecosystem including sony. >> thank you "power" starts now. i'm tyler mathisen welcome to "power lunch. it's been exactly six months since president trump took office stocks hitting record highs. unemployment at historic lows. and confidence is pretty doggone good amazon to the rescue sears soaring on news it will begin selling kenmore appliances on amazon.