tv Fast Money Halftime Report CNBC June 7, 2018 12:00pm-1:00pm EDT
possible just a year ago >> and how the additional sports rights bolsters the case of at&t and push to prior time warner that they're going to get the giants now the media consolation might be more legitimate in light of everything going on with the tech giants. let's get to the "half." welcome to "the halftime report." i'm scott wapner we begin this hour with the bullish outlook with two of the biggest names in business and investing, warren buff felt and jamie dimon speaking exclusively on cnbc, their message, the economy is the strongest it's been in years. >> consumers are in very good shape. balance sheet, wages are going up, debt levels are low. all of the credit since the great recession, pristine, other than student lending done by the government
more credit, small business credit, large corporate credit business sentiment is almost the highest levels it's ever been. consumer sentiment, highest levels >> right now, there's no question, it's feeling strong. if we're in the sixth inning we have number 3, 4, 5 in the lineup business is good >> what does all of this mean to your money and the markets let's debate with joe terranova, josh brown the brothers najarian are here also liz ann sonders, charles schwab chief strategist. pete, let's kick this around, if we're in the sixth inning of the economy as jamie dimon says what does that mean for the bull run? >> i think the extension past, as most of us are thinking in our opinions it was a little farther than that. nonetheless, the fundamental story is something we bring up, scott. we've talked about it time and
time again and that's been the right thing. dot fundamentals work. with technology in that space. obviously now with energy with that push, energy again yesterday and today getting a little bit of push if oil can just hold up in these areas i think the energy space continues to rise because it had absolutely not gone up with oil in the manner that it should have you look at names like exxon and chevron. they're moving with oil grinding in this area if oil starts to move higher, they'll accelerate but i think they'll continue to catch up with the lag >> liz ann, you say we're definitely in late cycle what do you make of what nevers buffett and dimon had to say on cnbc >> late cycle is more in time than temperature i agree we're finally getting into a high trajectory of growth, but we're not at the point where we're overheating. so, i think the distance in time is much larger from kind of the heat from a temperature standpoint i think the one thing we have to
be mindful of, one thing that the market rolled over in february even though we had the short vol trade explosion but we also had sentiment that got frothy of t expectation either mindful getting set too high or some good news with earnings getting extrapolated and growth terms too far into the future. but the data clearly is quite strong and the leading indicator are giving no sense of recession anytime in the near future >> liz ann, you know there's a difference between where the economy can be and where the stock market represents where the economy can be >> true. >> so, how do we play that if the economy is sixth inning and maybe there a long cycle than perhaps we thought, the stock market can in many ways already reflect a further down the road how does it all factor in for investors then >> i think ultimately as is often the case inflexion points in the market it probably comes down to investor center attempt.
we had the correction in february we had the retest in march i think that did a decent job of pulling back sentiment that had gotten to levels of fraught, both behavorial levels of sent tap and attitudal measures of sent tall. anecdotally, i think we're picking up the optimism again. nowhere near the euphoria you expect to see. and then go back to the technical conditions, look for convergences, as well as concomphet tricks like valuation. >> all right, josh, dow's on track for its best week in a few months the gain, 135 to the upside. the russell, nasdaq, obviously there's been selling today in tech how does this play out >> you have selling in tech but look what's making a record high, consumer discretionary another sector all-time high kre, regional banks. yesterday, quietly, nobody mentioned in the media, the
record high. an equal-weight index of small and midbio technology stocks has nothing to do with the cycle. stocks are breaking out. even the sle, you got a plus-2% for that group on the day of the market there's a repeated theme i've been mentioning on the show. there's an expansion of the new high list. if you look away from the top-ten, glamour, giant tech stocks there's a lot else happening. the other thing i want to throw into the previous discussion i think liz will agree with me, being able to pinpoint it in the cycle is more than an art than a science. the reason is there isn't an average length cycle you very long and short expansions the way an average gets formed by widely desperate points of times. i think there's guesswork in making that comment is the first thing. and the last thing i'll say, let's say we're in the ninth
inning you won't know it until six months later by the nature of how we classify that. i think investors have to be aware that we've been in expansion for a long time but i don't think you can make a portfolio change based on somebody saying it's the sixth inning or ninth inning >> unless, liz ann, you can weigh in on this, unless what appeared to be the further along the road cycle was extended more than people think by virtue of the tax law and regulation coming off and just other things that have been happening >> i think it's obviously added juice toward this timewise latter stage in the cycle. but, again, there are risks associated with that you know, one of the criticisms of fiscal policy at this point in the cycle is that it might sort of accelerate the pace of pickup in inflation which in turn could mean the fed has to get a little bit more aggressive and ostensibly make the cycle shorter than it was but i agree with josh.
at this point we have go back to the tried and true and look at the indicators not only rising but rising at an accelerated pace we know the markets tend to discount them in advance but i also think there's still a lot of uncertainty a lot of now what is starting to cause a little bit of coming off the boil in terms of corporate confidence are trade issues. and i think that's the near term wrinkle that makes this a little bit trickier to try to get a sense of innings which i agree, i'm not sure that's such a valuable exercise for the end investor >> if i told you s&p can go 3,000 by the end of the year, does that sound reasonable to you? or like i'm ahead of my skis? >> well, that would mean that we get a little valuation expansion. i think the conditions are not yet restrictive enough that suggest we have valuation contraction. but i do think you need to see earnings continue to move up in order to allow valuations.
i don't think we're in an environment that valuations can expand i think the market will grow at the same pace of earnings. now -- >> i just want -- i'm sorry to interrupt you, liz ann, i just want to note that japanese prime minister shinzo abe arriving at the white house as we speak. up can see he and president trump there with the greeting there just inside, of course all ever this happening ahead of g7 up in canada which the president will head to this weekend. there will be a joint news conference later this afternoon at the white house which of course you'll see live on cnbc the two leaders going inside forgive me, liz ann, for stepping on your toes but finish your thought if you would. >> yeah, just the next quarter, obviously, is extremely important for the earnings we got the big lift when went from 11% expectation for 2018 to 21%. and we ended up in the books in the mid-20s.
expectations probably around 21%. i think we still can get acceleration in the second quarter. but a lot of the front growth is front end loaded and then you do get back ended loaded i think the market can move along with earnings but i don't think we have the conditions for pure valuation expansion absent that growth in earnings. >> doc, the bar is high, you get 20% earnings growth, liz ann's point, you better keep it up if you think the stock market can have these leaps and bounds forward? >> throurue, and one of the this we've recentlial agreed to on the desk, judge, you get so much for volatility which means premiums you have to pay for protection late january, leading into the super bowl and so forth, we saw volatilities quite low, spike to about a 37 reading on that big dump-in, in the beginning of the february. now, all the way back down to 11
for two days in a row. we just got over 11, now we're at 12. again, to liz ann's point about temperature and time if you can't time or figure out what the temperature is going to be, you sure as heck better protect. and you can do it really cheap right now. so, if you don't want to get blown out of the water, why wouldn't you, if you have an adviser that is capable of doing it -- why wouldn't you put on some protection here it's not expensive it's very cheap. and if we are in the sixth inning or fourth inning or whatever, you can ride that out without getting blown occupy >> what's your deal? >> i think the three and four hitter is the domestic to u.s. consumer to josh's point and u.s. corporations and i think that's the important thing for me, i think it means u.s. over europe particularly in the last few weeks it's focusing on the nasdaq. it's focusing on the russell ai agree with pete there is that siynchronized
growth here in the u.s i do think in a portfolio the one change in 2018 that's been consistent throughout, and you were telegraphed in the first couple of weeks by looking at the bottom line proxies. and bottom line proxies have to reduced to allocations >> utilities i'm glad i brought it up we mentioned yesterday we've seen a rollover because of what we've seen in rates >> they were down nearly 3% yesterday. and a lot of people -- >> but now, after all of this damage >> i still think when you look at utilities, when you look at consumer staples not necessarily the leads. but when you look at that bomb-like type proxy in the trader blitz we're going to talk about a consumer staple that thoroughly poi thoroughly disappointed. i think it's been proven over and over again it's just not
going to work. i would even say the strategy of using high yield, again, that's something that the last five years investment managers have done very aggressively you've got to move away from that >> liz ann, you got dimon and buffe buffett, obviously bullish, that's clear the issue is on italy that came to the forefront within the past couple of weeks. rates in the dollar play into how the even merging markets are here how do you assess what's the best place to be and to what level? >> well, to go to the beginning part of that question i think we are in an important point in time where liquidity tide goes out. they often say when the tide goes out you start to see who's swimming naked i think we see pockets where tighter conditions, tight monetary policy where liquidity tide starting to come out has had some implications. comes the stronger dollar whic
in term in more dollarized world we see the fractions i don't think any of them individually or even collectively signal impending doom for the economy or the market i just think we're in a different part of the monetary policy cycle that we have to be mindful that we have not rewritten the rules that tighter conditions, less liquidity, lighter monetary policy has implications i think volatility is one of them and some pockets of strain particularly, if the currency continues to strengthen, we're going to have to keep an eye on those things. >> we certainly hear what you're saying it's the same thing we discussed this week with the latest letter over at bridgewater, warning what happens when you get into this different level or a difference in where monetary policy is. let's pivot now, aside from weighing in on the economy and markets, buffett and dimon also addressed their op-ed in today's "wall street journal" which
takes tame in short-termism arguing that the company should stop the practice of giving quarterly guidance >> when companies get where they're sort of living by the so-called making the numbers, they do a lot of things that are counter to the long-term interest of the business and i've never seen a company whose performance has been improved by having some forecast out there by the ceo that we're going to earn "x." because it's sending -- it's not only sending the wrong message and delivering the wrong results to the company and total country, it can often put a company in a position where management from the ceo down feels obligated to deliver earnings and therefore do things they otherwise wouldn't have done if the board says we've got a great investment opportunity and it's going to cost my a couple hundred million dollars this quarter, somebody like warren would say absolutely do it
don't hurt your company because of a short-term thing. >> pete, you kick this around. it's managing for ten minutes versus managing for ten years perspective, have a point? >> yeah, i think they make a good point when you talk about the guidance you want to city a measuring stick where they are >> isn't that what you do for a living? you're a short-term guy? >> yeah, but, we talk about creating opportunity all the time i think if you listen properly and invest properly when you hear these earnings calls. take a look at somebody like target, last quarter they came out and said they were going to spend $7 billion going forward as they continued to change stores. when they can giving you that, they were giving you a future, several years out in the future and yet people were trading on the immediate, here's another one, intel he did it with two of the biggest acquisitions they've ever made gives them position to
compete in the next world but he led everybody know, hey look, it's going to take time. now they have a king when they go to data center, ai, they've moved into position. time and time again, you've got to understand the company you're buying into and whathe didy tell you going forward what's the two-year, the three-year they will tell you that but everybody wants to focus conone quarter. >> practice of giving quarterly guidance is lessening over the last couple of years 2016, larry fink, jamie dimon and warren buffer fete pbuffett that og. everything that they said today i agree with i have no issue with what jamie dimon said i was a little disappointed in warren buffett's comments because here's a great opportunity on the part of warren buffett to say, okay, i've spoken to tim cook about this i've gone to tim cook. apple giving quarterly guidance. there's no need for 'to give
that quarterly guidance. we've had that dialogue. i feel as though, offer a replacement to the companies still doing it because, scott, there has to be a reason -- >> i understand you saying what you being disappointed in what warren buffett said. what was he supposed to do >> warren buffett is the investor jamie dimon is the ceo he's spoken. i would have liked him to say i've shared my belief with them. that these are fantastic companies that will be around, stand the test of time and realize great stock appreciation and the current practice of them giving quarterly guidance is not needed >> isn't that by virtue of the op-ed, he's doing that did he say he spoke directly to tim cook >> no, but -- >> no, but there's a great example in that lesson, here is
someone saying to that ceo of a company that he owns have that dialogue show that example. >> we don't know what conversations he's had with tim cook or not. the op-ed speaks for itself. liz ann, how do you view all of this and what you do for a living? >> so, two perspectives on this. one, i agree with the point of view that it stimulates too much of a focus on the short term and probably causes companies to make decisions that are not in the right interest of the long term in addition, i think it's exacerbated kind of the plague on individual investors because time horizons have shrunk precipitously and that's generally not to the gebenefit f long-term. and we don't do guidance we actually provide framework and update as we move along. so, i think as an example, that's one of the ways to still provide wall street and the analyst community with the information that they need
but that step away from that traditional quarterly guidance and i would expect, especially in the wake of this op-ed, the intention that they are rightly so bringing to this idea, you probably see more companies starting to take steps away from that traditional guidance. >> that's a good point josh, schwab, they don't give quarterly guidance you've been an investor in the stock, correct me if i'm wrong >> right i would never buy it or sell it based on anything that goes on in one quarter that doesn't bother me at all. in fact, i'm glad. there's a great by william thorn dike call ed "the outsiders. it's about eight ceos. one of the things they didn't talk wall street they didn't throw parties or participate in the conference call in some cases they weren't even holding conference calls these are companies that you know, ratheons in there.
"the washington post," buffett never played the game. i think there's a lot of room, especially toward the bull market now for ceos to say, none of this has been necessary we don't have to tell you anything look, we've executed that psychology, though, changes on the downside of the cycle when you hear increased demands from shareholders about accountability and transparency and they want to hear more so i think there's a cyclical ebb and flow and the only other thing i'd say to that is, what's the alternative to giving quarterly guidance we're not going to talk to you for 20 years, trust us i don't know that works for shareholders i don't know it's better i think it's a balance look, we're going to give you some idea of what we're doing. what our benchmarks are. we're not going to give you nine cents next quarter 12 cents the quarter after to joe's point, to liz ann's point there are companies doing less of the specific and more of long-term vision i think it's working ago
>> judge, what they did in that op-ed, short-term capital markets have discouraged long-term companies from going public true what they're absolutely wrong about is it deprives the economy of innovation and opportunity. i'd point to uber and say are they publicly traded i'd point to palantir and airbnb there's a whole host of companies -- >> but you don't think -- >> let me finish, first. i do think they're speaking to their investors. but what i'm saying here, they're arguing saying you shouldn't have to give guidance or you're not going to be able to innovate. you're not going to be able to create opportunity because you have to deliver so much on the short-term that's what the op-ed said >> that's suggesting that you're focused on the short-term that you're managing for the penny beat here and there for a quarter. doing things in terms of a business, you're not investing in a way that would create and foster that innovation, because
you're so narrowly focused on the eps line and earnings report >> right i agree with that. and the second part of that, judge, because of companies like palantir, like uber haven't come public, it's depriving us somehow of innovation and opportunity. that's completely false. those companies i just named are innovating they're some of the most innovating companies back to the cnbc disrupter list, virtually everybody on that list is on there because they have that long-term view they haven't elected to go public so, you have a decision. do i want to take this company public and if you do, you're going to to have to live with the short termism that these two gentlemen have cited aas a negative but you have to deal with it you don't have a choice. that's why you see capital marketing going come from people not going puck because of that >> i don't know it's 100% true
that's the reason, because they don't want to talk to the street >> i didn't say that >> i think there's more options for financing a startup and keeping it private than there thers a deer market. >>h. yea >> i t you have a choice so, you -- you don't have to -- you can set the tone up can say, okay, we are now public we are going to report our results. that's actually a requirement of the new york stock exchange. but there is no lawen o ee on tk that says we have to come out each quarter and give you an idea what each quarter looks like >> true. >> something invented in the 1990s. jack walsh did it successfully saying we want the same halo around us that jack has. >> and we know there are some people i've read it today of trying to hold up ge agency ts the postert happens when you're so focused on the penny beat, quarter after quarter after quarter and here
we are wondering where we are. >> the other stream, though, is bezos, and he's not coming out on conference calls saying next quarter is looking a little 20 centsish he's not playing the game. like jon said, you set the tone, if you have investors that say i would invest but not giving me enough look of what the next quarter looks like, just sell the stock. >> liz ann, your last thought. >> i think for the companies on the small capper part of spectrum, i think the important opportunity there just aren't anywhere near the number of analysts covering companies down the cap spectrum there's greater and greater by the analyst community into the larger economies i think there's less pressure by virtue of smaller companies to take that into small guidance. >> liz ann, it's great to have you on >> thank you all right. we move on, to big hitters
speaking in the last hour. if the deal 2018 corporate governance company elliott management's paul singer and nelson peltz and leslie picker has it >> that's right, we heard from paul singer and nelson peltz both with one-on-one interviews with our own jim cramer, spoke about that op-ed you that guys were talking about on the desk both of them big investors agreed with buffett and dimon that doing away with quarterly guidance would not be a bad thing for corporate america. but other headlines i want to bring you guys from those two sit-down interviews, peltz provided comments on procter & gamble and ge, two companies where his company has board seats and retained them recently with regard to p & g, he spoke
about before getting on the board before the proxy fight he said the structure that he underlined is under serious consideration in his mind providing credibility to the leaders of the various business units. with regards to general electric, he said that the market is actually struggling to understand undisclosed liability. they're worried that there could be more undisclosed liability to come from an activist standpoint to get on the board he knew they would be good at fixing companies but he didn't know he would be good at fixes undisclosed liabilities. with regard to trade he said he speaks a lot will the president. speaks very frequently with the president what the president is doing with regard to trade and tariffs are actually very brave. but he did say he does not believe there will be a trade war that comes from all of the back and forth you that see on that front now, interestingly, from singer's comments, they're very top -- very high-level with regard to the state of activism
and the changes that he's seeing he's saying in some ways that a activism is getting harder to do he mentioned the defense bar, a team of lawyers and professionals whose job it is it to really defend companies against activism and he also talked about hiring requirements and where it could be more telling for activists to build stakes in a proper manner that would be beneficial to them and also talked past this move towards passive investing and to work more and more with index funds and passive products in order to help their case in proxy fights, guys >> goostuff, leslie. thanu so much. leslie picker in the city for us let's go to sue herera who has the news >> indeed i do it involves t-mobile and sprint and their efforts to merge the justice department, according to reuters is probing the t-mobile/sprint merger
effect, or possible effect, on the smaller wireless companies that may be out there and whether or not that would eliminate competition. we should note that antitrust investigations are a normal part of the merger approval process apparently, according to reuters, doj is examining how the proposed merger would affect prices for the smaller wireless operators. that's according to two sources that are unnamed in this reuters report not too much reaction at this point in t-mobile and sprint by the way, reuters apparently reached out to both companies. and sprint did not get back to them and there was no comment from t-mobile or the justice department scott, back to you >> sue, thank you very much. >> let's go to dom chu who has another news alert dom, what do you have? >> bryan colangelo the president of basketball operations is out. he has resigned and the sixers has accepted his resignation this follows into an investigation into social media accounts that may have been
linked to him that posted sensitive team information on personnel and other matters. an investigation by independent lawyers revealed while he may have been guilty of some things it did say that we believe there colangelo was careless and in some instances reckless in failing to safe public service outside of the 76ers organization the twitter accounts lawyers found were linked to his wife. they are looking to move on, scott, an interesting development on a social media link story we've been following for quite some time in sports. >> i was wondering, dom, thank you, how all of this was going to play out after the initial reports came out about those alleged accounts >> my wife has a burner account. she just keeps tweeting all day. let's retouch the markets here as we're about to hit
12:30. dow jones up nearly 150 points closing above 25,000 for the first time in a while. 25300. we'll call it that just about on track for the best week in three months >> you know, yesterday, we talked a lot about the retail names. we had the conversation, i think it was a downgrade of macy's and was that warranted or not. again, there's follow-through again today in the retail space. i know myself personally, i've done a bad job allocating to this rebound that we're witnessing right now it is really something that is gaining to gain traction momentum, whether you look at kohl's or macy's the quick serve, sonic with a fantastic day. >> for me, it's financials i mean, that stands out to day two of this, right take a look at what's happening right now with goldman sachs and morgan stanley the names that have not wanted to move. a bit of a pause, obviously year
to date, not so great. 12 months, not so bad. 2017 was strong for the banks. we've seen more and more paper, scott. we've seen it time and time again. is this the siem whetime that fs can stay and financials continue to go up, i think, very much as we talked about in energy. >> there's a look at the it. here's what else olftime report. straight ahead -- the call that's moving mcdonald's the stocks are up. before the break, our partners at kensho of perhaps with tess letter 9% in a day and shows it riseses another 9.6% in the next month for more go to cnbc/kensho
you see $67. it's the biggest dow gainer at 3% it's again in consolidation mode, really, for the better part of the last month at least. down 4% year to date it is flat over the month. used to like wendy's, now mcdonald's is the best pick in the restaurant space guys what do you think josh, i go to you. i don't know why >> i wasn't prepared stock is not a very volatile stock. it had that big breakdown that you see in front of you beginning the year, late january when the whole market broke down and this one hasn't recovered like a lot of large cap blue stocks have. today was a really big jump. i think it was pent-up and people wanted a reason to buy it i didn't see a lot knew in this report that i think people weren't expecting but perhaps the discount rate is higher than the rest of the street it's a positive call if you own the stock, you're obviously happy about it, but
this has been a pretty calm name >> yeah, is it about to break out? >> i'll tell you what, i think technically, it looks like today is a day that you could say it's beginning to break out you have a strong price gap between upper 162 and 163. it's graded incredibly well through 168. through the previous highs 167.95 through april 7th screams very high on a quantitative basis, i can tell you that we ran it this morning you're seeing range expansion, positive momentum and consistent with the fundamental story the stock was put on goldman sachs watch list a month ago and now to your point the stock is in consolidation. >> pete, they like sales to pick up they like the fresh beef initiative they've got going on there. >> and the self-serve kiosk. and the idea that they're going to expand that rapidly, 1,000 stores a year. >> are there other names that you prefer
-- >> i think we're going to the president. >> -- thank you very much. it's about attitude. it's about willingness to get things done. but i think i've been prepared for this summit for a long time. as has the other side. i think they've been preparing for a long time also so, this isn't a question of preparation. it's a question of whether or not people want it to happen and we'll know that very quickly. [ inaudible question ]. >> well, it's going to be much more a photo op. it's a process i think i've told you before it's not a one meeting deal. it would be wonderful if it were there are a lot of enemies out there. a lot of dislike, a lot of hatred between countries this will not be just a photo op this will be at a minimum, we'll start with perhaps a good relationship and that's something that's very important toward the ultimate making of the deal i'd love to say it could happen
in maybe one deal, maybe it can. they'll have to denuke if they don't denuclearize, that will not be acceptable we cannot take sanctions off the sanctions are extraordinarily powerful we can do a lot more, but i have chosen not to do that at this time but that may happen by the way, with iran, we're adding tremendously powerful sanctions. i think they understand that well i think iran is not the same country as they're looking so much to the mediterranean like two months ago it's a big difference. number one, nuclear. but you also get the side benefit that iran is a different place. we'll see what happens and maybe ultimately something will happen with iran. but for our meeting next week, i think it's going to be a very fruitful meeting i think it's going to be an exciting meeting i think we're going to get to know a lot of people that our country never got to know. this is something that should have been handled many years ago
by other presidents. it shouldn't be handled now. it should have been handle yeago. but it is being handled w. and i'll take care of it than thank you very much. thank you very much. >> no, i'd love to pubut no thank you very much. >> that's president trump there in the oval office japanese prime minister shinzo abe. they have just concluded a conversation they're going to having that
joint newser later in the afternoon. it's clear the president is already looking squarely at that june 12th summit in singapore with kim jong-un of north korea. the president calling for a full denuclearization during those talks. aim mon javers at the white house for us, eamon, the president putting his chips on the table. >> reporter: that's right, he said he doesn't need to prepare, it's all about altitude. and whether about both sides want to do a deal. it's not so much about preparation, it's about whether or not there's an willingness. it's possible that nothing comes of it. it's possible he may have to walk out of the room, goshgts g i negotiating room next week we'll see. the president expressed that frustration we heard from him again and again that this should have been handled by previous administrations but he says, he is going to handle it. clearly, the president is
expecting something to come of this summit but leaving an open door >> eamon javers on the north long as always for us. coming up jon and pete follow unusual stock moves one is down 3% in three months the others 70% to date and michelle cabrera has more. >> president trump is set to hold a news conference with the prime minister of japan shinzo abe. we'll see even more of the president than we just did we'll bring you that live event. and senator warren is joining us and why he doesn't think facebook or google should be broken up. one analyst says there's one factor you may not be thinking about that would hit amazon profits. we'll discuss.
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i'm going to tell you it was pretty interesting, just yesterday, scott, a monster buyer of the calls at mgm and they were actually using a very complicated spread 10,000 of these being bought today very aggressively. i actually looked back this name has hit multiple times over the last month. five, six, seven times over th last month they haven't been right yet. stock's sitting in the same place as it's been, 31 they continue to come after it we've had win-call buying with casinos. i'll be in three to four weeks >> what are you seeing? >> judge, jack dorsey, square. they bought tell me at the 65 strike with the stock at 60 bucks. now, they also sold a higher strike, the 70s against it,
judge. so, that's a culvert cal spread. there you see that huge spike in volume it's worth noting and it was certainly, for me, anyway, i believe, worth getting on there and surfing it i'll probably be in this one for about two to three weeks. >> guys, good stuff. come back this way >> tha y, nkousir. >> where are we going now? we'll be right back. this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.
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all right. it's time for "the blitz," first up, shake shack. 52-week high stock up 50% this year you're getting mcdonald's, you are know you're getting shake shack. >> the food. >> yeah. you just know. >> licking his fingers due diligence. >> that makes me uncomfortable >> listen, it's a tiny stock sale what do the people miss ab this company market cap is still tiny it's so small. just a little good news, easier comps does not take much for people to pile into this name. this stock a year ago was like 21 so, it's just had an incredible run. and i think that can continue, as long as they don't blow it, so far as, they haven't. >> do you like peanut butter and jelly as well? >> what? >> do you like peanut butter and
jelly as well? >> he could have got a double. >> smuckers -- falling to a 3 1/2 year low weak guidance. speaking of guidance, joe? >> lowered frto $915. you could say this has taken down smucker down. that even has not been a catalyst they're talking about higher commodity costs surrounding that i don't want to buy it just yet. >> carl icon building a small position in allergan what do you think brent saunders feels today? >> he's feeling a little bit of heat. >> put the heat on with that letter now these reports -- >> talking about selling off a couple assets that are not core
assets to the company. they've done some changes within they are asking for more david tepor is being much more aggressive, splitting the chairman from the ceo role there's a little bit of pressure you can see today on the stock, it's a nice bump to the stock. >> somebody's betting something's going to happen. >> there's going to be changes going on there that's very interesting. >> interesting >> icon has a long history with saunders from the forest lab days. >> yes he's been in the name before as well >> yes, he has. >> we'll see how patient he is this time. >> we'll see what happens there. thor industries missing on earnings tariffs imposed on steel produced, quote, headwinds john, you used to own it. >> what do they say about buy rumor sell news, scott in this case, it's sort of the reverse. people knew about the sanctions hurting this company aluminum and steel big consumer of that $160 beginning of the year,
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miss the blitz the call of the day or unusual activity no problem just go to cnbc.com/halftime plus, breaking news and analysis of all the top stories go to cnbc.com/halftime. all right. welcome back you talk about the chips a lot i want to hit this lam research, you're getting some banged up stocks here applied materials. seagate. >> yesterday if you take a look at amd, it was up 5.5%
a little bit of a wash this is a stock i really do l e like i own calls in amd right now i went all the way out to october for those. today a few minutes ago somebody bought more upside expectations in amd. >> would you say he dipped into the chips? >> hey >> i'm very bullish. >> he's dipped into a chip or two. >> i'm bullish on it from a secular perspective. i think this is a really interesting cycle for the chips. they're in so many more devices beyond high tech things we normally associate i like when you have a day like this in the group. intel, everyone knows this but some of these other names is starting to look good. as long as they hold their longer term trend lines, there's no reason why you slhouldn't be
looking at them today. >> you have got seagate, which allegedly they're pricing this secondary or whatever they're doing at about $56.50. that's the rumor i haven't seen it written down but seagate is under pressure. >> i mentioned the emerging markets earlier today. take a look at the ewz brazil is getting hit pretty -- >> hard. >> yes. >> that's why i would suggest when you're investing in the emerging markets, you're investing in the consumers, the strategies and not specific countries. you get a result like you get today. >> yeah, brazil, this is just a nightmare. they've got elections and all the rest that's going to be going on here. the fact that this is getting slam danced because they basically dictated to a publicly traded company, even if it's more or less viewed as the country itself, when you say
you've got to sell stuff below cost that's not a good time. >> i totally agree with joe. you do this in a diversified way. you don't play the game where you figure out which country to own this month >> final trades. pete, what you got >> it's a name i've been in for a while. i am reassured, it's polaris you talk about people with money they can use in other different places there are fun places out there minnesota company, by the way. >> big shock. >> i know it shocks you. they're really well run. >> how many of those do you own? >> porla >> porlalaris or minnesota companies? >> polaris >> you got to have fun out there. >> doc mr. minnesota. >> good job. >> you're a minnesota guy, too.
>> chicago guy he's been in chicago since '81. >> i'm adding to the square position i talked about on unusual. it continues to build. sq. >> intel if you felt like these stocks have not let you in and you've watched them grind higher, these are the days that give you a chance. >> honeywell has been in a sideways range it looks like it could be breaking out if it does, i'll be adding to more i must mention i want to wish you the best of luck this evening as you watch on nbc a very big game. >> thank you very much thank you very much. i appreciate that. capitals, of course. all right. i wanted to hit you more on the industrials though since you were going honeywell obviously, industrials are doing well what's your longer term outlook? >> i think industrials will work well not only this year, but i think in 2019 as well.
i go back to listening to nelson pelts potentially having to break up ge. that's why i mentioned honeywell today. that's where the opportunity is. overall, the sector industrials i like them. >> the dow is up 115 it does it for us. power lunch starts right now thank you, scott it's the big headline making interview of the day warren buffet and jamie diamond weighing in on the markets, economy and trade and why publicly traded companies need to scrap quarterly profit forecasts. america is slapping china's zte with a billion dollar penalty in the deal to end crippling sanctions. wilbur ross announcing the news here on cnbc, but did the u.s. go far enough? everything amazon, scoring a big win over the battle for streaming sports get your game face on, power lunch starts right now