tv Fast Money Halftime Report CNBC June 6, 2019 12:00pm-1:00pm EDT
monday and jobs number tomorrow. >> i was going to say jobs tomorrow and beyond meat, zoom, docusign after the bell tonight. >> and morgan stanley throws in the towel on amd that stock is up. >> we were wrong, and they were. let's get to the judge "the halftime report. thank you. stocks off to their best june start in 20 years. can this newfound momentum continue with several critical events looming it's 12:00 noon. this is "the halftime report." four days for tariffs possibly going into effect on the mexican border 12 days to a bad decision. if the market is moving now, which side of the train do you need to be on? the halftime investment committee is ready to weigh in "the halftime report" begins right now. here's scott wapner.
welcome, good to have you with us on thursday. our investment committee at the desk today the ceo and portfolio manager at gilman hill asset management, kevin o'leary, mr. wonderful, the chairman of o shares etf, cnbc contributor let's start with stocks looking to continue their strong week with the best of the year with the s&p up more than 3 1/2%, 3% for the dow. all ahead of tomorrow's key jobs reports. threatened tariffs against mexico monday. i think carl quintanilla said i well, tariffs talking, jobs, stocks are up. what's the momentum? it will be an interesting story. >> it will be an interesting three days to see if we get another video like we did saying this is the greatest economy ever yet we need a rate cut. we will see what happens from the jobs report and what the reaction might be. i would use the indicators in the market one thing i would look at is the
value of the u.s. dollar which declined 1 1/4% over the last five days. what is that telling you i think it's somewhat favorable for asset pricing and telling you a little bit about the sentiment surrounding the federal reserve. i do think the market firmly believes that they're going to take back the rate hike from december, and i think a lot of that catalyst could come in the form of what the jobs number is tomorrow i did not mention sunday and what we could be faced with tweets as it relates to the u.s. and mexico i think whatever that might be, the optionalty on having that rate cut i think still dictates you play offense. >> i mentioned how apple's had this comeback, right, the best couple of days since january and it's up as we're looking slightly now. >> you called it. >> this comeback in june, it's not just apple, and it's happened this week, obviously. nike's up 7%, citi-6%, dupont
13%, nvidia 5%, verizon 6%, american airlines 7% can you keep up the momentum or is everything going to matter about what happens monday? i don't want to discount the jobs report tomorrow because you have the fed in focus too. >> i think you're right in terms of there's so much going on in terms of news, we talked about it being a trading market and it absolutely is. yesterday we had a little bit of back and forth, and i was going back and forth about whether or not we have volume or not. i say there is and there continues to be. you look at june, we have incredible amounts of volume trading now. we have extremely liquid markets trading now. and everything we've been talking about since the very beginning of the year has been very short-term trading. i think that continues, scott. i think it continues because we're no longer just at war in terms of a trade war with china, this skirmish war has spread out all over the rest of the world and because of that, we absolutely have to be ready for
any kind of tweet, any kind of news that comes out of any sort about trade right now. regardless of where it is, china is the biggest and baddest of the group but we have to keep an eye on everywhere else we seem to be threatening and the president has been very, very aggressive on his stance. >> kevin o'leary, may was terrible june off to a bad start. with the stats about the best june in 20 years, what are you doing in the market? >> stay long everyone's predicting and we've been waiting five quarters for the inevitable slowdown and recession, it's just not happening. it's fair to be nervous about tariffs. but take the worst-case scenario, slam the 5% on mexico, it's not really going to affect earnings even the next four, five quarters the way people say. that supply-side chain can absorb 5%. if it goes up to 20%, i get it but i think the mexicans will respond. that's why the market is okay with this. it's a negotiation.
>> markets will not wait around to find out how bad markets can be you have a risk to the downside, do you not >> i will tell you how bad it is, a bunch of companies i have ownership in, small private businesses and i get to see the cash flow every week, they will see it first in my opinion i will see it slow i will see cupcake sales and credit card sales and stuff i tell to american consumers, they're on fire. but we're still every month getting more cash flow so i don't see this inevitable slowdown i don't see a recession. i don't think the fed should cut. i say stay the course and let trump do his crazy stuff and get it negotiated. >> i agree 100% with kevin and i don't have the same advantage as you do looking at little companies but i look at my companies on one-on-one bases and i try to assess the worst case of trade is, there's nothing. i spent the last two days at the national real estate investigation trust conference,
22 management teams in two days and almost no mention of trade it's not affecting their businesses and the retail that were talking about them said stuff look like, our tenants deal in fact they don't deal with the news media. and the fact is their business is good, and they're focused on the long term and development of portfolios i'm looking at the stock but it's not having major impact. >> so i'm not going to put words in your mouth but you're telling me if the tariffs go into effect on monday, the stock market is going to say no, it's not going to be all that bad and stocks will just go up? you believe that >> okay, there's the emotional side and reality. >> whatever the side is, are stock going up or down on monday if there are tariffs in mexico >> maybe they blip but if i'm a long-term investor, i don't care about blips. $50 billion on a $19 trillion economy, that's not much amazon alone does $240 billion revenues, walmart $130 billion the numbers as they affect the companies i'm investing in are
not meaningful to the bottom line. >> i think that's one of the keys you just back and forth discussed, and that is you're looking at something that isn't going to move markets for one day or four hours, whatever. if it happens midnight sunday evening, monday morning, if it happens then, scott, is there going to be a reaction of course there is how long will it last? how long has the last one lasted how many head fake moves have we seen where if you're smart enough or steady enough to hang on, you did fine and if you're one of those folks that reacted to that sell-off, unless your reaction was buying, you are in a world of hurt right now. you're underperforming like crazy or just keep losing money because you get in because it seems great and all of a sudden, boom, it goes down and you say well i got to sell out at the bottom you can see the v-shaped bottoms over and over again this year even if they're not on 10% or 4%. >> let's not put the cart before
the horse, the hoar being trse jobs report tomorrow we have to get through that before we consider what happens sunday. >> i think it's far more important. you may disagree there's a need for a rate cut you can make that argument but the market expects a rate cut. we're up 2.7% so far this month because, why the market realizes based on the commentary from the federal reserve that they're open to cutting rates. that's why the market is bouncing. >> joe, the market is pricing in three cuts this year. >> absolutely. absolutely. >> that means they better get to work quick. >> i think tomorrow's report is incredibly important, and it better look a lot like the adp report. >> what happens if it's not a slowdown, what happens if it's a good, strong report? are you going to bet on three rate cuts? >> exactly then we get the confusion of the video that it's the greatest economy ever but we still need to cut rates
that's where the confusion is. >> this is exactly why the fed needs to maintain flexibility. if it's a great post, they don't need to cut. if it's terrible, yeah, maybe they accommodate us. that's why it's nice to be an investor, you know they will help you out but i want to know they're staying flexible. >> i don't think it's just a snap decision based on tomorrow's report. you still have tariffs and don't want to be reactive to what could be a temporary shock. >> they're not moving until july, scott, and when they do they will take back the stupid december rate hike as joe said and then the question will be now we're back to more or less a neutral but not neutral in the world's minds. the world is also still betting and screaming in the bond market that our ten-year is too high. >> the ecb is ready to go again if they need to. they're making that clear. >> too high versus our three month. >> they said the fed doesn't need to move and stocks will be just fine without the fed moving. >> this time around you have the german bond at competition in
negative returns everybody is buying into 2%, 2.1 ten-year maybe it's nothing to do with our economy anymore. it's just capital flows looking for any kind of yield. right now the only place to get it if you want observesovereigni the ten year. >> if the fed cuts rates, do stocks go up there's a suggestion they don't. >> yes, they do. >> some said it's going to be such a bad sign, pete -- >> there could be nervousness. >> what does the fed know that we don't >> what does the vix know? >> at this point i don't think it's what does the fed know that we don't, what does the collective mr. and mrs. market think they know more than the fed. >> the fed will make their moves based upon the numbers i think it's early and remember it's backwards looking. it's something they're looking at if they're looking forward, scott, that i think would be different. the fact volatility now is back down towards 16, that tells you a whole lot about what people are anticipating right now going
into tomorrow's job number they're very interested in knowing hey, how are things looking? we're talking about a vix that was just trading 19. two weeks ago we were at 16, we went all the way up towards 19 and back towards 16 once again volatility is back at a low end, which means hey, man, you can protect and still own the stocks that somebody like kevin might want to know but you better have protection on them if you don't, you could be in for a world of hurt depending on how the direction or read happens over the next couple of days. >> i wonder, joe, if the market is getting way off sides you have notes being passed around bank of america said markets believe feds will cut rates soon we agree history suggests the fed typically cuts swiftly, does not disappoint market expectations outside of a cutting cycle. >> i think the market has priced in, at least to john's point, taking back the december hike. pete talks about volatility and relaxation in volatility, i would offer i suspect that's because of exactly what you're
citing, scott, which is the forever will come in. >> is that the only reason stocks are up in june? >> i think so. >> i don't think so. i think it's one big reason but i also think some of the valuations got so depressed so quickly, so when you put up that chart with verizon up 7% and other companies i think that's a knee-jerk reaction for june. >> some of the losses to your point in may of the very same stocks we mentioned as the rebounders, apple was down almost 13% in may. nike 12% citi-12% dupont 20% nvidia 25% american airlines 20%. those stocks had big rebounds to begin june. >> how did we trade monday it was an awful day. tape looked lousy. >> first day to react to the possible mexico tariffs coming in. >> first day in months and what did we not have? any commentary from the federal reserve suggesting they're open to a cut once you got that messaging, that's when the market reversed.
>> the fed saying interest to the downside -- a lot of fed speak as well. >> all of these directions we have, to sustain going south, we need collapse in earnings momentum or across the boards in multiple sectors not getting that, you have the individual sector like oils correcting what does that mean to big names on cash flow probably not that much for a while which is why i don't their the market had a sustained downturn. >> unless you think in the upcoming earning season, you're going to start getting the disappointment in earnings again. >> here's the view from the trenches on the mexican front, okay lori cal va siino sits on this desk from rbc. we continue to view the second quarter of the '19 reporting season as pivotal for stocks and opportunity for markets to stabilize as earnings expectations are reset your hope is they're reset in a more positive light than maybe
the tariffs and trade and all of this nonsense would suggest. >> i'm just saying i will sell my equities when i see a sustained decline of earnings. and that has to be a couple of quarters long. every quarter is an ultimately very important one we really haven't seen what we've all been waiting for, big slowdown across the board on the index. we just haven't. >> she says look, if you get maybe the worst of the tariffs and this trade thing gets uglier, you have the s&p going down potentially to 2,650 over the summer that's a painful decline from where it is now. you can get a so% retracement from the april highs, she says a lot of crowded positioning you can get. >> we will see tomorrow morning if that's what happens she's not wrong to take a position people in risk assets. >> aren't the risks more to her side than yours? >> i look at it this way, we're all sitting here and have to make investment decisions every day. i sell my equities and go where?
where do i go? >> exactly. >> right now i see sustained earnings, dividends and succulent close to 3% on s&p that's way better than owning a ten year as far as i can see. >> you been a buyer of stocks the last handful of days >> i have been i have to put money to work. people keep saying it's will be a stock picker's market. the indices are doing just fine too. you can buy an independentsy in get a decent return. this is a different time manages will make their money deciding a simple yes or no to equities that's what it will be about. >> all sorts of products across the border from mexico into the united states from auto parts to blue jeans our contessa brewer is in far texas as we consider the stocks most impacted by all of this contessa, i read the calvasina note you give us the view from the trenches on the mexican border. >> that's right, $352 billion of
goods last year from mexico into the united states, 10% here on the international bridge on this side mccown, texas, a hub of international trade and distribution on this side is ray nosia, mexico, where all of the factories are that take raw materials and turn them into equipment and products and parts for export right now wait times, 43 minutes. they've shut this down to car traffic. only commercial traffic is a priority right now to go through. here's the problem, custom growers say we're not prepared to assess tariffs monday there's no mechanisms in place in fact, the pacific association sent a letter to president trump trying to explain that on this side of the border you have companies like whirlpool, black and decker, panasonic, alpine audio, many of these companies have already complained china tariffs has sipgt significantly increased the cost of raw materials it's a big headwind. now they're bracing for 5% tariffs starting monday.
>> for good reason contessa brewer, thank you very much retail, the obvious place, pete, to look between china tariffs, goods made in mexico and very may be in the trucks that contessa was talking about waiting 45 minutes to come in this country kohl's down 30, gap nearly 30, nordstrom 25 and on and on and on overdone or not done enough? >> i think some of those names are probably deservedly down quite frankly. they have not anticipated what they needed to, scott. and they have not prepared -- i'm not talking months, i'm talking years about how they are doing their business as a retailer in other words, look what walmart did, they brought jet. look what target did they got shipped they moved into areas to make themselves more efficient. and something that doesn't get talked about nearly enough, a lot of those folks died long ago, hey, all of our sourcing is no longer just going to be in china, it's going to be in other places and buzz of that, scott, those
are that prepared and doing the right things maintain margins, maybe even expanding some of their margins, including the fact they're having to deal with what we talked about yesterday walmart potentially in, bernie sanders saying they need their minimum wage higher. look at target, they were already $2 higher. there are folks out there paying more and still managing to be able to manage through the markets very, very well. as a matter of fact you talk to brian cornell or any of the ceos doing well -- >> as we know you do. >> i will tell you what, he was telling me the other day he's going around in investor meetings, people are falling in love with that stock can you see it at $85 a share. >> he's meetingwith investors. of course they are >> they like what they see, how about that. >> i would expect nothing less econ slowdown number one trade, number two. one plus one equals normally two. maybe zero for retail stocks would you buy retail stocks in this environment if you're worried about the slowdown and you're worried about trade
>> i think you need to be super choosy for example we were looking at nordstrom for a potential investment when you show that picture and say these guys are down because the tariffs, nordstrom done is because they had horrible earnings they did everything wrong that hasn't hit and going back to the conference, it was cool, i'm sitting here talking to ceos of malls and all sort of different strip centers and they got all back from where they work on deals with their tenants their saying when you're sitting there talking to tjx, which we own in our growth portfolio, it's a fantastic conversation. these guys figured out how to thrive and do so well and forward looking. that's a very different conversation than bed, bath and beyond you can buy but you need to figure out which ones. >> you help us figure out. if we need to figure out which ones, you help us figure it out. >> which ones right now? >> yes. >> we own tjx. we didn't buy nordstrom. we don't short so we can't do
that retail isn't dead but we don't want to excuse the exact one we own tanger outlets, which is an outlet mall that's all about shopping as a hobby, not actual buying it's a nice way to spread it out. >> you're not buying a macy's? >> no. >> you're not buying a gap or nordstrom? >> no. they're not buying because of the tariffs, they're down because their numbers are terrible. >> i think they're down because of the whole stew. >> i would offer three reasons, they don't upscale they're not costco they're not walmart. they don't have the digital platform perfected just yet and they don't have the moat around competition like a luluemon might have so those three things are very important in the retail space right now and the names that you're citing, they're deficient in all of those three indicators. >> scott, i have one that's not bricks and mortar but involved in fashion and retail. i have that for unusual activity. >> exciting. >> good tease. >> when we're trying to figure out where the maybe best places
are to be are in this ee vom ving marketplace, if you want to call it that, we talked the other day about how value is at an interesting position versus growth we know, pete, that some of the f.a.n.g. stocks have been beaten up lately. right now values outperforming, it's currently trading at the biggest discount ever, according to jpmorgan, and offers the larnest premium over the last 30 years. is it legit or is it just another one of these, you know, phony little bouts of performance and then we revert right back to the growth players that had been outperforming for the last handful of years? i love loved being in the stocks that have valuation with the growth, some cases low beta but sometimes you want a little extra beta in terms of what you got in your portfolio. i would disagree with kevin on one thing, i believe stock picker's market all the way. i know etfs might be able to move along here and there but the opportunities within stock-specific names that get
oversold when we get ail go rhythmic sells and let's be honest, the 5% up the other day, that was algos pushing up. i think they not only push down the markets but lift them up as well. >> i don't like the terminal value anymore. the new value is now called quality. if you focus on the balance sheet and say it will delever, you can go back into the stock and gage but if i'm going to pick a stock to go through the next two years, i want the protection of reduced leverage, advanced cash flow, even out-of-sector favorites that are considered to be quality -- exxon, intel people hate that name. chevron, pfizer, johnson & johnson, procter & gamble. >> you just named my portfolio, literally. >> oil is down look at the balance sheet on mobile look at the chevron balance sheet. look at the cash flow.
so you can take a little volatility until we find out there's another asset classic that makes me more than 3% and free cash flow back to me. i don't know what that is yet. >> i take the strategy and i love it, taking quality, which is a fundamentally sound company and marrying that to momentum, which is more technically oriented pete and i were talking about this before the show, there's been this intoxication with momentum the last couple of years. basically any stock going up, we don't even look at the fundamentals things you're citing, equity levels, revenue, we don't look at that. it's just momentum going up. now it's about taking names that have momentum but you can also identify them as quality momentum mcdonald's, microsoft, honeywell, abbott, american express, pull up the charts of those five stocks. they mirror a lot of the momentum names but they have the quality, the fundamental characteristics that you're looking at. >> microsoft you get a dividend. you get a dividend from tech. >> don't you love that >> i'm so excited to be amongst
these dividend lovers. where did you come can from? >> i will take the cash flow i will take the credit for that. cash flow. everybody loves that. >> at the same time you are selling some stocks out of your portfolio that maybe we're shorter-term trades or plays. >> twitter did not break out above $40 as i heard so many suggested it would i was positioned for that. it didn't work good-bye, good luck, have a nice day. >> it's all right. >> maybe pioneer and hess energy is so confusing and just not working i think every energy trade that i have put on in the last 12 months has been a loser. >> to that point, i was hosting this panel last night with two very well-known big investors, i don't want to mention their names on the air, but one was asked a question by someone in the audience, give me your best energy plays that you got.
and the one guy said, i don't have any for you he said, i've lost a lot of money in energy. i can't figure that space out. i don't like it. next guy was like a pass too is this like a no-touch area >> i will give you two names that i can, you mentioned exxonmobil look at the cash performance, it's been there, scott it made moves finally. stig lagged in terms of that versus chevron i will give you one other one, how about kinder morguen richard kinder, what does he do? he just buys back his own stock. almost every month buys back incredible amounts of his own stock back. >> he's been in this conversation at least a couple dividends. >> he's the guy who did the right thing, cut a dividend when you needed to cut it and now he's gradually bringing it back up and stock elevating as well i think that's one of those names longer term, the way he runs that, that is probably the best managed energy company there is. >> and shield from the price of
the commodity transport. >> jenny, do you have whether you consider valuable or not but the dividend, tell the audience the stock you just bought. >> on monday morning, check the chart, we bought westrock. it sounds boring, paper packing company but it's $19 million revenue, at the time 5.5% yield and that's down to 5% because it spiked up. this is a cool thing because every time -- just to be clear, i raised cash to buy this. i have been researching it since last year, raised cash about two weeks ago and every time trade war, tariff, anything comes out the stock chunks down and down in our research process we figured out there's a real disconnect it doesn't make sense. it's not that correlated we spent time on the phone last week with management again we affirmed our belief there's very little correlation between trade or tariffs or frankly interest rates and the company went through stress tests and
worst case for paper and packaging it and bought this with 8 1/2 times earnings with 5.5% dividend yield. >> people hate this name on tariffs, they hate it. >> it's so dumb. >> you have a good point there it could be a good find. >> do you remember where you raised cash from to buy it >> i just trimmed. will you love it one of the primaries qualcomm, i was on a few weeks ago and said whether do you sell it i said maybe 96 but i will use it as a source of cash i used it as a source of cash and trimmed over positions that have been overweight one of my other ones was my favorite real estate company, which was a great company, but the yield was 7.8 and replace it with a 5.5% yield. >> one of the guys you spoke to at the conference that shied away from energy trade is because you had a 39% pop in the first four months of the year. that's unheard of. from 46% to 63%, it was straight
up now it's corrected 19% it's really hard to wrap your head around a longer-term investment of something that's going like this. i mean, tech, can you take a look at for instance sienna. sienna's one i bought today and was trading. this one has been moving up, up, up does it go back, yes, 39% but down 19% over a five-month period, no. >> not more than 80% over a year. >> yes that's why like it and networking >> a lot of that up today, 25% gain today. >> you bet. >> you have something to add >> no, on the price of oil, it's easily manipulated and that's the problem. it is being manipulated in the last six months. to your point, that's why you have to totally stay clear of it. >> that's why it's especially a tough trade to figure out. let's switch gears for a moment and talk about one of the more memorable you plays from last night's nba finals game that between the toronto raptors and golden state warriors. that play didn't happen on the
floor but in the stands. raptors guard kyle lowry, not sure if you saw this, chases this ball into the stands. when he appears, watch that right there, to be pushed by a fan sitting courtside. i can confirm that person is actually a minority owner of the warriors named mark stevens. mr. stevens, a former partner at sequoia capital. he's a current board member of nvidia we reached out to mr. stevens and the nba. we will be placing a call to nvidia as well have not heard back from mr. stevens or the nba but that's a situation to keep an eye on. i believe mr. stevens was ejected from the game after that play happened there. and who knows what the nba is going to do. kyle lowry talking after the game he thought that, that person right there to your left mark stevens should be banned from attending nba games. >> o'leary -- >> i hope it's a misunderstanding but it's really damning when the player who's right there in the moment stays consistent with their message, and that's why this owner is
going to have a problem. those two guys have to get in a room together and work this thing out. the rules are clear, it doesn't look to me like he's actually pushing him but if the player is consistent with their message -- >> that was pretty -- the video is pretty compelling, is it not? >> he's patting him on the shoulder saying go get back in the game i'm not sure it's a fair call. because you lose your rights when you're an owner to sit on the floor is a big deal. >> let's watch this again. you tell me if he's patting him on the shoulder or pushing him. >> that's a straight-out push. >> looks like a shove. >> it doesn't matter if you're an owner. >> if he was a horse >> let's get those guys in to assess it. >> you have to bemindful of where the ball is all the time very often you get it in the teeth. you really got to know where you are. players go after the ball. they don't care if you're sitting there. and that's fair ball. >> courtside at the warriors game is experience in itself you see been sitting in those
seats. let's move on. we want to bring that to you it's sort of in our wheelhouse of executives out in the valley who go to those games. we happened to notice whoit was. here's what else is coming up on "the halftime report." >> a big call on a bellwether airline stock with lots of ups and downs so far this year that's next. plus, check out the options the najarians are following. unusual activity is straight ahead. "the halftime report" with scott wapner and the traders is back in two minutes we're the slowskys.
uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. najarian from "the halftime report." if you have a question, we'd love to answer it. send them to cnbc.com/halftime and we will answer as many as we can at the end of the show thank you. >> announcer: go to cnbc.com/halftime or get us on twitter with the #askhalftime. welcome back united airlines, let's trade it because it was upgraded today to buy from neutral at goldman sachs. that firm sees the stock climbing a whopping 32%. they say shares fell too far on
china fears. that's our call of the day pete, you own it. >> yeah. >> ual. >> i agree, i think there's plenty of upside here. we talk about the airlines being inexpensive. it's like the financials, all of them are always inexpensive and will move to the upside. i think now is the time united can outperform they got a 108 price target and to me it makes sense they're talking about the trade issue with china being one of the aspects. let's also talk about oil. we talk about input costs. there's a lot of different things here at play that i think play in the favor of what united has become i think for a long time, scott, they were not well run and that's why i was always preferring delta over united but now i think it's almost flipped a little bit i think united has far more upside than delta and definitely more upside than american but still has to deal with negotiations with their employees. >> you think the stock has done nothing all because of trade >> no, no. i think that's partially priced in. >> i'm sorry, i say year to date the stock is down.
it's virtually flat. >> and some of these names i think were probably oversold and some of that got caught up with the whole boeing thing some of the names got hit a lot harder than other names. maybe when you look at the exposure level in terms of, you know, the plane everybody's so concerned about, that is sort of overplayed for a while as well i still have not been willing -- i know kevin bought boeing, i know it's boeing, but i'm not willing to buy boeing until i see it a lot closer to 300. >> we talked about american airlines with the big jump in june now here is this with an upgrade. do you own any airlines at all are you just playing from the boeing side? >> i bought a 1% position. i got my toe back in and the stock has been dead money since i bought it. the news is getting worse. now we seem to have a slowdown in how we're going to get this thing leased i still like boeing down at 288,
300. that's my range. i'm waiting for more bad news. it's going to break. >> put on a starter position >> i put on 1% to stay in the name at 346. here we are at 347 who cares? i think we are going to get a piece of news to break it down below 300. i know the personality of this stock. it's giving credit to management, and you have the first rumors of management getting squeezed by investors, talking, maybe you have to make a change that's news. then new orders out of the blue? >> the moment of ceo was on the network said he's the guy for the job. he was asked point-blank. >> ryan said i will tell you what i'm going to do, when this gets approved i will squeeze teenage heads like a pimple on price. >> kevin o'leary, isn't it >> yes. >> you know what i'm told from talking to people i had a chance
to talk to in the last couple of days, is that the big issue with boeing doesn't -- once the max gets back in the air and trade issues and things like that and orders from china, that the issues don't center around the max and 737s and those size planes going forward, that the wide body planes are the ones to keep an eye on because if china changes its wide-body orders from boeing, that is a big problem. >> yeah. yeah. >> that's 21% of cash flow, which there is no max right now, so at some point that's going to start to show up in the quarters 21% free cash flow if this thing goes to a structural redesign, i guarantee you, you will be able to buy some at $288. >> let me do this to digress for a second we have a statement from the golden state warriors involving that incident last night we showed you regarding mark stevens, who's a minority owner of the team. we said former partner at sequoia capital. mr. stevens' behavior they say
last night did not reflect the high standards that we hope to exemplify as an organization we're extremely disappointed in his actions and along with mr. stevens offer our sincere apology to kyle lowry and the toronto raptors organization for this unfortunate misconduct. there is no place for such interaction between fans or anyone, and players at an nba game mr. stevens will not be in attendance at any of the remaining games of the 2019 nba finals review of this matter is ongoing. that's the latest. >> his own team under a bus right there. >> he's an investor. >> ouch, owner/investor. that's nasty. >> yeah. >> that is nasty i guess you got to stick with the rules. >> let's go to sue herera, who has the news headlines sue, you know, the raptors have this runaway win last nightth that's the play more people are
talking about than what happened on the floor. >> that's exactly right. that's what everybody is talking about and where the attention is focused, scott the news update has a lot of other things to talk about including russian president putin who said moscow did not interfere in the 2016 election and never will speaking at a meeting with international agency chiefs, putin said, quote, we didn't meddle, we're not meddling and we will never meddle in any elections. a former nurse who liked putting patients into cardiac arrest because he then enjoyed the feeling of resuscitating them was convicted of 85 counts of murder, making him what is believed to be the worst serial killer in modern german history. he was sentenced to life in prison r&b singer r. kelly appeared in court this morning. he was arraigned on 11 additional counts of sexual assault and sexual abuse he pleaded not guilty. his next court date will be june 26th the fdny issued a warning
about an ingredient found in supplements because it could harm an unborn child it says pregnant woman and those of child-bearing age should not take any dietary supplement containing vinpositine back to you. >> thank you very much, sue. stay tuned for the latest trades and updates first an s&p sector check. good for .5% led by energy "the halftime report" is back "the halftime report" is back after this and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. has been excellent.
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cold option bets, pouring in najarian brothers all over that trade. pete, was it you who had gdx >> yes, i talked about silver yesterday unusual and gdx for final trade or something like that i own gdxj, i actually own the gld as well. i rolled out because of what i'm seeing today take a look at the nice move we've seen recently. we've watched gold make a violent move to the upside in a very short period of time. now here it is over $126 they're buying the august $128 strike calls very aggressively i think it's creeping up nor mow and they're turning that into a
spread selling the 135s up above. do they expect it to scream to the upside no maybe 134, 135, that's what the expectations are of this buy i rolled and bought along with them so now i'm in the august upsides as well waiting to see if this will come out. we have a whole bunch of stuff in that whole metal space just hitting, hitting got to stay with this. >> scott, i told you about fashion and some of the people who are ready to really rock in this space and i think this is one. this one ftch is the symbol here you see how she sold off from the march high where it was basically up there around $30 a share all the way down here to 20 that's why i like buying it at 19 and change. what were they buying? they were coming in aggressively buying june 20 calls just out of the money. like that, stocks up today but i think now as it approaches 8,000 calls on something that rarely trades that many options in a week, i think that's
telling you a lot about how quickly they think this thing will move. i will be in it at least a week. >> okay. come on back over. >> thank you. >> you know what's coming up viewer questions are coming in on sentry link, medtronic and zillow your answers are coming up you still have time to reach us on our website or tweet us "the halftime report" is bk.ac cnbc.com/halftime.
welcome back to "the halftime report. we're answering your questions now. first up we have a question for jenny from donald in new york. you still like century link? >> centurylink i think the best way to look at this is what's the reality of the company? the last quarter grew by 2.7%. they delevered from 4.3 to 8.3 times. $350 million in cash flow last quarter. they margin has gone from 40% to 35% since level three transaction closed and that's a strong company supporting 9.6 yield with a ton of management commitment yield to it. i'm in it for long term. if you're in it to trade it or play side show of act visit, that's not where i can help. but if you want it for the long
term, i think this is a great investment. >> are you lashing because of donald in new york >> the same page as the president. >> the president is in france. we know that. >> you can still send a question in he could was email. >> he's not going to email us. >> he's a tweeter. >> let's move. metronic, is it a good steady investment >> i've owned this name. it's up about 20% since i owned it, 12 of that came in the last 12 months. the only knock -- some would say it's rich. it's a great way to get exposure you just don't buy stocks. it's been a really good performance. >> scott in scranton, pennsylvania has a question for you. dr. j. following up on your
distill low twrad two weeks ago, would you hold or sell here? >> took off half since the beginning of may, the stock is up for those not playing from 32 to 47. it's been a huge out performer middle of may it was just 39 when this particular unusual activity occurred. i've taken off half. i love the low interest rate environment we talk about it all the time so zillow, they will continue to benefit from the low interest rates. more on how to trade sima >> as you were just discussing, gold is now on 4% in the anticipation of a federate cut brian starting with you, would you be a buyer of gold if the
fed does in fact cut rates >> i think i would, i'm waiting for gold to trade higher before i get on board when you look at the inflation here, we have trade wars inflationary we look at commodity prices. interest rates lower what's really happening? a trade war is bad for fiat currency it's going to need to be printed to get out of this >> in that case, bulls on the upswing, bitcoin on the up swing. anything not paper watch this 1380 level, we start to move higher >> is a rate cut already priced in or is there more room for gold >> it's starting to be priced in i would buy gold even i would be gold if we got a rate cut if you look at the chart, you see i'm not the only one who says that. we were in a downward channel
from february to the end of may. once we got to that level, it was really off to the races. at 1:00 p.m., steven butmeier will explain what is happening in the future. half time report is back after this what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? u know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
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price targets well below where it was i took the rest of it off today. >> home on the blood that there is in the streets on this one. this is home and decor and the stock is down 51% right now at mid session so i like that they're buying upside calls i bought the calls during the show >> mr. o'leary >> gld goes from dead, six years and up -- good time to buy gold. we blow through 52 weeks i'm liking it. >> ironman i saw the management team on tuesday, and they completely confirmed my strength in the cashflows. >> there's not coffee in here, there's tea this morning >> dunkin' and starbucks trading to all time highs today. >> we've heard from invidia. they have no comment on their board member mark stevens, the
man in that video right there, pushing kyle lowry last night during the game. the former sequoia capital partner, also on the board of nvidia having no comment as they reach back out to us moments ago. that does it for us. the exchange begins now. hi, everybody, here's what's ahead a market tug of war. the talks with mexico no deal. bonds are flashing a warning sign still we'll talk about who's got this one right in just a moment it's also tug of war between investors and the fed. we'll hear from john williams in a minute we begin with the market