tv Fast Money Halftime Report CNBC October 5, 2020 12:00pm-1:00pm EDT
biden that he is willing to debate president donald trump if in fact experts say it's safe. with that a reminder that he will be at a town hall tonight with nbc's lester holt in miami. that's going to happen at 8 p.m. eastern time and you will be able to catch that right here on cnbc a lot to get to for the half let's get to headquarters and the judge. thanks very much welcome to the halftime report, i'm scott wapner the state of stock for election day, four weeks from tomorrow we'll debate how to play this market right now with our inv t investment committee let's go to the wall stocks higher. we are keeping an eye on the president's condition today. what do you think about the movement in stocks today do you think they're up on improved stimulus hopes?
you have that poll in the wall stre street journal and maybe the stock market considering maybe we won't have a contested lebs if the polling tells you anything accurate about where this race truly is what do you think investors should be taking from this move? >> i think that's correct. i think the two primary drivers for the higher market today are certainly -- the fiscal spending and what it equates to in the near term and the dynamic in the market for a trade and investors to extap larapolate is a rise i yields we're finally seeing a welcome rise in yields and that is certainly on the belief of both
of those actions i mentioned previously you have that to consider and how you want to trade that it has a direct impact perhaps on growth versus value, the polling on the upcoming election and we're thinking about the president's health and what all of this means for the campaign going forward. >> so you've got a number of things in there. let's start with yields. rates being 0.74% as a new high or recent high is pretty amazing that here we are talking about that as going up when who would have expected we would have had such a long period where rates have been below 1% and i think what the fed has said is they intend to keep rates low. so the fact that they're not collapsing or there's nothing that's driven them lower is positive for the economy and investors are happy about that but i don't believe we're looking at anything like a march up in rates that could get us
toward 2.5% or 3%. so rates are going to stay low but the economy is looking more moss tiff becau-- positive beca stimulus plan seems to have new legs it looks as if something is going to be passed and investors are very positive about that in terms of the election and how it's affecting the market, friday was an interesting day because the president and the announcement of his covid, the market went down about 1%, not more than that but tech stocks were down more, down 2.5%. i think that's part of i guess the process of healing, in a way, for a market that got a little extended on the nasdaq side if you look at a chart that didn't put together for me, you can see that on september 2nd, which was the peak of the market, the consent of the market cap allocated to technology was very high
we were close to 30% and the percent of earnings about 23%. that was an extreme relative to financials and health care, which are underrepresented in terps of their percent of earnings as compared to market cap. that has decreased on the tech side so tech has come down as a weight on the s&p. it's still overrepresented but of course it's growing faster and we need that to happen we need there to be a little more breadth in the market, more participation in health care, financials and industrials and i think that sets the stage for, as, you know, what we expect to be a less contested election i mean, the market seems to be seeing that now with the biden numbers going up and a little bit more positive news on a stimulus and movement forward that we can see more participation on the consumer side >> most important thing for investors today is what? is it the latest on the reopening? is it the walk-up to the
election again, one month from tomorrow, or is it the thing that joe said, which we haven't talked about in a long time and that's yields moving higher and the impact it's going to have on certain areas of the trade right now? >> hey, scott. great to be back so good to see everybody today i think all of those things work together but there's one piece that everyone has to think about, right, when you say what's most important for investors? it's their time horizon. so for me the risk going into this election is all of zero right now, if i'm being honest with you ultimately i can buy stocks when they go on sale. so if someone is concerned about one of the three options coming out of this election, either a trump win or whether it's a split white house/split senate, or what do they call it these days, a blue wave i think it is? regardless of which one of those things play out in a month from now, i'll be prepared either with cash to pick up things when
they go on sale or whether it be to watch names to rally into what occurs. it is holistically dependent on time horizons. there's the market and the economy. we want people to do well. we want to see folks with jobs, we want to see a recovery and see people healthy as we think about covid as it relates to the market, whether it's a reopening trade as we start to see vaccines come into play or these antibodies work on our president who i guess is going first and foremost into these trials, or whether or not it's, you know, a potential retrenchment depending on these waves that we're seeing begin to occur. i am actually more optimistic, as i always am, i think, as you know, about the fact that we know how to manage the virus a little better. i'm less concerned about the cases spiking. if we start to see the death toll rise precipitously, i'll be
very concerned but if we see the deaths begin to taper off, that's a good sig and people wearing masks is a good sign. >> jim, i want to focus on the rate issue for a minute because it may be the most near term issue for investors to grapple with morgan stanley says and asks the question it had whether a rate scare is one of the underappreciated risks in the market and they say a move higher on rates, quoting from their commentary today, should only further support the view as most recovery stocks are positively correlated by such a move led by financials this is mike wilson. this is the idea that if you have rates moving higher, you have growth stocks, these tech stocks become less attractive and then you have more of a push into reopen stocks or cyclical stocks or things like the financials of all places do you buy mike wilson's
commentary today >> i do. i think mike has been somebody that we've learned we have to listen to when he says something. the one word i would quibble with is scare. when we say a rate scare the trajectory you just laid out doesn't scare me i don't think tech stocks have to come down in that scenario. i think what we're talking about is the long-awaited broadening of the rally we've already seen industrials start to pick up some leadership i said i'm waiting for financials to do so as well, but you can't do that without rates rising now, here's the $64,000 question, what does the fed do in response to this? i don't think the fed will let the ten-year get to 10% without putting weight on it and the only way they wouldn't put weight on it is if the virus is under control and the economy is starting to pick up speed. we're pretty several months away from that but in the meantime, i think the scenario just laid out by mike is exceedingly positive, one where you get sections of
the market, namely financials that have really lagged, starting to participate. that broadening of the rally would be very healthy and very welcomed in my opinion >> steve leasemiesman, our econc reporter have been taking a look at trying to model what a second wave of the virus could mean and it directly relates to the kind of things you just talked about, jim. steve, i'm wondering how they're thinking about all of this when you look at the fact that you've got nine u.s. states now reporting record increases in covid cases over the last seven days as just one of the issues that we need to grapple with on the course of the virus. >> yeah, that's a big part of it, scott. and we haven't really even reached the fall and the winter where people will be forced inside so it's definitely high on the list of things that are out there as major unknowns and we don't know if there's going to be a stimulus either one economist said to me that if
we have stimulus, we can do 10% growth in the fourth quarter if we don't, it may be as low as 2.5% so there's that major variable layer on to that the variable about how we're going to react let me tell you some of the points people have been making to me the first is there does not appear to be the political will for a major shutdown again, and you can maybe see that by looking at what's happening in new york right now maybe bill de blasio in a place where there might be more support for a shutdown than in other parts of the country, he's trying to do this by zip code, not a citywide shutdown. it could push some businesses over the edge that have been unable to make it so far mark zamby says the unemployment rate could go up by 1% of 20,000 cases, that is if the average cases rises from 40,000 up to 60,000 you you could have a 1% increase according to zandi.
even -- you have to think at least some of their policy to this point is already oriented towards that risk. there's not a whole lot left now in terps of what they could do after they've already promised that they're going to remain low till 2023. i don't know if they say now that things are worse, we're going to go to 2025. you have charles evans on the tape this morning saying very specifically he thinks we need a big fiscal infusion and recessionary risks are higher if we don't do that in terms of what the fed has left, one thing for sure is a major, major qe program that has was talked about before would probably drive down the ten year at best. >> you raise a couple interesting points the base case, right, as you've always said for the fed is that there was going to be a second wave, at least according to the medical community.
the medical experts have always suggested the base case is a second wave into the fall. so that's number one the other issue is i'm wondering to the point that jim was making about this move higher in rates and the tolerance of the fed if rates get even closer to 1%, which is obviously ridiculously low, but so much higher than where they've been in recent months >> you know, i think the fed is specifically holding back on qe that's the major tool they have remaining. they do not want to do negative rates. they haven't ruled it out entirely but it's not like in their first five or six kinds of responses they would do. and one of the things that they're looking for, scott, i don't think the fed can be any clearer on this, they are don't like to go there either in terms of urging politicians to do something, is they really want to see that stimulus they do not want to have to use their tools to help the economy
here right now there is going to be i guess some tolerance for the ten year to rise and they're going to hold back while they can but then if it looks like the economy, not necessarily the ten year, is going into a place that is of concern, that's when they would starred tot to address thd curve. >> i want to address it with my gang thank you very much, steve steve lays it out very interestingly for the next part of our conversation in terms of tolerance, tolerance for higher yields do technology investors right now have a tolerance for higher yields or do they become sellers and do they move into value >> so i think that question gets answered a couple of ways, scott. it would be in the scenario where there's not a second wave and rates are going up for the right reasons, which is the economy is improving and we've seen more stimulus come and jobs are improving and companies are
improving. at that point that would be a worry about technology your discount rate gets much hire second, there's an opportunity in the market for money to chase other growth areas, which becomes value that changes to growth it's too early for that. you bar bell and keep your tech exposure because weefr don don' what's going to happen with the second wave, with stimulus or rates. >> when you say we don't know what's going to happen with the second wave, in what sense are we talking about as a mentioned to steve, the nine u.s. states reporting record increases in cases over the last seven days, it appears as though we're in the midst of a second way are you more specifically referring to how economies in different states react to the second wave? >> yeah. i'm looking more on the economic data, scott, as to what is that effect going to have and how are the economies going to improve specifically in different states
and how they're going to handle it as well i think you stay with your tech investments, you obviously do portfolio management and i don't think it's a question of getting out of it because you see rates moving you. >> that's what they are arguing over at citi, they raise i.t. back to overweight he says financials like look a value tra trap cramer says financials are a value trap do you agree with that >> no. we saw the market continue to trend back up. look, at the end of the day, you have to be in tech tech is the new consumer staple in my mind you can coin that to me if you'd like to, scott because it's true. tech is going to be here whether it's a reopening trade or not. it's up to you to get in at numbers where you think works for your portfolio
as it relates to financials, people talk about financials being a value trap that's a broad sector, guys. let's stop pretending like it's all just a consumer bank and all sole lily wedded to interest ra. you'll see consumer banks doing well but you can see citia and jpmorgan and large consumer banking doing well where interest rates remain low. we're seeing capital markets exploding. look at the other ways that financial services firms can actually outperform in this -- >> but they haven't, though. i mean, i'm sorry but they haven't. >> they haven't in totality since what, since the end of march? can you get in right now absolutely are you seeing other spaces within financial services doing well like, again, asset managers, like the private equity firms yes. because money is cheap you have $10 trillion mind some
of these, $2 trillion on the sidelines for investment scott, you know, i hear you and part of the problem is the rhetoric that you get around consumer banks not outperforming because it's sort of like a self-fulfilling prophecy where everyone is kind of ho-hum, ho-hum on financials and then you see these guys just like last quarter with kind of knockout earnings reports, i think you're going to see it again because again people are underestimating what these bank can do in a time of low traycint rates. this is an opportunity to get in, scott. let's look at where citi is right now. it's trading around $69 a share and trading at 44 or so right now? it's still a buy >> i want to have more of this debate who wants to take the other side of that? because -- >> i would >> that argument has been made repeatedly over the last many months the xlf's down 20% on the year
i heard that all before. it hasn't worked why would it work now? >> well, you know -- >> over what time frame hasn't it worked? >> what period, courtney, have the banks worked for investors people have come on this show repeatedly and made the case that you got to buy the banks, they're trading well below book value. i've heard that forever and then the stocks go nowhere. why would it be different -- if you bought them a we -- >> if you bought it a week ago, it's time horizon. if you're a short-time trader, it's time horizon. if you're a long-term investor, the banks have worked depends on what kind of bank or financial services firms you're talking about. we have clients that have won with, quote nquote, financials over time.
>> let's make a distinction. in the points that you make, court, some areas of the financials have definitely worked i don't want to make a blanket comment that the financials as a group -- i'm trying to talk about, for example, the banks, the bank stops, the jpmorgans, the citis, the bank of america, the wells fargos have not worked >> and i've had people come on and say they're going to work and they have all these other businesses and trading for such large amounts for book values and peeliople go into these sto and they feel like they're in quick sand because they go nowhere. >> it's my turn. >>. >> so here's what i would say. we don't own any banks except for first republic it n it's not a big money center and
we've been consistent about that for years. a big factor is lower interest rates, which has happened. then you have commissions coming down, a negative and then you have the idea of investment banks, they get some big piece of every day i guess that's not happening right now and then they've got a lot of commercial real estate loans and guess what's happening to big court buildings in cities like new york, boston, chicago, los angeles, those buildings are empty and those owners are going to have trouble with their debts to the banks so i understand that they're down, that they're selling for very low multiples if you believe the e of the pe, but i think there's still a lot of risk if you have a tolerance for that risk, if you can say i'm going to buy jpmorgan and citi, wells fargo and put that aside and not worry about it, i'm not going to
make it a big position, i think it's fine to give that bet a chance to work and it probably will over a long enough period of time. it's just hard to make the case right now versus other sectors that's the way we look at it and we own plenty of financials but they're s&p global and other types of names >> hang on one second. i want to go down to tala who has news about the white house press secretary kale kayleigh n testing positive for covid >> in her statement on twitter where she said first she tested positive, she said she had no knowledge of hope hicks, the president's top communications aide having tested positive when mcenany briefed the press at 11 a.m. nbc is reporting that mcenany was pulled from the president's trip to bedminister
new jersey for two separate fund-raising events later that afternoon. she was not told why, according to nbc's reporting and did not learn until later that afternoon that hope hicks had tested positive so that is some interesting detail here, that mcenany knew she was pulled from the trip earlier in the day but was not told why, did not learn until later that hicks had tested positive mcenany had continued to brief the white house press corps that day and informal gag ls as she was testing negative as recently as yesterday evening but this morning she tested positive but continues to have no symptoms. >> a trip in terms of why the president was allowed to go to bedminister for those events, even after it was known that hope hicks had tested positive and the white house had responded to that saying that, quote unquote, white house
operation himself approved that. >> reporter: that's right, scott. it's unclear what the time stamp was on the president's first positive tests we know he took two tests, one rapid test that came back positive and a pcr test that came back later in the day and that was the positive result that he revealed around 1:00 in the morning on friday. the white house press secretary has said she won't give the exact time of the president's tests or any tests thereafter. they repeatedly said that's for security reasons as we sort of piece together exactly what decisions were made and when, it is relevant information. now the new jersey department of health says it is attempting to reach out to 206 people who were in and around those new jersey events to try to trace those contacts associated with it. >> a confusing weekend to say the least. i think we can all agree on that kayla tausche with the latest on
kayleigh mcenany and her positive test. so there are questions whether the banks are a good place to be. you made a move with capitol one. tell me why, a stock that you bought joe, you hear me i guess not. i don't think joe can hear me. do you want to weigh in on the banks? >> yeah. you're going to go with high-quality banks you have to look at the jpmorgans, we own jpmorgan bank of america it's a time frame issue. i'm not looking for this to go 30, 40%. be great if they did but the businesses they have, long tail businesses of asset management and m & a, we realize
you can have a democratic blue wave but these are priced into the stock and i think the idea of owning some of these stocks in a diversified portfolio hopes you because when money does go back, and when you look at last year when money did go back in financials, it's going to happen you done want to put all your money in one basket and you want to go for high wallequality. some of the regionals might not do so well we've gone to high-quality banks and spread it and financials, the blackstones or financial companies where you can create this overall portfolio but it doesn't have to be six of the largest banks. >> joe, i think can you hear me now. maybe you could hear me before and i couldn't and our viewers couldn't hear you, i was asking you about your buy of capital one money. >> joe, can you hear me now or not? i was just told you were good. >> no. >> i guess joe can't hear me
maybe joe's not good yet anyway -- okay, hang on one second let's do this. let's take a break we'll come back on the other side, i'm told check out this mystery chart it's a consumer stock up nearly 40% in the last six months with a bullish call on it today some of our experts who own us hopefully can hear us. we're back in two minutes.
i'm sue herera here is your update at this hour commercial bankruptcies surged last month the legal services firm epic said chapter 11 filings shot up 78% from year-ago levels, filings are up 33% from last year penn state university announcing there will be no spring break next year to reduce the risk of spreading covid-19 spring classes will start later in january penn state joins a number of colleges and universities eliminating vacations.
today is early voting in south carolina and in britain, another day of more than 12,000 new confirmed coronavirus cases. reported infections surged on saturday after the government reported a testing glitch that kept thousands of test results from being properly counted. back to you. >> i appreciate that, sue, thank you very much. maybe the third time's a charm joe teranova, can you hear me now? >> scott, i can hear you now >> there you go. on the phone, better than nothing. joe, we were talking about the financials i wanted to hear you about your new buy of capital one i know our viewers did as well please tell us why you bought those and what you think about the financials now, joe. >> so, scott, what i would add to the conversation previously is let's not forget that technology moving forward and growth is going to be the place to be, but there also is an
opportunity for investors to go after value in the form of financials the question is where does the money come from? when the money comes directly from the aggregate bond indexes which investors have been piling into, fixed income, that's exactly where the money's going to come from if we get a lift in yield. what i've done here is anticipating a much welcomed rise in yield, i've gained exposure to capital one, it's a consumer finance name that i have owned previously in the past, they're going to report earnings here in the back half of october i expect net interest income to exceed expectations. i viewed them as having a very strong balance sheet and they are also a leader in terms of digital financial. in addition to that, i also took a position in texas capital bank corp, an energy bank, it's a way to get exposure to potential energy recovery. you see energy up today significantly. i don't want to buy energy
equity specifically, so i combine the thesis of banking, a rise in yield, a little exposure in energy. the position i have in capital one is bigger than in texas capital. >> good stuff. i'm glad we could get that done. now let's do our call of the day, it is a bull,i isish one on starbucks they call it an actionable idea. we like actionable ideas an attractive entry point and opportunity they say jim, you own starbucks we just talked about starbucks how i i was there an upgrade and there was a firm use being its o -- use being iing its own modmg is this an actionable buy idea as opco says
>> i do think it is. i see a risk return spectrum here international is about 23% of business and i think that's more of an opportunity than a risk. china's economy clearly has been reopening and they're doing really quite well. i think that's an opportunity more than a risk i think what the question is what goes on here in the u.s you know, starbucks now trades at 30 times next year's earnings that's very reasonable in this current interest rate environment but more to the point, that's an earning stream that is not reflecting a fully reopened economy so imagine when the u.s. economy is fully reopened, whether it's next year or the year thereafter, i just see there's more room to grow into the share price of that target of 101 as the economy continues to reopen and the multiple as it stands right now makes me comfortable that the down side is limited. so it's that asymmetric risk return that leaves me comfortable. one last thing and then i'll stop they have about 4 billion of cash on the balance sheet right
now from the nestle deal they did about 18 months ago. that's cash that can be used to make interesting acquisitions or return capital to shareholders and i don't think that's priced in either. >> the stock is moving up at we speak, it's at 88.33 the stock is pushing on 90 right now. >> i'm talking about the 101 target i think it will get there, scott. let me rephrase this i think this is a stock at its current price is still refle reflecting much more pandemic impact than is likely to be the case over the next 12 months that's why i see the asymmetric return being to the up side, not to the down side i see down side protection at this level >> absolutely. >> i'm looking at some information. you're mentioning hot spots and what we need about the virus, some more developing information about the new york city school system, which i'm trying to get
some more information on as well so i'll keep my eye on that. jim, let me stay back with you while i try and do that. roku gets raised to 227 from 190 at bank of america ten reasons to stay long we've talked about this stock on so many occasions with you but what do you make of this call from to 270 from 190 >> that would be the same sort of return it's had over the last month. this stock tends to move to very large cycles but right now it's in an upswing. that roughly 12% return i think could you very easily see that before the year end. i don't think this is a stock that trades much on valuation, but if i were to do that, i would say, look, it's 11 times next year's sales, which is right in the range of 10 to 15 that it's been in for most of the last three years, so i could easily see another turn being added to that, which would bring it to the target bottom line, scott, and you know
this, it's a trading vehicle for me i think it will get there but if this thing turns down before it reaches, i'm not going to hang on for that price target i'll get out when it starts turning down >> bloomberg is reporting, i had mentioned something about new york city schools, bloomberg is reporting that new york city schools in what they deem to be hot spots are going to close tomorrow i bring it up because i want to see if there's any market reaction obviously to any of that news as we keep progressing in the reopening and what impact news like that may have on the stock market and that was according to governor cuomo as well we'll try and get you more information on that and bring it to you snas soon as we can. don't miss the reveal of cnbc's financial advisor 100 list looking forward to that. we'll see you after this ime inss in your customized view of the market.
and i'm john pisani. we've got some deal news we have the president taking regeneron pharmaceutical experimental andy body cocktail. >> relief rally better-than-expected news and others biotechnology sector any time you can see the free world recovering a little better than expected on some type of it to be a positive share outstanding have tripled. you're owning all the right stuff in this fund you've got amazon, ali baba, 10
cent, facebook what could go wrong at this point if anything? >> i think we're all in the third inning of this digitization this index uncompasses the entire glop. wheth -- globe everyone is using to direct consumer and that's not going to change i got involved because those are the companies i write huge checks to to digitize my companies so i'm trying to get some back, if you know what i mean >> i think the important thing, kevin, is you hit all the right stocks this year you've got another great etf out there, the dividend of etf, osa, hasn't done as as well, procter & gamble good to own any idea when dividend payers might start outperforming? >> it's interesting because it's almost five years to the day
when you interview me about this when i listed it on a stock exchange this is my largest core holding, a very conservative fund that's a dividend strategy. the thing you have to think about today for dividend strategies is quality of the balance sheet. can you get a 10% dividend on an energy stock but i'd argue that's very dangerous and we don't own things like that we care about what is sustainable because this is a product that's designed to be a core holding for people that are trying to distribute 5 or 6 or 7% a year from their trust, their fund, their pension, their sovereign wealth fund, whatever it is. i think the quality balance sheet is what matters and that's inside this is the s&p 500 less all the stuff that you don't want to own. so it's been around for a while and i'd stock up ousa in any strategy thanks for the call because i built this with you. >> thank you for that.
it's time to answer your questions. courtney, a video question from sean in new york city. >> in is sean from new york city i'm looking to get into the some of the esg stocks, individual equities and time the markets right. is this a good time to buy or should i be waiting until after the election >> hmm >> what do you think >> interesting so interesting first and foremost i'm going to tell you timing the market, if any of us could do that right all the time, we would probably not be sitting here right now. two, esg is a starategy you guy for the long term. esg and etx have been
outperforming the s&p on a broader scale so absolutely it's a place you want to be whether you buy now or buy later, i think now is an interesting time to be buying esg strategies given the fact that millennial portfolio managers are taking over at this point and mill ennials care abot socially responsible investing i'll even give you a name. brookfield energy partners, take a look -- i'm sorry, brookfield renewable energy, bep, is one you want to potentially take a look at from the renewable side and from financial perspective >> appreciate the name as well we see that stock moving higher as we speak. serat, what do you think about it now how about right now? >> i still like it a lot the news this morning is that they are putting their european supply chain up to are business. this was part of the reorg they
were looking at a year ago i think there's a lot of value in this experience, it's right in the reopening space and it's also in the covid space. i think there's a long run, the stock has done well this year but i think you can buy the stock at these levels. >> thank you for that. >> charles in l.a., alb, buy, sell, hold >> i bought it at the upper 90s and sold it at the mid 80s and that's a losing trade. that was because of tesla's battery day when they indicated the potential to open a lithium mine in nevada this weekend you've got barons that has come out and defended the lithium stocks, they've identified albemarle as one to own. that's why there's a lift. but i still say this stock is a hold >> jim, to you from steve in maine, dow chemical, buy, sell, hold right now >> i think it's a buy right
here i would buy more if i didn't have a large position in it. look, thisis a stock, a solid material stock with a 5.9% dividend yield and that yield is telling you something. that's the market's way of saying it thinks it's going to get cut but it's down from about 7.2% a few months ago because the prices appreciated, meaning the market is coming to grips with the fact they're not going to cut the dividend. i like dow chemical for the long term >> now elizabeth in new york wants to know about home depot buy it now or is it too high >> i like it here, elizabeth the stock had a mammoth run from the bottom in march and then it took a pause most recently it's one of the few retailers that has shown incredible growth this year, earnings were above expectation. the housing stock is not only aging but we've had a lot of turnover in houses because of home sales being so strong in this covid environment and that's going to mean people are going to spend more money on
their homes. they're doing a lot of it themselves and that's not going to end for many quarters to come >> okay. appreciate that. please keep your video questions coming keep all the questions coming. we'll l we'll play them on air we have more trades straight ahead as we go to break. take a look at some of the stocks hitting new highs today "halftime" is back right after this economics? algorithms? magic? turns out, it's you. doing your thing. dreaming dreams. building new worlds. it's why we built our workspace technology. to help you do your best work and to see what you can become. you're made for bigger things. and to see when disaster strikes to one,
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the nasdaq 100 volatility index futures are now open for trading on the cme scott nations is breaking down this volatility play hey, scott >> hi, scott yeah, it's an interesting product and good news for volatility traders vol-q measures 30-day volatility as you said on the nasdaq 100 index and the ticker symbol is vlq. scott, this is going to be an important tool for investors as more portfolios start to look more like the nasdaq 100 index, but vol-q is different than traditional volatility indexes because it focuses strictly on at-the-money options, options
most important to investors and hedges most volatility indexes use hundreds of options, many of them way out of the money. some of them 50% or more out of the money, and those aren't really very useful unless you're looking for a lottery ticket, so by focusing on at-the-money options vol-q has issues like skew and some of the noise created by some of those issues. should be a really fascinating tool for hedgers and trade sflers appreciate that scott, you be well talk to you soon. >> we'll take a break and do final trades on the other side. >> thanks. with the election a month away do not miss the town hall with joe biden hosted by nbc's lester holt on cnbc and nbc. we're back right after this. before we talk about tax-smart investing, what's new?
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welcome back we'll do final trades in just a moment do. want to tell you new at noon that third point has a new position in that company right there, snowflake that's according to their monthly investor report. i think it's my understanding that they got an allocation from the ipo which was wildly successful, one of the biggest that we've seen in technology certainly in recent memory shares of snowflake up 5%. joe, you have a comment on that. third point getting a position in snowflake, and, i mean, we talked about it on the day remember, we made a big deal about it because it was a very big ipo, and frank slootmn run
the company very highly thought of and this is a high space in regards to enterprise software. >> it is, and i wonder if, scott, this is not the first of what will be many institutional investors that were afforded in allocation and decided to hold on to it based on the fundamental, the management deed and the story moving forward, so i like what dan loeb is doing here in holding it as we look forward, and i don't think he'll be the first i think there will be many others. >> you've got shares that are high volume on the stock up about 6% on the day $240 let's do final trades. courtney, what do you have for me >> how about cvs 70% of the u.s. population lives within three minutes of a cvs so whether you like the growth prospects of that in a second wave or whether you like potentially if a joe biden win does happen, the medicaid potential expansion. it's a name you want to hold for the long term. >> okay. >> all right thank you. carrie, quick, please.
>> bah, one of the leading consultants. they particularly work for the department of defense and agnostic to the winner of the election. >> jim, i need a name. >> greenbrier, rails of breaking out. >> surat, name >> constellation brands, you've got the beer that's what i like. >> joe. >> seattle genetics. >> that does it for us thanks for watching. "the exchange" is now. >> thaerng you, scott. hi, everybody, on another busy news day and on wall street. the president is the still in the hospital following his covid-19 diagnosis, treatment and the top impact on investors. plus, two major issues the u.s. will have to deal with after the pandemic, weaker population growth and the drag of high debt. and an industry on the brink. we'll look at the future of theaters, malls and hollywood as cinemas chose down again and impact it's having on stocks, but first we
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