Skip to main content

tv   Fast Money Halftime Report  CNBC  December 31, 2020 12:00pm-1:00pm EST

12:00 pm
importantly a healthy 2021 and let me take a moment as well to thank our staff here, our team for "squawk on the street" and "squawk alley" which i've been able to host this last week or so, our producers, who have managed to show up day in, day out or at their computers at home and our technical staff here in the studio and back there in the control room. thanks to you all for your incredible work during this challenging time and a happy new year to you and to you, morgan brennan, as you take over the half >> thank you, david. i couldn't have said it better welcome to "the halftime report." i'm morgan brennan in for skcott wapner the last trading year of a remarkable market. joining me are joe teranova and
12:01 pm
our panel. first time with you guys today we're seeing record inflows, record valuations. the russell is on pace for its best quarter ever. so with this backdrop, we're going to look ahead to the new year and bring you the investment committee's strategies and best ideas. for that, i think, carrie, we'll start with you you're looking a the a mix of growth and reopening stocks. what are your picks as we head into a new year? >> well, morgan, because it's been such a fantastic year and as you said, the nasdaq has been strong, technology has led for most of the year, it's up 44%, we've owned a lot of those stocks but you don't want to push that trade too far. so some of the names that we like are growth names, home depot is such a name, we like sherwin williams, united health care those are stocks that have been good, they're growth stocks, but
12:02 pm
you also have some up side, even with a reopening and on the reopening side, we've got booking holdings, amt, which is a cell phone company but it's one that's down this year, despite having a good environment for business and for their general environment because people are on their phones all the time and 5g is going to help and the weak dollar will help we also think boston scientific, a device company that hasn't been able to do a lot of surgery because they've stopped all surgeries that were, quote, nonessential, even though i suspect for heart patients and their doctors, a heart surgery is essential so those are names on both sides. we're using both the strategy of staying with growth, staying with some of the tech that hasn't gone up too much and also continuing with some reopening names that, again, have not gone ahead of themselves. >> yeah. it's just interesting to hear
12:03 pm
you talk about the housing piece of that portfolio. joe, i'd love to get your thoughts, especially when i hear something like home and sherwin williams will we expect to see that next year, especially because inventories are tight? >> well, first of all, morgan, welcome. >> thank you >> i love carry's strategy we've had so much in prior months about investors being forced into this binary decision, you either need to turn left in your portfolio or you need to turn right i want to stay balanced, i want to be in the middle. that's exactly what carrie is doing here she's got growth, she's got value, she's got health care, she's got technology and, yes, she has exposure to housing and to answer your question, morgan, as long as i know the federal reserve is going to continue with this historic accommodative
12:04 pm
monetary policy and private sector borrowing costs are going to remain low, then housing, given that we have a very tight inventory to begin with, housing is going to continue to be supportive now, in certain regions in the country, you are going to hit the ceiling in terms of pricing but there is enough demand out there and there will be enough opportunity that i think housing will continue to work, maybe not as strong as it did in 2020 but it will continue to have a bullish trend in 2021. >> before we move on, joe, what are your specific fixes here >> i'm emphasizing exactly what carrie is doing and i'll introduce probably the investors' best behavioral word and that's diversification think about coming into 2021 morgan, i'm sure you've heard it in many of the interviews that you've conducted well, we want to be invested we believe that the environment is a good one to be invested but
12:05 pm
we think a correction's coming at some point, right we hear that from everyone that's the overwhelming consensus. well, what do you do with that in reality i think what's important is that you're diversifying by asset class. you're not getting out of fixed income because you're going to need taxable fixed income in your portfolio you're looking geographically, not just looking at the united states you're looking at equity size class. you want large caps, you want mid caps, you want small and you're looking strategically as well i'm still going to hold on to my mega caps, apple and microsoft i'm going to hold emerging market debt. think about that for a second. having exposure outside the u.s. and exposure to taxable fixed income and i'm doing it through an etf, enb, 20% of that emb has exposure to oil-producing countries like qatar and saudi arabia i like that strategy
12:06 pm
and in addition to that, i think the trading environment will remain volatile. it is going to be a continuation of what we experienced in 2020 where the average for the vix was 29, which was double the average over the last ten years. within financials, who benefits in that trading environment? morgan stanley, goldman sachs, that's my exposure and i'm not advocating to electric vehicle producers, i'm going second derivative. who is taking the technology in these vehicles, that takes me to sensata technology >> and we'll get into the electric vehicle a little bit more as well as the oil one, too. john, i want to get your reaction to that >> yeah, i agree with joe. i this i thnk that should play nicely emerging markets have been some
12:07 pm
of the hottest that they've been in years, quite frankly. europe, not an emerging market but nonetheless did get a lot of boost from basically the beginning of november through now and now that they've negotiated, i guess, this brexit, we'll see how the rest of it plays out, morgan. but i think that things are shaping up pretty well for 2021 and i happen to agree that we are likely to see some sort of pullback and i would think that that would come in the first couple weeks of -- so a lot of folks think it comes later in the year, morgan i happen to think it comes early in the year because of some of the darkness surrounding, you know, the rest of the rollout of these vaccines and so forth. i think during the time when we see spikes after thanksgiving, after christmas and into new years here, i think that will be one of the times you might see some of the pressure and of course profit taking on some of these stocks
12:08 pm
>> yeah. when we have conversations about things like emerging markets, you can't overlook just the incredible weakening we've seen of the dollar in recent months i want to get your thoughts on pullbacks, carrie. do you see that on the horizon >> i'm sorry, did you say a pullback >> yeah. >> we are seeing a pullback in some of the hottest names in the market, if you look at the ipo class of technology and biotech names that were up 500-plus percent. take a look at snowflake and moderna. great experiences that got ahead of themselves. i've written a piece about trading more than ten time sales and are 10 billion in market value or more, they had reached 15% of the entire market capitalization, all stocks traded publicly, and that was
12:09 pm
too much in terms of the allocation that investors had placed and the faith they placed in some of these stocks that were 100 billion market cap like snowflake. they've got to grow into those earnings over time so we're seeing a pullback already. maybe it's profit taking it could be profits coming back from other world mavrkets. i'd like to put together one table that vinny put together for me and thank you for all the tables and charts for all the years. this shows the ipo markets that still only represents money raised about half a percent of the entire market or even less when you pull out the spacs. but that market has driven a lot of demand to high-tech names and a lot of market sentiment has moved toward ipos and the type
12:10 pm
of names, airbnb, door dash, palantir, those have gotten very expensive and we should see a correction in those names but it's unlikely that we believe, that it could pull the whole market down. >> last but not least, i want to bring jim into this conversation as well. you're using our bar ball strategy of growth at a reasonable price you have six ideas break them down for us >> welcome again, morgan let me echo what everybody is saying, which is this is not a time that you need to take or even want to take massive belts on one sector or one style or one region that's reflected in my bets. i've got a couple of reopening stocks, i'm talking about general motors and boeing. these are companies that mac things, that have been held back this year but will grow again nicely in 2021 and in the years to come because we are starting
12:11 pm
a new economic expansion and cyclicals perform well at the beginning of an economic expansion. the growth of a reasonable price includes qualcomm and orbcomm and i think it is now coming out of a couple of years of sort of a morass, that was not its fault but it's coming into the sweet spot of its earnings cycle and finally, you always want to have some story stocks i look at marathon petroleum, talked about it for a little while. they're going to close the sale of their gas station line, the speedway gas stations in the first quarter. it's going to give them $21 billion of cash versus a $25 billion mark cap you know, can you do a lot with that cash to recapitalize the company. and finally viacom this may be wishing forever on a star but i do think at some
12:12 pm
point there will be more consolidation and content and delivery of content and viacom looks like an attractive takeover in that space >> they do also have "star trek," if you're a space nerd like i am, joe >> love "star trek." love "star trek" i've been watching the original series with my son it's like going back 40 years. i love it. >> joe, i want to get your reaction to that not the "star trek" part, unless you want to. >> no, i'm going to pass on "star trek," but general motors and boeing, i think these are two companies that, yes, you do want to give consideration towards in 2020. i think everyone needs to also factor in the possibilities for a capex recovery in 2021 confidence will ultimately be presented in which the c sweuite will be able to go out and i
12:13 pm
think capex will be incredibly important in the industrial space. that's why i'm in honeywell. i think capex will impact technology and i think that leads you towards the semis, which john and pete najarian have talked a lot about. i have exposure to amd and then a semi-commitment name, teradyne so capex will be a prevalent theme going forward here in 2021 and a lot of the trade opportunities will directly be a consequence of that being presented. >> yeah. honeywell is an interesting one, too, because of the industrial technology adoption and rollout as well. john, you have two reopen trades, american airlines and carnival cruises, which are down about 50% this year. gosh, these are like the ultimate reopen trades i want to get your thoughts on why you picked these and how it's tied to the vaccine rollout
12:14 pm
on a bigger, broader scale >> sure. i was working with our market strategist, a.j. monte and we looked at these and said you look at the american airlines, institutional ownership is at a low. it's basically under 45% right now. that is something i think that changes a lot in the next year, morgan also, the fact that you've got shares down 45, almost 50%, as you say, and that the float, short float is about 32% it might even be higher right now, as we get into the final week of the year, now final day of the year. so i think any kind of good news on the reopening really causes a squeeze for a lot of the folks that have bet against american on the other hand, with carnival, they've already done fabulous you remember, morgan, because you were reporting on it back in march they were going to raise money, they had to put the boats up for collateral and
12:15 pm
everything else. mr. lazry was one of the guys that got me interested in this trade. i bought the bonds they were about 11.5, 12% yield. they're down to 5 right now. >> wow >> 5 and when they're doing new offerings, they don't have to tie it to any of those boats or anything like that these are unsecured loans now, shows you how much it's -- people are looking into the future as far as recovery here and it's still half of where it was, you know, when things weren't in pandemic form like they are now, morgan so i think both those stocks could do exceedingly well and you could get some real outperformance from those in 2021 >> certainly speaks to the i guess big are discussion we've been having about just how much pent-up demand is going to be out there for people to basically hit the skies and hit the water. we only have a few hours left to trade in 2020.
12:16 pm
frank holland is looking back at the best and worst performing s&p 500 sectors. frank. >> 2020's top performing sector is right alongside the worst performing sector for 2020, at least for december energy's 5% gain is especially notable given the really rough year for the sector, still down more than 30% in 2020. big oil and gas names like phillips 66 and halliburton have posted double-digit gains and diamond energy up this month real estate and utilities, that are falling behind real estate, it's actually the cell tower reits that are dragging on the sector apartment owners like of a lon bay and essex property among the worst performers lumber producer weyerhaeuser is
12:17 pm
up 15% this month. soaring lumber prices playing a big part here. the commodity up more than 100% in 2020. >> lumber futures have been on fire this year, perhaps not surprisingly given the conversation we've been having about housing. a number of other commodities, too. frank, thank you happy new year >> let's drill down on energy specifically some of these stocks are up, phillip 66, devin energy and halliburton. what do you think of it now? >> we wish we owned it the last couple of months it's still down 30% from its all-time high. that i think i've got right. and refining is something that is a scarcity. and phillips is a great refiner. so it's a play on a recovery we don't own any energy stocks
12:18 pm
the only thing we have is bon tier, bnt, a play on fueling stations and measures gasoline and fueling for the entire fleet of cars, trucks, et cetera you have to believe for energy to do well, that they have to have cash flow that continues with numbers on price of fuel in the 40s. you need to see a reduction in the number of institutional investors who are selling down their fossil fuel holdings there's an efg rush into the type of companies that are not fuel dependent and that's a negative that isn't going away that's one of the reasons that we don't own the energy sector so we decided to play it through other types of industrials i know that jimmy owns energy stocks and has done really well
12:19 pm
with them this quarter, but it's not a place that we put money. i have to say, though, on "star trek" i always wanted to the the major when i was young he was my favorite >> lieutenant. she's a lieutenant did you give her a field prom ? promoti promotion? >> he was promoted she was promoted >> i look forward to when i get to fill in on the show and have the conversation with you guys in person. >> jim, the fact that carrie just mentioned the fact that you do own some of these energy names, i want to get your take and your reaction. >> yeah, i think this is an important topic. because the last quarter you've seen all energy companies come up even some that are dramatically damaged and may not have very bright futures so i'm talking about in particular the smaller
12:20 pm
exploration and production companies or the offshore drillers these are companies whose business models have been, i believe, permanently impaired. so much what you do with this because you're going to have a decrease in demand over time for fossil fuel, you've got to stay with the big names in the fossil fuel space i'm taunging abolking about thed chevrons of the world, kinder morgan is a pipeline it's true that you do have stability in oil prices a the a higher level than any of us suspected, but the wave of esg and renewable energy is going to keep the winners very -- a very tight group. so you have to be stock specific going into 2021. you have to be you can't just throw a dart at the energy board you'll get beat up >> in terms of the integrateds, john, exxon mobil just came out with that updated guidance going into 2021 or for the fourth quarter and warning that there's
12:21 pm
going to be a $20 billion write down one of the bright spots, and i realize it's been a really rough year for that company but also the chemicals business what do you think of exxon right now? >> it's been a fabulous ride from september, i think, morgan, the stock was 31, now it's 41. i like that one. but i also really like the solars so i own csiq, canadian solar, sun power. i think there's a lot to be said for that space and those stocks are just on fire and not just since september all year long. it certainly didn't hurt when president-elect biden got the nod because obviously there's going to be even more focus on those into 2021 and beyond is he space, the final frontier. i like it, morgan. and i think these continue to do well i heard that, carrie >> all right
12:22 pm
well, stay with us for more trades we are just getting started. john imaginian e i najarian is options. and as we go to break, a check on the s&p sector. we're basically flat in the s&p. 3730 is your level there and financial communication services and health care are the top performing sectors in what is a very quiet session here on this last day of trade for the year whereas energy and tech are your worst performers we're back in two.
12:23 pm
12:24 pm
12:25 pm
investors piled into semi stocks what's ahead for the chips, josh >> surging more than 50% in 20 and nearly 130%, by the way, from those march lows. big movers in nvidia, amd and qualcomm intel your worst performer, the only one trading in negative territory. one important thing for chip investors to watch next year and beyond is big tech companies now becoming big chip designers themselves that's a trend we know is accelerating for example, apple recently launching new mac, swapping in
12:26 pm
its own chip and swatchipping o intel chips and amazon there aren't that many companies that can afford to do this because it is expensive. they have the money. it can make financial and strategic sense, lowering costs and improving performance. so how do traditional chip makers respond to the trend? they are making bold bets themselves, amd, bernstein and stacy, he says intel is the most at risk from this trend because of the incumbent and its core markets are in tact from all sides. intel stock down nearly 20% this year and now facing new pressure from third point, hedge fund run by dan lobe. >> job, thank you. >> jim, you own qualcomm and nxt
12:27 pm
and you appreciate owned intel what is your take on the space right now? >> the fact that you just mentioned three such different companies within the space speaks to how diverse the strife is you can be in nxpi, which is a great play on the automotive sector it's also takeover bait. the space is consolidating intel, unfortunately i think it's damaged right now it is salvageable but it's not a one or two-quarter process this is a multi-year process the big thing for intel is their size they're so big it gives them economies of scale that improves their gross margins, but they got to get it together on the production side, on the operations side. then on qualcomm, it's in the sweet spot right now there's no litigation going on, ief its customers aren't so siou su,
12:28 pm
countries aren't suing it. for right now mill that can cash cow. >> it will be interesting to see what happens with intel given the fact that so much chip making is not done here in the u.s. and we do at least currently have an administration that has been pushing hard to see more of that come back stateside, what that will look like under a biden administration and whether we have those conversations, too. so baron calling nordstrom a department store survivor, saying the stock still has more room to run. it's down almost 22% for the year but get this, surging more than 160% in the last two months. it is our call of the day. joe, you like nordstrom here why? joe? okay we're going to go to john. i think we're having some technical difficulties there john, i thought the mall was
12:29 pm
dead what's going on with nordstrom >> well, they don't waste their time in a lot of cities that aren't going to work for them. this is a -- i think more of a luxury manufacturer -- not manufacturer, retailer, morgan, than a lot of people realize they love going into these stores they just were having that new one open in new york and then the pandemic hit but i think that concentrating on the markets where they think they can sell rather than just having a gigantic footprint, which is what a lot of theothe retailers went for, they're regretting those gigantic footprints in many cases i think nordstrom being much more specific to geographic areas, morgan, is going to serve them well and i think there's stills possibility that the family could decide to take them private, but after this big surge, i think that's going to be a much tougher move >> carrie, i want to get your thoughts on this
12:30 pm
you mentioned at the top of the show that one of your picks for 2021 is home depot you're looking at the home improvement retail space what do you think about apparel and a name like nordstrom, that is so exposed to mall, especially given the year we've seen >> morgan, it's a very interesting question here you have a company, it was a premium company, a great department store brand and now it's facing all types of upheaval in its industry i'm not just talking about e-commerce and amazon. what happens to macy's, what about sachs and neiman markus? on the luxury end a questionable future for the big players and then macy's, which is slightly below nordstrom, trying to move itself either positioned a little bit more up scale or going to cut back on a lot of retail locations and nordstrom just has to play their hand very carefully, not knowing what
12:31 pm
other participants in the industry will do there were about six years over the last ten where the company earned more than $3 a share. i think that's unlikely for a few years, if they can get into the 2s, 220 to 250 a share, put a multiple on that, it can trade over $40, into the mid 40s but there are a lot of ifs in that whole statement and i'm just not prepared to commit right now they'd have to start to show more cash flow, begin to pay the dividend back. you know, i just don't know. i think it's -- it's a good company and i'd say well positioned in an industry that's going through major disruption and maybe they can be a winner, but not one we would put money into right now >> i think to your point, fewer competitors out there right now. as a consumer, it does seem like they're stepping up their
12:32 pm
e-commerce game a little bit joe, i want to get your thoughts on nordstrom >> i'm back. the e-commerce is very strong for nordstrom. let's not have the recency bias as it relates to nordstrom if you're going to take a position, make sure it's very small. they are high-end fashion, they do have brand recognition. i'm going to introduce dillards, dds, into the conversation if you are thinking about buying nordstrom, i think dillards probably is a better opportunity because of its geographic location for its stores. it's in the southwest, it's in the southeast. economically i think there's better viability with their store location so give consideration to dillard's as well >> let get headlines with mike s santoli. >> in minneapolis, police will release body cam video from a traffic stop that ended with a
12:33 pm
man shot dead, the first police-involved death since george floyd a crowd formed at the site of the shooting last night. >> the u.k. reporting 5,000 ne covid cases today. they are urging people not to go out for new year's eve pope frances skipping the vatican new year's eve because of a flair up of his sciatica. and back in britain, the father of prime minister boris johnson is applying for french citizenship. stanley johnson says he's french because of his mother. stanley johnson was a member of the european parliament who voted for the urchl.k. to remain the eu >> sciatica is no joke mike sto, ananlithk you.
12:34 pm
>> unusual activity trades are next "halftime" back after this yourg else that's good to know? if you have medicare and medicaid you may be able to get more healthcare benefits through a humana medicare advantage plan. call the number on your screen now and speak to a licensed humana sales agent to see if you qualify. learn about plans that could give you more healthcare benefits than you have today. depending on the plan you choose, you could have your doctor, hospital and prescription drug coverage in one convenient plan. from humana, a company with nearly 60 years of experience in the healthcare industry. you'll have lots of doctors and specialists to choose from. and, if you have medicare and medicaid, a humana plan may give you other important benefits. depending on where you live, they could include dental, vision and hearing coverage. you may also get rides to plan-approved locations; home delivered meals
12:35 pm
after an in-patient hospital stay; a monthly allowance for purchasing healthy food and beverages; plus an allowance for health and wellness items. everything from over the counter medications and vitamins, to first aid items and personal care products. best of all, if you have medicare and medicaid, you may qualify for multiple opportunities throughout the year to enroll. so if you want more from medicare, call the number on your screen now to speak with a licensed humana sales agent. learn about humana plans that could give you more healthcare benefits. including coverage for prescription drugs, dental care, eye exams and glasses, hearing aids and more. a licensed humana sales agent will walk you through your options, answer any questions you have and, if you're eligible, help you enroll over the phone. call today and we'll also send this free guide. humana, a more human way to healthcare.
12:36 pm
major averages are hugging the flat line right now but john
12:37 pm
najarian is tracking unusual options today. what are you seeing today? >> in jets, this tracks the airline industry and it had underperm formed like crazy. but from the moment that vaccine was announced that the emergency use was authorized, these have been outperforming the major indices. and we see speculation that's going to continue. march 27 calls, they're aggressively buying those for about 60 cents they bought some 4,000 they've added to that even on this last day of trading where we see volumes a little lighter. so that's our first one. our probably be in those, morgan, about a full two months. the second one is vornado, a re reality trust, a 6% dividend deal and they're buying the january 40 calls
12:38 pm
i luke thike this one a lot new york coming back, these guys are majorly exposed to new york and that's why the stock has been cut in half with the pandemic shutdown, new york, san francisco, chicago, with that reopening, that's where they are exposed, morgan, so i like that one as well. probably two to three weeks in this trade lastly, this one is a little more expensive, it's the february 402250 calls. they paid about $4 for these these are a house of brands, if you will i like these as people get back out and shop, these guys benefit this is rather than direct-to-consumer play, the shopping, and i think that also hits pretty good in this next few weeks of 2021. these are february calls i'll probably be in them about 30 to 40 days, morgan. >> of course i love how you just
12:39 pm
pronounce that, too, like a realreal rea itia capri traders are answering your questions next we're going to bring you answers to those when "halftime" is back in two minutes alright, who can break this down for me?
12:40 pm
coach saban... i crutched out to the mailbox and there it was - a medical bill for twelve-hundred dollars. i had no idea i'd have to pay that. that's right. it's hard to know exactly what your health insurance is going to cover, so you gotta protect your blind side. aflac! aflac pays you money directly to help with expenses health insurance doesn't cover. really? aflac. get help with expenses health insurance doesn't cover. get to know us at aflac.com. get help with expenses health insurance doesn't cover. (music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries.
12:41 pm
12:42 pm
scott little from snowy pennsylvania at what point do you judgment into crm? i know it's up big but i'd like to start a position. what's the magic number? >> jim, what is the magic number >> sorry, morgan didn't mean to talk over you scott, thanks for the question i recently initiated a position about $2 higher than where it is right now, which is only 1%. you may have some heart palpitations maybe about the valuation 48 times earnings. i'm going to tell you for this company that's growing this way and acquiring slack, i think that's a huge move, that's actually the right price
12:43 pm
don't be wishing for it to be down 25% to a multiple that you like if that happens, the stock will be in trouble. you want to buy it here and let it keep growing from here. >> all right next up, another video question and this one is for john >> question, any recommendations with respect to the ev or electric vehicle market? battery-wise, i do believe quantum state is overvalued at this point appreciate it. thank you. happy holidays >> i think you're wise to be focused in on this sector. evs in particular and batteries seco secondarily. tesla is the largest producer of those lithium batteries and i think some technologies that i'd love to discuss but some of the stocks just aren't quite big enough, they set a threshold level on cnbc for stocks that i
12:44 pm
can talk about in that regard. but i think as far as the evs themselves, li, nio, tesla, i own all of those and i think that also feeds into many of those solar plays because they're going to need a lot of power to push those vehicles around and i think solar will play a bigger role in that going forward. >> frank in germany wants to know about netflix, buy, sell oral hold. i know you own it. >> frank, good question. we bought netflix not very long ago. the stock had underperformed since the beating of september it really took a pause and we had this surge from disney, with disney plus really moving ahead in their integration, but netflix is number one around the world. if you think about what the power of that is, every time they raise a price, the money just falls to the bottom line. they have enormous power now in production and distribution and
12:45 pm
we think if you go out three years, the stock sells at a mutt man -- multiple, maybe 30, 32 earnings three years out that to me is reasonable and we like the stock here plus the chart shows you that it's starting to gain some more support with investors >> up 3% today a little maybe netflix and chill on this new year's since people probably aren't going out as much for the holiday joe, jamie in boston wants to know if you are still a believer in seattle genetics. >> jamie, i've been a believer in seattle genetics for the last couple of years and it's because of the wonderful work they are doing with cancer therapy, introducing monoclonal antibodies to treat that if you are roos eecently in the stock, understand, there is downward pressure because they have filed for a potential share sale maybe the 200 day 165 is a place that you could lighten up. but i'm not doing so
12:46 pm
i'm staying with this, i believe what the company is doing and it's going to be a long-term holding for me as it's been for the last couple of years >> jay in westchester asks, nor northrup grumman continues to be neutral. is there any sign of a breakout ahead? >> i think what's been holding them back is fears about defense spending cuts under a democratic administration i think that's misplaced because nor nor nor nor northwill the rop grumman is taking a long time to fulfill its destiny. >> the b-21 bomber program is expected to get fully funded from that, too and it's got that play on commercial space obviously so watching it closely with you,
12:47 pm
jim. but i want to shift gears here we're going to talk about gold set to close out its best trading year scein 2010. how the futures traders are playing the metal into 2021. we're going to have that next on "halftime.
12:48 pm
12:49 pm
> . welcome back gold set to close out its best year since 2010.
12:50 pm
talk me through it, bill >> morgan, thank you for having me on here happy new year listen, i love gold. this year, i loved it for a long time and loved it going into 2021 if you bought gold december 23rd and held it through the end of january, you've made money 15 out of the last 17 years this is a very seasonably 17 yes this is a bullish time of year you have the dollar weakness and the dollar index closed down 6.66% on the year as of yesterday, settlement price. i think commodities are going to have a great year in 2021. gold is going to benefit technically gold is at a trend line from the august high and trying to break out. comes in at 1,900. i think there's a great tailwind breaking out there i'm going to use the 50-ounce e-mini contract. a stop down at 1850. that's risking 50 bucks or $2,500 my target to the upside is $2,000 >> i'm going to put you on the
12:51 pm
spot here because we've seen a pretty big run on silver i think it's bun of the best performing assets year-to-date and the tend move together i wonder if you have any thoughts about silver as we head into 2021, whether we see that ratio narrow or if it's different for silver, like electrification playing a role >> i love silver i think it's going to continue to outperform gold i think it's outperformed gold 48% relative to gold's 20 to 24%. silver has broken out above that friend line from the august high and using that trend line as support mroe it's building a really nice base i think we'll see silver trade up to $30 here over the next month. i think $35 is in the cards next year for silver. >> silver and gold bill baruch, happy new year. thank you for being with us and breaking down the trade. coming up, the earnings to
12:52 pm
watch for next week. plus, we have final trades we made usaa insurance for members like martin. an air force veteran made of doing what's right, not what's easy. so when a hailstorm hit, usaa reached out before he could even inspect the damage. that's how you do it right. usaa insurance is made just the way martin's family needs it with hassle-free claims, he got paid before his neighbor even got started. because doing right by our members, that's what's right. usaa. what you're made of,
12:53 pm
we're made for. ♪ usaa
12:54 pm
that came from me. really. my first idea was "in one quarter of an hour, your savings will tower... over you. figuratively speaking." but that's not catchy, is it? that's not going to swim about in your brain.
12:55 pm
so i thought, what about... 15 minutes. 15 percent. serendipity. 15 minutes could save you 15% or more on car insurance. it's got all my favorite shows turn oright there.boom, i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪
12:56 pm
12:57 pm
we had a few companies reporting quarterly results including micron and walgreens the company raised its q1 guidance >> i do. >> go ahead. >> i think they're going to knock the cover off the ball here the main reason is these data centers, morgan, that is one of the significant drivers because of cloud usage and then the second part of it is, they mentioned on that call in particular 5g a lot of people look at everything but micron for 5g micron is going to be a big
12:58 pm
player in that as well watch this one. >> we see shares up about 4%, 5% right now. jim, walgreens is also on deck but you own cvs. either way we cut it, we're talking two names key to the vaccine distribution in this country right now. >> exactly right the earnings results for the prior quarter aren't going to matter for walgreens it's what they say about the distribution of the vaccine going forward. having said that, i do like cvs better i like them both but cvs is integrated with the aetna health insurance business, they have the minute clinics that serve people in the stores, give them actual medical advice. i just happen to like cvs better but i think both are a good play going into the new year. >> you owned consolation brands. we have that name reporting as well. >> yeah. they can really pull out something good not only are people drinking a lot at home, but we can start to looking forward to drinking in restaurants, and that's great for the business/hotels events
12:59 pm
that's one to keep an eye on. >> it's time for final trades. last time in this 2020 calendar year joe, what's yours? >> well, my final trade is goldman sachs, but i also want to cite in a year that obviously we -- we don't want to remember but, unfortunately, it would be hard to forget i want to thank all the viewers for tuning in and let's hope for a bull market not only for risk markets but society as well. >> amen. jim? >> joe said that so well, i'm just going to echo what he said without being specific well done, joe marathon petroleum is my final trade. they sell speedway, $21 billion of cash. that's a first quarter play for me and with that, morgan, thank you. and to everybody, live long and prosper. >> oh, yes thank you. john >> yeah, morgan, all of that's great. i love you hosting the show. thank you so much. american airlines.
1:00 pm
i bought the calls in there, 40,000 of them, rolled out till may. that's 4 million share equivale equivalent i think they're going to be right and i like that airline. >> jets, jets, jets. kari, 15 seconds >> booking holdings. it's the ultimate in the reopening trade. we're all going to travel, take planes and stay in hotels. and happy new year to everyone thank you, morgan. thank you to everyone at cnbc and at home. >> thank you to the traders and the viewers. have a very, very happy new year here's to 2021 that does it for "the halftime." "the exchange" begins right now. >> thank you, morgan don't worry everyone, this is a star trek free zone this hour. the last day on what's been a wild and unforgettable year. take a look at a chart of the dow since january. this tells the story we started the year with the index around 28,500 and, woosh, just three months later we

370 Views

info Stream Only

Uploaded by TV Archive on