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tv   Fast Money Halftime Report  CNBC  August 24, 2021 12:00pm-1:00pm EDT

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cyberattacks googleo sundar pichai and jp morgan jamie dimon also reportedly received invitations. carl. >> see what that looks like tomorrow in the mean s&p, nasdaq, shooting for four straight gains. record high on both, and the nasdaq continues to tread above 15 kp let's get to the half. and welcome to the "halftime report." i'm frank holland in for scott wapner stocks hitting all-time highs and major milestone for the nasdaq and new call taking the s&p 500 target for the year to a new street high. what's taking us there of course we debate the next money moves with our investment committee today. that includes downtown josh brown. stephanie link, michael farr jon najarian co-founder of market and kate moorehead of the mattox strategy for blackrock global allocation team. let's check the markets. nasdaq hitting an all-time high
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reaching 15,000 for the first time ever. the s&p 500 as all-time highs. the dow about a .5% from a new high there and what we want to talk about right now is the bullish call from wells fargo highest on the street as we mentioned forecasts about an 8% upside from current levels points to historical data that the s&p when it has a price return above 10% for the eight months of the year it's never finished the last four months or average for last four months, excuse me, is above 8% saying eps revisions will be a catalyst kate, if you don't mind, let's start with you what's your take on the bullish call how do you see stocks shaping up in the broader market the rest of the year. >> i think positively. i'm kurjd by the earnings revisions the last couple quarters we expected at one point in the second half of 2021 we would see
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a rollover in terms of the upgrades to earnings forecasts that hasn't come through because companies have managed costs with rising inflationary pressures. margins look healthy i think we'll see more upgrades. i believe that the next stretch of market will be driven by earnings upgrades as well and that we'll end the year higher than we are today. so remain constructive for sure. >> josh wsh turning it over to you. highest price target on the street for 2021 but they see a bit of decline for 2022, how do you see the market shaping up for the rest of the year >> i tend not to pay attention to that kind of thing because nobody really knows what's going to happen. most of the time when a strategist is putting in a note like this basically they're extrapolating current trends to the future if you were looking at like 2020 outlooks in the middle of 2019 it's laughable how off they were because of the massive exogenous
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event that literally change the world. there is nothing to say that couldn't happen again in 22 which means in stuff isn't helpful for investors. i think having a situational awareness of how the market is acting right now is helpful. and is actually fact-based and the rotation of this market continues to be hilariously amazing. hugebounce in chinese tech stocks, nobody would have foreseen that. there is no reason for it to happen but i think from a sentiment standpoint probably helping out a little bit all-time high in the spx, the ndx and the qqew, which is the technology equal weight of the top 100 nasdaq stocks. massive breakout let's look at the achilles heel of the market, russell, ripping bounced at 2125 off the downtrend one of the cleanest support lines you'll see if that turns tout to be support it wouldn't shock me to see the russell rally.
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google all-time high, facebook about to make all-time high. the jets, the cruises, when resorts have a big bounce. and the only pullbacks here are the biggest winners of the year, target, costco, i think these stocks look like cloud computing companies. they should have a little bit of a pull back. that's what the tape looks like. don't worry about 2022 we'll deal with that when we get there. at this moment bull market on. >> josh brown with the bull market stephanie, to you, josh isn't the only person seeing a bull market tom lee seeing a rally all around all the headwinds the markets experienced in the last couple weeks, months, have have been have been transitory i know you're in favor of a bit more bar bell approach do you see the same thing, overall rally. >> but i lean more towards cyclicaling with financials, industrials, materials, energy, because the stocks have pulled back so much from the mid-may
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high i do like secular attack that's part of the whole bar bell but i think you want to own cyclicals. why? because you have a solid economy. you have higher inflation. good jobs improvement, initial claims are headed the right direction. wages are up 4% annualize ds the consumer is still strong even though it tells you the consumer is rolling over, i totally disagree listen to home depot and lowes and best buy, and tjx, the consumer is fine there is so much pent-up demand for spending and 70% of the economy is the consumer that's superimportant. manufacturing, five-year lows in inventory, still supply chain issues but they have pricing power. i look at all these things collectively go back to kay's point on earnings why are earnings going up because the kissimmee ito is improving. not all is perfect we have unknowns on delta and peak growth concerns and fed taper. but i would sit back and say, tapering is okay let's embrace it, because the fed can taper.
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and i don't know is that friday, next month three months from now? but they should be doing that given where we are in the economy. i think it's interesting to note that in the last two days you have seen a reversal in terms of what is outperforming. and it has been the cyclicals and the reopen names and -- and actually tech lagged. see if this has legs but that's back to the bar bell approach you want exposure to both sides. >> stephanie sticking with you, rbc out with a note saying the tape certifies priced into the market you're saying -- what you say about tapering, rbc having a bit of a different take. how do you see that playing out for the s&p 500 for the rest of the year >> it's a good question. ink the cyclical stocks have gotten hit so hard because of the taper concerns and what it means. does it mean we slow dramatically i'm in the camp of saying there is so much stip lus in the system rates are staying low a long time. but we are continuing to have above trend growth in gdp, above
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trend growth in inflation and above-trend in earnings. maybe not to the extent we've just seen it but i think we can do tapering and continue to see growth. >> michael, over to you, you're a big fan of the u.s. consumer you're not betting against the u.s. consumer. but back to rbc's point. value and small caps underperforming? do you see see a abundanceback being the narrative for the last third of the year? >> i do. and i disagree with rbc. i don't think it's priced in part of it sort of is. the market reacted a bit to the idea of taper. but one thing you can count on, frank is a tantrum this market will tantrum and tantrum further when any actually start to taper and when they announce it and we hear from it from jay powell we haven't heard it from jay powell yet that will confirm it to the mechanic they will tantrum. why? because they tantrumed every time the fed backed off. to stephanie's point they've just got to do it we have to
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faith back to floral somehow and there is a lot of economic strength to endure and surge this sort of a taper so it's coming we'll get through it but to josh's point, too, look, this is still a bull market. and a lot of people have gone broke calling an early end or early top to a bull. in this trend is your friend the fed is in your corner. interest rates are low the economy is growing and earnings are increasing. price to earnings multiple right now is lower than it was a year ago. that's amazing so look, they're they're priced but i wouldn't bet against stocks tauvrl and i'm buying sfl michael farr agreeing with you on the e s revisions, jon where do you fall on this all? >> bull, since you're only giving me one word >> i enjoy the are sarcasm become that's a great word for this panel kate before moving to the next
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topic, really quick, talking about tapering, meeting at jackson hole later this week, how do you see that impact in the markets for the rest of the woke, the last third of the year and maybe even into 2022 can the fed be to late or too early with tape zbleerg we've been asking for a taper for a while at blackrock it's been our call the economy is strong enough to reduce asset purchases. i disagree with michael a little bit and say i don't think we'll see a huge tantrum in the equity market once the fed announces. we've been talking about it for months if not quarters and our view is actually that the economy is strong enough to withstand a reduction in asset purchases. companies are doing an outstanding job as i mentioned before managing costs. i absolutely agree with stephanie the consumer is in excellent shape. and we really can move forward here do we get a mini rotation when the first words of taper come out of jay powell's the mouth? perhaps but sustained? i don't think so and so on that front
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i like the secular winners we're underscoring positions in quality and growth at a reasonable price. >> jon maybe a few dozen words this time coming back to you on this one what's your take on tapering, the potential impact on the markets? >> well, i have said for a long time, frank, that i do not believe we're going to see that tantrum that michael says we might. and as josh said at the top, you know none of us know for sure. this is all projected based on what the evidence that we have right now. i think that they are unlikely to talk too much about the taper at this meeting because we've just had the delta rolling over. so it's not over yet but we can see that we are indeed following the curve that the uk followed, frank i'm feeling pretty good about that i agree that we shall be tapering here. i think they'll probably take one more meeting before any really push that aspect upon us.
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and then i think we'll be just if you know fine moving forward. >> something else we agree on tech hitting record highs, talking about the nasdaq and nasdaq 100, is this still where you want to be the rest of the year kate, i start off with you i know you don't pick stocks but is this sector still attractive when we look at the setup we have today formalo apple near all-time highs, microsoft also near all-time highs. >> a hundred percent technology is one of our sector calls. it's important to think about the companies technology enabled across all sectors you have the platform, making the investments. you're going to be in a good place relative to competitors. i think relative to, you know, just sort of nominal gdp growth rates. we're seeing those areas really accelerate you know, one area hopefully that we'll talk about a little bit is cybersecurity and software security. that's a place ripping today it's a high conviction theme, something we've had in place in the portfolio since the
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beginning of 2020 actually and it's got secular tailwinds, in addition to ongoing threats companies are going to continue to invest in technology -- and i think specifically in cybersoftware security and so i think this is a place that you want to be long for the long-term, even as some of the companies make new highs >> you know, kate, you're speaking it into casen crowd strike another stock trading higher, rallying on news it's added to the nasdaq 100, the nasdaq 100 equal weighted index and nasdaq 100 tech index this week. josh you're an owner, do you see the upward trend continuing as it enters the nasdaq 100 >> i mean, i hope so technically there is no reason it wouldn't. the stock is definitely volatile i bought it last september so i'm not even in it a full year meaning i don't have a long-term capital gain of it yet but up over 100%. and i've been superbullish on
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this a long time during up days and down days. and i get plenty of stocks wrong. but this one i feel like i really got right and i think the story -- the best is yet to come. look, you have to think about fogeltanz addressable market when you look at sass software companies or annually recovering revenue stories. and i would argue that cybersecurity is one ever the biggest tams in all technology it's unavoidable inevitability that every company in the s&p 500, every government around the world is going to have to spend more, not less, with every passing year on cybersecurity. and crowd streak's falcon x platform from everything i've read and seen looks like it is the absolute best. s it there is something called network effects. you think about the success of facebook, google, crowd strike has the network effect where the more companies join, the stronger the cybersecurity protection is.
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and so it's almost like a situation where you have to be in that network because if you miss out other companies have better protection without you. and when you join it makes it better for everyone. so those types of businesses historically have been some of the best businesses to own it's an expensive stock. i've argued expensive for a reason i understand the risk i take on valuation. so far the company's results have justified it. >> jon, to you, i know you are seeing some active call buying when it comes to crowd strike. what's the strategy there? >> um-hum. well, they're buying weekly calls that go all the way up to the 270 strike, frank. very actively traded i'm in those -- the calls below that because i liked buying them when they were at the money rather than choicing those out of the money calls but palo alto networks, as great as this news is for crowd strike, certainly palo alto networks just blowing it out
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and that stock up every 20% pa and wp both of niece stocks, to kate's point, if you're in cybersecurity, you're in the right spot and, you know, hats off to you, kate, over at blackrock for that, because these stocks are just going and blowin' and i don't see anything stopping them. >> you know, stephanie, looking at some of your disclosuring, you own fort net but you've been trimming in cybersecurity. can you explain why? i think every company as a need. >> it's up 103% year to date palo alto only up 23% forty net and 35 times ebidta cash flow. hard to justify. that being said, i'm skeepg a core position, total revenue i think compounded annually can grow 20% they're gaining market share, especially on the enterprise side they're generating a ton of free cash flow and margins are 35%, very healthy i like the story
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it's just it's had a really nice run. and any bad news i think the stock would get hit hard "i" looking at palo alto again because it has lagged so much, as everyone mentioned total addressable accurate in cybersecurity, 167 billion last year going to grow compounded annually 10% the next ten years. that's a nice tailwind and i want to have exposure but i want to be prudent about that valuation as well. >> kate, i want to give you one quick last word. because this was your idea to jump into cybersecurity. i know you can't talk stocks but any broad themes to pay attention to. >> i think there are a couple of points to underscore here, which is that if a company gets hit by a cybersecurity attack, it has huge financial repercussions, reputational repercussions and operational repercussions. no one can afraid to do that when you listen to the chief technology officers and chief investment officers, they are saying the same thing which is that cyber -- spend on spend software solutions is the top priority for them, not just?
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2021 but going forward and as the attacks become more sophisticated, and as systems become rowe become more diffuse it's incredibly important for the investment to persist. as i said huge secular call here i agree with all the panelists glad to see we are all in the space. i think there is more upside to go. >> already moving. >> one final word on this, if you don't mind, very quickly. >> quick word. >> the three stocks we're talking about with are some of the most expensive stocks in the market if you're a value player and you want to participate checkpoint, chkp, 20 times earnings, technically, i think if it can get above 135 that would be a breakout the stock has been consolidating about three years. so that now they're not as good. but that's why the stock is so cheap. they are the incumbent the other companies are taking share but not necessarily laying down they will fight back so that might be a good option for people who don't want to buy
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stocks at 50 times sales. >> turning from tech to value. i know josh says doesn't worry about 2022 but morgan stanley has a lift of names to buy and hold to next weier coca-cola names hon this list, steph, you own coca-cola what's your fake >> yeah, i like it it's been frustrating be, right only up 2% but at least a 3% yield. not that expensive i like it as a reopen name, 50% of the sales are off prem, convenience centers. that sort of thing i like what the company has done in terms of the product, totally revamping the product to what people want. and i just feel like it's also lagged pepsi for so many years now. we have to have a catch-up trade. i'm saying patient it's a staple stock. i don't own many staps but i can sleep at night with that. >> michael farr, philadelphia cream economies. i'm from frevld. a mondelez brand you're an ornd of mondelez what
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is your take. >> i was glad morgan stanley found my list. i've owned the stocks most all year and have talked about them on halftimex. if you wanted a jump on that you could do that. mondalez has not been a stellar performer this year but an area that has begun to move has tremendous amount of potential and they make, you get the floevld cream cheese and otherios and i like it as a staple and necessity in your house. >> yes, some of the stocks on the list, coca-cola, gilead, also visa, jon, you own some of the calls. do you agree with the take that morgan stanley offers here >> sure. and just like michael said, i love it when they look at my list and then add those to their list but, yeah, i like the transaction business over at visa love what gilead has been doing.
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i'm in coke with steph, but i'm in the calls not the stock i would like to see coke do better than they've been doing but they've been more focused on woke than on business appear and hopefully they focus on business more in the remaining months of the year. >> jon and michael, morgan stanley really got a look at the list underskoerng the need for cybersecurity. follow that trade a little closer best buy rallying on back of earnings beat. they said consumer spending on electronics really was a catalyst for this quarter. sales up about 20%, steph, i know you own this stock. do you think this trend continues even without that same level of stimulus that we've been seeing? >> i do, because they're not only seeing strong demand from the consumer but also doing things internally to make it a better company meaning operating margin, expansion. they actually expanded margins by 100 basis points, really good cost control on top of solid
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demand they were encouraging on the quarter. it's -- it's up 20% year to date but only up 5% in the past year. it's really lagged and it trades at 14 times forward estimates. i think the estimates are going higher i like it very much. >> michael farr is your chance a highlighted note from mike wilson yesterday, saying maybe people bought everything they want to buy that's why there is no inventory and supply chain issues maybe not the real reason the u.s. consumer is fading. at least in his opinion. what's your take >> i think what -- part of what wilson is talking about is sort of a pull forward in demand. and that has occurred a bit. never bet against the u.s. consumer spending a dollar more reliably than any consumer around the world, you give an american a dollar and they're going to spend it. savings rates are high earnings and wage growth is out there. and interest rates are still slow you could get a cheaper mortgage and refinance. you could get a second note
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mortgage on the home there is money out there the u.s. consumer will spend it. and as sfevny said, 70% of the economy is based on that consumer they've got cash they will spend it. >> i want to switch over to tjx, the discount retailer hitting all-time high today. stephanie you own it you're a fan josh what is your take you own leslie, a bit of an off-price retailer >> no, that is not in this category steph shuvrg on. >> josh, no, go oh on, josh. i'll follow up. >> i got nothing on this it's you it's you. >> stevrny you take it. >> all right i got it. all right. i got it tj, also a reopen name a common theme in my portfolio it's reopen. it's the treasure hunt people want to go to the stores, home goods, home sense, they have pricing power, gaining market share they beat on total revenues earnings free cash flow.
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marj ands were the best since 2016 i added to it last week, now the largest retailer in my portfolio. >> josh, you're right, i was conflating that with someone else i don't shop at these story. >> we know you big time, frank. >> get out of here kate, over to you, just any other thoughts about retail -- i know you don't talk specific stocks but best buys with a read on the consumer, a lot more people buying consumer electronics kind of stepping up the work from home situation >> yeah, look, i think some of the trends we're talking about with consumer is we saw huge amount of investment in personal electronics. i think that's ongoing the work from home trend is here to stay. even if it's part time post-pandemic. but what i'm really watching for -- and this sort of continues some of stephanie's ideas around the reopening trade, is a shift from goods purchases to services consumption for the average consumer you know, in the lockdown it was
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goods and only goods but as we reopen and hopefully as we get past the daevrt i would expect increased spend on services so i'm looking at some of the consumer names geared towards that when whether experiencing or parts of the travel space or entertainment in particular, which is one of my favorite reopening trades you know, that's where my eyes are right now. i'm keeping my fingers crossed and staying hopeful we can get past the latest bump and fire spike. >> the investment companyo committee is also making some moves. jon take us through your latest trades >> well, last week luckily i covered that short in alibaba, did not cover didi quick enough but reversed in didir. i'm not long it but out of those puts the ones i'm focused on, a lot of them that quite frankly, frank, pete was talking about as far as, you know, p. d. d, jd, a
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lot of these billy, had unusual call buying nasdaq and friday last week. those all jumped snow flake snow, was one i added friday as well that stock is off to the races with the obviously at data not really cybersecurity, but nonetheless, i still like this space a lot. and to josh's point, you know, the chinese stocks -- this is by their own hand the chinese come knit party, ccp was the one that basicallier to the stocks apart once they stopped tearing them apart or stopped setting them on fire, they did seem pretty cheap. and i think a lot of people scrambled back into those names i just named. >> all right, the rest of the investment committee, you sit tight. thank you to kate moore for joining us coming up, oil up for a second day. is the bottom in for the reenlts beaten down energy names we debate it and trade it coming up next on half. as a reminder you can watch or listen live on the go on the
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cnbc app, "halftime" back in two minutes. that building you're trying to buy, you should ten-x it. ten-x is the world's largest online commercial real estate exchange. and it's fast. if i could, i'd ten-x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it. i'm evie's best camper badge. but even i'm not as memorable as eating turkey hill chocolate chip cookie dough creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories.
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welcome back to "halftime report." heim ammo rahel solomon here is the cnbc you want update at this hour president bide isn't reportedly saying he will stick to the august 139s deadline to put pull out troops but the u.s. telling the taliban that the august 31st pullout
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will only happen if the group helps with evacuation efforts. biden has asked for contingency plans. a key health panel recommending that screening start soon are for adults. the u.s. ep ref task force says testing should begin at 35 instead of 40 for people obese or overweight. the aclu suing south carolina on a want on school mask mandates filing on behalf of students are disability and others at risk of become attention seriously ill if they contract covid the aclu says the ban and mask mandates disproportionally effects at risk students on the news the rising number of covid cases among children and what's being done to fight it, airing tonight at 7:00 p.m. eastern. back to you. thanks, rahel. turning to the flunk sector oil pushing higher and energy stocks in the spotlight. the top performing sector gaining nearly 5%. josh kiko kicking it off with you, what's your take on the
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broader space? >> look, i think these stocks, up, they're not supposed to trade one for one with the underlying commodities but sentimentwise they definitely is from a high correlation. if you think you have a view of oil materially different from the market and you want to trade the names, there are some amazing opportunities. they're very high beta stocks these days, some big short positions. there is a lot of volatility you can make money both directions none of that has anything to do with what i do i do to day my take on the next $5 in wti up or down, it would literally be a coin flip. >> stephanie, to you, i want to reference a note from goldman yesterday. bullish on the fourth quarter. price target for $80, 9 oh% upside from where it's trading now. do you see demand increasing even with the delta variant? all the factors in the market right now. >> i think demand is recovering
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as the global growth recovers. this is part of the cyclical trade. energy has pulled back nicely actually chevron is down 11% from the highs. it's a quality play. great balance sheet. they're doing all the right things in terms of asset sales and m&a they have great permian assets and you get the 5 a yield. i want to add to the one schlumberger is another one. down about 22% from the highs. they actually will benefit from higher prices. higher prices means more services this is a technology -- hidden technology play and margins have upside from leer then then diamondenback energy is fairly new. town 27% from the highs and doing all the right things in terms of increasing production, lowering capex and paying down debt i'm 200 basis points overth po the bench but the bench is soenl 4.2% in terms of nrpg. it's part of the cyclical trade i have.
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>> jon you have exposure calls for debit energy, marathon, the xop etf how are you feeling with oil right now. >> i feel better about it, frank, now that delta seemingly is shaping to that curve that i described out of great britain because the -- the delta variant has curtailed travel, cut back on demand because of that. and i think that the more we get into the fall, the more likely we are to see that travel accelerate backagain and delta die down i think that's good for u.s. producers. and i also really like stephanie's play in fang or in diamondback, i think that's a nice play, because permian, i think that's a great area to be in right now. >> michael farr to you if you bet on the u.s. consumer it's hard to bet against oil because you assume people are
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back out driving places buying things are you bullish on oil. >> frank, you were not supposed to hear that contradiction in my philosophy here. you know, yes, i think that the consumer -- recovering consumer will indeed probably support the oil prices they've been buying oil all the way along. the gross supply -- i mean the crude oil prices that have been changing ten% and 20% over a yeerdo period, 10% easily over a period of week are absolutely baffling to me the u.s. just sold its largest portion from the oil reserves that we have almost ever done and the surprise is stil hanging in there i go back to what josh says, i couldn't tell you for a flip of coin whether crude is going. i'm out and away from the trade for now. but i understand why someone wants to make it. >> goldman pushing the china case, already declining in the u.s., jon, creating more demand for oil at least on the back end of the year. coming up, medtronic shares at
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all-time highs after a big earnings beat. one member of our investment committee owns we'll trade it coming up next. plus two big calls on the street "halftime" back after this corporate giants like unilever and deere are in a position make the food system more sustainable according to an esg report by credit suisse and newer players like beyond meat and oatly group. the agricultural sector contributes more than 40% of the 40% of methane production. improving food waste and changing dietary habits could cut food related meth anne by half that's the esg fast fa oth y.ctf e what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view.
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♪ ♪ experience, hyper performance that takes you further. at the lexus golden opportunity sales event. get 0.9% apr financing on all 2021 lexus hybrid models. experience amazing at your lexus dealer. all right welcome back to half." medtronic hitting a new all-time high after better than effected quarterly results. eps about 10 cents above estimates. the michael farr, the man of contradiction. you own this what's your fake a lot of surgeries were put off
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during the pandemic? do you believe they continue to show strength in future quarters. >> i do. i love the numbers this morning, teebl on the top line, bottom line, and increased guidance one of my top ten stocks for the year it's not been a fabulous performer year to date, up 13% so it's lagged the market so far. i think that this is a good steady company and there are four things i like going forward. they've been investing in their pipeline for years new products, new developments, they spent money there those profits are coming on line here e.r. enal cath et wers medical devices. sailing at a selling a 5% discount to the peer group and a fabulous balance sheet this is a name looks like a core holding for me i hope for quite a while. >> steph, turning it over to you, you recently added to one of your health care positions, adding johnson & johnson stock what was the motivation there? >> it has lag the market as
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well, up 12% trading at 18 times forward. 2.4% dividend yield. committed to the dividend and raising it as well they have had great quarters all year long. beaten and raised. raised the dividend. i like they have a 3 prong approach, a pharmaceutical business, a med tech business and then the consumer piece as well i don't love the fact that the ceo is leachving the company but for personal reasons and they have a strong bench but i am sticking with it and continue to add if it lags. >> let's get to the big calls on wall street today. let's kick it off with live nation reiterated as a buy at jefferies. i know you also own this one, josh what's your take are concerts coming back >> yes, they definitely are. i don't even think -- i don't think that's up for debate the question is what will be the option as more and more artists
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and venues and even municipalities demand that people show proof of vaccine to come into the events so right now that- that knicks is all over the map. a lot of people went to city field on friday night for dead and company which you would never catch me at. and that was like a do whatever you want show, like -- but then you've got situations like jones beach on the south shore of long island nobody knows if you are vaccinated owner some people wearing masks. it's a bit messy you're not getting full participation in the live events sports either, just yet. but it's on the way. and i think the tours are getting bigger i think there is more money spent on protecting people and live nation is the best equipped company in the world to adopt owe adapt to the new environment and make the consumer feel safe in their venues so i'm long here
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i've been long here. i love the situation and i think the u.s. will be good for the stock. >> fedex reiterated as a buy by bank of america. michael farr you own this. >> i loved this stock, loved it a long time. if you look for something inexpensive to buy, this is one of those names that's still on the recovery list. it's 11.7 times earnings in a 19-times earnings market growing earnings i think at 15% probably the next three, four, five years, 1.1% dividend. it will go up and down with energy prices and with consumer numbers and everything else. but you get a solid balance sheet in the company that can execute, i love this name. it's very comfortable. a lot of my names are uncomfortable because they've gotten expensive this one hasn't. >> important to note how u.p.s. the big rival trading at 17 times future earnings. jon's latest trades and unusual activity next. make sure to catch the evolve
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all right. time now for unusual activity, jon, what do you see now >> well, frank, lucid, lcid, buying weekly calls in this one, frank. the stock is 22 and change they're buying the upside 23 calls expiring in just three days on friday so deep end of the pool, short-term trade i'm in the 22 calls and i hope to be selling upside calls against it as the stock ral rallies which i anticipate second one, frank, look at what's going on in royal caribbean,rcl, this one, buyin october skauls, the october 85s with the stock at about 82.50. they're buying upside calls there again, more of that reopening because of the flattening delta and then just quickly, frank, two on college plays, there is a whole bunch navb hitting because
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of the big takeover this week by pfizer at triple the valuation and for that reason there was speculation in two other big names, kura, in this one up about 15% since last thursday and they were buying the october 22.50 calls. the other one, frank, alxo, up 30% from the thursday low to the high yesterday i'm already out of that one. that was not option activity that was just stock. >> all right there we go. well, ask halftime, coming up next send in questions by video we'll play it on air e-mail at and back right after this.
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other than the fact that a lot of people don't know the story yet. i think it's one of the cheapest stocks i own it reported earnings last week that were extraordinary, 680 million in sales, sales up 24% year over year just lookat the big picture, w built 70,000 pools in this country in 2019, 100,000 in 2020, 110,000, on pace for this year that number should stay there for the next five years. every time a pool is completed, that's a new customer for life of company's like lesley's providing chemicals, toys, maintenance products i think it's a very unique business, only a $4 billion market cap i think the best is yet to come. i would not abandon the stock. my timing may not have been great getting into it.
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i don't have a shower or thunderstorm outlook, i have a long-term outlook on almost everything i invest in. >> next is for stephanie is ibm still worth buying. >> this is a turn-around story which takes a long time to evolve the management is executing flawlessly they've made 15,000 acquisitions in the past year in cloud and in software and i.t. services, really the higher growth areas within technology it's trading at 13 times, a 4.7% dividend yield while you wait i would be a buyer right here. >> next question is for john from john. does jon najarian still have any zinga options. >> i do not. it's not because i don't like the company. the options i have have expired.
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i tend to stick to the time frame that the unusual activity is if i were to be in the gaming space, i would like roadblocks much better at this stage. >> last question for michael rob in california writes, a while back you recommended dicken son do you still recommend it? >> this has been one of my more frustrating names, only up about a her sent they face headwinds from materials, cost, freight a 10% discount to the group, 1 times earnings, 1% dividend growing those earnings at 11% and a good balance sheet i think in that space of health care it's a more defensive name. yes, i'm going to hold it. no, it hasn't been a fabulous stock so far >> final trades coming up on
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welcome back to half quick check of the markets dow up 50%, s&p 500 up fractionally the nasdaq crossing the 15,000 milestone. cicso systems sharing a new 52-week high stock up more than 30% this year steph, you own it. >> yeah. it was a fabulous quarter. i actually bought it because i thought enterprise spending would start to recover in the
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second half of the year. we're starting to see that in the quarter they had 31% year or year product orders momentum is there. it gives a 2.5% dividend yield management is one of the best in the business i'm going to hold on to it hopefully it continues to go higher. >> speaking of momentum, let's get to your final trade. >> active. an auto parts company. i owned this for a very long time i sold it. i'm regretting it. down 7% from its highs, i think it's worthy of a bye. >> john, you actually just bought something can you explain? >> sure, sarepta i think into earnings they were about $67 stock. they have moved up into the 75 range now, upside call buying is what drove me in i'll be holding these a couple
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weeks, frank. >> josh, over to you >> general motors got hit too hard i would buy it here. >> michael, you get the last word >> truest financial, has a 3.4% defensive send great job today, frank. >> that does it for "half-time." "the exchange w" with kelly evas up now. >> thank you, frank. here is what's ahead this hour the nasdaq hitting a record high topping 15,000 s&p 5005,000 nearing a new high. even though we've been talking about it so much already, ten years of tim cook at apple many wondered how he could ever follow the legendary steve jobs, but he's done it so well, people are worried his replacement won't be able to measure up. plus, back to work or back at


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