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tv   Fast Money Halftime Report  CNBC  October 4, 2021 12:00pm-1:00pm EDT

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interviews today >> it was fascinating to hear from antigone davis. but there are reports that whatsapp and facebook are having connectivity problems. neither are working for me right now and they're pretty widespread reports right now >> down detector with a few tweets let's get to the half. >> thanks so much. welcome to the halftime report front and center this hour, we're inside the sell off in stocks tech wrecked again as facebook faces the fallout over whistleblower's accusations. what that means for your match up with an ominous october underway debating today -- let's check stocks after friday's surge, under some significant pressure this hour. led by technology. dow's down 1%. about 350. s&p off about 60 points. there's the nasdaq though. two and a quarter percent to the
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downside a loss of more than 325 points steve weiss, i start with you today. cramer says of the activity in the stock and a story around facebook today, this time is different. this situation is no longer not at risk. he says that because time and time and time again, negative story equals no negative stock reaction clearly this time may be different. facebook shares are down significantly today. they are off the lows. you sold half of your position this morning, i'm told >> yeah, i sold half first thing this morning and frankly, i wouldn't have done it in reaction to today's news i'm glad i did because it was at a higher price, but i've been thi thinking about selling for a while. go back to october of last year, i sold my entire position and re-entered in may of this year and missed a significant move, still making money in. look, i have no idea if the whistleblower is right or wrong. seems we're in an environment
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where everybody's proven guilty until proven innocent. >> there's documentation of what the whistleblower said right? so let's deal in fact, not fiction. >> i understand. well, we will deal in fact and you haven't seen what the whistleblower has in their possession you haven't seen the other side either, so we don't know the facts, scott that doesn't matter in terms of the stock. advertisers are going to say, no mas with facebook. tiktok's not the answer. there's a lot of truth we know it all but i'm not sure and i don't know the answer. facebook has been the evil empire that's been the perception whether it's a reality or not. we know that mark zuckerberg has been arrogant. so all that adds up to the fact that this is not something you want to buy here you want to wait to see how it turns out. my concerns have always been about this about hearings, just a stream of bad news flow and you're not going get any good news flow out of this. so that's why i sold half. on a pop, i'll sell the other
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half >> the two biggest issues here, joe, are what cramer talked about this morning and what weiss references now whether advertisers turn away because it's been a duopoly. they must change the algos, said jim cramer, i will not support them until they do so many people on the show own the stock. shannon owns it. joe. weiss, the joe t. owns pete john jenny. sarratt. that in of iptself speaks to th broad level of support this company has enjoyed regardless of multiple stories throughout the years that are certainly negative the threat of regulation on facebook none of it, the stock's been teflon is it different now? >> i do think it is and i wonder
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where the stock would be if it did not have instagram i think instagram is one of the most powerful catalysts for facebook i've not owned the stock for many, many years never been a fan of the leadership never been a fan of prioritizing some of the things that management seems to be doing at facebook so i do think it's different i think if you hold the stock, you want to look at the technical formation. 315 is where the 200-day moving average is the stock price has not traded below that for the better part of the last 19 months. a challenge below there is going to lead to further deterioration. you're in a buyback blackout window and a lot of the pieces surrounding facebook was the ability for them to buy back their own stock. they can't do that right now >> jason, you have a 3% position in the stock the company is out today on cnbc, on multiple programs thus far not zuckerberg, not
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sandburg any suggestion that we are trying to engage bait is blatantly false. the global head of safety was just on. facebook is always trying to do better and trying to do more i crumbled the paper up and throw it over my shoulder, but i have important notes on it can't do that. do you change position today >> it's a good question, scott obviously yesterday that interview on 60 minutes was very damaging what i would say about the stock, they had 2.89 billion users. they have a presence they have a lot of reach i do think there's always been headline risk with facebook. this hurts the stock i think this might be different here but i think you know for me, i'm just going to continue to watch it over the next couple of weeks and see where it heads. you know, they have the cash flow they can make a meaningful change here and we'll see what
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they do. we'll see what they say and you know, where we go from here. >> let's bring in somebody who has more at stake in this than anybody else on the program. and that is john najarian. facebook was his number two position behind apple. doc, you there >> yes, i am, scott. thank you. >> you joined us on september 22nd you mentioned that day the significant amount of put buying in facebook that you had noticed t then have you changed your position since then to go along with the put buying you saw on september 22nd >> well, yes, scott. and i'm calling you from vegas because we just finished up our conference and if you want to gamble, facebook is a gamble at this point the reason, vegas is exactly right. there are 2.9 billion active users on the platform, but this
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isn't just the european union taking a look at them, scott this is somebody from the inside and just like you and steve said, i haven't seen the actual documents, but on the 22nd of september for a couple of days there, i reduced my position by over 200,000 shares and the reason i did that, scott, was that they were buying puts like there was no tomorrow and they continue to this day, right now, buying downside puts now some of those could be hedge, you know. they could just be protecting their positions and others could be just betting that, to joe's point, that the 200-day doesn't hold this thing sees 280 in a heart beat so yes, i sold half my position. i bought and loaded up on puts at that point. happy that i did and that's all on live tv that's full disclosure that was my position at that time i am still in, this has fallen to about my number ten position
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right now, scott from number two. and you and i talked many times about, you know, all of the different issues that people talked about them for the election did they push one way or another during the election? do they try to push people into groups that feel the same way they do and thus sort of accelerate hate and things like that well, those are beyond just accusations now. if the whistleblower is correct, they've actively done that so i don't think a lot of esg sort of investors are going to basically stick around because of that. i think they will, it won't just be the advertisers, scott. if these are proved to be true, there will be significant changes. perhaps at various high levels within the company, but also they may be forced to break parts of this up or lose many of those esg investors. >> doc, let me ask you the trillion dollar question f you will we're talking about company's market cap
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you mentioned if the stock breaks below a support level and trades as low as 280 does the story continue where that is bought by the legions of people who have owned this stock, including nearly everybody who's associated with this program, or truly is this time different from an ownership standpoint if it goes down below, will you buy it back and increase it to the level that it once was if not close and do you think others will as well? >> like i say, scott, time will tell, but i'm really concerned i know my friend kevin o'leary would be concerned because he's a real guy that focuses in on these various esg metrics and when you can or cannot invest in some of these stocks this may be a do not touch stock for a while until they prove to people these allegations or either false or until they put in real measures to stop anything like this in the
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future i got to believe there's a lot of endowments and institutional investors that will just not touch the stock even if it gets very attractive on a drop because they'll have to justify it to their shareholders or to their universities or various endowments >> stock down greater than 5% as we're talking about it doc, bear with me for a second shannon, it's not a huge position for you, but you have ownership in it. will it become a smaller position than it is in terms of your book? >> well, right now, i think we're slightly overweight to the benchmark and i don't know that i would necessarily adhere i think it's an important point though that if you think about what we're enduring from a tech rotation perspective, this certainly creates a backdrop where this is maybe not as much of a buy the dip scenario as it normally would be. to the point about the documentation, it certainly provides the government with additional color and context, which has been the problem over the last couple of years with
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them making anything stick to your point about them being teflon they just haven't had the information and hadn't really understood it. perhaps this trove of documents allows them to make a better case but we're not sure where they're going to go with it. we're seeing a fierce rotation away from technology i think investors could be more interested in adding to their position here, but just giving the head winds we've seen over the next few weeks, the yield curve, i don't know that this is necessarily a great time to add to your facebook position, although i don't think at longer term, this is going to result in some of the dire predictions about breaking it up, as jon mentioned. >> i'm assuming while you were in vegas, you were with pete at your conference. do you know what he's doing with his shares i don't believe he has any options action going on in facebook, but he has stock do you know what moves he's made definitively i don't want any speculation on pete, but do you know what he's
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done >> i believe he's been adding puts to protect the stock he still owns i do not know if he's lightened up i spoke to him this morning briefly, but we got interrupted with some other stuff. i know he's purchased some puts. i don't know if he's lightened up on any shares >> appreciate it >> thank you, scott. >> you'll hear from jon i'm sure at some point this week if not several times and you'll get his unusual activity as we always do the other, you know, issue, shannon referenced it, the pullback we're seeing in tech and it's been, take friday out of the equation where you had a really nice bounce you've had selling in big tech and it's been one of the issues weighing on stocks as i look at my board here. nasdaq's down more than 330 points it's more than 2%. are these stocks in jeopardy of having a significant decline more so than what we've witnessed already in the last
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month? september was brutal facebook was down 13 that's in and of itself, but apple down 10. biggest company on earth in terms of market cap. amazon down 8.5. microsoft down 6.5 you know, those are the so-called big five >> i think what you're seeing is a resetting of valuation look, never have i been so right in the market and lost so much money being right. but i've chosen not to sell microsoft. i've chosen not to sell some of the others facebook being the exception i own puts in apple. there i think you've got some idiosyncratic risk so, yes, like the market overshot with a multiple on apple that frankly i don't believe it deserves, it can overshoot in the downside. i think that's what we're involved in. look, i came in short the cues i came in short the smh, the semi etf, but it's doing little to help me today and over the last few weeks so you've got to market where
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the glass is half empty. not half full. we're seeing fewer, you know, conviction from retail and buying the dips. that's evidence. employment benefits have rolled off. you've got an earnings season i think is going to be disappointing and you've got a fed, despite the fact ten years now below 1.5 yield, you've got a fed that i believe is going to have to pull forward their rate hiking so i don't see the positives hopefully i'm surprised by a great earnings season. i just don't think that's in the cards. so it's a question of where you catch it where it bottoms out and i'm not sure we're there yet. so, look, yeah, the others could sell off all value, all stocks with high valuations are taking it on the chin more than others and microsoft just continues to execute. amazon continues to execute. apple's even executed. we'll see if it does going
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forward. i think those are the issues you have to put it aside and just take a long-term view >> jason snipe, lastly before we move on from our conversation within technology, twitter question for you so with all this new money coming from facebook today and you know n thin the last month, which faang name do you put money to work? >> it's a good question. i like microsoft here. i like the enterprise, the opportunity and what microsoft does for small businesses going forward. i think generally, faang has been selling off weiss makes a good point on just the general reset. i think that is obviously happening. so but for me, i think the pick would be microsoft you know, in where tech is right now. where the opportunity is i like that name here. >> we have a lot of moving parts today including news out of the nation's capitol we are following the debt ceiling debate
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>> president biden is not backing down in this fight with repub republicans over the debt limit. he said congress needs to raise the debt limit but that republicans need to get out of the way and let democrats do this on their own. importantly, he resisted pressure for democrats to use the fast track reconciliation process in order to raise the debt ceiling he said that that process is an elaborate procedure scheme and there's no time to do t. he said that is when accidents could happen now democrats say they want to bring the debt limit bill to the floor this week. we will see if that happens. if republicans also refuse to back down. but the president said, scott, that he cannot guarantee that the country would not reach the debt limit he said that's going to be up to mitch mcconnell. back over to you >> so yet another thing for the markets to keep their focus on maybe be nervous about for certain. thank you. shannon, in terms of where we go from here, mike wilson says a more aggressive fed on tapering
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sets the stage for both fire and ice. quote, the magnitude of the ongoing correction should be determined by q3 earnings and retail's commitment to buying the dips steve weiss talked about that. fire, 10% correction ice, maybe 25, 20% is what mike wilson's been talking about. ubs, quote, equity market sentiment was hurt by a combination of worries over growth, central bank policy, fast rising yields and the fiscal impasse we believe such concerns are overdone we expect the rally to resume. what do you think? fire and ice or a resumption of the rally? >> not to beat a dead horse, but many of us over the last couple of months have talked about these rolling corrections and joe's been a vocal advocate of that thesis. i think that's what's going to continue so i see something in between.
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i think that we are experiencing this diminishing concern about delta. i think that's leading folks back to the epicenter stocks some of the more cyclical stock, but based on the market, the way that the indexes are constructed, it's going to be difficult for the market to rally from here with tech under so much pressure i think we need to see alleviation on the pressure and yields i think there could be corrections that are upwards of 1 15, 16, 17%. we've seen that in facebook and we could see that in other sectors and industries the under current of economic growth should be maintained. if we're talking about a 2% ten-year, that shouldn't put any of us to be particularly concerned about the relative opportunity for these companies going forward. that's not a huge debt burden. and so i think we're not seeing it in the debt market. we're probably not going to continue to see any support in the debt market for a massive correction in equities, but
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there could be in certain sectors and industries, an opportunity over the next six to we eight weeks and i think investors should be very careful and aware of what's happening an think about in an environment where we're going to have continued low rates over the next couple of years, you could position your portfolio now to enjoy some of this low growth, low interest rate environment that's going to persist. >> joe, cramer today, i don't think earnings are going to be nearly as bad as the stock market thinks. what do you think? you're looking at tough comps to match up against if you look at catalysts to lift stock, at least keep them from suffering the ice part of mike wilson's equation, they better not be horrible. >> yeah. so q2 eps year on year growth was around 88% the expectation now is for about 27%. listen, the market, scott, it's in the most tenuous position it's been in arguably since the
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onset of the pandemic in the q1 of 2020. as it relates to earnings themselves, i think you're kbgoin to have to hear some comfort and clarity from corporations regarding two very distinct variables in the market now. one of which is what's the corporate tax rate going to be if we have certainty on that, there will be some guidance that's distributed i also think that oil prices are going to be a significant factor and a factor in the guidance not so much in providing clarity, but really clouding the vision looking forward we've got a little bit of an issue here it's represented in the form of a stagflation environment and it's really based upon seeing natural gas prices and oil prices continuing to rise. what happened today with opec plus is not a bearish contributor to the price of oil. in fact, it's disappointing in terms of the amount of supply that's going to be added to the market we wanted twice as much as we're
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getting from opec plus so i think oil right now is one of the leading indicators for the consumer and corporations as we look forward here and i think it's very difficult and complicated to understand what happens. >> i want to have more on this in a moment, but let me bounce to julia who has a statement regarding this outage that she mentioned just before the end of tech check that we noticed, at least reports julia, of facebook, insta and whatsapp all being down what do we know? >> facebook just responding now, both the facebook app and whatsapp tweeting out they're aware some people are having trouble accessing. at the moment, they're saying we're working to get things back to normal as quickly as possible and we apologize for any in inconvenience. the whatsapp saying they'll send an update here and thanks for your patience. no word on instagram
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it is unclear how widespread these outages are. this all comes as facebook shares are down 6% and we're awaiting the testimony from the whistleblower tomorrow before the senate congress committee. back to you. >> thank you for that. let's do this. weiss, we have to have a conversation okay i noticed something. you sold penn national gaming, okay now, you have tweeted a lot about it like, a lot. you've praised them. you've paraded port noy. it's endless now i find out you sold it wt, you know what. what's the story >> we're cable, scott, so you can say. >> i can't i like being in this seat a lot. >> so you don't respond. here's why i sold it
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it's a nearly full position. i've been clear about that on twitter as well. and my view on fort noy still stands as i'm doing more work on it and i bought it if you recall, i said i'm buying this because of the football season increasing the attention these stocks are getting because they corrected and hoping it would go up. that didn't happen so i sold it at a loss, but here's why to me, i see a lot of parallels between here and the cannabis industry where you have that major uptick in the stocks nobody can get enough of them. you had some of these stocks at 20 times where they are now. there's too much capacity. and when you have betting lines, you stick to the betting lines so the only way to drive your particular business is through marketing costs. are you going to give potential betters $100, $200 or $1,000 so when you've got irrational pricers who don't care if
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they're going to make money in the market or not, talking about draftkings, it's very tough to make money what i like about penn -- z >> just realize that, weiss? >> well, no, i didn't just realize it i was hoping it would be different with the football season if the football season weren't starting, i wouldn't have bought the stock. so it was a trade i stayed in too long i hoped to be able to build it, but it's just much, much too competitive without a clear path to generating return so if you look at the forecast, ebitda is going to be flat for these companies for the next few years so i think they're a bad investment period, end of story it was a mistake lost money i don't want to compound it by staying there, buying more >> all right i like putting you on the hot seat you sold ericson why did you do that? >> i did ericsson, china was a big market
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for it and when the swiss came out and said we're not taking hu wai and we want you to get out of here, they're revenues went down to nearly zero from china the stock's done nothing i made about 50% in the shares it's done nothing over the last six months or more i'm looking around saying, okay, where am i going to miss opportunity? if i sell it, it was one of them it's a fine company. it's been restructured i'll be back given my market position, i just want to get rid of it. z >> speak ing of china, you shorted baba and pdd what's up? >> actually, i pretty much stayed in baba their earnings estimates, people forget about this.
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they've declined nearly 50% and china's not getting any better every day they come out and it's something new. again, means you only own a revenue stream pdd has no revenue shareholders that still own these things are going to be severely disappointed. may wind up with zero because vie structures are illegal in china. that's any view. some chinese authorities have said that. so i don't know what you own here you can't value them relative to other companies. u.s. companies it's a joke. there are no assets supporting your vies. so i think people come around to it there are other ways to lose money. i think there are great ways to make money, too, and it's not in china. general motors is a bright spot today activists revealing a stake in the automaker. we're going to talk about that plus, who do you think is going to call in to talk about that?
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update at this hour. president biden saying republicans are being reckless and dangerous about the debt limit. he says it must be raised to pay for policies republicans passed during the trump administration. mitch mcconnell says democrats must act on their own to raise the ceiling. democrats say the move should be
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bi bipartisan the pentagon says china's increasing military activities near taiwan are destabilizing. china flew 52 fighter planes towards taiwan today it's the largest such show of force on record. japan has a new prime minister he was elected to that position by both houses of parliament a general election will be held on october 31st. and the bridge connecting detroit and windsor, canada, has been closed. police are investigating possible explosives found on the canadian side of the bridge. scott, back to you >> appreciate it general motors shares bucking today's selloff. says today that gm can become a growth company again leslie picker is following that money. how do they intend for gm to do that, leslie >> that's a good question, scott. chris james, the founder saying
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on squawk box this morning that gm is quote a triple over the next five years, meaning shares could triple in that time frame. at the end of the second quarter, engine one held about 400,000 shares worth about $21 million. it's unclear they hold now, but it's about 6% of their portfolio as of the end of q2. james emphasized it's not necessarily and activist stake they really do like what gm is doing right now in terms of its transition toward producing more battery elected vehicles the investment idea is on that front. it stems from this white paper they worked on in conjunction with battery vehicles noting that tesla is not enough and that gm is a leader among the incumbent automakers the firm writing quote, gm by virtue has progerhaps the stront
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foundation, substantial patenting and now it's moves to secure future battery supply now, they have been engaging with gm management, including mary barra exxon, part of an industry in the middle of this cleaner transition engine number one, of course if you remember, earlier this year, successfully beating on the company to install three of its director nominees on the board of exxon earlier this year that of course has investors paying attention today with shares up 1.7% right now >> i can tell you who is paying closer attention than likely anybody this side of engine number one and that is farmer jim who joins us on the phone. oh, no, he's right there hi, jim. >> hey, scott. how are you? >> you like this news? >> i do. before the news broke this morning, gm was up in the premarket and i don't think anybody knew about the stake i think what it was reflective is that there's been a nice,
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slow drip of good news from gm looks like the cruise division is going to start running the robo taxis in san francisco maybe before the end of the year, but certainly early 2022 the cruise division is very important if engine number one really sees a triple in five years. it's not just electric vehicles. it's autonomous vehicles i think the way you get a triple is you've got to break up the company. got to spin out crews and maybe even spin out the electric vehicle business and leave the legacy vehicle business as a stub company i mean that's not unlike what form pharmaceutical companies have been doing in splitting up between their innovative and legacy products. cruise and the electric vehicle business, general motors, they've been there for a few years and i don't think the combined company is getting the respect it deserves. >> hold on hold on. >> i wouldn't expect them to be quiet for long >> are you personally playing the stock right now for a split?
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mary barra doesn't seem, i don't know what she's thinking right now, but it's not like she has led up or made it seem like she's even open to that suggestion in any way, shape, or form, and you're also, it sounds like, expected engine number one, and i know this is where you're going to end your commentary at, you're not necessarily sure that they're going to remain not with a more forceful position from an activist standpoint, right >> we're all of us savvy market participants engine number one will quietly go along endorsing the plan as long as the share price picks up but again, if they've got a triple in mind over the next five years -- >> do you? >> look at the market cap of rivian look at tesla. mary barra has been very consistent, very clear thart sh doesn't want to break up the
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company. engine number one has been very consistent that it will be activist if it feels it needs to be so. i have not been calling for it but i feel it would unlock the share value quickly. >> let me get a comment from weiss who no longer owns it. i've got one guy who bailed and one guy who is mr. all in. steve? >> so, look, i have a tag end of it jim's original price target was 60 and as it got to 60, i sold most of it actually forgot i had it in one account so took the occasion to get out because i believe that volkswagen and porsche are going to be much better performers they're going to be number one in ev next year and are firm number two now they've got great share in china. it's a much cheaper stock, about
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six times earnings i'm there. jim, we could talk about this. >> what are you talking about not succeeding in china? god, i love you, steve >> like vw vw's got more share in china >> i really don't -- fabulously in china >> guys, you sound like a garbage disposal i can't understand what you're saying too much going on at one time. jim, you can rebut what steve weiss said >> thank you, your honor gm has done very, very well in china. i don't really care what vw is doing. gm is killing it in china and frankly, it's the north american market where you're looking for success. you're looking for the lithium battery technology, which engine number one talked about the patents involved you're looking for that to be licensed out to other companies around the world >> that's the last word. jimmy, thank you for calling in. weiss, don't worry weiss has other things to talk about today, jim i know you have a big smile on your face. some investors don't today
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moderna, weiss, you better gear up for this one. stock's down another 6% today. no golf course is going to save you today. we're going to talk about the big etfs to watch. today's sell off check the s&p sectors as we go to break energy, utilities green, everything's red we're back after this.
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welcome back to the halftime report on the etf edge today, china's power crunch has been ruling the global commodity space affecting everything from oil to copper to soybeans and nickel prices now with u.s. inventories on rise and an energy crisis raging in europe, the equation is getting more complicated by the day, so let's drill down on the sudden surge in oil prices and things like industrial metals, copper, iron ore how investors can best play it joining me is dave and will, founder and ceo of granite shares i will go first of all, dave, to you. this whole notion about etfs in the marketplace. it seems to be where a lot of people are taking their views.
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are you seeing any kinds of row educ rotations that we should be noting >> we've seen a lot of interest in china despite the fairly negative headlines investors have been chasing china all year long. in september, we had another billion in change show up in china etfs the energy thing as you pointed out as a layer of complexity, what we're starting to understand is the interconnectness between energy market, industrials and metals i know a lot of people are trying to play copper today with cper, which is really the only game in town for direct copper exposure, but i think if you're looking for a more broad energy inflation play, i'd stick to core commodities >> will, if you want to play that core commodity exposure type situation, how do investors
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take that view with the etf market >> there are a lot of ways to do that, but probably one way is the granite shares commodity etf, with symbol comb. there's a broad representation of the commodity market. investing in commodity futures you have a basket of 23. really just a one ticker solution to get exposure to the whole commodity market >> dave, will, thank you very much for that. we are diving deeper much deeper into that commodity crunch and seeing how etfs are setting up for the most volatile month of the past year tune in 1:00 we will be joined by matthew bartolini. ept ght here the halftime report is back after this break ♪ ♪
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♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ with a bit more thought we can all do our part to keep plastic out of the ocean.
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shares of moderna down 6.5% today. down more than 20% are shares in the last week alone following the news of merck's new
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antiviral. steve weiss, one of your biggest positions, you called in from the golf course the other day when the stock was down, i think it was 15% at that time. you said it was outrageous, without merit, totally ridiculous unbelievable buying opportunity. you said you bought more now the stock is down even more. so you back on the hot seat, weiss. what are you doing now >> so, let's go through the fac facts of the story >> those are the facts those are the facts. are you intimating like i didn't give the facts are you talking about other facts? >> thoeszse are the facts >> hold on, my phone's ringing >> that's me telling you that's enough >> which facts are we dealing with >> when i came on friday, i said that i bought three times, i gave you the prices. >> you did >> it's my biggest position ever i will not go home with the same
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size i did go home owning more than i started the day with and i did add this morning so i own more than i did when friday started now i'll give you the facts behind the story and they are these the merck, the merck therapeutic is not a substitute for preventive further more, merck is only 50% effective. we haven't seen the data we have no idea what the side effect are, but to me, it's idiotic to say i'm not going to take the vaccine because i have a 50% better chance of not being hospitalized or dying by taking this pill. so that's number one number two and you've got tamiflu out there, but you still get a flu vaccine, so it's idiotic on the merck news today, the european medicines agency came out and say we believe you should take a pfizer or merck booster 28 days after your second dose 28 days if you're
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immunocompromised. number two, they also approved boosters for everybody over 18 six months after but this is not just a covid company. it's still the cheapest stock i own based upon the covid revenues you will need a booster, that's clear, and you will going forward. so to sell based on this news when the stock is trading with their platform that's more than doubled in the last couple of years, really speaks to the market not to moderna in my view. so it's not the only stock that's done incredibly well that's come down, but the fundamentals truly are getting better every single day. that's why i like moderna. it's a long-term play. yes, when stocks move up like this have, they're going to sell off when the market sells off, but i take a long-term view and i'm happy to still have it as my largest position with all the good news out there. plus, the merck pill, while may prevent you from going to the
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hospital, doesn't prevent you from getting long-term effects as hundreds of thousands of people have from long covid. so why wouldn't you get vaccinated assinine >> the two most important things i hear here as it relates to our viewers who may own the stock and got in with you or because of you, you said you added more this morning, again, right check. yes? and everything that you said about your fundamental case around the company, you prefaced, in your view all right. that's important to say. in your view and we'll see what happens your points are all well taken we'll see what the business impact is, if any, as a result of the news we got from merck, which is likely not the last piece of positive news that we're going to get around antivirals i think we can all agree on that we will be right back.
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more trades from our gang straight ahead
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we are back. ibm is hacking on in today's sell-off the company is meeting with investors today, of which shannon saccocia is one of them. what is your take right now on ibm? you know what? the stock has been kind of a sleeper. it is up 14.5% year-to-date. been a little quiet over the last few months and it is down 5.5% from its 52-week high what say you today
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>> well, if you think about it from a valuation perspective it is clearly more attractive than other areas of the tech space. i think a lot of investors got concerned with whitehurst left the firm that the integration of red hat would be stalled out in the investor call today the takeaway it is going forward as planned. the consulting business is trying to monetize existing relationships by bringing in strategic partners i think ibm pays a great dividend and it is a great way to add to technology exposure if you want to stay out of the way of the faang sell-off we are experiencing >> union pacific up grated from equal weight at bark lays. you own that, shannon. >> i do. i know a number of people on the committee own this stock, maybe not today, but if you just think about what we're experiencing with supply chain dislocation,
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the need to build inventories and the infrastructure package that certainly will happen, union pacific has a great technology platform upon which it manages its rail system so it is a great way to play from an industrials perspective a lot of the tailwinds that i think we will see over the next couple of years. >> we did mention ibm. of course, it is one of the stocks mentioned in jim cramer's newsletter today you can sign up to get cramer delivered to your inbox. jim will be sending out e-mails, writing for our website and appearing in videos online to give you his unique insight into the market you will have a front row seat to what stocks he is trading and why. find out more at or ttbeer point your phone at the qr code and it will take you right there. back after this.
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all right. final trade. shannon, you start us off. >> valero energy >> i like nike here. >> moderna >> bac, bank of america. >> good stuff. thanks, everybody. "the exchange" is now. thank you very much, scott hi, everybody. i'm kelly evans. here is what is ahead this hour. stocks are resuming their slide as we kick off the new week with tech back to leading the decline. the nasdaq down 2% semiconductors down nearly 3%. we dissect the downturn to look at what is causing it this time and whether we're in for a fourth quarter to forget meantime, the chase is on for energy, those stocks bucking the down trend again as oil hits a seven-year high, remaining the best sector for the year, only one in the green last month an


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