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tv   Fast Money Halftime Report  CNBC  October 29, 2021 12:00pm-1:00pm EDT

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appreciate advertising, consumer loyalty, all of that. so important to watch that as we head into q4 with everything that we see happening with netflix and others >> and guys, one last thing, i just want to say throughout the show, we've had some employees take selfies in front of the new sign we have to identify that i don't know if you've seen it behind us. they're excited about it >> they're going to have plenty of toime. have a good weekend, now to the half. >> i'm scott wapner. front and center this hour, what it means for stocks and whether both names are a buy on today's dip and we'll ask the investment committee. joining me is kerry firestone, and shannon saccocia, dow is positive, s&p was positive slightly knocking on the door yet again and nasdaq was the loser coming off its lowest levels there's the russell yield on the
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ten-year and pete, the story of the day is the comeback and that's how i see it. the market basically brushing off what it got from apple and amazon and those two stocks are off of their worst levels. >> yeah. i think it's really impressive, quite honestly we never got the huge spike you might expect in the vix either, scott. when you look at two monster names and some of the disappointments that were there and yet you don't see that huge spike in volatility. you don't see a lot of overly concerned trading going on and suddenly we start to see a comeback in apple for sure off of the lows of the day so a lot of interesting movement that we've seen and i expected apple to make some sort of a move maybe back to the upside and we, raced some of the jump that the stock had yesterday with this morning's and then some, but it's just started to rally right back towards those numbers once again so it's not that terribly far off of its all-time highs. i actually read the quarter differently than most.
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i thought the quarter was better than most people interpreted it to be and they're still bullish on apple >> those were the words he used and we can get to that in a minute, but kerry, the great miscalculation from the naysayers, if you will, has been the willingness of people to buy the dip and that narrative has changed because when the market's gone down of late the buyers come in and they're doing it again >> yeah. exactly. if you go back to the beginning of october, the nasdaq at one point was down 8%, and it came right back and we've been hitting new highs. everyone knows there are supply chain problems and that's going on with the slight miss. 1% miss on amazon's top line a little miss on apple, but when you think about the total disruption in the world system of delivering things and having factories open, this really isn't a lot of a miss.
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apple's sales are running at a pace that exceeds the pharmaceutical industry plus all footwear sold in the united states these are tremendous numbers and amazon is investing heavily in producing the product that they can deliver for the holiday season so, yes, a disappointment. the stock is reflected do we take the stocks down 10%, 15%? no there are buyers in there, as you say and every time they get an opportunity they do purchase stock. >> so terrific numbers that's what kerry said about apple. i saw it differently than the naysayers said pete, yet i don't have anyone on the panel coming in and buying the stock. if this was such a gift for investors, shannon, where is everybody? where are you guys at? i go down my list. it says shannon not making any changes today. kerry not adding to it today pete, not doing anything today
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why not? why not? well, we already trimmed our position back in december so we're about half way to the market and our view was that we are going to see this longer replacement cycle and certainly the supply chain concerns i think everybody knew about, but there is concern for apple that this could extend into mid-2022. services were up almost 26%, but you need to be growing your installed base in order to monetize that services growth. so for us, i think there's a few more quarters here where you get some uncertainty in terms of the ability of apple to meet and demand i think it deserves a place in your portfolio which is why we're not selling it i would say i'm more optimistic on some of the other faang names or the magna names or whatever we're calling them now, but i think, you know, if you don't hold apple in your portfolio you can initiate a small position,
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but this isn't the end of the road for the supply chain concerns for apple in the next couple of quarters absolutely, you should have it in your portfolio and we're half way for a reason and we turned it back in december as a result of that? >> yes, we know it will get worse. tim cook told us as much last night, but if you're bullish the stock and you saw the stock moving towards its high and you personally still have a view that it's going to be around 160 or so or north of that by the end of the year you just got a 4% gift to buy the stock why didn't you jump on that? okay when you talk about me, specifically, remember that in february and march i was loading up on a trading batch of shares in the low 120s. that's up about 20% and my chech thesis on that is i'll be out of that by the end of the year above 160 and you will reach a new high and come back to that in a second.
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if you don't already have that trading share lot on your core position, today is the day to buy it as for me, i already have it, scott. the stock is up 5%, 6% from the all-time high. >> forgive me for interrupting you. i want you to explain to viewers what you're talking about and you're talking about a trading lot and an investment lot. i mean -- give me more specifics on that, please. >> yeah. this is -- so we can make money on all of them. >> jimmy cramer has the same thought on this. >> that's okay you want to have a core position on apple >> not criticizing you in any way, shape or form i just want to know what you're talking about. you want a core position in apple and if you don't have a core position you're basically shorting apple versus the market i have my core position, but there are times when it gets ridiculously cheap times when it gets expensive it got ridiculously cheap earlier this year and that's
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when i said my core position stays where it is and i'll add extra shares at 120, 122 with the idea of taking them off 160 and 170. when it gets above 160 those shares will come out and i suspect those will be this year and i will maintain it going back to 2013 >> by the way -- >> -- and which will probably remain for the next few years. >> i don't think cramer has 47 different trafrpes of apple stock. he's the one that says own it, don't trade it i don't think he's trading around his position. i don't know what he's doing on a day-to-day basis and i'm not trying to speak for him because he's not sitting here right now. >> let me be more helpful here whoever is doing what doesn't matter here's the most important thing. apple has bought back fully 25% of its shares over the next few years and they're continuing to generate the cash flow to continue to do that. so this is warren buffett's mentality and it's my mentality on the core position, as well,
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which is to say you are owning an ever-increasing concentrated share of earnings that will continue to grow, that continue to buy back thoseshares. you're a bigger owner just with what you hold and that's more important than who has a trading position and who doesn't >> the street is out overwhelmingly backing the stock up, pete your favorite analyst reiterates overweight though she did cut the price target from 164 to 166, j.p. morgan reiterates and overweight piper sandler, 180, 175 respectively on the price target ubs, 175 is the price target there. is there anything to be concerned about for the longer term out of this quarter, pete, or is that just trying to find something out of nothing >> yeah. i think that's probably more likely, but i think that the reality is we do know that the supply chain is a bit of an issue and regardless of that, you take a look at what they
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actually put up, scott, and you hit on it and the reality is when you put up a record quarter for revenue and you are dealing with supply constraint, i think that's a major issue that's amazing that apple was still able to produce what they did and when you look down the line and you look at ipad and you look at some of the different category, they absolutely knocked it out and so when you look at services up 26%, absolutely extraordinary how do you get revenues to get up that percentage, as well? across the board they did extremely well despite the fact that they've got these supply constraints. so looking forward, that's probably what holds me back. why didn't we buy stock and add to our position, i was and thinking about it, but my one issue is look at the results today. we're looking at the stock that's essentially flat for the week and here we are at the end of the week after an up yesterday, down today right around 148 i think that's kind of what apple is right now
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i think it's kind of a wait and see issue that we're dealing with right now i do love the stock and if it dips significantly i would buy it, and it was up a couple of a percent and that's it. 3% or 4% at the most there will be opportunities to buy apple at a much more of a discount rate at some point, but it's not today >> i don't know. maybe today is a statement day that says it's not going to go lower. it's not going to give you that chance i don't know kerry, when you look at apple versus amazon you actually added to amazon today instead of adding to apple. why did you do that? >> well, i think there are two reasons. one is that if you look at the near-term and we know that the holiday season is coming up now soon in a week and amazon is making every commitment they can to ensure that there's going to be delivery to customers and not snags and supply chain problems
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and they talked about that on the call >> there's nothing they can do >> right >> supply chain issues are supply chain issues, right they have labor cost issues and they didn't mention steel. they have a whole host of issues which is why cramer says apple is much better than amazon in terms of where they are rate now and the headwinds that they each are currently facing >> i think what jim is saying is that apple is dominant in the phone space and they have a new phone out there that they will continue to see that steady growth, that comes with sales of iphones and services, but what amazon has is the advantage of being the largest in their vertical, also, and the holiday season that can compete with amazon for getting ships and dock spots and all of the minutia that goes into supplying to the customers
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no one can compete with amazon i think that's clear and that's what they're investing in right now and we think that given the underperformance of amazon since february, there's upside to the stock over the next six months where there isn't that same upside in the near-term for apple. so we're adding to amazon and we have a 4%+ with apple and we do like what we're seeing with the price of amazon and the cloud is also very much in their favor. >> then, pete, there is msft, the new biggest company by market cap on planet earth $2.5 trillion, just shy of that rounding up a little bit new high today and the stock currently up 1% and 329.52 was the high of the day. i repeated question i asked a couple of days ago when i think i had you call in or zoom in or skype in or whatever you did to
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come in. is this now the best faang to own right now? >> yes is the answer it's really easy, i think because when you look at it, there were no excuses. when you look at microsoft, no excuses and they performed in every single category about whether you want to look at gaming and cloud and whatever you want to look at and it absolutely hit a home run and they continue with all different areas and the growth rate even in the security solutions category that we rarely talk about, that was up 50% year over year and they absolutely hit a home run we didn't get a chance to talk about this on wednesday when i called in and looking for upside even on wednesday when we were running the numbers to the upside they were still buying calls expecting even more. going out to next week's 330 strike calls they were buying those and this
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week's expiring 320 calls and they only bought 32,000 of those so whoever they is had a really, really nice trade going. i continue to look at this maim and they're hitting on all cylinders and they are accelerating to the upside and when i look at microsoft versus an apple apple is just fine i'm not worried about apple and i have reasons why they're not constrained for a while and i don't expect to see a huge spike. microsoft, on the other hand, has room to run and i think it will continue to run to the upside and that's what the options will continue as well. >> what supply chain problems are you talking about? because we don't have to deal with that. >> exactly i wanted you to finish the sentence you're not making physical things that require things to be shifted from continent to
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continent and probably that lasts for the near-term future and what's weighing for the markets overall and what you're seeing in apple today is the supply chain shortages and it doesn't matter if it's smartphones or cars is feeling the effects. you have to ask yourself as an investor how long will it last the answer is not noble right now, but i have to tell you, this is something that will last two years and it will last over the next two to six months and the slightest whiff of supply chain bottlenecks easing and those stocks that are manufacturing things including apple. including apple, are going to start roaring, but for the next week or two, yeah. microsoft, google are not making significant things god bless them the s&p 500 hitting that for the first time ever. if i would have told you that apple and amazon are going to
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significantly mess their earnings report yet in the reaction to the earnings the s&p, and you probably would have said you're crazy well, that's what you got and it's just off of that level right now and trust me, a new record high for the s&p 500. on that note, let's bring in brian belski good day to have you, mr. belski welcome back the resiliency of the market, what do you have to say? >> resiliency is the word of the day and the word for 2021 and it will be consistency of earnings and consistency of fundamentals. we've been saying for several months now that the market is transitioning to more of an earnings-driven fundamentally based market and with that the return has become more volatile which we've seen, and remains consistent in terms of the upward pressure. again, we remain very, very
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comfortable with the 4800 target for year end and we will be publishing the year-end forecast for 2022 within the next month or so. we don't see a change in the overall attitude and the return structure of stocks quite frankly may look different in 2022, but i don't want to put the cart in front of the horse here >> so nothing matters really to the market seasonality is good. earnings are good enough what's the potential thing that knocks you off the horse >> a misstep from the fed and how they're communicating. if we want information right away in the society and right away in this business, scott with respect to how they're positioning the taper and when ultimately we'll raise rates, you've seen such a reactionary trading environment especially within tech which we've been fighting against in our work with respect to our published analysis and we've been trying to talk investors off the ledge from selling tech, but i think what's happened especially last night when you heard and
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listened to the conference calls and the supply chain blame game is in full effect which really sets up another underpromise, over deliver type of scenario, but bottom line is the way that apple and amazon in particular actua actually put up the numbers that they did are unbelievable. the portfolio that we've run for almost nine years consecutively for the 112 months and i don't see any reason to sell it and in fact, it's giving you an opportunity to be that active investor, scott, maintaining a core position of 4% and when it goes down you just add to it that's when i would play these games. >> this back doorway of saying, yeah, i've got apple and i like tech, but i don't love it because it's market weight in your portfolio why don't you have it as overweight you can't have it one way and not the other. >> great question. if you take tech we kind of look at tech and communication services the same
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way. remember, they broke up many of these communication services names out of technology, and i think there could be a potential positive for technology with respect to its market weight when visa, mastercard and pay pal, and if you take tech and communication services together it's 40% of your portfolio and to me it's really, reallygood and i love that number, 40% especially given that tech and communication services with the favorite sectors for the next three to five years. that's where the growth and the economy is, and technology is deflationary yeah i said it, deflationary, so from a secular basis, we'll continue to be very bullish longer term, but it really speaks to why you should be a stock picker and not buying etfs especially when it comes to technology. >> no, i know, but you finished it by saying, well, you love the financials, financials, financials and then especially when it comes to technology and
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buying etfs and financials is okay because you still love that group? >> well, no. actually, from an etf perspective and from a thematic perspective, scale has been our theme for years and it continues and oh, by the way, it's working and if you look at scalable assets within financials and our asset managers and broker-dealers money center banks. and the interest rate scenario will be low relative to history and it's harder for regional banks to make money and that's why we love the money center banks in the united states and for that matter the five canadian banks in canada because they act similar to j.p. morgan and bank of america. >> the other issue that was maybe going to be a headwind for the market was the biden agenda which looks to be watered from the, you know, quote, unquote, worst possible thing that people in the market would want that's a massive spending
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program which could be more inflationary than you already have and a more punitive, if you will, tax structure that could be more punitive than people thought was going to come to fruition now >> 100% and if you go back to look at what happened in 2020 and into 2021, everyone was worried about the blue wave hitting and we've had to come out once again during the timeframe after the election, first off and once the blue wave became an actuality and reinforced that politics have nothing to do with the absolute performance of the stock market. it can either enhance or detract, clearly with the agenda not pushing through as much as they thought, now you have a midterm election next year and we'll start talking more about that with respect to its impact and it's good that we're unable to do those things because we're a free market and free open society with the capital in the united states and growth and companies is what really matters and it reenforces that again and
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we have the best companies in the world and it will benefit from less regulation, less taxes and the like >> what happens if the fed doesn't make an error as you suggest, but rates still move higher doesn't that in and of itself compress the multiple of the market >> it's a great question look what happened with the tales of this year, scott. >> the first quarter you had with what the bond yield did and when you see the ten-year treasury everyone will be spooked by the bond market. they've got the power. they've got the money. i just think that we'll probably be a little bit lower for longer than anybody thinks and i go back to 2012-13 and i held ourselves accountable and we were calling for the fed to be aggressive then and they didn't do anything until 2014 and it will take longer than most people think so please be patient. >> pete najarian, do you have something for belski aren't you minnesota guys?
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>> oh, yeah. we're brothers w we're brothers and we both have places down in florida if you had to pick one sector and you're all over the map and you have financials and technology and all these different things is there one specific sector where you say, you know what this sector will absolutely stand out and this is a question that scott and the gang from cnbc asked all of us going into the second half of the year, so i'm asking you the same question >> you'll be surprised, but i think it's materials and you see what's happened in freeport with the chemical stocks and you're talking about a 3% sector in the market where if you are tracking a portfolio manager that's when you can make a lot of hay and this is a sector that underperformed and we'll continue to make battery-powered cars and that's the theme. so freeport mcmorran would be the click in terms of taking advantage of that and that will be the place over the next six months that people have been
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underinvested and we could see a nice pop >> brian, i'm going to let you run. you have a good weekend. good time to have you with the s&p hitting 4600 for the first time ever. thanks so much >> brian belski. i sort of jumped ahead, pete, because we did hit 4600 and another new record on the s&p was this facebook name change to meta as everybody knows now. you bought more facebook calls >> yeah. and i like what we're seeing here, scott, they're getting aggressive again looking to the upside for a while we weren't seeing that and it just completely fell off and the stock had a tumble down the 315 level and now it's starting to make a move to the upside, but they bought 15,000 of the next week's november calls and the 325 calls and that was pretty aggressive buying that actually makes me get very interested again that maybe this is a stock that can start moving again to the upside rather than having as much pressure on it as
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it has, and it made a nice move already this morning and it's starting to ease back and we'll have to see over the next couple of days. i don't think it's about the name change, though, scott i think it's about the direction in which zuckerberg is directing this company in this pivot that they're making right now from facebook into the metaverse itself >> everybody is excited about what the metaverse can be, but the way people are talking about this and they're still facebook. the core business is the core business let's not kid ourselves. no doubt and i know we're trying to think of -- and ten years from now or five years from now with the metaverse, but i mean -- let's not act like it's a different company today than it was yesterday. >> i completely agree with you i think it's the pivot to the direction that they want to move and i don't think it has anything to do with the name
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change whatsoever. you're exactly right, scott. regardless of what the name is people will still refer to it as facebook we still call alphabet google. we're used to certain names and we'll call it by certain names and it's the same company that it once was although the direction, i believe, is getting moved and the pivot point is starting now where he being zuckerberg is absolutely focused, dead focused on money and how much they want to spend and move themselves in that direction. so i think they're extremely committed to the the next move for facebook in terms of direction and verticals going forward. we'll take a break come back and talk about starbucks. it's selling off big time today after missing its revenue estimates and a bunch of price targets have been cut, as well we have ownership on the committee. we'll talk about allf at xt oth
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♪ ♪ ♪ welcome back i'm rahel solomon and here is our cnbc news update at this hour trump critic and republican representative adam kinzinger will not seek re-election. he is one of two republicans on the congressional panel investigating the january 6th insurrection on capitol hill
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he joins a small amount of critics bowing out regulators are asking transit agencies to conduct inspections in the wake of the washington, d.c., derailment the inspection of rail cars in washington are forcing sharply reduced service through november 15th louisiana's biggest health system cannot fire or discipline workers who refuse to get their covid shots. he said oxner health must wait until the legality of the mandate is decided they must show proof of vaccination and on the news tonight, vaccine deadlines in new york city and los angeles and the latest on challenges by workers refusing vaccination that's tonight at 7:00 eastern scott, you are now up-to-date. i'll send it back to you. >> appreciate that very much, thank you. the nasdaq hits a record high joining the s&p 500 which is now trading about 3.5 points above 4600 and hitting that milestone
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just a few moments ago, as well. a nice turnaround for stocks especially after apple and amazon weighed in and it's helped the overall market, too let's talk about starbucks because that is lower. coming off earnings and big revenue miss what now because you have steeple downgrading the stock to hold from buy and the stock target goes from 112 to 130 wells fargo cuts the target, cowan, web bush, barclays, oppenheimer, credit suisse cuts the target and what about lebenthal, lebenthal and lebenthal. >> thank you for giving me two brothers i didn't know i had >> would you prefer that >> farmer jim capital? >> huh >> farmer jim capital? i do like that, but i want to be direct here. i don't think you're supposed to step in and buy the stock here this was a very disappointing quarter and there's very little in the way of a catalyst to look for in the near-term i don't think it goes down from
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here, but i think this is very much going to be like disney over the past seven months and it will be in a consolidation phase. for me, personally this is a below average sized position in my portfolio and this may be something i'm trimming if you're asking why not today because i don't think the enterprise is worth 7% less today just because of one quarter's lousy earnings or one quarter's lousy guidance so i would wait for a recovery from an oversold condition, but you're not hearing me pound the table on this. >> for sure. i have you at aicm that's the new acronym for your firm that's all in capital management, so we're going to go with that. >> pete, do you see activity in starbucks? >> yeah. there's a little bit of activity, scott. when the stock was getting hammered it was trading at 104 and they were reaching out buying the november 107 calls. so about 4,000 of those trading. i will say this, not as much
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activity as you might expect on the day that the stock is punished 6%, 7%, 8% to the downside and usually we'll see more activity because they're more concerned about that down side or looking for an oversold and looking for an upside. we're just not seeing a whole lot other than what i'm seeing here which is november, looking for a turn, not a huge, sharp turn, but with the stock at 104. i'll tell you what i still wonder about the growth factors for the company right now given the fact that the backdrop and what's going on in china as well as here, labor shortage and all of the things that we all know and i'm not a fan of a lot of folks because i see the p-e level and it feels very, very stretched >> kerry, you're willing to give amazon the benefit of the doubt, if you will, when it comes to big investment that that company is making into its future, but not so much with starbucks which
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admits it's an investment year and you may not get the reward for another full calendar year plus why the willingness to give the benefit of the doubt in one place and not the other? >> i'm glad you asked me that question, scott, because i've got the answer prepared. it has to do with technology and infrastructure and many things than capital and in starbucks' case it is purely about people even though they're paying $17 or whatever the rate at starbucks at the top of their competitors. they have to pay more. that's the only thing they really talked about investing in on the call and amazon is investing, of course, many different areas including human capital and labor. so i think there's a big difference between the two and i understand why the market has differentiated >> energy, best performing sector of the month. big oil stocks reporting strong numbers today as well. we will get the trades and exxon, chevron and some of the
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others that are committee owned. we'll do it right after this break.
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>> let's talk some earnings.
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there's chevron and exxon. exxon strongest earnings since 2017, pete chevron, the highest profit in eight years. interesting, you dumped your exxon calls. >> i did as a matter of fact, i've actually trimmed up a lot on the energy front, scott. not for any negative reasons and it just slowed down in terms of the options themselves just aren't as much there as they were and they were absolutely dominating for many, many months going back about 10, 11 months and it completely dragged up, but i will say this. the chevron number was absolutely extraordinary and when you look at the cash flow of 80% and that's a monstrous number that they put up and they had an unbelievable quarter that you mentioned and exxon is really strong, but i pivoted a lot myself over toward the ev space. everything i'm seeing these days seems to be in the vehicles and whether it's tesla and it's not just tesla and neyo and quantum scape. they are day after day after
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day, neo, lucent and that's been an absolute rip roaring home run as it continues to run to the upside and has had nothing, but option activity in all of those names. it has dominated and it feels a lot like we felt with energy for a while. i don't know how long this will last, but i flipped out of a lot of different positions in the energy space and moved over to the ev space >> you didn't mention nicola, you are trading those options, too? >> i am. >> scott, every one of these names seems to hit on a daily basis and multiple times during the day, lucent being, by far, the most aggressive and all of these different various spots whether it's batteries themselves or the ev and the carmakers. it's everything within that space that's been very, very aggressively bought in terms of the options looking for upside >> yeah. man, that stock's down 41% year over year.
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shan, what's your view on energy pete realizes his exposure is too big and what's your current view >> we've been light, scott, and for a while and we used to use the integrateds both exxon and chevron and we've taken our bets in the mp space with valero because we feel like there's additional juice there and that probably persists a little bit longer, but i do think energy prices are going to start to stabilize here so if you are overweight like pete's been like other members of the committee have been i think it probably does make some sense to take profits here that you'll see this quarter. >> all in pital, scott, a couple of interesting positions. >> marathon petroleum, marathon oil. they're reporting next week along with conoco and bp >> listen, i hear what shannon just said. shannon knows i love and respect her. i disagree i don't think you're supposed to trim here. i will note that the market for energy stocks, traditional
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energy stocks, it seems really jittery. okay it seems like people are quick on the trigger to sell and you have great quarters from chevron, exxon and philips of 6 and all of them are off of the intra-day highs and here's the end of the day story you've got a huge supply/demand mismatch that will last well into next summer so i think you've got two more quarters coming of good share price performance and you've just got to buckle your seat belt if you're overweight like i am and get through the jitters >> all right we have more trades coming up, pete has unusual activity and we will do that right after the break. the s&p above 4600 for the first time ever, and it is still ldg ovth k lelhoinabe ateyev ♪ move your high-interest debt to a sofi personal loan.
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scott. they were buying the november 12th expiring 155 calls and 15,000 of those were bought. so looking for a pretty nice move in front of earnings and earnings are not until the 16th and waiting until the next couple of weeks and fairly inexpensive and looking for a nice, solid move in the short term and just a couple of weeks. this is the name, snap, that has been hammered and put out to the wood shed as everybody likes to talk about and this is a stock trading around 52.50 they're starting to see a little bit of activity and december 3rd, expiring and the 58 calls and a bare of 75 hun o00 of tho calls and they were selling the 70 strike calls against that just to get that price down a little bit and capping out the upside, but still very
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interesting to see finally a bit of activity there and a quick update, skechers this has been a stock that's been all over the map today and this is also a stock in the last week or two, we had this for unusual option activity and they were buying november 46 calls and november 49 calls. they came through today, scott, it spiked very nicely after earnings and the stock was trading over 50 and you have to keep an eye on anything that's going on and the stock was 50 earlier and now it's pulled back significantly and skechers with a nice performance, and that was a nice stock that made a really, really nice, sharp move into the earnings >> pete, i'm looking at one other stock this week that got absolutely smoked. >> and kerry firestone is buying more on the dip. i'll telyou ouitexl abt nt. >> yeah. >> wow ♪ ♪
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give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. >> all right, kerry. i mentioned the stock that you should buy more of and it got obliterated this week. it's twilio. why did you decide you've seen enough >> well, twilio is down just smashed yesterday after they reported earnings, the peak of the stock was around 450, 283 now. this is the company that was the leader in the communication platform whereby you get notifications for everything from airline trips to restaurants, hospital visits, your dentist, getting your
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hairstyled, whatever it is, it's twilio, uber, et cetera, is on their platform and it is that market it's the $100 billion addressable market and they missed guidance that the market expected and they took the stock down we think this is the opportunity to buy and that's how we bought twilio in the past every time it is down now 37%, it is going to be a fantastic grower over the next ten years we can point to where that growth is coming from. it just makes sense to add to the position that's what we've done in the past, and so that's what we're doing right now. >> you also added to booz allen and health equity. can you just be real quick on one of those, why you decided to do that because i want to jump on to something else when you are done >> yes, booz allen, it is a contractor for defense companies, and their book to bill is growing. they have a lot in reserve they didn't know it in the quarter but will over the next couple of years. >> i just noticed someone fla flagged these tweaks from bill
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ackman for me. i think it is interesting relative to what we told you about the s&p 500 at 4,600 for the first time ever, and both the s&p and nasdaq hitting new highs today. he says, and it is a bit of a threat, he says, i gave a presentation to the federal reserve bank of new york last week to share our views on inflation and the fed. bottom line, we think the fed should taper immediately and begin raising rates as soon as possible he also says, we are continuing to dance while the music is playing and it is time to turn down the music and settle down as we have previously disclosed we have put our money where our mouth is in hedging our exposure to an upward move in rates as we believe a rise in rate could impact our long-only portfolio farmer jim, you have been mr. all in you have been the most bullish person i think consistently on our show now you have somebody like mr. ackman say, okay, we are dancing because the music is playing, but turn it down because this is going to get out of hand if you let it play too long >> and kind of reminiscent of
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what dave tepper said earlier this week as well, which i would characterize -- and i think i heard it in what you said about bill ackman, that people are holding theranos and buying the market look, i'm not unaware of the risks, but when you are this late in a year where you are up almost 20% on the s&p 500, the last two years of the months tend to be gangbusters and i think that's what we will have if you see the bottleneck easing we will see it roar. we likely will continue to have a conversation, but not forever. as far as the fed tapering immediately, they're meeting, what, next week or two weeks from now they probably will announce the taper then i think it is as immediate as it can get. >> we had paul tudor jones within the last two weeks talking about his fears of inflation, the fed policy. he didn't use the word dangerous. he basically called it the worst policy of his lifetime in terms
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of the current fed policy, suggesting that they too should move on their rates as well. shannon, real quick from you should we be more hedged than perhaps we are as investors to an upward move in rates like bill ackman is talking about today? >> i think there's little proof that, you know, the sustainability of a rate increase can get us to something that's prohibitive from an economic perspective we are looking at not even 2% yet. i mean if we are talking about 2% derailing the global economy and the u.s. economy in particular, we have a lot of other problems i think we need to see something that's much higher than that, and i think that companies are prepared for those modestly higher rates i think that's where we need to be thinking about it >> we will taka ice quk break and come back and do "final trades" next
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c i want to show you the markets again. there's the s&p. pretty much at 4,600, a new record high. it did hit that level just a short time ago and it has been trading a few points above that milestone. perhaps helped by a comeback in apple as well today. that stock was down, it's basically at the highs of the day as well. 149.51 is the high of the session for apple. so we're just slightly below that level let's do final trades. kari, you first. >> waste connection. it is in the trash business, and they have pricing in their contracts plus with reopening continuing more volumes. >> okay. good stuff shannon. >> abbvie, strong earnings, biotech with great cash flows and good yield
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>> pete najarian >> i'mgoing withuranium and give you ccj, scott. >> the cco of all-in capital what do you have >> cvs reports last week it has 20 quarters of unblum issue unblemished beats on quarters. >> thank you for watching. "the exchange" starts right now. ♪ thank you very much, scott hi, everybody. i'm kelly evans. here is what is ahead this hour on "the exchange". trick or treat stocks reverse higher today even after apple and amazon failed to inspire investors. the nasdaq and the s&p 500, like scott was just pointing out, they're at fresh record highs even as earning season so far has been a mixed bag we will have the latest. plus, crypto banking the fdic consider how to allow traditional banks to hold cryptocurrencies on their balance sheets and for customers. former fdic chair sheila baird joins us to tell us what she


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