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tv   Fast Money Halftime Report  CNBC  April 6, 2022 12:00pm-1:00pm EDT

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>> amazon is famous for those six pagers at the corporate level. everything has to be not on a powerpoint presentation, but the six-pagers the nasdaq down about a third of a percent. we have banks kicking off next week and techs after that. we'll get to it all. >> welcome to "the halftime report" i'm scott wapner that brainard bombshell still reverberating and what if a rougher road is indeed ahead we'll debate that with the investment committee, jenny harington, sarat sethi, joe teranova, and that's for the first time since march the 24th.
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4490 keep a close eye on that and we are considerably below that level. meantime, all of the way on the right, the ten-year note yield 259 with the highest on the ten-year since march 12 of 2019. not this march 12th, 2019. all right, weiss, the brainard bombshell, is it a gamechanger for how we need to look at stocks >> scott, first i've got a bone to pick with all of the bulls who told me repeatedly that the rate hikes are already in the market they're priced in yet brainard comes out and says yesterday, hey, look, we're going to go to 50 we'll start paring back the balance sheet and that news that was supposedly in the market, i guess it wasn't because we're down 2% in the nasdaq with the s&p following and the dow following, et cetera it's not a game changer for me, but maybe it would be a game changer for them i don't know why it's search a foreign thought that bear markets could last more than a
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month or two, and i believe that's what we're in actually, it upped my cautiousness of the market because i think that most are not prepared for a tightening cycle and yes the fed could put us in recession and it's very likely an outcome according to a lot of strategists, but i keep focusing on this quarter and despite having companies that reported good earnings like a micron, very good earnings, they're short lived in terms of a celebratory trading going higher so micron is down 10% from wher it reported. so yes, it's cash and being cautious and i don't think it's worth selling long term positions where you have a heavy tax burden and it's not the time to put new positions on. >> you see the nasdaq. we can show it again yesterday was ugly and today it's getting uglier. you've got the first back-to-back -- you've got back-to-back declines in big
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ones and not the first one and the aart down 6% today and there's a 327-point decline for the nasdaq and it's not overstated brainard's super dove turning into what sounded like super hawk if you missed it it was brainard talking about qt and that spook said the market yesterday. cramer said the time to be more conservative is now. he says he's been paring back exposure for the club and maybe the most aggressive pareback in a decade lee cooperman was on with me in overtime yesterday and he is taking his long exposure down to 68%. remember, he was a fully invested bear. now he's a less fully invested bear let's listen to what cooperman to told me. >> i don't think we'll have a recession in 2022.
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i think we'll have a recession in 2023 and recessions are preceded by bear markets and you're seeing a lot of the market now with homebuilders and the banks and credit sensitive stocks are acting poorly i think it's a time for question >> right a lot of those cyclical areas, joe. not acting good. chips leading us down. housing is no good auto stocks have been hit. you weren't as cautious as you are now until just a few days ago. brainard had an impact on you. >> think i said on monday the growth was back on again. i said on monday there was further upside potential for the s&p. steve's right. the hawkishness from brainard was not priced into the market we are now pricing in something that we don't know is it going to be balance sheet tightening that is passive is it predictable? what's the amount going to be? am i going to get a target from the federal reserve?
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am i going to get timing we have an adversarial fellow reserve. we've had the adversarial federal reserve for the last couple of months and they are clearly intent on utilizing wealth destruction as a weapon to cool demand and to effect inflationary pressures that's real and that's present that's been with us now for the better part of 2022 and you know, i keep hearing well, the bulls or the bears guess what, scott? everyone, raise your hand if you're losing money this year? unless you are a pure commodities trader or you're an individual on twitter that is day trading and telling you how great you're doing, this is as challenged an environment as you are going to find whether you're an investor or trader. you're in the ring with mike tyson in 2022, and when you're in the ring with tyson you're just trying not to get knocked
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out. so caution has prevailed in the beginning of the year and caution is prevailing now. the new dynamic is something that wasn't priced into the market and that was without question, an adversarial fed that went after stocks initially and now they're going after real estate pricing and shelter inflation because that hasn't moderated. >> adversarial that's a good word that you use. some are going even stronger we'll talk to one money manager today who said the fed just declared war on the stock market, steve liesman, and if you look at the commentary and who it's coming from, you can understand why they think that and it's underscored with that bill dudley op ed today. did you see that, mr. liesman? if stocks don't fall, the fed needs to force them. quote, to be effective, the fed it would have to inflict more losses on bond and stock investors as this it has so far. investors should pay closer attention and financial conditions need to tighten
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if this doesn't happen on its own which is unlikely, the fed will have to shock markets -- the fed will have to shock markets to a chief the desired response as someone put it to me the fed declared war on the stock market don't fight the fed. it's cutting it both ways, right, steve >> you don't want to fight it on the way up, and you don't want to fight it on the way down. i think bill is sort of right here i don't think he's 100% right. i don't think there's an active war on the federal reserve i hate to use war metaphors and it will throw some things out there and there may be some collateral damage in the stock market i do think the fed wants the market to be down in the sense of tightening financial conditions through equity financing. in other words, the way the fed looks at things, first is the wealth effect which can tend to increase economic activity the other is the cost of financing through equity issuances and you've seen the ipo market come off. you've seen a lot of damage in some of the high-flying nasdaq
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stocks and overvalued -- highly valued stocks, as we say >> you can say it. it's a freudian slip it's a freudian slip we get it. we've got you. >> i do think at this point maybe the bad news is out. let me show you something, scott. let me show you the cnbc fed survey this was done a month ago and we have had results like this for three months running now it shows what the expectation is for the 35 to 40 respondents with qt or quantitative tightening 540 in 2022, 1.2 in 2024 now after brainard's comments, that 73 we may learn later today could be closer to 80 or 100 if you weren't paying attention it's like if the fed went from 0
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to 100 with brainard's speech. if you weren't paying attention you'd be going from 70 to 90 in one speech it's not quite as drafrtic a thing. i asked steve weiss how much of this is priced in. i've said between three fed surveys it will be between 75 and $80 billion. if they weren't paying attention to that then yesterday was a huge shock and obviously, the bond market and the stock market, i think we now know the fed's going to be aggressive on the balance sheet, 80 to 100 and it will be aggressive on rate hikes and maybe 200 basis point of tightening. i think that is out and i don't expect that much from here >> let's explain what we've got for caution. caution doesn't mean that you sell anything. he's not saying that nor are many that i speak to on a regular basis who are managing a lot of money
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they don't say sell everything, but you can't be all in as we've heard on this program. how can you be all in, jenny, in this kind of environment where the fed just told you what they did? it's like you've got fire and ice now fighting against you, pardon me, mike wilson for stealing your phrase there you have fire and ice. how can you be all in in that environment? >> let's take the profile of the person who is all in and who should be all in say you've got a million bucks and say you got that investment in the recent years, that means you say capital gain of 500,000. so if you're going to sell and back off, you will have a huge tax bill that is in for the dividend income and so you've got a million dollars and you've got an income stream that you
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totally depend on. you would cut off a big tax bell, to a try to be cute and avoid another 10%. we know recessions and bear markets are a part of the process. if you have that situation and i timeframe maybe longer than three, four, five, why would you get out now? if that's your profile it is absolutely fine to be all in because you're in it for the long run and this is where i think when you say you can't be all in, this is where you dis dissect and diverge on investor versus trader. if that's your path for what you're doing in higher investing then yeah, you can't be all in, but if you're really long term and dependent on income and have big capital gains and you're just in this for ten years, 20 years, 30 years then stay all in don't worry about this this is noise, and actually i was in an argument with my husband about the market being down 4.7% for the quarter. i was calling it a blip, and he was saying that's callous.
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so in the long term investing even down 9% that's a blip down 10%, that's a blip knowing that over the long term we trade upward >> we thank you for taking us into your house for the secrets of the harringtons, i think. >> sarat, what if 10% is conservative what if we need to go back to lower levels where it makes more sense because of what's coming from the fed and how the earnings picture will be impacted by all of that? >> i mean, you know, cooperman was talking about what kind of multiple he'd put on the market maybe it's 14 times and that's 10%. what if we need to go down further than that, sarat >> yeah, i mean, look.
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we tested 4200 jenny is right in terms of being an investment manager and adviser, you have to look at the client risk profile. if you're 30 years old and have a 401(k) you should be all in and if you're 70 years old and relying on your portfolio and today you're at 75% equities and you're had a huge run over the last two or three years you should be cutting back to your rich profile let's get back to where the markets will go. valuations will matter in this case and if coopermansays 18 times. where are you going to be in that space there are a lot of companies today and they've come down from 15 industrials have come down so a lot of the parts of this market have reflected that and the question is how much lower can some of these go and if momentum goes the other way, and you have cash coming out of the stock market, part of what the fed was doing was making the fixed income market attractive to those not in it.
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i rather get 4% lending than giving a dividend, and that's going to happen, too mark find his spot, but with the valuations raising rates and i think the market's sensing, hey, what's going to happen with these higher input cover thes and geopolitical issues going on >> liesman, normally the minute which is come out this afternoon i think at 2:00 are kind of like whatever i mean, we had a meeting and we had a press conference and backward looking do we really need to know everything that was discussed at the table? but today they may be more important than they have been in a long, long time and powell all, but told you to pay attention to the conversation about qt so are the stakes raised for what will drop in less than two hours? >> yeah. >> for sure, scott a funny thing happened at the fed where they decided to use the minutes to convey what they're doing at the balance
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sheet. if you remember, was there the december press conference where powell didn't say very much about the fed having talked about balance sheet reduction. well, when those minutes of the december meeting came out, we were shocked that there had been a fairly robust discussion about balance sheet reduction and the same thing, i believe, is going to happen today that they're going to give us a lot more detail than we had before, and i will say that it's going to be somewhere, i believe in the parameters that we've been talking about in the 80 to 100 billion range and one thing that brainard said yesterday is the fed will not hit the cap right away it's going to ramp up to the cap. brainard said there will be a fairly rapid ramp up cap, if they set the runoff cap at 80. they may get to that in just a few months whereas normally they
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do 20, 30, 40, 50 and they ramp up slowly so it will be pretty aggressive when i said the bad news is out. i just want to clarify i think the bad news of what the fed is going to do is out. i think we have to talk about the bad news and the effects of what the fed is doing. >> joe, this idea that you could have a major market moving event this afternoon less than two hours from now and is the fed less prepared about the commentary and i don't know generally how they are when it comes to that, but what if 100 billion is the number and what if they make it clear that they're all on the same page that it's going to be bigger than we thought, faster than we thought and faster than we've ever been used to. is the market prepared for that? >> i think what you're asking me
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here is to look at the technicals and have the further negative news from the fed this afternoon and what i would do is say what has shifted since last night? there has been a lot of deleveraging for players that have been positioning long in the derivative markets over the last couple of weeks we've seen that overnight. we've seen that throughout today. there is negative moment up in the market i would tell you that i would expect that the market would be heavy through the close unless there is something from the federal reserve that kind of resources that brainard bombshell from yesterday i don't think any of us can expect that. so i think from a technical perspective the best you'd hope for is the support that resides with the 50-day moving average down to 4420 for the s&p and a previous swing area at 4415, you'd hope that that holds by the close today at 4:00. >> it's funny, steve this notion that we've been
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hearing now is for many, many weeks. this idea that the fed is going to come to the rescue and it will pacify everybody and it will make you feel better. we expected it and didn't get it expected it again and didn't get it again why would we assume that we will get that today, weiss, and by asking you by whether we think that the market is prepared for a much more hawkish minutes than what we've been used to. i don't know if i'm really talking from a technical standpoint i'm just talking from the expectation standpoint and the yet that you brought up in the top of the mshlth. >> it's clear that the market wasn't expecting somebody like brainard, right? >> the picture of the doves on the federal reserve being as aggressive as she sound. what does it mean for today? >> so if you take a look at the last -- actually, we just passed the 13-year anniversary in terms
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of when the market bottomed after the financial crisis so for the last 13 years the fed has always come to the rescue. so it's, like pavlov's dog the market trades down 5% to 10% and investors hop in because the fed is coming to the rescue. well, the fed's going the other way and what steve said, if you think about what steve liesman said it's that the fed is using the market as a tightening tool so they're not going to come to the rescue and i've said and others have said that fed put doesn't exist anymore. >> not yet >> i think the bar's been set. >> maybe on some level it does again. >> i don't believe they will >> yeah. yeah, i think you need more than what is somewhat of an orderly sell-off in the indices, but keep in mind the stocks have not been an orderly sell-off they're down 40, 50, 60% on average. for someone to say, hey the
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market is down 10% and it can only go down 10%, that is not factual. >> of course in terms of what the market will do when the fed minutes come out, i think the bar has been set pretty high an brainard's comments yesterday which by the way, may not be disassociated with what the fed minutes will be i wouldn't be surprised if the market traded up and who knows in a day, going forward, i maintain still that the market is not prepared for what companies are going to say because everybody talks about how great the economy is so that's the next flash point >> let me do this. let me thank and say good-bye to you, steve liesman i want to get into more stocky stuff. yeah go ahead real quick >> one very quick risk that's out there today which i didn't mention, very quickly. the fed is supposed to be letting things run off naturally.
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in other words, it's not going to sell assets if that's in there, that's a bombshell. i don't expect it. it should be passing, if it ends up being active, that's a risk that the market was priced in because brainard didn't say passive. i think she meant it, but didn't say it >> i look forward to that. that's steve liesman you see the nasdaq today, guys, right? jenny, what am i supposed to do with technology? >> i only mentioned to you what the ark was doing and it wasn't looking good today it was taking on some water. what am i supposed to do with the techtrade if the rates are going to continue to go up and the it's been to continue. >> be super granular and say buy take and there is a big difference between snowflake and palo alto, a big difference between lemonade and i'm trying to think -- >> so i can buy --
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>> cisco systems. >> so i can buy palo alto today. >> you can buy palo alto, cisco. >> snowflake was down 7% last i checked, but i can buy palo alto today. i can feel safe today? >> look, there's going to be movement and the volatile they you're likely to experience buying palo alto today should be a fraction of what the high octane tech is going to experience, and i think we're seeing that in so many -- let me pull up my screen, and i think we're seeing that in so many areas where you can look and see the high octane tech, docusign, zoom, lemonade they're down 4%+ and the lower octane, the ciscos, the palo altos and the intels frankly, i will throw in, the metas and the apples i think you need to go back to the valuation, that at some point in 2020, stories died.
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prior to 2021 you account vest in stories you have to tech -- even if you look at the dividend part of the portfolio, ibm trades at a fraction of the market multiple. you can buy companies like that, but you need to be picky and you need to be careful. >> so sarat, jenny used the word octane which makes me think of the carmakers like gm and ford they're down 11% in the past week what do i do with the more cyclical areas of the market that have been getting beaten up and betten up badly whether it's the automakers and the homebuilders and the semis and the transports you know exactly where i'm leading. many of those stocks are in your portfolio. so what am i supposed to do? >> well, i think you look at valuation there and you look at gm and you say hey, what's
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really happening here. the earnings are there because they don't produce enough cars and it's a single digit multiple i still want to hold it because the consumer is still strong and you'll have more demand in the next two years i think the airlines are getting hit, as well and you know i own delta there and that's another re-opening story they're getting hit with higher fuel cost, valuation and single-digit multiple. when i look at valuation and the momentum is against these stocks i'm holding them because they've run and they've come back, but i think as we get through this period of the next few weeks and the fed kind of raises its rates and the economy kind of stabilizes, i want to be in the cheaper value cyclicals because i think they will outperform, and then i also have my health care stocks that are defensive in here that are kind of holding their own in the energy stocks it's the balanced portfolio because you never know what's going to happen to the parts of the market and especially the defensive stocks and the
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cyclical stocks that are getting hurt the cyclical semiconductors are getting hurt qualcomm is down to 11 times, and how much is that going to go down >> let's take a quick break. one area of the beaten-down market is getting a second call in two days. we'll tell you what it is and we'll debate it in the call of the day. there's your picture and the dow is down 259. naaqowsd dn 2 2/3% and that's a hundred points for the tech-heavy nasdaq. we're back after this. (ted) it seemed like the responsible thing to do. (jane) and then, just yesterday, my sister told me about visible. (sister) yeah, get unlimited data for as low as $25 a month. no family needed. (vo) family plan savings without the family. get visible. single-line wireless with unlimited data for as low as $25 a month.
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i'm christina partsinevelos and here is your news at this hour the officer who fatally shot a 22-year-old black man during an early morning no-knock raid will not be prosecuted. the death of amir locke was apparently sleeping on the couch and reached for a gun when police burst in as part of the homicide investigation that didn't involve him locke was a victim who should still be alive today, but they don't have enough admissible evidence to prove the officer's action was not justified in the wake of the death the city's mayor has banned the use
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of no-knock warrants. new u.s. sanctions will target vladimir putin's daughter as well as one of his closest allies they're just some of the people and entities that will be covered by u.s. actions including investments in russia due to be formally announced by president biden later this hour. the government will spend 20 billion on transit in its upcoming fiscal year as part of the infrastructure law passed by congress and attorneys general from six states are telling the nfl they have grave concerns about allegations women and minorities are being harassed in the workplace. they're threatening an investigation if the league doesn't take action. scott, back over to you. >> appreciate that thank you. let's go to the wall and check the markets. i mentioned that the nasdaq was at sessions lows and that's where it sits and 2.75% decline for the nasdaq right now 13,820 we've been watching the s&p 500 closely today, too, from a
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technical standpoint a pain standpoint, obviously, too. technically speaking it's below the 200-day moving average for the first time in a few weeks and that's been watched by technicians and 30 points or so below that level so keep your eyes peeled there. the dow jones industrials 34,379 and that's a loss of about 263 and then yields have been moving up lately, as well that's the price is down, yield is up and 259 is the yield on the ten-year note. let's talk about that call now the second in two days on the thintechs and the payment names. this is all from stephens, by the way, is block. the former square. initiated overweight fin serves equal weight and 170. that's 34% upside from here. joe t., you sold it in the joe t. in october along with paypal, right? >> sold both of them sold paypal at 230 and they
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began to, and there as well there was deterioration. i'm sorry. i disagree with this call and i don't see anything that would give me an indication that will begin to reverse itself and i'm not sure what the fundamental catalyst ultimately is for block or for paypal other than just looking at the chart and seeing it looking pretty ugly towards the bottom >> paypal, they initiate, as i said at equal weight and the target is 135. that's 20% upside from here. you want to make the bullish case to joe, sarat >> you own paypal. >> i do. i mean, firstly, joe, good call selling it at 230. the stocks have come down quite a bit. paypal, there are two catalysts coming forward and they're three-quarters of missing and here are a couple of things to watch for and it was comps and
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pull forward demand because of covid and in the last few quarters people were doing online ordering and now they're going out and once we passed that, that will show some acceleration of growth and paypal admitted themselves, they spent a lot of money on growth and they went after a customer base that didn't come to any from y fruition and management knows this is the third quarter in a row. three strikes and one more that there will be changes there and he's got his work cut out for him and with these valuations, paypal is still there and there's an imminent player and it's a show-me story completely at this point. >> are you adding in the ugliness >> yeah. if i have cash and new client, it's definitely something i'm adding to. it's a core position yeah >> okay. steve weiss, it's no position for you. why? >> well, you know, look, paypal -- jenny had a great call on this, as well she kept saying maybe i'll get
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to 150 and it got to 140 and that was when the stock was a lot higher my point is the stocks can still go lower i don't view them as cheap and i view that the landscape is competive and it's getting more competitive still if you look at the company pipeline i just don't see any rush. i'd rather miss the first 10% or 20% up in some of these names than catch a falling knife so i'm not anxious to go in there at all >> jenny, i need it to be quick. fiserv, you prefer that over these? >> right it goes back to valuation. so i think this is an exact highlight of what i mentioned before where it's not about the stories and it's about the valuation. for us, we own western union and pfizer both of those are trading at valuations and it's fascinating to see in the face of this positive upgrade you have the two that were upgraded, paypal and square down 8% and 5%. you have the two that are rational valuations and fiserv are flat on the day. it's about the valuation and the
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stories are less important right now. >> it's been a rough road for shares of citi and a new 52-week low today. lee cooperman telling me on overtime why he is hanging onto it which is why we'll debate it ahead of earnings next week. all of april cnbc is celebrating financial month and here is why it's important to invest in latinos. u.s. latinos are a massive undertapped market one in five americans are latinos. 63 million and growing did you know that twefrl% of latino households are unbanked and another 22% are underbanked. this financial literacy month. let's remember, investing in latinos is smart business. ♪ ♪
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citigroup shares fall at a
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new 52-week low today. he owns it, too. he's frustrated. >> i still own it. it's been a mistake, and i can't bring myself to sell it because the discount above value and i hoped for an improving trend in profitability, but you know, it's cheap and it's been a value trap and i've been wrong it's not the first mistake i make, but i still love it. >> misery has company, doesn't it, sarat? >> oh, yeah. >> completely. words out of my mouth. value trap, oh, god. every time you get into citi you have a new ceo and you'll do something different and now it's emerging markets and it's the exposure to russia and an exposure to other countries. so i will tell you that after earnings season i am going to look to move this into the other stock and whether i add to financial and i'll wait to see
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how they perform there and to me it's a source of funds >> but you'll wait until after they report? >> yeah because then i want to swap it into something that maybe is a better opportunity and maybe a company that's a fallen angel and missed a quarter that i would like to add to >> quickly to you, weiss because goldman sachs today hits a 52-week low. you own that. >> i do, and i'm staying with it, you know i expect it to go lower and i've got a nice gain and i don't want to pay taxes on it so i'm staying with it and maybe to my disadvantage because i typically don't manage stocks based upon the tax effectis and think the fundamentals will deteriorate and stocks will go lower and the fundamentals will deteriorate as they will for all financials and i also think there will be a recovery and still a phenomenal franchise as is b of a. citi, i also went in there and got out after losing some money
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on a short term trade. it's tough to turn around a bank anyway and it's tougher than a tough environment so that's why i'm not tempted to go into that one. >> i wonder, jenny, you don't own any of the large cap banks and the money centers and the ones that we're talking about right now, the investment banks either, but you do own a regional bank. why do you think a regional bank in this environment as steve said is going to be more immune to the issues than the big ones? >> i think you can be strategic with the regional banks because they're different and they're much more transparent and much easier to understand so i can pick up the phone and call umpqua which is one of our core holdings and say walk me through how these interest rate values impact you and how they are right for your business and they're on the phone with them and it's just not that complicated a business and they don't have investment banking and they don't have international pinnacles. it's just really straightforward. the flip side of umpqua is my
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new york community back where they have negative impact from the rising rate, but once they close their merger with flagstar banc, then that equation flips but you can do the math. i got really burnt and it was because i came out of that realizing there was no way for me to truly understand the nuances of the business and all of the off-balance sheet stuff and however much you read the annual reports you'll never really understand them they're easy to find in an environment and they're too risky. >> burnt in '08 and still scarred in '22 that's the moral of that story >> joe, bank of america and morgan stanley. >> baggage. >> i've been advocating for the financials and i am overweight the financials and given the recent performance in particular for money center banks, you have to ask yourself what is wrong from your perspective and analysis, and i think the one thing that money center banks
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might be pricing in and is not being talked about is credit losses these financials should be going higher with rates going higher and there's a concern. >> and rates higher, credit issues and economy slowing and worries about recession down the road more headwinds than tailwinds. >> stay on credit losses, though that's something that has not been priced into money center banks, scott no one has suggested that. there's management on earnings calls and has not talked about it either. >> let's talk airlines when we come back and they're lower with the rest of the market and they have been seeing a comeback lately we'll give you the trades next and a reminder, you can get in on the cnbc investing club with jim cramer his monthly meeting is tomorrow. what better time to do it than today especially given his commentary this morning on "squawk on the street" about
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lowering exposure. you've got to hear what jim has to say the club o. code, you know about that, to point your phone on that, bottom left we're back on the half right after this your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit
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all right. take a look at the airlines today. there you go, jetblue. we're showing you that after that offer for spirit, frontier is down 7 1/3% spirit and jenny, you own that >> we bought it last fall. we know we're early and we know we're going to be patient and so when i read the raymond james after the spirit acquisition, i look at that and think we have downgrades we strongly believe in the u.s. aircraft market and we will have airbus and 156 on order and it will expand their landing spots in new york and florida and add 10,000 employees and it is created in short order and maybe adding 10% on earnings and on balance it's good and yes, it will increase the regulatory headache and it doesn't expand
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the footprint and it's a terrific, terrific thing for their business this makes jetblue a stronger business in three, four, five, ten years and just one thing, it reminds me of the starbucks news yesterday where when these companies come out and say hey, we'll take our cash and invest in the business and it's good long term and the market is punishing it and that is where as we as humans can be patient and do the work and find opportunities. >> this is where if we loved it at 14, we sure as heck better love it at four and change >> delta and united. >> yeah. i agree with jenny i think the one thing to go back to jetblue, the cautions is will the government allow the consolidation because that's what delta -- >> that is a good question >> right >> so given kind of where we are and, look, it's better for the whole airline industry and i'm not sure if it is. delta, reopening play and delta
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is much more focused on raising revenue margins increasing and when the ceo talked a week ago he said listen, we can't meet the demand and i like under the blue chip and united is a global player and i think that's why you own it. i'm not sure i want to own this for the longer term and just because we have a few missteps and one of those i'll put on the source and i would add to delta in these positions >> coming up, the committee ready to answer your questions and, mail us we'll be right back.
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(typing) (toddler laughs) ♪♪ (train whizzes by) ♪♪ (toddler babbling) ♪♪ (buzzing sound) ♪♪ (dog barks) ♪♪ (wine glasses clink) ♪♪ (typing) ♪♪ (toddler babbling) (typing) ♪♪ ♪♪
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let's answer a question now. i would like to get the panel's thoughts particularly steve weiss on freight rates dropping recently the stocks have been under pressure >> i think he's being nice i thought this guy, byron, was asking about fedex we wasn't that happy it's been dropping like a stone, weiss >> me neither. as a matter of fact, i sold gps yesterday, that and facebook to trades that didn't see all the profits evaporate, but a good chunk of them if you look at the baltic dry index measuring shipping rates, it closely correlates to freight in the u.s., rails, the freight carriers like ups and fedex. as that's gone down, frankly, i should pay more attention to it, because it's been in a steady drop except for a spike earlier
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this year. that's just a harbinger of things to come that's why fedex has been down in addition to the economy so i'm not going back in here. i think i'll be able to get it back at around 200 or lower if i want to trade at that point, but it's a trade that could have lost a lot on just made a little to pay the commissions in a trade-free environment >> so xpo is down a lot today too and recently, it's down 5% or there abouts today. weiss, you own that. talked about it a lot. jenna, you own that. sarat, you own that too. i mentioned sarat when i was mentioning cyclical areas of the market here's another example of it with xpo, 32% off the year high. >> it is and at this point gxo, they're spinning off another piece of their business it's a cyclical trade, and this is the one that's direct and
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center when the fed is raising rates and people are focussed on are we going into a recession? the first thing they do is sell these stocks i like this. this company is going to be investment grade they're growing earnings, cash flow i would be patient and adding more at these levels i think the stock is really cheap and ovsoerld >> okay. we'll take a quick break and come back with final trades. doug? [children laughing] sorry about that.'s uhh... you alright? [loud exhale] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. [ding] get e*trade and start trading today. ♪ ♪ ♪ ♪
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tune in today "overtime" 4:00 p.m tom has been all bulled up is he still? now he has a new note out, and we will discuss it this afternoon at 4:00 in overtime. josh brown is joining.
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quadratics nancy davis is joining as well. i'll look to see you in a few years. the conversation with sarat continues this afternoon at 1:15 for more in depth strategy final trades jenny. >> continuing my theme of hiding out for the year, axa, a french insurance company has a 6.2% dividend yield >> joe t >> long prologis, pld, staying long the conversation you had before about freight that it creates to rising ib venn torys has to be stored somewhere that's the logistics that prologis provides. >> don't like the delivers like old dominion, but the deliverers >> correct >> this may surprise but you
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cash >> and sarat >> comcast multiples down to 11 times earnings i expect a strong quarter with good cash flow from the cable subs i'll see you in ot the exchange is now. welcome to another ugly session in the day the nasdaq is down 5% in two days the s&p is below a key trading level and the dow transports are down almost 20% from the highs late last year so what's the play book now? we'll ask. all of this as we await the fed's minutes from their last meeting just an hour away. the markets are bracing for a very aggressive fed. what are their plans for the balance sheet and for rate hikes? we'll try to get some more


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