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tv   Fast Money Halftime Report  CNBC  May 24, 2022 12:00pm-1:00pm EDT

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even record highs. >> yes but when you talk 90% down from anything, ouch >> absolutely. it is amazing that wall graphic is something we could probably not have envisioned discussing three months ago but a lot happened as we have gone quarter to quarter. let's get to the judge carl, thanks so much welcome to the halftime report scott wapner gone in a snap stock plunging as you know by now. does it mean long awaited rally is doomed? we will discuss and debate with the investment committee joining me, stephanie link, pete najarian, josh brown, check the markets as we always do. s&p down one and two-thirds
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percent. see if we can hold that 3900 level. nasdaq is getting hit hard today as you might imagine, given what snap had to say, the fact that stock is down 40%. 273. yield on the ten year. i go back to what mike santoli told me in overtime in his last word about déjà vu. last time we had a bear bounce and it evaporated before you could enjoy it looks like we're doing that again. >> this has been an ongoing feature of 2022. it is relentless seems to happen every week we continue to say how many times are you going to pump quarters into the same slot machine before you figure out it ain't going to pay you how many times you run at the football and have lucy pull it at the last moment until you realize i am not being rewarded for this type of behavior any more the way that i was for ten years. it's tough
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tough for people to get it into their head the old play book ain't going to work, but that's where we are one of the most interesting things we have seen is complete and utter uselessness of sentiment data i think it doesn't mean it will always be useless, but there's an old trope you hear investors and traders say, when we get extremely bearish in sentiment, buying opportunities right around the corner, or it is only useful in extremes, right now it is extreme we had extremely negative sentiment data for not days or weeks, months, quarters at this point. extreme, extreme, extreme, extreme. why? because sentiment is not just related to the stock market, it is related to the economic environment in which the investor class is forced to operate. bonds are trading like biotech, not yielding enough for people to feel good stocks are a mine field. every day, look to the left or
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right, someone's arms are flying through the air, there's almost nowhere to hide. that's the sentiment and it doesn't have to mean the stock market bottom. bad sentiment doesn't have to get worse but can remain bad i think a lot of things that used to work, buying extremes in negative sentiment or buying extremes in oversold, they just aren't producing the same result and the new play book for investors can be boiled down to one thing, lower your return expectations improve the amount you are saving and lower what you think stock will give you in the near term because they're not giving you anything now to hang your hat on >> if anything, they're giving you a lot to hang your head in stead of hang your hat on, right, steph what was walmart was then target is now snap. who knows who is going to be next impact on the market continues to be dramatic when any company like that delivers the rapid deterioration in the
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picture, whether it is brian cornell talking about rapid deterioration in his ability to, you know, deal with inflation that has dramatically impacted that business, or when evan spiegel of snap a month ago not even a month when they report earnings, talking revenue to grow between 20 to 25% year over year now it is 15% or less. that's pretty amazing. >> oh. absolutely this is really hard. we take one step forward like yesterday and two steps back today. and that's been the market all year long. there are a lot of cross currents going on. and there's more and more recession talk which i think is premature. we learned a lot about what happened in april in this economy. we had a change in consumer behavior they were not buying as many goods. they were doing more in terms of services, see if that lasts, and inflation and interest rates
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took a toll on them. that's on the consumer side. none of that is that surprising, but the speed of which it happened was staggering. walmart and target are great, great operators. for them to be caught off guard like that was amazing. but if you contrast to what jamie dimon had to say yesterday or brian moynihan, they talked about an economy that's actually quite strong i know we don't have great visibility, but that's the reason why, wait, that's the reason the markets are down 20%. and if you listen to brian talk about the consumer, he talks about the consumer a lot and he would know, right he is a huge consumer business talks about the stocks we talk about. 2.7 trillion in excess savings, debt to service levels best in 50 years we know about jobs and wages and also by the way, the overall economic data other than housing today which was a surprise to the down side, the numbers have not been that bad.
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they're not recession like not with pmi north of 50 but people are talking about are we in recession right now. there's no way we are in a recession now. and interest rates have come down that's a good thing. >> they've come down because there's so much worry about a recession. manufacturing missed, pmi missed, richmond miss, new home sales miss, new home sales month over month miss. >> stephanie, does history of the banking sector give you any confidence that ceos on wall street are going to be early to call it a recession or does it say the opposite which is they seem to be blindsided and this time probably won't be very different. >> i don't think that's true i think jamie dimon, brian moynihan learned a lot from the last crisis. they have been risk mitigating the last decade.
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fine, if you want to paint glass half empty picture, go for it. i am trying to stay calm because the market is really all over the place, i am trying to think as long term investor where there are opportunities. if i see recession on the horizon i will act on it, but i am not seeing it right now >> so one of the points is, rob, that it is not like jamie dimon yesterday said the sun is out and everything is great. in fact, he said far from that it just happens to be people are looking to hang onto any bit of positivity brian moynihan has been positive for the duration about the consumer he has been right and has data to back it up. however, we know credit card balances are going way up. people are buying a lot on credit, people spend a lot on travel at some point it catches up to everything else. i mentioned to you all of the data points today that were amiss. you couple that with target and
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walmart and snap as i said how do you see the environment today? steph is not ready to put the nail in the coffin on the economy. are you? >> not on the economy. but we're in a downturn and sadly it is a downturn caused by fed monetary tightening in response to things going on environmentally related to inflation, the war and shutdowns in china and the critical thing for the market now is when the fed pivots we're in an environment where things getting worse are actually going to have a great setup for when the fed is able to do that i think we're all surprised at the pace of deceleration we're seeing so we know the fed is going to tighten the next two meetings, we know we get 50 basis points in june and in july, and then i think it sets up from the timing standpoint for an august,
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september which could be reasonably good if the fed does pivot. i will tell you -- >> why do you think they're going to pivot what gives you any reason to believe they're going to pivot i am just curious. i keep hearing it from people. i wonder what backs that up? >> what i would tell you is the pace of change that we're seeing in deceleration. look at snap they reported earnings on april 21st that is only a month ago look how quickly things de decelerated. in addition, we're seeing a lot of things -- >> maybe did a bad job with guidance people are taking this, the environmentdeteriorated in the last three weeks, maybe they didn't do a good job when it came to giving guidance, i don't know. >> or things got worse rather quickly. when you look at why the fed has
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to maintain their stance, it is two reasons. inflation expectations and wage pressure and the key is labor could be weakening faster than expected as companies realize they overhired. in addition, they talked about pausing right hikes in september, necessary ter talking about reassessing the path come september. bullard, known as one of the biggest hawks, talking rate hikes. but you're seeing a softening of rhetoric we're in a down trend. we think most rallies are bear market rallies our play book has been when the fed is the storm, you have to run the ball we are staying in high quality when the fed is supportive, you want to pass the ball. we want to give our selves the option of staying invested but in the right way so when the
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time comes, we can participate >> thinking the rhetoric only calmed down because the market has gotten the message already the fed has beaten it over our heads at this point. we know what's coming. the market has already done part of the fed job for it. so they don't need to keep doing it theoretically pete, i see somebody who is cautious i think is fair to say. you trimmed at least 20 calls since yesterday? >> yeah. just looking at the markets we've got, scott, talked about this a couple times since i bought goldman, sachs right before earnings, around earnings time, and outside of that, that's the only stock buy i made this year. i think a lot of the time, the producers and other people said god, are you not finding anything and the answer is no, given backdrop of everything that everybody got done talking about, whether inflation or the job inflation, whatever you want to point to, ukraine, china, whatever it is, there's so much
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going on, scott, that i just have cautiousness about how i intend to move as you and i talked in the last month or so, i've definitely increased what i have on the put side of things i trimmed some of that as well everything is about discipline for me discipline with options. most options i sold turned out in the energy space, i am willing to jump back into any of the names, but some names were hitting 52 week highs and options were performing. you have to stick with discipline exactly what we're trying to do. look at option positions, i am half of where i was a week ago stock positions, the only change was goldman, sachs a n it held in what i wanted it to do. i intend to hold this unless something dramatically changes i will continue to sell high implied volatility options against that and other stocks i am long for as long as it takes or gives me opportunity to continue to do that, that's the
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game plan i have for stocks. there are a couple of stocks i will give you a little hint, there are stocks out there that are on my radar looking at closely by the end of the show or end of the day or maybe the end of the week i certainly think i will be positioned in buying some of those until then, right now, i only bought one >> didn't you used to own snap i can't remember >> i never owned snap the stock, had many times with options in snap yes. that name, take a look this is one of the names, scott, it is a name with options for me because it is one of those that falls into that category of all right, when you start to talk price to sales, three and four digit multiples, no multiple, that's where snap tends to find itself and because of that, it is something i am willing to trade it, but i don't see the fundamental side of owning the stock. there's a lot of names like that >> i'm sorry to interrupt. is that one you think about
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buying fresh calls >> absolutely not. today, we had a giant buyer of puts in snap tells me that people think not only is the stock in trouble, but may be in bigger trouble than people are looking at they were buying 14 puts that expire friday. they bought well over 10,000 of those. i would have participated but it started to move. tok was trading over 14, dropped to 13.5 almost immediately i have to stick with discipline there. i am not chasing options, especially options that are expiring by end of the week. i don't want to chase those options at this point in time. there are so many opportunities out there, but that's not one of the stocks on my list. absolutely not >> are you worried, pete, about facebook, what you own that stock is down 8.5% on this news if not, i heard you say no why? >> well, because of this when you look at snap, the problems with snap are snap generally related. >> they are? >> you can try to read through,
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well, you can read through, say this is about social media, right? who is the most dominant out there. absolutely meta, facebook, whatever you want to call them yes, the stock has gotten hammered i continue to look steph talked about this name as well when you look at the fundamentals of facebook or meta and fundamentals of snap, they're not comparable not even in the same ballpark of comparable you put the biggest dog on the street against some little dog barking against it i am not worried about the little dog meta has gone down in sentiment but also a name that can be back to 200 in a heartbeat. i am not concerned about that name now. >> steph, if the digital ad market is impacting snap and soon to impact others, you have to believe it will impact meta which you have been buying more of as recently as this week if i recall correctly >> yeah, i have been adding slowly certainly because i believe in a long term story
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advertising is going to be a challenge. that's the reason the stock is down 47% year to date. a lot of news has already reflected. trades 13 times earnings snap 52 times earnings that's not defensible in my mind 13 times earnings. 48 billion in cash they are trying to fix reels i think that's a second half 2022 story in the quarter, 20% of user time was on instagram and they have daily active users, monthly active users 2 to 3 million. daily users increased 31 million last quarter from the prior quarter and the prior quarter had negative 1 million remember they didn't grow users sequentially they're fixing things. they have more staying power and size and scale, yeah, i will continue to add. >> next earnings reports will be
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unbelievable to watch. i can't wait for earnings season to see what happens and what they say as we all try to figure out what in the world is happening, how it can happen theoretically so quickly. on that note, bring in steve liesman. we're trying to get our arms around what's going on from a business standpoint relative to consumer standpoint, one seems to see deterioration somewhat rapidly, the other one seems reasonably strong. reasonably >> so i think it might be worthwhile for purposes of the fascinating conversation you had to ask yourself what you might have expected to be happening about now. go back and look at the two year back in october of last year where it was 0.26% before powell shifted, you worked in the 2.46,
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2.50, 225 basis points of tightening to the economy. you would think you expect to start hearing some sounds of softening in the economy, some warnings from companies. i don't think that if you were sitting there expecting everything to go along hunky dory after 200 basis points of tightening, i am not sure you were paying attention. what i would do is ask myself am i hearing worse things than i might have expected realistically or hearing pretty much what i expected >> worse, worse. how can it not be worse? >> why >> did you expect what target had to say about the degree to which costs are going up, freight and other things, how margins are being so dramatically hurt by that. did you really expect three weeks ago that snap could say they expect revenue to grow between 20 and 25% and now it
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might barely with 15 or less >> did you expect target and walmart to pass along every cost increase they had, did you expect them to be uneffected by the supply chain disruptions did you expect stocks to keep going up to the moon amid this particular environment that we're in here? >> no, of course not. >> okay. so -- >> that doesn't mean that the picture couldn't have gotten muddier quicker than people thought and it seems like we're kind of there. >> you know, i do think we are there and i think it is time now, we might have expected, these companies begin to report some impacts of all this i was surprised, scott, maybe this was a bit of the thing we went through, that companies got through the recent quarters in quite as good shape as they were, didn't report margins compressing, were able to pass it along i think we reached a logical point companies can't pass it
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along so well. the other thing to be careful about here is what the goods folks are saying versus what service folks are saying what might have happened, you had companies like investors seem to think that the pandemic economics were going on forever, which they were not ever going to that the pelotons would keep selling bikes like nobody was going to leave their home, which they haven't done. i think goods folks may have ordered to that extent what you may have is some overordering, excess inventory out there that they have to work off as consumers shift to essentially more service sector economy which we were beforehand i'm not hearing the travel guys say they have problems, i hear the goods folks say they have problems now >> but we had this debate as to whether if you're hanging your hat on the consumer and all your evidence is in the travel industry, duh.
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you're looking in the wrong place because the money will be spent there and probably already in large part has through advanced bookings. but then at some point it runs its course on the other side of a pandemic, people stuck in houses, what do you think they spend money on. i keep hearing the consumer is so strong, can't get a seat on an airline, can't get a hotel room, if you do, you pay premium for a seat or bed in either scenario neither of those are representative, steve, of the real strength, the underlying strength of the consumer. >> why would you say that, scott? why do you draw from walmart and earnings deep truths while they represent 30% of the economy but not from the travel and service sector which represents 70% of consumer spending. i say there's a deeper truth there. >> i don't see target and walmart, whatever they said had
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nothing to do with strength of the consumer brian cornell was clear about that that had nothing to do with it i'm just suggesting what you think you're looking at today and suggesting see, the consumer is so strong, doesn't necessarily last into the fall once that money is gone on services you suggest say is strong they're good now the question is will they deteriorate as fast as business conditions appear to be on the other side of the ledger. >> first of all, i'm not jumping off a building because snap missed earnings. i'm not doing it more in line with stephanie on that, you know i would follow meta or google orio orion i don't know >> hold your thought let me get in a break. you stay there we have a lot of other stuff to
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get to as well more moves from the committee we need to tell you about and reminder, 6:00 eastern time, trading tech hosted by jon fortt. back in two minutes. don't go anywhere. technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it!
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names like facebook, google. a lot of social names rolling on the snap shocker if you want to call it that you were saying to steve, josh, what >> i agree that it is not worth obsessing over snap coming out and saying they're not going to make earnings, but that ignores the fact that as we speak amazon which is the u.s. consumer at large frankly as relevant as any other company you can think of, forget about snap. amazon is talking about subleasing 10 million square feet of excess warehouse space, at a level we haven't seen a trade since april of 2020. it round tripped the entirety of the gain it saw from the pandemic and the aftermath of that that's one name. google at a two year low, meta at two and a half year low it is not just snap. these are the companies that were supposed to have growth regardless, pandemic or not.
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turns out fed slamming on the brakes, hitting the stock market, we have seen $8 trillion of household wealth vanish u.s. households, 33% of net worth in stocks. primarily concentrated in the middle class and up. when you do that, you see new home sales fall off a cliff, existing home sales are next watch for that next month. when you do that, you can't expect a v shaped recovery, should be able to look at this and say in march of 2021 when inflation went above the feds' quote, unquote target of 2% for the first time, maybe that should have been when we start talking about preparing for the end of extraordinary accommodation. that's a year and two months ago. all this catch up, slamming on the brakes, i understand why it has to happen. it is not the preferable way to have dealt with what pretty much anyone could have foreseen with
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the amount of stimulus coming in both from biden's stimulus plan as well as the continuous buying of mortgage bonds and treasury bonds. months and months after it became apparent that the labor market was just fine that's where i think we are. i don't think we can reverse it on a dime because it wasn't caused overnight it is something building up a long time. >> steve >> well, i just want to point out a chart which steven stanley put together from federal reserve data, looks at household liquidity. there are $4 trillion forward-looking statement around on household balance sheets, money markets and bank accounts, not the stock market funds and josh understated losses, he left out a trillion dollars of losses in crypto there's that line which steven stanley points out, households are sitting on a pile of cash, year end 2021, the last data
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point. some of that worked off. stephanie used the phrase of 2.7 trillion maybe lower than that. still a substantial sum of money. my point to josh would be yes, there are losses i think the amazon point makes my point amazon did wonderful and well during the pandemic because it was selling a ton of goods from people sitting at home that kind of easing off, coming off where it was before makes sense to me and may have been in fact overdone. i think amazon holds onto market share, i think we changed some of our spending patterns, not all of them. >> let me jump in, steve, before i let you go i want you to react and i want everybody to react as well all of you wherever you are watching now, everybody in the box trying to think the same thing, when is the market getting some sort of stability >> negative inflation trend. >> bill ackman sent a series of
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tweets a few moments ago i want to read you one of them, steve, i want your reaction and everybody's reaction talking inflation being out of control. i am quoting now how does this downwards market spiral end it ends when the fed puts a line in the sand on inflation and says it will do whatever it takes, then demonstrates it is serious by immediately raising rates to neutral and committing to continue to raise rates until the inflation jeannie is back in the bottle stocks of real businesses in quotes are cheap again markets will soar when investors can be confident days of run away inflation are over. i get before i have you react, steve, investors aren't confident yet that run away inflation is in fact over, or that the fed is going to get it right. you have two problems colliding with one another, which is why you have such a degree of
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instability in the stock market. no >> that's what i was saying the beginning of the show. i think you have a fed chairman that said he will be incredibly data dependent, and my sense is that data is indicating we are slowing rather quickly one of the points josh made. i think ripping off the bandaid, going to neutral, 2.35 now, incredibly large move. i think it would challenge his credibility honestly because he just said we are going to move 50 at the next two meetings and be data dependent beyond that. >> some are advocating for 100 basis points immediately whether you believe that or not, ackman is not in the camp by himself suggesting the fed needs to be much more aggressive and get it over with and the markets will adjust, then we can move forward. steve, your reaction to what mr. ackman suggests on twitter
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>> kind of glad he is not running the fed i guess. i think that would be incredibly disruptive, more disruptive than already. i think bill like other folks is impatient with the process josh is correct, should have gun longer ago it is not important the fed get there with the funds rate quickly, it is important the market price incorrectly where the fed is going and bring it forward. i think bill is right in the following sense, that once we get the stability of knowing what level of the funds rate will bring down inflation, that will be the time or slightly before that to sound the all clear when it comes to the stock market i am looking today at what happened to the two year it cratered on a story at the open, down 11 or 12 basis points and came back a little bit
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look at the fed funds. i don't know if you have the chart i brought along. what we're doing now is pricing out 50 for september we're pricing in more of a 25. 90% probability of 50 in june and july, then come back, then the market prices in a 25 with 35% probability of 50 priced in for september. and what's interesting to me, scott, working on this story now, are we settling in that the fed needs to get to three? that's where the funds and futures market has been. bill might be suggesting we have to go further than that to ring out inflation, but i am seeing stability in the 3 to 3.25 range for the funds. if the equity market was comfortable, you could invest based on fundamentals and not fear the fed will punch it into recession. >> steve, appreciate it. let's take a quickbreak. pete, i have moves i have to get to you on. you bought calls yesterday
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do you know the art of a tease you have been doing this long enough >> he shouted it out >> reveal the rest of the whole show before we go to this break? i mean, you could do that if you want it is your prerogative may not see yobau ck in a box awhile nonetheless, back after this you. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire
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we needed her to help us fix a terrible mistake. is that a dinosaur on your sholder? yeah. why? welcome back to the half i am bertha coombs here's the cnbc news update at this hour. more grim findings in ukraine three months after the war started there. on tuesday, ukrainian officials said workers removed rubble from a collapsed apartment building in mariupol and found about 200 bodies in the building's basement the city has seen some of the heaviest fighting of the war chief of the world health organization set to be confirmed for a second term after running
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unopposed. w.h.o. director is expected to be confirmed by the u.n. health agencies member countries for another five year term. department of justice is issuing new guidance on use of force by federal law enforcement agents it emphasizes limits on when deadly force is warranted and encourages officers to intervene in instances of excessive force. it marks the first guidance update of its kind since 2004. and the last public pay phone in new york city was removed on monday afternoon to make room for newer technology the city is replacing the outdated phone stalls with kiosks that offer services like free phone calls, wi-fi, device charging where will bill d anted go for their excellent adventure. half time returns after this for your full financial picture. with the right balance of risk and reward.
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today obviously having a big week, maybe ignited in part by what jamie dimon had to say yesterday at the shareholder meeting. listen to what mike mayo told me yesterday about perception of bank stocks versus reality i am told we don't have that okay that's okay. pete najarian, i teased it earlier. you bought citi calls. >> yes, i did. you and i talked yesterday on overtime after mike mayo was on. jane fraser is doing a great job in the transformation. it is not easy, not a quick fix, but this is a stock that's been inexpensive probably for the right reasons, a lot having to do with exposure internationally. that's what she's out there trying to accomplish as quickly as she can, doing the right thing for the bank, but to get rid of that and jettison that and to be a u.s. bank we expect
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them to be because of that, now is a good time to enter here where the multiples are, to book multiples, this name is cheap. cheap for the right reasons. if she's able to pull it off, one of these names could get back to one times book that would mean the stock has room to the up side, scott book value now is 92 when i look at that versus jpmorgan, bank of america and other names, it is extremely cheap. like i say, cheap for the right reasons. after they get through the process maybe, just maybe this is a stock that has plenty of room to the up side. >> mike mayo, sound bite is ready, i am told mayo on the perception of the banks by investors and what the reality is >> bank stocks are low in value because the boogie man is going to steal growth and cause all sorts of credit losses and
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problems guess what there was no evidence of the boogie man causing a recession anytime soon credit quality is excellent. main street banking is on a tear and what's good for jpmorgan is even better for a lot of other banks. >> you own jpmorgan. it has been a downer, right? >> yeah. i actually think i agree with mike mayo. i think a lot of major banks are viable here because there may be a recession, and if we're not in recession by end of the year, may feel like we're in one anyway may not be in a technical one. if you talk to most people on the street, they think we're in one. that's the mood right now. we may not need to be in one, but the banks themselves, think about all of the things we have done from a regulatory standpoint since the last really bad crisis or last financial
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crisis we have things now like tier one and two capital, paying attention to level one assets, level two assets, level three assets we understand the damage that can be caused by underreserving for losses or liquidity mismatches in different assets, so we're not going to have a repeat of that it may be really bad for fin tech, but i think jpmorgan, citi, bank of america are viable here you have to live with the fact the first 10% may be down, not up i can live with that because i am a young man that'sed way i would look at those names. jpmorgan in the low 100s is a homerun. >> rob, you added wells fargo may 16th right? >> we went overweight the sector by adding wells fargo. since then, sector outperformed the s&p by 3%. wells outperformed by 5% the sector had a tough year due to slowing economic growth and
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higher expenses and valuations like mayo said are much more compelling it is possible we're turning the corner we certainly think we are. jamie's comments about managing expenses, finding ways to increase shareholder value and potential for rates for returns are positive things we think we put wells in with jpmorgan, blackstone, and jeffreys we added to it, it is one of the highest quality banks according to quantitative screenings trades wone times book mid teens dividend growth. it is attractive way to play financials and was the addition that put us overweight. >> we're taking a quick break. more trades ahead.
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steph, let's talk retail stocks best buy, trimmed outlook. abercrombie trimmed the full year forecast. you have exposure in the pays. tjx, costco on thursday. what are your thoughts >> i am not surprised with either to be honest target weren't selling tvs and luggage and sun tan lotion
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they have 75 days of inventory abercrombie told you the same. these are not a surprise, not companies i would own. i owned best buy in the past i prefer, tj is shining at this point. they delivered, raise margin assumptions, gaining marke we haven't heard from you on target yet you've been in a bunker or something like that taking cover from this stock. did you buy anymore? what are your thoughts give me a 30 second, 45-second riff here. >> had they came out with the numbers and especially when you look at the earnings a year ago, it was tearal. you can understand why the selling pressure was as big as it was and we all talk about it but i
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always live by discipline and rules. and one of my rules is i'm not going to react on the day one. i've trayed to be patient. i continue to see the markets have pressure on them. i probably at some point will be buying back in target. all of the issues they face and talk about with i think persist now. i'm not in a rush to add anymore but i'm is certainly watching it each and every day i'm sure the staff, including brian cornell were not happy about how they navigated but it's a difficult time anwell owhat.d a >> he said as much he said we own it. ture, even when you're focused on what's happening right now. and thinkorswim® is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform.
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unusualb, pete what do you see for us today >>ia know i'm going to start off with energy because i love the names. i'm going to start off with bakers hoouz they're buying rights where the stock is the stock's trading underneath 36 and they were buying 2400 of the july 36 calls and those calls are going for a little over $2. i immediately jumped on that i was leaguing to get back into more energy exposure
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second, i've got k web we have a lot of the puts in the chinese etfs that pop up 23.5 plus they're buying so, i don't talk about puts a lot but we've seen buying and buying of puts trading around 25/30 at the time those are going for about 50 cents. we know how active that's been i've got ea. electronic art 4200 of the june 3rd expeering 150 calls. the stog's trading about 136 they're looking for a pretty big bump i'm in the first two i have not gotten into ea yet. >> quick break final trades coming up next. perfect shapes sy run throughout the natural world. and can now be found in the automotive one. the world's most aerodynamic production vehicle.
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yes. three hours from now "overtime" we'll discuss where we are in the markets. can't wait for that conversation the venture capitalist is going to discuss the fallout for social media and uths as well. final trade is what? >> johnson & johnson top notch pharmaceutical business and you have the consumer spend early next year. like that stock. >> rob >> a lot of the automotive half the sector.
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strong balance sheet and benefitting from an aging automotive industry. >> pete, is that you at the top there, best buy? >> yes, sir. tell you what i did, with scott. i decided to buy the stock it's not options whenever somebody lowers the forecast and the stock is basically unchanged, i think that's a stock i want to own it's very cheap. >> you don't buy stocks that often. i know everybody knows that but i don't think they realize how rare it is the only other stock you've bought this year is goldman sachs. so, you don't buy it that often? >> no. this one will be interesting to see how it plays out >> j.b >> j.p. morgue the stock is off its high and this is now yielding more than 3% competitive with the 10 year once again this week as bonds rally and yields go down i really like the set up
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i think they can hold it for a couple of years. >> i hope you will all join me in "overtime" as professor sea gl joins me. woe have a look at the market at large as with well a dow has a loss of 250. it's hanging in pretty well all things considered. nasdaq down nearly 3%. i will see you in a few hours. "the exchange" is now. ♪ ♪ thank you, with scott. hi, everybody. i'm kelly evans and there are so many trouble spots in the marketb, it's hard to pick are to start from snap to aber kraumby, the nasdaq is bearing the brunt of the selling pressure, with eefen though bauntd yields are also sinking. new home sales plunging last month. are we with headed for recession or is this just a post pandemic reset? we have your playbook for what is wurging right now and a deeper dive into what's ailing the socdi

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