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

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the whole week >> definitely looking forward to that and as we've mentioned, major indices are quite a bit higher this morning, i think off the highs and tech in particular has been pretty strong, growth tech, we mentioned didi. a alibaba up too. >> i'm scott wapner. why some say it's poised to tinge. we'll debate and discuss that the road ahead with the investment committee joining me joe terranova, jon najarian, shannon saccocia and sarat sethi. we cut gains in half and somebody may be due to the ten i have year working its way to 3%.
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cri jim cramer tweets about it. still negative how much room do you think it has? we've come a long, long way, more than 9% on the nasdaq, more than 8% on the s&p and so forth. >> well, i think that it's going to be continued to be challenging. the catalysts, we're relying on economic data and the evaluation of that data and how the fed will react over the next few weeks and each of these data points is going to have two sides so we'll be oscillating between optimism and pessimism on a day-to-day basis. still concerns about margins and significant concerns about earnings estimates coming down in the back half of the year while all of us who are longer term investors are looking at this saying, okay, if i can buy a company that i like now that i can hold for the next five years it's probably a good price will it be the best price we're going to get over the next two to three weeks probably not i think this vacuum of information is going to create
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these large swings, there's going to be very little company specific news that's going to move us in the positive direction and so i'm really not looking forward a foundation for this rally to come until probably mid-july when we start to hopefully get some good news from companies directly. >> sarat, she did cut her s&p 500 target to 4700 from 4860 though she does say we think u.s. equities will likely to reassert leadership. goldman's scott rubener says, this is the best market technical setup for a rally we have seen in 2022 and buyers come out higher. what do you think of that? >> i think it's interesting when you look at it if you're a long-term investor and say, hey, maybe things go lower, i should get out but maybe i can trade it in and goldman says they're going higher, i think you stick where you are and look at the companies that you own and say, are these the ones that shannon said do you want to own for
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three to five years? if not, time to rotate out and if it is, you can add more to certain positions as we go into the summer and i think this is where kind of your real investments are made for the next three to pfeifer years because things that have margin of safety are going to be really good company. >> do you think we put in the low, things we put in the low of the year. >> i don't know if we have they could be so much more -- the news could turn so negative so quickly. >> what's your sense are you afraid to make that call and if you are, i totally get it that's what i mean, sentiment has gotten to the point where people are afraid to make any kind of call. >> i mean, if i had to -- i would say we've made the low i think we'll bump along and be down 3%, 5%. >> i pushed you a little bit i knew you would come around with something either we did or we didn't. >> i got to give you an answer if i don't we know what happens. >> because you're sitting right in front of me no hope for you. >> long hour >> exactly i'm glad you learned joe, so friday's cpi then looms
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large, right that is going to be the point of concern for everybody and i think, you know, we had a conversation that i suggested to you that i feel like it's kind of difficult to get too negative ahead of that for obvious reasons, i feel like risk is moved from the downside maybe to the upside because if that thing shows any sense of improvement, they're really going to sell off stocks >> no. so the asymmetric risk is to the upside and let's remember as i said last week the 52-day moving average is still 2 1/2% higher for both the s&p and the nasdaq. so you have a confluence of events over the next week that are going to occur obviously cpi which you've mentioned already, the federal reserve and then i think we're getting close to having some form of an announcement on what we're going to be doing with president trump's tariffs which will be expiring in july so collectively all that together, there's asymmetric risk to the upside the reason why we're pulling
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back you cited before a ten-year above 3% and natural gas prices which are up nearly 10% just today at $9.30. >> yeah, starting to get your attention when you approach double digits on nat gas not a lot are focused on that but we'll continue in just a moment julia boorstin has breaking news on twitter they now are responding to elon musk, right, julia >> that's right. twitter responding to elon musk reiterating his demand for user data he's concerned about the number of fake accounts and bots on the platform and threatened to cancel his deal to buy twitter twitter responding say, quote, twitter has and will continue to cooperatively share information with mr. musk to consummate the transaction in accordance with the terms of the merger agreement. we believe this agreement is in the best interest of all shareholers. we intend to close the transaction and enforce the merger agreement at the agreed price and terms, and, of course, we have to point out the stock
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is trading well below $54.20 that musk agreed to buy it twitter shares down around $39 per share. back over to you. >> julia, appreciate the update. thank you very much. in other words, we ain't budging, the word from twitter, 12:05 on the east coast. see how it plays out joe, back to you as you were making your thought. a lot hinges on what's going to happen on friday with the cpi. it does feel, dare i say, that the tone of the market has improved somewhat. i mean as i said we're up 10%. in a fairly short period of time but it still feels especially fragile. >> without question. it feels as though the market could roll over once again and that's more, i suspect, technically oriented than it is fundamentally oriented a lot is going to reside in what we hear from that inflation report but also what we get from the federal reserve. so i think the right way in terms to be thinking about positioning right now is
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obviously i am positioned for the upside but i'm doing it in a way that's kind of respectful of valuation, growth making a little bit of a comeback but i still want to avoid that hyper growth strategy. i want to stay more specifically with growth at a reasonable price and looking towards the value i obviously want to be in value and give everyone the mention that i think you should be looking at financials and health careand really thinking about increasing allocations there from a value strategy perspective. >> we're going to get more into that in a little bit because i thought tavis a really interesting note we have dr. jay with us. doc, where are you i don't see you. >> yes >> you're with me? >> you don't see me? >> there you are i just want to make sure. >> there i am. >> wanted to make sure you didn't go anywhere the market. >> that's true >> give me your thought. how are you trading it >> well, i wish i shared joe's
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optimism that said that, you know, the biggest move could be to the upside. i can't agree, joe, right now because the consumer -- >> why >> with that michigan consumer sentiment data, scott, that was the lowest in ten years, 61. this has been just plumbing lower as consumers are being squeezed everywhere, food prices, prices of travel, prices to fill up the tank and so forth, energy at home, everything is hitting the consumer, so if we do come out at about 8.2 on friday, scott, i guess that's better than a horrible scenario but that's not the sentiment that the consumer is feeling that's what the fed is measuring. what the consumer is feeling is something completely different, so if, indeed, we did see an 8.3 to 8.5 sort of print on friday, that would endorse more of what the consumers are feeling and to
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my way of looking at things, that would, you know, basically have us erase this ten-point rally like that. i hope that joe's right and i hope that we have somewhere between 7.9 and 8.2 and that that might be a little bit of a gold goldilocksish sort of area but if it's higher then it's, katie, bar the door you have smart folks elon musk, jamie dimon, nadella telling us to batten down the hatches. the only people that aren't saying that are the fed and they've been completely wrong the entire 18 months of this zoom on inflation. >> they're not theonly ones saying it. you gave me a perfect segue, lloyd blankfein is not saying that what he said, worthwhile, this was the other day or over the weekend, dial back a bit the negativity on the economic
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outlook. if i'm managing a big company of course i'm prepping for the worst alluding to comments from the likes of jamie dimon preparing for the hurricane but the economy is starting from a strong place with more jobs than takers and is adjusting to higher rates riskier types but may yet land softly so, doc, what do you do with that here's a guy, knows his way around the world, how to operate a large firm in unsettled environments and says, chill out for a second >> well, he says that we have a chance, a chance, i'd like him to handicap that chance for us, scott. if he told me that it's 60/40 in favor of a soft landing, he'd be way alone on that island saying that i mean, i don't think most people are thinking it's 60/40 or any majority chance at all. i think they're thinking this is a postage stamp that we're trying to land this plane on it's really small. the possibility that we have a soft landing
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now, it could be softish if, indeed, the fed decided to cut back to a quarter point in september and/or pause in september, but september seems like a lifetime away right now with half a point coming now, half a point in july and then jackson hole and september looming, so i would say i respect the heck out of mr. blankfein, but it's not a very high probability and i'd love to hear his handicapping of it, please, lloyd, give us a holler we'd love to hear it from you. >> you could say the same thing about dimon with the hurricane thing, right i mean, he didn't suggest that it's a guarantee to be another hurricane sandy, for example, a superstorm he threw out a range i mean it could be, you know, it's stormy. it could be a mild storm it could be a category 5 i mean, you just don't know. but my point, shannon, is asking
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the question as to whether things got way too negative way too quickly because as everybody has suggested including the fed chair on down, we are in an uncertain environment but one that starts from a very strong foundation >> yeah, i mean i think we need to talk about whether we're talking about an economic softening or a true deep, long-lasting sustained recession. and that's where the starting point comes into play. if you're starting with 11 million job openings, if you're starting with 3.5 million people looking for jobs thinking about what is the consumer doing they are spending less on goods but many consumers are spending more on services, look at the jobs report friday. hiring, leisure, hospitality, professional service, all of those things to me don't point to a deep persistent sustained recession. and if we are not entering into a deep persistent recession, then we have to think about what have we already done in the markets? how much has this adjusted if you want to talk about profitability, are margins continued to be squeezed
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will they have to work harder to deliver on the bottom line absolutely preparing for a hurricane, the existing economic situation that we have today does not point to that for this year and likely into the first half of next year >> you think things got too negative too quick and need to reassess where we are and where we may be going? the market was a sell first, ask questions later kind of a market and now maybe we need to stand back and take a look at things. >> it was and it did bring down certain companies, 70%, 80% completely on the valuation side but things got pretty negative you are seeing demand whether in airlines, seeing it this hotels so people are still figuring it out and how much demand occurs when rates are this high or go higher and that's doing part of the job for the fed so the question is, you know, how far does the fed go when they've already seen the data come in and you'll see slowdown whether it's especially in the goods part. >> you know, you know, joe, that
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the tone is at least moderated a little bit when the grizzly bear of wall street, i.e., mike wilson of morgan stanley who will be on with me in "overtime" today unless he cancels because i called him that. i hope he doesn't. he's been negative, right? now he says, it takes time for earnings revisions to head lower and in the meantime, stocks can hang around current levels until q2 earnings season when the next leg lower is about to end. he's as negative as he's been, but he's not an idiot. he sees the fact that the market has rallied 10%, as i said, and there is a little bit of momentum behind the move so thinks it can maybe stay here, maybe go up a little more but, you know, obviously then it's going to be judgment time. what do you think about that view >> obviously i agree with it and, you know, for forever on
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the panel to consider i think what's obvious for markets in the last several weeks is that we've now fortunately reached a moment and i'll call it just a moment where we're not getting a negative response to negative news anymore i mean, jon knows this well. pete came on air he made a fantastic purchase of nvidia at lower levels we had what was a report which the stock should have continued lower and it didn't. the same thing could be said for last week with the microsoft news market should have gone down on that and it's not so i do think that we have now priced in some degree of negativity and it's reflected in a lot of the scenarios that i just said and even to a certain extent talking about, you know, consumer sentiment which has been on the decline for -- throughout 2022 i think that's kind of well understood already so next week, you know, or when we get the inflation reading this friday,
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if the reading is worse than feared, okay, we know we've got an inflation challenge and the federal reserve is going to have to respond to that next week but if inflation comes in a little bit better, i think that's where the market has the ability to move to the upside. so i agree with what mike is saying >> sorry, joe. i think it was a day or two after the microsoft news was when the note dropped on apple which i was looking at as joe was talking about the market not going down on negative news, apple was a big weight on the market on friday now, the market is barely hanging on to positive territory now. when apple is actually doing the exact same thing, barely hanging on to positive territory, once again, at 145 as we speak, the wwdc, worldwide developers conference kicking out today and wanted to check in with steve v kovac. he's there as they have this news on the
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backdrop of what's going to come in the quarter >> reporter: yes, scott, that's right. in about 40 minutes wwdc starts and that's going to be where we learn a lot about software for all the various platforms, iphone, ipad and so forth but hanging over this event, scott, is augmented reality and this headset we're expecting later this year so what i'm going to be looking for is anything that apple announces today that kind of builds on that foundation of augmented reality they already have now, you might not know it, augmented reality already exists on your iphone and has but the use cases aren't there because it's annoying to hold up your phone and go all over the place with it so the idea is they might have some new features today on the iphone that can be translated later to the augmented reality headset, scott. >> we'll look out for it thanks, steve. the bottom line is, doc, great new features, all great, fun event out there. doesn't move the stock it's not a stock mover, right? >> no, you'll still be worried
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about -- >> you got a month left before we start talking about earnings season and now what this huberty report about a slowdown in the app store will mean for that >> yeah, and that's katie's estimate those aren't numbers directly from apple >> but she's katie huberty >> yes, she is uh-huh and she's an uber bull on this stock, you're absolutely right. augmented reality and some of the devices like these apple glasses, at least in air quote, that's what people have been calling it, could be a game changer for them it depends how much of that they show us, scott it's more likely to be just as kovac said the likelihood is that it's going to be tweaks to the operating system with some hardware upgrades for the ipad and things like that so not terribly exciting and not
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surprising that the stock is flat going into that but they could surprise either way, i would suspect that a little more talk on the augmented reality side and those glasses could be exactly that kind of catalyst. >> all right shannon, the other one we need to talk about is amazon, up a couple bucks, close to a couple of percent, 20 for 1 split goes into effect today. since 1980 according to bank of america shares of companies that do splits are typically a 25% a year -- up 25% a year later. compared to 9% for the broader market they also outperform three in six months out. >> i hope that is the case here. as one of the largest companies in our portfolio. >> for what's been a aldama, right? >> absolutely. >> worst performing -- next to facebook. >> i've gotta too so, there you go >> all right down 27% year to date. >> yeah, i mean you look at aws, still the story here i think continually investors are looking too much at the e-commerce side of amazon and if you strip out the e-commerce
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side, aws is worth more than it's trading for so this split if we get new additional investors into the stock for me this is still, you know, long-term thesis is that thpart will grow and make up for whatever they need to do to continue to be leaders on the distribution side. >> you got amazon too. >> i do. i feel the same way. >> does it matter? >> it doesn't party because i like the fundamentals. the company. i do like the aws piece of it. it's like the google part of the google cloud these are the recurring businesses, some of the other parts of their businesses are getting negative value whether you're in now streaming and some of the others so i think you want to hold this for longer -- >> it's way more of a positive than it's way more of a negative. >> absolutely. >> there's like nothing negative about it. >> no, and you can -- you'll get people buying it that couldn't buy it when it was over $2,000 much more tradeable now. >> from an options standpoint. a quick break, straight ahead a big call on the semis today.
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we'll debate that and wrooel trade it as well in our call of the day. market picture hanging on to positive gains barely across the board for stocks there's the ten-year note yield, 3.02 is where we are currently back in a minute
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we'll get to our call of the day in a moment. doc, i wanted to come back to you. with what you're seeing, unlocked because of this split >> well, you said it and you're exactly right, scott this morning, 35,000 of the weekly 130 calls were bought just in a huge block, so that's 3.5 million share equivalent and i just threw it back out to you because you nailed it. it's not just that more people have access to the stock, which sarat correctly called but options which are just exploding, the volumes there will be pretty telling about where the stock goes in the future. >> it just gets lost sometimes in the conversation about why stock splits can be beneficial for certain types of investors so i'm glad you noted that
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i do want to move to our call of the day. it's citi out today with a new note on the semis and they name analog devices, shannon, you own it so i'll go to you first and call it their top pick okay don't be confused because they're negative on the space. they're positive on this one and the target goes to 192, but they are super defensive getting more, in fact. we believe semi stocks can decline another 30% based on roughly 20% downside to estimates and 10% downside to multiples based on previous downturns so you are at least according to them in the right one. >> but should you be in them at all is really the question, right? >> well, this is -- if this is viewed as a more defensive place to be in, i don't know, maybe it's a port in a storm, right? every sector has some stocks that will work in trying times and maybe this is the one that's it. >> yeah, i mean this stock is trading at 15% discount to
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historical averages. it is 51% industrial, 16% communications which will benefit from 5g. i think if you look at the note and the concerns is really about pc demand and this is not new. we've been talking about lower pc demand since everybody started going back to work and so i don't think there's too much of a concern here for our position in analog but i think in the overall space there's a lot of talk about this over ordering that has happened perhaps in the last couple of months due to supply chain constraints and could be cyclicality that pressures them lower. you really just have to look over the next two to three years and try to determine how much of that end demand has been completely met or how much of the supply is going to be sapped as other parts of the supply chain get online and i think actually that's the positive catalyst. >> your view, qualcomm and nvidia are the ones that you have i mean, they say that their analysis shows that this downturn as they call it looks most like 2011/2012.
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we believe the severity of a likely recession will term how long the downturn is. >> qualley com, 11 types earnings and 5g is the strength they're in autos as well, nvidia, gaming and data center. i like these coming ott of a slowdown because they have really good intellectual property the question of the overordering, yeah, we know that but this could be the classic example if they do what nvidia or qualcomm does and says things have slowed down but we have good solid balance sheets and demand this, could be a one or two-quarter thing but these are good cyclical growth stocks that are trading now at a discount and could get better. >> you say i like these coming out of a slowdown. what about going into a slowdown is the issue at hand. >> you could argue qualcomm is priced in the slowdown already historically at 15 to 17 times earnings so already 30% less than what it used to be. >> doc, you have nvidia stock and call, amd calls too. >> yeah, i do, scott and i
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really love the nvidia side because they have those three big levers to pull and any time you have diversification of revenue streams, you know, it's one of the reasons i love apple and always pound the table about that i think nvidia has that in spades now, amd is just crushing it in data centers, i don't see those going away with cloud and all the rest as big as cloud is going to be and we've already mentioned aws several times on the show but i think amd is really just head and shoulders above everybody else in the data center world right now and that's why those are the only two right now in my portfolio. >> joe, you own it i think it's the only semi stock you own, right >> i do and, listen, full disclosure, joe t. has significant exposure to semiconductors i think the challenge is as an investor, if you are conducting
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a diversified portfolio construction, you have to include semiconductors within the allocations because they're so incredibly relevant overall to the economy itself. the problem is as shannon spoke about is that inventories are building and they're building very aggressively. days of inventory rose to 53 days from 42 in the prior quarter. so the concern you might have to your question to sarat, scott, is if the economy slows down further, well, i.t. spending will slow down as well that's going to lead to this continued malaise overall for semiconductors and as i said before as i began the show, the market has the potential here for a near-term rally but if you want to signal the all clear, you got to be certain that the semiconductors are participating because they're incredibly critical last point on that is i would look at taiwan semi. taiwan semi geographically in
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such an incredibly important part in terms of contributing to where the demand is coming for globally but yet taiwan semi is really trading rather awful as giving no signs of really bottoming and recovering just yet so i'd watch it which is not giving you the confirmation, semis aren't giving you the confirmation right now and with the longer term perspective of is this is an all clear, it's not there yet. >> taiwan semi about to go negative as the dow did as well. we're negative by about six but have given up almost all the gains across the board nasdaq is barely higher by about 7 points, s&p hanging on by 6. so that's where your rally has gone at least at this moment and still sticking -- now 303 is the ten-year so keep your eyes to the right as well. see what rates are doing a quick break. doc, unusual activity coming up with the big etfs to watch as well don't miss a special week of
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you coming or what? welcome to the etf edge portion of "halftime report. bond funds have seen inflows including high yielded treasury etfs let's talk to jerome snyder who manages the largest etfs in the u.s. jerome, all the bovendz etfs have seen outflow but it's changed they are re down today reconcile this for us. why won't inflows turn into outflows if the fed will continue its hawkish policies? >> absolutely. the trend has changed for two reason, one the uncertain economic outlook that it's an
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anti-goldilocks environment where growth is in question. where the market isn't necessarily too hot or too cold. that makes it more ripe for bonds to be considered second, recalibration we witnessed which has moved rates and more importantly yields for bonds to a higher plateau which hasn't been seen in quite a while and that's attracting new investors primarily investor advisers attracted to risk throughout the era of quantitative easing and easy credit financial conditions to move to a place where, in fact, looking for yield and total return on a safer basis and identifying bonds are different in this environment. >> yeah, you know, jerome, you're one of the biggest active bond fund managers passiveindex funds have overtaken active funds, 16% of market captily says controlled by passive fpdzs versus 14% for
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active funds according to the ic you run the biggest funds in the united states. do youthink you could still provide outperformance after fees look at how much money keeps going into passive >> well, what's happened really is two things, one, investors are taking a look at with a fresh ideas are in fixed income which is number one higher yields and looking to how to adapt and they have to be more sensitive to the environment they're in which requires differentiation in terms of credit spreads, differentiation in terms of sources of this can and that's where passive or sorry, that's where active comes in in this environment where passive may be left behind over peers of time so the initial stage is a rotation to fixed income the second part is creating differentiation in value in terms of active management that's what we see over the next one to two year, tremendous growth in fixed income and more importantly fixed income etfs over the next five to ten years is the focal point not only is it existing investors making
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that pivot from risk assets to more income oriented investments but secondly financial advisers and other people who haven't necessarily been afforded the opportunities to partake of fixed income in the past are looking to etfs and specifically active etfs as the conduit to derive value for their clients in an uncertain outlook. >> all right, thank you, jerome. much more coming up on the debate about bonds and active versus active on "etf edge." is that irrelevant what will replace it dan weiner is the editor of the independent adviser for vanguard and will join us "halftime" back right after this what's going on? where's regina? hi, i'm ladonna.
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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! become an agent of innovation with invesco qqq (fisher investments) it's easy to think that all money managers are pretty much the same, yeah... oh. don't worry i got it! but at fisher investments we're clearly different. (other money manager) different how? you sell high commission investment products, right? (fisher investments) nope. fisher avoids them. (other money manager) well, you must earn commissions on trades. (fisher investments) never at fisher. (other money manager) ok, then you probably sneak in some hidden and layered fees. (fisher investments) no. we structure our fees so we do better when clients do better. that might be why most of our clients come from other money managers. at fisher investments, we're clearly different.
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our cnbc news update axon is scrapping a project. it was working on a drone that first responders could use to fire remotely at a target.
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however, the announcement prompted nine members of the company's ethics board to resign british prime minister boris johnson facing a no confidence vote today that could remove him from office. johnson is under fire for holding parties that defied nationwide covid-19 restrictions, most political observers in britain think, however, that johnson will survive the no confidence vote results expected at 4:00 p.m. eastern time federal prosecutors are trying for a third time to win convictions in the case involving alleged price fixing in the poultry industry. they're back in court in denver today. aiming for convictions of five current and former executives of chicken processing companies like pilgrim's pride and tyson foods. the first trial ended in a mistrial back in december and a march retrial resulted in a hung jury scott, back to you >> appreciate it seema, thank you very much. wolf research, as we note that oil right now, crude is at 118, almost 119 a barrel
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the big focus on nat gas as well up 9% today north of 9 bucks many wolf wants you to play offense and defense and want you to play it the same way you've been playing it, i.e., doc, stick with commodities and classic defensive plays but let's talk commodities first. halliburton, schlumberger, diamondback calls and what do you think given your exposure in the space here >> well, there aren't a lot of alternatives that people have right now, scott obviously evs are a growing part of the way that people deal with not having to buy crude -- fossil fuels but that's a very small percentage it'll grow but it's small so the alternatives are just not there. secondarily, the sanctions that we and other nations have put on russia make it really tough for europe in particular so they're
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drawing a lot more energy to europe from other areas that normally we and the chinese and others would be buying from. and i think that's just a perfect storm to send crude oil as i think jpmorgan's analysts have said up to 150. we'll be dealing with six and 8 and $10 a gallon crude oil refined product. i just don't see an alternative right now. >> sarat, you could pick at this call and some say it's run too much time to take money off the table. even if you don't want to the market may do it for you if people take money there they'll put it somewhere else and say staples have run a lot maybe that trade is done too especially if sentiment trends positively what do you say? >> on the other side energy did nothing and right now it's got its day in the sun and you have to be careful in a diversified
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portfolio energy has outrun everybody else so okay to take profits. >> are you doing that? >> yes, the most i'm trimming is apache it's dong well, a speculative play and trimming others back to market weight because they've done well in the portfolio when you talk about consumer staples i'm still overweight consumer staples it's a good defensive edge in a portfolio and i think if things slow down you still -- as long as you're in the right staples, i think those are the ones you want to hold. >> materials and industrials, you own freeport, you own air products, martin marietta, rockwell automation. what do you hi >> i think from a cyclical perspective we've been light energy and hasn't benefited our portfolio but industrials exposure i continue to think the manufacturing renaissance occurring here in the united states will continue productivity will be important to that so there's going to be a lot of capital reinvestment. i'd like to pick and choose my cyclicals but you need some
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exposure even if we get an economic slowdown. >> the good, the bad and ugly, the state of hedge funds in this market following the money our leslie picker is doing that next >> here's a tip for your money, your future. to analyze personal cash flow take your monthly income after taxes, that's your inflow, add up monthly expenses, rent or mortgage, credit card, auto loan payments, that's your monthly outflow. your monthly inflow minus your outflow is your personal cash flow and tells you if you're living within your means for cnbc aim sharon epperson
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from the most innovative company. bring on today with comcast business. powering possibilities.™ welcome back to "the halftime report. hedge funds in this very volatile market, our leslie picker following the money for us and has our report. hey, les >> hey, scott. may was another rough .for hedge fund managers for those two trade long and short in equities on an asset weighted basis it was down nearly 2% in may during which time the s&p was effectively flat this means that the average negative returns were driven entirely by negative alpha on the long side with little help from shorts, not that broader market activity. technology funds were among the worst down more than 8%, health care was down more than 5% for the month on average you saw this in the returns of
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tech oriented firms like tiger global and d1 which have taken massive hits in their public books. pershing square which has little tech exposure down about 18% this year. interestingly, though, the computers that bet on and against stocks had a mirror image of returns during may, systemic long short funds generated returns of 2% last month. in volatile years like we've had that can make faster pivots which is perhaps why you're seeing a disparity between people and machines this year. scott. >> they do say people, you need people right now active management is better in this kind of environment we've heard that many times before, leslie >> that's right. well, these systemic funds are actually considered active management because they're programmed to do things different than, say, the indexes, even different than etfs they do invest oftentimes in individual stocks just trade in
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and out of them quickly and with the current environment and so much factors and so much news on a daily basis, sometimes it helps to have kind of a computer at the helm that's maybe less emotional about trade, at least that's what the returns in may would suggest. >> got you leslie picker, thank you, as always. stay with us. stay with us the usual activity trades are coming up. plus all june we're celebrating pride month. cusandra >> my son opened up to me about his true identity when he was a freshman in high school. his ultimate goal is to be a commercial airline pilot and fly internationally. but there's 71 countries where being gay is a crime and it's punishable by death in 13 of those countries. pride is a perfect time for ally s s to commit or recommit to doing
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john, let's talk the yoolgs. what to you have for me today? is >> let's do that, skat i'm going to start with drg and go to energy these are at themany call
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because the stock was $90.15 when they started buying them. they bought about 9,000. that's nearly a million hear is eb quivalent stock trade, like i said, energy prodooss for almost 5 million across the country 7500 of the july 27 calls, these are just out of the money. the stock was 2630, i think, when they were buying those. in both cases they're at the money or just below the market third and final is quantum scape, qs. this is lithium ion batteries and so forth 5,000 of the weekly june 13 calls with stock at 1250 anu kuerig, dr. pepper those calls were trading for 30 cents. they went to 2$2.40 today as the
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stock popped and for that reason, you had about a 600% return on those calls >> good stuff. dr. jay, thank you we'll do final trades after the break. 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 think he's posting about all that ancient roman coinage? no, he's seizing the moment with merrill. moving his money into his investment account in real time and that's... how you collect coins. your money never stops working for you with merrill, a bank of america company. ♪
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4:00 eastern with that man right there withb mike wilson. morgan stanley chief equity analyst. along with erin brown. frrlg and then cramer out in san francisco all of this week he's got a huge line up and we're if wing to talk about the state of texas with mr. cramer >> we mentioned it earlier but brockwell automation believes we're going to bring a lot of production back in the united states and automation is going to be key given the labor shortages we have. >> joe, you're up mext >> i got out of this in november at 457 generac, with each of the monday said in the course of june i'll be doing the same
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>> why generac >> play on clean air and from evaluation perspective, it's come down enough to where i think the valuation is reasonable >> dr. jay >> unm this is a jenny harrington stock. we're seeing unusual activity at the july 3750 strike i join jenny i'm in >> american express. a tail wind with consumer spending and business spending as people start traveling. and genz and millennials they spent a lot to invest in their brand. >> edward jones, makes you want to ask you, because you do have exposure in that space too >> and in terms of valuation, when you look at the morgan stanley elissing at nine to ten times earnings
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we talked about earnings discounted already but they're good balance sheets and growing dividends. >> assuming you think the economy averts the worst of the down turn. >> assuming we have a slowdown and the stocks do well >> your favorite name in the group. >> morgan stanley is my favorite name >> good to have you both here. the exchange is now. i'll see you in the afternoon. >> thank you and thank you, scott and welcome to the exchange. here's what's ahead. the big news we're watching. apple developers conference picking up right now everything important apple announces as am vesters look for something, anything that might turn the stock around. stocks losish most of their gains. the nasdaq turning negative. are the markets too volatile or should you put money to work oil is up there


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