tv Fast Money Halftime Report CNBC July 25, 2019 12:00pm-1:00pm EDT
starbucks, expedia is going to be probably the -- it is the busiest day of earnings season. >> yeah. more importantly we've got intel's ceo on "squawk alley" tomorrow to talk about the results, whichever way they fall. >> and lots of other things, i'm sure no shortage for the intel ceo. china and huawei. >> that's going to be big. let's get to melissa and "the half." >> i'm melissa lee in for scott wapner a big moment of truth for big tech it's 12:00 noon, and this is "the halftime report." >> get ready for amazon, alphabet and intel after the bell more than $2 trillion in combined value what's at stake for this tech trio and this market airline anxiety. shares of american and southwest getting clipped. is more turbulence ahead for this group two things are happening in this market right now that may be signalling a strong rally ahead. how to position for a second half surge. and what's not to like
a slew of upgrades on facebook is it a big thumbs up for the stock from here? "the halftime report" starts right now. >> it's great to have you with us on this thursday. our investment committee today, joe terranova, steve weiss and john and pete najarian and portfolio manager ann brown. alphabet, amazon and intel all set to report earnings after the close. it could be a big day for the markets tomorrow, depending on what these three say pete, your feelings on amazon. >> i think it will be very interesting because of the fact that everybody -- we've watched this thing move all around it, and now all of a sudden you've got sort of the government kind of coming at them in some ways as well. i think it's going to be very interesting how they put this out there. i still think you look at aws. that really is what amazon is, and because of that, they are a cloud company, the biggest there is and how well are they doing there, and if they do as well as i expected they would after you look at microsoft and some of the rest of them, i would think
they would put up a pretty strong number, but is there some weakness from within as well, because they are getting attacked from different angles right now. >> that's right. >> they are a distance third actually when it comes to cloud services but the growth rate in cloud is higher in facebook as well as alphabet john in, terms of amazon, you know, we just came off of prime day and one-day shipping was a big thing, and that is expected to be another big driver for this quarter. >> for this quarter though, mel. >> expectations but also the spending on the prime day. >> very true, very true. >> this is going to be, you know, with us for a long time as one of the success stories in american history really. amazon has done fabulous, and they have branched into so many different directions this one doesn't get me nearly as excited as microsoft, however, mel, because microsoft has been just doing it on the cloud side with azure. microsoft has also -- the subscription revenues and things like that.
only amazon has subscription revels they have prime, and you cited prime day which they extended by 12 hours this year kudos to them. it looks like singles day was made by ali baba this is a great way to get consumers to spend we also know it does pull forward a lot of the interest if not the outright buying, and they have put some things out there as a loss leader nonetheless. >> yeah. >> like amazon, like google, but these aren't nearly as exciting to me from the cloud side. >> sure. >> as apple will be because apple, we all have these billion devices around the world, and those billion devices putting stuff up into the cloud, that is going to be just mana from heaven. >> you're nodding your head, joe, when jon was talking about microsoft being better over amazon and do you think there should be a discount to amazon's valuation given what the government may or may not do >> when you reflect back on one
year ago, there was so much of a reliance on what the results were going to be from big tech, from the faang names and from amazon, and if we think about last year, it was the really strong earnings that we got in this time of 2018 that propelled the market to the new all-time highs. i think we're in a different place right now. i think we're in a place where you can expect and not be surprised at all that amazon would be strong this evening you're looking at awful beth and intel. you're wondering are they going to disappoint us again, and if they do, it's not a big deal, why? >> because technology is different. there's more dispersion, there's oracle and adobe and lam research and all these other technology names that are working right now. i think that's a good indicator for technology right now because we're less reliant on the big names. >> we've seen that rotation. software in favor. the recent run in semiconductors, so is faang just -- it's lost its mojo in
terms of investor interest. >> i don't think so. take a look at what facebook was looking like after the call, another very, very strong quarter. there used to be a concern when a company was under government assault that they would -- like the drug companies used to do is rein in the quarter. i don't know if it's aggressiveness or arrogance. >> isn't that what we heard on the facebook call. >> yeah. >> they were a little bit more cautious perhaps than they might have otherwise been. >> but they put up a very strong quarter. in terms of amazon, regardless of what happens this quarter it's not the end of the amazon story. in terms of azure, look, it was the slowest growth they have had in the cloud in the last three years i believe, but that's a -- that's because of the size of the base has gotten big, so i still think they can be there and still perform. i don't think the market needs to perform to your point, but i think they will perform. alphabet is the one that i'm worried about because they have had some growth issues even though the growth expectations are very muted,
below 20% versus 26% we're used to i shaved a little last week. i own a little amazon. i'd buy more if that got crushed. microsoft is still there, and i bought a little more after the quarter actually i think it's much more predictable earnings stream in microsoft and more analyzable than amazon or the others so i'm happier. >> it was a first-quarter disclosure that have slowdown that really got alphabet, right? >> yeah. >> and that's partly why or a big reason why it's been a lagard compared to its big-cap peers? does the valuation reflect that, or should there be a downside? >> i think it does reflect that. i get more interested all the time with alphabet i haven't been in there in what teams like forever i haven't been able to pull the trigger to say you know what, and i'm getting closer, but you now what, how many higher do i think microsoft gets before it starts to pause? and everybody who was on the sell side is now on the buy side everybody flipped. it's amazing >> give me a number. >> if we get towards 150 then
i'm out. i'm just going to walk away from microsoft for a while and wait for a great opportunity. they always come they will come i think in microsoft as well. something will happen. they will stumble along the way. they will miss something the growth will be a lot more worse than expected, and because of that i think that will be the opportunity to jump back n. >> where are we on valuations within technology? >> valuations are certainly rich when you look at the underlying fundamentals of the businesses, but then you have instances like amazon that continue to innovate they continue to show strength in terms of moving deeper into the supermarket market so you continue to see these companies find new avenues to disrupt, and that's why it's really hard to stay on the sidelines, in the services and the software and some of the internet names because they continue to find new ways to break into different markets. so i think they are going to continue to expand share i think that the announcement >> despite whatever government scrutiny may come? >> it's really hard to handicap what that is going to ultimately
result in. standing here today, you know, this is going to take a long time to work out do i want to miss the next year or two of good earnings and, you know, continued expansion into different market segments in order to, you know, because i'm concerned about government intervention, two to three years out which ultimately probably is going to result in some stricter guidelines and maybe some settlement but ultimately it's unlikely to completely change the way that these businesses operate. you know, i think you have to stay involved in these names. >> yeah, look at the banks the banks had the government as a silent partner and maybe not so silent for a number of years. >> sure. >> every time they did something, yet the bank stocks went up during that period without growth in lending or top line at all and they still went up this is a fact of life amazon's dividend policy now may be the government going forward. facebook's dividend policy may also be the government they are the only recipients of those dividends.
that's just how it is, a fact of life with that all said, amazon is paying out 5 billion, and it's not hurting them whatsoever. no layoffs as a matter of fact, they are hiring more so the growth is enough to subvert those government actions in terms of penalizing them. >> i think the one difference though between the banks and the amazons or the facebooks of the world is the fact that, first of all, i don't think you can see a steer in terms of the government regulation in part because this is where the growth is this is where the innovation is in the economy and ultimately this is what our growth engine is that sort of differentiates us from the rest of the world. i think it would be really hard to impose very -- some of the more austere, you know, government intervention that people are concerned about right now on the tech sector given that this is what's fueling the underlying economy and really leading to job growth. >> here's the positive side. they have massive war chests other companies, smaller competitors don't. so just like the banks that put the smaller banks out of
business and forced them to merge, the smaller companies won't be able to compete because they will be under the smaller regulations and if they come to google and they say slit it up, you've got more parts coming out. >> sum of the parts argument in terms of the difference in the argument i would side with erin because you're not paying the valuations that you paid for banks for growth, because you're paying for the growth that may ultimately be handicapped by government regulation. how do you separate those two, because for the banks you weren't paying 26 times forward earnings, for instance, which is what google or alphabet roughly is trading at right now >> it's too early. you know, if you take a look, you can say that this administration is more a.m.ed on business than even the obama administration, but yet you've got a big cellular merger today so what we're talking about is a year, two years, and then you've got appeals from that so could you five years out before anything happens. >> let's talk intel.
>> mm-hmm. >> there's you a lot of stuff going on with intel including is it selling off its smartphone chip business? where do you stand on them going in >> this one hasn't excited me lately. >> i know pete is excited. >> you're still xided, okay. >> micron for me is far more exciting and we talked about that the last couple of weeks on this show. >> yeah. >> so i like that side of chips better the i even like amd better than i like intel so if you want brother versus brother, i mean, i like amd i like advanced micro devices and i see a lot more institutional capital buying in, getting in rather than just intel where it's been hiding out and staying in there for a very long time. >> and there's concern about data center, one of the most important businesses for intel, a money-losing chip income that it may or may not be moving.
>> i actually had somebody from within in the ceo process. >> you want a new guy. >> now we'll find out, mel, but a he's been there a little while and how well is he directing probably a very difficult time last week with you on the 5:00 show we were talking and i had three different chip names that i put out as a final trade intel was not one of them. i am in intel still. and if i could continue to own this stock i think it's so inexpensive right now with the growth that they have got that there's still upside, and i see $60 in the not too distant future for intel, and that's why i'm still there. >> i think it's two completely different companies. the pe on intel is somewhere around 12.5 so amd you're talking about a completely different model. jon is right to highlight the opportunity it's been in amd and it continues because they are getting far more competitive and taking some market share away from intel. >> yeah. >> intel tonight, to me the story is about the lack of strong sentiment
i don't think there's very many. i've heard pete talk favorably about it, but not many on the street expect tonight intel to come out and have a blowout quarter and you'll see intel up 5%, 6 can the tomorrow i don't think that's where sentiment is that's one thing that intel has going for it and just fundamentally and looking at the momentum standpoint, amd is the right place to be right now. >> c pu and the ability of amd to gain market share over intel has been highlighted we're sitting here on "the halftime report" talking about a call out of atlantic equities saying, you know what, it is happening, amd is positioned to gain over intel next year, but you know what, that's reflected in validation. what do you think? >> i think it is we sometimes make it more difficult than it has to be. it's momentum market, not only in stock price and fundamentals.
it's the same thing with the chips. you're either stage right or stage left i own much more of the index, the smh. why make life more difficult i've got lots of difficult decisions. i own skyworks because of 5g and own amd because you brought a new ceo in there a while ago who is doing a phenomenal job redirecting the growth of it and you can sit and hope and pray that intel is going to be the next microsoft and change their business model, but they don't have the same levers, so i would rather go with growth. >> they have some levers. >> absolutely. >> and when i look at intel, that's one of those -- it's a stock that i own not necessarily i trade around it with options but the mike ron. i bought cole's and bought stock in mike ron. that's a trade i'm not sold that mike ron is going to be a company that's the next intel and be everybody knows that you'll see this stock
being $38 a share, maybe all the way up to $55, $60 a share so it's an extremely volatile stock that you can own t.amd the same way. i own calls in amd do i think it's a bit of a valuation stretch? absolutely, but i love the momentum we see in many so of the names. intel is astock that i hole, like a merck and pfizer and some of the other names i've earned for years. >> just as you and pete were saying, mel, as far as the new ceo, it's more or less, not a clearing of the deck, but certainly the marking made right now by getting rid of this sell to apple and so forth. i think the reason they are doing that is to focus on the more profitable business areas, and so, in other words, get rid of this. >> oh, yeah. >> and then move on to the other. that's the stamp that the ceo's putting on this company. >> let's stick with chips. one of thehottest trades of th year, and that's exactly why our next guest says they are signalling a new high for the markets. tom lee is the head of research
and joins us on the phone right now. great to have you with us. >> thanks for having me. >> you're seeing a rally of as much as 10% in the year. what's the catalyst? >> yeah. i think a lot of things are coming together and they are just cautiously optimistic i think they hate the moves and i think the earnings session thesis is turning to be more bunk i think it's a more mid-cycle bump, and i think people underestimate the importance of this fed cut i mean, number one, i think it will have an effect on the strong dollar and strong dollars mean a hurt in earnings and there's been a stress in the overnight market feds fund is trading above the interest on excess reserves, and i think a fed cut will really ease financial conditions, and that's why i think 10% is really possible in the second half.
>> how important is the rally we've seen in semis to make you believe that we'll see this rally in the second half >> i think it's important because, you know, semis are a very important cyclical stock. they have typically indicated market peaks because-ins '01 and '07 they were rolling over pretty dramatically months before the top when a semi makes a new high this is not consistent with the kompany topping. if anyone has a late cycle and bear market around the corner, they are fighting history. the semis are saying we're going to real and be big in the second half. >> it's joe. the contrarians will argue it's just about being inventory being worked off, and the real strength in thesemi space is coming from the equipment side how would you respond to that? >> i think that inventory correction has been something that's really been mixing the economic picture everywhere. i mean, i think that's one reason pmi has taken a downturn and everybody watched a
government shutdown, on of the longest in history and that's hurt the pmi and longer-term gdp but when i look at semis and their price performance, to me it's not about inventory the market is good at discounting temporary earnings versus a ray rate of this group and semis are sniffing out and are moving ahead to fundamentals. >> you want to get cyclicals this time. which could you like >> if we think about about it. i.n.a., there is no alternative. technology has a good cash return almost 6%, and u.s. tech is cheaper than europe, japan, emerging markets the other group that's really interesting is financials, and, by the way, those are the two groups that are having pretty good eps revisions as we're moving through the quarter and financials are up year over year i know you guys sort of talked about it, but i'm pretty bullish on financial. >> tom, i'll leave it there. thanks for phoning in.
>> thanks for having me. >> tom lee of fund strat you agree with tom there is no alternative to going to tech? >> i agree but i don't think semis is the place to go to. even getting back to the argument, which companies actually have the big cash amounts on their company >> it's apple, idm. so if you're making that alternative then you want to go into the software and services, not the technology center. my concerning are is they are trading at really in high valuations there's a lot of good news priced in. yes, it has momentum on its side, but at the same time if you look at the inventory cycle and some of the leading indicators coming out of the u.s. and taiwan, that continues
to go downward the fundamentals have really emerged from the stock price performance and i think there's better places to invest money that are not trading as rich that are starting to build more momentum we behind them. >> such as >> i do think the software and services is still a good place i think that within the u.s. the home builder sector is starting to build up again and starting to get momentum behind it. i think that there's less cyclical risk that you need to take into your portfolio right now which i think takes advantage of some of the momentum that you're seeing build in the economy and build in the s&p and broader equity markets but that aren't trading so expensively and that don't have fundamental divergence. >> there's been a fundamental argument going on that technology is defensive in times of slower growth and then when you want to get cyclical as well, you want to be in technology explain that to me, please. >> i don't know that i can but i would say this i don't ever look at that as a
defensive area i think -- >> they are going to grow no matter what because they have succulent things going on. >> i don't think that matters. over the last decade or so, you see the microsofts and anales outperforming and why is that? they continue to find areas of government cisco and microsoft that have moved from one area, they have moved from where the puck is to where it's going that's the difference. >> that component of technology based on cap "x," some of the wear is dense fencive. i find it comical, you know, when we're categorizing what's going on here in the u.s. and the s&p. mike wilson said it the other day. the s&p is defensive clearly what we're witnessing right now in earnings is global
exposure is where you're running into the tumult. specific to the u.s., if you've got your revenue being largely derived here in the u.s., you've got the exposure, you've got the exposure to the u.s. consumer. >> that's the beginning of the story. >> why isn't the russell doing better >> it's a huge mystery. >> you know what, domestic companies and trade are domestic >> i'll let joe answer. >> because the preponderance of small caps are financial institutions as you've said before they have a silent partner over the last five to ten years, and i think that that's the struggle on a longer term investment basis for small caps, but just getting back to what i was saying before you've got the u.s. consumer which is just off the charts doing well i don't think any of what's going on here in the u.s. is defensive. i think it's the only place that you can really play offense, and
i think that's why you're seeing so many investments here. >> yeah. just getting a little bit geeky here to your point, exactly we've done tractor warnings in the market and there's high quality and moment mum, two things that have underpinned the u.s. equity market. >> u.s. stocks relative to the other parts of the world are defensive. >> absolutely. if you look at the sector composition, looking at defensives plus technology within the s&p 500 it's about 40% of the total index. >> sure. >> you look at it for europe and japan -- >> that's why europe stinks in your view. >> that's exactly right. if you look to your earlier question about why are small caps doing poorly? just in this quarter alone, if you look at the performance vice aye vice small versus large.
larger -- you're seeing the growth translate into terms of the actual fundamentals. large caps are outperforming and that's why you see the airline do better. >> many of them taking a hit southwest ceo gary kelly on "squawk" earlier talking about the impact of the groaned-of-grounding of the boeing 737 max fleet. >> our cost outlook is really unchanged for the third and fourth quarter, for the year except for the effect of the max, so i feel real good about the cost work that is under way. of course, we're incurring a huge penalty from the max being grounded and the same applies to the revenue. >> he did say that travel trends overall, demand is good. we're seeing the stock right now up 1.5%, so at session highs at this point steve weis, what do you think? >> so i haven't been to
southwest and been to united, bought more today pre-market not a big lift to unite, but there should be some lift. what continues to be good about this is capacity continues to come out of the market when they increase capacity and airlines are shrinking, partly because of the max, but, look, he's right demand is unbelievable load factors are unbelievable. the way you price things, if you try to use your miles, good luck it's not happen. they charge for baggage. they are in a better position than they have ever been and i believe united will get to 200 boeing is a different story. i don't know if we're going to go there next. >> go there. it's down again today. >> sure is. >> it was downgraded by wilf look, you looked yesterday and it started out okay and then it got crushed when they went through their quarter.
it's an issue, but at the end of the day, they will get this resolved maybe they rename the max. >> stick with it. >> you're saying stick with it. >> i'm sticking with it. >> what's going on with american airlines here, down 4% >> that took a beating for a long time i've liked it on the desk i'm in united with steve, but also in southwest. i think it's's turn is really amazing. we started off the day down a couple of bucks. >> i'll have two but now all of a sudden it's in territory they missed on the revenue but it still grew year over year and the earnings, doing an amazing job considering how much exposure they have to the max versus everybody else, it's amazing and says a lot about what the management team is doing at southwest. >> american airlines ceo doug parker will join "the exchange" for a exclusive cnbc interview that's at 1:30 eastern time. and here's what's coming up. >> back in the game, why it may
be time to buy activision blizzard the desk debates the stock in today's call of the day. plus, the trader blitz we're hitting live technologies, twitter and facebook over the last eight quarters alphabet's stock has an absolute move both earnings and trades negatively 62% of the time for more go to half.com/kensho "the halftime report" is back in two minutes.
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welcome to "halftime." i'm steve liesman. an update of where gdp is tracking for the second quarter. three data points, inventory, trade and durables and the tracking estimates on the street falling by 0.3%, down to 1.8%. that's exactly, by the way, the consensus for the number, the gdp number being reported tomorrow at 8:30 by the bureau -- by the bea here's some of the forecast, amherst went down by .5 to 2.3
barclays hfe, 2% and atlanta fed at 1.3 going down by .3% no data yet for the third quarter. the forecast is 2% this is what we're seeing him, somewhat of a reversal of the unexpected strength from trade and inventories in the third quarter. looks like the inventory rundown in the second quarter might be more sharper than first estimated. >> thanks for update green light capital announcing their new positions in their investor letter. >> they added new positions in dillard's and scientific games as well as chemours. einhorn says there's a sign the economy may be slowing and some
have become xlasents and for chewy that said those those who thought june was the pig kahuna, they went public in june 2019. he noted that chewy's market value is more than 30 times pets.com at the peak and said that multiple is quite high. among the biggest winners einhorn's tesla, short and long in gold and gm the quarter was up 7.4% through june. >> a couple of positions caught my eye chemuors caught my eye, whether it's being exposed to the lawsuits there, a spinoff from dupont and the question is how much did dupont actually now
when they are spinning off chemours about the liability there? >> a lot of claims against this company. we heard at the stone conference back in may larry robbins took the opposite side of the trade and was betting against chem 0 rs and einhorn says he believes some of the class action lawsuits will be in the millions as opposed to the billions which is what the bears have been really betting against. >> what about the chemours, it's really in this sort of class of stocks where they have a huge headline risk. don't know how to handicap it and people betting for and against. >> in the uk everybody is betting against it here's what will happen. even if it's in the billons they will announce it's in the billions, stocks will trade down and we'll do an offering, and then it's off to the races those things don't matter that much the events take years to settle.
in terms of his bet against institutional, you know, corporate credit he's made a fortune on the complacency of the rating agencies so he's going at it again so i don't know if he needs complacency to get there, but because you're at historical lows to. me it's just a waiting game when he goes. he could be waiting for a long time, however. default rates are not there yet. >> we waited a long time for tesla. everything seems to be paying off for him. >> that's true. >> all of these things happened in the second quarter. dillard's, last week on f-fun, really unusual activity. pull up the last ten days, two weeks ago, a huge spike on very heavy volume in dill yard's ard don't know, very odd check it out leslie picker, be thank you. bank of america says game on, the stock being upgraded to
a buy rating based on a 20% upside look ahead. it's our call of the day joe? >> take two interactive has been the place to be. on the back of grand theft auto and nba 2020 that continues to be the leader. the entire industry though, electric arts, activision, it's really right now facing the headwind of a lot of the free play, in particular what's coming from fortnite yes, can you make the case if that headwind is going to dissipate, then the best sensitivity to that dissipating headwind is going to be enjoyed in activision blizzard i am not sure. i'm not confident at all that that's the case, so that's where i think the content creation that take two is providing for you is where in a concentrated bet you want to be. >> quick trade in video games, pete >> yeah. this one makes a little bit of accepts to me because of the multiple being at the low end of
multiple years you look back and it seems cheap. they talk about the slates, i don't know about the slates. >> ask erin. >> probably a big gamer, but it makes some september to me now that it fakes a lot of calls. >> let's get to sue herera with the news headlines. >> hello and here's what's happening at this point. congressional democrats are pivoting away from questions of impeachment by saying they are going to own the august recess focusing on issues like healthcare and prescription drug costs. >> in the month of august our members will accelerate a drumbeat across the nation we will make -- we will own august for the people. we will own august and make it too hot to handle for the senate not to take our -- our bills >> afghan police say a suicide
bomber blew himself up in a bus carrying ministry employees. injuries several others and two other bombing attacks in kabul that killed another five people and a man who tried to cross the english channel on had a homemade fly board has failed in his attempt. the inventor owes journal i was cut short when he tried to descend for a refueling stop about halfway across the channel, but instead he ended up in the water but he did invent the machine so we'll see how he does the next time around. that's the news update this hour melissa, back to you. >> sue herrera. options bulls are betting on one chinese stock already this week that's next but first a check on all the s&p sectors. all in the red right now "halftime report" is back right after this tform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront.
halftime report. "options trading piling into a chinese e-commerce name we don't off talk about jon and pete over at the telestrator with that trade and more jon, kick it off. >> can't remember the last time we spoke about this, mel it's a $24 billion stock, however, pdd, a chinese e-commerce platform, and, in
other words, there's somebody other than alibaba out there pdd is up 3% pushing through 21. they were buying those, the 21 calls out there in october, so it's somebody that wants basically at the money and now in the money exposure for, you know, the next two and a half, three months i like that play, mel. i'm in them for at least a month, and i certainly like the upside if it trades back towards 32 which is where it was in march. >> i'm going to give you one, mel, an serious. this one is pretty amazing to me pause they are buying at the money calls now in the range as well they were paying 30 cents for the calls. essentially they are paying a little bit more than where the stock is trading right now to get the calls to get positioned in they bought over 12,000 of these calls. risk/reward. i love this, male. july 30th is when they have their earnings, if it goes down
to the downside you could be out 30 cents if it goes to the upside, these things really could explode to the upside, risk/reward i love it, i'm in it and will be in it through the earnings. >> thanks, guys. want to check on the market. nasdaq down a full percentage point and s&p 500 down by .75% and same thing for the dow jones industrial average so this is something we'll be watching. trader blitz is next more "halftime" right after this a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.
welcome back to "the half. taking a check on the markets because we're sitting pretty much at session lows the nasdaq is down 1.02% we're seeing pronounced weakness in the semiconductor sector. it's now down by 1.9%. this, of course, ahead of intel's report after the bell. intel with the semiconductor index overall hitting session highs before this report let's hit our trader blitz five stocks making headlines first up, alliant technology on pace for its worst day since 2007 weis >> the guidance wasn't good. sales are down to china. they are all straightened their
teeth and in the u.s. as well. it's seen as a constant theme. i would focus on the najarians you can sell plenty of braces to them. >> they have beautiful teeth. >> smile for the cameras. >> sorry, they also sell toupees. >> that is not right. >> rogain as well. >> stop, stop. >> joseph hogan will join jim cramer on "mad money" at 6:00 p.m. 3-m lower despite a beat on top lines. pete, you like this one. >> i do. initially it was a great day the stock was running and leading the dow to the upside and then it started pulling back, mel. they did beat, but the problem is their numbers weren't that great. you look at the forecast that was okay. the numbers generally though weren't impressive enough. i didn't understand early on why it was up as much as it was. now it seems to be trading above where it should >> home construction etf is up, on pace for its best day since
july, erin, your beloved builders. >> one of the bright spots in the market today certainly we got fundamental data which is pretty bullish, household rates suggesting it's coming out in 1.5 million. right now the way it's forming houses at 1.2 million, there's room there for additional growth, when they look at the earnings coming out, mayor damage and we've gotten decent reports out of lennar and polte so we're seeing some companies now start to focus on building up on the low end segment which i think is a great place. >> starbucks reporting after the bell today what could you like in this area, joe? >> i own dunkin and starbucks will have 70% u.s. exposure. cautious on china, but we know that and cautious on the comp. comps will probably be the best that we've seen since 2016, so
expectations are high here you could disappoint, but that does not mean you get out of this name just yet you need first the evidence. >> all right facebook beat on the top and bottom lines, as you know, and says costs related to new data privacy rules will slow revenue growth and raise expenses a long way. jon, you own this one. >> i did, and i still own the stock. i owned an awful lot of calls, and as it popped last night is mel, as you guys were on air i was selling when it was up, and now i'm very happy that i did. so i'm still in the stock, and now i've overwritten that with calls but all the calls sold stocks in the after hours last night and said adios. >> ten-year healed hitting all-time highs but first kelly evans in what's coming on "the exchange." >> tesla disappointing again and the stock is tanking as a result is it the end of the road for the stock as a growth stock? we'll speak with charlie grant and an exclusive interview with
cut could be in the cards. brian, what does this decision mean for global yields and how should they feel about next week's fed decision? >> it drives down global yields here when you look at german rates trading negative, if you've had any good credit rating, that means a sovereign country, your rates will have to follow lower because they'll want to clamor in the bond yields that affects the ten-year. it struggled to get above 1.2% it will continue to do that given this interest rate environment. the fed potentially cutting here in the united states next week will put downward pressure on that if it can get above that level, maybe we'll tick higher. until then i'll be waiting and seeing to see what i do with my u.s. treasury position >> does that make the ten-year yield more or less attractive? >> well, it should make u.s. bonds more attractive. i saw it make a higher high and lower low. it's been hanging out near the lows that's a technically negative
price swing and i think yields could be going up to 215 >> that does it for us thanks, scott and jim. more coming up on next week's decision and john stoltzfus coming up at 1:00 p.m. on futuresnow.cnbc.com. "halfti "halftime" back with your questions and final trades, next this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.
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another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life. ♪ get your usaa auto insurance quote today. welcome back take a look at the nasdaq 100. we backed off the session lows we're seeing the 100 down by a percent. tesla one of the leading stocks to the down side there
it's getting slammed, of course, after earnings pacing for its worst day in nearly six years. we've got a question from reisa in san jose. should you buy this dip? >> no. you're seeing the slow unraveling of a growth story now the tide is going out. they're not making money the promises continue, but the execution is flawed. and for a growth company, you take a look at any other quality company you don't see the continued turnover the latest being one of the founders so, no, i'd stay away from it. it's got a long way to go and the dreaded competition they've been talking about for years coming >> final trades, joe >> netflix buy it with a 305 stop stay with it raise the stop, though, to 314 >> united rental i bought more. starting to act well >> software services itb >> dr. j >> under armour. earnings next week tuesday next week. i bought calls today >> pete? >> disney.
we've been waiting to see options come into there. we see it today. large options buying up side the 145s this is a winner i own the stock. now i own the calls. >> thanks for watching the "halftime report." scott hopefully will be back tomorrow "the exchange" with kelly evans starts right now thanks, melissa. see you soon hi, everybody. here's what's ahead. it's a race to the bottom. europe signaling more easing, sending global bond yields to new record lows. is the world economy really this bad, and what does it all mean for stocks we'll get into that with the fed's own meeting coming up next week plus, the ceo of american airlines joins us exclusively. profits impress, but the company took a hit from boeing's max grounding. we'll talk about how southwest and american are dealing with this spiraling disaster. and spiked seltzer is bubbling up. the trend that's taking over parties and refrigerators across the country is giving big stocks a lift we'll have more on that in "rapid