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tv   Fast Money Halftime Report  CNBC  April 15, 2021 12:00pm-1:00pm EDT

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guys, i'm jumping the gun. i'm sorry. we won't pass just yet carl, if you are waiting for regulators to chime in, you may not be all that optimistic as we've been talking about throughout today's show, u.s. policymakers seem to be less willing to embrace cryptocurrencies than other governments around the world >> yep, that's definitely something to watch let's get to "the half." ♪ ♪ all right. carl, thanks so much i'm scott wapner, welcome to "the halftime report." surging past expectations, is all in on the roaring 20s trade the best bet for your money right now? we debate that jim lebenthal, brenda vinjello, pete najarian is here and josh brown as well. the do you w and the s&p hittin record highs on the back of the blow-out retail number take you to the wall, show you where we are now dow, 34,000, topping that today,
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the s&p above 4150 a strong day for the nasdaq. it has been above 14,000 there's yields, too, dropping actually 155. so that's the lowest level in more than a month, and that's the story we tell today. pete, it is a good one, too, right? earnings continue to beat. retail blows past expectations tech is leading today. yields are falling i'm told you are getting a little antsy and thinking about buying some protection in the s&p and the qs. >> well, when everything gets in comfortable and you mentioned the catalysts and why things are doing as well as they are doing, and for all of the right reasons, but that always makes me stand back and say, you know what i got to look at this thing and decide when i need to put on some of this protection. we are talking about a volatility index a month ago was trading close to 30 and here we are now about half of that so, you know, have we gotten a little bit complacent? maybe. but i think the reaction actually makes some sense because we've had nothing but good news, good news, good news for the most part.
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you talk about the retail numbers, those are outstanding you talk about a lot of what we've seen so far since earnings season sort of kicked off. those have been pretty powerful as well. we talk about energy we talked about all of the different areas in the marketplace that have been moving crude oil just the other day, yesterday was up over 63 so there's a lot of different positives right now i think in the marketplace, but i think that that is the time that you have to sort of sit back and say, i might need to buy some protection buy it when you can, not when you have to. when your back is against the wall, you start to panic, that's not the right time it is times like this where i think you have to take a look and that's what i'm doing. >> fair enough nasdaq is up 1% as we are talking about. josh, you know, we have been having this conversation, whether it is time to be bullish or cautious. you see that retail number today, and i think roaring '20s. it is the story you have been telling and everybody else has been telling for a while, and that's what it makes me think about, right people are going to go nuts this summer >> so in a typical quarter you
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have something like 200 million hitting people's accounts for things like tax refunds, et cetera in the first quarter of this year it was 600 something million, so a triple of just money being deposited to regular people than what's normal. that's how you get retail sales up 10% in addition to an all-time high for the dow, the nasdaq, also an all-time high for the ndx, also an all-time high for equal weight, s&p 500, and all-time high for russell 1000 growth commodities surging. if you are having trouble identifying the fact that we're in a bull market, there might be a better career for you to consider like amazon is hiring. this is not a difficult environment. so i think there's a lot of commentary and there are a lot of owe pipinions about things t never happened before. people seem to be so sure of when this ends, how this ends. i would point out very simply,
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if you focus on price action, which is the truth it doesn't mean price is always right, but it is the truth about what is happening right now, it is less difficult. we have blow-out economic data and the stock market has gotten the message. that is the big thing that think you need to understand. >> okay. >> now is it time to be optimistic or cautious you can always be both you don't have to lose your mind. >> of course. >> just because stocks are higher you said the market has gotten the message. you are 1,000% right the question is, is there more message to get or is it all in, right? things are good. we know that it is never a big secret, right? >> it should never be all in listen, i agree. it should never be all in. unless you are 20 years old and you are using money you can't touch for 45 years, the typical person watching the show right now knows better nobody is all in if they are and they're doing things like using leverage at all-time record highs, they're going to learn a lesson and perhaps they need to
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i think for most people the hard part now is to stay invested because everyone suffers from what is called the gambler's fallacy. it is a very well-known cognitive issue. it is a behavioral finance issue. lots has been written on the subject, and people think that the roulette wheel spins and hits red five times, the sixth time should automatically be black or the odds of it being black are higher and it is not how this works so i really feel strongly that if people commit to an asset allocation and accept the fact that things might get worse and then better again and then worse, like accept the fact that you have to live through that, that's a better answer than sitting here day after day after day, watching this market grind higher and sitting there in cash like, my moment is coming. that's now how successful investors should be carrying themselves. >> i don't know what we take from steve liesman's all-america economic survey because it tells
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and interesting story about how people view the stock market, whether now is the time to be in the market, nervous about the market, cautious about the market steve, you heard the conversation that we started to have, and i will get back to the committee in a minute, but tell us about these results they're pretty telling >> well, what we're seeing in terms of the outlook on the stock market, scott, is that the views on whether or not it is a good time or a bad time to invest are right on top of each other. we went back and made a chart of the last several years, and what happens, it is actually a pretty bullish signal, scott. you guys know this better than i would, but if you look back to december 2018, once again, look, there's a general optimistic or optimistic idea in the attitudes on the market. but when they get on top of each other, when that differential gets really tight, the market has done pretty well thereafter. sometimes it gets pessimistic because you have, for example, a change in administration that's happened before
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you have your republican and democrat split you also have the market crashing and then they get pessimistic and the market intended to come back. so it is just one thing to look at, scott. 37, 36 is about the tightist split we've had going back to 2019 december 2019 was pretty good right then or september 2019. sorry. >> yeah, stay with us, steve jim, i agree here. you would take it as a bullish signal you don't want everybody on one side of the boat this tells you that not everybody is, that there is some caution to be had even though the environment plays bullish. >> i think your assertion is right, scott, but my -- the degree of its importance to me is relatively low. the reason -- there's several reasons for that one, the surveys are quite often -- maybe not from steve, steve's is special, but you get the bull/bear surveys so often and they change so rapidly it is hard to determine the signal from the noise
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the other thing, and this to me is very important, is it doesn't say as much about time frame i want to illustrate this with an example you know, you and i have talked about apple and the large cap tech sector a lot over the last month. you know i'm bullish on it, right? yesterday apple and the large cap tech sector were down big, and i was thinking about at the end of the day, am i wrong, do i suck no, the answer is no, i don't. the answer is that is total noise. it is total noise. it has nothing to do with anything, for does it have anything to do that it is up 2% today. you have to have a longer term time frame if you are me, if you are me, now maybe there's somebody out there who is great trading daily, you know, large cap tech up 2% today, was down 2% yesterday, i have yet to meet those people i haveyet to meet them the long-term prognosis -- >> they're on twitter. >> -- is bullish for so many reasons. >> yeah, as jim was talking about himself, i was having these stewart smalley flashbacks we can discuss that at another
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time >> let's be clear, i am bullish. >> you know, i know you are. your lack of cash relative to where it has been suggests that, but i think steve was on to something when he suggested that the results of his all-america n economic survey were bullish brenda, right, you don't want everybody on one side of the boat, as i said. the vix is incredibly low. now, it is not as low as it was when it was below ten, which feels like eons ago, but it is low enough to make people feel that there's maybe too much complacency and too much euphoria steve's results, brenda, would suggest that there is not. >> yeah, i think, you know, regardless of where sentiment is, and i think sentiment is mixed. you know, a lot of people are looking forward and saying, what does it mean that we're accumulating all of this national debt and when is that actually going to start to hurt or are we going to see inflation
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pick up. there are certainly a lot of concerns out there i think when you look at where the money has been flowing to, it has absolutely been going into the equity market i think over the last five months has been more money poured into the equity market than we saw over the last 12 years, so it is very significant. i think it is a sign of the times, especially given how low interest rates are, where there just aren't very many other opportunities. of course, it is against the backdrop of what is going to likely be a pretty tremendous period of economic growth. so i think though to jim's point, there are some opportunities. if you look within large cap tech, as much as everybody has talked about the cyclical trade, there are some opportunities that i think have developed there. many companies and stocks have underperformed the market by 10% or more this year, so it is not that every boat is rising. it actually is pretty tremendous that the market has done what it has done without the participation of many of those large cap stocks. >> even, steve, you know, with the negatives that the fed chair, for example, brings up of
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the dislocations in the employment market and the fact that the virus is still a threat and we still have to vaccinate a lot of people and the rest of the world doesn't look quite as good from a vaccine standpoint as the u.s. does at this juncture, he's incredibly bullish on what the economic outlook is. >> yeah. >> at least in the near term, because he knows growth is going to be incredibly strong because of all of this pent-up demand. >> scott, this is my favorite day since the pandemic began that's a big statement i will tell you why. seeing that drop in jobless claims this morning, down into the 5 million, you know, with a five handle on it, i was really getting nervous as to why that number was up week after week. i think we have seen that that number, the prior two weeks were a bit of an anomaly there. now we have jobless claims coming down. really strong retail numbers, and i think those numbers, by the way, could get stronger in the months ahead because of the timing of the stimulus checks, by the way, were kind of tilted towards the latter half of the
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month. so we may get strong numbers we have high savings rate. our survey also shows that people use the money to pay down debt and put it in the bank, so that's another piece of positive news from the general public that underpins, i think, the economy. then what you see is, whoa, surprise! the economy is roaring and companies are making profits that are beyond what we thought. if you thought that the companies that you all invest in so well are not exquisitely geared to extract profit from a growing economy, well, then maybe you ought to be working with frances and living in a van at amazon. >> josh, i wonder based on all of this how selective i really need to be when i am thinking about what kind of retail stocks and recovery stocks and travel and leisure stocks that i want to own right here, or do i not have to be do i just feel free to buy a whole lot of those stocks because of exactly what we're talking about now?
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>> scott, this will be unpopular, especially on this program, but i'm going to say it because it is the truth and you guys know that's what i do actually, it doesn't really matter at all in this environment. every day there's another group that's leading the rally higher. you really can't find -- now, if we're talking about outperformance, yes, it matters. if you are getting measured every quarter, were you in the right stocks over the last 90 days, it matters, but that really doesn't matter for most people in real life. what matters is participating, and really it is very hard to find names that are not working. i think 93% of the s&p 500 is higher over the last year. so the big picture thing that we're speaking to investors the most about right now, like we hear from dozens of families every week, come to us, i like what you guys have to say but i'm worried now is the wrong time to invest, look what the market just did. i understand that feeling. over the last 12 months the s&p 500 is up 75%.
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it is the best 12-month period in a long time, and so we ran the numbers. go back to 1950, 70 years worth of data. what happens to the s&p 500 after it has gone up 50% or moreover moreover the last 12 months. the truth is over the ensuing three years it has never been down, over the ensuing five years it has never been down so a one-year rally of this magnitude has not historically been a bad time to be investing. in fact, the average three-year performance is 42% after a huge rally. >> i sure hope not. >> so just focus on being in. >> i sure hope not because the data that schwab had out today, they added 3.2 million new brokerage accounts in the first quarter. that was more than all of 2020 okay now, granted 2020 sucked, right, we were going through the depths of the pandemic. however, retail is in, steve
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the retail investor has joined this party. >> hey, scott, can i -- i don't like to contradict the judge it is not very good court decorum here, but let me just for a second here tell you that only 51% to 52% of the public is invested in stocks you may say retail is in, but by every measure that's out there, there is a very, very long way to go. in fact, i have done this survey, scott, for i don't know how many years, a dozen years, maybe more it is very sad to see people who are not invested, they do not feel and see the benefits of an improving economy the way those who are invested in stocks do. we have two groups those with $50,000 or more in the market and those with lessor none at all. inevitably, the people who have money in the market -- and this is over a 12-year period -- have better outlooks on the economy, better current assessment of the economy, better outlooks on
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their wages, better outlooks on almost every aspect of their lives. >> called the wealth effect. >> it is called the wealth effect i know it is not a sound idea for this group but you ought to look at the numbers i am looking at from the general public they are not invested, scott maybe the existing group is more invested, but the broad swath of public is not invested in stocks. >> of course very well understood i'm glad you raised the point. it leads to a broader conversation we just can't have now obviously about income inequality. >> fair enough. >> and all of though issues we care deeply about, but when we are focused right now on the fact you have new highs in the dow and the s&p, the robin hood crowd over the last year getting involved in the market that's a new swath of retail investors that's interested in stocks the schwab number is eye popping, for certain steve, thank you steve liesman with his survey giving us something to chew on
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let's, pete, get down and dirty with some names, right josh says you really don't have to be that selective do i want to go out and buy the casinos on this retail number? do i want to buy the airlines? do i want to buy the hotels? do i want to go to best buy and walmart and target and starbucks and nordstroms and macy's and all of the stocks that had nice runs for the most part over the last handful of months >> i think there are certain names that make more sense than others to josh's point, there's a lot of names you are basically throwing it at the wall and saying, you know what they're all going higher, and he is right but i also think you are looking for select names and you are talking about quality name when you are looking at the quality names, you're looking at names that they've done really well last year and can continue to do extremely well, i think, this year. i'll give you names like casey's general store. now, it is not an exciting name but it is one of the names that i bought just like a year and a
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half ago or something, and it has done amazingly well. part of the reason is because it is sort of in that world of sort of essential but it is not they've got the store inside when you are going up and filling with gas and the rest of that target is another one where we talked about how sticky they were, and all of this great momentum that they had gotten during the pandemic but was it going to last. then a lot of people were saying, well, that was peak earnings they continue to do their partnerships they continue to add on to their stores in a store-within-the-store sort of a model. i think it makes sense and i think they're inexpensive. i look at walgreen's boots this is another name, take a look at what it has done year-to-date there are names out there, scott, that i think can outperform by a large margin many of the other names. now, obviously, you know, it is not going to be completely easy, and i think josh is right to say that there are a lot of names that are going to do well. there's a lot of names in retail that are going to do well. but you also want to have the quality names that make sense, and when you look at them
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fundamentally they are in a great position on top of what they are doing with their businesses to go forward abercrombie is another name we talked about just last week. i think there are names out there like gap stores that can really move to the upside and continue the move to the upside because of how they've positioned themselves over the last few years into the pandemic and what they're doing with ecommerce. those are the kind of names that i think will be the outperformers over the names that are just performing. >> i'm just thinking, you know, yes, we have a lot of ground to make up from a johbs perspective you did have a million this past month. steve liesman made the point with us, maybe it was yesterday or the day before, you still have to have a million a month for eight months to get back to the numbers that we need and hope and want to get to. but as the employment picture improves -- >> what happened, man? >> -- and you have the pent-up demand, jim lebenthal, i don't understand from the notes i'm reading here,
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it says, i'm not interested in retail right now why not? >> well, so i do pay attention to price while i think we will all agree on being bullish on the market overall, there are sectors that are more attractively priced than others. so, look, i have said enough about large cap tech it was beaten down that was place to invest i look at even the stocks i'm in, right, walmart, home depot, tractor supply my new position in tractor supply, which i love, but i look at that price and this is not a days, and i look at that chart, that i want to go out and load up on retail these stocks have already priced a lot in they are likely to consolidate their gains for a while before going higher so what has already consolidated gains and is ready to go higher, mainly the industrials that includes gm, that includes cleveland cliffs, boeing those stocks have consolidated they're ready for their next leg higher it is true, you can just invest in the market. that's not what i do i am selective
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i look at retail look, dick's, i was in dick's this past weekend. the line was almost literally out the door and i look at the stock price and i say, yeah, it is reflected i'm not the first person to see that so i got to wait for weakness in retail to get in there. >> brenda, does that -- >> can we talk about amazon. >> let me let brenda get in and then i will get back to that brenda, why don't you tee us off on that. you also own amazon and we can get josh in to back you up. >> sure. there are opportunities still in retail if you look at tjx, it hasn't fully participated with the market they've been suffering from store closures in europe, but i think it is temporary. as we start to see reopen happening more meaningfully, it is a place where i think people who love to shop will gravitate to they should have exceptional inventory quality this time around given there's been so many disruptions so that's the type of name that we think will continue to work
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and continues to represent an opportunity. we also think that amazon represents an opportunity here it also has not participated this year in the market rally. we continue to think that they are going to gain market share across the board they're really not specific in one particular area of the retail market, but just will rise as they continue to gain market share to online so that's another area that we think is interesting. >> all right that moves right into josh who wanted to talk about this. josh. >> yeah, i don't even understand we're 22 minutes into the show and we haven't spoken about amazon, who just told us this morning that they added 50 million, 5-0 million prime customers. so you want to talk about retail this is the whole ball game right here amazon told jeff bezos in his last letter as ceo this morning, which everyone should read as soon as this show is over obviously, but just told us 28%
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of prime users are buying something in less than three minutes or less when they hit the site on average, about half of them finish their purchase within 15 minutes. so when you compare that to any other retail experience that you could possibly imagine, it is very clear that if you want to have exposure to the consumer who is now spending again with abandon as though there was no pandemic, this is the way to do it amazon has not really done much over the last year in fact, it is still negative from its peak in september i want everybody to pull this chart up this is textbook consolidation after massive gains. the stock has been building a base going back to september 9th. it is not quite at a breakout point yet, but when it gets back to that level, what do you think happens? you think it is turned away at that level i don't. i could see this stock taking on 4,000. so like we could talk about all of these different miniature
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consumer plays, these like little retailers, or we could say, what is the real big picture here 200 million prime users, up 50 million from this time last year unbelievable situation for only one publicly traded company, and that's amzn. >> this was part of this september stallout in the faangs and, yes, it has picked up a little bit but to your point, it hasn't gotten going -- >> it is right there. >> yeah. it hasn't really gotten going the way that an alphabet has because of the reopen play there, right apple started moving again, but, josh, it is not the only way to play it or you wouldn't be in simon property group, right? >> agree i own other stocks that have exposure to the consumer, but i'm looking at this stock, it wants to approach that old high of 3,500 after this much time consolidating, taking out sellers, new buyers coming in, people upping their position, there will be no sellers above 3,500 because nobody will have a loss in the stock.
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understand the behavioral psychology involved when a share price consolidates for six months, eight months, and then gets back to those levels. i would just look at this as being a primary way to invest in the resurgence of the consumer and probably a lot more interesting than a lot of the other names that we can look at. >> it may be more interesting, pete, but, you know, i'm wondering where else you can make some money in this space. like you have been invested in the casinos before, in some of the airlines like delta, which we heard from today, some of the hotels in the past what do you think of those stocks in the here and now >> i think that they do serve a purpose that is going to be a great gain, i think, over time, scott. a lot has to do with, you know, they will have to deal with the different bumps in the road we're continuing to see every single week still. i mean take a look at what is going on we were so excited about vaccines and we had a little bit of a hiccup obviously. because of that, that sort of
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gave people a little bit of a pause once again but that doesn't mean that these names can't come back and different segments and sectors can't come back. i look at airlines and casinos and all of those type, the hospital area, the hotels as well, they do have a real chance to be in a great spot, in a great position to go a heck of a lot higher it might take a little bit more time might get people to the point where maybe we are talking more in the summertime. maybe those are second-half-of-the-year type names. i don't know where i lost signal before with you, but i will tell you there are a lot of names in retail it is not just one single name out there. there are many names out there that you can get that i think gives you a diverse side of things, where you can still say, "you know what this name has run and yet it still looks like a quality name that's not overpriced. those are the names i think you have to stick with. >> there's this other amazing -- you mentioned vaccines, and we are talking about the reopen, recovery and all of that stuff an incredible statistic out
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today that maybe the most important covid vaccine news of the week if you really focus on it, the cdc identifies only 5,800 covid-19 infections after the final vaccine out of more than 66 million. those who did get it had mild cases. we are talking about 0.008%. 0.008% if that doesn't say go get a vaccine, i don't know what does. we'll take a quick break check out this chart the stock has surged over 200% in a year. we're back after this. these days you have to keep everything moving and reinvent the wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm.
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bounce forward, with comcast business. all right. we are making some moves and we need to talk about it. brenda vingiello i will come to you first you sold -- pete is not going to be happy with this pete is not going to be happy. you sold pfizer. tell us why. >> we did sell pfizer. i'll say, you know, we are so thankful for everything the company has done in terms of the vaccine, and that's obviously a big -- they've been a beneficiary of that this year. i think there are certainly questions about what comes next. when we looked at our own portfolio we have other pharmaceutical exposure and decided in this case to sell pfizer in favor of buying striker. we don't have a lot of exposure in our portfolio to medical devices or med tech and striker is more of an organic growth story in our view than pfizer. we also think they will be beneficiaries of reopening and more people who are going
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through this elective procedures they participate in so long that have been delayed, people are waiting to get vaccines, they don't want their knee replaced or hip replaced and spend time in a hospital right now. so i think this is not only a great organic growth story over the long term, but in the shorter term they should also benefit from a real pickup in procedures. >> okay. you bought striker as well. >> that's right. >> tell us about that. >> so that's what i was just speaking of. >> i'm sorry i'm sorry. >> no problem. >> my bad. >> yes. >> sometimes that happens. all right. let me talk about -- hello let me talk about coinbase for a minute because, remember, joe t. mentioned it yesterday as we were talking about the direct listing. he said he wanted to buy the stock at $320. he did get filled on that so he's good on his word there. joe t., joe terranova is in coinbase so we'll keep an eye on that as well where are we going now we're taking a break we're doing crowdstrike now. i'm back with you.
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crowdstrike got initiated by deutsch bank, the price target, saying it is in the sweet spot of cybersecurity josh brown, you own it i apologize, i was a little distracted there i was reading something. now i'm back with you. >> what were you reading, like "architectural digest" listen, i think this is an important research report because they're talking about the total addressable market for end point security being like $35 billion over the next couple of years the incumbents in this space are dead meat. crowdstrike is picking them off one by one i have been pounding my fist on the table on the stock since $120 i'm not telling people to run out at $211 and load the boat, but you did have a big opportunity during the, quote, unquote, tech wreck. the stock got as low as $173 the thing with very expensive, very high-growth stocks like this is they're not for everyone and you will have to live through the drawdowns to ultimately make money and not
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everybody can do that, or especially not with a large amount of money on the line. it is hard to do this is going to be high beta for a long time. it is a $45 billion market cap nowhere near that in revenue so if you are aware of that going in however, which i obviously am because i'm saying it, the reason to put up with that level of volatility is this this company probably has the opportunity to become the salesforce of cybersecurity. this could be one of the most important technology companies and platforms in the world, and as the hacking gets increasingly more sophisticated and increasingly involves state-sponsored hacking efforts from countries that are not our friend, crowdstrike's product further distances itself from every other product out there. that's why they're winning so many fortune 500 companies, government agencies, et cetera so i understand the trade-off here between the risk of buying
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an expensive stock, but the potential upside, i'm thinking about this over the long term and i am sticking with it because i think they're doing an incredible job all over the world. >> okay. that stock is just ripped. wow, 27% above current level is what the new price target is of 260. >> be careful. >> no, we hear you that's good advice rahel solomon with us now. >> two calls in the chip space from a ramon james note. first up, nvidia trading at all-time highs the target here goes to 750 a share. despite the chip shortage, firm likes nvidia supply set up, in longer term they feel like nvidia's ai success gives them a permanent seat at the table. jim cramer referring to the ceo as the di venn chchi of our tim. the new ceo is capable, the
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pursuit of trying to turn around manufacturing issues and return to dominance will cause them a lot of pain in the process scott, that's in terms of cap x and lost market share, plus a shifting landscape and data center will make the industry less dependent on intel, the stock is up about 30% this year. back to you. >> appreciate that very much we will get to nvidia in a second pete -- >> yeah. >> -- sell intel in some corners. this is market perform at ray jay. they got under perform excuse me, under perform. >> right well, when i look at intel, scott, i am still seeing the same company we just talked about about a week or so ago, which is pat gelsinger has done an outstanding job of navigating and getting very clear with everybody exactly what they're going to be doing. you talk about cap x, this is a company that is going to put up a $20 billion plant right down in arizona how about the idea they had $21 billion in free cash flow last year i think this is a company that
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just continues to -- they have had their issues there is absolutely no doubt about that but if you just look at a year-to-date chart it sort of says it all. this is a stock that has continued to move to the upside. it has had a really nice move. it has pulled back with the nvidia news and so forth getting into the competition, but let's not forget that is out there a couple of years as well. along the way they will be building and will be doing everything that pat gelsinger views as where they need to move to over the next couple of years as well. so it seems like nvidia gets a little bit of a pass where intel everybody wants to slap down i continue to own this company trades at about a 13pe i still think that there is plenty of upside, even though the stock was just sitting at multi-year highs just a few days ago. >> okay. brenda, nvidia >> yeah, i would agree with what pete just said in that, you know, nvidia's announcement they're entering into intel's cpu market makes for a great headline and everybody loves to
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pick on intel. but i would say that it is going to take a while for them to really build out that capability, and, as pete mentioned, meanwhile intel is going to be building out their capability as well and more capacity so i think nvidia continues to be well positioned i would agree with the analyst's view on nvidia in general. we own both nvidia and intel, i would say, as kind of a barbell approach we put into place during march of last year. but we've become more and more positive on intel over the last six months or so and really think that the ceo change has been a good one. >> yeah. well, certainly has got a lot of talk, we know that all right. we will take another quick break. we will come back. the dow tops 34,000 for first time ever. we will talk about some of the stocks that have led the way there, how you play them from here, and we will do it next
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. ♪ ♪ welcome back to "the halftime report. i'm rahel solomon. here is your cnbc news update at this hour. both sides rested their cases in the derek chauvin chiel for the killing of george floyd. chauvin invoked his fifth amendment right not to take the stand. the defense wrapped up after two days of testimony and closing arguments are set for monday house speaker nancy pelosi says
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she does not support a proposed bill to add seats to the supreme court. pelosi says she will not bring the bill to the house floor. instead, she prefers that potential court reforms be examined through a bipartisan commission proposed by president biden. secretary of state anthony blinken has made a surprise trip to afghanistan to help sell the country's leaders on plans to withdraw allied troops, ending america's long ebbs war. in bosnia, a friendly deer cub has taken an interest in soccer the family found the cub when he was just a baby and decided to adopt him. his moves have made him an attraction in his small village there and he has quite the moves. scott, back to you. >> rahel, thank you again. we mentioned the dow hitting 34,000 today, a new record high. wanted to go through some of this year's biggest winners because, jim lebenthal, you made an interesting point earlier when we were talking about whether the so-called roaring '20s strayed would be a boon for some of the retail and travel and leisure stocks, you said to
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take a better look at the industrial or dow-type stocks really that have already gone through a little bit of consolidation and, thus, would be ready for the next leg higher rather than having to wait to go through that names like boeing, which are up -- writehich is up 17% year-to-date, sisco, 3m up almost 13. tell me more. >> i think general motors is in there as well, or maybe it was kicked out of the dow, scott i can't remember it has been in and out i think the general point here, and, you know, josh was aleading to this with apple and amazon, consolidation goes on. sometimes it can go on for a long time. i have a feeling that what is going to kick these names out of their consolidation phase is the earning season that we're in right now. steve liesman actually alluded to this as well. that, you know, the earnings are likely to surprise for all of the macro economic effects that we are talking about so as these companies in the next few weeks come through their earnings, i would expect a little altitude for boeing
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i would expect sysco, which has been breaking out, and we have talked about that, if it gets one good quarterly report here i think it is going to shoot higher if it doesn't get a quarterly report, then it is still in the penalty box but it is more likely for all of these earnings are what propel them out of consolidation. >> josh, you agree with the whole thesis, i guess, that jim has put forward, that those, more the industrial-type stocks are the ones that you should take a look at here if you are thinking about boom rather than some of the, you know, consumer names? >> well, back to my original comment on the nature of the environment we're in, there are days where you are going to feel like a genius if you are overweight industrials, but then the next day you feel like a genius if are you overweight some other sector, financials or technology so it is really incredible to have this many industry groups all working their way higher at the same time. so i don't think it is necessary
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to make an all-in bet, but i do agree with jim that we are in a moment where economic data coming in ahead of expectations is rewarding shareholders in stocks that are directly related to the economy the last thing i would say though on this, if you actually look at -- if you actually look at like the weightings and the dow, the biggest weighting has nothing to do with the economy it is united health. it is 7.5% of the dow 30 because of where its share price is. remember, this is a price-weighted index look at that chart who cares if it is an industrial or not it is pristine it is like a perfect chart working its way higher you can find a lot of those outside of economically cyclical areas. so i just want to round up by saying, like, don't feel like you have to get the sector right. that's not what is going on right now. >> yeah. brenda, if there's a name you would buy -- and you sort of alluded to it earlier within the technology space, it is
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salesforce. >> yes you know, i think salesforce has really been suffering from concern over slack dilution as well as just overall, you know, sentiment over the whole group i think of large cap tech. but this is a name that i think is going to put up a tremendous quarter this coming quarter and is really well-positioned and it has not participated in the rally that we've seen. so i think this really does represent an opportunity to get in and add some exposure here for anybody who doesn't already own it. >> the stock is getting a nice lift today, about 1 3/4 percent. dow is back at 34,000 again today, a new record high for the dow and s&p. we have more trades ahead including "pete's unusual activity." we will do that in two minutes the visionary lexus nx. lease the 2021 nx 300 for $349 a month for 36 months. experience amazing at your lexus dealer. sales are down from last quarter lease the 2021 nx 300 for $349 a month for 36 months. but we are hoping things will pick up by q3.
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services committee on may 27th no specific topics have been listed so far, but i would expect that this hearing would encompass the recovery from the pandemic, ppp, aid to homeowners as well. we have reached out to the relevant chairmen of the committees and have asked for a statement. we will bring you more as we have it. scott. >> ylan, i appreciate it pete, unusual activity what do you have for us today? >> yeah, i'm going to start off with dr. pepper, scott it is not a name that comes up off, but it is interesting in february there was a buyer buying the april 33 calls. they did well on that trade. they're selling those today and going up and buying the may 36 call they still want to be in the stock, buying about 12,000 of those calls. they're going between 1.05 to 1.10 that stood out that's a nice, big trailed, 12,000 contracts we don't see that as often as we once did i will tell you this on top of that we had kratos,
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that's detense security, all of that the may 30 calls, they bought them for about 1.05 up to 1.30 it doesn't encompass the earnings which explode to the upside and make a big move over 30 in the short time frame. >> pete, thank you we'll be right back.
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we are back. we just got our hands on a new
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letter, an investor letter from greenlight capital run by david einhorn dated april 15th, today. says they only made a handful of portfolio changes and essentially broke even but he does address a few interesting and notable issues number one, he asks and answers the question as to whether the tide has really turned from growth to value. he says, we've only just begun a recovery and has a chart sort of to back that up. he talks about inflation, believes that it's only going one way. and that is higher and then he has some pretty hardy criticism. he addresses the gamestop short queez and criticizes pattia and elon musk both for their appearances on tv at a critical moment and saying that -- elon musk wasn't on tv but pattia
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was. specifically, he says, he controlled sofi, which competes with robinson and left with us the impression that guy destabilizing gme he could harm a competitor as for mr. musk, if regulators wanted him to stop manipulating stocks they should have done so with more than a slap of the wrist when he manipulated tesla shares in 2018 there is no cop on the beat, specifically calling out the s.e.c. it is always interesting, josh, when david einhorn opines on things crit channeloff and the gamestop thing. david has been a short seller throughout his whole career. he has a vested interest in that
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sort of didn't that was taking place within the market at that period of time. >> yeah. for the last 12 years i read every letter david has ever put out. i have a lot of respect for him and always take his view but i am not sure on the time horizon. like, i don't even think the sofi thing is closed and it may or may not have even been announced when the gamestop thing happens. but i am not 100%, so don't go by that. but that seems like a stretch. i feel like there were a lot of internet celebrities who just wanted to be involved in the uproar over gamestop and some of them were placing trades for fun and making light of the situation. i don't -- i don't know. i mean, it's -- maybe it will come out that there was more to it i just feel like it was more casual than what mr. einhorn is applying. >> what about brenda this notion that inflation is only going one way, and that's higher, and his belief that you are pretty much at the beginning of a recovery
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in the value trade, a suggestion he seems to be making here that, finally, after at least a decade of underperformance, there is some runway ahead? >> yeah. i think you can -- i agree with that argument that we could certainly see value continuing to perform well, particularly given that those businesses just haven't had the wind at their backs for so long. and if we do enter a period of significant economic growth and i go can't infrastructure spending not only here in the u.s. but globally that many of those companies could be beneficiaries. >> all right teal take a -- >> okay. >> go ahead. >> sorry those companies could certainly be beneficiaries. but the inflation question is a good one, i think if there ever was time that we would see inflation, it seems like it should be in the imminent future stimulus globally, central banks have been trying to stick to
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facilitate more inflation for more than a decade so they have certainly put their best foot forward in terms of committing dollars to that so i think we will probably start to see inflation pick up a little bit here. >> okay. we will take that break and come back with your final trades next the rx crafted by lexus. lease the 2021 rx 350 for $439 a month for 36 months. experience amazing at your lexus dealer. we made usaa insurance for busy veterans like kate. so when her car got hit, she didn't waste any time. she filed a claim on her usaa app and said, “that was easy.” usaa. what you're made of, we're made for. usaa.
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final trades brenda, you are first? >> apple it has not participated at all this year, up less than 2% for the year, still a high quality company poised to have excellent earnings growth. >> farmer jim?
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>> northrup grumman. been talking about it for a while. it continues its breakout. >> all right josh >> nvidia. new all-time record high going higher >> all right pete >> esx i think it is going higher, buying in there. >> dow and s&p at new all-time highs once again the exchange starts right now. >> scott, thank you very much, and welcome to the exchange, everybody, i'm tyler mathisen. here's what's ahead for this next hour. follow the dollars an exclusive look at how stimulus money was spread out among marns and where many of them spent it. plus, copper, the new oil. that's what goldman sachs's jeff currie says as we move into a more ecofriendly world he will join us to explain that one. and throwing down the gauntlet, mercedes-benz goes after tesla saying its new ev sedan will beat tesla's


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