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tv   Fast Money Halftime Report  CNBC  April 22, 2021 12:00pm-1:00pm EDT

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full grasp of the issues >> carl, that is a really good illustration of sort of how inflamed tensions have become on both sides jon, i wonder, does the average user care about this stuff we keep asking the question here on "techcheck" and i guess it is an answer for regulators. >> no poverty wage at amazon they're starting at $15 an hour with benefits, carl. >> and if you get stock it is a totally different story. intel and snap tonight let's get to the judge ♪ ♪ all right. carl, thanks very much welcome to "t"the halftime report". i'm scott wapner front and center, the road for your money whether to be cautious or bullish on stocks. why tom lee says it is the latter we will debate his call, we will debate the markets with our investment committee joining me courtney gibson is president of luke capital markets. sarat sethi is with us josh brown rounding out our investment committee today let's go to the wall as you see, s&p and dow are negative dow and s&p are on pace to break
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their four-week win streak nasdaq 100 having its worst week since march 5th. courtney, i've got scott minerd, he thinks we will get a near-term pull back. why do you say uh-oh >> i'm always ready for this. >> jonathan skkrinsky says we could go down to 3950 on the s&p. i look at what you are doing in your portfolio, you sold target, you trimmed apple, you trimmed walmart, you trimmed blackstone, kkr and bank of america. if that doesn't say cautious i don't know what does >> well, it does, scott. so good to be back with all of you guys, i have missed you. you know, it is kind of interesting. as you know, scott, at loop capital markets we cover investors large and small. a lot of the trends we saw in particular on our equity desk over the past couple of weeks was the supposed smart money i do believe our clients are smart, by the way. has been trimming. when you think about where we
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were a year to 13 months ago, we were at substantial lows i mean when you look at a target -- and i want to be very, very clear on what i did with my portfolio. i wanted to hedge my risk just a hair at this point in the market, right. so i do believe in target. it is one of the places that candidly if this thing dips down a few more bucks here i will jump back in because i believe in the long-term story of target, i believe in the leadership of that company, and i believe in how they've pivoted. but i was up over 100% in a value name, right. i think it was just time for me to take a little money off the table. the same thing for the other companies. i want to, again, be clear to the audience that i believe when i bought them and i believe today in the management companies, in the strategies of all of the companies that i trimmed. i am still in many of them when you look at a blackstone, when you look at a bank of america, a citibank, walmart, for example, those are names that are long-term names you can
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keep in your portfolio i trimmed them just simply because of the amount of return that i received on those names, and i wanted to henldge my long-term portfolio reach. i am prude but still cautious on this market. >> i got you josh, part of the problem here shh that you had a lot of stocks in a lot of sectors go up a lot. like kourtney, others are sitting on big winners and thinking, okay, maybe it is time to be cautious for the near term i have names, and, you know, i'm talking across the growth end value space for the last six months your crowdstrike, for example, is up 64% in that period some of the gains are double that, close to that, across the board, snap, palo alto, etsy, square, plug power, draft king is up huge then you have some of the value reopen trades like the airlines over the last six months which are up a lot, the banks, the casinos, et cetera what are you going to buy if so many things are up so much
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>> well, i mean i can give you a whole list of things that are, you know, 10% or 15% off their highs. so like that's a great list that you just reeled out, but there's a contrary to that i can show you any market capsize you want, any sector you want so i think there is enough dispersion for you to be able to find opportunities i would just say one of -- look, i talk to young investors all over the country one of the biggest mistakes that i see people making is thinking that they always have to have a new trade or thinking that they always have to have a new idea or that, like, taking action in their portfolio every day is, like, going to help them in some way, shape or form it might be fun, but that's not actually what you need to be doing as an investor i think there's absolutely nothing wrong with being in your winning stocks and not just selling them because they went up a lot or, even worse, because they just had a bad week or two. so a lot of the same things, scott, on the list that you just named have been working for a
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long time, longer than six months even. so i just look at the market overall and i see that every day there's a new leadership group today it is retailers. take a look at gap stores, gps stealth, right but breaking out to a new 52-week high kanye collection coming out. a lot of exciting things new ceo there took over, came over from old navy where she rescued that brand that stock continues to work it has been working for more than a year. macy's is now breaking out dick's but today they're really exciting so that is -- i think that is what you want to avoid doing, like what is the strongest stocks today, let me get really involved in those. i just think you want to be diversified and you want to understand that on any given day you might be envious of another space, another stock, another sector. >> sure. >> but stick with your winners, and they continue to work. look at microsoft, new ll-time high today. >> yeah, no, i hear you, but,
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you know, steve, one of the principle arguments in the market, and i frankly think it is the most relevant one right now, is whether we are supposed to be cautious or bullish. i read you the big names at the top of our show who every day now are coming out saying it is time to be cautious. i'm looking for a pull back. stocks could do this, that or the other thing. but then i have so many positive signs to hang my hat on, that i could easily make a case where you should be bullish now, easily rally's broadening out, josh said it. undeniable earnings are good, undeniable. covid cases are falling, the vaccine uptake is rising there's so much liquidity in the system and the fed is on hold for a long time. if i gave you all of those, you would come back probably and tell me unequivocally reasons to be bullish in the market the only thing that counters that is, well, we've been up a lot and we factored in a lot of the good news. so where does that leave us? >> so first in regards to
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everybody who you quoted and their cautious view in the market, at any point and any time we've seen it over the last few years through the entire bull market, the market can give you 5% and 10% corrections at any point in time. if you don't expect them, then you shouldn't be invested in the market because you are in the wrong game so that's nothing new. there's one more bullish point which you didn't mention, but it sort of dovetails with the fed being on hold, is that the bond market believes the fed. take a look at the good economic news that we've had coming out take a look at claims today. ten-year yield is down, and we've also had, again to being rational, we've had rationality return to the market in terms of taking those super high flyers and bringing them down and not revisiting them in terms of looking for another major leg up so to me it is never about markets. it is about stocks i can tell you the pe or the price to revenue or the price
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to -- or eb to ebtda, measures in my portfolio are benign relative to the overall market sure, there's one or two in there that may be overvalued including how i think about it, but generally i'm finning value out there and continue to stay in those tocks, continue to look to refresh the portfolio. i am a little cautious i do expect that correction to happen and that sell-off, but it is just normal course of business. >> no, i understand. sarat, kourtney's view is sort of sanguine sort of where we are right now, and she looks at the big winners she has had. walmart, which perplexingly hasn't done much, even over the last year period maybe she has owned it longer than that. but you look at the winners that you have had. you feel like, okay, maybe the market is going to have a little bit of turbulence. is now the time to take money off the table like kourtney did or just say, you know what
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i will ride it out and i will just keep what i like in the full weighting that i have it in my portfolio >> i would look at it through the lens of look at your portfolio and look at the allocation if you are, as kourtney is, if you are overallocated and the stocks are now a larger part of the percentage that you want in equities, absolutely trim it this is the time to do it. the same thing would be six, nine months ago when equities were way below your allocation to steve's point and more to josh's, you know, it is time in the market, not timing in the market, and still within the allocation what we're doing is when new cash is coming into our accounts right now, i'm adequately allocated i'm not running out to buy stocks because i do think, as steve mentioned, 5% to 10% pull back at any time, and also we are in earnings season. so earnings season will give you some opportunities for some fallen angels so i'm not trimming at this point but i'm not -- >> i'm sorry, if you think we could get a 5% to 10% correction
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at any time, you would never buy, right >> ah. >> hold on i'm looking at your notes here i'm not deploying anything is what you say when clients give me new money, i'm not deploying it right now so this time feels different than another time would have, no am i reading it wrong? >> it only feels different if i'm under allocated. if i'm not allocated according to their equity allocation, then i am adding to them. but for the most part, if people -- and most of my clients are fully allocated to this point so i'm not really getting aggressive and getting to the upper end of their allocations. >> i go back to the "what should i buy" kourtney, if everything is up so much. even though we've had a little bit of consolidation lately, if everything is still up a lot it creates the problem of where do i look tobuy anything. >> well, you know, it is two fold. >> look. >> and i want to be clear. hey -- oh. >> no, go ahead, kourtney. i don't know who that was. >> no, go.
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>> so a couple of things so josh is 1,000% right. i usually agree with him on a number of points there's a difference between investors and traders. so where are you buying, what are you holding on to, what are you selling, right so when you look at some names that are pulling back, there are sectors and industries that i like i have always got -- you and i have gone back and forth on the banks. what do i like about the banks i like those with exposure to investment banking, to trading businesses i like exchanges, those in the market of moving money back and forth. we have seen some interesting pullbacks and some market leaders. i will not tell you who the names are, you can do the work yourself a little bit here, but there are some market leaders that are significantly off their highs, that if you can get in and buy and you have a longer time horizon, you are going to make money think about who has great leadership, who has a business strategy that you can get behind put those companies in your portfolio, and market leadership, of course. put them in your portfolio and watch them work for you. you are going to possibly see
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some waves here and there, but maybe you add to them. that's what i have done throughout time in some of those names that you have even given me a hard time on, scott, over the years, but they've worked and they've worked nicely for me therefore, i am peeling back i am not out of blackstone i'm not out of kkr, for the exact same reasons i just mentioned to you if somebody wants to get into them today, i think you have every reason from a long-term perspective to be in those quality names that are knocking the lights out from an earnings perspective and return perspective on behalf of their clients and shareholders. >> all right let me break away from this conversation just for a moment and get to ylan moiie. she has breaking news for us on the infrastructure plan. ylan. >> reporter: scott, a group of senate republicans just unveiled a counterproposal to president biden's infrastructure package, and their price tag is $568 billion over the next five years. now, the gop framework is focused on what they've been
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calling hard sfraulkt. it includes $299 billion for roads and bridges, $61 billion for public transit, $44 billion for the airports and $17 billion for the ports. now, it looks like republicans are also proposing a separate $65 billion for broadband. unclear at this point if that is included in the headline price tag. if not, it would bring the total cost of their package to more than $600 billion. now, the gop senators do say that any infrastructure spending should be fiscally responsible and fully paid for their plan also calls for users of infrastructure to be required to chip in, including electric vehicle owners they also oppose getting rid of the cap on state and local tax deductions as part of any infrastructure plan. scott, they make it very clear that any new revenue should not come from raising corporate taxes. back over to you. >> okay. ylan, thank you so much. we'll see how far that goes. that's ylan mouy down in washington josh, what happens if
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goldman's david kostin is right and he says it is peak growth and equity often struggles just as growth. that's a longer term market conversation, that's a conversation longer than the next three to six months what if this is as good as it gets we're going to do a massive gdp print. we may do one after that, too. but, you know, if 10% then becomes 8% and becomes 6% and eventually we get back to trend of whatever, you know, 2.5%, what does it mean for equities >> well, the context there is important, right, because we're not going to have more than a couple of quarters where the comps are going against pandemic-related lockdowns so obviously we wouldn't expect cartoonishly outsized gdp reports and gains in employment year over year, et cetera, et cetera so, of course, a lot of that stuff is going to calm down.
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the comps make everything look ludicrous, but i think the market is smart enough to understand that and to a large extent maybe has front run that. so i don't disagree with austin that there could be some churn in the markets as people start getting accustomed to, okay, plus 6%, plus 9% for all of these economic data points is probably not sustainable all right. so we'll have a little bit of churn. i don't think it is the end of the world. we're coming off the fastest 75% 12-month gain of all time back to 1950. like that's what just happened so that's not good enough for you? you think that's got to be every among for the rest of your life? i feel like people need to tamp down their expectations and they will be able to make it through a little bit of chop as we grow accustomed to the idea that we're headed back to trend growth i think it is perfectly fine. >> let me ask you a question before i bring in our headline guest today about one stock in
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particular i mentioned the name already and i'm looking at it right now and it is crowdstrike. it is sort of emblematic of these high growth and, you know, loved stocks that have run a lot. it is up 227.5% over the last year now, i know that you view it as a long-term play and i know you view yourself as a long-term thinking and investor, but does any part of you share what kourtney was talking about earlier and say, you know what maybe rates are going to continue to move up as we get back to life as normal and stocks like that, as much as i love them, just aren't going to do that well over the next six to twelve months so i want to trim a little bit, take a little bit off the table. is that far fetched? are you thinking that, too that's fine, too i just want to know what you are thinking. >> there's no real evidence that growth investors are harmed by rising rates in fact, the evidence is the opposite if you look at the rising rate -- if you look at the rising rate regime that we lived
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in in the second half of the last decade, let's call it from 2014 on, what you saw was massive outperformance from growth stocks while the fed was normalizing rates. which, by the way, there's no danger of that happening any time soon if you actually listen to the fed but i will take the bait there is absolutely no evidence whatsoever, there's no empirical evidence, no lived experience, no academic evidence that rising rates are negative for growth stocks there might be some truth to the idea that higher rates are harmful to valuations, and so that might be the risk that i have to live with in a stock like crowdstrike i don't have 50 of these, judge. i continue have a whole portfolio of these this is the most expensive stock that i own i have just made the point -- by the way, i have been pounding my fist on the table for $100 per share now on this name i have just made the point that if you are going to own a very
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expensive stock, you should have a really good reason because you are going to have to endure a lot more volatility than in the other names in your portfolio. so this is the one that i have chosen chosen wisely so far i think it is the salesforce of cybersecurity, and i think cybersecurity is going to be the most important industry in the united states as the economy and the world increasingly moves more digitally so i don't think you can do anything that snowflake is doing, google, amazon web service, you can't do any of that if the network isn't secure, if the end points aren't secure if you have a trillion devices in circulation that can be hacked, you can't do it. so that's why i'm in crowdstrike. i think it is a 21st century infrastructure play. it is not cheap. it is okay i can handle the volatility. i'm a big boy. that's the story there if rates rise, and that's the reason i don't make money on the stock, you live and learn. i don't think that's what is going to happen. >> okay. that stock is pushing about 6% let's bring in our headliner,
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tom lee, head of research at fund strike global advisers. good to see you again. welcome back. >> good to see you, scott. hey, everyone. >> i mentioned at the top of the show sort of our headline or umbrella debate is time to be cautious or time to be bullish i said emphatically you are in the latter camp. you remain bullish even in the face of, as i said, a number of people from minerd to dwyer to krinsky to reader who say, you know what, i don't know. it is either euphoric, it is either heated, it is either frothy, it is going to be turbulent and you say we could get to my price target sooner than expected and a 50% chance we reach it before the summer. >> that's right. scott, i heard all of the comments earlier in the show you know, the stock market stalled really in the past month. it kind of coincided with covid cases in the u.s. not improving and then, of course, the
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outbreak in india and the lockdowns in europe. in many sectors went through deep individual corrections. now it looks like u.s. covid cases might be legging down in a big way because we're hitting that 40% vaccine penetration, which coincided with israel seeing a huge let-down in cases. i think it started two days ago in the u.s that means that june reopening, the visibility on the u.s. sort of coming out of this is much stronger, and i think stocks are going to now have another leg up so i think the rolling correction is sort of running its course and, yes, i think easily 4,200 in the s&p but maybe as much as 4,400 by june so i think we could have a real rejuvenation of the stock rally. >> so calls of a 10% correction -- you have heard them on this network probably read them elsewhere, too. >> yeah. >> you just think it is not going to happen? >> i mean there's a lot of valid reasons to think about that, but
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there's been so much deleveraging as you guys point out, the interest rate environment has really stabilized. i don't agree with the idea of economic market peaking and stock market peaking for instance 1982 to 1999, that 17 years, if you cut it in half, the market compounded in the same rate in the first nine years and the second nine years. economic momentum, when did it peak it must have peaked in 1984. so i mean you had 17 years of literally the same compounded returns. i think that's a setup that we have today so i think investors are correctly cautious because covid really is stalling and rates were uncertain but there's been so much deleveraging we have seen things like spacs and hypergrowth stocks correct i mean everything has corrected at different times so i think we're done with the correction. >> but how much of the good news is already in the market do you think, even with this consolidation period, albeit minor, that we've gone through
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>> i don't think a lot of good news is priced in, scott just to give you an example, you know, steel company, cleveland cliffs reported this morning, and the ceo could barely contain his notion that even if you haircut where things stand today they're going to be full-year numbers by substantial margin. there's a lot of operating leverage that will take place this year because the top line environment was so restrictive for the past year, it is now starting to open up at a time when companies are really lean i don't think most people have modelled the kind of rebound in ebdt that will happen. if we look at the sector level for the cyclicals, they might be by 2022 more than 100% higher than 2019 levels on using consensus revenues estimates with 2008 operating levels if you use an old playbook, they will crush numbers for next two years. >> josh brown has a question
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four, tom. josh, go ahead. >> yeah, tom i thought one of the strongest points you made in your piece, and we were talking about volatility in the a block. we frequently talk about volatility on the show one of the strongest points in your piece was that the russell 2000, and you use the iwm as a stand in for that etf, but you are saying, like, it has doubled in the last 13 months but you have had 13 distinct episodes where you have had to endure a greater than 5% dip, let's call it, and in some cases much worse than that. that's kind of been the experience in all of the major averages, and that really doesn't feel like it is anything new. maybe it is just something that we need to tell people about, like this is the normal experience of a stock market investor because we've had 40 million new brokerage accounts open in the last year, and they may see a 5% dip in the market and think something is wrong so can you talk a little bit about what your research has pulled up there and why it is so important for people to get comfortable living through
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volatility >> yes, that's a great point, josh, because, you know, progress, especially stocks, aren't in a straight line. i know there's a tendency to believe if a story has a fundamental growth trajectory it should be steady gains, but, as you know, because of how liquidity and positioning and sentiment can cause stocks to overshoot and undershoot, and that's absolutely right. the russell 2000 every month has a 5% to 10% drawdown we just went through another 5% drawdown, and the one thing you don't want to do in a portfolio is view that drawdown as evidence that the trend has changed. i mean if you take a look at the bigger fractile, russell 2000 is super sensitive to the trajectory of covid. if covid is receding in the u.s., and by the summer we could be down to like 6,000 cases a day if we match israel, that's going to be really good for how people feel about the world
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opening up, and the russell, which is chock full of epicenter stocks, will be the leader already year-to-date it is the best performing index. nothing has changed since march 31 to say the russell should be ceding leadership. you're right, people have to endure these drawdowns it is one thing to say everyone likes faang and they're down 5% and you have a lot of buddies to put your arms around when it comes to cyclical stocks, they are trickier because not a lot of people think they're great stocks to own. so you're right, these drawdowns make people a little more scared than they should be. >> so the risk, of course, is -- and i don't want to belabor it, but i think we would both agree that you keep using the example of isreal where, you know, the vaccine has been far less politicized as it is here. the uptake has been far more great than it has been here, and that remains an issue and still
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lends to that covid risk story that if not enough people are willing to take the vaccine here, it is always going to be this underlying issue, albeit lower, but it is always going to be there and always threatens some part of the recovery. point number one point number two is i would like your reaction to, you used to say that a vix under 20 was a sign in and of itself of a screaming buy for stocks now that we are as low as we are and we have been there for as long as we've been there, i'm wondering now whether you think it is a sign of reversal of that, a sign of too much complacency and too much ignoring risks that are out there? >> yes, both great things to talk about, scott. on the vaccine hesitancy, you know, we have to keep in mind israel is peaking around 62% vaccine penetration, but the first milestone that they hit was 40%. and while cases didn't improve when they had 20%, you know, vaccine penetration, as soon as they hit 40%there was a huge
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let down then they had another leg down as they crossed 60%, and now it is plateauing. i think in israel it is 30%, 40% of people aren't getting vaccinated that's close to the numbers that mackenzie's surveys are showing, that 65% of americans are willing and then there's another 20% that are unsure, but if you get them to cross over we could be at 70% this year. i think we could see a dramatic drop off in cases, again, if we follow israel's path with regard to the vix, i think it is a very strong signal that the vix is under 20. we are already going to see the benefit of that. and then if we get economic momentum improving, hedge funds which have really dialled down their leverage and degrossed for multiple events including the prime brokerage leverage on wine, this has kept people cautious the bitcoin plunge over the
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weekend i think spilled over monday, tuesday, into the broader market there's a big opportunity for the market to go risk on with the vix sitting here and if, you know, as my friend tom de mark would say, if you look at the de mark account, the vix could be in the 12 levels this year. at 12, that's a very different signal for stocks relative to valuations and also relative to bonds. >> we appreciate it, tom always give us something good to talk about we'll talk to you again soon that's tom lee with fundstrat joining us once again today. steve weiss, before we take our break, your moves are interesting. you sold u.p.s., right what's the reasoning behind that for somebody who has owned xpo, you've added to that recently. i guess you own fedex also is it simply a matter of, i don't need all of these, or was there something specific about u.p.s. >> no, there's nothing specific about u.p.s. i just thought it was more expensive than fedex, which i
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have a good size position, and xpo, which as you mentioned i did add to i think it has much more upside. so i didn't need that exposure i was looking to concentrate the portfolio, get rid of some names that are sort of there, sort of not there. so that was the reason i got rid of u.p.s i wanted to add to other stocks. >> you bought erickson calls going out a good ways to 2022. can you tell me about that one >> sure. as you recall on the last show i said ericsson was going to have a great wartequarter, they did. i bought the calls going out to next year because it is rare that you see calls that give you that much time value that have essentially no premium whatsoever, no time value premium. that's why i bought that i thought it was just a great way to, again, increase my position on ericsson just going to what was said earlier on the broadband bill, that's ericsson, that's 5g you will see more and more spending go there.
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>> what do you quickly think about what tom lee said about, you know, amid all of this caution and some negativity that he thinks, you know, there are very bullish signs for stocks regardless of what anybody else says, and you can actually reach the upend of his target sooner than people think? >> i disagree. i like tom's work. i disagree with a lot of what he said for example using cleveland cliffs for the example, which i own, and maybe i shouldn't say this the company came out and preannounced a phenomenal quarter, and they came out and basically said, okay, we did what we preannounced the stock went down. it was already in the stock when it traded to 20. will you get another leg up as they execute possibly in terms of the vix, one of the reasons why i cut back my exposure is when the vix got back to 16 so, yeah, the long, long-term average of the vix is in the lower teens, but to me that gets to be more of a sign of complacency. so i would like to see the vix actually shoot up a little bit,
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see the market continue to consolidate here i think that's why get more bullish, not as the vix goes through historically lower levels. >> let's take that break we have an uptick in travel demand pushing the airlines, american, alaska, southwest, all up over 30% this year. we will find out what the latest earnings are signaling as a reminuter you can watchr o listen to us on the go as well on the cnbc app. we're back in just two minutes
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i'm rahel solomon. here is your cnbc news update at this hour. more difficult for the federal trade commission to recover money stolen by fraudsters the supreme court ruled unanimously today that the ftc does not have the authority to seek court orders for restitution on behalf of consumers. in a 6-3 vote the high court declined to put new restrictions on juveniles sentenced to life in prison without the possibility of parole. the ruling says that judges don't have to determine a juvenile is permanently encoringible before imposing a life sentence. a 31-year-old man who tried but failed to detonate a pipe bomb inside a new york city subway station in 2017 has been sentenced to life in prison. the defendant told the court he's deeply sorry but the judge in the case said that the punishment is appropriate for what he called a truly barbaric and heinous crime. workers have returned to the fedex facility for the first time since the shootings last week that left eight people dead two check points are in place before employees can enter the
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parking lot. you are up to date scott, back to you. >> thank you we appreciate it, rahel solomon. a number of airlines out with earnings. american and southwest reporting stronger bookings, ramping up schedules as well. let's talk about some of these names, maybe not those specific ones kourtney, you own delta airlines sort of the real work for the airlines begins, right you have to get business travelers to come back, where the real money is made. >> yes, you do, but, you know, the good news about that is you are seeing the leisure travel pickup i mean, scott, i don't know if you tried to book a flight for this summer at all, but i mean flights are pretty close to capacity and ticket prices are skyrocketing i actually took a flight out to new york recently. yes, i'm fully vaccinated for those who are wondering. i took a flight to new york for business purposes. i mean the flight was over $700 for a coach ticket you know, it is really interesting. i think that, you know, as we start to see things turn and we start to see some of the return
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to office come into play, as we start to see some of the business travel pick up, it will be gangbusters for certain of the airlines the reason i like being in delta is because of the brand. ed bastian at the helm is tremendous obviously they've done the right things throughout this pandemic in my perspective to maintain customers, to treat customers well, and that customer brand loyalty is going to pay off in strides i think as we look toward the future. i think it is about time they start to look at bringing some of the planes back in because i do believe as we get into the fall the amount of travelers, both leisure and business, is going to pick up in a way that the world is not expecting. >> sarat, delta, core position for you. >> it is i will just replicate. i mean korurtney hit the nail on the thing. the thing with delta, best management team, best balance. they didn't do what the others
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did in terms of united in terms of selling stock it is a wait-and-see period for this one the stock will reflect the future growth of business travel before it happens. it is just a question of holding on i think if you are going to be in the airlines, which we like this one, this is our core position. >> steve weiss playing this with a fairly sizable move today into boeing. >> yes and not just today i had owned the stock, as you recall, when i was paring back the portfolio, i sold half of the position i added to it the last few days. stock got hit, continued to get hit when they announced that the cfo retired. that's how in my opinion hit the stock, what hit the stock was they extended the contract of calhoun, the ceo, who i'm not fan of but i took the opportunity to buy the stock i think it is a great trade from this level i have a large trading position. i'm not going to own it for a long time, just to make some dough in it and then i will be out. >> you can't be that much of a hater if you have been buying the stock. >> hey, man, you know. >> come on, you just couldn't
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resist the shot. >> i couldn't, and i think it is well-deserved shot but, look, if the airlines do well, boeing is going to do well pure and simple. >> all right from airlines to autos the stock up 35% this year in that space that just got two big, bullish calls as well today. we will vet,real i we will trade it it we will do it next worth is knowing it's never too late to start - or too early. ♪ ♪ wealth helps you retire. worth is knowing why. ♪ ♪ principal. for all it's worth.
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all right, guys. let's talk about the bullish calls on ford. upgraded to outperform at wolff. price target to 15 catalyst call at deutsche, buy there. josh, you own general motors nobody on the show today owns ford you prefer gm? the stocks have tracked each other pretty well. >> yeah. i think ford is largely moving on stuff that has to do with the mock e, their electric vehicle whether or not it is really taking share from tesla at that price point in that market segment. and then, of course, like every other automobile oem around the world, as we get into the second half of this year there will be more news about new models, new things they want to do with electrification. they're on the same parallel
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track with gm, with benz, with volkswagen, with volvo so i just would expect this to be like a trade on electrifying the vehicles, doing it profitably, taking share and if you look at it that way, it will probably move in line with gm. i just think gm is a better run company and has more going for it that's why i'm in that one versus ford. >> understood. weiss, you sold general motors farmer jim is not going to be happy with you, but tell us why. >> i did no, and i hope he's not watching look, i looked at my stocks. i said, what's got more upside, and gm, i like mary barra, she has done a great job but the fact is that volkswagen and i own porsche, on the upside the others are not close on evs to what volkswagen is.
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i mean gm is not even in the same ballpark. so that's why i like volkswagen. they'll sell more evs next year. >> gm has cruz. >> or the year after than tesla. >> hey, why is -- >> that's great, but don't listen in terms of -- >> hold on josh josh, go ahead, and then weiss. >> they're all electrifying but only one has an autonomous unit that is further advanced than google's waymo and further advanced than tesla's autopilot. cruise has the potential to be a bigger business in autonomous vehicles than the others i'm not saying it will shake out that way, but they have that lead i don't think shareholders are baking any of that in at an $82 million market cap volkswagen doesn't have that.
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>> we're going to disagree and they are baking in it, which is why a lot of people own it what gm doesn't have that porsche has, porsche has been killing it, selling more cars in the pandemic than anybody else look at the valuation that you have got on ferrari, race. if porsche spins out that subsidiary into a stand-alone and they've talked about it, there's been speculation of 25% coming out, that would be equivalent to the market value of ford. so they may not have cruise but -- >> they did not sell more porsche. >> but they're much further along. >> they did not sell more porsche this year than chevy tahoes there's not a chance >> that's not what i said, josh. it is not what i said. >> all right i got to go. i got to go. we will come back. intel repoing nit.rttogh of course semi stocks up 90% in the year the year we will trade it next.
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semis under pressure today but the smh is still outperforming the major averages this year. it is 5% away from highs one of the underperformers this year, intel. it reports later today er issate, you own nvidia and call com pell sell zinger is going to be
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on cnbc tonight. i don't have anybody stepping forward today and buying it on the show, right? you wouldn't buy intel y. do you own nvidia and qualcomm instead of intel >> call comis the 5g play. nvidia is artificial intelligence, data centers, gaming intel is kind of in a no-man's-land. that's not to say i am not looking at it closely. i think it will be interesting to see what the strategy is laid out. it could be a great buy. they have a balance sheet and dividend i like those other two for the growth and this one is getting more interesting. >> josh, you sold taiwan semi. why did you do that? you mentioned that name numerous occasions? >> i keep adding to korveo to me -- that stock is up. that's one of the best positioned semis out there taiwan sort of ran its course.
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it is not a cheap stock. korveo sells at a 30% discount the taiwan seme. it is also the reason i sold qualcomm i like that and skyworks >> pat gehl singer sbnt on mod money with jim 6:00 we will do final trades next
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it is time to answer your questions. courtney a video question to you first. >> hey everybody at the "halftime" show. i absolutely love your show. i have been watching for a long time my question is square versus paypal if you had to choose one, which one? go caps! >> that's right. go caps. love the hat, too. court, you own both, if you had to choose just one, what would
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it be? >> i am not. i am splitting the baby, scott. >> oh. >> i think it is a situation where -- short-term it is square, lon term it is paypal. >> there you go. >> does that solve the problem there. it wasn't that hard. >> candidly, last year, it wasn't, i do like them both. if you think about what last year did which was traps formative in the marketplace what happened is we brought america into what 74% of chinese are using, their digital wallet. that trend is going to continue. although it is sexy to talk about crypt audio and what paypal is doing with crypto and what others are doing with crypto on those platforms, it is actually the potential for paypal and square to take pieces of the kind of traditional banking wallet imagine depositing your check into paypal, right we are already trading stocks on cash apps. i think it is a long term trend and there is a lot of room to run in these names. >> josh brown, video question for you. >> hello
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my name is mitchell. i'm from washington. i am a huge fan of the show and admire all of you on the panel my question is, with the housing market so hot currently, do you think it is a good time to buy into real estate companies like zillow who have been at their highs recently thank you so much. >> thank you josh your answer. >> i would skip red fin. it is a very traditional broker just offering human services at a lower price point. boring business. in the a big fan zillow is much more exciting, has bigger potential that's the one i would buy it. don't buy either one right now but z is on my radar. >> steve weiss gmvhy, multiple inquiries, it is a new buy for you. >> one of the largest online gaming and sports betting companies in the world 20 countries it is cheaper than draftkings. this company actually makes
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money. it is cheaper than penn gaming >> okay. all right. >>+most of their pus has been shut down in europe. >> he will we will make that your final trade for time's sake josh, then court, thenar issate, give us a name >> i forgot what i was going to say. i'm sorry. >> thank you very much >> score capital i'm sorry. it threw me off with one word. new 52-week high. >> you know what we have got to go. that does it for us. kell, what can i say enough said. the exchange begins now. >> thank you very much scott hi, everybody. i'm kelly evans. here's what's ahead on the exchange today intel is set to report earnings. can the battleground name and key u.s. supplier justify its recent rally with new ceo ambitious turnaround plan and more competition than other. plus, one hot

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