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tv   Fast Money Halftime Report  CNBC  July 6, 2021 12:00pm-1:00pm EDT

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between arming the media over the top streamers versus seeing what they can do in theaters meanwhile, top gainers on the nasdaq, take a look at those amazon, docusign, zoom video as we wrap up here. work from home trade, still hot. central one up 9%. "halftime" starts now. all right, jon thanks. welcome to the "halftime report." i'm scott wapner big tech's rebound this several stocks hitting new highs as the dow touches a 400 point drop how key are the names to the rally which tom lee now says can be child support choppy. we'll sboo shannon skoshia josh brown pete najarian. great to see everybody beginning with tech, the nasdaq hitting a record high off the open today amazon microsoft, facebook, google new milestones, apple getting close as well.
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that stock has been on the move big time great to be back good to be with all of you josh brown aside from those, crowd strike which is yours, nvidia, which is yours and they are ripping. >> yeah, as of this moment, like two months ago where everyone was like, cyclicals, like, you have tos be in these companies that were founded in 1890 and pull copper out of the ground and turn it into pet rocks supercool. but in reality all that was really happening beneath the surface was the growth trade was biding time. you saw the epic setups forming, really long bases, amazon such a great example of that. we talked about the bigger the base the higher the space. amazon has been basing since july of last year. this breakout, which today is absolutely epic, is almost 12 full months in the making. there were a lot of charts like
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that so now the cyclicals are getting lack the xle down 3%, hitting the regional passengers. there is a lot going on right now. but people are returning to the companies that they know, even if the economy has peaked in terms of its growth rate and starts to decelerate, they know these companies are not peaking, are not decelerating, are a secular story. there are a lot of places to go for investors. it's not just five stocks. it seems like that sometimes but obviously the big five all look phenomenal today, google, new his microsoft new highs, facebook new highs shop is running, zoom is running. docusign is running. there is a lot to like in the long-term growth trade, those stocks are working well once again. and i hope you didn't sell them all out to buy a company that makes, you know, lady era lead fillings for the teeth. >> the 10-year, pete, is at
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19.43, 1.40. that's something you're looking at closely as the stocks continue to work it's no surprise if the 10-year is falling then these stocks are going to be working. >> sure. well, you know, and we talked about this a long time now we talked about the pause we have seen from apple and microsoft. a lot of the names paused. although facebook not in the pause category it's been on fire. >> overdid it too. >> sorrow sorry to interrupt you, pete. i -- i overdid it on the 10-year. 1.36 >> 1.35. >> are you concerned about that? >> i think it's something concerning you know, raul paul has been all over this talking about everybody worried about the upside how about the downside what about if he break through 1.4. this is one day. let's not make too much of it. let reality is there are folks out there very concerned i think watching this. and obviously you can see that
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with with what people are doing with hands and legs jumping out of financials and materials to josh areas point, a lot of the areas that everybody said you got to be in materials, i still believe in the energy materials trade. but i think that the reality is they've had an unbelievable run since november they've had incredible stretching, long stretch of run. why couldn't they pause a while? maybe we're seeing that right now. i don't think the trades are over with. but the reality is we have been starting to see more and more flows into technology names, facebook, apple. you go through the list, all of those names continue to hit, including today. the first four unusual option activities -- not giving anything away because these aren't for later the first four hit on our programs today were apple, google, amaze annan nvidia, giving you a sense what people going into today looking at different things going on in the backdrop and a lot of gigantic
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paper. looking at amazon and somebody buys 10,000 calls in amazon, that says a lot, because we're not talking about dollar calls or $3 calls. we're talking about calls up to $40. so very, very expensive. and yet they are continuing to run into a lot of the technology names. >> joe, the 10-year is dragging the overall market, don't you think? if the 10-year continues to drop stocks are going to drop in some respects it's going to make you question a lot of things, isn't it? >> no, first of all, welcome back, scott. absolutely we've been talking about the 10-year and been trying to figure the puzzle, the riddle why is the 10-year pricing at 1.35 on june 1st the 10-year was 1.60 a 25 basis points decline on the better part of a month growth is up 8%. value is down 2% what is the market doing reacting and responding to that very aggressive pullback in yields that's why you see right now the attraction towards growth, which
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really equates to defense in the market and that's going to continue to persist. if you see yields move lower the reasoning behind the yields moving lower -- is it the delta variant? or is, scott, basically we have reopened you only reopen once and the roaring 20s appear the narrative surrounding the roar 20s, maybe not equating to the economy in reality growing organically. >> shannon, rick santoli who knows rates as well as anybody, says you get close to the support zone of 1.35 to 1.38 -- we're in the zone on owe, okay close below that you get a 1% re-test on the year. i don't think the market's going to love that. >> no, i don't disagree with you, scott i think some concern we saw the services number today weaker than anticipated. and to joe's point, you only
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reopen once. i want to go back to 2010 when we were looking for the u.s. economy to hit the escape velocity we had a period of low interest rates and low growth for a decade following the financial crisis the economic situation is certainly different here significantly more stimulus particularly on the fiscal side. but this is what we were talking about six or eight weeks ago we can hit the period between the end of the earnings season for second quarter, waiting for first -- second quarter earnings yet to come out yet. we're not getting corporate announcements over the course of the summer and we don't have jackson hole until august we are in this no man's land where you see some weakness in the energy trade, weakness in input prices -- seeing the price of lumber for instance fall precipitously. maybe the inflation numbers were transitory but perhaps we might have a slowing of the economic recovery i'm not saying that will
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persist. i still continue to think in the third and fourth quarter we see the reacceleration particularly enterprise side for the u.s. economy and global economy at large. but we are in a bit of a no man's land this summer where people are looking for clues where do you stay looking for clues if you're not sure in the large cap tech name which had delivered over the last three or four years. >> tom lee, out today, right, he called this as right as anybody, saying you're giting 43, 4,400 in the first hast year and we're there. now he says chop because of a delta variant panic. you may get through that he thinks that's the base case no secret you have concerns about the delta variant preponderates dropping now the market is concerned. how do you see that? >> i guess i don't appreciate that the coronavirus wants to keep dropping new variants like
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it's sneaker drops i'm not interested in the delta variant. i read a note this morning from wall street about the lambda variants i don't want any variants. i'm all set. good news is vaccinated are ihle protected from the variants as they were from the virus that was spreading here prior to the vaccinations that's not changed i understand, though, maybe there are some people selling the portfolio off thinking there is the big drop when the variant proves to do whatever it does. yongd i don't know that's the case you have not been reward the the alofto last six months to reacting to the setbacks the way the world is dealing with the virus. i think joe made a powerful point, you only reopen once. i think shannon touched on this. the comps are getting harder you're not going to have 30% month over month growth in the various metrics we follow as we
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get kedeeper in the year because the economy was era was reopening last year. it was fun to lap the quarters and read about gdp up 20% a month. that won't continue. the comps get more difficult to have the shocking upside results. do we want to look at that as a negative we can if we want. i would prefer to look at it as normalization. a lot of the people now screaming about re-test on 10-year, judge, of one percent or 1.25%, they were the same people telling you who telling you 2% would be the end of the world. which is it? goldilocks too hot? too cold. >> let me ask this can i like your life nation down 3.3% today while at the same time liking the tech names that bet the benefit of lower rates and maybe concerns about the
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full recovery because of the variant, this variant or whatever variant >> you have to you have to. you have to. because you want to have stocks in your portfolio that are going up against the terrible year because as as they report earnings and things come out better than expected the stocks should work. and there is a rotation underlying this market this week it looks as though google, apple, microsoft that trade is invincible. we don't know what next week looks like that's the hallmark of a bull market where different groups take the turn leading. not a lot of people know this reits are leading the s&p this year reits. who would have guessed that in january? you've got to have a balance of different sectors in the portfolio. i think the biggest danger, judge, for our viewers is to pick a story and then weight the portfolio as though that's the right answer it's very, very hard to do that. almost nobody can do that.
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the better bet is to say i want a little bit of exposure to all of these different outcomes, because i don't know which one will become the dominant theme in the future. >> pete, let's focus on the you only reopen once idea. mike wilson from morgan stanley says markets are likely to take a break in summer, because, yeah, the economy is booming but it a known known and the markets aren't reflecting it. if the markets aren't reflecting or buying the story any more, where does it come from? where does the upside come from. >> well, i think if you take a look at the rotation that we all have been talking about, i think the areas that had been lagging are probably the areas that still can have us moving to the upside there was a question last week about what do you think going into the second half of the year and are we going to be up, down? be as up as in the first half of the year all the questions were being asked. the reality was we gave the same
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answer, which was we think there is room to the upside. we don't know we see the same results as the first half of the year i stand by that. i think there is rotation, though and right now the rotation is back towards those fang names. that could change. but when you look at the first six months of the year and looking at apple and wondering when is it moving again? is it moving again i think we're starting to see some of that as it approaches the highs it hit not long ago. i think there is a lot of of room for the different stocks, some of which are still inexpensive i think on a forward pe some are more stretched. but looking at facebook, it's been too cheap, makes incredible cash and the yoe is teflon you put together the combination that that's why the stock is rising and rising and establishing new highs so i think there are different areas of the market that can lead -- lead right now and i still think when you look at the fang names specifically
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that's an area that had paused at least for the most part and has -- still has plenty of room to the upside. >> joe, i know nobody wants to talk about this. and i don't blame them for some of our children they're going back to school in less than two months. right? there are a lot of kids going back to school at the end of august before labor day, joe so -- i think joe is frozen. throwing it to shannon you heard the premise of the question i'm asking. so what happens if the delta variant becomes predominant here, which it already is and spreads more, which is is likely, and you can't send your children back to school the way you thought you were going to be able to, because that creates a whole new issue that the market has to deal with >> that's never happening again. >> i know you say that and i -- i would tend to agree. >> never again. >> i would tend to agree with you. but it's easy to say that until you have kids who are of the age
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who couldn't get vaccinated and worried about a delta variant spreading wildly in various places. >> you don't have transmission in schools we don't have transmission in schools. it's the safest place for kids to be, empekarically we know that. >>s. >> that's fine. >> they are never going to do that again. >> we're not going to have a medical debate because we're not here for that. >> no. >> i'm suggesting the delta variant is spreading more, then you think the market is going to ignore everything? >> nope. >> no one will care. >> they will never close the schoolsdown indefinitely again won't risk. >> shannon, why don't you take it. >> but i think it goes back to what is normal right? we're talking about normalizing. i think there's been a lot of discussion -- josh made a great point thinking about the portfolio being diverse, because the reality is everybody is sitting around waiting to go back to the fourth quarter of 2019
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it's not happening to the question about schools, there is a lot of people still working from home. and frankly i see companies making the decision to push that out even further i think hedging a bit against some of the variants and the fact that kids are not yet vaccinated i don't disagree with josh but normalcy, we don't know what the new normal looks like. we know what happens after recession. small caps and cyclicals run, the fact that you can get in as long as they're there you can benefit from that. but is live nation or as many people going to concerts i don't know but there is a heck of a lot more people going right now than this time last year. think about from perspective of, if you expect there to be a sustained global -- global -- make a point -- global economic rebound every oh the next two to three years, the diverse basket can include a lot of companies there are trends, the zoom, teledoc trend, the the fact i
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order everything online pb, probably not going to the store as much as i used to that's not changing. you don't have to wait for 2019 to reappear to situate your portfolio appropriately for the next three years and this is a great time, the next six weeks have the pullback based on variants. it's a great time to add to the company you'll be happy you own tee years from now. >> let's bring in our guest. joining us live from minneapolis today with the mid-year outlook. mr. belski, welcome back. >> judge, how are you. >> thank you very much i'm happy to be back glad we're having the conversation what's up with the market? the 10-year dropping like a stone. is that why stocks are low for the day. >> i think so. i think there is three big themes when growth is scarce, growth outperforms. i think we are transitioning for moment up to consistent growth
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that's one theme another thing is about stock sticking we're too macrofocused it's the jak moon market everybody love everybody what does that mean? it means you want to be equal weight across growth and value equal weight across small, mid-and large. and you really want to focused on the core competencies as a portfolio manager. whether growth or value manager pick the best in terms of juror spot i said all along the market has it wrong on inflation. follow the bond market, the fed. we've tried to outsmart ourselves again. i think you need to focus on the strength of the u.s. market overall and the strength of consistency of our earnings that's really the key. josh said it best. you can't be -- you can't go one way or the other the market is too binary and you have to be diversified across all sectors and have to think about the moves happening. reits maybe make no fundamental
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sense to me they've led this year because we've been in a rising rate requiremento environment we thought but now rates are going town doesn't make sense energy is overdone on the upside lighten up there maintain the tech holdings and play themes. i think a lot of investors are uncomfortable thinking like that. >> sounds too perfect. equal weight everything? that sounds too perfect. i'm sorry if rates continue to fall and santoli is right and you close below that channel that he is talking about, and we start talking about are we really going back to 1% on the 10-year? is that environment why would i want to be equal weight everything and if we're worried about the delta variant which the data out of israel is concerning. if i'm worried about that why would he be equal weight value and cyclicals to growth? why wouldn't i go heavier growth >> listen, again, you want to be overweight communications services and technology for the next three to five years those are the growth vehicles of
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the economy, period. now, i'm not a doctor nor do i play one on tovi and caution my colleagues around the world, stop trying to be a doctor pick stocks and be a strategist. and i think that's our job and at the end of the day i think we can't be led by fear, because fundamentals diffuse fear and that's what the market says. >> why is it fear? >> we don't know that -- we don't know that. and i think we're getting too wrapped up in the fear of the delta variant and not focusing on the positives with respect to what's going on in the market. and the u.s. economy continues to do well it's going to continue to pace and it's just like i said on your program, live on tv, march 23rd, 2020 and published that day. the for the attitude and strength of the u.s. economy in the stock markets is going to get us out of this and it did. now you have to be diversified all not all eggs in one basket
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yes, longer term, definitely overweight tech and kplungss but play themes until then markets have been too momentum laiden, too noun processed and undisciplined. pick stocks and stay in your discipline. >> why is the nasdaq down 100 points why do you think >> well, again i think -- i think some of the heavier growth names might have some issues in terms of just growth proposals i think some people have forgotten the second and third quarter are tougher and technology with respect to numbers, longer term that's really the trend but you run a stick with stable, consistent growth you coined the phrase earlier in the program the big five makes sense but so does secular tech like nvidia makes sense in terms of portfolios longer term you don't want to completely abandon financials i think the big financials like the bank of america jp morgan
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goldman sachs, the theme atically stiff dwriven stocks of scale make sense longer term it's the regional banks. it's harder forethose companies to make money from net interest margin compression but the larger banks are better positioned. >> you can't tell me the larger banks, the ones i'm looking in the red across the board are doing anything in an environment where rates continue to go lower. it's not happening you know it too. >> well, think about -- no, scott, think about where the growth proposal is for banks, right? it's wealth management it's wealth management and capital markets. and that's where we're making our money in terms of continuing to have access to capital in the free markets but also wealth management let's talk about this. if you're going to see rates go lower then you're seeing portfolios shift into fixed income that's a transaction we're transaction oriented businesses that's why they continue to work.
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>> you're speaking morgan stanley business not everybody's business not everybody has the big ramp towards wealth management. it's not one size fits all, brian. >> no, it's not, that's why you want the multidivisional assets. it's a goldman sachs, because goldman sachs -- look at private wealth for them six to 12 months bank of america, jp morgan canadian banks, they are big conglomerate banks, many multinational banks. and they're the top ten banks in north america, four are canadian so that's why we like the multidivisional assets because the wealth management business is going to be strong. commercial bank and len something strong and capital markets. >> all right i like to plug you through in there for the canadian banks you know it is what it is i suppose with guy with the bmo over the shoulder. josh brown has a question. >> bellsky, great to see you i agree with most of what you had to say i've been talking about the idea
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that we're in a secular bull market started this spring of 2013 when we broke above the 2007 highs if you think about it from that context coronavirus year of 2020 looks more like 1987 which happened at the midpoint of the 82 to 2000 secular bull market if we're only halfway, based on that premise, i think the biggest risk to stocks is just oversupply we did 226 ipos year to date which is obviously double the pace from last year. $80 billion in new assets raised that's not slowing down. when do we get to the point where there is just too many stocks and that ends up being a weight on the markets? do you think we're getting close to that moment or is that far away from now, given how much cash there still is in the financial system >> it's an excellent point and you know, capacity versus scarcity, there's been a scarcity of stocks and scarcity of ideas and scarcity of shares, right,
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because of all the buybacks. by the way, some of the things you talked about are taken care of by buy bax we know what the banks are doing in that. just look at the path of treasurys to buyback themes. the buybacks continue. nobody is talking about the great rotation out of fixed income and into equities we had a 39-year bull market in bonds. when are we seeing moves out of bonds and rick santoli, i don't know if he is right or wrong but that just only ee lwe ee log 80s. -- i think there is a long oneway in equities by the way, i don't believe you will a the survey stuff that people are negative. i mean, if you ---en oh the survey side, the best gauge of a customer's invite terms of their sentiment is talk to them. and i don't think we've talked to enough clients. if i talked to my clients, they're all -- everyone is
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nervous. nobody wants to jump on the bull market wealth management, high net worth people put money to work that's the strength of the money going forward. that's where the cash comes from. >> what's your target for next year on the s&p? >> for 2022 we haven't put out a target we usually do that the fourth quarter. that's been our process for 30 years. and just like we published our 2021 target in november, we'll see where that goes. i think 2022 could be bumpier. but let's -- you know we're dpo owe going to underpromise and overdeliver. i think 4500 on the target this year might be too low, the $190 target on earnings is too low i think. but let's see how we get there, what the composition of the market is. i think at the end of the year you're seeing eerily similar performance in gloating versus value. on a relative basis you have a
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growth trade coming. it's happening but it's eerily similar performance in those two assets in particular at the end of the year. >> i got to let you go because i got to take a quick break. but when you were last on and i asked you what area do you want to be but to underscore your belief in this sector, you said financials, financials, financials not once, not twice but three times so nice. are you rethinking that now? look me straegt straight in the camera and tell me you still believe that. >> i still believe that especially in the big banks and i still believe the majority of institutional clients are massively under weight again, that's gk to be the trading vehicle. but longer term we love tech and communications services. but i did say financials, financials, financials and named the favorites on air. >> bell ski always appreciate having you on. talk to you soon. >> thank you. >> coming up didi and the china stocks plunging on more fears of more crackdowns
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should you buy the stock or stay in aogheltetr. you can listen live on the go on the cnbc app back right after this. [swords clashing] - had enough? - no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.
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welcome back to the halftime rort." i'm rahel who will month here is
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is the update at this hour the u.s. military says the withdrawal from afghanistan is more than 90% complete afghan forces are guarding the air base and the crash site found for a plane slamming into a cliff in heavy fog. officials say all 28 people onboard did die. britney spears's manager the last 25 years resigned larry randolph says that spears intends to officially retire so his services will no longer be required. and tonighten oh the news is britney really retiring? and what does it mean for her conservatorship in tune in tonight at 7:00 p.m. eastern. a new take on go big or go home the world's tallest sand castle has been built in northern denmark. that's 69 feet high. and it's a 30 sand sculptures used more than 5,000 tons of sand to create it. even coated it in a layer of glue which should help it last
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through fall and even most of the winter back to you. thank you, china stocks they're getting slammed today on fears of more crackdowns names like didir, alibaba ten cent bide ewe our gang talk being about that steve weiss joins us on the phone. >> steve are you there. >> i'm here, scott welcome back. >> thank you you owned a name like alibaba earlier in the year. i don't think you ownny chinese stocks today would you ever own them again, is the question? >> i would not own them again for very simple reason, is that when you own a chinese stock that's listed in the u.s. that's an adr you basically own nothing. and there is a good chance you have no avenue to collect if you get into a dispute i've sued through my fund chinese companies that have ripped off u.s. shareholders by taking companies private far below what they are worth.
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and since they're camen listed companies you go there but these companies -- i won't get he can it will variable interest equities vie created to get around the chinese laws that for bids ownership in critical industries bau they're all critical industries it's technology, telecom, et cetera just the very fact that they are created to get around the law is a warning signal and what do these vies own they don't eye own e assets in the camen imitates they don't have office or employees. all they have is a right to the revenue stream or the loss stream of the companies. >> yeah. >> all the assets remain and the chinese government repeatedly said we don't like these. so on the one hand you got -- >> let me ask you -- let me ask you this, the way i tossed to you at the beginning i mentioned that you owned baba as recently as, let say the beginning of this year. now.
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>> right. >> all of this may be escalating today and recently but it's not like it's all that new of this interference you are getting from the authorities over in china. so what was the breaking point for you, which made you say heim never buying any of these stocks again if as recently as six months ago you were still willing to try and play the game in these names >> well, actually six months ago, you go back to what i said. i owned baba as a momentum trade. and i thought at some point that biden was going to be easier on the chinese companies. turns out he is tougher. the reason i sold it is because jack mohoric got so arrogant he attacked the chinese government. >> steve forgive me interrupting i have to go to ylan mu y breaking news. let me going to ylan regarding microsoften a amazen >> the department of defense is announcing that it's cancelling the $10 billion jedi cloud kpuing contract. remember the defense department
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awarded that contract to microsoft. amazon protested the decision claiming in part political interference by the former trump administration now the defense department saying it's not moving forward with that contract at all and in a statement said it has become clear that the jedi cloud contract no longer meets the requirements to fill the dod's capability gap instead the defense department says it's issuing a new proposal for the joint war fighter cloud capability contract in which it will seek proposals from microsoft and amazon in order to fulfill those needs. but, again, the department of defense cancelling the jedi contract saying it no longer meets the needs of the capability gap back to you, scott. >> but they're in the game that's what it sounds. ylan mu y with the update there. back with steve weiss and the gang having this conversation about whether as an investor you should own china stocks of any kind shawn, you do. you own alibaba, the name we are discussing with steve weiss.
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are you selling it here? >> no. i'm not selling it here. i don't disagree with steve. i think there is a -- an additional level or layer of risk, really any time you're investing in stocks where there is significant government intervention in the way companies do their business. i look at this from the perspective of what alibaba represents and as both an e-commerce player and cloud player and at some point there does come a tipping point for the chinese government that they understand that if they want to be able to compete globally, which i do think they want to do, that there are going to be some -- you know some push and pull here i don't disagree with steve. i think the biden stance on china is certainly a bit different than some anticipated. but for me i look at this the next couple years, i think there is an incredible amount of opportunity in this name it doesn't mean i'm loading the boat up on a million different
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chinese stocks but i do think that there is just this additional level of headline risk. i do want to note, scott, this is an investment year for alibaba. this is an investment not dissimilar to amazon they are putting back into the business this overhang doesn't help given that's the fundamental sideways $situation for the company this year as well >> josh. >> scott, let me just clarify. i'm not saying don't own any -- >> go ahead. >> i'm not saying don't own any chinese stocks you can own the b shares that trade in china china wants the capital into their markets. they want to legislatism their markets. i'm saying don't own the adr trading in the u.s. >> but once you get into don't own a but but you can own bp people say c you later.
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>> exactly. >> investors aren't dealing with that non-sense it doesn't sound to me like your run of the mill interference, josh there was a time you had liked the krk web all the big chinese internet names would you stay away as well >> no, and i think what's happened was the -- there is less of a need for u.s. investors to pick individual chinese technology or internet stocks or even own them as a sector because what's happened the last five years is that china has very successfully lobbied the index providers wsh msci being a good example, to have those index providers more accurately reflect the global market cap opportunity for chinese large cap companies. as a result, everyone that's watching in probably has some exposure to emerging markets through an index fund of some sort iemg or eem or whatever. in the msci emerging markets
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index. chinese companies overall are 37.5% and technology companies are 20%. a lot of that is china alibaba and ten cent together are 10% of the emerging market index. we have that exposure as a population americans -- we're in already. the question is do you want to overweight a chinese company is he specifically? i agree with steve, i don't think that's a game that a majority of people should play one last point, it's a little bit of hypocritical for us to look at the way in which china has to kind of slap some of their companies around here and there because we're doing the same thing it looks a bit more democrat the way we do it as i'm speaking there are a dozen different bills circuiting around both houses of congress to try to punish this company or that company or limit the other company. we do it too trump did it via tweet it's not. >> not to this extent.
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>> not to this extent. >> it's not china specific. >> no not to this extent, no but it's not. >> she is not. >> we know she is not. >> joe, i. >> and neither is china. >> china is trying to control its technology >> says the guy who has a big exposure in the iemg i wanted to come to you about that be quick. >> playing it through the dev owe etf. that's the right way to play it you don't want to overexpose to single stocks when you have the environment when the chinese government wants to literally take over the technology sector in their own company i got burned on p. d. dpp pin du oh duo i'll never own individual chinese stocks you can't in this environment. it's one of the reasons i got out of nike from the environmental standpoint i was concerned about what's going on right now in china much different environment than what's going on here in the
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united states. they are taking control of technology >> okay. all right. well we'll come back in a second with two bullish calls on dow components we'll debate it next in the calls of the day [wrestling bell rings] [music: “you're the best” by joe esposito] ♪ try to be best 'cause you're only a man ♪ ♪ and a man's gotta learn to take it ♪ ♪ try to believe though the going gets rough ♪ ♪ that you gotta hang tough to make it ♪ ♪ you're the best! around! ♪ ♪ nothing's gonna ever keep you down ♪ [triumphantly yells] ♪ you're the best! around! ♪ [ding] don't get mad. get e*trade and take charge of your finances today. ♪♪
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we're back sysco called the top he could second half idea at morgan stanley. seeing continued upside during the cap ex-cycle one of the top calls of the day. shannon, you own that top second half idea. big words. >> love to hear it. >> target, 57. the top second half idea only get fog 7% from here i don't know if that's what i expect from a top second half idea >> well, whether it's the second half or next couple of years, scott, i think that the -- the knock on cisco was everybody was talking about everything moving to the cloud to be hospitals, hybrid environments are going to persist. they're well situated to take advantage of that, to take advantage of additional outlays. great dividend, free cash flow supports that dividend i love the stock and i love it for a lot longer term than the next six months. >> pete, you own cisco as well
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what do you think about the top second half idea price target, $57 we're not talking about a monster rise from here at least according to this note. >> yeah, very stable company that we all know and kmuk robins done an unbelievable job over the years. but the performance has not been as great as so many others but it's old school tech i bought the name about a month ago. where it is right now. i create dividend yields by selling calls against it every week or month whatever works out. i like the name, don't feel nervous about the name to the downside whatsoever. when i look at the pe trades inexpensive still. especially if you trade against the other big cap tech names this name trades at pe that's palatable. but that's probably why we're not see as much upside. >> man you shouldn't have sold am ex- pete. >> yes i should. >> you should have the stock is up 25% since then
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goldman sachs is upgraded it today with a 30% bump. >> well here's the deal. >> okay. >> american express, great company, love them i was in this stock and trading at a 10 multiple when i got in then all of a sudden the multiple in my opinion got high are. yeah up 25%. compare this to capital one. another credit card type companies going head to head if you look at the three-month, year to date, the one-year or two-year you're seeing who outpaces the other one by the way, i look at capital one trading at nine or ten times earning and now at american express at 26 times earnings i like where "i" and rather be where "i." >> sold our producers today i will own capital one over am exall day long pete put his words with that up next, we've got pete back wel bivy.nusual actit 'lbeack right after this ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate.
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pete, let's do unusual you're hanging with mr. cooper today. >> i am hanging with mr. cooper. as a matter of fact, finance company. this is very unusual they're going all the way out to january. they're buying 10,000 of the january 35 calls, stock trading around 32 1/2. they are hedging themselves selling the upside call away from that, selling 15,000 of those. the next one i've got for you is interesting as well. work day
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we don't talk about this one often. stock was $2.80 back in february, now $2.40. they're buying $2.47 and a half, 50 cents and 76 cents. that one's stood out as well, scott. a stock that has been coming down, coming down, coming down since february maybe it's ready to bounce >> good stuff. we will see all of you in two minutes after this break in final trades that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud factories can use ai to automate the little things so they can focus on the next big thing. businesses that want to innovate at scale are going with a smarter hybrid cloud using the technology and expertise of ibm.
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so she used her american express business card, which gives her more membership rewards points on her business purchases. somebody ordered some laptops? cynthia suarez. cfo. mvp. get the card built for business. by american express. we'll get to final trades in just a minute. what a wild session for the nasdaq we're having our conversation, nasdaq is down 100 now it's only down 50. dow was touching a low of 400 or
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so, and we're watching the move in the 10-year note yield closely today sitting at about 136. key level, is that the thing to watch? we're watching the 10-year again. we're not worried about it going up, we're worried about it going back down. >> it's been the concern over the past month clearly, and avoid concentration as we've talked about at the beginning of the show clearly as you've said before, if it goes down below 120 you're going to see growth and cap technology be the favorite sector >> what's your final trade >> final trade is energy, go to honeywell. >> good stuff. shannon? >> striker the tale for reopening and health care is just getting started. strooiker is going to benefit from that. >> thank you for that. pete najarian. >> i'm going to give you coke,
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scott. i see call activity that says coke is going to have a nice report in a couple weeks >> amazon. this is the stiffest breakout i've seen in a long time it's real. there is no resistance >> all time high today along with facebook, microsoft, google and apple having a decent day on a town take as well. that does it for us. "the exchange" is now. and thank you, scott hi, everybody. i'm kelly evans and here's what's ahead today on "the exchange." china is cracking down on its own companies. didi shares are plunging we're going to look at why they're doing it and what it means for investing in china going forward. opec meets but doesn't make a deal oil sitting a six-year high. is $100 a barrel next? amc gives up on a shareholder. advertisers are giving up on apple. and wall street bankers who don't want to give up working from home ma


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