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tv   Fast Money Halftime Report  CNBC  September 7, 2021 12:00pm-1:00pm EDT

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to enjoy this incredible piece of news. >> she's got a good excuse and we can't wait for her to train up those new nintendo switch playing partners we know she's looking for people to destroy >> destroy on the game congratulations, d we miss you. halftime starts now. let's get to frank holland >> welcome to the halftime report, i'm frank holland. a downgrade for stocks is it time for a possible pullback how to navigate this market from here and the best place for your money for the fall and the final months of 2021 our committee today -- first, let's get a check on the markets now. the dow's on track for its worst day since mid august the nasdaq had a new high before pulling back a bit so investment committee, that's
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the set-up markets down a bit s&p down a third of a percent. nasdaq, pretty much flat but we had a lot of mixed data a lot of mixed notes morgan stanley, very bearish on u.s. equities largely due to expectations that the fed will roll back easy money policy g goldman saying that delta likely to hurt gdp then tom lee forecasting a record september, but saying you have to brace for a potential correction in october. then oppenheimer saying don't stop believing call that the journey trade, if you will pete, i'm going start off with you. how are you digesting these takes on the market and the rest of the year? >> yeah. it makes sense, quite honestly, frank. when you look at what we're hering there we're looking for a pullback why? well, because we've essentially gone to a new high almost every
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single day it seems like in the markets and people are just wondering when does this end and we just haven't really seen that but i think it comes down to a combination of a lot of different things, frank. when you look at the velocity of these markets, it's really lost the same velocity we had two months ago, three months ago, four months ago. we've really lost a lot of that of late where we're seeing is markets move in a much tighter range. we're seeing volatile till also close in today, we popped over 18 that didn't last long. we can't sustain anything in volatility much over 20 for any long periods of time you go back to may was the last time we had a couple of days or a week or so where we did something like that. so there's a lot going on here when it comes to all that. i think the reality is that the volumes in the market, this is a summer like we haven't had in a long time. i guess. because if you go back 35 to 26
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million contracts every single day is what we are trading in the derivatives markets. these are unreal markets the volume is strong velocity is not really there, and volatility has come in for me, i like at these various calls. i'm staying very, very bullish because i think that as we've gone through this whole thing, we've had a lot of stumbles. we've had thisand that we've had a couple of spikes of volatility and pullbacks, but they've been very, very short so i think it makes more sense to continue to lean long. >> so pete, you're staying bullish. morgan stanley, i want to touch on this with you with stephanie. what do you look at with the fed as being the catalyst for the market taking a downturn ad agree or disagree? >> i like the debate i don't want to have consensus we always have to have something to worry about that's what the market does. we climb a wall of worry i think september is going to be volatile especially because
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earnings season is over so now we're focused on the macro we know gdp is slowing we knew the second quarter was the peak we knew it would slow. it's exacerbated because the delta cases and the supply chain issues and the lack of sufficient workers but i still think you're going to see above trend growth in the u.s. and deventually all these things are going to reverse and that will be a nice tailwind for now, i expect volatility i think it will increase for september, setting up a strong fourth quarter >> i want to be clear. tom lee forecasting a record s september then a potential correction in october. are you saying you see that volatility leading to new highs in september and are you seeing that potential correction coming up later in the year >> no, i actually think september is going to be rocky it's seasonally a weak month for the year so i think that's going to hold true and i'm looking for opportunities though to rally into the end of the year because we still have a ton of stimulus
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in the system. that's not going away. data points are still really good on the economy and earnings will be just fine. i expectseptember to be kind o weakish, volatile, then i'm looking for opportunities to buy. >> opportunities, joe, that's what everybody's looking for right now. i see you hold netflix, setting a new record high today. where are you seeing the opportunities in this market and which of these forecasts do you agree with >> as it relates to equities, it's a complicated scenario to be timing when a correction is going to come. i maintain a bullish outlook i think it's difficult not to maintain a bullish outlook when you have the large majority of what the composition of what the s&p 500 is being megacap technology, continuing to move higher you've got apple at a new all-time high and now netflix, which is been a dramatic consolidation race for the better part of 2021. having this massive technical
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breakout i believe the technical breakout i talked about it last week on the show i think you can see netflix in the six and a quarter to 650 range. there has been some positive fundamentals, but there's also the technical factors that are contributing as well you can talk all day about when a correction's going to come i know for someone like pete and myself, if we see the evidence building, frank, that a correction is coming, there is many ways that you can hedge in the derivatives market, whether it's the use of futures or it's the use of options themselves. certainly that insurance, pete will tell you, is pretty cheap right now to buy >> i want to go over to you. goldman also saying that in their opinion, at least, the consumer, the consumer's starting to weaken a bit with these delta concerns and the potential fed tightening their policy and also we're seeing the stimulus come to an end to a large degree what is your take? where do you see these forecasts in your mind do you see a potential correction coming up in october? >> i don't
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i don't. and you know, when we keep talking about the correction which we've been doing for months, anticipating this correction, one of the things i believe is that any downturn is likely to be met with buying the t dip and where that comes from is liquidity via the fed. the taper. i know of absolutely no one who thinks that the fed tapering bond purchases will crush the economy. nobody thinks that that's not what's out there. so what we're talking about is removing an unnecessary accommodation. but what it will do is remove liquidities on the margin. again, this is not going to happen next month. this month maybe it's november. maybe it's december. maybe it's january when it starts, it's very gradual and the point that i'm making is for the foreseeable future, any downturn is likely to be met with still large waves of liquidity so tapering and the fed, that's not on my mind right now what is on my mind is delta. it's clearly affecting the stock
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market you can see it in the reopening trade, which has sputtered the last three months. i think we should be thinking about what if dr. gottlieb is right. what if this peaks in the next few weeks? then what happens to the reopening trade? i've made some moving, but i'm clearly in the camp that the reopening trade is where under be now let the faang names run. my apple, i'm loving that. google, microsoft, same thing. but be prepared for the reopening trade to take over in a few weeks. >> speaking of those faang name, over to dom with a news alert on apple. >> california streaming, frank that is the invitation that just went out from apple announcing its september 14th, septembe 14th event for the media at which it's widely expected it will introduce new iphone models possibly the iphone 13 as well as perhaps the speculation is, perhaps, new air pod models as
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well also checking what's happening, apple watch models remember apple trading at all-time highs so far in trading today. september 14th, 10:00 a.m., pacific daylight time. watch on apple.com broadcasting from apple park this has gone out. we usually see this event happen in september where the iphones are announced. last year because of covid, it happened in october. all of this supposedly there to help prepare everybody for all of those products that will be launched possibly in time for the holiday shopping season, so keep an eye on those apple shares, frank. >> i know you're ready for whatever you're going to announce you're probably going to be a buyer. a lot of people out there buyers apple trading at all-time highs. shares up 14% this quarter so back to the investment committee. will tech continue to be that go-to place for investors? >> market weight on apple, on
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amazon i'm a little nervous it's up 66% year-to-date when i look at it and i say it's only trading about 25 times earnings for all that great growth website revenues last quarter grew 71% led by search and youtube. that's what i want to make my bet on it's not that i don't like apple or amazon. they're very well liked. they're 100% buys. i have exposure. i like them, but prefer alphabet here, although i'm not buying up here if it pulls back, i'd love to get more >> stef, exactly how important is apple to the market, at least moving higher? we talk about those faang names being almost a quarter of the s&p 500 now. where do you see apple's plays in a potentially rally for the rest of the year >> it's important psychologically, it's had a nice
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run. a lot of people own it already we don't want to see it crash or pull back, but i don't think the iphone cycle, the next one, the 13, is going to be the super cycle. if i'm right, i think it might struggle here to go much higher at this point. >> apple held across the board on this committee. farmer jim, over to you. what's your take on apple? how important is it to the markets moving higher and where do you see the stock going for the restes of the year >> of course it's important because it's whatever 5, 6% of the s&p 500 and even if the faang is 24%, that leaves 76% of the market that isn't faang. right now, it has a bid. i'm riding it. long time viewers know that i picked up a trading portion around february or march around 120. if it gets up to 170, i'd let those shares go. you have to let apple run. the last five year, compound
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annual growth rate is 45%. that is unlikely to continue over the next one, three, our five years still positive gains, but i would look for leadership in the stock market to come from outside of these faang names that have been so dominant even as i maintain my core positions in microsoft, google, and apple, what i'm saying is let them run now, but when it runs out of steam, take your trading shares off >> i see you not only have apple, microsoft, crowdstrike, a pretty heavy tech portfolio. is that still the safe place to go >> in a world where we're questioning where the growth is economically, you look towards megacap technology and you see the representation of consistent, sustainable, double digit growth in the earnings report, whether for alphabet, microsoft or apple in the previous quarter was exhibitive of that when you're looking at apple,
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stef mentions who's the incremental buyer. i say who's the buyer of last resort, if we ever see a correction, for apple and a lot of these megacap companies it's the companies themselves. i think they're going to buy back about $90 million worth of their own stock this year. they're introducing products let's not dismiss how powerful this upgrade cycle is for air pods clearly, i think all of those are refreshing those on an annualized basis i just look at these names and i think the question you always ask yourself is if you're going to sell something, where are you going to reallocate that capital towards? i think that's the biggest question right now you're not going to sit in cash, depreciating asset at basically 2% per year, so where does the capital go if not, in a lot of these big technology names i know jim mentioned there would be a rotation, but that's a big question you have to ask yourself >> yeah, another big question is
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there any action on the options market for apple is stock up 177% year-to-date. pete, i know you're long on apple, but any other moves in the options market where you can play off this apple trade? >> absolutely, frank quite honestly, we've been seeing this not just recently, but going back the last week or two or three, we've seen upside call buying in apple that's extraordinary. 170, 180 going out in term, a lot being short-term but we continue to see that sort of theme play out and what i li like about apple so much is as much we look at, and we get nervous about the pauses and what's going to happen with apple and the little pullback it had, i never really got that nervous because when you look at the kbcompany and the cash, the cash flows are outrageous. joe was talking about the buybacks that's one more element.
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the reality of apple is this, that everybody seems to me not the committee. outside of this. what's the next move about the phone? i don't think the phone is the category we need to worry about. i think when we look at the phone, obviously 40, 50% of what they're looking for for revenues the reality is where are they getting the growth it's in service, wearables that's where the margins are as well i think often ttimes, we're not really defining what apple is and what they've morphed into. where they get better margins and better opportunity to create something more about apple other than an outside of the phone i think you could say the same about microsoft and some of the other greats the pause is okay. the pause wasn't necessarily a huge selloff t it was a pause in these stocks you go back and look at apple from early july and how it just sort of sat there. it's okay. what we're looking for is the pause to go to the next level
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and yes, we've seen a lot of option activity way before where we are now >> apple up today. hitting an all-time high now back to dominique. he's looking at microsoft's performance versus the other big software names >> the $2 trillion club. as for now, it's apple and microsoft, but when it comes to software stocks, it's really just microsoft and then everyone else not just because of the 2.2 t $2.2 trillion market cap the next is adobe. seven times the size of it but also because at that size, it continues to produce returns reserved for stocks with a fraction of that microcap. all names that have yielded returns between 30 and 40% just so far this year one of the bigger etfs is the i shares expanded tech software fund igv. it's been an underperformer
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against the broader technology sector it also lags the overall s&p 500 this year. fortnet. the fourth best stock in the entire s&p crowdstrike is another cyber name not in the s&p 500, but still up nearly 30% year-to-date, but it hasn't been all rainbows and unicorns with investors out there. check out auto desk, citric systems, coupa software. coupa reports earnings after today's closing bell and the options markets you guys were talking about that earlier, is pricing in what could be a move up or down of 7% on the heels of that report so there could be a lot of action in some of these beaten up software names frank, back to you >> appreciate it microsoft actually reiterated as a buy today by goldman sachs we're going to talk software stephanie, i see you have a couple of software names in
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including microsoft and crowdstrike. what is your take when it comes to software in tech? is that a good place to go as a safe haven or do you still see that continuing to be a growth >> i think you pick your spots, frank. i don't own microsoft at this point because i see other points anaplan. a cloud play still down 6%, but it's an enterprise it recovery play. they just reported last week and billings were up 36% so good visibility i also own cisco for the same idea, right? all about enterprise it recovery and the reopening. i just see other options elsewhere that are more attractive to me >> joe, back to you. i want to apologize, stephanie, you don't own microsoft, but joe, you do, along with crowdstrike and fortnet. what's your take on microsoft's performance versus the other big time software players? >> well, i think first of all,
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when i think about software, it's important to understand in an economic cycle, software tends to be very resilient if you see growth deaccelerate. in particular, corporations, the last thing they cut back on was their software upgrade there seems to be a defensive element towards software itself. that said, i wanted to stay high up in quality and microsoft is the name that clearly provide that is for you. i think a lot of the software names in 2020, they saw the opportunity of future revenue growth pulled forward in that digital stay at home environment dramatically so i was very cautious about entering a lot of those names. i did enter the cyber names. i think they're clearly where you're seeing a lot of positive momentum i have crowdstrike fortinet they've run extensively. i would not chase either of those names here, but on any
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pullback, i think you remain high up in qualify adobe would be the first name on a pullback that i would be looking to acquire and i do think you've seen a paradigm shift post earnings for salesforce that would be another name on a pullback i'd be looking to acquire. >> jim, you said that dr. gottlieb said that we were nearing the peak he said the worst is possibly coming with school being an incubator for the spread so with that in mind, does that change your take on a software play i know you always own sales force. great performer. tripling the market over the last month >> i'll talk about the stocks. on dr. gottlieb, the last i heard from him was late september. the implication of a peak not being here yet indicates there would be an increase to get to the peak nonetheless, the point stands that we are looking at possibly peaking sometime in the next few
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w we weeks. you have to think about what happens on the flip side of that twilio is another software stock. i own portions in those. about 4% of the portfolio. it's not a lot the reason it's so small, i think there's going to be volatility in these name, particularly as interest rates rise, which i expect they slowly will and just these high valued, sales force and twilio, if they come down, i'll add. >> pete, over to you i know you own ibm other thoughts about these software stocks? >> yeah, you know, i think by far, i like microsoft the best and i realize it's made this incredible run from the 230s up to over 300. i still like the stock to go much higher, frank i look at what they're doing in the different areas they've defined and where they want to grow including the gaming, but
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some of the acquisitions have been impressive. joe brings up buybacks you look at their free cash flow i think you start looking across it what their cash position is versus debt. this is just a really, really well oiled machine and i think microsoft has plenty of more room to the upside as they continue to grab more and more not necessarily from amazon, but they grab more and more within the cloud. i think this is a company that's got more room to run i'm excited about that name. not as excited about ibm i've held on to it for a while stef brings up cisco it was way too cheap if you go back to the start of this year and you take a look at cisco, you just shake your head and go why is it trading so inexpensively? but it's done that for a long period of time this year, it started to take off prestty nicely despite the fact it's done well, it still trades inexpensively.
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>> let's bring in mike he's taking a closer look at the market caught between caution and crazy. >> there's a case that says the market's up a lot. haven't had a 5% pullback since last fall. we have a soft patch in gdp growth maybe deferred selling so expect more volatility. it makes a lot of sense. the good news is that this is something close to the consensus now and more importantly, the market itself has been tacking in that exact direction and displaying those types of concerns in other words, it's been more defensive and durable growth sec sectors that have been working recently as opposed to the cyclical ones that peaked in june at the same time, the crazy piece and i admit this is eye of the beholder stuff, but a lot of people have been concerned with
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things like rampant volumes in the speculative call options there's crypto action in nfts. you had the story over the weekend in "the wall street journal" that people are looking for unratedjunk debt it seems as if the risk cycle along this one quarter is getting nutty. my struggle is to figure out whether in fact you can continue to sort of set that aside, a separate market in a sense, and i think you can. it's not clear to me that the core of the market with this almost methodical and orchestrated rotation higher has entered a giddy phase that would reflect some of the crazy adrenaline fueled stuff that's been going on in the markets final point. market has done its steady work, running higher this year even as things like ipos, cloud stocks, cannabis stocks, solar stocks,
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spacs, they all had these massive peaks. things like quality stocks and those companies returning a lot of cash in dividends and buybacks have begun to outperform if you're going to the market saying hey, sober up, you have to get ready for a rougher patc in the economy market's already there in a large sense. >> appreciate it pete, over to you. i know you look that rotation in market leadership, right >> yeah. absolutely i think that's something that really, it stands out for me, frank, because for a long time, we were so concerned because we really did look at the top four or five stops. we've seen this really healthy rotation i think that's really important. that's why this market has continued to move to the upside. we've gone through some of the pauses in apple and microsoft
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and some of the other names on the tech side of things then we had leadership coming out of the financials then it was energy, then industrials. materials. we've had all of this rotation and i think that's the part of this market that makes me feel better about the fact we have moved to these level we are. now, are some of these various specific names a little stretched? absolutely but i do think overall when you look at some of these different sectors, we've had nice rotation and payofbecause of that, it kee bullish. it took a while to go through these rotations and now we're starting to see what we're going into in the fall and as long as we continue this rotational process, i think we have a market that can go higher. >> really quick, small caps coming off back-to-back weak gains. up more than 5%. oppenheimer with some research, since mid may, growth stocks have been the best performers, up about 10% what's your take >> well, the take is that small
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caps in the russell itself has recreated itself as an index where healthcare is down as the biggest sector bio tech has made a little bit of a comeback. you have two names editas and natural gas prices surging there. you have console energy, southwestern range resources but i think you want to stay up in quality bj wholesale and papa john's pzza two names i like >> the invest committee, their latest buys are up next. plus, netflix hitting new highs. the new target for the stock the committee debates if you should add it to your portfolio at these levels. you can always watch or listen live on the go on e thcnbc app halftime is back in two minutes.
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public health officials in idaho have activated crisis standards of care in the north part of the state. they cite a massive increase in patients and severe shortages of health workers and available beds arc average new cases are ten times what they were at the beginning of july. the taliban has announced leaders. many are part of the taliban old
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guard. no women and no non-taliban appointees and the interior ministry will be run by the leader of the haqqani net work, which is designated as a terror organization and the taliban seemingly ignoring calls to share power with other groups. and just hours before that government announcement, taliban fighters fired in the air. some were demonstrating against pakistan helping taliban forces. there were some women claiming their sons were killed by taliban soldiers back to you. >> thanks. the investment committee is making some moves. jim, you have a new stock buy? >> yeah. adding to the reopening trade by buying wyn resorts i think knows the casino, gaming stocks, have fallen off again since earlier in summer. the thing i like about it is
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first off, i think the economy is going to reopen more when we get past this delta peak, but the thing i like about it in particular is the geographic diversity is that they have locations in las vegas, boston plus, they've got wynn interactive. that got a private equity infusion from bill foley, a noted fintech entrepreneur this is a great mix of businesses here. i really like the price i am getting it for and again, i'm adding to the reopening trade. i'm happy to do so >> you know, speaking of macaw, wynn's license there got extended maybe part of the reason it's up 3% today stephanie, you own wynn. you bought it last year. >> it's been painful it's down 28% from its high. down 10% on the year this is a macaw play you need macaw to recover. it will, i believe patience is required in the meantime, they have 30% of their ebitda in las vegas and
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boston and that really carried the quarter last quarter so they're buying time they're executing well operating costs were down 24% year-over-year i'm sticking with it >> pete, you bought more capital one. those shares are up more than 100% over the past 12 months >> yeah. it's a great company what they've done quite frankly, frank, is just everything they've done almost everything right. when i take a look at where it's trading presently and where it's pulled off from, it's about $20 off the high i think it's part of a rotation where it's easing back a bit gives us an opportunity to add more i did addmore. i think there's plenty of room to the upside for this company and you look at the credit card side and the competition, look how it trades versus the competition whether you're looking at american express, visa or master it is very inexpensive
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>> turning our attention to the call of the day. netflix hitting new highs. shares now up 17% in the past month and a new bullish call on the stock. atlantic equities raising its price target to $780 from 690. a new street high. also our call of the day joe, you just bought some last week >> i did and listen, i'll be candid i have nothing to do with fundamentals you've got a research firm now raises the target. they're reacting to the higher price. that's all they're doing but you had a stock that was in a significant consolidation range for multiple months. it was very similar when you pattern recognize it and you're looking at a factor and momentum to what we expeerrienced with amazon i believed it could go to 625, 650, but that's the spot where it will land you've reestablished positive momentum after a long period of
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consolidation and that's something that is sustainable over not just a couple of weeks, but should be sustainable over an extended period for multiple quarters >> pete, you also own some netflix calls. what's your take >> yeah. you know, frank, i'm listening to joe and i would agree with what he has to say aboutthis it's not necessarily on the fundamental side look at what the stock has done in a short period of time. not just in the last week, but look at the last couple of weeks of where the stock was and where it is now. it's absolutely catapulted to the upside so i think there's a bit of a momentum play now. that's probably why we are seeing significant amounts of option trading in here so a lot of people looking for a bump to the upside it's very, very short-term options trading for just one week or so so that's kind of where we are right now. this is a trade for me i'm not in the stock but i certainly do like the calls right now.
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>> stephanie, i know you're not in the stock either. part of their bull case here is that almost a quarter of incremental revenue between 20 and 2025 for netflix is going to come from u.s. subscriber. do you think they have that much more revenue growth in the u.s.? >> i think they're tapped out. that's one of the reasons i don't own it i owned viacom i don't own any of the streaming names. i would take a look at disney if we saw a pullback. it hasn't acted really well as of late, but if we see a 10% pullback, that's the one i would go with. >> all right coming up, boeing lower as its la largest customer ends talk to build jets the trade is next here on halftime
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>> much needed shot in the arm for the industry top beneficiaries could be companies like brink charging, go, and chargepoint, which are underperforming the s&p 500's 21% gain so far this yr.ea that's your esg fast fact of the day. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley.
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in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart.
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boeing shares lower after rna nar ended talks. jim, what do you think >> i'm not happy with the share price performance. with letting weiss be white. excuse me. right. we'll get to that another time they're known for being a bare nucl knuckled negotiator. the reason i think that is because it's going to be pretty hard for them to get a-320s to
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expand the way they want to. their order book is full number one number two, ryanair doesn't want the added cost of having two airplanes in their fleet they have the 737 as their main operation, excuse me, their main operating plane. so i think they will come back to the negotiating table i think that's all this is as for production issues with the 787, which is also weighing on it, that will be worked out the faa is in no mood, understandably, no mood to play along with boeing so they're making this hard for them, but eventually it's going to get worked out this is a multiyear recovery story. i'm not going to get worried about two or three months of underperformance >> stephanie, you own it >> i do. it's been painful, too it's a turnaround story. ryanair, i think the same thing in terms of a negotiation
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tactic they have 450 737s already so they're going to have to upgrade some of these because the max is more efficient so i think this is a tactic. we'll see how it all plays out i'm not really playing attention to the 787 because it's really about the 737 series and the max. so i'm going to stay patient with it. >> all right straight ahead, pete's latest trades in unusual activity and tonight at 6:00 eastern, don't miss a special edition of "fast money" back to business. americans are coming back from vacations. their kids are going back to school where are the opportunities for investors and how has covid impacted the return to the workplace? 00asrn tonight at 6: ete here on cnbc halftime back right after this
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time now for unusual activity pete, what are you seeing? >> i got something really unusual for you, frank earlier we were talking about apple and i talked about how everything we're seeing optionwise for the most part is very, very short-term. apple, just a few minutes ago, we had a huge buyer. 130,000 of the september 10th
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expiring apple 157.50 calls. just an amazing sized trade. that is what we see often ttime in apple are very, very large upside trades. something i talked about at the top of the show when we were talking about apple and how it trades that's pretty interesting. i think you can add that along i continue to do this where i'm long stocks but i want an added b beta kicker and i'm buying calls. i've done the same in facebook the reason i did that was unusual option activity we're seeing in facebook the stock was trading just underneath 380 and now it's trading about 380, but we had some aggressive 11,000 of the september, 11,000 of those, they expire on friday as well i got one that's not going to expire on friday october 22nd is where they're
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going to expire. the 140 calls. stock was trading about 110. that's lower than that now, but they bought 6800 of the october 22 expiring 140 calls. went for about a dollar. there were two large up from 6,000 or 6800. pretty excited about this. i love we're seeing this during the show so it's very much live. volumes are just off the charts in the derivatives world >> coming up, experts are ready to answer your questions we're back right aerhi ft ts.
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welcome back the investment committee is answering your questions first up a video question from jim in cincinnati. >> caller: my question is on rocket mortgage. the company has had consistent earnings quarter by quarter. they're getting into solar, not all efinancing interest rates are low, applications for home mortgages are up i'm just trying to understand why the company is underperforming the marketplace. >> john from cincinnati, a kind of okay hbo show, but a great question from him. jim, what do you think >> yeah, this is a tough one, rocket companies, because we knew that the housing market was on fire until really early this year and mortgage applications have
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fallen off a bit as interest rates have risen you know, if you think, as i do, that the 10-year is going to continue to rise, that the yield curve may get a little bit steeper, i hear you that they're doing more things like auto loans, but they're going to be known as a mortgage company. and mortgage rates are going to go up as interest rates go up. that has more of a strong hit to the housing demand so, i just think it's a tough place to be right now. i don't think it goes lower from here because there's still demand for housing, but i just think it's a tough place to be i don't think you're going to get the net interest margin that you're hoping for as interest rates go up. >> pete, we've got a video question for you >> hi. this is jack and this question is for beat. he had mentioned buying a number of calls in the ev space last week i think he mentioned world calls, energy transfer, blink. but what about wavolta charging
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went public on august 27th, spac merger and it has had a high integration this morning as well as last week so, do we buy calls in volta thanks >> what's the call are you going to buy calls in volta, or do you recommend doing that >> it's a great question the reason i would say yes would be not because i'm seeing unusual activity right now but the idea of knowing exactly what your risks are going into a trade. this is another in the ev space, charging stations, all of that we know how important all of that is and how fast people are trying to get out there. there are so many different companies. i would only do it through the options because at least i know what my risks are going into the trade. but i'm not seeing unusual today. >> stephanie, we've got a question for you jim in new york, they want to know your outlook on match group. are you swiping left or swiping right on the stock >> i like it very much it's only up 5% year-to-date it's a spinout from iac, and i
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like spins it's a reopen play, as people want to date in person i still like it very much. >> match group also offering a verification badge on the site i'm not on it myself, any of the sites, but did a story on it they offer a badge so you can have your vaccination status big reopening play right there jeffrey in brooklyn wants to know should they add pause to their position or are they -- i'll do the rim shot ahead of time, barking up the wrong tree. so, jeffrey, i added pause to my portfolio a long time ago, and i think you should as well it is a very diversified way to play the growth of the pet industry more households in this country own pets than have children. i know a lot of people wanted to own just chewy chewy peaked at 120 back in february you get so much more you get fresh pet and you get chewy, you get all of it
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diversified pet industry etf >> final tradeans d hopefully better jokes and puns next on "halftime. stay with us t. ice works fast. heat makes it last. feel the power of contrast therapy, so you can rise from pain. our retirement plan with voya, keeps us moving forward. feel the power of chey, kevin!rapy, hey, guys! they have customized solutions to help our family's special needs... hey, graduation selfie! well done! and voya stays by our side, keeping us on track for retirement... ...giving us confidence in our future... ...and in kevin's. you ready for your first day on the job? i was born ready. go get 'em, kev. well planned. well invested. well protected. voya. be confident to and through retirement. zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year.
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it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪ this is wealth. ♪ ♪ this is worth. that takes wealth. but this is worth. and that - that's actually worth more than you think. don't open that. wealth is important,
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and we can help you build it. but it's what you do with it, that makes life worth living. principal. for all it's worth. (vo) at t-mobile for business, unconventional thinking means we see things differently, so you can focus on what matters most. whether it's ensuring food arrives as fresh as when it departs. being first on the scene, when every second counts. or teaching biology without a lab. we are the leader in 5g. #1 in customer satisfaction. and a partner who includes 5g in every plan, so you get it all. without trade-offs. unconventional thinking. it's better for business. (judith) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? don't you just ride the wave? (judith) no - we actively manage client portfolios based on our forward-looking views of the market. (other money manager) but you still sell investments that generate high commissions, right? (judith) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest.
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(other money manager) so when do you make more money? only when your clients make more money? (judith) yep, we do better when our clients do better. at fisher investments we're clearly different. . and time now for final trades steph, kick us off >> mcdonald's. it acts like a staple and i like the diversification versus the cyclicals that i own they've done a good job with digital, drive through, delivery, and you get a 2.2% dividend yield >> great college football this week, frank. football is back, pros coming. draft kings breaking out
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>> i'm picking tampa bay on thursday farmer jim, over to you. >> citigroup, ten years at 137 looks like it wants to go higher i expect it to catch up. >> pete, last but not least. >> looking at altria group this is a stock that hasn't been talked about a lot i'm seeing call buying right now. >> that does it for "the halftime report. "the exchange" with kelly evans begins right now thank you very much, frank and welcome to "the exchange," everybody. i'm kelly evans, and here's what's ahead a wobbly month for markets as the dow and s&p slide today. morgan stanley is taking u.s. equities to underweight. they'll join us to explain why just ahead the president's tax plan includes more than 80 tax hikes and changes to fund the budget, but there are three that raise the most money and have the biggest impact on corporate america. and the nfl season does begin this week and a number of betting names coul

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