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tv   Fast Money Halftime Report  CNBC  November 15, 2021 12:00pm-1:00pm EST

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on an incredible run that will be a great one, too. busy again >> if you're looking at the markets, taking a short dip here lower. kind of coincided with the 30-year yield crossing above 2% as we see the ten-year getting closer to 1.62 let's get to the judge and the half >> welcome to the halftime report i am not the judge i am brian in for scott. well, the everything rally rolling on, mostly, as investors pull a taylor swift of inflation and shake it off the question is, will i keep making money into the new year in stocks or should i book some profits now? it is a very good question and we are going to answer it with our all-star group today which including jenny, jim, joe, and pete najarian, cofounder of
12:01 pm cannot wait. get to them in a moment, but first, the score all the major averages now less than 1% from new record highs. yeah, there's a little red on the screen, but we are seeing the markets down just a touch. in fact, some of the indexes are higher you heard carl talk about the move in the ten-year, but jim, let's kick it off with you we're down for certain indexes the reality is this, we've had one of the best two month stretches in 20 or 30 years for equities every day was like, oh, eight-day streak nine-day streak. is this fund managers, i hate to use the word, semipanicking, they need to load up on winners so at the end of the year, they don't look like dunces >> yes, it is. that's part of it. brian. and by the way, kbgood to see y. i think this rally continues and
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k crescendos through mid january to late january. it's reminiscent of 2017 that was a gang busters year then crescendoed into january. then you had the vix, volatility note hiccup that caused things to come crashing down. it was just a pick up in volatility i don't know what that catalyst will be and i don't care because the next two months should be clear sailing. it's for the reason you mentioned of any institutional manager has held cash is now desperate to catch the index and all they can do is buy the other aspect is who wants to sell if you're a taxable investor and take gains now underpinning those two technical forces are the fundamental forces if you've got profits very high and still growing, you've got infrastructure bills set to come that spending will be spread out over many years so it's not immediately inflationary the build back better bill with its potentially negative taxes seems to be on hold, at least
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for now. the fed, sure, it's tapering, but it's still accommodative delta is waning. need i go on there are both fundamental and positive reasons this rally will stay in tact >> there you go. jenny, let's talk about the bbb, the build back better because jim said it looks like it's on hold in the initial version, there was talk about higher capital gains taxes on certain classes now you've got people talking about a tax reduction if they raise the salt cap i don't want to go into a political conversation about taxes, however, if we're not seeing the indication of likely higher capital gains, jim's right. now don't have to sell now, if that changes, you might want to sell before the year and lock in some profits at perhaps lower rates? >> here's a little bit of a counterintuitive thought what we're doing in my office today is harvesting capital losses and we don't have many. just a few but to whatever degree we can for taxable portfolios that have
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realized a lot of capital gain, we're going to off set them. now, two or three weeks ago, i was contemplating not doing our traditional capital loss harvesting because i thought, wow, if tax rates are higher next year, then those losses will be more valuable to me next year assuming they plateau so i think there's a couple of different angles on that maybe it's like the few loser stocks out there are actually trading down more because we're seeing the capital gains rate is likely to stay stable for the majority of americans. just a thought i think by and large, taxes are staying flat so you can make whatever edidecision you were planning to make anyway. >> there you go. joe terranova, buy high, sell higher should we be buyers of the macro market here or is it a time to be super selective >> good to see you, brian. tough loss for your chargers yesterday and to pete's vikings.
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you never want to sell a quiet market that's for sure. now you're 20 plus days seeing the s&p not have a 1% or greater move there's a lot of calm and tranquility right now in the s&p. i think the s&p is properly responding to a very surprising earnings season when profit margins expanded versus the contraction that the consensus estimates were calling for and i think more recently, you have to look upon falling prices for energy, natural gas and crude oil, both down for the month shipping costs beginning to fall the baltic dry index beginning to come down as well so i think all of this is really favorable for investors as we move towards the end of the year and i think today, the real driving indicator is that as you mentioned before, treasury yields are beginning to rise you have a 20-year bond auction. $23 billion worth on wednesday we all remember the more recent bond auction which was certainly
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less than we'll just call it disappointing. that's clearly what it was i think overall markets in the near term are responding to treasury yields, but there's a tranquil environment that suggested a continued move higher into year end consistent with mr. all in jimmy's comments >> good context. it's a shame you're going to have unexpected microphone problems for the next 30 minutes or so, but don't worry, they're transitory >> that's good that's good. >> and i had herbert as my stating fantasy quarterback and lost to my fantasy weekend knocked out of my survivor pool because of tom brady and the stupid buccaneers, ten point favors losing to washington. pete, back to the markets here are you a buyer of technology? joe made some good points about things a little bit easier jim, as well are you a buyer heading into
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year end >> sure, i am. absolutely i think what we're seeing is what we've seen the entire year, which has been part of the year we've gone up in a fairly, you know, consistent base sort of a move to the upside it seems like, a very method cal move i think it's because of the he healthiness of what we've been saying it hasn't just been technology the faang names. it's been a combination of different sectors. there are times where materials seemed to be the leader. industrials have been the leader financials have been the leader. we're looking a t the ten-year just hanging around somewhere close to call it 1.5 i know today it's 1.6. we've been in a tight range there. for the vix as well. we're looking at a volatility index, it's gotten up there towards 20 on a couple of occasions, but for the most part, you can almost close your eyes and say i think the volatility index is trading close to 17. you'd probably be right.
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i think the consistency of what we have been seeing in the markets is always very healthy i think it's something we've all been very impressed with and you just have to continually move around within the marketplace. i think anytime you're finding yourself looking to maybe make a change, you've got to make that change and then you rotate into something else that's why i think the markets are sitting where they are we're literally 1% off of all-time highs after all of what we have gone through and the shortages and everything i think that's why we're sitting where we are and why the earnings season was so powerful this particular quarter. >> might be the 60 minutes affect because they had a segment last night about supply chain problems appreciate it. eight months late. a rivian, rivn, it's up again. like 18% 18 bucks right now are you -- book some profits
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>> i am. well, you know, not yet. >> i asked you two things. >> i'm still holding on to it and not looking to take a profit i'm waiting for the options to come out and that will force me probably to make some decisions. right now, it's just a stock, as you know when we start to have options, we start to see a little bit of those volumes pick up and that type of thing and see what the implied volatilities are that might make my change my mind for right now, i love this company. the idea that i was able to luckily get a chunk of this as it came out of the ipo 78 bucks, this is a stock i've been waiting for. it's one of those names where you've just been sitting there everybody said it's just another ev company i don't think that's really the case and i love the fact they've got the ties to amazon as well as what the ties are as far as the investment from ford and i know we've gone back and forth a little bit with phil lebeau, but i don't think ford wants to sell this i think ford is probably going to continue to hold on to this
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we'll see, obviously, over time, but so they've got their 10% then you look at amazon with their 20%. i think amazon is the perfect feeder for this company going forward. >> you could see maybe a point where the 10% stake in rivian becomes as valuable as the other 90% of ford. not yet, but it's not impossible, at least at this pace we're right now, more on the markets and inflation. the last time that inflation was running this high, year-over-year, ice, ice baby was the number one song in america. 1990 if inflation moves up anymore, we could get into 1982 type territory. but the question is, why hasn't the stock market or the bond market really seemed to care let's stop, collaborate and listen the mike santoli who is here looking at whether the broader markets are underreacting to a true threat in inflation mike, what say you
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>> you know, brian, i would say not yet. i don't think at this point the fact that the markets are largely shrugging off the high inflation number means they're whistling past for one thing, this idea that inflationary surge is going to be transitory, it took some hits and rightly so the fed has underestimated the degree to which high inflation numbers would stay around, however, we're not beyond that point where the transitory point was supposed to be over. just keep in mind, the consensus forecast for cpi was 5.8 for core, came in 4.6. obviously upside surprises, but we knew we were not going to be back near normal, so we have a few months grace period on that. the fact we have strong underlying growth is another distinguishing factor. the fact you have companies being able to navigate this period, preserve their profit margins. analysts and investment managers have never existed in an economy in the u.s. where you had double
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digit nominal gdp growth and therefore that's flowing through in a lot of ways into companies bottom line, top lines so that's been a different factor right now finally, i do think you have to, you know, be open to the idea that we're not going to be able to ignore it forever so the next few months statistically, we should expect the year-over-year inflation numbers to be high because a year earlier, they were very low. depressed. until we get to march, really that's the case. you've been talking about the seasonal affects there's a stutter step in the year end rally now to thanksgiving so who knows what it means now until the near term, but it makes sense that companies are able to capture some of this inflation it's almost all coming from durable goods as you know, brian. >> it is a good case there. back now to jim because jim, i understand that we view inflation, some of us of a certain age view inflation of this nasty thing the last time it was this high,
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the ten-year yield was at 8% and mort mortgages are 10%. things are very, very different. there are other assets you can invest in as well and inflation can be good for certain part of the market can it not particularly energy, material, industrials, and you've got the infrastructure bill being passed you could make a case there's a very good thing happening with inflation for certain parts of the market, could you not? >> you could and i'm going to answer your question there, but at the end, i want you to tell me what 1982 bands we're going to be listening to if inflation goes higher. not sure if it's donna summer or queen or whomever. just to keep this simple, people often hear that stocks are a good hedge against inflation and they are maybe another way of looking at that is that the forces that have inflated goods are also inflating asset prices if that's low interest rates or the fed buying bonds, either way, you
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have to be in the stock market to participate in that i happen to believe very fully in what you said, which is that early in an economic expansion, which is where i believe we are, and an expansion that is set to continue as bottlenecks are unclogged and as this infrastructure bill takes hold and progresses this expansion through the coming years, you're going to find the values and the cyclical stocks are where you're going to get the best profit growth for the next six to 12 months, i see energy stocks, industrials, financials, material stocks and people know that i'm about 60% invested in my portfolio in that sector most of the rest is growth at a reasonable price technology stocks the faang stocks will do fine, but those cyclicals and values are going to be higher profit growth and higher price increases in their shares. >> yeah. and ironically, the world acard cording to garth came out in
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1982 and the number one song was up where we belong by joe cocker and jennifer warrens and i wonder if that's symbolic of the market inflation can be bad, but it can be good. are all the part of the market up where they belong what would you buy if inflation were to last >> okay. so we actually just went through this exercise last week and i've got a list nfor you. you want to own companies with higher fixed costs, higher prices power, lower labor, exposure so we came up within our portfolio things like united rental, chevron, royal dutch and the financials, american express, new york community bank things like that where there's pricing power where they're not depending on labor when you said things are up there where they belong, that's tricky you don't want to own companies that are priced for perfection and i think that there are a lot that are up where they belong as
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long as there's not a lot of inflation. we would back off of the faang stocks, high multiple stocks that have high multiple reasons for whatever, they're just trading at 20 or 30 or 40 times earnings so yeah, i'm not sure that things that are up where they belong will be able to sustain that in a high inflationary environment. we're looking more in the weeds. also, i mention to mention real estate i think the real estate investment trusts have really lagged over the last couple of years. they could benefit really nicely i would not be looking at the top. i would be looking at the bottom in terms of valuation and where you want to be >> okay. seeing the inflation trade is quote, far from crowded. in other words, there's room to make money your thoughts. >> there is, but i think we have to be careful and i happen to agree with the strategy that jenny is defining in terms of
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allocating towards inflation friendly assets. equity offer the best hedge against inflation, but understand there are policies that are available there are tools that can be implemented for president biden's administration to kind of fight the inflation now first of all, esg is inflationary in its nature we understand that so that component of it and clearly with the electrification of society and the move to decarbonize society, that's going to change. but brian, guess what. we have these tariffs still in place from president trump's administration president biden speaking with president xi this evening. the quickest fix for president biden's administration would be to roll back some of these existing tariffs, which without question are inflationary of their nature so i would kind of keep an eye on that and i'm not necessarily sure that there aren't various
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aspects of inflation that clearly are going to be transitory yes, some of them related to esg and wage growth are permanent, but a lot of this is going to be transitory so i think i'd be careful here going concentrating specifically towards inflation protection >> great point those tariffs, they're still there. still sitting on all those goods. all right. the nasdaq 100 is a skosh lower today, overall, it's been a good recent run for big cap tech names. 78 are up this quarter with nine up more than 20% so our next guest is removing his cautionary call on the nasdaq let's bring in now jonathan, chief market technician at bay crest. what are you seeing with the nasdaq or the nasdaq 100 from a macro level in particular right now? >> hey, brian. so we were on with you guys november 4th put on a tactical cautionary
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call on the nasdaq at that point, just seemed things were a bit overextended we looked at some short-term me metrics. it was about as extreme as we saw all year and we just thought the risk wwa that there would be a little pullback or pause as it refreshes. we got about a 3% drawdown on the nasdaq, which in this, it's not a big move for the nasdaq, but given how strong it's been this year, it's tough to go much more than that i think what changed for us is last week and you guys have been discussing this in the face of that much cpi and the nasdaq showed good resiliency we're getting another test today. yields are back up nasdaq is lower. at this point in the year, the calendar, you're kind of running out of runway to see that big, bigger drawdown, so we're just
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saying that things have reset, come in a little bit i know that nasdaq outperforms if yields get higher we like other areas better but i think the risk of the blow off move has been alleviated a little bit >> joe, you jumping in here? we'll get to him in a second jonathan, that is the macro tactical call. semiconductors, you're off a little on some of those, but there are names you still like let's talk about applied materials. lam research a lot of viewers would buy the sox index and let it ride. i think you're saying you need to be more specific even inside of groups or am i reading it wrong? >> i think that's accurate some of the etfs tend to be very market cap dominated
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smh is very heavily weighted towards names like nvidia. which has been a massive performer. it was up 50% in the last month or so. th that's the type of action in the nasdaq that concerns us, but there's names as you mentioned that have basically just started to creep out of these six-month basis and we think those offer much more timely and attractive entry points as opposed to the broad-based etf here >> good stuff. joe, i know you now have a question jump right in. >> i do, brian, i don't think you were kidding about cutting off my microphone earlier. the last experience with rising yields for the nasdaq in 2021 was that as yields rose, there was this by ifurcation in termsf performance for the nasdaq overall. a lot of the hyper growth names really struggled saw significant double digit declines is that the kind of environment you could we could be challenged
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by see a crowdstrike, which is down 10% today, or that type of hyper growth name really struggle, but yet you would see resiliency in a lot of the megacap technology names and less pe oriented ones? >> yeah, i think that's fair >> the reality is we talk a lot about yields, but they aren't really doing much. ten-year yields have been on either side of 150, 160, so you know, i think it would really take kind of that move up north of 180 in a short amount of time to really kind of scare some of those high multiple names. but to your point, there is going to be some underperformance in some of those again because they don't, you know, they probably don't have the valuation support and you know, some of them got a bit over their skis i would say. >> jonathan, we appreciate your views. bay crest. welcome back anytime
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thank you very much. >> thanks, brian >> let's go around the horn an maybe stay onthe idea, you're welcome, of semiconductors pete, you sold some amd calls. there could be many reasons for selling calls. why did you sell out of amd options? >> it's been a monster where we have seen this continuous rotation from options where they're going at a higher strike and going further out in time. so this one actually started to reach out to the point where it was starting to lose time, so i just decided to exit that and waiting for the next time that we see what's been this rolling thing with amd i like marvel, micron, a lot of these names. i still own intel. there's a lot of areas within the semiconductor space, but look at the smh how it's gone from 260 up to 305 it gives you a sense of how stropg an strong and power this move has
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been different participants along the way. obviously, nvidia has been one of the major components, but there are many, many others include l qualcomm and others where you can see names participating on this big move >> i'm glad you said qualcomm. jim, you own it. you have for a while you thinking about selling as it explodes to the upside >> it's got further room to run, brian. and you know, one has to remember that for most of this year, it languished. set a 52-week high an all-time high in january. it went down by about 25% before in the last few weeks setting a new high i think it will go well above 2$200 a share with the growth rate and earnings they're showing, they should have a 20 times multiple and next year's estimates are well above $10 a share might do it this year. i think there are those naysayers who want to say that apple is going to insource the
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chips that qualcomm is providing. i say no way all right, the int lek library is rich. this should be a 20 times multiple stock no question about it >> yeah. a round trip back up to 166. jim says 200 is possible thank you very much. let's switch gears and go to boeing shares up nearly 5%. one of the best in the s&p 500 phil lebeau is tracking why boeing is doing so well even as airbus lands a big order from air lease. >> we'll talk about the order in just a little bit coming out of the dubai air show, but it's in the dubai air show or at the show where one of two pieces of news that came out that have really given momentum for boeing and boeing shares this morning that piece of news come frg a boeing execut who was doing an
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interview is that the company is nearing the resumgts of delivers of the dream liner they've been suspended while the faa is working on the protocol in making sure the plane the up to snuff in terms of what's expected before it can be signed off to be safe to fly. then you have the 737 max news this came out of china with china saying that they are getting close to recertification on the max remember, it has been grounded since back in march of 2019. and china orders are critical to the growth of not only the max, but really for boeing's commercial unit overall. the orders are 20% of the max backlog according to jeffries. those china orders are approximately 10% of the deliveries through 2024. so if you take a look at shares of boeing and again, we're going back to march of 2019, that's when the max was grounded.
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china orders are approximately a third of the 737 max inventory remember, there are so many of these planes that were built and they continued production before they suspended production. they're parked there so they want to start delivering some of these to the chinese airlines and quickly, i want to take a look at shares of boeing versus airbus over the last year because you mentioned that huge order that airbus landed you know, indigo partners landing or placing an order for 255 aircraft you talk to barry of frontier, one of those indigo airline companies, they're ordering 93 a321 neos this is the first big, big order at an air show before the start of the melt cdown of the global aviation market. >> get some of those planes out of the california desert
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a lot of money in boeing, dare we say taking off today. jim, you own boeing. got to love this >> well, i do. and phil hit the major points. listen, president xi and biden are meeting tonight. i'd love to see an olive branch extended in terms of the 737 max being certified and orders coming in, but there's something phil didn't mention. this dubai air show is very important. this is where big orders are announced. i really want a couple of big orders to be announced by boeing because if you go back to the summer, boeing walked away from the table with ryan air for a multihundred dollar deal for 737 maxes. if they walk away this week with big orders, that puts the pressure on ryan air to come back to the table if they want to get any any planes within the next five years. if that happens, i may have to change my opinion on management and say they did something very smart walking away from the ryan air deal let's cesee what happens, brian.
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>> pete, you own boeing calls. hanging on to them >> i did i'm out now. we had some buyers of the upside calls. boeing stock was training about 219. but those options have moved significantly. sometimes people think when you buy an out of the money option, it has to go all the way to that number toproduce that's absolutely not true this is the case that the stock's already made enough of a move those options doubled. i had to exit and am no longer in those boeing calls. >> all right pete, tim. thank you very much. the investment committee is making other movers as well. jenny, you're buying an airline. i assume the stock, not the entire airline, although you never know >> one day i'll buy the whole airline when i'm super rich and famous so we added -- >> what's the name >> jet blue. we added jetblue this is pretty unique for us
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because our discipline growth strategy of companies that have a 5% of better cash flow yield they don't have that at this time this is a call where we're early and patient and we think they're going to pretty easily get back to $2 of earnings. i don't know if it takes a year or a year and a half when they do, if you assume they have a ten times multiple, you've got 30% upside and a terrific company a fun fact for you, too, and this really shocked me as part of the research process. but revenue was only down 5% last quarter they're very much on the mend and we're seeing the trends start to work in their favor and think they'll continue we're excitied about this. >> new and exciting. like going somewhere on a flight jblu, we're watching jetblue you're on the tape, i think as they say on this program thank you. check out this mystery chart one big oil stock that's gained
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over 15% in two months and just got an upgrade think you know the name? we'll talk about it. that is next iyo cn urall of the day. halftime is back in two minutes. this is the new world of work. each day looks different than the last. but, whatever work becomes, the world works with servicenow. ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ healthier is on-demand covid testing to help you return safely. even if it's still...
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the judge at kyle rittenhouse murder trial massachusetts dismissed a charge one count of dangerous weapon pos possession defense argued that rittenhouse assault rifle is not covered by wisconsin's possession law and closing arguments have now begun. a 9-year-old boy has become the youngest to die from injuries at the astroworld music festival a lawsuit filed by his family says he suffered severe damage to his brain, kidney and liver on the news, reaction in houston. nasa will not be putting men back on the moon for year to come according to the agency's inspector general. a report also says that nasa lacks accurate and comprehensive cost estimates for the moon program.
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and danny fenster has been released from myanmar. blinken said he was wrongfully detained for nearly six months brian, back to you >> some very good news about him. thank you very much. now to our call of the day chevron. you knew that. upgraded to buy from neutral with a price target of $125. saying the oil upcycle is not reflected in the share price jenny and pete, you both own shares jenny, they say the company is very sensitive to price movements. they think prices for oil are going to go up, therefore, buy chevron because also by the way, very, very good steward of capital. >> right this is an interesting call in that it's highlighting what's gone on in the broader context if you look at the european majors, they're being really forced to move into the next century and get away from fossil
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fuels. chevron meanwhile has said no, you know what, this is our business this is what we're going to do produce oil because this is where we are and we're going to make a lot of money doing it for as long as it lasts. this is ubs updating and saying you know what, we think the average price of oil for the comes years is going to be about $75 a barrel and they increase their earnings by about 35%. i think there will be a lot of catch up overall then you get a stock with almost $11 of earnings in the next couple of years trading at $115 a share and there's value there. that's what this analyst is saying he's saying there's value there. cash is king especially in a rising rate world in a harder to make money world, cash is going to be king. that's what this upgrade is all about. just a consistency of cash flows they'll be able to pump out. >> pete, to be fair, the price target is 1.25
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about 8% this upside not like this is going to be some huge more of a call if they're right. >> yeah. >> don't forget the dividend >> right yeah, that dividend is unreal. you look at their balance sheet. it's fantastic you look at the cash flows you were just talking about, jenny, they're extraordinary. sully, you know a lot about this world and the oil patch. you get it i think michael werth does an unbelievable job and always keeps focus on the direction they're going to so you talk about a 125 price target, i think that's low, especially when you look at the potential valuation and the balance sheet because with that cash flow, what they choose to do with it, they make up their own decisions on that. it's not always going back into the development side of things it's going back to buybacks, dividend yield, all these different aspects. i like this company, i love the way they run it.
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not 125, i would expect closer to 135, maybe higher than that, given oil continues this path we're talking about right now. >> yeah. and jim, they're trying to navigate this really sort of man on wire type tight rope act which is you got to grow a little bit, but you bodon't want tick off your shareholders by not giving them the money back people say why aren't we drilling more? shareholders will hit you in the head with a stick. they don't want you to spend that money want you to give it back to them what about the macro energy complex? are you a liker of it? >> i'm very much a liker and while i don't own chevron, i own marathon petroleum that's outperformed chevron. i also own kinder morgan, has a higher dividend yield. i think the short answer is
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there's going to be a supply demand mismatch in favor of higher oil prices for the next year it's not going to get solved until opec starts pumping more or shale producer. neither of which looks like it's going to happen soon because of what you said. these managements, they have activists on their boards. they want to keep their jobs and share prices high and they know if they spend too much, share price goes down. >> i can say, joe, without getting into the politics of it, we're doing a lot of opec blaming and i understand that. they're an easy group to blame but knowing opec as well as i do, the more you blame them, the less likely they are to add probably more oil to the market. i'm just throwing that out there as well. are you an owner or buyer or watcher or selling of these names, or anything in the energy complex? >> i own pxd and shah near i will say this about energy
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it is in the midst of a secular paradigm shift that paradigm shift is represented in the actions of what mike werth is doing there's no incentive to increase production the revenue that's swgenerated s going to be returned to the shareholder and on the imp improvement of the ambubalance sheet. >> by the way, lng being shipped around the world is world is in huge demand for u.s. liquefies natural gas thank you very much. still ahead, the big etfs to watch 2today, plus, pete's unusual activity trades. by the way, energy sector is at session highs right now. we're back right after this.
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yeah! [aflac!] you see that coverage? with that wingspan i see why you got more rings than a cell phone. there's always room for one more. yeah! get help with expenses health insurance doesn't cover at and welcome to the etf edge portion of halftime report inflation and bitcoin remain the two big stories in the etf world. let's dive into both with jim, the portfolio manager at horizon. and anna, the global head of etfs and index strategy for invesco. on friday, the sec rejected a
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pure play bitcoin etf. there's two bitcoin futures etfs currently trading, but invesco decided to withdraw its bitcoin futures application. why did you make that decision and what do you think of the chances for a pure play bitcoin etf in 2022? >> well, bob, they closed the application into the camp of just because you can doesn't mean you should. and you may appreciate the market for the bitcoin futures, which means that it's really expensive from one month to the next and that cost that would erode the performance. so we don't believe that etfs should be designed to give access and underline the surplus, but we also believe that the etfs should provide returns that are aligned with the underlying value or indexes.
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in this case, we studied the market, the portfolio that they were proposing and we just concluded that it was not the -- our etf strategy, and it was not really aligned with products the clients are expecting from us. from invesco as far as the pure play etfs, i hope that 2022 is going to be the year for that product. i wasn't surprised that the sec rejected the application last week issues that have not been addressed yet, i do think that more regulation is something that the sec is expecting before approving the next application, but i'm counting on 2022 to be the year for pure plays, yes >> jim, since launching the inflation beneficiaries in january, your assets have gone straight up.
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now you own land, energy, and you own exchanges like the deutsch and the australian stock exchange i get the land and energy, but why are stock exchange considered inflation hedges? >> thanks, bob and i think one of the main reason frs our success, both in terms of performance and assets has been that we focus on good businesses that are capital light. so you don't need to invest in bad cyclical, capital intensive businesses to benefit from inflation and exchanges are really the epitome of the great businesses that benefit from inflation. they trade in derivatives ranging in equity markets, currencies, commodities, interest rates moj the volatile and solvolume that's going to flow through if cpi keeps running and these are all digitized. so basically, there's no variable expense they are quite literally, the global toll both on financial
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activity, which is going to skyrocket in an inflationary environment. >> okay. thanks very much, guys much more on how to play inflation with etfs along with the prospects for a bitcoin etf coming up on etf edge. they'll be joined by dave nadig. he'll break down wlhat's behind the sec's rejection of that etf. 1:00 p.m. eastern time back right after this. you'll get closer to iconic landmarks, to local life and legendary treasures as you sail onboard our patented, award-winning viking longships. you'll enjoy many extras, including wi-fi, cultural enrichment from ship to shore and engaging excursions. viking - voted number one river cruise line by condé nast readers. learn more at
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e all right. welcome back time for unusual activity. pete, what are i seeing today? >> all right i'm going to start with an interesting one because it had the big spike with the paypal rumor, then dropped. got toward 52-week lows, trading around 48.40 today they're buying 18,000 of the november 26th expiring 54 calls. aggressive buyers there. 40 cents up to about 60 cents. they also bought 11,000 of the january 55 calls at well, so hitting twice in a short period of time. speaking of which, nap is around one. it was trading around $56, $57 we had a buyer of $58 strike calls in november, 8,000 of those, up to about 50 cents. they came back and bought 57 calls and bought 6,500 of those.
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lastly, i'm going to hit with you real quick wynn. so wynn is up almost 4% today. we know the story, macao and everything else. november 100s have gotten active, a couple thousand of those traded, and the november 102s, about 1,500 of those traded as well seeing b o aitf activity in wynn >> okay. good stuff, pete thank you. up next on "halftime", final trade. stick around earn about covid-19,
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>> joe, talk to us about resmed. >> san diego based medical equipment. focus on sleep disorder. >> go chargers pete najarian. >> i'm going to -- i'm going to give you monster beverage. i see some call buying in there. i think the stock is going higher thanks all that does it for us on "halftime. "the exchange" begins right now ♪ thank you very much, brian hi, everybody. i'll kelly evans here is what is ahead this hour the president is set to sign one of the biggest infrastructure bills in history today we'll speak with the ceos of blink charging and siemen's usa. we have the story and the action on three trades tomorrow morning. we are joined by a five-star tech manager


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