Skip to main content

tv   Fast Money Halftime Report  CNBC  November 19, 2021 12:00pm-1:00pm EST

12:00 pm
she is starting today and i'm always last minute, carl >> we still have a little bit of time we have a little bit of time >> guys, even though next week is holiday shortened for thanksgiving busy on the earnings front zoom and urban on monday throughout the week, best buy, dollar tree, dell, gap and deere along with october have a good weekend, let's get to the judge >> welcome to "halftime report. a new lockdown in europe and some calling for a nearterm selloff here are those fears overblown more reason to be cautious. we debate that and our next move joining me rob and kevin o'leary, mr. wonderful is back and pete najarian. nasdaq sets a new record high. the dow is down 185 and s&p is flat for the most part up four points there's the russell down 1.5%,
12:01 pm
too. yields are down today, oil is down today and, pete, cramer says it's overdone when you talk about what is happening in the market today relative to the lockdown over in europe. are we going to have a selloff like summer. are you concerned about that >> i'm not necessarilyern concerned, scott but when you look at the markets and the move we made overtime and we're near the record highs in terms of certain indices so far but i have to tell you we're so close to those that if we pulled back if wouldn't be shocking by any stretch of the imagination. that being said, i continue to like what we're seeing out of the nasdaq specifically in terms of what we watched for the last couple days actually most of this week where the dow for just a couple different stocks pulling on the dow significantly to the downside and yet the nasdaq has been basically pushing to the upside. so, i like what we're seeing there as far as the set up because i think a lot of the nasdaq stocks that we were talking about for a really long time this rotation and this strength
12:02 pm
that we are seeing how about these chips. the semi conductors have absolutely been exploding to the upside over the last week or so and i know we talk about nvidia and some of the big names and all kinds of participation there, as well a very inest thering spot for the markets and we're seeing the volatility starting to creep back up again. but it can't hold very long, scott. we were in the mid teens earlier today and back down towards the mid 17s as we get a little closer to the weekend. so, i don't know that we're seeing a lot of folks out there fretting over this with the volatility index trading 17.5. >> kevin o'leary, what do you think? cramer said it's over done i have tom lido who is is bullish and he's been right all the way and now his technical strategist said we may top this week and have a near term pull back it's going to be bought and my year end everything rally is in tact but at least in the very short term you could get a pull
12:03 pm
back, do you see it that way, too? >> i see volatility, not a pull back too much liquidity and even this bad news out of germany and other european countries i think they get more people inoculated you know, the backdrop is very constructive i think he's calling for 20% more next year on the indexes alone which is, i think, i'm a fan of his. i read all his stuff but i'm sort of more in the 9, 10, 11 range which is still spectacular but for primary reasons. i mean, think about we have 500 billion new money in the infrastructure bill and probably starts to hit the market by q2 that's a lot of liquidity. you don't know where you're getting on the inflation bill. i don't know if that will make it or not. any part of that done, that's more money than we need. no question that will spike inflation. that's other problems. but still favors equities. really hard to see, judge, how we're going to get a major correction with this much free
12:04 pm
money sloshing through theist ism. >> maybe not major maybe not major. maybe not major. again, even as tom lee said if you get a pull back, it is going to be scooped up because where else are you going to put your money. number two, you said all the liquidity in the system. so, maybe this is the week that starts that. you do have some covid-related uncertainty, kev he also, by the way, mentions what is going on with the uncertainty around the fed chair. is it going to be powell and branard and the market wants to know sooner rather than later. >> i think he's the right guy to finish this off. i would like to have the same person's policy who started the pandemic end the pandemic. that's just me even though he's in the wrong party, i think there's a chance that biden sticks with him you know, i want to point out something out about tech and every time it sells off people say, oh, it's over people will get out of these
12:05 pm
i.t. names they're never getting out of tech tech is driving the entire global economy semis showing you that right now. supply chain issues can be solve would tech you have to stay along tech 20%. where you want to do it. internet giants because i love ecommerce. you look at foot locker numbers that's telling you that nike moved past 50% direct to consumer what let them do that? technology tech is your investment theme right through next year. >> i'll tell you this, nobody to use kevin's words nobody is getting out of tech with 153 the only scenario we saw the entire time of force sell or selling the portfolio is if rates starting to rise and tech stocks won't do as well but i just said nasdaq hits another record high. why? the ten year is not moving even when it does show signs of moving, it falls right back for a variety of reasons which we
12:06 pm
just discussed at the top of the program, too >> so, it's not just because the rates, though, scott the technology companies are -- >> for sure. but you know what i mean >> i do. so, if you look at what's happening in europe, i mean, markets are paying attention to these covid stats, right interest rates are down, oil's down dollar's strong. nasdaq is on top again value in cyclicals are taking a back seat. we would agree with tom. it's a temporary set back. how much markets pay attention to this. it's really dempendent on how i plays out. the more it plays out negativety, the more markets will pay attention and the value cyclicals will continue to take a back seat. that said, the economy is incredibly strong and there's a lot of tail winds out there. you know, housing starts were lower than expected but new building permits were up that indicates strong underlying
12:07 pm
demand if you look at inventory to sales. inventories need to be rebuilt supply chain constraints easing. that's going to increase growth. oh, by the way, this country has underinvested in cap x for ten years. and, you know, you look at firms like goldman and you just look at the data. they're saying there is going to be $60 trillion in cap x dmrodm globally next year what does that do for the economy? it's an incredible tailwind. if we get something that i would say is a bit of a covid shock to the system, which i think is highly unlikely, by the way, that it's too significant. it's a dip divide. the other thing i would say that markets are not paying enough attention to is and i don't think it's a high probability outcome, which is why we're not as focused on it, but if brainerd gets in and everybody is saying why is that bad? she's more dovish.
12:08 pm
let me tell you why that is not a good outcome because at the end of the day, we're delaying what's inevitable there is inflation the fed has told you not in precise words but they're changing policy there behind the curve. she is going to rebirth that policy and push back the hiking of rates and therefore she's going to have to slam on the brakes very, very hard when that happens and you risk a car crash. i would rather be practical and stick with who brought us to the dance, as kevin said because, you know, some of these other things create uncertainty. they create unintended long-term risk to what is a very positive economic trajectory. >> so, kevin o'leary, you got ackman speaking up in boston, we have a classic bubble of, you know, when you look at the markets fueled by the fed to part of rob's point.
12:09 pm
today who on twitter says, he talks about markets having been at a tear. he has been worried about inflation which he told me in our delivering alpha conversation a month back. not a new thought for him. he also looks around and says two entrepreneurs who i considered the smartest in the room, bezos and musk aric e takg some of their chips off the table. maybe it is time for us to do the same what do you think? >> i think those are two different cases. in the case of bezos he left his managerial role. >> it's not about them but it's about the environment let's say everybody is going to have their own specialized instance but if he uses that and says, look, i think the markets are too frothy, the market has blown up this big bubble which is what he has been saying, too. you just look at that and say, okay, maybe they're right.
12:10 pm
for whatever reason they are selling, maybe the fact that they are in any way, shape or form at these levels is a sign that we all need to reassess our portfolios here because it is getting a little bit out of hand >> i don't agree with that we're all, whether we're individual investors or fiduciaries running funds or on behalf of others to look for a return to beat inflation which is well over 2% now. if you sell now, not only do you trigger capital gain, but you also go to cash. now, unless you have a new idea that is better because cash is actually losing you money now. we're in a very proverse situation. where to go with cash. so, if you sit there and cash 21 basis points, you're basically losing 3% of buying value in 12 months so, we're in a very difficult situation. you have to show me something better than equities and i can't find a single thing. because companies now, good ones, are being able to take
12:11 pm
inflation, reprice their products and services and add to those costs and that's why we have inflation and protect your value as an equity and in some cases pay you back a c distribution in the form of a dividend >> we have to fix -- your feed, kevin. i don't know if you can hear me or not we're having a little trouble with the feed or the audio or combination of both. let's see if we can work on that in the meantime, i'm going to go to pete. part of the point here, pete, is you better be smart about where you're allocating your money even if you don't think there's going to be a pull back of any scale, you better be somewhat selective and i say that and i'm thinking to myself, wait a minute, you're talking to a guy who just bought more rivian stock. >> you're right. i knew you were going there, man. >> the segue, it's a natural segue. it's perfect >> yeah. >> some people say evs are the
12:12 pm
poster of froth in the, market and that stock right there is on the front page of it and yet, you know, you bought on the ipo and now you're buying in the open market on what's been a pull back and the valuation is still massive. >> yeah, i'm not looking at it from the standpoint of valuation. just like tesla years ago. you look at that, well, you know what, but think about it i'm not even joking here about tesla. years ago, not too many years ago, actually, people were critical about tesla this is overpriced and now all of a sudden people have started to suddenly embrace what tesla has created here i don't know that rivian is necessary the next tesla but i look at a very quality company that has great backing and that's what i like so much about this stock, scott. if they didn't have amazon in the back pocket with 20% investment and if they didn't have ford and i think ford is going to hold on to it, i still believe that we'll see. but i think the reality is you've got two monsteres holding on to pretty significant amount
12:13 pm
of this stock right now. and because of that, i think that is my backstop. i look at that and i say, well, at what point in time is ford goegto exit? they might and if they do, i'll have to reconsider things. i continue to watch after amazon and i already talked about this before but not only do they have this great stake, but these guys are actually probably one of the biggest and boldest buyers out there of these vehicles once they're out there. so, i think that there's a lot to be said for that. i don't think tesla had that kind of numbers in front of it that early, like we're seeing right now from rivian. so, yes, i did buy more stock and i added to my stock position and i'm selling very expensive calls against that that are against the calls because right now you're still getting ungodly premiums there, scott. basically applied volatility of call it very close to 200. just to give you a littl perspective, last i looked at tesla trading between 50 and 70. that gives you an idea of where rivian is trading right now in
12:14 pm
terms of how high that implied volatility is. so you can get incredible sums against that if i own the stock and sell those calls that's exactly what i'm doing. i like this right now. matter of fact, i might even end up buying a little bit more because that's what i believe in as far as the backstop i'm not looking at rivian from the standpoint of when you look at the fundamentals right now. i don't think you can do that with rivian. but if you look a little ahead and look at who's backing them, i think this is a company that has a lot of upside. >> i have to say, i'm kind of surprised, rob i have tesla at $1.1 trillion market cap as i look at my fact set as we speak. i see it topping $1,100 a share and then i look down at my notes and it says that rob bought tesla at $1,100 now is the time to buy tesla what is the matter with you? >> i know that blows you away because i got blown to smither
12:15 pm
esmi smitherens when i mentioned it was a golf cart the last time i was on i'm in this business to make money, scott this is different than what we it typically buy. when you look at the company, the margins continue to expand and the battery costs are coming down and their opportunities is in battery, ai and software. there's no doubt they're defining the next generation of automobiles. it's an engineering first leadership team. and, you know, this is going in a very specific portfolio of ours it's our top ten best ideas portfolios for short period of time that we run in partnership with fund strat and tom lee one of everybody's favorite guys and he's managed to convince me while i might not buy the car, i
12:16 pm
should buy the stock i think it makes a lot of sense here being off from its highs. could be a short-term rental for us, but definitely going to own it for a little bit and i think we'll make some money on it. >> they tell me you're back, kevin o'leary, which i'm happy to report to everybody as you look at ev valuations and you see what rivian is doing and yet pete buys it and then you see what tesla's doing and then sech buys it what do you make of that >> you know, it's a classic case where the incumbent the traditional automotive companies the only one i do own outside of ev is ford because i like what they're doing on the lightning and the demand is crazy. but there used to be a thought in the market and it's reflected in market cap that those incumbents would eventually catch up to tesla and they would catch up to new entrance coming into the market and overtake them that train of thought is no
12:17 pm
longer there people are starting to make bets and pricing, you know, tesla, specifically the grand daddy of them all. they are the new incumbent and there's not going to be a volkswagen catching up to them or a ford or general motor they will be the leaders for some extended period of time, a long time in ev. as a result of that, in history. you go back and if you remember decades ago when we were all talking about amazon the same way saying what a ridiculous price this is, you've witnessed even back in those crazy prices, you know, one of the best returns in the history of the stock market same thing is happening, i believe, to tesla. they, nobody can catch up to them not on factory and engineering teams and not on automotive driving. nobody can catch up with them. and i think that tonality has just come in to the market in the last six to eight weeks. it's over, kids. tes tesla's the winner
12:18 pm
>> he bought more lucid calls, too. that's because of activity that you saw. be quick on that, pete, if you don't mind >> i'll just give it to you real quick. 13,000 of the november 26, next week expiring 48 calls were bought today just adding to this stock that has already been on an absolutely rip-roaring tear to the upside the ineteresting part of it the stock immediately jumped on this this is one of the names that some day will be very competitive with somebody like a tesla. we'll see. it makes some sense. but i think the others will steadily catch up. they might not get all the way up there but they're not as far behind as people think right now. >> let's bring in brian now, he is our headliner today mr. belski, welcome back >> thanks for having us, joe we really appreciate it. >> let's play off the evs for a second and even fund strat, your bullish buddy is saying we could
12:19 pm
have a pull back we too frothy? >> great question. you know, i began my career working with william o'neil with investor daily and the very first technical analysis i learned, joe, if you don't like the way the chart looks, turn it upside down. i think tom's doing a great job supporting his technical st stra strategist i've been of the belief that we can't be too cute and i think it's preposterous and with respect to mr. ackman underperforming for several years and he has his own agenda with respect to the spac crew, they have been underperforming i think it's dangerous we just published our 24th forecast on the s&p 500 and our tenth consecutive forecast on the s&p 500 in the tsx and i say that with much humility because when you take a look at the perspective that it takes to put
12:20 pm
these reports together and listening to my awesome team that helps me put together a 58-page report, we do a tremendous amount of work and my career spans a lot of perspective and i fear that a lot of people are just talking their book and feeding more to their rhetoric and fear. if you take two steps back, scott, and you take a look at the environment with respect to low-interest rates on historical basis and double-digit earnings growth and 20 or 21 times earnings with respect to p/es, you want to own stock, period. prepare for the second derivative you can't call me pollyanna all the time the return structure of stocks are less than they were last year and i think that makes sense. remember, we raised our target twice in 2021 and i rarery ly d that oh, by the way, kevin, canada is coming along for the ride, as well but i think north america is
12:21 pm
going to continue to lead because of the strong trends of growth at a reasonable price, dividend growth and high quality. i think that will continue to lead the way >> so, just to clean up something. just so we're not taking pot shots at people. i mean, outperforming the last year after a period of underperformance i want to throw that out there and raises a point that others have raised, as well, which adds to the conversation at a time as to whether or not we're in a classic bubble inflated by, brian, the fed they have been pumping it up with really no abatement at all and eventually there is going to be some sort of pull back whether it's taper or they're forced to raise rates before we originally thought don't you think that is going to have an impact >> well, take another look at some of those performance numbers, number one. number two in terms of the market in general in terms of it being a bubble 90% of the stocks and the s&p 500 in 2021 incurred a
12:22 pm
correction more than 10% in all 11 sectors were down at one point down more than 8%. i think too many people make index calls versus stock calls the market is a market of stocks and clearly names like tesla or areas like bitcoin or the meme stocks or rivian, those are bu bubbles. those are names we don't invest in in our nine portfolios and our $7 billion that we invest in clients. those aren't names that we're going to chase i love those names, by the way because with so much focus on it people forget how great the overall stock market is. we like those stories out there to scare everybody to bring people back to bare bones fundamental investing like we do >> you don't think next year is going to be as good but not anywhere near this with all of that said, you don't. >> listen, i'm a common sense kid from minnesota and i've been doing this for a long time >> oh, yeah, you know.
12:23 pm
i have been doing this for a long time and four consecutive years of double-digit performance in the s&p is not unprecedented. i'm positioned to underpromise and overdeliver. i think tom lee is right i think we'll probably take out 4,800 by year end because we're going to have a buying exhaustion to the upside with all the bears out there trying to scare everybody next year is going to be a positive year and the volatility around the world, quite frankly, will drive assets back to the u.s. and canada and that is what gets us to 5,300 on the s&p and $245 earnings and $24,000 on the tsx and $1,500 of earnings here. >> we may learn by the end of the weekend who the new fed chair is going to be does it matter >> i don't think it matters, scott. thanks for bringing that up. again, let's take two steps back ms. yellen and mr. paul worked together for a while and the seamless hand off was great. and mr. powell changed the really format in conjecture on
12:24 pm
the fed in august of 2020 when they changed the mandate from inflation to employment. and what do you hear ms. yellen talk about the majority of the time aside from the inflation fears, employment, employment, employment they're on the same page i would find it very surprising, quite frankly, just my personal opinion that powell will get kicked out that will bring additional stability with respect to what is going on with the fed oh, by the way, that is still pumping in money >> i got you there you have a good thanksgiving in wilmur or wherever else you celebrate it this year >> thanks so much. >> we'll catch you on the other side let's talk about a couple moves that we have to still let everybody know about rob, you bought united rentals and raytheon >> united rentals in that opportunistic portfolio and play
12:25 pm
on the infrastructure bill and picks and shovels play we'd rather own the picks and shovels as the program starts to roll out i think that's a great place to be on raytheon a beneficiary of defense spending amidst the u.s./china tensions. in addition, with the merger with utx provides an additional tailwind as utx makes many components in the airplanes and we should see increased demand as travel continues to pick up >> okay. kevin o'leary, you bought mastercard >> yeah. this narrative that the credit card companies going out of business will be disrupted by fintech is just ridiculous i don't agree with it. 5% correction. stock only up 3% i bought it because of this. a new card they put out called bilt
12:26 pm
bilt is the company that put it out but use the mastercard platform the first card that lets you pay your rent with a credit card all those millennials 88 million of them can get their credit scores moved up with this thing. i bought into this and then bought into mastercard which is the platform they're innovating in a new way and i think they'll be the beneficiary of a lot of these new kind of ideas. >> you're still a black card guy. i know you >> this is millennial stock for mill millennials. i'm a millennial now >> there you go. >> you don't look like a millennial, kevin. i'm sorry. we'll take a quick break excuse me, when we come back crypto is getting crushed. bitcoin and ether. ou yshldou buy the drop? look out below we'll discuss next get decision tech. for insights on when to buy and sell. and proactive alerts on market events.
12:27 pm
that's decision tech. only from fidelity. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.
12:28 pm
small businesses like yours make gift-giving possible. whose resumes on indeed now, comcast business has an exclusive gift for you. introducing the gift of savings sale. for a limited time, ask how to get a great deal for your business. and get up to a $500 prepaid card with select bundles when you switch to the network that can deliver gig speeds to the most businesses. or get started with internet and voice for $64.99 per month with a 2-year price guarantee. give your business the gift of savings today. comcast business. powering possibilities.
12:29 pm
welcome back i'm rahel solomon. here's our update at this hour kamala harris made history this morning. president biden traveled to walter reed for routine exams and his powers were temporarily transferred to vice president harris under a provision of the 25th amendment that made her the first woman to
12:30 pm
be acting president. biden did resume his duties about an hour ago. democrats are celebrating this morning's passage of biden's build back better bill in a party line vote speaker pelosi says the hardest part was getting her party united for the house vote and she's confident the far-reaching legislation will win senate approval >> this bill is monumental it's historic. it's transformative. it's bigger than anything we've ever done. >> and apparently they were also talking about politics on a live tv show in the soviet republic of georgia when a cat apparently wanted to join in on the conversation you see the host there joking that the cat needed to get down from the desk as he complained that the political situation in georgia is also going down hill. and tonight on the news with shepard smith, the ongoing and apparently very frustrating search for two zebras that are
12:31 pm
still on the loose in maryland scott, they have been on the loose since august apparently any time somebody tries to catch up to them, they just outrun them >> in maryland >> in maryland >> tell me parents to look out all right, rahel, thank you. a tough skrech for crypto's bitcoin and ether both having their worst weeks since late september and falling 10%. we do have ownership, kevin. you bought more bitcoin and already own ether. what do we make of this? is this where risk sentiment sits for this particular week? >> i'm take agnew position on all crypto the way i'm looking at it now everybody knows bitcoin but these teams, these development teams are developing productivity software and companies like boeing and ernst & young are starting to develop
12:32 pm
and if you're willing to buy google and microsoft and willing to buy oracle, you're buying software companies no difference in buying bitcoin than microsoft is my argument. it's a software. ethereum is a software people should take note. a lot of people don't know sitting around the dining table thanksgiving in the last 12 months, $3 trillion worth of economic transactions have happened on ethereum that's a lot of capital. and it's happening every second. ethereum is a little slow and i'm taking bets on other platforms and all software development. that's what this crypto thing is about. maybe you want to trade bitcoin. i buy these positions and hold them for the long term and leaving tonight to go to abu dhabi because all these leaders and development teams are going to be there and spend eight days talking to all of them this is going to be one of the largest gatherings of crypto in the world ever i have to be there
12:33 pm
>> okay. pete, no crypto for you or do i just not have it on my sheet >> i have some exposure, scott, but nuthing to the extend of what we're looking at when kevin is talking about some of these various names. i'm in specific names and transactional names but not publicly traded. >> i got you okay let's move to our call of the day now, robinhood hitting a new 52-week low trading below its share and deutsche bank making a short term sell call on the stock. they're talking about growth and profitability headwinds. kevin o'leary, look, i know you own it and i am told you bought more last week but they raised some significant issues that i want you to respond to they say the meme stock phenomenon has likely resulted in overestimation of the company's core fundamentals and
12:34 pm
growth trajajetrajectory, that'e one. the other issue i discuss would you last time when you told us about this is sometimes this company acts like they're not ready for primetime. >> well, i certainly never said that >> i said that >> let me address each of these things security breaches. pretty well every s&p 500 company has had a security breach in the last decade. no different for robinhood they get breach, they fix it and move on just like every other company. i'll ignore that that is ridiculous to say it is unique to robinhood. number two, meme stocks are not the majority traded on robinhood. people are using it to buy all stocks and they've done it in a way where they are able to capture 22 million accounts. every online broker would love to have the $22 million because those people start and they add and they get up to a quarter million over time. that's what investing is about
12:35 pm
long term. i know, scott, everybody hates this name and my view, okay, particularly piling on with research like this saying sell, sell, sell sell today, sell tomorrow. >> only short term you know, it's a catalyst call not a long-term negative they're just like, look, the meme stock probability led to a lot of the, the meme stock stuff led to the customer growth and probably led most people to overstate the trajectory of growth as a result maybe that slows and maybe that has a negative impact on the users. >> and it might in the short term and i can't disagree if memes fall out of bed and always a new meme showing up somewhere. when everyone you know including the neighbor's dog is barking to sell this stock is an opportunity. that's the way i look at it. i can't time the bottom. i have been adding to my position as this thing is being cratered but i just know at the end of
12:36 pm
the day, 20 plus million accounts and having a really focused on a whole new generation of investors is a really unique position no one else was able to do it. i may be wrong once in a while i'm wrong, not often. but maybe this time, i don't think so let's just wait and see 90 days from now >> thanks for clarifying how often you are right, i guess is at the end of the day what you were trying to say >> there's a reason they call him mr. wonderful, scott what can i say >> he thinks he's mr. wonderful. >> my wife doesn't think that. stephanie link is also making moves in her portfolio today. she'll join us next to talk about a new buy. you'll want to hear that plus, check out this mystery chart up about 40% this year cr cramer's charitable chart owns the stock. we'll debate it. the new letter just dropped from
12:37 pm
the cnbc investing club with mr. cramer you can sign up with cnbc.com/investingclub there is the qr code you can check that out with your phone. we're back in two minutes.
12:38 pm
12:39 pm
[coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪ [suitcase closing] [gusts of wind] [ding]
12:40 pm
we're joined now by stephanie link she has new stuff going on in her portfolio. steph, are you there. >> i am, scott how are you? >> we'll do rapid fire three things to talk about number one, you're buying coin base, interesting. why? >> well, i thought the 10% last week with the buying opportunity these guys are the leader in the industry and the largest crypto exchange and total addressable market is huge 1.6 billion today and itser are hard to ignore companies that are investing in crypto not just paypal, square and tesla. it's coke, starbucks, expedia and i think it's very telling. i wanted to have some exposure, i thought the third quarter was terrible but who didn't know price to sell in the summertime and volume also fell and they got it higher believe it or not. that got ignored 25 times earnings is a good buy. >> jim's interesting club saysmn
12:41 pm
stanley and i asked you about it because you have insight into how mr. cramer thinks better than most people do. what do you make of this one >> it's down 8% from the highs and i want to be in there buying more, as well. the company is buying $12 billion in shares. they have a great m&a strategy and trade diversifying and capital markets are strong and stocks trade at 12 times earnings with a 3% yield and very attractive in my opinion. >> two steps forward, one step back for ba. boeing they're dreamliner production further,that's what sources ar saying today again, you own boeing. what do you do now >> it's been a painful year but i think we're closer to there being light at the end of the tunnel most importantly it's china certification of the 737 max a third of the 737 maxes in inventory are slated for chinese companies.
12:42 pm
so, approvals will be very critical china and asia is 35% of global traffic. it's important and the average life of china's aircraft is 15 years there's a replacement cycle story, as well higher fuel prices will help the replacement cycle because companies will be looking for more efficient claims. that's what the 737 max is the delays, i wasn't expected it to figure out the halt situation until the end of the first quarter. so i think this is kind of in line and the stock is down as much as it is. they have to reopen story and return of international travel and return to certification coming and you have a free cash yield. >> she is the linkster, better known as stephanie link. have a good holiday, if i don't see you before that. pete has unusual activity. we'll do that next
12:43 pm
the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. staying up half the night searching for savings on your prescriptions? just ask your cvs pharmacist. we search for savings for you, from coupons to lower-cost options. plus, earn up to 50 dollars extrabucks rewards each year just for filling. at cvs pharmacy.
12:44 pm
♪ ♪ eac xfinity rewards are ng. our way of thanking you just for being with us. enjoy rewards like getting
12:45 pm
illumination's minions movie on us. xfinity mobile benefits. exclusive experiences, like the chance to win tickets to see watch what happens live. andy cohen: hey! it's me! and tasty recipes from bravo's top chef cheftestants that'll have you cooking like a pro. the longer you've been with us... the more rewards you can get. join for free on the xfinity app. our thanks. your rewards. all right, pete, tell us what you have on this friday >> all right we're going to start off with u.p.s. these guys truly are delivering, scott. when you look at what they've done with their revenue and earnings and free cash flow through the first three
12:46 pm
quarters unbelievable stock was trading between 207 and 209 and next week 215 strike calls. those are going for 39 cents up to about 93 cents. bought a little over 10,000 of those calls, scott i love seeing this each time i've seen this in the past i've jumped on it i jumped on it, once again and i like what u.p.s. has been doing. absolutely extraordinary next up i have financials. we heard about morgan stanley and jim cramer and the investment club. how about trading around 39 and a buyer of 10,000 of the december 10th 40 strike calls there, as well so, a lot of activity in the financials usually i like those individual names but this is day two of seeing the xlf paper and trying to see if the financials will maybe have an explosive move to the upside stock was 39 stock just has to get up and through 40 in a very short time frame. i think it can happen. t all right, a number of stocks inhe reopening stay at home trade. we'll do that next
12:47 pm
♪ i jump u♪ ♪ and do my money dance ♪ ♪ i throw some money up ♪ ♪ and watch the money land ♪ ♪ i do my, i do my i do my money dance ♪ move your student loan debt to sofi - you could save with low rates and no fees. earn a $500 bonus when you refi... and get your money right. ♪ i do my money dance ♪
12:48 pm
[coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪ [suitcase closing] [gusts of wind] [ding] (swords clashing)
12:49 pm
-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. all right. a couple other movers we want to hit today. you have the lockdown over in austria but we're talking about stay at home versus reopen and upgrades delta and southwest to outperform from sector perform pete, you own delta calls, right? no position in southwest, but you do have a little bit at stake in delta >> i do. we just, that's because of the
12:50 pm
unusual option activity that we've seen in there, scott i know there is pricing power, as well. anybody who has traveled recently i know business travel is something that has not come back but we are seeing travel coming back in a big way and i think because of that, i think some of these names actually have a little room to the upside. we'll see. they bought the february 42 calls and we'll see if see if t. i tell you what, it is interesting to see each and every time that i go for another travel date to go somewhere i'm looking at prices that are much higher than i would have expected six months ago, nine months ago i think it is a benefit definitely delta, united, american a's mnd most of the airlines >> you are still short, kevin. why? >> i think the airlines are trying to raise prices on the low-margin business of tourist travel and it will be very difficult to do. the balance sheets of all of the airlines are upside down as a result of the pandemic i think if you look at delta, united, you have massive increases in debt. they're the weakest balance sheets in my view in the s&p 500. i think at some point the market
12:51 pm
is going to recognize that business travel has been impeded, maybe even in perpetuity i don't know it is really hard to get people to travel for business because they know they don't have to, and it is a miserable experience if you have to so at the end of the day, i think their business models are broken i haven't been harmed. i haven't made any money yet, but if you look at jets, the etf i'm using to short them, it includes boeing in it, which is obviously having new challenges. that stock hasn't done anything either i will stay short. i think probably by the end of the year when people start really focusing on the fact business travel never came back. >> right, right. >> you're going to get rewarded. i think it is a really crummy business i think the airlines are in terrible shape >> we are flying again, going to concerts again, going to sporting events like the ufc it has been a big week for the endeavor group and today they finalized their deal to sell a majority stake of the scripted content business the shares are up nearly 8% this week they had good earnings, got an up grade as well i bring it up, rob, because you
12:52 pm
are short the stay-at-home trade. you know as well as anybody people are getting out and going to those kind of live events that lead to stocks like that doing well >> yeah, so, listen, we think stock picking matters. we happen to have one of the best guys in the world on our team his name is glen mitts he runs our long/short portfolio. he recognized the mania around the stay-at-home economy names, the covid beneficiaries. he has been short a lot of them throughout the year. i won't mention. he continues to be short some of them, but i will give you a name we covered that's an example of that peloton. we made an enormous amount of money being short peloton and covered. we think at the right time so i think the bloom is off the rose in some >> so zoom, kevin o'leary, reports earnings on monday do you have a position in zoom >> i do. i do i consider zoom an enterprise product. we standardized on it quite a
12:53 pm
while ago. they have reduced latency dramatically there so it has been terrific. so it is probably the standard by which many companies are using it, but i want you to consider it, scottie, at a teleco i think zoom is a disruptive teleco i think the numbers will be strong next week i'm going in earnings owning the name in afull weighting and it is not a stay-at-home stock. it is a work from anywhere stock and basically a teleco, that's what i think >> sure, but maybe the growth won't be what it was though. you probably would admit that. does it -- what happens if it is not? >> well, we're going to see. we don't have to wait that long. i think you will be surprised. i think what has happened is the new enterprise version, pretty close with that company because we've been using it for quite a while now, has some major features added to it that all of the customers have asked for the product keeps getting better, so i don't think it is going to slow that much. it is not just teenagers talking to each other locked in their bedrooms anymore we odt. enterprispruc >>e will take a quick break and we'll come back and do final trades on the other side
12:54 pm
1.5 bil. that's decision tech. only from fidelity. as i observe investors balance risk and reward, i see one element securing portfolios, time after time. gold. your strategic advantage. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire
12:55 pm
12:56 pm
12:57 pm
as an independent financial advisor, matching your job description. i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com
12:58 pm
12:59 pm
nurse mariyam sabo knows a moment this pure... ...demands a lotion this pure. new gold bond pure moisture lotion. 24-hour hydration. no parabens, dyes, or fragrances. gold bond. champion your skin. all right. mr. wonderful, what is your final trade today? >> going with zoom, earnings next week. i like the stock i think it is a teleco. >> we're going to see what they deliver. we can discuss it on the other side pete najarian? >> i will give you med tron iks, scott. i see a lot of call activity i'm looking at a stock with great free cash flow when you look at the fundamental story it is fantastic as well. i think it is a stock going to 130 as well. >> why gray scale? >> looks like people are ahead of me on this one, scott i was playing the sell-off a
1:00 pm
little bit we love crypto on a use case basis. there's other ways to play it but it is a liquid way to do it. i like ethe. >> it has been an interesting time for crypto, whether it is a statement on overall risk statement, who knows but we will watch and see what happens next week. it is good to see everybody. all of you, thanks so much for watching, too. have a great weekend we will see you on the other side "the exchange" begins now. ♪ thank you very much, scott hi, everybody. i'm kelly evans. here is what is ahead on what is shaping up to be a busy friday here on "the exchange." covid jitters are spooking the markets with austria becoming the first major country to go back into lockdown the dow, tech stocks gained thanks to falling yields we'll have the latest. policymakers took what they learned from the financial crisis and applied it to fighting covid-19. was it a mistake we will look at what is not working now and could cause problems in future plus, retail names to stuff your stocking with a

108 Views

info Stream Only

Uploaded by TV Archive on