tv Fast Money Halftime Report CNBC November 23, 2021 12:00pm-1:01pm EST
close to the thanksgiving day holiday. tomorrow will be busy as we try to get a lot out of the way. today, gap, dell, autodesk, hpq and nordstrom and tomorrow pce and dhams. busy day let's get to the judge and the half. >> we are inside the techtrade as one group surges and another sinks. what does all of that mean for your money in the final stretch of the year. we debate that with the investment committee and joining me for the hour is stephanie link, josh brown, pete najarian and co-founder of market rebellion.com. the nasdaq hasn't had back-to-back 1+% decline since march. that's how long it's been and that's what we're working on right now because the nasdaq is under serious pressure again, down 178 a loss of 1.1% the dow is still green the s&p is negative and since jay powell was re-nominated for
the fed chair. the yield is 166 josh, i'm wondering how you're thinking now about the nasdaq. look, i've got stocks like you own crowd strike, from 199 to two weeks. how concerned should we be >> you have the indexes right here, all-time highs, but that's almost all thanks to the mega-cap tech communications and consumer discretionary names below the surface, there are 100 stocks i can think of that are now down more than 50%, many of which were the darlings of 2020, and early 2021 so, like, specifically i'm thinking about teledoc, zoom, peloton and the ipo index is breaking down. the spac etf looks like junk that is, i think, healthier than you would think and the reason
why i say that's healthy is there were a lot of stocks masquerading as technology stocks and kind of rallying with technology that really aren't technology zillow is an example it's like an advertising business for realtors. i think peloton is another great example. literally it's a fitness bike with an ipad attached. it's not tech and these stocks spent a year to a year and a half rallying with tech as though they were doing something cutting edge and there were so many examples of that. so i think what you're seeing now. companies with real technology like in the faang group, like nvidia, for example, they're hanging high and then you're seeing a lot of names that have already crashed by 50% still crashing, and i think that's just investors being more selective and not just playing this game where every growth stock is automatically going go up it's more healthy than what the
price action would suggest and i'm perfectly okay with it >> pete, to josh's point, this month alone, zillow is down 48 and teledoc is down 27 roku, 24 draftkings, 21 check's off 78% from its high and zoom is down 57% from its high twilio, 40%. square, 28% and the faang stocks which have done decidedly better what i find so interesting is you continue to place your money in those stocks even as they've had their own runs for example, today, you're buying new apple calls as that stock is basically at a 52-week high >> yeah. >> and i like what i'm seeing there, too because it looks like a name that breaks out to the upside especially if you like to look at the backdrop which is what josh was talking about, these p-e-type names that are under pressure or maybe they don't have a p-e, but they're under pressure peloton, a lot of those
basically lean on the idea that many of these names that we're talking about here are literally those stay at home stocks. well, as we've opened up and obviously over the last few months things have gotten a little bit better, a little bit better and i know we've had bumps in the road a lot of those names aren't living up to what they had gotten themselves to when you look at something like a peloton that was pushing up to 200 and now it's bashed every single day i literally look at that stock and i see it down 4% or 5% almost on a daily basis, it seems like i think that's true of a lot of names that were way too far in front of themselves and now people have gotten too comfortable and they've gone down to the apples and microsofts of the world and i don't mind doubling up, and i own stocks, i own calls and i'm okay with that even the facebooks take a look. just a few weeks ago, facebook was trading down to 313 and now look at where it is and it was trading at 351 a couple of days
ago. when we talk about velocity of movement this is the velocity of the movement and it's within a lot of different areas of the market and we've had this great move from apple we've had microsoft and that's pretty much never taken almost a pause and we have names like facebook that are in the public eye all of the time and they've come pounded down, as the metaverse company that they are and they've put themselves back into the position where they're not too terribly far away from a 52-week high when i look at 15 to 20, and i look at the volume, scott that has gone from averaging 39 million contracts per day to averaging 47 million contracts a day and that tells me that they're shifting around and we're seeing incredible volume and the velocity of the moves and as we get into the last part of the year. will this continue i think it will. we'll continue to see the fundamental story be right for a
lot of these big tech names. >> i feel like, steph, that pete is suggesting that this carnage is going to continue in the high-growth, high-valuation names. it's not going to hit the mega-caps and then you can extrapolate that, that it's not going to hit the overall market that hard because as long as the biggest stocks hold up relative to what the others are doing in their own pullbacks, then you don't have a huge market event as a result. >> well, as you know, i'm underweight tech i'm underweight com services and software i am overweight in semis and my most recent purchase of all of the faangs is facebook on that drop that pete was just talking about, but i think what you have to look at, you have to step back and you have to look at the macro. that's what i do in terms of my se sector allocations and i look at economic growth and i look at inflation as fed policy and interest rates and where i think they're all going and yesterday
was very interesting that biden, powell and yellen all talked about curbing inflation. you know i have been saying this all year that inflation is not transitory not all of it, anyway, right i don't think it's runaway, but it's elevated and that's the bad news the good news is economic growth is also elevated and above trend and so if you add all of this up, you have a fed that can taper more and you have a fed that can probably raise rates sooner if they raise rates sooner, what does that do to the high-multiple stocks and the high growth stocks and the faang stocks it will be more of a value market more than the growth market and you can pick and choose whatever you want i mentioned that i bought facebook it's trading at 20 times microsoft is trading at 27 times. its valuation is the highest in 20 years and amazon was also very expensive, so you want to be careful in terms of tech because it's overowned and a lot of the valuations are hard to support.
as i said, semiconductors are more reasonable. enterprise i.t. spending stocks are good like ibm, and hbe and cisco. i like cybersecurities and i think you can find ways in places and tech to pick and that's what i'm doing. >> let's attack what you said from a couple of different ways. katie huberty is suggesting that big tech is still underowned as you suggest it's over owned and she said it's not that apple, microsoft and amazon's active portfolio weights are one to two points below the s&p 500 waiting indicating shares are still under owned. >> right >> so, i don't know what you do with that, but this seems to be a very interesting piece of research not to mention the fact that it's almost like you can't discuss apple and microsoft in the same way that you talk about other tech stocks because yes, there are valuations from a historical standpoint may be
higher or the highest that they've ever been. they're still deemed by some to be cheap, if not value stocks and at the same time, defensive, and that's why money's going continue to go there >> well, you have to say free cash flow. >> microsoft is 6.4% of the s&p 500 and that's a big, big weighting. >> apple say 6% weighting and i still own a lot of apple, but i'm not going to be overweight i don't think that's a prudent thing to do as a portfolio manager. i don't want to become a faang portfolio. that's just not my style, so yes, i agree that they're under owned relative to their weightings, but they're still owned a lot and i think that they're pretty discovered. i just take issue with the fact that you want to be overweight all of these faangs and you're
just more vulnerable in a portfolio if you do. you can pick your spots, scott i'm picking my spots in facebook and i own market weight in alphabet, but these others are harder to be overweight. sarat, part of my question is are these valuation stocks no touch? >> is the current environment just going to be too volatile for them if rates continue to rise and they're up a considerable amount since the powell renomination news came out. if that trend continues, i'm not suggesting you sell what you have necessarily, but how do you put fresh money to work in that sort of environment? >> i think, scott, you have to look at sustainability of earnings for some of these high-value stocks. we throw all of them into one bunch, but if you parse it out and say a lot of the stocks did really well and which ones have recurring revenue and growing margins and then say what am i going to do with that going
forward, knowing that we have a backdrop of potentially higher rates. there are companies in there like a roblox that you can't own, but you have to be very careful because i think what you're also finding is that there are other parts of the market that are doing well and that will do well in the reopening and they will do rates with moving up it will be there in other places and it doesn't mean that you run away from the stocks and you have to be careful the zooms, the pelotons of the world and what are they going to look like in the three to five years, and are they sustained? >> mike santoli, talking about this bifurcated market and the under the surface high valuation, high growth stocks that have really peeled back while the faangs have held up is what jonathan krinsky is talking about today, wondering whether
the bifurcation grows wider or doesn't resolve itself and is a mean reversion the kind of names that we read you at the top and the strong names have been getting stronger in the healthy market and it allows the laggards to participate, he says when that doesn't happen, crowding becomes more extravagant, in the faang stocks >> i just wonder, josh, i know you used, if it continues in this direction do you tart to get sick >> yeah. that's the right way to frame the question you can believe one or two things, the the areas are contained where they're selling at the highest valuations and were up too much
like, you can saya that and so far it's been true and so the question is eventually does it have to hit the faangs before it's over or do the faangs have to hang here and this correction abates in the rest of the market is that the signal for the meltup or the rally or whatever? it seems pretty binary, like somebody will be very right and someone will be very wrong if we had tom lee today i know which answer he would give i don't know that i'm that confident and i would have the right answer, but what i would say is it's not just the faangs that are hanging in there. if you look at home depot, you look at lowe's and costco, the best reads for the consumer in the entire market, the stocks look wonderful even amidst this carnage and nvidia is up 100% year to date and it's not giving much back here apple went on a hilarious run and that stock at a
$2.6 trillion market cap you would understand why people would be selling it and using it as a source of cash to do other stuff, but even despite that, the stock's not really giving up that much ground, and in the meanwhile on a day like today with all this red in the nasdaq, the xlf and the xle aregetting the job done for you the cyclicals look good so that rotation that we've been talking about all year is still very much intact, and this question of whether the big guys can hold up throughout this correction i would say if this rotation continues there's no reason why they couldn't and so far that's what we're seeing on our screens right now. >> let me ask you quickly before we move on >> mentioned crowd strike at the top of the show and someone wanted me to ask you specifically about it on twitter. if someone follows you into a name like that and let's use that as an example for a stock that's gone from 295 to 237 what do you do
>> well, what you do is you don't anchor to the 295 because i've been talking about the stock since 100 is the first thing. the second thing is if you're an investor in the stock like i am, this is an opportunity to be buying it, if you're a trader, i never went into it as a trade. i'm an investor and i've been in the stock with many 20% corrections long the way and i would imagine that would be my future for the rest of time that i continue to hold the stock, and i think it's got to be in the portion of your portfolio that you expect high data, high volatility that's what this is. it's never masqueraded as something other than that. it's a high valuation, high growth, high beta stock and it's not meant to be in place of a reit or a bond so i think most people understand that and have positioned themselves in it if they bought it accordingly a company hasn't reported earnings yet, by the way earnings are coming up
so i think that's a potential upside catalyst, hopefully >> pete, i find so interesting is that we talk about going further into apple and microsoft as you did with these new calls at the top of the show you're still buying new calls in, you know, what some people say is the most frothy part of the market and that's evs. it's new lucid calls that you rolled up to the november 48 and it's new ford calls after a huge run in that stock. can you take me through that process where you can have half your brain and as you say, no p-e stocks make you nervous and then the other half of your brain say, well, yeah, but i still like these opportunities from an options standpoint even if it's really frothy. >> sure. >> and that's exactly right, scott, and there are ways that you can use the options in a lot of different ways that you can do spreads and be able to attack
something that you want to be a part of. i will tell you this, for the evs, it literally was a light switch, and i know i brought this up before, but i'll tell you again, about two and a half, three weeks ago energy names completely stopped and crude dropped all of the way down and we haven't soon a resurgence of those kinds of names hitting the way that they were and that was going for an entire year and meanwhile in the ev space it was tesla, originally, obviously and a lot of other names got deeper into the summer and we got more into the fall and over the last three or four weeks, scott, it has been somewhere involved in the ev space part of the rotation that we were talking about, this rotation, healthy rotation it's from one sector to another sector, to another sector and that movement. i'm seeing on less from energy,
and of course, energy will hook very, very solid and you can look at those beta names in energy and the devins and the occidentals and they will fly on days like today, but overall we have seen ev buying day after day after day, and they keep coming for names like lucid and tesla continues to be much more active than i can imagine and tesla, scott, where they're easily more than a million contracts a day. many days they're over 2 million contracts and it gives you a little bit of an idea of how much attraction there is right now in the ev space where we're seeing so much unusual option activity buying upside, and by the way, they aren't extremely expensive oftentimes as a matter of fact, i look at a lot of these as a great opportunity, risk reward wise when they work and when they work they really work, but it doesn't mean every time they buy they're right. there comes a point when they're absolutely wrong and maybe now is the time and they've had a
nice run for the last three weeks or so. cnbc investing club with jim cramer says you want low multiple stocks right now and you should buy into some of the non-tech weakness and pete, i bring it up because you mentioned it in passing or someone did, maybe it was josh, as well about the financials and pete you bought the xlf calls and financials have been trading since rates started moving higher in the last few days and financials got a bid the minute that powell was re-nominated >> 100%. >> xlf is new for you. >> yeah. >> yeah, and the reason, scott, is this. i have great exposure in terms of some of the financials and i believe in the financials going to the upside. at some point in time we'll see a lift to the upside, but i look at some of the names within the xlf and some of the names that we throw into the banks and the j.p. morgans and so forth, love those names, but at some point in time it seems like the other names can be the better participants in the move to the upside as we start to make a bit of a move.
we'll have to see if that continues or not i like the xlf they bought in size and because of that, that's what due me in i don't want to be in etfs, i think the individual names will give me far more beta and when i saw the xlf car buying that it would seem, i wanted to doing some else and j.p. morgan. i don't want the price to earnings and there are a lot of different names out there where they seem a little bit more -- they're higher than they had been in the past and because of that i think that i just wanted the overall xlf in this particular case so that's why i bought those calls the stock was trading and the etf was trading around 29 at the time and they were buying in those calls. i'm in those calls, as well. >> let's go through some of your moves before we take a break i know you've been in this a long time and you bought more uber also. take me through. why? >> so xbo, scott they had misexecution quarter. the stock sold off and brad
jacobs, we wehad a call, and thy couldn't deal with the amount of demand they had and that hurt their customers and essentially what management is now committed to raising margins and they're 2.8 times leverage and restructure the operations and trading at nine times ebitda when their competitors were trading at 15 to 20 and i think there is an opportunity here for a missed quarter uber, on the other hand, if you look at, they've been doing everything right they are making money in mobility and they're making money in uber eats and they're putting money behind uber plate. the stock hasn't moved anywhere and you heard the ceo buy last week and this takes two steps forward and three steps back, and it's misunderstood and it's a stock that people are not really understanding and when they execute in the last quarter
and they do everything they said, but this is an investment and not a trade into the end of the year and this one you'll be rewarded >> josh, you have uber recently, as well. >> i agree with everything sarat just said. if you're looking at a trade, this is one of the messiest, slopiest charts you'll find. there's no signal there. i'm lookinga the it as an investment like sarat is and they're executing and i do believe the quarter we're in, the first quarter will be their first quarter of profitability and i think if and when they signal that or announce that, the stock should really be in a place where we've seen the lowest we'll ever see, and i think there's a lot for them to build on on both the eat side and the right side so i'm looking at this as a long-term situation. i think they're basically becoming a next-generation yiet tilt that a lot ofother businesses will be built on top of i like it from that standpoint we'll take a break
speet has unusual activity and another company going public via spac the ceo and the sponsor joins us in two minutes what does the future of strength look like? it's dynamic weight that adjusts for you in real-time for a more efficient workout. and you can only experience it... (sigh) on tonal. ♪♪ 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.
cannot claim self-defense when they were the unjustified aggressors defense attorneys claim that arbery died while resisting a citizen's arrest by the defendants one confirmed death after a fire and explosion at a home in flint, michigan. fire officials say that two people are still missing although one may have been found safe three other houses suffered major damage the explosion spewing debris across an entire block in new york, preparations for the macy's thanksgiving day parade are well under way. officials say there are no credible threat, but just like previous years, some 360,000 pounds of concrete barriers are being placed along the parade route. on the news, holiday shoppers ticking items off their list get a look at four ways the shopping experience has changed since the pandemic began scott, back to you. >> thank you help rahel solomon. manscape going public via a 1 billion spac deal with acquisition corp and for more on
the company and the current spac environment, mike may mahan and the current ceo. mike, you first, why this company and how long did it take you to find it >> we think we found a very special company in manscaped, and it's been extraordinary what they've been able to do in a relatively short period of time and in three years they went to nearly $300 million in revenue they raised $23 million of equity which is an extraordinary achievement. we were fortunate to find them relatively recall owe in the process and one of their board members called us and said i think we have your spac company and we couldn't believe what we were hearing and we did a lot of work around the company to validate what they told us and we were pleasantly surprised when they checked out.
>> paul, the numbers were astounding and i had to do a double take myself when you go to $1 billion, to $300 million today and you have optimistic projects of 500 million by 2023 how in the world did you do it and how did you even get to that bigger number we obsess over making the very best products for men, and i think that obsession carries through to our customers and our million members. we now have an active million members in our subscription program. we started in the groin, and expanded to the rest of the male body and we have our customers' permission to take care of them from head to toe and how we'll continue to grow in the future years. >> yeah. as you just said you are profitable and what some people may not realize, how much of a
big spend, though, do you need to do now to get to the projections that you've laid out for your investors >> what's really exciting is we're actively deploying $100 million on marketing and media a year, but what's special about us is that we're recouping that customer acquisition cost extremely quickly and as soon as our customer purchases online and we've recouped that cash and 70% of those customers opt in into ecoming a subscriber. we show the bump as we're having a conversation and it is under 10, though what does that say about the current spac environment a lot of people chasing and looking for similar deals and there it is. it's a little over ten now, but you know my point. >> i think the spac market is challenging right now, and i think that our view is the cream will rise to the top and we just think that we have an
extraordinary company and maybe it took a little longer than we would have liked, but this is a fantastic company and a tremendous partnership and we couldn't be more bullish on the future >> you have, as your pipe, included in the pipe the actor channing tatum, who i want to talk about in a second and the endeavor group and the tatum involvement is interesting to me you did deals with celebrities before the ryan reynolds deal with of a jagz, and the kim kardashian deal with skims and it's an endorsement deal >> we view it as celebrity partnership, and skims was a fantastic investment led by our co-chairman john howard and aviation with ryan reynolds and led by our other co-chairman and those investments were terrific and that focused on one celebrity. we are focused on a multi-celebrity strategy because this company is global and we think that you have to have
global celebrities you have to have original celebrities. you will see a lot of announcements with respect to celebrities in the future from us in the coming month ahead >> paul, you mentioned your growing sub business and i know you're available in a burn of big-name retailers and how quickly is the subscription business growing now and how fast do you need it to grow? i ask you that wondering if a guy like pete, for example, that thing that he has on his chin. you said you're expanding your products can we show pete pete, i don't know if you know this company very well or not, but i'm sure there's a time or two where that thing needs to be groomed, don't you think >> it does, yes. indeed it does, so i have to get a hold of these guys you're right >> how fast is the subscription business, this recurring revenue business growing the subscription business is growing and it went from 20% to 40%. 40% of the d on c revenue is from repeat business
guy, conditiogratulations i know it's a big day for you. we'll talk to you soon. >> thank you, scott. up next, pete, speaking of will have his latest unusual activity we're back after this. bank of america is bullish on several multiindustrial companies as potential winners from the bipartisan infrastructure package the firm believes the $7.5 billion of spending allocated towards electric vehicle infrastructure will drive ev adoption and provide a boost for the stocks of ian corp itt, 3m and ckllrowe automation and that's your esg fast fact of the day. but also to do good with their money as well. ♪ ♪
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with ibm, you can do both. your business can unify apps and data across your clouds. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues that's why so many businesses work with ibm. we have unusual activity now. pete, i hope you're not mad at me you know i'm playing around? >> it's all good, man. i probably need one of these things it is what it is you're exactly right unusual option activity other than my chin, micron technology. this one's interesting, scott,
because when you look back just in the last month this stock was $68 a month ago, and here it is today trading closer somewhere between $85 and $87 a share and we're seeing some gigantic car buying yesterday and they bought 22,000 of the 85 strike calls and today they're back once again in micron and they're buying 8,000 of the 87 strike calls that expired on friday and they're positioning into micron as the stock is up towards the highs. back in april it was a $95 stock and we're not that far away and the stock's been in the move to the upside starbucks, we're seeing pretty good activity and right around 113.50 and maybe less than that. we had a bare of 9300 of the december 3rd expiring 117 calls so they're looking for more upside and they're looking for a little bit of time and that's what we're seeing right now in starbucks and those were going from 50 cents to 70 cents and i have one less for you, scott
because we were talking about the ev space and i have multiple different names hitting my screen one of them is nio it hit with sizeable buying yesterday and they also buying today in nio and they bought 18,000 of friday's expiring 43 strike calls and when i say they continue to come after all of these different evs and they're coming in size,this is a great example of that. they were buying yesterday and they're buying again today and they just continue to buy in the ev space and it's uncredible i think you mentioned the nio buy and did you buy the 43s? is that specifically what it was? >> i have the 42 ', and i have the 43s that we're hitting today and it's amazing, scott. one after the other, after the other and i see different names in the ev space and the lithium space continuing to hit on the unusual side of things >> unbelievable. straight ahead, nfl player and a member of cnbc's financial
♪ ♪ ♪ welcome back cnbc has partnered with a corns, the wellness and education initiative called invest in you. ready, set, grow our next guest is a familiar one. brandon copeland he's a linebacker with the atlanta falcons and also a member of our financial health adviser. >> glad it see you. >> i can't believe you're with us after a new baby boy born yesterday, bralen, congrats to you and your wife. >> thank you he was born a couple of weeks ago, but it feels like yesterday with the way he's crying. >> i hope you're getting some sleep. >> i don't know if it's your first, but the best to you and your growing family. >> tell me about this money, music and culture podcast you have all around financial literacy which i know is so near ask dear to you.
>> i appreciate it, we've been trying to find more ways to educate people on money, right and obviously, being a professor and talking, there are some times to be honest with you, my eyes are glazing over when i talk about interest rates in bank accounts versus checking and savings and my co-host and i a trying to find ways to use the universal language of music to dive deeper into financial education topics we listen to jay-z, nipsey hustle, beyonce and some of our favorite artists and breaking down the lyrics. so when beyonce says payment and equity, not too many people know she was performing uber, she was paid $6 million in stock and when it went public it was more than 6 million
so it was sharing gems through music which is something that i personally love. so -- you have five episodes thus far not to name all of the names of them, but recession proof and play the game or let the game play you and how do you improve your credit and just to give the kinds of topics that you're talking about and it's pretty wide ranging, it sounds. >> yeah. we literally will come to the set and come it a shoot with a couple of songs in mind. we'll literally listen and we'll let the conversation flow from there. so again, it's layman's terms, right? it's a conversation so i really hope everybody checks it out it's on youtube, spt phi, apple and you can listen and watch it, but we go through a lot of different emotions and conversations in there from how to build wealth for your children and ways that you're setting up -- me, i have a newborn. what am i doing to make sure he's financially free the rest of his life, right to again, what makes up your credit score
you work with a wide range of topics and we release every tuesday at noon. a new episode every tuesday. >> josh brown is one of my panelists and josh, music, culture, personal finance, and this sounds like it's right up your alley >> it is brandon, i first became aware of your story through the earn your leisure guys i think you were on the show a couple of years back for the first time, and i just found it admirable that you were able to save so much of your salary, and i feel as though you were early to this because in 2020 all of a sudden everybody got interested in markets and investing and entrepreneurship, but you've been on this for longer than that how do you feel about all of the new voices that are now giving people advice. some of them giving good advice. some of them giving questionable advice like, how do you cut through all of that, given how
loud the conversation with entrepreneurship has gotten on the internet and on instagram, tiktok, et cetera? >> yeah. great question, josh one, i would love to have you as a guest on the show and you as well, too, scott >> i'm in. it's one of the toughest thing in the world because especially when you're learning about this stuff and there are clubhouses, what are they saying right now you know what i try to do is personally i try to lean on the people who i admire, not just admire, but i can see multiple people backing up the information that they're saying and i never make an investment decision or a financial decision after one person has told me something and sometimes they might make me late to the party, but i'd rather be late and keep my money than be early and be the guy that everybody's laughing at so i try to make sure that i'm getting my information backed up by multiple people and confirmed
and then also as everybody knows, confirm it with your own advisors and you know, personal people who represent to your best interest. but no, that's a great question because the earn your leisure guys are doing amazing things. i've seen your episode with them, and there are a lot of people whoi think are capitalizing on the lack of barriers to giving information nowadays everybody can look like an expert if they paid for followers. >> we -- we love what you're doing in terms of educating people especially in this area and what you do in the community and i want to leave on that note by letting everybody know what you and your wife did yesterday beyond the basics, be a blessing foundation from 5:00 to 7:00 last night at a public grocery store in atlanta, you paid for the entire store's groceries up to $21,000
worth. so that's just an incredible thing that you are doing i hope you have a great thanksgiving and continue to be a great person in the community that you are >> well, happy thanksgiving, scott and josh >> best of luck with you and your baby. we'll talk to you soon that's brandon copeland. invest in you, we should note that nbc universal and comcast ventures are investors in acorns retail today best buy and dick's sporting goods both tanking double digits and we have ownership on the committee. find out what they're doing next
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shares of best buy, take a look at them down 15% today the retailer beat earnings estimate, gross a year earlier s forecast for the holiday quarter were below estimate. steph, what do you do with this? you own it >> it was up 30% since october so it had a huge run expectations were quite high i thought the quarter was fine they beat on a solid comp of 2%, but the whisper number was 4%. the guide, as you mentioned, scott, disappointing on the comp line they bracketed earnings relative to the street, but the comp line was disappointing. i think some people think ha the third quarter pulled forward from the fourth quarter. so i'm going to just let the dust settle here for a little bit, but i think at 12 times earnings they're doing the right things, restructuring, cutting cost and that sort of thing. i am a buyer on weakness in next
couple of days >> pete, you sold your best buy calls last week. >> yeah, which was good and bad, scott. i mean the stock continued to move to the upside which is the bad part, but the good part is it made a move to the downside to what steph is talking about, i look at these numbers as not as bad as the interpretation of a 15% move to the downside stock is too cheap i'm looking at it in terms of how i want to position, do i want to do it through stock or options. i'm looking at that right now, scott. >> the other stock getting hammered is dick's sporting goods. despite an earnings beat there steve weiss talked about this stock multiple times he joins us on the phone weiss, cramer said the quarter was perfect. it is just not good enough what's the story why the pull back on what was such a good quarter? >> scott, i don't understand it. i think perfect was actually a an understatement. they beat top line they beat bottom line. they raised numbers for the fourth quarter in excess,
meaningfully in excess of what the beat was in comparison to some others we have seen like target and best buy, which i think should sell off either, margins went up. they're in phenomenal condition going into the christmas season, which they already said is going better than expectations because inventories are up 7%. so they had a leading market share in their segment, and they have preferred relationships with all the major vendors and some spectacular partnerships including the one recently announced with nike. what i did was i'm not waiting i bought the stock a few times today, most recently at 124. i also bought some at 129. i had a core position going in, so this is just giving you trading position on top of that. but, you know, usually you can find some reason why it sold off, and in this i just have no idea i think it is the market - >> i'm looking at a big number year-to-date gain which may be all you need to know and it is up like 130% year-to-date.
so you have to wonder how much of the gain was already in, how much was pulled forward. maybe some of the business was pulled forward i mean best buy is talking about a similar dynamic, having to contend with even when you have pretty good results. >> you know, that's a good point. however, despite the stock being up that high, as i mentioned last time quarter, it is cheaper than it has ever been because earnings estimates have gone up 50%, their guidance. so right now i have a stock trading at about eight times earnings that grew sales this quarter 12% when the estimates were that they were going to grow sales 1.9%. so they don't believe they pulled anything forward, just continuing to strengthen the franchise. >> all right >> it is an opportunity is all i can say. >> yeah, no, clearly you put your money where your mouth is buying it twice today, i think 124 and 129 is where you said is tnk is 128 and 130 right now.
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♪ all right. it is "final rade" time. st stephanie link, you are first. >> american express, a reopen name leisure spend improved above 2019 levels and we are about to get travel into '22 and '23. we will see operating leverage next year. 17 times earnings. i like it. >> mr. pete, corporate at the bottom i heard you bought it. >> yeah, utilities it is exciting for me because somebody is rolling a trade that actually made them some nice
money. they're going out to january '22 calls. i bought those as well >> sirat >> morgan stanley. i think the stock is going to rerate amongst the financials. watch for this, too. >> in the cramer camp. josh brown >> best chart of all of the financials is still jpmorgan chase. i think we see new highs before year-end >> good stuff, everybody thank you. "the exchange" begins now. ♪ thank you very much, scott hi, everybody. here is what is ahead this hour. tapping the reserves the administration announcing it will release barrels from the strategic pe troet yum reserve in an effort to curb rising gasoline prices. will it work and why are oil prices going up today? we will speak with the energy department's deputy secretary and with goldman sack's jeff curry in a moment. plus, mind the gap the action, the story and the trade on gap and nord strum with their results today. swipe, pay and serve how one company is trying to