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tv   Fast Money Halftime Report  CNBC  September 12, 2013 12:00pm-1:01pm EDT

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here, down 3 points at 3,721. but earlier in the day, a 13-year high. the return on the nasdaq year-to-date, 23.5%, compares to just 18% for the s&p and 17% for the dow. let's get back to headquarters. scott wapner and "the halftime." carl, thanks. welcome to the "halftime" show. four hours until the close. let's take you to the wall. we have some work to do on the street today if we're going to keep this streak alive. there's the dow down 17. the s&p, nasdaq, also negative today. here's what we're following on "the half." face-lift. facebook gets a new all-time high, but what now for a stock up 90% in three months? debate it, with icahn loading up, in the big unveil, where do apple shares go from here? is 400 or 600 next? two trader guess toe-to-toe. first, the top story. the dow looking for the fourth
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consecutive triple-digit gain. we have some work to do. it's something it's never done before. it's been that kind of run for stocks lately with the s&p up seven straight days and only one 1% away from its all-time closing high. so should you ride the momentum or have we simply moved too fast ahead of next week's fed meeting? oh, yeah, that! we're trading the action with mike murphy, steve weiss, pete najari najarian. mike, you ride the momentum? >> definitely. we had the pullback that gave you the opportunity, 4%, 5% pullback off the market highs and now the market has come back in the face of a lot of adversity, a lot of money coming off the sidelines going in to buy quality names. i think you stick with this rally here. financials haven't really taken part in the rally. i think there's still some value there. but there's nothing out there on the immediate time horizon that tells me you want to fight the momentum of this market. we've had higher lows and the market continues to move higher. until that breaks, stick with it. we're going to higher. >> is that the case, weiss?
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>> i believe it is. >> stick with the momentum? >> absolutely. i like the market. i'm bullish, adding to it selectively. there is something that potentially is a momentum breaker and that's on the 18th, the fomc meeting and the subsequent conference. i think it's priced into the market. i'm still positive on the market. and $10 billion is nothing. plus, you have the global economy's improving. china continues to print good numbers and they can print whatever they want. i know it's almost like esop's fables. it's a good story they're telling. the fundamentals continue to improve and we'll see higher corporate earnings justifying a higher market going forward next -- >> what do we buy, then, if we like to ride the momentum, we stay with the stocks that have been working? or do we start to look broader? >> well, i like the stocks that i have. where i have been adding, i bought qualcomm back, not a big position, a few days ago. suffered a lot yesterday. but now it's looking good with the new buyback.
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i still like the banks. to murphy's point. haven't sold any of them recently. i think they're very attractive. also an aig. so i think you can pick your spo spots. in the capital space, equipment, eaten is a good name. you'll see good earnings there. and goodyear tire, which i think is a phenomenal story. >> aren't you getting tired of the bear story? are you bullish? >> no, no, but i did buy stocks earlier. i haven't short this market since june. so i've been long. i bought stocks two days ago. i sold all of my stocks, though. the reason why is not because i'm necessarily crazy bearish, but the risk-reward isn't there anymore. we've had a massive run. why not take some off the table into the fomc? we still don't know what will happen. that's a huge headline risk. take some profit, nothing wrong with that. >> you're 100% in cash? >> on the equities side. >> wow. >> why is that? i don't understand. the market isn't substantially higher value than it was when you bought stocks just a few days ago, and then you turn -- >> no, no, no, not just a few days ago. >> i thought last week you said
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you were bearish. >> not at all. no, no, no, no, not at all. no. i bought emerging markets. i bought some european stocking. i bought u.s. stocks. all of those have done well this summer. why not take some off the table? >> doc? >> judge, what i've been talking about was how they rip the open wound, of course, hurt the most when you tear the bandage off. and is that what the fed was going to do with this taper? i don't think they will. instead, i think we're going to see very light taper when we first hit with that, and that's part of the reason why you've seen the market react the way it has. in other words, i think we continue to grind to the upside, to frustrate the ghouls out there who want to see us move to the downside very quickly. there's a whole bunch of them -- viewers, as well as folks on twitter -- that cheer every little bit of a downturn, and yet it comes right back. and even with the eem that you were talking about, steven and bk, the emerging markets, we got down. we never got as low as the june
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reaction on the eems. they only got down to about 37, 40, and now back up over 41 now. so i think things continue to go higher. >> kate moore, the chief investment strategist with jpmorgan, private bank, $900 billion in client assets over there. what do you make of this argument? what do you make of what's happening in september? it's been a surprise to many people based on what october -- on what august was showing us. >> there wasn't a real reason for a massive sell-off in the last part of august. people started to get more comfortable, i think particularly with the non-u.s. data that's been coming out over the last few weeks. we've seen a lot of upgrades of chinese growth. a lot more people feeling more constructive on asia, despite the fact we've had major moves in a lot of the currencies and also concern about the structural issues over the medium term. but we've been saying for a while we wanted to own em, we felt comfortable with the
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allocation, concentrated in north asia. and even after a lot of volatility this summer, we didn't reduce the positions. we felt good about the way we handled it. >> yeah, so let's have a debate on the desk. you heard what ryan said. he agrees with your thesis in large part. it's just he's taken some off. you see no reason to get bearish on that part of the world anytime soon, on the positions you have there. >> i think sentiment on e.m. is still really bearish. yes, the macro has started to move. we're getting the second derivative, we got that in europe in growth earlier this year, and that turned a lot of people aroundment but we're not seeing huge amounts of ownership. in fact, most of the flows are pointing to investors taking money from active and passive funds in china and in emerging markets so far this year. and until we see that really turn the corner and with valuations as cheap as they are at nine times forward for china, i think we still have a little more room to go. >> so are you buying china a shares, the periphery, hong kong, where are you going on?
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>> we prefer active management and a lot of e.m., because we don't want to be concentrated in state-owned enterprises. so looking for very specific stories. that's how we're allocating across e.m. asia. we think there are opportunities in korea and taiwan, as well. and increasingly, as the market turns and the macro solidifies, we'd be looking in places of southeast asia that have been sold off, i think, really aggressive in the last -- >> i sold most of my china exposure, which i play through the fxi, because it's the large-cap stock, but i don't know on what measure you're saying nine times is cheap in a country that has opaque accounting and you can't tell what's going on, and is notorious for fraud. so couple that with just an unsustainable debt load and the shadow credit finance that we see, that, by the way, has quadrupled over -- >> if i could jump in -- >> hold on. why is nine times cheap? >> nine times is cheap relative to the rest of the market that's not producing a tremendous amount of earnings.
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you may not love the fact that chinese accounting is not as clear as u.s. or perhaps european or any of the developed market peers. for the -- they produce much more solid earnings in terms of an absolute level in the second quarter than europe or ex-financials in the u.s. there was positive earnings growth -- >> isn't that circuitous reasoning, if you can't trust the accounting, how do you believe the growth that you know they're printing? >> i'm also of the belief there are crooked managers in every geography, and people will always try to take advantage of the system. to cast a wide net over asia and say everyone is cooking the books is unfair. >> i was going to say. steven, you've been making that same point for a very long time now, and people here in -- >> i've been right for a long time. negative view in china. >> china is up 14% since the end of july. >> i caught 7% of that move. >> so we had a good move there. >> but you're buying it for a trade. like anything else, i don't think anyone wants to get
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married to china. but there's -- >> no, they're happy to be married. they said they had a position -- >> no, can you trade china the same way you trade u.s. >> i agree. >> and, the same debt load argument you make about china you can make about the u.s. >> no, you can't. >> the difference with china is the debt is all held domestically. >> -- you cannot make the same debt load -- the u.s. is not a house of cards, okay? >> china is? >> yes, it is. >> says you. >> not says me. >> i don't want to get into a debate over whether china's numbers are real or not. that's tired, old. u.s. >> yeah. >> are there reasons to be bearish about what we're seeing in the market right now? have we come too far here in september? is it justified? syria may be on the back burner for a while s that why we've rallied? earnings are a couple of weeks away. what do you do here in the u.s.? >> look, we're overweight the u.s., but we're not necessarily adding to positions ahead of the fomc and ahead of some of the september and really, you know, end third quarter data that we're starting to get. we think it's important that companies actually show sales
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growth now. you know, we've given them a pass on the fiscal cliff and on fiscal austerity and now it's time to really show us the money and show us that they're going to engage in cap ex, that margins can be maintained and that they can grow at the top line. so we like our overweight allocations in the u.s., but we're not going to add, i think, ahead of the -- >> i think that's exactly where we agree. where i tend to be a more active manager, she's trying to allocate across. but coming into the fomc, the risk-reward, if you have not bought anything yet to go and buy today, your risk-reward isn't in your favor, so be careful at the very least. >> your bullish global economy, you like some of the cyclical names in the tech space and otherwise, right? >> yeah, we still think there's a lot of opportunity in cyclicals. tech is an interesting place, because it's a place that i think a lot of investors were allocated during the first part of the bull market, and stepped away as they reallocated toward financials and the least-loved sectors last year. and this year, it's been a little bit of a laggard. we think there are opportunities, if cap ex does come back, and those that are geared toward the secular consumer cycle. >> kate, thank you so much.
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>> thanks. >> good to see you as always. kate moore, again, jpmorgan, private bank. a "market flash," dominic chu. >> scott, a couple of trading models, internet giants facebook and yahoo!. facebook shares did hit a new record intraday high earlier today. the social networking giant backed off the level. flat to marginally lower we'll call it. then, there's yahoo! of course, still in positive territory, but off the session highs. it reached the highest points since february of '08. now, the new highs for both stocks come on the heels of both facebook ceo mark zuckerberg and yahoo! ceo marissa mayers' interviews at the techcrunch disrupt conference. back to you. >> all right. let's trade both. facebook first. sale signal here? keep riding the momentum? >> you keep riding it. in fact, judge, they're buying them up to the 46 strike right now. trading 2-to-1 calls to puts today again. they've been continually "they" the big institutional option investors, have been buying upside calls from the 40 strike, then rolled them up to the 42s, the 44s, now rolling up to the
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46s. so as far as could this be ending next week? i mean, they're not picking october and further out timeframes. they're very, very short term. they're in the septembers. so they're looking for this movement to continue short term. >> for a trade on facebook, i would disagree with doc. i said this at 38 that there would be a lot of stock for sale. i proved to be wrong. up here at 45, i think you're going to see a lot of stock for sale. this momentum has carried a lot longer than it should have, in my opinion, although i love the story long term. i think you're going to see a pullback in facebook, in my opinion. >> so? >> i'm long facebook. staying long facebook. i got in for the momentum trade. i think it goes through 50. >> despite your issues with the valuation. >> right. because i think the momentum of the fundamentals are strong, and if valuation were a concern, i would have shorted netflix at 100. sometimes, you know, it's just not my game, but it's plenty of other people's game. >> i think what facebook's done is finally learned how to play the wall street game and give wall street numbers and commentary that they want. up here, i'd rather be buying on
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a pullback. again, just tremendous momentum, i'm not the guy to be buying at the high. on a pullback, yeah. >> if yahoo! is at the highest level since 2008 and facebook at an all-time high, having a great run, which one is more attractive at this point in time? >> facebook. >> facebook. >> why not yahoo!? >> i think a lot of the story in yahoo! has to do with the pricing of ali baba and had a huge run. if you're talking the next two, three years out, facebook has more upside than yahoo!. >> she's done some things, but not big things. still the honeymoon period. you have to see some action here. the s&p at session lows. crude, just hit above 109. not big moves on either side of the flat line today. again, going to the dow for its fourth consecutive triple-digit gain. something it's never done. coming up on "the half," a five-star portfolio manager lays out the retail stocks that should be on your shopping list. plus we warned you about lulu. >> the issue here, i think, is valuation.
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i mean, and they're eating their lunch, too, because what they couldn't get at lululemon, they went over, checked out -- >> you have a situation here where a company needs a rudder and they are rudderless in this environment. it's not a name to be in. you sell this one. >> good calls tl. find out what the next move is when we come back. [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account.
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all right. welcome back to the "halftime" show. top three trades. pandora. surging after naming a new ceo. murph? >> yeah, pandora is up over 13% today on the news they're bringing in mcandrews as the new ceo. i don't get this move. if you're fortunate to be in this name, i would sell this position here. up 13%. i think people out there are looking for the next netflix, the next tesla. there's way too much competition for pandora, in my opinion. >> next up, qualcomm. unveiling a $5 million stock buyback. weiss, you alluded to you. you're in the name. >> yes, i'm in the name. got back yesterday, it was painful in conjunction with the apple news. but it looks poised and ready to go. the $5 billion adds to the almost $30 billion they've given back to investors. they're very investor-friendly, very shareholder-friendly, increased the dividend. the good news is the company's changing a little bit. they're virtually in every low-end and high-end phone and
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came out with their own smartwatch. so you're seeing another iteration of the company. i think you have a buy here. it's one of the cheapest tech companies here. >> doc, you warned on lulu and they gave a forecast below street expectationiexpectations is getting hard. >> yeah, they had a weak start to the quarter according to the cfo. they'll continue to have margin issues. we talked about that yesterday when pete and i debated it. i covered shorts on this one, judge. i would be willing to get long right around the area of the lows of the day here. i did not, but i am willing to buy around these levels, because i believe that this is a takeout candidate, ultimately, and that after this sell-off, if it consolidates down here, and it doesn't just have a knee-jerk back up, i think somebody starts looking at them real hard. i think that somebody is nke. >> ooh, all right. bk? >> well, that's exactly the bearish case, is that nike has now entered the space. you have a company without a ceo, and they have competition. that's what they mentioned when they lowered their guidance for the rest of the year.
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doc makes an actually interesting point, maybe it's not nike. maybe it's somebody looking to compete with them. but if you are short and you're fortunate enough to be short, cover them like doc did. >> all right, lulu isn't the only retailer to deliver a gloomy outlook. macy's and walmart slashed their forecasts. peter dixon runs fidelity select retailing fund, which is up 27% this year. peter, welcome back. >> hi, scott. thanks for having me today. >> so broadly, what is your thought on retail in general? you know, from the mixed news that we've seen -- i guess more negative-leaning news, certainly from the teen retailers to the department stores. what are you thinking right now? >> well, you know, i like investing in retail stocks, because i feel like they're great opportunities to make money regardless of what's going on in the macro environment. the key takeaway now is you have to be selective. i'm just as optimistic as i've
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ever been there are great opportunities to make money in specific retail stocks. you know, the aggregate numbers, they haven't been terrible, they haven't been off the charts, but that's not the real story. i think you can identify winners and losers, that you can always identify winners and losers, and there probably always will be winners and losers. so you have to find the winners and avoid the losers. but i am optimistic. >> let's talk about places to steer clear of. steer clear of departments and teens, because of the things i mentioned at the top? >> if you look through my recent holdings, you would not see department stores and teen retailers. you would, however, see some brands that are doing well in some of the department stores. i'm a big believer that stocks follow earnings, and i start by looking for brands in categories, because i feel like those are the best predictors of long-term earnings growth. from a brand perspective, i'm looking for brands that are increasing in popularity with consumers, and there are some brands that are doing well, but as a whole, you wouldn't see department stores or teen
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retailers right -- as of my last fund holding. >> top holdings include home depot and lowe's, autozone. you've got a good auto story there. what else do you really like right now? >> well, you know, i can talk as of my most recent holdings, and from a category perspective, you'd see global fast-fashion retailers like h&m and endotech, ross stores, the after-market auto parts, o'reilly had a great second quarter, some luxury names as well, and also see housing, as you mentioned. >> you mentioned o'reilly, which was a stock i was going to ask you about, so instead i'll switch gears and mention one i just talked about, nike. this is one you follow, or one that you would certainly consider, is it not? >> nike is in the list of holdings as of my most recent statement, yes. >> do you think there's any potential here for m&a from this firm towards any other firm in the universe? >> gosh, you know, i don't think
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i could speculate on that. >> what he really wants to know -- i'm going to rephrase it the way he really wanted to that question. [ laughter ] is nike going to buy under armor or lululemon or someone like that? >> gosh, you know -- >> let's cut to the chase. >> -- i don't know. i don't really know. if you look at -- you know, you take -- you guys have been talking about lululemon. if you look at the most recent quarter, they had 8% same-store sales in a quarter where they had product issues and undergoing a management change. by the way, that was actually 13% growth if you include online, like most other retailers do. they also, gross margins were ahead of expectations. i know the market is disappointed by that -- by this report and by the outlook, and quite frankly, for a high-multiple stock, execution needs to be better. having said that, again, i'm looking for brands whose, you know, are growing in popularity with consumers and you guys also talked about the quarter's off to a slow start, and they did say in the call, some of the new products they're sending to the
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stores are selling within hours. the consumer is voting with their wallets, and if you take the second quarter's results, they have been showing strong results. and then, if you think about the size of lululemon versus the size of nike, maybe roughly 1.7 billion of revenues for lululemon and almost 30 for nike, the key question in my mind over the long term for lululemon, does it have the potential to become the next nike? and i don't mean, does it have the potential to mimic nike, but the swoosh? does that lululemon logo, does it have the appeal among consumers to grow multiples? 226 stores now. how big could it be? that's the big question in my mind over the long term. whether that's with nike or whether that's on their own, that's less of my focus right now. but it's a good question. >> well, given the knowledge that you just put on us about lulu, it sounds like you own it. >> it is in the list of holdings, yes. >> yeah, i figured that. all right. good talking to you. peter, we'll talk to you again soon. >> great, thanks for having me. let's do the biggest "pops
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and drops" in midday trading. valero, a drop. >> yeah, the margins are squeezed tremendously and postponed a project. i'd much rather be long oil, which i am, as opposed to the refiners. >> wise cliffs. >> here's what's ironic about cliffs. i don't know if you got that pun -- but what's ironic is that their coal is in iron -- >> -- neither did anybody else. >> i'm used to dealing with a higher-brow crowd. their coal is in net coal, which goes into steel. what's hitting the stocks today is the steam coal, which produces coal for energy. and that's an issue as the government's putting out new regulations. i don't like this stock. i don't like the iron ore stocks. i don't like coal stocks at all. >> men's warehouse, doc. >> revenue missed, lower guidance. i know the former ceo would have said, "you're not gonna like the way this looks in your portfolio." and it certainly doesn't look very good right here. i'd stay away. i think there's some more trouble on this name going
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forward. >> lennar, murphy. >> yeah, glad we got this in quickly, because the stock was up over 3% earlier and currently trading just under 1% to the upside. homebuilders have really started to fade here recently. lennar will be announcing earnings in two weeking. we have no position. i would wait. i want to see what the quarter looks like. >> all right. coming up on "the half," has gold lost its luster? the precious metal touching a one-month low. we'll head to the futures pits. plus, general motors is introducing two new vehicles today. when we come back, the company's cfo, daniel ammann, will join us. it's an interview you'll see first on cnbc. we'll be right back. every morning, the markets take off. at noon, "halftime report" puts it in context. but the news is driving the market, the debates making the news. get a jump start on the afternoon. [ bagpipes and drums playing over ]
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market, so anthony with the economic data picture improving, is gold starting to think the taper is coming? >> oh, i definitely think so. the taper -- unlike equities, i think it's factored in there. gold, it's not factored in yet. yes, i think it's coming. also, physical demand, falling off the cliff. in hong kong, gold dealers are selling bars at spot price, no premium attached. and, also, gold spider trust, less of holdings, down by almost .5% right now. >> jim, if the fed indeed does come out with the announcement on tapering next week, how low could gold go, or do you think it may be factored in? >> no, i think the taper's factored in. i think is more syria. i think people got pulled up on syria, and last night they thought it moved to the back pages. the technicals have been damaged below 1,350. there's a bitter level. i won't sell at 35 in the hole. if it has a bounce, we'll talk about that more on "futures now," but it goes down to the
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low 1,300s eventually. >> all right. we'll get more in the live show. we'll be joined by two market heavyweights, robert schiller, dennis guardman, talking stocks and all kinds of things at 1:00 p.m., futuresnow.cnbc. write it in your diary, make it a date. back over to you, scott. >> thank you so much. general motors is unveiling the 2015 lineup of full-sized cars. phil lebeau is live in new york city with general motors' cfo dan ammann for the first on cnbc interview. phil, take it away. >> thank you, scott. i am joined by dan ammann, the cfo of general motors, standing in front of the new chevy tahoe, i'm in front of the new suburban. big rigs as people like to call them. a lot of people might be surprised you're unveiling new, large suvs at a time where gas prices really haven't fallen that much, but you think this is a critical market you cannot ignore, right? >> this is a very important statement for us and for our customers. it's a 250,000 units a year. we have very strong position in the market. we have 75% of the market, so
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it's a very important segment for chevrolet and for general motors. and we're meeting customer needs with these new trucks. and all of the upgrades and refinement and improvements that are there, they're all things our customers are looking for. >> these are not inexpensive vehicles. the retail price is going to be well over $40,000 for both of the vehicles. when you ultimately announce pricing on it. transaction prices for all vehicles keep going higher. and yet the economy is a bit of a disconnect. does that worry you, or do you look at the american consumer who goes into showrooms and see somebody who still wants to spend? >> on the one hand, we've had significant growth in auto sales over the last two to three years. on the other hand, the economy's still not showing all of the signs of recovery and growth that you'd want to see at this point. employment's still challenged. household income recovery still hasn't been there. auto sales have been very strong. what we're focused on is making sure we're delivering real value to the customer. >> does it ever surprise you, the disconnect you're seeing, the people come into showrooms -- i've been to some of the dealerships on saturdays, and it's packed. yet you don't see the optimism of the broader economy. >> well, it's really -- we'll
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see how it tracks together. at the moment, the consumers are spending. they're in the showrooms, as you say, on the weekends. and we hope they'll keep doing that. >> one last question. when you're looking at the ipo, go back over the last couple of years, and you're looking at the possibility of a dividend. i know you can't say -- announce it here on cnbc. when might investors look to general motors and say, okay, they're ready to give a dividend? >> well, obviously, our business results have continued to improve each year. we've been launching a huge number of new vehicles this year and we'll continue to do that over the next several quarters. that'll continue to drive our improved business results, balance sheet, and put us closer to that time. >> the answer we always get. dan ammann, the cfo of general motors, joining us first on cnbc. guys, one then to keep in mind, as you look at shares of general motors, look at the trend. the stock is going close to a 52-week high, and it continues to move higher. back to you. >> phil, thanks. i guarantee traders are watching that. what are your thoughts on general motors, ford, toyota, some of the other names? >> absolutely. the autos have had such a great
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run. but it's becoming such a crowded trade now. we're still long ford. but i think right now it's a great time to start looking at some of the peripheral names. steve weiss brought up goodyear tire earlier. that's a great way to play it. i believe the catalyst for a lot of the auto names, ford in particular, is the rebound in europe. i think when that turns positive for them, the stock has a huge move. >> murph just brought up catalysts. i'll bring up a third derivative. still water mining makes the palladium for the catalytic converts. >> which do you own? >> ford. >> ford. >> i did sell a chunk of it. i'm still long. look, it is very crowded. everybody loves them. on a historical basis, the story is fully valued. i do think managements are a lot smarter now. the pension issues aren't as big as they were. >> general motors or toyota? >> toyota. >> yeah. >> toyota, and if you've got a play in the space right now, i still like cummins, i like jci, johnson controls, delphi,
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borg-warner, vwa, i like those plays better than everything but ford. >> ferrari or lamborghini? >> ferrari. >> ferrari. [ laughter ] >> i just had to throw that out there. >> tesla. >> next, icahn bought shares -- he bought more shares -- calling apple a no-brainer. why did the stock fall 5% today? or yesterday. i should say. we know why it fell 5%, right, after the big unveil was a disappointment. but icahn said that he bought a good amount more. we've got a heavyweight street fight over apple just ahead. plus, we all know about tesla's and facebook's massive run, but we're unveiling some under-the-radar mo-mo stocks you need to know about. ♪
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all right. well, apple is suffering its second-worst day of the year. yesterday, following the big product unveiling. but will shares start gaining some momentum following carl
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icahn's really second endorsement? right? he had already bought stock. he just said he bought more yesterday when he was on cnbc. let's debate it now. dr. j is our bull, steve weiss is the bear. 1:30 on the clock. doc, make the case. >> all right. well, apple end to end, hardware/software, you have to like that. i've always liked that about the apple ecosystem, and the folks that don't have that, people that go over to the samsung products and so forth, htc, they woo those folks back. at&t dokimo, yet, they didn't get china mobile, yet, steven, but over in japan, it's $16 billion in revenue. they make $339 from every new subscriber that comes on with apple. that's huge. you look at the opportunity in education as more and more schools shift over to the ipad instead of textbooks and so forth. i can't see a reason to not buy the stock at these levels, and so far today, the rebound is pretty decent.
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>> first of all, i don't know what woo means, because the share, apple's, has continued to decline in phones, while samsung's has continued to expand. that doesn't jive with what you've said. look, i own a couple of very cheap apple calls. they're actually cheaper now than when i bought them. so i'm just waiting to get out of them. >> me, too, by the way. >> i'm waiting to get out of them. the story is this. it's not the story that it was before. we could have told the same story about huge market share for blackberry -- >> we didn't have docomo. >> for hewlett-packard, for dell. look where those companies are. companies have a certain timeframe, and this may not be it. i don't think it's a major short here. but it's now 13 times or 11 times rather this year's earnings. it's only grown at 5% [ budder ] -- that's suspect for a commodity producer, which it is, and what everybody said, including you, before yesterday's, they've got to show innovation. colors are not innovation. >> i agree with that. the colors aren't innovation. >> so if you look at what your
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investment thesis was going into it, innovation, and you didn't get that -- >> that wasn't it! i think the reason that we're down yesterday, steven, was the lack of a deal with china mobile. i think the 5c and 5s -- >> it was down the day before. it was down more the day before when the china deal was still thought to happen. >> it was probably down, also, because they're so-called -- their so-called cheaper phone wasn't really cheap. >> you don't think 800 bucks -- >> not to mention the stock had a run up to the event. let me throw this out there. >> all right. >> 600 or 400? which happens first? >> keeping in mind that we're only -- >> no, no -- [ overlapping speakers ] >> 400. >> 600. >> guys on the desk. what do you think? murph? >> 600. >> 600. i'd like to say, though, about the debate, i will give steven credit. they say it's not the size of the dog in the feet. it's the size of the fight in the dog. steven brings a lot of tenacity, but fighting a losing battle. doc definitely won the battle and apple is going higher. >> tell us who you think won.
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you can use #bull or #bear. we'll give you the results at the end of the show. there's been a slew of record highs in the s&p, yet again today. dominic chu is here with a closer look. >> scott, let's take a look. there haven't been really big flashing lights, bells and whistles, going off. we're only about 1.5% away from record highs in the s&p. in today's trade alone, we've got 50 new 52-week highs for the s&p 500 stocks. out of those, 32 are record highs. and there are some interesting names that are driving the trade across multiple sectors. take walgreen for instance, the drugstore chain. it's up 33% this year. it's at a record high. same with health insurance giant united health group, also at a record high. its stock is up 38% this year. and how about aerospace and defense giant boeing? it sounds like a boring name, but it's up 42% this year, and it's at a, yes, record high. so, guys, 50 new record highs in the s&p. now, that might seem like a lot, but in the grand scheme of
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things, before the market peaks back in august, we had 124 new highs right before we peaked. so maybe just a little perspective, scott. >> guys, let's talk about these on the desk with dom. united health first. we like, we don't like? >> you have to love united health. i think i brought it up last week. my bill just went up 18% year over year, and that's about the fourth straight year that's happened. >> there's a big psych component in that for you. [ laughter ] >> finish your thought, please. >> united health, they just keep on going -- into obamacare, which no one knows what the outcome is going to be, but united health is a name, they keep passing on these price increases to participants and they're not losing any participants, so the stock -- that can support the stock. going from 100. i love united health here. >> a quick note here. cigna and all of the other big ones are also at record highs. >> and they're pricing the markets. that's why. that's why they can charge you 18% price increase. >> it's great for an investor. >> b.a., boeing. >> boeing's done well.
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i mean, especially after the 787 problems they had. everybody was down on boeing. >> "well" is an understatement out of that stock. >> yes. >> flew past all of that. >> yeah. and most of the analysts -- this is where most of the analysts -- "flew" is very funny. >> who owns it here? no one owns bowing? >> i sold mine. sold it too soon. look, i think there's only one place to go for a dreamliner, and that's boeing. they have a defense business, which it can be a little bit of a drag going forward. but i still think it's quality. >> you know what they say about dreams, right? >> no parachutes. very apropos with planes. the crop report is moving some commodity prices. let's get the movers from jane wells. jane, save us, please. >> actually, you know, everybody thinks they got these things figured out and they still surprise the markets. soybean is a surprise. there's a swing today. they were down earlier as much as 17 cents a bushel. then the usda reported that the forecast will be smaller than expected, even though it will be the fourth largest on record.
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it will leave the u.s. with lower than expected stocks of 150 million bushels, so they're predicting that will mean higher prices of 11.50 to 13.50 a share. you can see they shot up -- they've given up some ground, but they were way down. kosh moved the other way. it fell further after the usda says we're going to have more corn. everybody expected a cut in last month's forecast. no, everything went up. yields are going to be better. prices are going to be lower. we'll have more corn. it will be, if expected, the largest crop ever. at 13.8 billion bushels, up 28% from last year's drought. finally, we look at wheat. wheat supplies, wheat's also down now, supplies higher than expected. imports from expected to grow from a larger crop in canada, and world wheat production, guys, the usda is saying, will hit a record 709 million tons, while global wheat consumption should drop slightly. so you can see what's happening there. all of this good for livestock providers and consumers, although not good if you're
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long. corn. and wheat. >> true 'dat. >> did i save you? >> you did, as always. jane, thank you. >> you're welcome. >> see you again. jane wells. next, shares of mercada libre are up 5%. but huh-oh, herb greenberg is back in the house. he's tanned and ready to tell you why you should beware of that one right there. melie. next. and the s.e.c. is meeting with exchange heads to discuss last month's flash freeze. aemon has that story. >> reporter: the heads of all of the 13 exchanges were brought to washington for a three-hour meeting that is just breaking up, to discuss that flash freeze and some other issues. i'll tell you exactly what they said when we come back. you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy.
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good day, everybody. coming up on "power lunch," gm unveils two key new vehicles in its lineup. what does it mean for that automaker, for consumers, and the stock of general motors? where does a ceo turn when she or he needs advice? we will take you inside the secret consulting world of mackenzie, the author of an
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important new book on that company. and what the home buyers really want in a new home. we take you inside pulte's home of the future. meantime, back to scott and the "halftime" team. >> thank you very much. the securities and exchange commission meeting with all of the exchanges today to look into last month's flash freeze where trading on the nasdaq was shut down for more than three hours. our eamon is live there now with the very latest. >> reporter: hi, scott. the meeting just broke up. it lasted about three hours. we saw a small fleet of black town cars and black mercedes pull out, so a lot of the folks have left the bidding already. we don't know exactly what was said in the meeting, but we do know a little bit about what was on the agenda, what they plan to say during the meeting. here's some reporting from our bob pisani going into the meeting. he found that they would discuss adequate backup capabilities for both the nasdaq and the nyse's public feed. it's an important effort to get the two things stitched together. also better protocols for testing and backing up systems
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so they don't have a flash freeze again. also, i'm told that this meeting was scheduled to be a little broader than just the flash freeze itself and focus on things like clearly erroneous trades and whether or not the current rules surrounding those are appropriate or not. so a lot to chew over here, scott, and we're going to have to report on what they actually said to the s.e.c. when some of these guys start talking to us after the meeting. >> hopefully we do hear from some of them. thanks so much. doc, are you expecting anything to come out of here from the s.e.c.? you've been the most vocal critic as it relates to what the exchanges do, these flash freezes and all the other nonsense that's taken place. >> yep. because this followed that goldman sachs oopsie that in my mind was an even bigger deal, judge, because even though it was only 10 or 11 minutes' worth that the goldman orders hit the markets. the markets fell to basically $1 from $8 or $9 in multiple classes. and that's a sign to me that all
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the elbows reacted in an instant to that pressure and basically faded down to where they knew they could buy those at a buck. and that's a real issue because it goes to my point that this is artificial liquidity. these guys aren't committing capital. they're just picking pockets. the s.e.c. should do something about it. next, our friend herb greenberg joins us on set. he's going to reveal why you need to beware of mercato libre when we come back. ♪ ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪
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welcome back. the ebay and amazon of latin america has been flying high this year. soaring more than 60%. but herb greenberg is back in the house here in inglewood cliffs. he's raising some red flags. as only herb can do. >> this is one of those companies that sometimes falls through cracks even though you wouldn't know it from the stock price because it's zoomed 50%. >> why are you looking at it today? >> you've got several things going on. by the way, ebay is the largest investor in this. you have the ceo that's sold 39% of the stock. and this is direct holdings. he sold these shares august 8th. and i actually have a piece about this on right now. the concern here is that he is a good seller. he's someone -- his sales in the past quarter, insider consulting who watches this stuff like a hawk always been just well timed. so now he's out here, and is he top ticking the stock? now, all of this is going on with a backdrop of other things.
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they do business in latin america, venezuela, argentina, brazil. venezue venezuela, we know what's going on in currencies. we know it's going on, inflation going through the roof. you have mark roberts, that's his venerable old wall street independent research firm. he has been raising red flags about this thing for more than a year. he came out in may pointing out there's accounting issues, he believes, with the way they account for their foreign currency translations. well, no one seems to care about this very much, but i will tell you something. he's raised the red flags. he thinks if the company were to be more conservative and reports say the way herbalife reports in venezuela, their sales growth would be, like last quarter, 11%, instead of the reported 26%. so he says this is artificially inflateded and in a big way. the company i want to point out says their statements are prepared in accordance with g
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g.a.p. when he asked him whether their revenues were inflated, he said they do not comment on our financial results. so this clearly some things going on here. then you have competitive issues and other stuff. >> just quickly and then we've got to run. tracking insider sales and making a big deal of it, is it a difficult thing? >> very much so. >> because a lot of them are programmed and whatever. >> these are not tend to be sales. and when somebody watch -- when you watch somebody and they're considered a good insider whose sales tend to have impact after the result -- >> he's a good insider. the stock's trading at an all-time high. how can you say that? >> because each time he sold, it's gone down and then it's recovered. he and his wife were in a trust. they own 3.7 million shares. the two of them, big shareholders. >> quickly. >> right now you have the underlying issues to all of this. >> thanks, as always. we're back with "final trades."
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welcome back. the people have spoken. dr. "j," you want the debate on apple. probably no surprise. >> this is a stock i'm buying. i own it. >> why the dip on lulu? >> resources shot. >> buy bonds, tlt. >> have a great rest of the day. we'll see you tomorrow. "power" begins now. >> "halftime" is over. "power lunch" and the second half of the trading day start right now. >> today on "power lunch," the house of the future. there it is. yes, crayons. lots of crayons, orchids and lime green chairs. the wine is going to be served, ladies. lots of changes and what people want in a house today. we'll show you it in about 45 seconds. well, not so exceptional, u.s., us, excuse me, larry kudlow responds to vladimir putin's scathing opinion of the usa in "the new york times." a plea for caution. and a mas


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