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tv   Fast Money Halftime Report  CNBC  May 16, 2014 12:00pm-1:01pm EDT

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to an end. >> and the credit facility helps, as kayla pointed out yesterday afternoon, shorts getting squeezed there. a lot of people still negative, but they're doing better than people expected, nonetheless. >> get some rest this weekend, because you'll need it for monday and the launch of "squawk alley." as we hit noon time, let's get to "fasttime" at post 9. >> carl, thank you very much. an interesting market to talk about today. you guys have a great weekend. we'll see you on the other side. welcome to the "halftime" show. here's today's playbook as we return from vegas to here at the new york stock exchange. "danger zone." hedge fund heavyweights revealing they're biting nails about this market. should you? still a bull. legendary investor laslo birinyi isn't scared, and he's to tell us why. whale watching. the biggest money managers piling into which stocks. the lineup, stephanie link, mike murphy, jim leventhal, and we couldn't pull him out of vegas, but still made it to the studio, jon najarian. only one of us had to rough it back to new york?
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how'd you get that assignment out there? >> well, judge, somebody has to do the dirty work, and usually that's me. but hats off to you for flying all the way home and doing the show. >> yeah, it's good to be here on another big day in the market to close out the week. are we in the danger zone, or not? that depends on who you ask. david tepper, of course, saying out in las vegas it's time to be nervous. but leon cooperman telling us, he's still positive, albeit with a small "p." he says the s&p could end at 2,000. with all of the major av ramgs in the red for the week, what is an investor to do? stephanie link, we're coming off of vegas, tepper made a lot of headlines out there. lee cooperman on the show, said some interesting things. what should we be thinking about the market? >> there were different levels of bullishness and bearishness at salt, for sure. a lot of attention got to david tepper because he's got such a great track record. he's brilliant. i don't think he was bearish. i think he was just less bug h
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bullish. he's still positive on the market. we've had mixed economic data. earnings are now over. now we have -- be hostage to the headlines of the fed and the ec. we've had cash on hand ahead of earnings, putting it into the weakness. it's been quality names like a 3m or cigna or costco. we have facebook and google, but it's time for more of a balance in the near term. >> jim, is it time to be nervous? >> i don't think so. i think one thing stephanie said -- well, several of them are correct. but the short-term economic data has been lousy this week. retail sales and industrial production. and the problem is, next week there's no economic data, earnings season is over. so the trend is probably just going to continue, which is downward. but we agree with stephanie that there are pockets of value out there. we're not going to catch any falling knives, but old-line tech, basic materials, energy stocks, and retail have a lot of value. >> ten year was a big talk,
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murph, yesterday, out in vegas. at salt. as it dipped below 2.5%, the lowest level in about seven months. it's back above there today. it's a point of concern. and it dominated the conversation throughout much of yesterday. >> i'm sure. and i think if you go back to the beginning of the year, scott, i don't think anyone would have told you that the ten year would be sitting middle of may down under 2.5%. look at where the s&p is. still a few fractions of a percentage point off our all-time highs. so i think the market's trying to look past that. you know, to jim's point, it's probably short-term choppy news, economic news, but if you look to q3 and q4, we're going to be a lot higher from here. >> i mentioned we have laslo birinyi on the show, the legendary trader, back at post 9, the founder of birinyi associates, and an exclusive. welcome back. with everything going on in the market, the tepper comments, the cooperman comments, where we stand in the markets, the ten year, hanging out at 2.5%, how do you feel about stocks today?
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>> i'm still comfortable. our target is still 19 -- to close above 1,900 this quarter and we'll reassess it. and right now, there's an awful lot of noise and you have to segregate the noise from the signal. >> is it noise? you have small-cap stocks rolling over, the s&p breaking its 50-day, the momentum stocks are peeling back. that's more than noise, isn't it? >> the whole issue about small stocks is not conservative. the cannibalization of -- you're talking about a very small fraction. the concerns about things like utilities, it's the fifth time utilities have rallied in the bull market. and every time they just fade away. the idea the utilities are sort of harbinger of the bear market and people moving into utilities is a bad sign, because that's how bull markets end, you know, it's how they should end (unintelligible), and you remember in 2000, everyone was still piling into the big names. so a lot of things people are saying are just plain noise and wrong.
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>> the argument out there is that, you know, at some point, the dow, which was at 16-5, or less than that now, it's got to spread at some point. you cannot have a rollover in high growth and high val. you can't have a rollover in small caps and everything is rosy around the rest of the market spectrum. >> i think it's overemphasized because the idea of technology, the technology bust -- oracle is up 12%, microsoft is up 5%. so it's really a fragmented market, and i think you have to look toward stocks and try to get these themes and overviews. >> so the small caps have really rolled over. do you think that's indicative of the economy slowing down, or is it just they got too overvalued in your opinion? >> again, we did a study coming out, 30-page study on small stocks. basically looked at technicals, looked at fundamentals, looked at it from different angles, and the net conclusion was there are long periods where they outperform and long periods where they underperform. we couldn't find any sort of
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trigger or trading rule. again, i don't think they're big -- in the scheme of things, it's not really a rounding error. you know, you look at something like the -- the twitter and all those stocks, you take facebook out of that group, the cannibalization of the social media is $55 billion, schlumberger is $120 billion. >> let me stop you, we'll continue the conversation in a second. i want to call your attention to what you're looking at on the screen. pfizer shares have been halted for news pending. i wonder if this has anything to do with astrazeneca. >> what could it be? >> wouldn't be surprised if there was something to develop on that front, on the other side of the halt. we'll have to wait and see. we'll keep an eye on the chart as it sits at 29.12 for pfe. we'll bring you the news as soon as we know it. i didn't mean to interrupt you, laslo, you can continue the point. >> so to focus on social media,
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really not a big thing in an overall market. >> laszlo, you're a stock picker, we love picking stocks, and one your holdings is trinity industries, railcars are a big part of it. if we were two months ago, i would say oh, my goodness, i have a kindred soul because we own green brier, another railcar manufacturer, and it shot the lights out, greenbrier, and it got into silly territory. i'm curious to hear trinity industries and the railcars in general, if you see more legs there or have we gotten, you know, all the umpf from crude oil that we're going to get? >> no, stay with winners in this market. it's one of the things we're doing, not trying to be too cute, because again, if you look through all the short-term noise about nasdaq and the russell and trading through the 50-day average, you know, one of the things we do, a little unique, is i go through newspapers every day, magazines, and i clip and save the major stories.
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we have sort of this database that goes back to 1962. and if you go throughout this bull market, it's the same themes. i was reading the first quarter of 2011 recently, how long can this go on? it could be a bubble. it can't be a real market because the public's here. all of the things coming over and over again, and we forget. >> we've talked about the negatives, potential negatives,negatives, and i agree, you look past those, but what are the positives to get us up over 2,000? >> we're supposed to be down earnings this quarter, and i still think you have the potential of the individual coming in in a big way. and i think that the whole idea of people moving back into stocks when they get over some of the other areas, i think still exists. but it's still a bull market, and we have not gotten to the point -- silly point that the bull markets tend to have, where you have the magazine covers and so on and so forth.
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>> you want to talk about some stock picks here. it's interesting, the names you have, because we've been discussing over the last, you know, several weeks what's been going on in the housing market, whether there's an issue in housing, which has slowed and how those developments are going to affect many of the stocks that play in that universe. whirlpool is one of your trading ideas. now, you're going to make a distinction between trading and investing. >> yes. >> give us why whirlpool for you is a trading pick today. >> the stock -- we've been trading the stock very successfully for the last year or so. it trades within a range, if you have the chart-reading thing, and we don't try to predict how high or how low, and as far as the housing stocks, one then i would say about housing, if you are scared about housing, look at nvr, right? it's up 35% since last year's tapering. it's $1,000 stock, so you don't have the high-frequency things, and for anybody who thinks that housing is going down, short --
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you'll learn quickly that housing is in good shape. >> let's talk investing. restoration hardware. why do you like the name? >> i don't tend to like retailers, but they have an interesting space, sort of beyond the traditional department store kind of furniture and the stock's earnings have been strong, and i see a lot of traffic going there, and it's not a name we've held. and we've done -- we're very happy with it. >> let me ask you one more question before we run, and we do have to run, but the risks to the bull case -- and i think it plays exactly into the kind of thing that david tepper was talking about out in salt -- is that the economy needs to perform, and it has not performed to anybody's expectations. first quarter gdp was a terrible number. that's disappointed and surprised some people. i think mr. tepper would admit that. the ecb has to act to the level people have expectations that it will come june. if those things don't happen, if the economy doesn't pick up, if
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the ecb and draghi don't act in june, bull case is somewhat harder to make. >> haven't they been saying that for four years? haven't they been worrying about the economy for the last four years? haven't we missed a lot of the numbers? it's the first time in my long experience i've seen economists tweak gdp. for years, they would put out forecasts, and that would be the forecast. now, retail sales number comes in, whoops, make it from 1.8 to 1.7, or 1.9. and so, again, as i look at t the -- >> well, the fed backstop behind all of that, too, you have to factor that in. >> look at the history of this market, and you see the same, recurring concerns, and i see the markets sort of dismissing them one by one. >> good to see you, as always. thank you for coming on. laslo birinyi. coming up on the half, we're watching whale watching. two surprising stocks getting love from investors, but are they right for you? then, it would take you more than 14 hours to fly from the united states to india, but the
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election results there today could have a more immediate impact on your portfolio. we'll tell you how. and we're also going to bring you the pfizer news that has that stock halted, as soon as it comes out. that and much more straight ahead from the "the half" live from post 9 at the nyse. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance
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revealing what they're buying and selling today. dominic chu is whale watching at hq with the latest on 13-fs. dom? >> this is one of funnest -- the most fun i get to have four times a year, what the big names are buying and selling. let's start off with a stock in the headlines for all the wrong reasons, today included, that's general motors. gm's been facing a lot of backlash about their ignition switch issues and now paying $35 million fine related to delays for recalling the vehicles. according to the latest round of investment manager disclosures, the 13-fs, a slew of money managers have trimmed or completely gotten out of their stakes in general motors. george soros and warren buffett have trimmed their stakes in the automaker. meanwhile, leon cooperman, david einhorn have completely divested of that particular name. this is all at the end of last quarter. now, meanwhile, appaloosa's david tepper is actually adding to that gm position. then, there's a name that's really getting at least a lot of
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whales are getting into this one. we'll put it that way. that's telecom giant verizon. if you look at warren buffett, take a look there. berkshire hathaway has taken a new 11 million share position. john paulson, also an 8.7 million share position in this stock, and then dan loeb at thirdpoint, put on a 3.5 million share position, all in verizon. on the other side, yes, david tepper's there, as well. he got rid of about 400,000 shares of verizon. so obviously, trades happen, everybody's got a different view. but for right now, scott, it looks like verizon and gm have a good amount of traffic going at least one way, for verizon a buy, and for gm it looks like a sell. back over to you. >> okay, dom, thank you so much. let's bring in ken square, the founder of the 13d activist fund, a fund that returned 36% last year, by focusing on activist investor moves. so, ken, explain to people, the difference obviously between the 13-f and d. you track the ds more than the fs. >> yeah, we track pretty much the ds.
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the fs are 45-days delayed. ds, on the other hand, when an activist goes above 5%, they have to file a d within ten calendar days, and if they move within 1%, they have to file an amendment. so it's reliable information. >> the problem is, it's in vogue for all of the guys on the ds to go to 4.99%, on a holding so they don't have to file -- so you don't truly know what's going on. >> some of them do that. i haven't seen -- the real activists have not been doing that. they've been pretty steady. they generally want more than 5%. they're generally 7%, 8% at least. >> so how should the individual investor be looking at all of this? >> well, you know, the ds, as we -- the activist fund, we look at who the activist is and what their catalyst is and what their strategy is in a position. and we'll put together a portfolio of what we think are the best activists. >> how do you funnel those activists? the -- there's so many of them, that file, so many things they
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do. how do you screen it? >> there seems to be a lot more today than there were five years ago, that's for sure. and we have been doing this for eight years. we had a research business on activism for the institution of unity. we know the activists well. we know the new ones, old ones, and know generally which ones are the ones with conviction and which ones might just be for the short term. >> there's -- excuse me one second. news today, obviously, darden with the sale of red lobster where, you know, the activists, starboard, has been in there for a while arguing that that was the wrong move. and i can certainly tell you from my understanding of their thinking that they're not happy with what we got today from darden. >> yeah. of course, what we saw there, what i call a stunning act of poor corporate governance. 57% of the shareholders had asked for a special meeting to vote on any type of sale or spinoff of red lobster. that should be a signal for the management to slow down and instead they sped up, kind of showing very little respect for
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their shareholders. the interesting thing was they were delaying the special meeting when it had relevance. now that it's pretty much moot, they're saying, okay, we'll go ahead with the special meeting as soon as possible. which is a little -- a little disrespectful, if you ask me. >> ken, recently warren buffett was out kind of knocking or taking a shot at activists, and anthony scaramouche took the other side of that, saying he believes activism is just in the early innings and it will continue to expand. do you see it that way, you see more activism? >> absolutely. it's covered by media a lot, so people think it's everywhere. but really, we covered 78 companies last year in our research business that had activist 13-ds, a lot of those applicable, working with management. the percentage of companies being targeted now is much lower than 2%. and clearly, there's a lot more companies out there. and i think even warren buffett said this, that have management that might need an activist or have, you know, capital allocation issues and an activist or hedge fund can help.
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so i think we're just at the beginning, as well. >> ken, i'm sorry, we have to run. we have more breaking news. thank you very much for being here. >> thank you for having me. >> meg has the news on pfizer, which is back open for trading. meg? >> ye, that's right. pfizer saying just now that it plans to file for approval of its breast cancer drug palbociclib. we just saw research for that at a meeting and some analysts were skeptical based on the data. but they said they would i a ply in the third quarter based on the face two study, and that may be earlier. this could be a multibillion-dollar drug for pfizer including to a survey of investors. so some big news for pfizer's breast cancer portfolio there. >> meg, thank you so much. we were seeing shares react, jim. >> well, scott, we own the stock. we know about palbociclib. and if you go back a year ago, nobody knew the name or what it did.
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obviously, breast cancer is a big market. this thing came out of nowhere. so all the people who say, hey, these r&d facilities don't generate anything, this is a great sign. and more to the point, they're filing on phase two data, so they've got something that they really think works here as opposed to waiting for phase three. they think the fda is going to approve this. that's great news. >> coming off what had been a difficult quarter, which the ceo and others had talked about. but this is a nice move for shares in pfizer. >> it's important. >> let's do the "trader blitz" four trades on four stocks. first up ebay. it is on the move, murph. why? >> the stock was down earlier, and it started to rally this morning and now moving up 2%. there's talk out there that someone is looking to make an offer for the company. not substantiated in any way, but rumors are out there, and that's what got the stock moving. >> how about nordstroms soaring after beating estimates? boost from online sales? jim? >> this is a great story. note that walmart had punk earnings, okay, and that's because people have started to migrate up the food chain, talking about consumers, into
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target and kohl's. what we think will happen next, and we're seeing it in nordstrom's, they're moving from target and kohl's into nordstrom's. so we like it a lot. it's not too expensive. i don't think i'd buy it today, but if it pulls back a few percentage points, we're in. >> jcpenney, stephanie, positive comps for the first time in seemingly, like, forever. >> it's amazing. they've gone back to their roots. they went back to selling home goods which is what people wanted. everyday low pricing strategy, which is what people wanted. it resulted in better comps, better gross margins and easy comparisons even into next quarter. second half of the year, not so much in. you can probably own this stock into next quarter. >> balance sheet in better shape? >> a bit better. and i think there's just more confidence overall. now, the one thing -- the one interesting thing to me is macy's did not have a great quarter, and i wonder if jcpenney is starting to take a little share, what it does to that stock, and also what does it do to tjx and ross stores, because those companies have been the beneficiary of jcpenney
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having struggles. if they're back and stronger than ever, that's something to watch. >> murph, you want to make a comment? >> well, i think jcpenney more has to do, to me anyway, less about the quarter and more that it looks like the company is not going out of business, and it's something we were talking about a lot. this quarter tells you it's not on its way to zero. i'm with steph. >> despite announcing a new deal with our parent company nbc-universal, wwe are down more than 40%. wow. jon? >> yeah. body slam here, judge. trading about 15 times normal volume, too, judge. it's just slammed to the downside. you're changing the pay per view model, going over with this nbc-universal model. i don't know if this is the right move for wwe. >> all right. coming up on "the half," we are taking it to the floor to find out what moves the traders here at the new york stock exchange, before the weekend. and plus, a social debate on twitter. much more is straight ahead from post 9.
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welcome back to post 9. a few hours left now to trade in what's been a tough week for the markets. joe greco, tell me how folks on the floor are taking what happened this week, and also put into perspective the comments from david tepper some 3,000 miles away. >> yeah, quite a bit of volatility. and thanks for making it back in for the show today. it's pretty crazy. first, mr. tepper obviously enormously successful and white hot. so when he starts dinging the bell a little bit, that the exit door is open and people should be making their way potentially towards it, or preparing to get out, that's, you know, a bit alarming. in the end, it seems difficult for me, if you're sitting at a desk somewhere isolated and you don't have other people around you -- because this market is
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moving solely, it seems, on chatter, on volatility off of earnings. obviously, the last few days, we've had significant moves. last night, guys on the floor trading until 6:00, jcpenney. you were just talking about it. and wwe, a huge run-up. and then the body slam as you were talking about. i guess here we are today. >> i'm just looking over my shoulder to see why everybody is clapping, but i'm not exactly sure. you know, you have laslo birinyi, joe, saying it's noise. you have tepper talking about nervousness. >> right. >> what do you think prevails on the floor? >> well, definitely noise on the floor, as was just exhibited. in the end, it's not all about noise, because there's real risk out there. taper keeps continuing. we keep getting tighter. [ cheers ] markets off the highs, but we really need to consider where we're going. going into summer, you have expiration today. next week, fed minutes, wednesday afternoon, a slew of data on thursday, a lot of support for the market and where
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we are. gotta keep it moving along, you know, trade. it's a trader's market right now. long-term, you could look at the housing data. look, that's months and quarters out. new housing starts is not really relevant just today. even india, the elections over in india. knee-jerk reaction to some companies with exposure there. in the end, is that stuff going to happen in the near term? no, this is still a sensitive market. you have to find those names. you were talking in the last block about 13f filings and the activists out there. that's a huge theme. you know, focus on names, focus on, you know, real good opportunities, coiled springs, earnings comes out, and be involved. >> joe, have a good weekend. >> thanks, you, too. >> joe was talking about the election over in india, finally has a winner. narendra modi is set to become the next prime minister. seema mody is here to show you the impacts on your portfolio. >> experts say if india can become the economic powerhouse that modi is promising, consumer-driven companies that are targeting india's rise in
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middle class -- like pepsi, yum brands, and starbucks -- all the stocks stand to benefit. modi's message, which focusing on attracting investment and the expediting infrastructure projects would also be profitable for american tower incumbents, both of which have exposure to india. under modi's rule, the hope is the agriculture industry will put together a new farm subsidy that would make fertilizer cheaper for farmers, and they say mosaic stands to benefit from this. lastly, retail. modi in the past has been vocal about not letting multibrand retailers in india, because it might take away business from the local players. but recent interviews with him suggests he's been warming up to the idea. walmart and ikea are two companies trying to expand their retail footprint into the country. scott? >> okay, seema, thank you very much. steph, last week, in fact, you talked about india in a trade in the epi? >> yeah, the epi. the market's had a nice run,
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certainly, up 10% year to date. i still think there's more to go here. he hasn't even begun. he's very pro-business. he's very pro-investment. he's very small government. so that combination, bringing it to a population of this size, has enormous potential. so i would just focus on the ep imt, the etfs, certainly cummins and yum brands will benefit, but i think you'll do better off with the etf. >> there's the epi, up nearly 6% on this news. here's something interesting. on a dramatic and overall negative week for stocks, the vix is actually lower as well. for more, we go to jackie at the nymx. >> good afternoon, scott. typically, we call the vix the fear gauge of the market. what's interesting is the vix is sitting below 13 right now. that's lower than its sort of long-term average, and it's also the close to the low for the year. so the question now is, scott nations, are you surprised by what we're seeing in the vix? and what is it telling us about the market? >> i'm not really that surprised. let's take a step back. the vix measures how volatile we
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expect the s&p to be over the next 30 days -- that is, how much we expect it to bounce around. yesterday, notwithstanding, recently the s&p hasn't bounced around that much. so, yes, the vix is at 13. historically that's low. but right now, 13 in the vix, that's value. >> so an thonthony, would you u buyers to -- >> as scott brought up, we were down 186 points or 160 points in equities, the vix was up 8%, so there's a correlation there. if you're an investor and you feel there's more room to the downside, certainly this is one way to hedge the portfolio. >> all right. for more on the futures markets, head to the website, futuresnow.cnbc.com, where you'll also see clips of our interview yesterday with ralph, who had a dramatic call on the market to the downside. very interesting. scott? >> thank you very much. dr. j, what do you make of the vix? >> well, as it got down to these new lows again, scott, it, of
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course, broke 12 this week before trading up, as scott said. now, with the vix, you know, basically mid-12s to 13, it's still very reasonable to buy protection here. so we saw a lot of people doing exactly that. not in the short-term options, but out in june. in other words, they want about 30 days worth of protection, scott. they put that trade on today. >> jim? >> jon, i want to talk to you about the vix. i think we've had this discussion before. the problem i've always had with it is the timing. you know, if you're going to buy the vix, you have to get the timing right. if you look at a straight vix futures vehicle like the vixi, go back two years ago, it's lost 80% of its value. >> yeah. >> first off, do you agree it has to be timed right? and is this the right time, in your mind? >> i think it is, and the reason is, of course, that it is so cheap. so you can put on a spread for, you know, pennies really, and the vix makes a move, of course, on a big 200-point drop like we saw this week, even though we
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pared back and makes a surge back, so i think you can take that money to make double or triple. that's a fantastic trade if you have a spread. you're just buying them outright, i agree with your assessment that that's one where you really have to time it exactly right if you're buying the vix calls outright. >> hey, doc, isn't it when big institutions will come into the vix when it gets down near these historic lows, just simply because they need to protect themselves? that's one of the functions why it bounces off the low levels, because big money does come in to buy protection when it's cheap? >> yeah. and they're doing exactly that and a lot of them are writing over-the-counter options, as well, on the s&p and/or the vix. so you're exactly right, murph. a lot of what we see in the vix market is reflective of what probably happened over the counter between trading desks upstairs. >> all right. coming up, canary in the coal mine, one bellwether is showing signs of weakness, but
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mike santoli says nobody is paying attention. we have the list of stocks you need to put on your radar just ahead.
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the sell-off in big-bank stocks is leaving even the smartest investor split on how to trade them. here's what omega's leon cooperman told us out at salt yesterday. >> -- a combination of things that are working now and things that are likely to be working. and so, i think things that are depressed, like a citi corp., below tangible book value, ultimately will work. >> so meanwhile, new filings just released yesterday show another prominent hedge fund manager, george soros, sold out of his bank position entirely last quarter. joining us now to make sense of what's going on in this bellwether sector is mike santoli, senior columnist at yahoo! finance. welcome back. >> thanks a lot. >> why are the banks struggling?
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>> you can come down a list of reasons. people are using these excuses to explain why it's not a big problem for the market. obviously, flattening yield curve, number one. that was a big bull -- bull story last year, the widening of the curve. also a regulatory squeeze. part of the story was increased buybacks, going to share capital with investors. that's been forestalled, at least, if not taken off the table for a little while. and i do think that housing sluggishness, probably another thing contributing to that sentiment. to me, what's most interesting about it is it's a conspicuous underperformer that hasn't gotten as much attention as the small caps and high-tech growth. >> we've mentioned on this desk, though, jim, how it's hard to get a lot going in the market if the banks don't start performing. >> well, that's absolutely true, scott. and, you know, one thing i'd like to ask mike is everything you said is true, particularly the flattening yield curve. you know, housing might come back. one thing you didn't mention,
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though, is capital markets. we know that the first quarter was really punkish in terms of capital markets. >> exactly. >> but with that flattening yield curve, you would expect, at least on the debt side, there to be more fixed income. now the counter to this is corporations have enough cash. >> right. >> but municipalities and the public sector can issue a lot of debt. >> i do think new-issue volume makes sense to come back. you're still operating at relatively high levels coming into this year in terms of issuance. what's conspicuous to me is goldman with the merger boom, showing up in the headlines, is also down big. so i do think you would have expected them to trade better, not so much because of capital markets volumes, but because the credit markets remain so firm and strong. usually, that's going to be a tailwind. >> hold your thought real quick, mike. we have breaking news regarding former s.a.c. portfolio manager, scott cohn has the very latest at headquarters. >> michael steinberg just sentenced to three and a half years in prison for his role in the insider trading, remember
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convicted in december on five criminal counts. this is considerably less sentence than the government wanted. the government wanted six and a half years. steinberg's attorneys had argued for two years, but they're almost certain to appeal, and possibly join the appeal of former -- of fellow convicted inside traders todd newman and anthony chiason, who said the government should have known the tipsters were benefitting from the inside information. the government says that's nonsense. but that is likely to be the subject of a lengthy appeal here. but again, michael steinberg, the eighth s.a.c. capital official to be convicted in this case, only the second to go to trial, sentenced to three and a half years in prison. the other to go to trial, matthew martoma, is to be sentenced next month. >> all right, thank you very much. we were talking about banking with mike santoli, murph. >> i agree with you, mike, but from a trading standpoint, like a bank of america down 20% off recent highs, jpmorgan, roughly
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15%. i think at some point, the things, as leon cooperman said, look past the near term, and i'm looking -- i see bank of america down printing 1..3.90, i'm buyig it. the s&p is hitting new highs without the banks. >> that is the -- that's the glass half full, right? you would expect the market to have had more damage, and maybe we got so lucky here with this immaculate rotation, as i call it, that all of the stuff you would like to see perform hasn't performed, and yet the overall market has held up. and soros and cooperman can both be right. cooperman, a value investor, say they do actually represent value here. i'm more pointing out as a -- as a contemporary market signal, it hasn't been given a lot of weight. >> mike, we'll see you soon. >> all right. coming up, looking to spend dough on a summer home? we've called in super broker dolly lens for a look at where you can get the biggest bang for your buck. that's next. i know what you're thinking...
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man, that light is bright. all right. coming up on "power lunch" at the top of the hour, folks, we hope you'll join us. the dow, the s&p 500, the 10-year yield, small-cap stocks, all of them hitting troubling levels. are we entering what some are calling a technical tsunami? the smartest investors on wall street will tell us what they're buying and selling right now. and we noticed they're hunting for yield. we've got four dynamite dividend stocks for you. and gm hit with a big fine over its handling of the ignition
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recall fiasco. we'll take you inside the crisis. you'll hear from one gm owner whose car was defective. she explains what it was like to experience that shutdown. now back to scott on the "fast money halftime report." >> all right, thank you very much. cnbc's million-dollar home competition is back. seven homes are going head to head to see which one is the best bang for your buck. and since we're weeks away from summer, all are located in hot spots. in each show, two $1 million homes face off. the winner moves on. the loser goes home. eliminated. well, the winner will be announced in today's "closing bell," and touring the next homes, seema mody and diana olick. this traditional-style home sits on a secluded 1.5-acre lot. the wraparound porch overlooks the massive yard making it an
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ideal spot to watch the sun rice and set. the home features a bright eat-in kitchen, a living room, den, vaulted ceilings and wide-open floor plan that leads to the backyard. this five-bedroom, four and a half bath home features a huge ground floor master suite, and movie lovers take note, the finished basement has a home theater where you kick back and relax after a day at the beach. start your day off with a dip in the heated pool. make early tee time at the golf course. and then head to happy hour at a local winery. and end the day with your feet in the sand, just steps from your front door. all of the summer fun for $1,050,000. this three-story classic beach-style home sits on about half an acre with multiple decks in the front and back, and while this area used to be a favorite of pirates, the real bounty is the ocean view.
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inside, the home boasts 3,400 square feet of living space, including this third-floor great room. it has multiple seating areas, both inside and out, perfect for that after-beach party. with six bedrooms and seven and a half baths, this home has plenty of room to bunk all of your beach guests. and after a long day out in the sun, you'll want to take a soak in this master suite spa. this home offers every amenity for the active lifestyle. the pool, the hot tub, the horseshoe pit, and beach volleyball right in the backyard. all for the asking price of $1,049,000. >> all right. so we found out in "squawk box" this morning that seema's home in the north fork of long island. but where is diana olick? joining us now is real estate super broker dolly lens. hey, dolly. >> i know you don't want to venture a guest today, but it's in outer banks north carolina. it's a terrific spot on the water, just a beautiful area for
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vacation homes. and i'll tell you, you could see from diana's piece, great for all kinds of sports. i mean, she's a sporty girl, and they're doing the sports there. a really fabulous place. both houses are amazing. they both have a lot to offer. from the north fork to north carolina, i think the big difference is that north carolina is a more unique residence. it has more bedrooms. it has more to offer in general. it's just a terrific house. and the rental on that house is up to $100,000-plus. so you can really own that house and make money on it, if you want to rent it out a bit and use it yourself a bit. to me, i think that house says it all, is the clear winner in this show. >> yeah, i was going to ask you, dolly, who wins. it's clear from the way you described north carolina that that's the one you'd choose, both at $1,050,000. >> yeah, with that rental, with low taxes, it's becoming a year-round community there.
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it just has everything. there's more bang for the buck there than the other house. and it's all around a terrific place to live and raise a family if you want. >> all right, dolly, thank you very much. >> thank you. >> the million-dollar seaside sanctuary wins round three and will move on. let you know if youagree. tweet us #milliondollarhome. later the champion will be crowned during the "closing bell." up next, from j.c. penney, to nordstrom, retailers are handing in solid numbers. we'll have a breakdown. there's the wall. we're going to talk about some of them, when we come back. (mother vo) when i was pregnant ...i got lots of advice, but i needed information i could trust. unitedhealthcare's innovative, simple program
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what if it's too soon?. it's not too soon. look at the tub. yeah, we're gonna buy a house based on a tub? you had crazy eyes when we saw the garage. trulia says the mortgage is the same as our rent and it's in a great school district. ya know, cause we're going to start making babies. let's do it. what? yeah. now? yeah. barb's right there. not that part. oh. yeah. that moment you decide to buy. that's your moment of trulia. you could win 50 thousand dollars for your next home. visit trulia.com slash win today. what is this place? where are we? this is where we bring together reliably fast internet and the best in entertainment. we call it the x1 entertainment operating system. it looks like the future! we must have encountered a temporal vortex. further analytics are necessary. beam us up. ♪ that's my phone. hey.
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[ female announcer ] the x1 entertainment operating system. only from xfinity. tv and internet together like never before. let's send it over to dominic chu. >> hey, scott. are going to report, and of course retail will be a huge theme, but not all of these companies are s&p 500, but still interesting stories. on monday, campbell soup, then ryanair, urban outfitters, that will be key for that special apparel market. home depot, that is going to be a good sign for the overall economy, depends on how that works out. on wednesday, lowe's follows up with them, but then it's also about target.
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then sears and best buy. and a friday, footlocker on. consumer discretionary site. 23 companies in the s&p, a lot to watch. >> who will we be watching out for next week? >> home depot, lowe's, and williams sonoma, you can't get a triple up side, or a mixed bag, and obviously some of the bears are hoping for a down side. they've been rallies here. still ahead on the half. this baby eats the slop, born in the slop. his mother was a mudder. >> his father was a mud are? >> his mother was a mudder. >> what did i just say?
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>> might have to be a mudder because of all the rain on the east coast. northeast up in baltimore will get drenched today. remember that famous like? who should you bet on? >> we'll check in live with randy moss after the break. ses . and i get a lot in return with ink plus from chase like 60,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards even cash back. and my rewards points won't expire. so you can make owning business even more rewarding. ink from chase. so you can.
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what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. welcome back. the preakness stakes kicks off tomorrow. race day coverage beginning at 1:00 p.m. eastern on nbcsn. randy moss is coming to us live. it's nice to see you. >> nice to see you. it's beautiful out here now. it's been raining all morning long, but it's clearing up a bit. >> is there supposed to be more rain? and how will it affect the race? >> it's supposed to stop this afternoon, supposed to be a beautiful day tomorrow, upper 60s low 70s. they dirt tracks that horses race on dry very quickly. we'll be on the air this
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afternoon at 4:00 eastern for the black-eyed susan. people to see that race will not even recognize the track when they tune in tomorrow. it will be great. >> california chrome have what it takes? >> he's the horse to beat. he's definitely the horse to beat. he's proven he's best, not just in the kentucky derby, but in the races before that. i unfortunately didn't pick him in kentucky. now i'm wondering if it's that stock you should have bought and you didn't. but he definitely is the horse that will have the tars on hi back. he is the one to beat. so i'm going to jump on the bandwagon, but he's not unbeatable. read, we've had some breaking news, so we've got to run. enjoy the race. we'll be watching. randy moss from down at piply ko. > . final trades. >> i'm going california chrome. i think first triple crown is in its sights. >> dr. j?
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>> i'm going with california chrome. i bought a ticket for the triple crown win here, judge. >> and stef any? >> social inclusion. looking for the upset. jim already gave under the circumstances a pick for his final trade. murph? >> wendy's, buy it. >> internape paper buy it. >> esrx, i bought it. >> doc, safe travels back from chicago. >> thank you, sir. halftime is over, "power lunch" and the second half of the trading day start right now. >> i am going with wapner by half a length in the preakness. that's my bet. ten-year bond year old. below 2.5%, the dow suffering the worst day in five weeks, s&p 500 breaking below the 50-day moving arches. >> all of these things, are we entering what some are calling a technical tsunami? the smartest investors on the planet revealing their list of stocks that they are buy

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