tv Fast Money Halftime Report CNBC November 3, 2014 12:00pm-1:01pm EST
there. we'll have our attention divided, we'll be communally distracted, smartphones, tablets, head phones, chat rooms as long as there's sort of somewhere else. >> sounds like a dream. >> we're going to have to have you back at the end of the semester to hear how the experiment went. >> i'd love to come. >> that does it for "squawk alley." let's get back to headquarters and scott wapner. welcome to the halftime show. our starting lineup, pete is co-founder of option munster, steven is managing partner of short hills capital, joe is senior managing director at vertis, and mike is the ceo of rose cliff capital. we begin today with a new month for the markets and one that historically has been good for investors and a big week we have on our hands as well. the elections thursday ecb's meeting, friday's jobs report and more earnings to get
through. stocks ended october on a high note. mixed today. pete, can the run continue between now and the end of the year? two months, a lot on the plate. positive or negative? >> well, i think when you look at earnings season and now we're 75% through the s&p 500, and we've got mostly positive there when you look at most of the beats, i think some of the numbers absolutely impress people. when the focus goes back on the actual numbers, it seems like the markets go higher. when we start getting distracted by other things, not that they aren't deserving of being distractions, but certainly when we had some of that push to the downside, we had the chip news and suddenly all the different global news pushing things around, obviously ebola, but when you look at the numbers they've been strong. look at the volatility, the volatility, i mean it's so interesting to me. this got all the way up towards 32. here we are back down underneath the 50 day moving average, bouncing on 2900-day -- 200-day moving average. protection cheap, the market can go higher. >> the nerve of those investors letting things like ebola, china falling off a cliff, europe
collapsing, distract them. >> right. >> that's terrible. >> yeah. >> but here's -- >> the market at 2020. >> yeah. but the truth of the matter is it did matter. the market sells off on that news when it hits and recovers and folks this is where it should on the u.s. the u.s. is the strongest market because the strongest economy. so i think that you've got to pay attention to that. >> the others -- >> they are distractions it turns out. >> wow. >> but they will impact when they hit, when we feel it, we're not going to feel it for a while though. i still think you want to be long in the u.s. market, keep little cash for events that happened like we saw mid-month because they will happen again, and you can buy them cheaper. >> one of your concerns maybe we pulled forward some of the end of-year gains because of the run we've had in two and a half weeks. >> you have to ask yourself if the santa claus rally came in the form of a halloween treat. october 15th, where we were down 400, i said i was amazed, i would be amazed if the s&p ended up reaching the high and it did.
i said last week i'm not sure where the next 50 s&p handles are going to be. they're obviously higher. i think ultimately it just all comes back to central bank policy. and what was done by the japanese policymakers was unprecedented, it caught everyone short, everyone short last week, and i think you also have to factor in that oil continues to hover around $80. everyone looks at oil around $80, and say the s&p is not going to go up with oil trading around $80 and it's got everyone massively fooled and i think that's where right now, the mentality, the investment mentality and traders and hedge funds space you talk to right now, is complete confusion, but central banks will continue to thrust the market higher. >> you don't buy this argument that maybe some of the gains were pulled forward? the velty and strength of the move has caught everyone by surprise? >> a lot of people, yes, but if you look at the velocity and strength of the move on the way up -- >> saying a lot of people but not me? there was a little -- was that
in the tone of what you said? >> no. i mean i think we did a good job here on the show, a lot of us on the desk, talking about the sell-off that we had. >> right. >> and trying to keep your cool, understanding why it was there, and looking for a rebound. so the spike up on the right-hand side of the v, matches the spike down on the left-hand side. so we're just back to where we were a month ago on the s&p, right? so i don't think we're really pulling anything forward. i think that we had a liquidity crisis in names that spooked the market and add in china, ebola, all the things out there, so now we're back to where we are 2020 roughly and look at the earnings we got. you look last i checked over 7 2% companies of the s&p had beat. it's a quarter that deserves to get this kind of spike in the market and i think still believe the market has upside. >> so i guess when i say pulling forward the gains from the end of the year, just again, use me as the example, i said i never thought that s&p would go to 2020, i didn't know where the next 50 s&p handles are.
oil still at $80. i'm confused because all the parameters surrounding why the market shouldn't go up, the market is going up. i'm the classic example of now throwing the towel, sure, i'll follow along central bank policy, get long the s&p and maybe i'm wrong again. >> and the performance chase is going to be a considerable story as well, steve, right? >> but sort of too late to chase it. if you've been -- if you're a hedge fund running with a low exposure all year the last thing you do is throw the towel in now and say i've been wrong ten months. they're sort of stuck where they are. having said that there are some names that will start to position for next year and talk about next year's book. so look, if i were buying in the market and what i've nibbled at, health care, macy's, i've gone short the dollar, finally came in, but two years ago i thought it would be -- >> our next guest earned the nickname of the oracle of tampa for his stellar performance managing that city's fire and police pension fund and despite being a small shop his returns
have put him in the top 1% of all pension fund managers. jay joins us from atlanta. welcome back. >> good to be here. >> good to have you. how are you feeling about the market right now? >> i agree with the package's comments regarding monetary policy and central bank activity. we're top down. i think this is a monetary story both domestically and internationally. every major central bank around the world fighting the same battle, they're trying to vank wish the lingering inflationary -- excuse me deflationary demons doing it with liquidity. and the market likes that. i think the market action on friday was about the boj. the equivalent of a bazooka in the terms of the increase in their annual monetary base target. you've got the ecb on deck. possibly thursday. and so global monetary accommodation, i think is certainly a positive for the market. in terms of some of the themes
that we're looking at, i think this increase in the foreign exchange value of the dollar is significant and has real investment implications. our view this is a secular view, secular bull market and the dollar reminds me about -- a little bit similar to the early '80s in terms of i think the first leg of the move will be for monetary reasons that's occurring now. the second leg probably three to five years out will be more for fiscal and regulatory policy reasons and, of course, back then, it culminated in the plaza in '85. dollar/yen was 250 and the dollar appreciated about 50% against the yen and a variety of european currencies. so i think this has real investment implications and we're starting to structure our portfolios accordingly. >> let's go there. you call somebody the oracle you want to get stock picks from them as well. given that, given what you just said what do you like right here and right now? >> in terms of the appreciating dollar, of course, part of this is declining energy prices and i
think it's somewhat underreported. the markets has basically been able to accomplish what the policymakers couldn't or would not do and that is a multibillion dollar tax cut for consumers and individuals. if we hang around here at 80, $85 a barrel, we're talking about in excess of $100 billion to the consumer. and it's meaningful for business in terms of lowering their input costs and so we're looking at a company, for instance, a good example in the materials area would be international paper. i think they're going to benefit from lower raw materials costs, lower transportation costs, they also have tremendous free cash flow and the company has been very focused on returning capital to the -- to their shareholders in terms of stock buybacks and dividend increases a few months ago they implemented a $1.5 billion stock buyback plan which they're finishing ahead of schedule, also recently increased their dividend 14%, and even after the run up in the stock, over the
last couple weeks, it still yields 3%. that would be a good example of a company number one is focused on north america, about 75% of revenues, number 2, will benefit from the stronger dollar and lower energy prices. >> talk to me about novartis, that's on your list as well. >> yeah. i think it makes sense in here to looks at european consumer oriented companies that have strong north american revenues and earnings. and you got companies -- and also that aren't too tied to european and industrial production which i think will continue to stag senate. if you can look at the consumer companies like as nestle or novartis that also have good fund mentals and attractive dividends they will get a kick, a tail wind when they convert their earnings back into either euros or swiss franks. those are two examples. it's interesting that sector, the consumer staples sector in europe, to look at some companies ha have strong north american revenues. that's not the only reason to
buy them, but they certainly will have a tail wind. >> briefly, jay, before i let you run, can you talk about leggette and plat, leg. >> that would be more of a mid-cap name. it's a superbly managed company based in st. louis and they manufacture a variety of engineered products for the consumer and residential areas. again, another example, they're about 80% focused on the domestic market so they're not tied to european or industrial production or emerging markets. they're going to benefit from lower raw material costs, particularly petroleum and scrap metal that goes into a lot of their products so i think the potential is there for margin expansi expansion. also the other potential catalyst there, i think they're going to be selling off some of their lower margin business in 2015, the fixtures business, and redeploying that cash into higher margin businesses. and importantly the dividend is even after the run up on strong earnings last week the stock still yields about 3.2% so very
shareholder friendly in that regard. >> i appreciate your time as always. look forward to seeing you again soon. >> thank you. appreciate it. >> jay bowen for us from atlanta. the balance of power is on the line tomorrow as the nation heads to the poll. what does it mean for your money? cnbc's eamon javers is in d.c. with the latest and going to be a big day and has broad market implications. >> broad market implications. final two years of president obama's second term here. all eyes now on the united states' senate controlled by the democrats and republicans. tomorrow we'll have a real chance to pick it up. take a look at the current balance of power in the united states senate. see the republicans only need small handful of seats here to take control from the democrats and if they're going to do that it's going to have to be on the backs of weak candidates, candidates that seem to be on the verge of losing to the republican challengers starting with the state of alaska, mark begitch against dan sullivan the
republican. we have an average here of about 2.4% advantage for the republican in alaska. arkansas, senator mark pryor polling 42% running against tom cotton. that is leaning republican by about 7.1%. in colorado, we've got senator mark udall running against cory gardner, that one, leading republican 2.35% and louisiana senator mary landrieu is going to have difficulty running against bill cassidy the republican. that leaning republican by 4.8%. we're looking there in louisiana as a likely runoff scenario might not know the results of that election until december because there's a variety of candidates involved in the race. it could be an interesting one tomorrow. we might not have the final results for some weeks here. but obviously the big national issue here has been president obama's lack of popularity hurting some of the democratic candidates around the country. and we'll see whether they can pull it off or not tomorrow.
>> thanks so much. latest out of d.c. eamon javers for us, i know you have to be thinking about the results and what they'll mean to the market between now and the end of the year at the least. >> unfortunately, i don't think they will mean much. we've been in a stalemate in terms of anything going on. >> doesn't matter. you don't think if the republicans win the senate the market gets a bump. >> it's priced in. it's been well known, look at the approval range, lack of approval range, he's not going to let anything happen. if it couldn't happen when he controlled the senate it's not going to happen now. >> i agree with steve. i think it's built in and everybody's expectations, i think the surprise would be if the republicans don't get that gain, that everybody is expecting. that might be a hit to the market. >> coming up, while you weren't looking the nasdaq composite is at a 14.5 year high, should investors be partying like it's 1999? we're talking to the co-founder of razor fish, one of the boom/bust ipos of the internet bubble. find out if he thinks this time is different. the president of visa joining us in a first on cnbc interview.
how that company plans to fight for your mobile wallet. as we head to break, let's take one look at one world trade center. the building getting its first tenant today, conday nast moving in with 175 employees. beautiful shot of a beautiful building on a beautiful day. we're back after this. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.
welcome back. technology stocks hitting all-time highs they include apple, up 1.5%, pushing 110 bucks. seagate and lamb research. from apple pay to current battle is on for your mobile wallet. how are the credit card companies changing with the times? mary thompson live in las vegas at the money 2020 conference for first on cnbc interview with visa's president ryan mcinerney. take it away. >> hey there, scott. thanks so much. ryan, thanks for joining us. >> you bet. >> great to have you. >> great to be here. >> this is a really interesting conference. double the number of attendees this year. there are about 2500 companies in attendance. i have to think half of them are here because they want a part of your business. so when you come here, are you looking to defend your space or looking for new partners. >> we're here because a lot of our clients are here, partners are here, great exchange of ideas and we want to be where the action is, in the
discussion, in the dialog. we've built great capabilities we think a lot of companies will be able to leverage. that's why we're here. >> part of the conversation about payments today always has to do with apple pay. tell us how the rollout is going. you're one of their partners. >> apple payrollout is going great. we have a lot of our banks that are going to be launching soon. close to i think more than 500 banks getting ready to launch with apple pay. it's going to be a great service for a lot of our clients around the united states. and as we've said apple pay is just the beginning. we are working with clients to launch a whole bunch of different digital solutions. >> i wanted to follow up on that. on the conference call your boss charlie said this is a first case and there is more to come. what else should we be looking for? >> we've built a new platform called visa digital solutions. it rolls out in january. and it leverages our new tokenization capabilities and we launch a sandbox environment in october and we partners and clients that are building new payment capabilities right now
and you'll see them launch over the course of the next year or so. there's going to be a proliferation of new consumer experiences, leveraging mobile devices built on the visa digital solutions platform. >> scott, you have a question? >> thanks. ryan -- >> hi scott. >> just continuing the conversation on mobile payments, there was a considerable movement in a stock named monetize some weeks ago when visa announced it was considering its options regarding your stake in that company, about a 15% position. can you give us more detail on why you decided to put that out there, that you're considering your options? what that exactly means. whether you'll sell the stake and why? >> nothing new to report on monetized. we've said everything we had to say publicly on it. >> why would you -- >> i want to follow up with something -- go ahead, stock. >> go ahead, mary. >> no. follow up. it's fine. >> i'm just curious though -- >> go ahead, mary.
mary, go ahead. >> all right. sorry about that. i wanted to follow up on what you were saying about tokenization and your platform. when you do something how do you make sure you protect the visa brand? >> you start to see a little bit with apple pay how our brand goes from a physical world environment to a digital phone. we're happy with how it's worked on the apple pay process and we work through with our partners as we build and develop new solutions to make sure everybody's brands are appropriately represented whether that be a merchant partner in issuing client of ours or importantly the visa brand. >> i have to ask you about speaking of merchants the merchant customer exchange in the news lately because they're going to be rolling out their own mobile payment application currency next year, made specifically so that merchants could avoid paying fees to customers or companies like visa. what kind of threat does it pose to your business? >> the truth is, i don't know what mcx will be. that gets a lot of press on it but we're still waiting like everybody else to see what it
will be. we is at the end of the day believe what wins are great consumer value propositions that grow business for our clients. that's what we're focused on building. that's what our digital services platform will enable for a lot of our issuing and merchant clients to build. >> talk about enb. how the rollout is going so far. you have a goal of having these chip enabled cards out to all your clients in the near future. give us an update. >> emv in the u.s. is going out well. we put out numbers, we're part of a group we've pulled together of networks, mer chances, issuers, acquirers and everybody surveyed where they expect to be by the end of next year and we're going to see close to 600 million emv chip cards in the u.s. and close to half, 50%, of all merchant terminals accepting the emv cards. >> ryan, thanks so much for stopping by. >> great seeing you. >> we've been speaking with ryan mcinerney, who, of course, is the president of visa. scott, back to you. >> thanks so much.
well, visa is hitting an all-time high today. is it still a buy. logon to cnbc.com/vote to decide our winner in real time. stevewises the bull, murph the bear. >> here's how i look at visa, high quality company, extremely well managed as we heard from president of visa usa. so sure the multiple is a little higher than i would like to pay but that's always been the case in terms of apple pay, not only is it going to be good for them but they will pick up a more affluent buyer, that's what the iphone owner is. they're right there in terms of digital half of their advertising budget goes to digital. they're getting in front of this curve and leaps and bounds above the competition. so i'm not worried about the merchant platform. i've seen that in other businesses. it doesn't work. visa, quality company, strong fundamental s picking up market share. >> so steve, visa quality company, agree there. look at the price action in the stock. you know, less than a month ago
visa was trading $195 a share. today it's up close to $245. they had a very strong quarter. but if you listen to the president of visa america right there, no one knows what's going to happen to the fees they're charging, when this new exchanges comes on. i think one thing we've learned from the internet is that it's going to cut costs to consumers. i think that's a major threat to both visa and mastercard. the apple pay will help, but to pay over 20 times earnings for a company, when we know that there are going to be getting pressure on their fees, i don't like it. i would be a seller here. >> that's actually been the story for as long as i can remember. as you know i have a very good memory. >> great memory and been around a long time. >> exactly. both of those. pressure on fees, so sit by me and learn something here. pressure on fees not happening. the merchants pay the fees, not the consumer. they're advertising to the merchant and bringing them into the fold. so it's not any more an opposition type thing. they're bringing them in. i still like it. i don't care where the stock is right now versus where it was a
month ago. all stocks were down dramatically a month ago to where they are now. >> not going to sit on your lap but i do care where the stock is. if i'm going to pay $245 a share for visa right now i think it's a bad move. i would want to -- if this stock gets hit again and back down in the 180, 190 range i would look at it. but i believe visa and mastercard could have major pressure coming up on their entire brand on their entire business model. i would be careful if you're going to chase it up here be careful. >> well, we're cutting the vote there. bear case wins, 56 to 44. coming up, under armor has been a favorite on the halftime desk for some time. one of our traders made a bold call and it's been in the red for a couple months. so is murph calling an audible on that play? plus, a multibillion dollar deal in the health care space as big stocks on the move. we've got all the trades coming up next on the half. every morning the markets take off, at noon halftime report puts it in context the news driving the markets and debates
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all right. welcome back. let's do our trader blitz four trades on four stocks making news. lab corp trading lower after announcing it's going to acquire covance for $105 a share. >> this is a munster acquisition we're talking about. six plus bl billion dollars. i think you have to wait a few months before you want to dip into this name but i think going after that, this name goes higher. the synergies too strong together. >> boardwalk pipeline talk to me. >> this is a nim i own. it's also in my playbook. look at the quarter that came out, earnings fine, revenue better. i expected a better reaction to the quarter when it came out. stock dropped about 4%. take a look at it right now went green on the day. came from 21, i think it can go back. >> blackstone cutting its stake in hilton by a little more than $2 billion. >> yeah. 90 million share secondary offering. stock is down today.
>> stock exploding to the downside. not really. >> right off the 52-week high. and for marriott. focus on the fact that hilton is going to return to investment grade. that's what the waldorf sale was about. >> morgan stanley initiating coverage of facebook with an overweight. twitter and google at equal weight. >> i think it's what we've been saying on the desk that's how we feel. facebook is the one that should be there. morgan stanley points out you spend so much more time on facebook people that use it versus twitter. not known what your strategy is. analyst meeting coming up that's how i played it. i avoid those two and go facebook. >> what's up with the bottle of water by the way. i'm going to throw that out there. >> who rolls with that? who rolls with a glass bot until. >> i workout at 5:00 a.m. this morning. >> we don't need to do a commercial for the company. >> cover the label. >> back to me, man. where it should always be. >> like caviar in your
briefcase? >> you know he does. >> who rolls like that? >> plastic breaks down. don't you know anything? >> yeah. that's right that's right. >> let's go to dominic chu with the market flash, what's moving on? >> tap water for me, but other than that, home depot. which is the worst performer in the dow today. raymond james analyst downgrading the stock to a market perform citing valuation. the stock nearly hit $100 a share on friday. the firm saying much of the positive about the company and its prospects appear priced in to its current stock valuation. the shares are down by we'll call it 1.25%. the stock up some 20% over the past three months. back to you. >> thanks. guys, home depot, what do we think? >> think it's fine. >> stock had a great run. able to withstand the weak housing data, able to withstand the hacking incident but i kind of like this call. got close to 100. i wouldn't be putting new money. >> this is the right time to do it. the stock they did everything right. stock hits $100 a share, valuations far in front of lows which i think actually starts to catch up.
>> wow. >> don't you get et everything is fine. the world is fine. central banks have your back. buy everything. >> not home dees pot. >> buy it. up tomorrow. central back, ecb thursday, buy everything. >> draghi going to buy covered bonds from home depot. >> awesome. >> you better watch your back in that -- >> yeah. >> coming for you. >> okay. >> claws coming out. >> when are you going to make a trade by the way? >> soon. we're in november it's time for me to make a trade. >> going to do an option trade. >> if i could, we can't do it. >> you own more stocks than ever before. >> the most stocks i've had in a portfolio for a really long time. >> why? >> maybe ever. >> because there's been so -- >> central banks. >> forget the central banks. when we talked how ridiculous some of the push was down just two weeks ago on all of that news all culminating at the same time and look where we are now and what led the rally? scott, financials and chips. some of the best valuations in financials and chips. financials chips and pharma. >> well done. >> all right. >> take it.
>> no energy? >> take that big dog. >> yeah, man. it's monday night football. i'm going to the giants game. i can't wait. >> let's go. >> come on. >> all right. >> good? >> good. >> glad you got that off your chest. >> coming up, the nasdaq coms pos sit 9% away from its 1999 dotcom bubble highs. we will talk to one of the people at the center of the bubble. razor fish co-founder craig kanarick. find out if he's seeing bubbles in today's internet names. and october was a rough ride for investors. so how did the pros do? kate kelly has a peek at how the smart money fared amid all of that volatility. halftime report coming right back. after this. you probably know xerox
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welcome back. strong dollar putting pressure on gold. the metal slipping again today, a four-year low is where gold is. shy of 1200 bucks an ounce. we're closing out a hard month for hedge funds with the brutal mid-month drop in the powerful snap back in u.s. markets leaving big players battered and bruised. kate kelly joins us with the hedge fund highlights. or low lights as they may be. i don't know. you tell us. >> a bit of both when talking
about october. it was one of those months that makes you wonder whether the hedge funds will see redemptions as they underperform the broader market raising questions whether their fees and high risk making the investing worth while. dan loeb's third point which has had some killer performances in recent years, was down about 1.3% for october and is up nearly 5% for the year to date against an s&p that is up nearly 10% through the end of october. hard to say what dragged down lobe given that he invests in credit products and overseas markets but based on the stock picture there were laggards in his portfolio here including anadarko and masco corp based on filings. for tress's macro fund, a high flier having a hard time in 2014. manager mike was buffeted by the painfully close brazilian elections late in the month and the candidate he was betting against won by a thin margin. nonetheless that and another prediction he made on japan at
our dlefrg alpha conference seemed to pan out reasonably well in october from what i'm told. >> certainly feel like this is the year the japanese investors are starting to buy their stock market. one of the themes we is have in our portfolio stay long the japan story, stay long topics, dollar/yen. we're buying top picks instead of nikkei because that's what the japanese are buying. >> thanks to that trade his book gained 3% last week alone. trimming its losses to 1.8% for the month and 6.6% down year to date. one exception to this disappointment is bill ackman whose pershing square has been a leading performer now up 33%. october actually didn't do him any favors as he was pretty much flat for the month. modest games in allergan and air products helped offset losses in howard hughes and gains in herbalife a stock he is short. meanwhile, ackman's own shares about flat since their debut on an amsterdam exchange in
mid-october. see if there's more action. that opens for u.s. trading in a few weeks here. i mean, in other words, u.s. investors can get into it within a few weeks. >> you want to comment as our resident -- >> yeah, i do. first of all, i disagree with the premise. not an increased risk. there's increased risk with some strategies in hedge funds as with long only managers and private equity. i think you have to throw that out. that's factually not true. in terms of -- >> other than that what have you, steve? >> investing in stocks will be the same risk across the board. you will see hedge fund managers get into more thinly traded products whether sovereign bonds or other credit products. >> depends on the hedge fund you're into. >> of course it does. >> long only -- >> i would say the average hedge fund has a higher risk profile in terms of leverage and possibly -- >> we have to agree to disagree. >> than an index fund. >> i don't think that's true. >> here's the story if the hedge fund involved in energy, long short, they got hurt and hurt bad in october. and that's where the biggest dealt is. others cut back risk at the
wrong time and didn't catch the move back up. but overall, i think hedge funds came out basically flat which is not a good result. >> i also think looking back the shyer deal really -- >> and fannie mae last month. >> that was a cat la list for that volatile day. >> if any fund was flat in october i think there would be ecstatic with that. >> a great result. >> i think there are fund that weren't flat, hit hard. >> the carnage to your point underneath the indices was massive. you still have lots of stocks down 20% or so. >> sure. >> and they're running a hedge strategy. the reason, protect risk. >> right. and i know what the traditional argument is and i'm not disagreeing with it to say that hedge funds are not going to match the market at a down year, they're going do less badly hopefully, maybe a lot less badly and up year may not do as well, but i do think the fees get people frustrated and i do think there are exotic trades in some of these strategies people don't -- >> ackman number 33% is after fees. you have to look at what the --
>> ackman is killing it this year and give the man full credit. >> 100% steve cohen, he was 50% fees but had great numbers. >> and continues to from what i hear. >> why he had them but the bottom line is you have to look after fees. >> right. >> some of the -- >> all -- >> there's 6% sales charges. >> all i'm talking about net fees. >> are you upset about the water? >> still working off the water. he got my riled on the chip comments. >> you know -- >> actually thirsty. >> we can argue. >> kate, can i offer you a sip. >> always mine. >> thank you. >> and tomorrow on the half, we should let you know we have a first on interview with herbalife cfo john desimone. as you may know reports earnings today after the bell. we're going to speak to mr. desimone first tomorrow noon right here. now we're going to speak to steve liesman who has breaking news regarding the fed. steve? >> scott, thanks very much. dallas fed president richard fisher explaining why he did not
dissent in the last meeting, why he voted for the statement and he says because the phrase considerable time between when the fed would hike rates and when it ended qe has been, quote, neutered. he says the new fed warning offsets considerable what fed warning, the new warning that fed could potentially hike rates faster if the economy goes as fisher believes which is goes faster than currently believes. he goes on to talk about fed chair janet yellen saying she has proved herself to be, quote, neither a dove nor a hawk and yellen is, quote, impressively balance in her outlook in the way she runs the meeting and her legacy is in completing the exit from the monetary policy. fisher a known hawk goes on to warn there's, quote, a lot of inflationary tinder out there. thank you so much. >> time to break out the confetti and party like it's 1999. we have the co-founder of razor fish in studio talking about the bubble that was. and how it compares to the tech market of today.
which is closing in on those bubble highs. a more than $3.5 billion in the ad space today, did some options traders get early publicity on the deal? pete breaks down the suspicious trades next on the half. ort sitd i have a problem. i need to speak with your fraud resolution department. ugh, we don't have that. what should i tell him? just make that super annoying modem noise... (shuuuuuuuh....zzzzzzzz...de ee...dong...shuuuhh...) hello? not all credit report sites are equal. classic. experian.com members get personalized help plus fraud resolution support. join now at experian.com. with enrollment in experian credit tracker. this guy could take down your entire company.h? stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care?
time to put money back to work if you haven't already. where should you put your money in the market. index funds or actively managed funds. the answers may surprise you. the job market is improving. interest rates are low. where are the first-time home buyers. levels hitting new lows. what's behind it and what this alarming statistic means for the american housing economy. back to scott on "fast money halftime". >> thanks so much. when something unusual happens by now you know one of the najarian tries to make money on it and someone made a bet on sabent ahead of today's acquisition news. pete is the co-founder of option munster in case you have forgotten. >> nice, scott. >> what are you seeing? >> going to that real quick, in the month of september, 79 total options traded this. you go backs to last week, you can see we've got last week, on wednesday, scott, 3400 options traded. again, september, less than 80, 79 traded. one day, 3400. some of those with a november
17.5 calls. see this jump on this takeout. if you look at the calls, these calls started out here 60 cents and here you see them at $9 a share. so it gives you a little bit of an example of the leverage and somebody seems to have at least a little inkling something was happening in a short period of time. maybe we will see some of that today. i don't know. we will go to broadcom and a stock john has talked about it a lot on the halftime show and he's talked about the chip stocks. we have all talked about various chips. broadcom moving towards the 52-week highs. see it on the chart. today we had monstrous buying in the december 42 calls. when they started buying these calls you to understand stock just underneath 42, very large buyers of these calls. today this is where we're seeing the trade right around this 1.50 mark. >> yep. >> they're looking for the stock to test the highs and explode through them. >> by december. >> are you in on that? >> i am. i bought it just as we were driving over here. got an opportunity to get on it. little cheaper because the stock
dipped down. i'm waiting and i'm going to wait at least a couple weeks. >> all right. >> coming up, thank you, pete, we're taking you under the radar today. joe is focused on nat gas and the moves that could help power your portfolio. don't look now, the nasdaq close to its all-time high. when companies like razorfish were flying high. co-founder craig kanarick is here to compare now and then. and to talk about his current venture in the food industry. does he see another bubble brewing? halftime will be right back. so ally bank really has no hidden fees on savings accounts? that's right.
all right. welcome back. the nasdaq hitting a 14.5 year high and on that note, we continue our nasdaq 2.0 series following up with the high flyers of the internet boom. craig kanarick was the co-founder and chairman of co-f chairman of razor fish, one of the biggest digital media agencies in the '90s. the stock doubled in its nasdaq debut but tumbled as the dot com bubble popped. comparisons now has it pushed offbase or is there some truth? >> i think the market itself and the people are completely different than it was 15 years ago. in 1999 you had 450, 500 ipos, a fifth of them doubled on the first day. we won't see numbers close to that this year.
>> what besome of the valueuations must make you look and say are we getting ahead of ourselves? >> individual companies, yes. for us the ipo is our second financing event. most of these companies going public now. the ipo fever has changed i think to maybe series a fever or series b fever. these people are going through crowd funding, angel funding before they get to the public markets. that's radekalicalallly differe >> should we step back and pause and say what are we doing? >> i think any company that is pre-revenue you have to think about. we are talking about a universe now where people have computers. the bet then was about a longer future that when the internet arrives for everybody then we have customers and make money. what is happening for almost all of these companies now is they
have customers and a lot of them have revenue. it is just a different type of feeling. >> what companies stand out to you positively or negatively as they are trying to do their thing in today's nasdaq world? >> i am excited about companies like uber and air b&b and other companies that are sort of disrupting markets and taking assets that weren't monetized and leveraging them. >> valuations justified on those? >> it is hard to tell exactly but they seem high. at the same time i haven't seen companies that grow and have the type of reach that those companies have had before. >> you see twitter like we all do. questions about maybe the business model, questions about management. do you have any questions? >> i think they are the same ones you have. i love to see where they go next. the ipo helped them raise a fair amount of cash. where they put them to work is interesting. i think there is fatigue in the
stock post ipo doesn't have the same excitement it had. i think it company seems to be addressing concerns. >> what excites you in social media right now? >> i think twitter is still very fascinating. i think facebook is fascinating. i think pinterest when it comes around will be a very interesting play. the companies that people are just using constantly are always something to pay attention to. >> you have a second act currently and it is called mouth. what is it? >> mouth is an online indy food store. we are part of this growing movement of both a revolution in the food industry towards smaller brands and different types of food manufacturing and the huge monster ecommerce trend. >> you raising money still? >> we have been raising money in small rounds here and there but nothing on the scale of an ipo. >> what does the future hold for what you are trying to do? >> we think right now the best way for us to do fundraising is through private investors.
>> when you look at the private market that you are talking about, is a lotf that fuelled by the trend away from the food in regular supermarkets like going towards like a whole food or foods that are for without celiac? >> i don't think it is a niche. you have fancy water here on your desk as we were talking about earlier so clearly there are people -- >> clearly you know a little bet r. >> people are reacting. there are certainly people with dietary concerns whether it is paleoor any of the other dietary concerns. i think people have taken an interest in food that they never had before. it is a hobby for people. young people are spending probably more money on new restaurants and food products than they are on music and film. >> so resident chef right here. >> thank you. >> that is a big part of it is
people have an interest in where their food comes from and they are also rebelling against sort of large pharma. they want stuff that feels better to them and is more pure. >> keep in touch with us and let us know how mouth does. good to see you. interesting conversation. alibaba reports earnings tomorrow and the traders are taking their positions ahead of those numbers. you like alibaba? final trades coming up next. sheila! you see this ball control? you see this right? it's 80% confidence and 64% knee brace. that's more... shh... i know that's more than 100%. but that's what winners give. now bicycle kick your old 401(k) into an ira. i know, i know. listen, just get td ameritrade's rollover consultants on the horn. they'll guide you through the whole process. it's simple. even she could do it. whatever, janet. for all the confidence you need. td ameritrade. you got this.
it's in this spirit that ing u.s. is becoming a new kind of company. ing u.s. is now voya. changing the way you think of retirement. good morning. alibaba reports its first quarterly results following the record-breaking ipo. the stock is up 50% since the debut. is now the time to take money off the table or not? >> i'm still in it. my answer would be no. i think the international expansion portion of this story has yet to be even touched so far so i expect to see this stock do extremely well. i know the level is high right
now. i think the growth is there. >> i'm out of alibaba. i just like at the risk/reward i expect it to be a strong quarter. i think after the run it has had i sold it and i would love to get back in in the low 90s. >> i think it is crazy to invest for the quarter. if you like it long term it is a great story. >> 50% move makes it -- >> i wouldn't put money in it today. for me the risk/reward is not balanced. >> i own this on what i consider to be a ridiculous dip and it gave me the opportunity to get the stock close to $90 a share. i think the upside is still there and still yahoo, as well. i think there is still growth in both. >> let's do final trades. >> i go with hertz looking for earnings today. >> you bought that stock friday, right? >> yes. >> joe? >> ch robertson. watching the move in energy. xle up 1% on the day. a huge move from when we started
the show. huge. >> apple, long. i think it has good momentum and still a cheap stock. >> i am going to go with intel. i bought this on the dip, as well. average price around 31.5. >> good stuff, guys. you guys have a great rest of the day, as well. we will see you tomorrow and "power lunch" begins right now. "halftime" is over. "power lunch" and the second half of trading day start right now. thank you very much. the dow in the red right now but the s&p has hit new highs today after a wild october will it be a november to remember? rally, route, something in between? which are the best in a volatile market like the one we have been through over the past month? index funds or the actively managed funds? where should you heavy up these days? and despite an improving job market and low interest rates, where in the world are the first time