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tv   Fast Money Halftime Report  CNBC  February 10, 2017 12:00pm-1:01pm EST

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business side. now, this will be his first time as secretary of state to be in the room for a high-level nation to nation sit down like we're going to see here today at the white house. we're told that the secretary of state also spoke to the japanese foreign minister as well. a lot of negotiations at various levels of these two governments today. >> with that, eamon, we will toss the baton to the judge over at headquarters as we continue to await the prime minister's arrival. judge? >> carl, thanks so much. in fact, we will pick it up where you left off as we await the japanese delegation to arrive at the white house. prime minister shinzo abe becoming the second foreign leader to visit the trump white house since donald trump became the president of united states. lots on the plate today. trade of course, probably first and foremost. japan is the fourth largest trading partner of the united states. it is second largest trade deficit, by the way, with the united states as well. the second biggest source of foreign jobs here in the u.s.,
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president trump already making comments over the last few weeks about toyota, motor taxes, things like that. certainly commenting as well on japan's currency. all of this impacting how we think about various aspects of the market. so this is an important meeting today. they will meet at the white house. then head down to florida for a round of golf, maybe more than one. still waiting on that. but they will head down to mar-a-lago where we understand prime minister abe will be staying at mar-a-lago as well which is interesting news in and of itself. we continue to watch the story. you're looking at the japan nikkei. since donald trump was elected president, up double digits. we're going to take you to the white house once we see the delegation arrive. i have the traders in front of me today as well. i've got steven weiss, josh brown. steve, we've entertained this conversation almost daily now as
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to which markets you really want to be in. this is a reminder of things happening outside the u.s. markets and markets quite frampgly that have done pretty well keeping up their pace if not outpacing what we've done here. >> i think the dialogue as of yesterday has changed somewhat because of the conversations that the president has had with china. so he -- according to reports he's recognized the one china policy and he's shown that he's going to have a different concept depending on who he's talking to. different with china than with australia and mexico. and to me that is the most encouraging news that we've seen so far in terms of that dialogue. so that opens up a whole new spectrum in terms of how you want to invest. in terms of europe we're seeing strength everywhere. the chinese export numbers are primarily arkting europe, strengthen europe. now you're looking at a synchronized globalably emerging economy. i mean, growing economy. so that's very positive. and it's positive for us because you'll see pressure on the
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dollar instead of the dollar continuing to ascend. >> eamon javers as we said is there at the white house. you want to set up what we're expecting today? >> yes, scott, the shot that you're looking at here is the west wing portico. you can see the u.s. military honor guard there with the old executive office building in the backdrop. we are told that president trump is going to greet the prime minister at that portico entrance in just a few moments when he arrives. we'll see them walking into the white house. we'll also see a pool spray of the oval office meeting and then we're going to have this press conference over in the white house proper later on this morning. so right now we're on the north lawn waiting for the motorcade to roll down the driveway here right behind me. should be quite a site. it is a bright and sunny day today here at the white house. it is crisp and cold. the flags are waving. and they are ready to go her. i can tell you this honor guard has been practicing their moves here for an hour or more. they are ready to go as well. and so many of the economic issues that are on the agenda
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here today, scott, are going to be front of mind. we're waiting to see whether or not we get an announcement of any kind from the japanese prime minister in terms of any kind of trade deals, any type of headline items that they might be able to put out here in order to emphasize the japanese trade is good for america, too, and creates jobs here. senior administration official told a number of us last night that the key here for the president is jobs, jobs, jobs. and we're told that the prime minister of japan understands that very clearly. so we're going to wait and see whether there's an announcement of any type. that could come during that press conference later, scott xwl shinzo abe is likely to re-enforce the fact that japan has invested some $400 billion over the last many years in the united states. leading to the creation of millions of jobs. he, the president, have already sort of called out toyota for building factories in mexico, selling cars into the united states and that plays right into the border tax conversation, bilateral trade agreements with the fallout of the president's
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stance on tpp will be front and center as well. how are you thinking of all of that as an investor? >> so our job when we work for investor as wealth manager is do the things they won't do for themselves. and so in early january one of the decisions we made was that when you think about -- >> driveway on the north lawn? there's prime minister of japan pulling in right now on the north lawn. his motorcade behind him. you can see a couple of the diplomatic cars also entering here at the north lawn of the white house. the prime minister was in that first limo, the equivalent of the beast for the president of the united states, donald trump obviously has the same sort of limo. they're going to pull up here to the west wing portico in just a few moments you'll see those doors open. the prime minister who appeared to me as he came by, appeared to be aalone in the vehicle. there you see president trump already out and waiting at the west wing portico. and those doors are guarded by
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united states marine every single day of the week, scott, and today it's guarded by more than just one marine and of course all five branches of the u.s. military. there's the greeting and the hug from the president to the prime minister. a warm embrace here for the japanese leader here at the white house, as well. around you can see them beginning to make their way into the west wing. but that will be seen as an auspicious start here for the meeting, scott, between these two leaders. >> oh, a very warm greeting there, eamon, as you were just talking about. joint news conference at the top of the hour, 1:00 eastern time. sometime later this afternoon maybe in the 3:00 hour they will head down to florida to continue that meeting on the golf course. >> scott, we're being told that the prime minister is going to be comped by the president of the united states for his stay at mar-a-lago, that will be a gift personally between president trump and the prime minister of japan that he won't have to pay for the full freight of that mar-a-lago weekend. >> do we understand, aeamon, tht
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prime minister abe will be staying at mar-a-lago while the rest of the delegation will be staying elsewhere? i heard commentary about that in and of itself either being unusual or interesting. >> well, that's right. there's been so much attention paid now to the issue of president trump, the hotels that he owns and whether or not foreign delegations can pay to stay at those hotels. so they're going to in one way or the other be able to get around that this weekend by having the prime minister of japan staying for free at mar-a-lago and presumably the japanese delegation will stay somewhere else. we're told they're going to play golf together this weekend. we're told they're going to eat -- dining together and just relaxing overall. senior administration official told a number of us yesterday that president trump is a leader who likes to get personal with the other people he's dealing with. his counter parts across the neg yatding table. he likes to spend time with them. he likes to know their family, know the details of their lives. and that's the sort of relationship building they're going to work on doing this weekend at mar-a-lago, scott.
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>> eamon, thanks so much. we'll get back to you and the white house in a little bit. eamon javers at the white house as japanese prime minister shinzo abe arrives for that meeting and the news conference with the president. jim? >> we were talking about international investing and i thought steve made a good point ant synchronized global economic growth happening. the only problem i have with that is the politics can interfe interfere. we're worried about angela merkel election's chances. france's debt has picked up and lapin is getting more popular it seems. this is the only thing that can up end this recovery and that does have me worried. has me more focused in the u.s. >> i wonder what you guys are thinking of the mere optics of the picture we just saw. a warm embrace between the president of the united states, the prime minister of japan, a letter to china's leader followed by a one-hour phone call. and the way that the narrative
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of president trump's place in foreign policy has shifted a bit to focus on that rather than the phone call with the australian leader, for example. >> i think you have to find it encouraging. and what's so unusual about this, i've been thinking a lot about this over the last couple of days, since he sent the letter to china, is that you know, think what you want about the political issues and they are separate but here you've got a president who is active with such speed and fulfilling all the promises he's made to the people that elected him. so tick them off one by one by one. we may not like some of them but you have to then go through it and say what is he going to do to impact the markets? that's tax bills he promised in two to three weeks. we'll see. we don't know what the details are. >> you said in your note today that this is the best that you have felt about the trump presidency as it relates to -- >> right. my biggest concern was when you send the defense secretary, you don't send him to nato which is
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where he should have gone. you send him to south korea and japan. and with that was and you make nice with russia because if you are worried about one country going against you, if you're going to take on china, it's russia. and then you are worried then and south korea because you're right next to north korea and worried about japan. that selts you up for a fight with china. that fight with china at least is not happening now and that's why i felt much better about it. >> bringing in another guest, another voice to this conversation. david marcus is the chief executive officer of evermore global advisers, portfolio manager of the five-star rated global value fund. he joins us on the phone. david, it's good to have you on today. what do you make of the pictures that we have been watching of these two leaders in a warm embrace and just the overall investing environment and whether the u.s. really is the best place to be given the so-called trump rally and where it's taken us? >> well, look, they're just pictures of guys hugging. we'll see what comes of it. the fact is for us, we're less
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focused on the macro environment overall and more on the bottom up, company by company opportunity. and for that we actually have been shifting our investments to europe more than anywhere else. at the u.s. we're at the lowest level that we've had in our fund since we started our fund over seven years ago. >> is that a statement in and of itself, that the u.s. is just too expensive in your mind? >> well, look, we're a special situation investors. we like break up, turn around, spinoff, all kinds of strategic change. that's been going on here for years. yeah, the u.s. has less of that. there's always going to be opportunities here. so we're not running out of the u.s. it's just that given the same set of situations and the environment, there's just so much more going on in europe because they're so far behind the u.s. the u.s. is just more advanced in cleaning up the corporate, the restructuring, the streamlining of conglomerates. europe is so far behind that you can get a wonderful opportunity
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and investors are so panic-stricken about thinking about europe because they read the headlines and don't look past them. when you look past them, companies are taking advantage of the situation and they are restructuring themselveses, cleaning up the balance sheets. there's no growth so they're buying dploet growth. there's lots of m and a. there's so much going on out there. as i say investors have to read the story not just the headline. >> i agree with youbsz rg david, 100% in terms of those opportunities. and yopg the european markets are necessarily cheap, broadly. so i go with you. however, how do you navigate the regulations that are over there and the laws which are far more onerous than the u.s.? >> well, look, i've been investing europe for 25 years now. when i started it was a lot worse. and so you're seeing it progressively getting better. in fact, if anything, the 2008 financial crisis was, i hate to say it, but the best thing that ever happened to europe because it forced the countries to wake
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up and change a lot of rules and regulations and that's allowed companies to close, streamline, cut positions out and downsize the headcount which has been something they were just unable to do before. the banks had stress tests, not the best but they've started to expose their problems. so a lot of things that were in the the closet, skeletons have been coming out getting the light of day and being dealt with rather han just constantly pushed down the road. and even though the valuations on the headline might be not so much of a discount the fact is most european companies have lower operating margins than the u.s. counterpart and that's the area of the best opportunity because they're working so aggressively to be so competitive. and so they are keeper than they appear at first. >> david, in the spirit of the white house visit today and looking at where you're putting your money to work and you do have 3/4 of it in europe, your smallest exposure to the u.s.
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that qulouf evyou've ever had, 7% in asia? >> three years ago we had 0%. so that has bubbled up for us. i'll tell you why. especially japan has been a tomorrow story for 20 years. so now it looks like maybe japan might be a today story and what a today story is where this opportunity for real shareholder value creation. asia is bubbling up for us and i wouldn't be surprised to see it much larger down the road. i'll be there in the next couple of months. we're feasting both -- mostly europe, some asia, asia is growing. >> were you a big believer in so-called abenomics and what it can do for not only the japanese economy but markets. >> i'm a big believer in change that is focused on pushing the economy forward. so, yes, at the end of the day absolutely. because he's doing things that
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are trying to get the wheels turning. these wheels were dead stopped. greasing the wheel, still squeaky, a lot more that has to happen. a whole culture not focusing on shareholders by the corporates there. that's slowly changing as well. starting the abenomics, boards being more aggressive and not putting up with sort of issues from the past and finally getting value to the shareholder, that's sort of a new thing in japan. it's happening in other markets. trying to stay away from them because it was a high multiple market. now with the china slow down that starts to get interesting as well. and then you have the traditional things. you have things that we love, which are family fights, companies that break up because the family doesn't get along and spin off in noncore assets. you're seeing different parts of asia bubbling up with the kinds of opportunities that we love to focus on. so it is small today but, as i
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say, it's up from nothing and growing. and the u.s. is fueling that for us. so we're using the u.s. base for asia and to pay for europe. >> go back here. give us we prefer a couple of names that are your favorite positions that have most upside. but if you don't prefer to do that give us your favorite sector even though you're bottom's up and the most attractive country in europe. >> well, look, two quick favorites are one is vivendi, french conglomerate. no one likes france currently, i do. huge media and telecom business. own 100% of universal music. biggest music company in the world. they have assets really all over europe and here in the u.s. it's grossly undervalued. it's led by a very dynamic value creator and still in the early days of its restructuring from what was a very undermanaged business in the past. second, i like tish and crupp.
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if you've ever been in an elevator, it may be their elevator. this is still considered a steel company that makes elevators. slowly getting out of steel. when this is down it will be an elevator, escalator business that has legacy steel. and perception change is a complete valuation change. this is a company that has so much cost cutting under its belt and refocusing an aggressive management that's come in. again, invests are looking at it from steel colored eye, seeing it as steel business rather than what it really is, which is an industrial specialty business. and as that perception changes, i've seen this over and over and over, valuations transform dramatically. >> i'm going the have to leave it there. awaiting more activity at the white house. we'll continue this conversation some other time, soon, i hope. >> sure. thank you. >> appreciate your time. david marcus, ceo of evermore global advisers. on this note of where we're discussing the best place to invest really are, the u.s. may
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look expensive to some market watchers and portfolio managers. do you think though that still some people are underestimating what's going to be unleashed by part of this trump agenda? >> i push back on the notion that the market is expensive. yes, 17 times earnings is not cheap, but it's not expensive. it's nowhere near bubble territory if you look underlying it you can find so many stocks that are meaningfully cheaper. 10 to 15 times earnings for great companies. i don't care if it's boeing, intel, great companies. >> here's the video of the white house meeting between japanese prime minister shinzo abe, united states president donald trump. you saw the two men embrace just a short time ago as shinzo abe arrived at the white house. again, he is the second foreign leader since donald trump became the president of the united states to visit the house. john harwood, what do you make of the kind of embrace and these
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pictures that we're watching in front of us today? >> well, japan is an ally that every u.s. president in recent years has embraced. donald trump during the campaign raised questions about whether japan adequately contributed to its own defense and whether or not they had taken advantage of us in trade deals. since the election, of course he's pulled out from the trans pacific partnership that japan was part of that was meant to contain and provide an alternative set of arrangements to those that china is seeking. interestingly, last night just before this meeting of course the president had this phone call with inping in china. so you've got a lot of different political and geopolitical current swirling around this and the i think the president will try to cultivate this
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relationship and at the same time he's trying to right the ship with china which he had royaled with the call that he had taken with the taiwanese leader after the election. >> what about the president not just right the ship but right part of the perception, if you will, about how he's already dealt with some foreign leaders by phone or otherwise? you often see warm embraces between leaders who arrive at the white house. but this seemed especially warm and special. >> well, shinzo abe was the first foreign leader a he metha he met with after the election, after being elected president. so abe gave him a gold-plated golf club, a driver. they have both expressed an interest in making this relationship work. but as you suggested, scott, president trump has given the perception of bull in a china shop and he's broken some china. and i think he and his team has
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an interest in not breaking too much china. and so the idea that he is going to have a smooth visit with the japanese leader i think is something that he and his team think is in their best interest right now and probably makes sense. >> john, appreciate it very much. john harwood live from washington with us. for anybody that's played golf, weiss, you certainly know, you're not going to spend four or five hours on the golf course with somebody you don't like. >> you and i have played. >> well, i've made exceptions for you. >> you walked into that. >> generally speaking. i knew that was coming. none the less, the president and prime minister will play golf at some point over the weekend, down in florida, we expect. lots to come up on the "halftime report." >> investing in retail has become a dangerous game, but up next, a wall street firm starts picking winners off the store floor. while a trader sees opportunity on on the track. before the break, with volatility extremely low we and our partners at kensho looks at what does well a week week after the vix hits levels like we're
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seeing today. the volatility index stays strong. gold, materials, and tech also beat the s&p. as for the broader markets performance, when u.s. volatility is low, the nikkei, stoxx. scott wapner and the "halftime report" are back in two minuteso . i've found a permanent escape from monotony. together, we are perfectly balanced, our senses awake, our hearts racing as one. i know this is sudden, but they say: if you love something... set it free. see you around, giulia ♪
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pace for its best week of the year. costco, jp penny, ross, tjx and walmart put at a buy. we made that our call of the day. do you like this? >> no, but parts of it i like. look, the retail sector is obviously very damaged. the here's the part that i like. seasonally this is the time that it works. you've got earnings coming up. remember all the retailers close their year at the end of january because it's too hard to do it in december during christmas. they close in january. they start reporting next week and the week thereafter. traditionally that's a seasonal time to buy. other than that, i mean, you've got a lot of bad news out there and we're talking during the break about sears holding. it's getting a heck of a short squeeze today. that's a stock where the three-year debt trades at 15% and that company is in deep trouble. >> they're negative on this one. >> on sears? >> yeah. >> well -- >> positive on the space. >> not the whole space. they're positive on costco. >> yeah. >> is that a good call? positive on jcpenney.
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> >>,jcpenney i like, on the balance sheet. paying down debt. nobody is paying attention to that. they've got a $400 million debt deal that matures in march. i expect them to say that they're not going to take out new debt to finance that payoff. >> pete najarian is with us as well. are they positive on the right names? on the surface it would seem to suggest they are. costco, make what you want of jcpenney, ross, tjx, and walmart. >> yeah, i think 100% they're correct here. when you look at costco talk about somebody who has been amazon proof. you look at what they've been able to accomplish. how about the january numbers? they were up 9% year over year in terms of the sales. their traffic numbers are good. when you look at the discounters the interesting part there is they still have room to grow, scott. that's the area that people call the treasure hunt area. you look at tjx and ross stores. ross stores has plenty of room to still grow in the united states and when you look at tjx if they want to get global they
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can get global in a hurry because they are another one just in the united states. there is room for expansion and obviously the discounters right now always have that advantage. that's the one area that still can compete very, very well and they've proved it time and time again against the e-commerce world an obviously we're talking about amwhen we say that. >> no big surprise when you look at the calls. look at the neutral. you can substitute neutral for what may be a negative from most observers. i mean, everything is a big box. nordstrom, kohl's, macy's, target, dillard's, big lots, all neutral. >> i bought macy's, got luck yrks worked out early. 3/4 last week, the rest this morning. but that's the big issue. what's somewhat of a boutique firm doing hiring an analyst who may be the best analyst in the world, she may be the best analyst in the world, no value
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add here. pedestrian names at this point. add value, stocks that you can make money? >> jcpenney is -- why can't you make money in jcpenney? >> how about the fact that tjx -- >> you can get that call anywhere else on the street. i can get it in 50 other places. >> if you want to make a call -- >> there are a lot of buys on jcpenney? >> i think there are enough shorts on it. >> there have been buys in jcpenney on 42. great. >> that was like six years ago, steve. >> your memory is foggy. >> if it was four years ago we're in the same ballpark. if you want a call, sears, macy's, what you're looking for is a decrease in stores. whole foods, we were talking about this yesterday. in this space you want to see the store footprint across the nation go down. >> walmart -- >> survivors -- >> walmart has gotten smaller. are they a buy? >> not small enough.
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that's a special case. >> they have a positive on it. are you positive or negative on it? >> i'm neutral on it. the only thing that it's got going for it is it's got such pricing power with its suppliers. that doesn't really thrill me as much as something that i find a little sexy about looking under the hood at the balance sheet of jcpenney. >> what about tjx, $92 price target? anyone? hello? >> no. >> extreme. >> no. >> no, i look at these calls. they're all in the direction of share price so they like costco, that's one of the newal-time high. they don't like the ones hitting 52-week lows. look at a chart, what's the stock doing, that's how we feel about it. i agree with steve, there's no point in any of this. >> tell me about the one that's at the 52-week low that is going about to make a turn because the street has it wrong. costco is great and jcpenney is not? >> costco and jcpenney are both positive. >> fine, fine. look. >> thanks for reading the note. >> look. it's very simple.
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if you're a trader you're not looking at these stocks right now because, quite frankly, price action is atrocious. fundamentals are worse. >> pete's a trader. you're looking at these names, aren't you? >> macy's, i bout macy's as a trade. >> is costco a total dog? >> no, costco is the best name in the group. nothing even close to it. it's the best moat against amazon. and quite frankly, there are no competitors really for the experience that they're giving clients all in. clients are members. you can't replicate that. jcpenney tried, didn't work. that's the one you want to own from a short term. >> ross, $80 price target. >> my point in the call -- >> obvious call? >> my point in the call is coa that if you're going to hire an analyst hire an analyst that follow stocks that others are in the following. in terms of stocks, buy them when they're overhated like i bought macy's at that point in
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time. caught a lot of guff for it on the panel and from friends of mine and i got lucky. somebody made a bid on it, traded it up more. buy them after christmas is over when things look bleakest. now is the time to own them and that's why i bought it. >> i'm going the give you the next costco. tractor supply company, you know it's true, too. >> farmer jim. thank you. >> pete -- well said. pete, wrap it up quickly. i wish you were here. i wish you were here on the desk. >> yeah. i do, too. well, i tell you what, i disagree with what steve is saying and josh kind of jumped on there as well when he said it's not value add. if you look at tjx and ross and the price targets are that they're putting out there, scott, you're talking about an extreme number. tjx at 92, trading at 76. when you look at ross stores at $ $80. they're saying this is just beginning and they can compete with n. this environment. all three of those names in you add in cost korks even though costco is near the highs look at the price target they've got on
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this. i think those are all correct because those are companies that have been able to manage to go through the e-commerce wars and still come out on top. so i think that this is value add and you can add money even at these levels in some names. and when you look at something like tjx this is off the highs, a name they put a $92 price target on. that is an impressive run if that's something that can happen over the next year. >> taking the belly of the beast right now. former research director on the sales side. when an analyst introduces it you've got to get somebody to read the report. stick a really high price target on it or a really low price target on it, otherwise nobody is going to read it. you're going to be writing consensus. >> great. our next guest says it is time to jump into retail. >> details bore you, don't they, scott? >> no, just the reading of red thing. >> move on. >> larry mcdonald is the creator of the bear -- >> those who have resumes -- >> that's why they have linkedin. larry, are you there? >> hey, scott. >> jealous.
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>> good to see you, larry. >> the jaealousy. >> why are you making a bet on retail here? >> fascinating dynamic. at the end of the year wall street needed a financing rec nichl for their reflation trade. one of the most crowded trades on earth is this reflation trade, tax cuts, both individual tax cuts and corporate tax cuts are going to fund this trump rally. but the border adjustment tax is the main funding mechanism. that's what's crushed the retailers at the expense of all of these other sectors that are flying high. >> not to mention the fact that amazon, i mean, you know, the border tax plus amazon. >> exactly. it's been a perfect storm. >> maybe amazon first more so than the border tax. i get your point. >> and then you had obviously tax laws selling year end. if you talk to -- we've been advising clients on washington policy for more than ten years. and this border adjustment tax is light years away from getting
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past. it's dead in the senate. whatever the president is going to come out with is just going to be littering an outline because what wall street has been working off of is an outline from the summer from paul ryan. it's just an updated outline. so the bad news is really been dramatically priced in, capitulation score has been extremely high. risk reward is fantastic here in retail. >> he's absolutely right. and i keep forgetting about it but therd whoer tax is what's crushing them, in addition. but, larry, so you don't think that there's more importantly in the tax bill, you don't think there's a chance we get some real robust details from here than just the outline and do you think the outline, the second question, is enough for the dems to tee off on it? >> so chuck schumer didn't vote for our transportation secretary who's mitch mcconnell's wife. almost 85%, 95% approval across the senate. this senate is toxic, guys.
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this tax bill is light years away from happening. enwhen it does happen, let's just say it does pass, the benefits to the consumer and to businesses, the multiplier effect, the beneficial benefits to the consumer from tax cuts are very, very powerful. so it's a win-win either way. first of all, the border tax may not -- is light years away from happening. even if it happens, the tax cuts on the individual side and the corporate side eventually will be much more out way the border adjustment tax negative on retail. >> larry, look, we've lost some retailers over the past few months, the limited comes to mind. i'm not going to beat around the bush. sears holdings looks like it's in intensive care. i'm not going to go further than that. but who else do you think is in trouble in this space? >> well, i think if you look at sears, what eddie lambert, i mean, this guy has been over the years a genius at pulling rabbits out of his hat. asset sales there.
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i think you're right, the credit as you wisely put it, the krid dit is at a dangerous point. bear market rally in sears is very, very likely. but we don't really make individual calls. but we're just trying to say is overall the risk/reward in the sector versus the s&p -- here's the key number. 24. the retail space over the last 24 months is underperforming the s&p by 24%, the most significant underperformance in the retail sector since the 1990s recession. the risk/reward is fantastic at long retail. >> larry mcdonald was. speaking of retail and the consumer an interview you won't want to miss on monday. mick mcgwire joins us to discuss his push for change in buffalo wild wings just revealed a new position at deckers as well. we're going to talk to him about all of it. let's talk about apple right here which is only a few bucks now away from a new all-time high and, weiss, you add it to
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your position in it. >> i knew i was going to be on with jim today so i thought -- >> the guy who dumped all over apple is now adding more. what's up? >> look. >> i knew i would be on with pete as well. >> you laugh because you know it's true, pete. >> yeah, exactly. >> look, you can't be stubborn when you're an investor because then you may not make money, may lose a lot of money and i still think that the buying cycle of the stock is going to move up earlier. and, yes, i'm still worried about the border tax but i've also been reading that it's having a tough time in congress and it may not happen. so i bout it because i think it's going to be a market stock. i like the market. i want more market exposure. and in that in conjunction with moving up on the cycle for the eight, fund is relatively low risk and i'm relying on josh, that's breaking through that upside-down downward dog candle that it will break out.
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>> stocks already broken out. >> there you go. >> already making money. >> thank you. >> it's not really a market stock. correlation, if you look at 20-day correlation versus the s&p. just for example -- >> bad point. >> i'm not a bad mood at all. you would know. america would know. >> go ahead. >> i think the key here is that sometimes apple is a market stock. sometimes it's not. we don't get a warning when that's going to happen. i'm done. >> go ahead. >> no. >> sensing the hostility. >> i lost my whole train of thought. >> the watch is finally showing some signs of life, should we care? >> i don't care about that stuff. the stock is going on. >> pete, should we care about the watch? >> pete cares about the services. >> yeah. well, but all that sort of feeds into the same sort of animal. >> the watch is the same conversation. sorry, pete. >> right. well, yeah, and you get this growth and we talked about where
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do you focus right now on apple when everybody wants to stare at this thing as the hardware company, yes, i know the percentages say it's a hardware company but you still want to look at -- >> pete, peat, pete, i got to interrupt you for a second. pete, i apologize. morgan brennan has breaking news for us. i apologize. morgan? >> that's right. so take a look at shares of csx right now. we've got headlines coming out from dow jones that csx and hunter harrison, the long-time railroader who used to run canadian pacific, they have discussed a three-year ceo contract. harrison along with paul who used to be at pershing square has his own fund, mantel ridge, have been reportedly in conversations. i shouldn't say reportedly. they have been talking to csx in a move to potentially put harrison in place as the ceo of this company. the dow also saying that they have not reached a deal.
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excuse me. they have not reached a deal yet over requests for border seats by mandl ridge. today was a deadline for proxy statements to be added ahead of csx's may shareholder meeting. that deadline is extended to 24th. taking look at shares, up more than 30% since we first got these reports in january. back over to you. >> all right, morgan, thank you so much. a story morgan has been reporting and following a couple of weeks once this news broke. hunter harrison really well respected within the industry. if you look at the gains in canadian pacific since alal and ackman had him in that job, it's one of the reasons why i was a huge gain for pershing. >> and it was apparently his position and his idea at pershing square which is why the markets give it credibility at csx and csx has been underper forring their metrics and what they said their metrics could be. moufr, a more resistant target
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whereas canadian pacific is more willing to go along. the question to ask, why if a company just says no and you go away? so that apparently seems to be what's going on here. and i think the stocks reflect a good part of the good news. so we'll see. >> we'll be right back. is it because so many go after it the same way? chasing after short term returns. instead if getting caught up with the crowd, the investment managers at pgim take a long term view, teaming specialized active investing
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welcome back to the "halftime report." hockey fights cancer. private equity and financial execs hitting the ice at madison square garden to raise funds to fight neuroblast open what. it fights only urch children. the play like a pro charity hockey game is in memory of castilano who has raised over $6 million. for more information check out and we certainly hope you will check that out. sue herera has the latest headlines for us. >> here's what's happening at this hour, everyone. a french activist former was convicted of meming migrants enter, travel and stay in france. fine of more than $3,000 but that case is calling attention
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to those who have resisted europe's anti-migrant sentiment by trying to help the refugees. a series of land slides caused by overnight rains has killed at least 12 people on the island of bally. at least three land slides were reported by the national disaster agency and officials v evacuated. emergency spillway will be used this weekend to let storm water out of california's lake oroville. runoff water from the overflowing lake was gushing through the dam's spillway. tiger woods has pulled out of his next two tournaments because of ongoing back problems. his latest comeback lasted for only three tournaments. woods saying on his website doctors have advised him not to play the next two weeks to let his back calm down. we wish him the best. "halftime report" is coming right back. what if we could stop the next epidemic before it happens? what if technology
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it looks to me like this is breaking out to the upside. it's obviously adjusted for the spin of paypal. this is a stock that doesn't have any natural sellers. there's no one that has a lot in it. when you look at things like rsi, you see confirmation. you see new buyers coming in at bigger levels with more money, frankly. i like it. >> see you on other side back here. have a good weekend. >> you, too. thank you. shares of twitter, handful of firms are downgrading the stock.
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all right. time for the blitz. twitter, seven downgrades. six to sells, josh. >> the last couple of times the stock has disappointed on earnings and settled out in the 14s. maybe that's where we're going. as i said yesterday there's no reason to think that, you know, we've seen the worst this company has to offer. it's a giant pizza bomb. and there are so many better out there. >> it pulls the rug out from under itself and me. they announced that the margins are coming down in the data center group, what everybody is
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markets close in about three hours. first and foremost, happy birth day, jim cramer. my second is nvidia, which beat -- >> why don't you move on, okay? >> i did. i moved on from cramer's birthday to you, nvidia. >> i sold that one early, too. greatest hits parade. >> right. josh? >> yes. i agree that he sold it early. oh, my final trade. young brands making a new all-time record high as i speak. to celebrate, i may stop by one of their crown jewels. >> again? >> for the second time today. >> nike, we talked about it a lot over the past few weeks. i own the shares. i don't own enough of them. i may buy some before the end of the day. >> all right. looking at the dow, plus 90.
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citibank, moving higher again. global economy. city looks good. those are my financials. >> good weekend to all of you. >> you, too, scott. >> and all of you, watching wherever you're watching. >> you're looking live inside the white house. we'll bring it to you live the moment it begins. i'm michelle caruso cabrera. >> we are hitting record highs for the dow, nasdaq, s&p 500. we're also keeping an eye, by the way, on shares of apple. that is the magic number that is apple's all-time


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