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tv   Fast Money Halftime Report  CNBC  July 24, 2017 12:00pm-1:00pm EDT

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alphabet will be the story and we will look for any word on other bets, guidance. >> all of that stuff the whole story this earnings season. >> the earnings will roll on all week long. let's get to the half. >> thanks so much. we will get to all of that in a moment. we begin with jared kushner, white house aid presidential son-in-law expected to make a statement from the white house following his private closed door interview with the senate intelligence committee. >> reporter: we don't really know what we are going to hear from him. we are told he will be make ag comment at the white house when he does return from the hill after several hours in front of the senate select committee on intelligence. this has been a highly anticipated meeting.
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this is the highest profile meeting yet between the intelligence committees and the members of the trumpcampaign. he did say this morning that there were four specific meetings that he took as a campaign official as the president's son-in-law with russian officials that were of varying levels of seniority during the course of the campaign and after the election before inauguration. he painted a picture of the campaign as overworked, under staffed and on the receiving end of a dluj of communication not just from officials from russia but from different companies, different other countries and for people that wanted to get a better sense of exactly where the then candidate donald trump stood on issues. it is unclear how deep the probe went. he laid it out in great detail 11 pages in the statement that
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came out. lawmakers have been relatively mum as they have been trickling in and out of the meeting. we will see what jared kushner says when he makes public remarks in just a little bit. >> we will jump back as soon as we see jared kushner. what is a very busy week for investors not only the interview today with the intelligence committee but you have a fed meeting at least 180 companies reporting their earnings. a make it or break it week we are calling it for the fangs. three of the four stocks reporting. google, facebook and amazon later on in the week. it is a critical week for investo investors. erin brown, head of global macro investments at ubs o'connor. let's begin there. there is a lot on the line for a group that investors have loved. >> i think i have been saying it
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is important that the fang stocks deliver. if we have a miss on a stock a lot of optimism seeing strong earnings, best wevent seen since 2011 then you are warranted to be concerned. until that point i think conditions are favorable. i think it is a go ahead for the second half of the year and i think equities look poised to move higher. fangs have to be part of it. >> here is what jim cramer said about what is on the line for this group of stocks. >> this week is going to be a lot of what i call pin action, one falls they all fall. if alphabet does not deliver a great number people will start saying these stocks trade together. even though they have little as coca-cola and mcdonalds. what do you think about that point? look at the stocks. facebook is up 43.5. netflix 52. google at 25.
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it reports after the bell tonight. is that what is at stake for these stocks they better knock it out of the park >> i'm on the other side. we have evidence that this is not true. we had a three sigma event in tech stocks. there was a friday where they just were absolutely slammed out of nowhere and guess what happened. the rest of the market took up the slack. s&p was flat that day. i can think of three or four important industry groups that were green. i don't think that was the case. i can tell you specific quarters where amazon had a good quarter but may have disappointed the street. they whacked off the stock. there was enough happening underneath the surface so that an off quarter from amazon or microsoft is not going to end the bigger trend. it is important that weak stocks keep getting weaker so that you can't just say it is all etfs and indexing.
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look at chipotle. bad news and keep selling down. look at ge. they continue not to want to own that name. the retailers continue to avoid that. there is fundamental research happening and people are deciding this is where i want to be. i think that is a healthy market. you have health care up huge. you have industrials making all time record hiez. i don't think these four names we need to ubsesz over them. >> they are representative of tech and the fact that tech has had such a great year. nasdaq setting records almost dally. goldman thinks tech still works in the second half. is really that much on the line this week for this particular group and in the broader picture the sector itself? >> i think fang is important. even if you have one missed quarter or one bad stat from any of the fang the secular growth stories are still very, very
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strong. that would be a buying opportunity, i think. where can you get 20% to 40% growth in revenues, in earnings, in margin expansion? that is all four of these. i think they are important. they are very representative of the new tech. i think it carries the day in general tech. more important to me this week will be fang and consumer because we do get starbucks, mgm, some of the home builders. consumer is 75% of the economy and that has to continue to hum along. if you notice today what sector is really in the red it is consumer. >> jim's point is not so much based on fundamentals. it's a sentiment story. you get one of these stocks that disappoints and then you have investors questioning. >> i'm saying that has not
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happened. >> i feel like i'm talking to myself because i usually sit over there. >> i think what happened last time around that friday where nvidia and everybody got excited saying growth is over. you were able to rotate into financials. i'm not sure if you are able to do that. >> i love to hear what you have to say. let's say google -- i hope this isn't the case. let's say they come out tonight and they are too conservative with guidance and spook the street and google loses 85 points like immediately, does that money go into treasury bonds or other stocks? >> the economic data is getting better. people want to be long in equities. over the last month we have seen the breadth of the expansion. we saw high beta outperform low
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beta by about four percent. this is the point where people want to get invested. if we get a miss i agree with stephanie i think people will be lined up to buy the tech stories. i think broadly speaking you are going to see rotation into some of the other asset classes like value sectors that have under performed year to date. >> google misses tonight and we are 80 points lower. you are not going to make a judgment until you hear from facebook, until you hear from the rest of the fang names. and then you can make a referendum on them. i go back to where we go to if we rotate out of those names. i think you know this. >> they go in -- >> what are they doing they are looking for momentum. that is where we are right now in this market. you look at tesla. tesla was up four percent. what happened over the weekend
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that tesla is up four percent? it is clear. it is chasing momentum higher and higher. that is the environment we are in right now that doesn't effect long term thesis. >> if google misses where are you going to buy it? >> if google misses google is not a name that i am interested in buying. if facebook misses that is a name that i would buy. there are people making the case for alphabet right here. look at the valuation standpoint they say very compelling. >> you are trending at 19.5 times estimates. you are going 20%. you are seeing margin expansion. paid click could be up 45%. those are huge numbers. the secular story is not going to change from one quarter. they may miss versus high expectations. we have seena lot of that this earnings season 6789 those stocks that have done well you have seen them pull back on okay
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news or good. if that is the case -- >> to your point the companies that have missed are down almost seven percent. the companies that beat are not up seven percent on average. so i have always looked at google as the most realistically valued of the fang names if that's a thing. the bigger point here and i shouldn't have to say this this stage in the game, gamblers and amateurs are putting big trades. professionals react to what happens after earnings and look for opportunities created by emotional people given that so much money these days is being traded -- >> does anybody think nasdaq is too expensive? >> not when you look at what the growth trends are. is it over average yes. can it continueto beat expectatio
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expectations absolutely. broadly speaking i don't think the tech sector is so expensive it prevents you from buying more. >> not to mention the fact if you go back i think maybe carl in the show before us that if you go back to '09 and look at sectors that have really outperformed like real estate and other areas to the point where there is still a good road of catch up that needs to be done from the technology sector which means there is run way ahead. >> that is a function of where you started from. >> over a longer period of time. >> you are also not mentioning -- i will not have a gdp conversation but the contribution is far greater in 2017 than it was in 2013 or 2008. i don't think we correctly know how to measure it.
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is technology expensive? i don't think it is at all. i am identifying the potential for momentum to come out of these names. is it down five percent, seven percent? who knows? you just react to it and at a certain point it finds it. >> since july 4 nasdaq 100 is up almost six percent. that included ten straight up sessions. he says tech is poised for a breakout. welcome back. >> perfect time to bring you into this conversation. talk to us about your thoughts on tech and why it is poised for a break out now. >> there are a couple things. we have to identify our timeframe. s&p tech sector broke out above march 2000 high last week. so i think that is significant from a big picture perspective. still a very strong graph about 90% of sectors above 200 day moving average. the tech sector is continuing to
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trend higher. it's much more than just a handful of tech stocks. if we are talking more tactically we think the setup is not so good. talking about how the nasdaq was not oversold. when you get oversold conditions that is your opportunity to go out and buy the weakness. now we are coming into a period of earnings where the nasdaq is overbought and setup is not as favorable. it just depends on your timeframe here. >> what do you make of the notion that google tonight either sets the table for the rest of the fangs and maybe tech in the large regard or it turns the table over for the space >> well, much like some previous guests were talking about one earnings report doesn't really change the fundamental story it is difficult to say that one
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changes the technical story. we are talking about days in june where some big tech stocks had a big down side reversal day. that led to a bit of pause or consolidation. regardless of what google does i think putting too much emphasis on one trading session is a mistake. if we get a bit of weakness we would probably be looking to buy it after a couple of days. the primary trend and the relative strength of these stocks suggests you want to continue to own them until relative strength rolls over. >> hard to argue with that. appreciate the time. tech is up 23% as a sector year to date. a big list of multinationals reporting including coca-cola, caterpillar, boeing. with the dollar index down eight percent we bring in paul richards for the impact currencies could have certainly in the commentary of what the ceos are saying.
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what a move you had in currency. you must be on this super bowl these moves. >> the toughest thing for the multinationals is hedging. from my experience most are hedging 25% to 30% of what they've got. they are getting the win but are they positioned now? all the multinationals talking about what are we doing with this thing now they will feel confident but looking forward i don't think they are sure about where it is going. >> do you have a feeling where it is going? big investors that i'm sure you had been talking to. >> what it boils down to is the currency market says the dollar is weak. it is anti-trump trade and you have the ecb saying we are in a position to start normalizing because europe is recovering politically and economically. my feeling from here is it is
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about what washington is going to do. in october do they give us a problem with the debt ceiling. does something get done on tax repeal this year on tax repeal it includes tax repatriotuation. think about the boom for apple. it is about washington and actually tax repeal will deliver. >> are you saying the dollar continues to trend lower until we get to these more climatic? >> normally when you see a move like this at a minimum you need consolidation and possibly a mall correction. i am concerned that the markets caught up with the move. i am more in the camp of more consolidation thinking in terms of 114 to 118. dragi will say something. i think he was shackled to say don't say anything wait until september. >> must have been hard given moves we saw in the equity
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markets which got pommelled. those markets went down. >> i think he was struggling with that one. i think he will say something. i think thereat line in the sand is probably around 118. don't disregard that. i think for the dollar is consolidation for the next two months until october and then it is up to washington. what they decide is where the dollar will go. >> you look at some of these companies and the dollar plays a big story into what we are going to hear. what about the way you trade the stocks as a result >> i think the dollar will continue to weaken. do i think it will weaken at the same pace over the last month? absolutely not. can it consolidate in the near term yes. i think the dollar will continue to weaken. i think there are structural head winds for the dollar including dollar diversification which are diversifying outside of the dollar. in addition to the political noise ebbing in the eurozone and starting to heat up here in the
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u.s. and on top of that the convergence, global rate convergence where you are seeing other central banks had not been priced in for higher rates to the same extent of the u.s. as we move to global center banks starting to take away some of the quantitative easing measures in place i think you will see downward pressure on the dollar. you have seen over the last month a fairly significant impact from the dollar sensitivities into equities. you have seen metals and mining sector, energy sector, some of the names which had gotten beaten up until the last month start to outperform. i think it will have pretty significant results probably less so in the second quarter but back 45half of the year you will see into earnings. one other sidenote. we have seen about 125 basis points of easing since the march fomc. that typically lags gdp growth
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by about one year. the impact to that if that continues throughout the next year means we will get about a half a basis point or 15 basis points to second quarter 2008 gdp. does have real impacts to not only earnings but also to growth. i think that is a reason to be more constructive. >> buy multinationals? >> absolutely. this has been a huge head wind from mcdonald's to caterpillar. you talk to these ceos and they actually don't want the dollar to collapse but as long as it doesn't go up like the pace it had been going at this is a very big positive. you will see earnings revisions higher. guidance has already been some of the company's like last week raised numbers mostly because of the currency situation. i like multinationals. >> it's not enough just to own multinationals. if you are outperforming this year it is because you at a
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minimum got equal weight overseas stocks. this is as clear a break out as you are going to see in a country etf broke above 2014 high. had been struggling below that for three years. finally above last week on dollar or euro concerns you saw that index pull back a little bit. we tested the break wroout and is poised to resume the course higher. this is the thing that you can be in that will give you diversification away from u.s. stocks, not completely correlated. i think upside continuing throughout the rest of the year as it has been. >> last word goes to you, paul. consensus regardless of events that could happen the longer term trend for the euro is higher as easing they step away from easing and economies continue to improve. >> i would still like to see an outcome on tax reform. i believe if we get tax reform
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in the u.s. the dollar will really rally as will stocks and financial markets. the longer term is i think that europe is playing a genuine catchup and i think developments on the political side this year are reforming a better euro. long term i think euro is headed back to 130. >> first person we thought of to break this down for us. we appreciate it. >> we are waiting the jared kushner to finish speaking with the senate intelligence committee. it's a closed door selgz. we are told that jared kushner will make a statement from the white house after leaving capitol hill. we will take that live. you can see reporters getting ready on the left-hand side of the screen to catch jared kushner leaving the hill where he will speak momentarily. we will take you there live. here is what else is coming up. >> next up, party foul. goldman sachs cutting big names in the beer industry including
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one stock downgraded to a sell. democrats set to launch their better deal plan. new limits on drug prices. how will pharma stocks react the nasdaq 100 after posting 11 straight days of gains. according to partners two months after such a run the index is up another 7.65%. bcomeno. kensho go to cn.c/ksh the halftime report is back in two minutes. where to get in... where to get out. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.
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i want to take you back to capitol hill and there you see behind the camera we believe is jared kushner, the president's -- that's not jared kushner. the white house aide and president's son-in-law was testifying or at least an interview not really billed as testimony. a closed door interview before the senate intelligence committee on the russia investigation. we knew what the crux of what mr. kushner was going to say given a statement he put out saying he didn't collude with russia. we will likely see him coming down the stairs right there with what look to be a couple of his
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attorneys. there is jared kushner. he is going to make his way back to the white house where we do expect that he is going to make a statement on camera. we are going to take it there live as he gets into a vehicle and makes the short drive down pennsylvania avenue probably over to the white house. he was there for the interview for a couple of hours? >> it was a couple of hours when he left his home this morning. he was smiling and confident. when he was just leaving the hearing room he was smiling and confident, as well. we will wait to see exactly what he says when he comes back to the white house. he is expected to make comments at the stake out camera. at the close of the hearing you had democrats come out and say that what was discussed that was not classified in this interview should be made public. senator joe mansion making that call saying he should also be willing to coif in an open session so is that public can
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hear what this senate committee heard. we will see how kushner responds to those calls from democrats and how he feels about how that interview went today. his closing rarkts in his 11 page brief says he hopes his interview and detail provided can put this issue to rest. >> we saw mr. kushner leaving the hill there and leading him out the door looked to be his attorneys. abbe lowell, one of them long time washington defense attorney and mr. kushner added him as one of his attorneys some months ago. we will see if he is flanked by lawyers at the white house or if he is simply at the podium by himself. thank you so much. we will jump back to you as we need. let's talk about another stock on the move while we wait for the comments from jared kushner. it is constuilation brands getting downgraded. it is from goldman sachs. this is a stock hitting an all-time high. >> it is incredible up 28% year
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to date. this company continues to gain market share and doing a very good job in productivity. at the same time it's not cheap. i think this is more of a valuation call but goldman. beer trends have been declining and that is an issue. so can it continue to grow ten percent earnings growth from here probably not. i would use any pullback. it would have to come down five to ten percent for me to buy it. it is a great company. >> if you want to watch those. >> it's a global brand. it sdlibt distributes more tha beer. look at that. that is obviously having struggles. i think it is completely opposite to the outlook of what can be for cons teilation.
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the belief is that millennials don't drink as much beer as maybe prior generations. >> you have a flawless uptrend and now it is rolling to the bottom. i think you can use a 50-day moving average so taking about 5% or 6% risk. let that trail the stock higher. if you want reason to think that that uptrend is over i don't think you will get it. it is price option. so i think it is a great company. it's not cheap. that hasn't mattered for a while. it has not been cheap. i think the wine trend is enough to get them through to when beer picks up or at least comps get easier. >> the stock has been on fire up 28% year to date. you are buying a bit of another stock. that is e bay. after earnings. this happened late last week. >> it was a wild day on friday. opened up down almost five
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percent. it's a little weak today. i added to it again today. i think the story about core market place continues to show improvement. they did see a one percentage point improvement in market place growth. i think that that is the reason i own it. stub hub was the disappointment. that is your wildcard. they can monetize that. you want to see market place do better. i think the stock was down. margins were a little soft. i think the story is attractive especially in light of some of these pricier technology stocks. this one is pretty cheap. >> let's go to sue herera. >> thanks so much. here is what is happening at this hour. a chainsaw wielder loaner who mostly lived in the woods stormed into an insurance office in a swinsz town wounding two.
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police put the city in lockdown as they launched a man hunt for the suspect who they have now identified. a florida man accused of driving a tractor-trailer where at least ten undocumented immigrants died on sunday appearing in court. james matthew bradley jr. was brought into a federal courthouse in san antonio. authorities say it was a human smuggling operation. flash flooding in arizona trapping 17 hikers outside of tucson. the video from the local sheriff's department shows the rescue of one of those hikers. eight were rescued by helicopter while rescuers hiked to the other nine. and the world's oldest commissioned war ship that is still afloat returning to boston's waters after two years of restoration work. the uss constitution is the last remaining survivor of six ships commissioned by president george washington. that's the news update this hour. >> we are also watching shares of pandora today.
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those shares are higher after partners announced that they have taken a stake in the company. i am wondering what you think of it. they tell their investors i'm told from sources i have seen from a source the part of their investor letter that talks about this. they say they got in near lows in early june. they had been long time liberty bulls. it's not an activist position. the event has happened. they have the massive investment from sirius xm. now it is all about the execution. so i guess jana wants to be involved on the ride, along for the ride on that. >> i think they believe probably that the floor has been put in place for pandora. i'm not necessarily sure it is a name burned me multiple times. as you mentioned they have the investment and now it is a proven strategy. it is a proven story and what
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does that come in the form of? it comes in the form of multiple earnings and reporting good quarters, accelerating growth. we have not seen that to date. listen, the visibility for them might be good. for me it is more of a nimble type of trader i'm not ready to step in. >> it is clear they are betting on the execution now of the -- they have a new ceo and sirius xm money and liberty behind that. they are betting on the execution of liberty which they have done before in other big names. tried and true performers. >> pandora is more of one of these interesting situation wheres it is a great product and people love it but not a great business to be in. you could have said that about xm sirius for a great number of years until they merged and got cost under control. a lot of things fell into place. that is something that could happen with pandora. if you are in this name you have
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to bet that the liberty people will ultimately figure out what are the right partnerships and pieces of the puzzle that are missing because people love the service. i love the service. >> market is trying to figure out where it wants to be on this name with another big name taking a position. stock was up like 4.5% and then up 1%. now it is getting back. it is up about 2%. we will take a quick break and then - hey. pass please. i'm here to fix the elevator. nothing's wrong with the elevator. right. but you want to fix it. right. so who sent you? new guy. what new guy? watson. my analysis of sensor and maintenance data indicates elevator 3 will malfunction in 2 days. there you go. you still need a pass.
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good day. coming up on power lunch hope you will join us. democratic party leaders set to speak at the top of the hour laying out their new agenda. is it the right formula to jump start our economy? we'll discuss that plus a bold call on blue apron. rbc say tg could rally 30%. he will join us to make his case. and the big three german auto makers accused of operating a cartel and colluding for years. what it could mean for the industry. that and much more ahead on power lunch. meantime, scott, back to you. >> want to take you back to the live shot of the white house and bring you up to date on what we are all waiting for.
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that is a statement from jared kushner following his interview. we are told that statement will be moved back to 1:15 p.m. eastern time. you will still see it. you will see it live during power lunch. 1:15 eastern jared kushner expected to speak at that podium on the left-hand side of your screen. pete, what do you got? >> scientific gaming. it's pretty interesting company. in february there was huge call buying going out to january. they are going 11 months out and bought the january calls f. they are selling those for over $11 a share on the options and rolling out even further buying 11,000 of the january 35 calls. so very aggressive on somebody who was smart. they were right. stock moved from $20 to $32.
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those calls have absolutely exploded in the upside. that particular trader seems to be want to be involved for another run. they have until january for that to come through. i am in january. i like it. i like to follow when they are coming after something that they have had success with. that is a really interesting trade. one of the biggest trades of the day. >> you like generally staying in a trade that long. january is a long way off. >> i don't normally. but somebody here had patience when they were buying the january. when somebody is right i will tend to want to be with them y. will be in this for a couple of months. i love what we are seeing the success that we have seen out of this trade so far the same person, the same entity is going to be in there for a little while longer. i want to be in there with them. >> thanks. democrats taking aim at pricing.
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what will that mean for bio tech pete will stick with us. we'll do that next on halftime. we created the ripple: the doughnut in a doughnut in a doughnut. right away, it was a success. i mean, it really took off. what people don't know is that it all started with points from my chase ink card. i bought the ingredients, utensils, even custom donut cutters. wow! all with 80,000 points. what will you create with your points? learn more about the ink business preferred card. hthis bad boy is a mobile trading desk so that i can take my trading platform wherever i go.
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welcome back. president trump speaking about health care. that will take place at 3:15. at 1:00 p.m. in about 15 minutes the democratic leadership is talking about their own plan to better deal plan which will include a plan to lower drug prices. >> the democrats drug pricing plan essentially would do three things according to documents we have seen, create an independent price gaujing enforcer to oversea drug price hikes and give pow toor negotiate directly and require drug makers planning to raise prices by a certain amount to provide justification. that sounds familiar many parts of the plan are ones we have heard before including from hillary clinton in the tweet that took five percent off bio tech stocks in the fall of 2015 contributing to bursting of the bubble. investors haven't been too spooked by democrats' plans
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because republicans haven't been on board with these ideas particularly giving the power to negotiate. donald trump hinted at that. >> they say like 300 billion could be saved if we bid enough. we don't do it. why? because of the drug companies, folks. you take a look at the drug companies. take a look at johnson & johnson. take a look at pfizer. they are leaving us and not doing anything. don't dare negotiate drugs. excuse me? >> he became president trump's moves have been anything but heavy handed contributing to bio tech stocks recovery. the democrats plan focuses on price hikes on generic drugs. also hones in on biggest costs to medicare. drugs that could come under fire if they follow historical patterns include lyrica under the stipulations laid out.
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>> the whole industry is at the $120 billion a year. when he says 300 billion that is being made up. >> no time period mentioned. >> the bottom line is the stocks since trump was elected president the xpi is up 40%. ibb is up 24%. two of the major etfs. year to date they have had tremendous runs. >> do you know why because everyone knows this is an industry that is very good at playing politics. number two, the democrats' plan even if they had something remotely close to the votes which they never will, they don't know how to sell this to the public at all to get the house of reps. but they don't know how to draw this line from this is what the drugs cost. this is why your premiums are what they are. they are unable to communicate that. that is why we are talking about
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premiums instead of cost. >> you have to give credit to the fundamentals. johnson & johnson is a -- >> health care is off the chart. >> just got downgraded to sell last week by two different places. >> silly given that the results were quite good and numbers were going higher. stock is not exactly expensive. abbott labs just beat and raised. hmos will post very good numbers. medtech in general, as well. maybe there are some question marks regarding pharmaceutical companies but there are plenty of places where fundamentals are strong in health care. >> the moves in the stocks would suggest forget pricing noise and focus on fundamentals that you just laid out. >> that has been paying attention to tweets from hillary or trump has been a total waste of time. >> buying opportunities. >> probably cost you money if you took them literally. >> this is indicative of the broader market sentiment around any policy. people in the beginning of the year had belief that we could
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get some type of policy done. now i think there is displeef so people are willing to discount any political noise or twiets tweets and use them as buying opportunities. >> much ado about nothing? >> yeah. i would agree with everybody. you pointed out the idea is that the fundamental stories are in tact. because of that fact when you look at most companies you are looking at levels that are not outrageous. you are looking at companies that fundamentally very strong and might be certain drugs for each company. i don't think that is something that will be an incredible effect like you said. it's created buying opportunities. we have all talked about this on the desk. i know josh has been talking for quite some time. you take a look at gilliad. nice move from 64 to 74. look at -- these names are really on the move and recovering very nicely. i think it is because people have focussed back on the
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companies themselves and the fundamentals of those companies. >> thank you. thanks for being here. we'll see you back soon. we'll see what they say this afternoon and if there is immediate stock reaction i know we earnings towatch. next the trades. number of stocks are moving as a result of what is happening at those companies. we have more on the busiest week of earnings season thus far. the most important stocks to watch coming up next.
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time for "the blitz. hasbro is under pressure after reporting its smallest sales beat in 2 1/2 years. under pressure is an understatement, down 10% >> this was a stock that looked incredible going in. hence my earlier point if you're a professional and interested in this name or you have a position and you were looking for an opportunity, today provides that opportunity. what i would do is wait to see how that candle finishes up today. see if buyers come in. i'm not looking to buy it, but if you are, today you might have gotten a gift. >> you know what i would do? >> what? >> watch "mad money" at 6:00 tonight. ceo of hasbro on with jim. >> giddy-up.
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>> if i were an investor, that's what i would do. halliburton shares lower after giving cautious rig count guidance >> earnings decent but the problem is in terms of services you're seeing a tapping on the brakes and that's what the halliburton ceo talked about on the call today both halliburton and schlumberger are challenged, trading at the lower end of their ranges for the year. i think igts a matter of time before they come out of the malaise they're in right now there are wetter high data energy names to play >> stanley black & decker, raised their guidance. why is the stock down 2.5% >> at one point it was down 5% so i bought, actually. these are the opportunities we've been talking about when earnings reactions are silly the stock is up 23% year to date so the expectations were high for sure but this company just posted 8% organic growth in tools in storage. they posted 9% organic growth in industrial, 2% on the other security side. margins were okay, not great >> didn't illinois tool miss
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>> yeah, they did. >> surprising to some. maybe this stock is down in sympathy >> i think people thought there would be a larger margin expansion in the tools business. they had good margins but down in the tools piece and the stock's down 5%. to me seems overdone i've been buying >> industrials coming off their worst week in a month, worst performing sector last week. sounds to me you would like this space given your comments near the top of the show. >> absolutely. i think you stay long the industrials. up about 10% year to date, a little over that keeping up with the s&p but not really outperforming that said, when you look at the sectors of the economy that are really starting to go higher, im's the industrial sector, the cap ex-sector, manufacturing sector i think this is a great opportunity. down about 1.25% off the highs and i think that right now you should be loading up and buying. the flash pmis that came out
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this morning, those were good and i think also substantiate the view >> pete, i've tried to kill you off erl yr but -- >> it's okay, man. >> you're still there, they told me >> i'm hanging out yeah >> the whole group is under pressure >> dragging them all down. the biggest thing to take away, foot locker, go back to may when they had margin issues themselves the real thing to focus on here is they're peoplely going to launch e-commerce. are you kidding me it's 2017 and they want to compete? that's the problem >> they told me you're really done now, okay >> yeah. i am done now. i'll have a great afternoon. see you next week. >> see you back here soon. >> okay. >> final trade after the break
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well come back what a big week for earnings take a look at some of the names that will be reporting in the next four days after tonight with alphabet tick kicking things off, caterpillar, mcdonald's, general motors, at&t, facebook coca-co coca-cola. some real blue chip company, some big oil names as well you own so many of these names
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>> i do. >> at least ten i'm told one was upgraded today, caterpillar. i'm not happy about them the expectations are high for cat. everybody knows they're beat, they're going to raise, just magnitude is the biggest question pip think -- i'm stem cell involved in the name, almost thought about trimming some of it, but i like this is the trough year in terms of earnings to aaron's point about industrial is think they benefit from the global macro getting better and the dollar. we'll see how they act tomorrow. that was a real shocker. >> somebody give me something on mcdonald's tomorrow. anyone >> high expectations >> yeah. >> for good reason it's like 152. >> yeah. easterbrook has done a good job restruck which aring the company and the stores and getting the traffic in at a tough time but high expectations. >> had post-earnings hiccups and the stock has come back in the same day i think two out of last three-quarters you saw that gap down open and by the time they're cleaning up the conference call this thing is flat or higher
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been a very tough stock to bet against going into the numbers >> three-mlike 3m, speak of industrials? >> i'm in deere, not 3m. i like aerospace and defense better than 3m >> like a defensive industrial so it depends where you think the macro is if you think the global environment is getting better, this one will lag the other industrials but it is a quality company. >> speaking of defense, united technologies, like >> like. like the whole space i think lmt looks better, raytheon looks better. >> northrop grumman. >> how hard is it to find a bad chart? look at the itas -- >> traded to another high today. >> the utf for the whole aerospace and defense sector, hard to find a chart you don't like >> final trades. josh >> i've been talking about this for the last two weeks and i feel like people aren't listening to me. this is -- this is the electric data play, not in tesla. okay >> take a hint
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stephanie. >> never >> hg supply, down 24% year to date pip think this company is a take ow. >> erin. >> emerging markets, em, if you think the dollar will remain weak, e mrmging markets. >> bough more morgan stanley playing for 50 >> "power lunch" starts now. i'm melissa lee. jared kushner at the white house about to make a statement act his meeting and his sbrabs with russians during the election campaign as leaders of the democratic party get ready in just moments from now to lay out what they're calling their better deal agenda is it the right deal to get the economy a boost? the car cartel, reports saying germany's three biggest automakers have been colluded for years. antitrust regulators now investigating what this could mean for the industry. "power lunch" starts right now


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