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tv   Fast Money Halftime Report  CNBC  January 8, 2018 12:00pm-1:00pm EST

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chip weights, ha md and nvidia continue to be among the gainers. >> and qualcomm, interesting to see what they say tomorrow. >> an incredibly busy week with the inflation data that rick referenced and, of course, the banker earnings that are coming our way on friday. let's get over to the judge back at hq and "the half. ♪ well, it's one for the money and two for the show and three to get ready ♪ >> welcome i'm scott wapner industrial strength real, why the group is still surging and if truly is the best place for your money with us for the hour today, joe terranova, stephanie link, pete najarian and jim cramer. he's the host of cnbc's "mad money. let's begin with the markets stocks are slightly lower, kind of mixed, but still posting their best start to the year since '06, and much of that is on the back of big name industrial stocks, and, jim, it just continues today cat gets upgraded and uts, barron's is positive on utx.
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>> i'm going to defer to one of our panelist, stephanie long, behind this move all the way, people selling the stocks even down to the caterpillar sell by goldman sachs saying this is your opportunity i hope you do talk emerson this is a remarkable time, and there are very few people who understood it was about to happen and there's a stock shortage of machinery companies. we have all the companies that you want in biotech. we do not have enough machinery and cyclical companies that's a big part of this. >> is this, steph, the way to really capitalize on what's happening? not only with taxes, perhaps infrastructure, but the synchronized global recovery that we've been noting every day. >> that's why you want to own industrials, when you think the global economies are improving and when the dollar has come back and been pretty tame, when end markets are actually strengthening and commodities are stabilizing and commodities are moving up across the board that's when you want to have a whole hodgepodge of various different industrials. they have had a nice move, scott, very, very strong moves
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caterpillar was up 76% last year on top of a 50% year the yore before. >> jpmorgan knows that they know it and know they missed it but they still suggest that there's a lot more room to run and this is really at the heart of the conversation you're having now. >> you can make a case and i've said it all along, make a case that caterpillar that is $10 to $15 worth of earnings power. >> whoa. >> instead of looking at it at 25 times forward estimates it's at 16 times if you believe the earnings power but you have to have a lot of conviction that the end markets, like mining and oil and gas rim proving. i would say that there's plenty of industrials to still own. fedex still trades at a very reasonable multiple, right emerson is completely underearning i think mayor mar jibs have upside dow/dupont, that has lagged since the third quarter. just last week, i added to that position, not my largest chemical position so i think you pick your spots. >> jimmy, you've been buying
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honeywell. dan cote just saying i can do even better than my predecessor and i think the aerospace play, how many times can we buy boeing up 10 on friday? we need more aerospace plays by the way, the united technologies note, every single cylinder is hitting at united technologies greg hayes, and can i just see this gear turbo fan had been the issue. no more. >> this note, pete, on utx is a buy at goldman sachs, reaches positive second derivative in 2018 they just love this company. >> and you look at -- and the fact that -- how about the idea that some of these companies that we're talking about not boeing, some of the companies have actually lagged a little bit and have a little bit of room to make up to the upside i think. some of the names in the industrial space >> and i'll give you another one that got an upgrade today. ups. you brought up fedex. >> i'm still waiting for the activists to surface there. >> and they will
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you look at the strength in terms of volume and dollars and the size going all the way to 2021 there's a lot of different reasons in that note why they have gotten so bullish on a company like ups as well. >> joe >> listen, you have to agree with everything that everyone has said right now and i don't think infrastructure is priced in it's all about the dollar and synchronized global growth and a lot has to do with ge for many, many years being the portfolio favorite and now the ball is being spread around the field to the entire sector because the money is coming out of ge and it's going into all these other places. >> you know it's elvis' birthday today. >> hence the opening song. >> what is this a rincheference? if i did it, this is what we need to do i think if i did it was someone who went to the bills game, isn't that o.j., if i did it is this a reference to o.j.? i mean, holy cow that's been, i don't know. >> you made the argument on ge, right.
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it's coming off its -- its best week since 2016. >> yeah. >> 6%, yeah. >> we were together almost a week ago on "squawk on the street" where you said not yet it's too early. >> this is a report and you have to wait to see what john flannery says. he has got the tailwind because it's become a bit of an oil company, oil company with a healthcare kicker. >> for now, until they sell baker hughes. >> okay. >> and then you have power gen and unless you see 4%, 5% gdp growth next year, if you see, that power gen will come back. if you do not see that kind of growth in gdp power gen will not come back and at 75% of their ebitda big >> right now here ge, is it a buy yet or no? jim, you made the argument no. >> i want to see what he says. i just want to see what he says because tuce is saying the cash flow is far worse.
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really, i wrote it down because i believed what jim immelt said. we all know as portfolio managers, if the ceo says it's great that means nothing if you think it's great it's on you. i got it wrong but i do want to see what he says about the break-up. >> pete? >> the one thing that stood out about all these notes and i'll get back to ge every single one of them mentioned one thing, tax reform not being prices in and revisions going forward. time and time again we've talked about is it all priced in? so many people came on here and said tax reform is priced in, guys you guys are missing it. no, we didn't. it's been the correct call it's not been priced in. >> i go back to what david tepper told me last week, and, jim, i want your opinion on this, too, and it really speaks to where we are in the market right now relative to tax reform and earnings expectations which maybe aren't even factored in close enough which, jim, you've also made the arguments that the numbers aren't high enough explain to me where this market is rich. it's not rich with the tax thing that changed earnings
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projections and earnings forecasts going up and interest rates where they are, how is this market expensive? i don't see the overvaluation? world growth is higher there's nine flakes, the market coming into this year doesn't look rich. in fact, it looks almost as cheap as coming into last year the market can't go down until the bond market gets hit it's amazing where interest rates are. >> look, i don't want to say i worship this, but i've always liked tepper from the day he screamed at me on the trading desk of fixed income telling me what an idiot was in front of a lot of people. also used a few expletives i've loved him a rich hedge fund game, only one willing to come on saying it's okay, when you've made money, a big believer that what he said is right and what pete said, you know, in terms of last year this time, when you look at the numbers on the 2 is% tax rate versus a 30%, 40 tax rate. >> yeah. >> i really think that what you've got here sin expensive stocks i do want -- i mean, if you chase cat right here, that's a mistake. i would rather do the emerson.
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>> i agree. >> you said it exactly how i've been thinking. the tepper commentary was, hey, if you like the market, it's okay. >> no hedge. >> it's not as expensive as people are trying to make it out to be. there are plenty of people who have come on the network over the last many weeks, stocks are way too rich, historical standards, blah, blah, blah. >> tepper has confidence in himself. this is really a psychological call tepper is not one of those people who hedges. why? because there are times when he doesn't like the market and the times when he does, and i think he is the most rigorous thinker of the big rich helping fund managers that there is. >> there are pockets of the market that are expensive. look at staples and utilities and even reits are expensive and fairly valued but that's why you've seen over the last couple of months the cyclical stocks and financials and industrials and materials have done as well and starting off this year energy has done quite nicely we'll see how that pans out. that is a sector that is still
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very unloved, and it's still a show-me sector, but i think that's where your real opportunity is for sure. >> he makes the argument to me, tepper does, like a facebook, for example. should be held to 2020, the earnings that's cheap, relative to like coca-cola, kellogg's, things like that. >> tremendous international opportunity as well for something like facebook. i think the problem is the market feels expensive i don't know that it is expense. >> it's because of what so many people have come on television and told you about the markets here every day here, wow, these things are so expensive. it is if you're not looking and focusing on where you're seeing growth microsoft, could have made arguments back two years ago it looks a little rich and they have had growth and had it in the cloud and you've got to revalue these names in many cases. >> if earnings go up by let's say ten bucks and interest rates don't move, the market is not expensive. >> no, it's not. >> now look at facebook, this piece by jpmorgan today, it is selling at 21 times gap, 21 times 2019 gap numbers, not
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phony numbers. now you may think that twitter is i think -- i think twitter is okay it's expensive, but snap sells at 11 times sales. i mean, that's rich, so there are some stocks that are rich. >> i hit facebook for a second fbr makes it their top pick for 2018. >> i actually doubled my position last week i made it on up of my largest -- >> you did >> it's lagged relative to the f.a.n.g.s and the digital ad data points that we're getting are insane these companies are taking such huge share, facebook and google, taking such digital share, and i think the numbers are actually going higher, okay, "x" all the tax and everything else, the fundamentals are quite strong and what i like about facebook is that they actually already gave you what their op-ex number is, their expenses are going to be this year so i think they front loaded expenses and expectations are fairly muted
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going into the quarter on that basis as well and can you see positive operating leverage this year. >> where has been the growth, in instagram where they are dominating. >> killing the space. >> do you see the number of users they think they will add >> and zuckerberg and some of the original founders have gotten much more proactive about some of the issues going on and how they will have to regulate things going forward so they are addressing that right in front of everybody, but also video, scott. we keep talking about that, but it's not talked about enough that is had a portion i think of facebook that is where the extreme growth really will come from, and when you get that along with original content, wow, suddenly netflix, i know they are paying 7 billion. these guys are going to pay a billion. they can afford to pay a lot more to get the video cop tent. >> i confused all of you and myself fbn securities, not fbr. >> what would you pay for facebook if zuckerberg actually fixes this did you see that comment i've got to fix facebook. >> they say the stock typically runs up into the q1 earnings report which doesn't come for
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another few weeks. they don't suggest it will run up into the earnings report hand lay an egg the following days afterwards but this seasonally is typically a good time for facebook. >> it should be, and, again, it's got the quarterly benefit of the u.s. dollar being down 4% from 2016. i don't think it will be as complicated a quarter as some as we've talked about before. financials, do you have one-time write-downs. you'll hear a lot of that in this quarter there's complications there. listen, facebook is the modern day land line telephone, that's what it is. >> people don't understand that they can make forecasts raising numbers and dollar that could be done for almost every company. raising numbers dollar. >> at the same time barron's over the weekend asks is it time to de-f.a.n.g. your portfolio. they shay after such a red hot growth investors may now want to consider reducing their exposureses to f.a.n.g., reball elsewhere. >> scott, at the end of last
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year we heard continually from everyone, okay -- >> i'm trying to get eli apple i thought it was apple. >> eli apple. >> trying to get the quote honestly, i'm sorry, i thought obj was calling about apple. it's apple, amazon and it's alibaba. sorry about that, but i just though if obj said something about apple i had to say something immediately. no, i have the special app that schefter has i thought it was apple it's my bad. won't happen again. >> the thing that's obvious in 2018 so far is that the end of year consensus suggestions of what you needed to do in the rotation trade, they have been totally wrong so far. >> yes. >> the rotation trade was sell tech, go russell that was supposed to be the big winner russell of all the major indices. >> that will last about two weeks. >> that's right. >> but it's brought up all the time, right? >> everyone once again in 2018,
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they are offsides. >> who knew about the depreciation change? >> that's so good for gdp growth that's what is so important about that. >> and you've got an interesting thing when you break down f.a.n.g. itself, facebook very inexpensive and google very inexing pensive and the middle part of that it's different. >> netflix. >> and you're an amazon gal and you've been right on the fundamental gal gets into amazon, the most impressive move i've ever seen. >> isn't that incredible i'm raising numbers, like intraday, guys using 1,300, 1,400, it's incredible, but i think -- i think the holiday season was huge. >> absolutely. >> and storm, storms helped them so much. who wants to go out in a canada goose jacket i have them on tomorrow exclusively. how do you like that ing. >> seriously though, if you think, you know, that the environment is set up for, you
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know, global growth to continue. >> right. >> the repatriation thing, buybacks f.a.n.g.s will perform how does it underperform in that environment? >> may i suggest that it the end needs to be changed out. it really has to be nvidia after jenson wong's speech where he's talking about chips it's not possible that you have billionsch transistors on but i think autonomous driving is so huge. >> nvidia ripped at the keynote. >> yeah. >> this guy is incredible, organize state. >> had such great runs. >> nvidia marked time between -- went to 214 on a better than expected quarter and went to 189 where i renamed my dog nvidia to get some mojo and, boom. got rid of all of the jokers and now it's strong hands, and we've seen this time and again. >> if somebody came out and upgraded nvidia today we'd probably throw shade all over
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them hand laugh tat. >> no, we wouldn't. >> why would we? >> what's the difference between that and caterpillar >> it's about -- listen, you said before. it's about growth. that's what right now companies -- >> yes. >> tesla last week tes larks you get a negative news story the stock is trading 335 today. >> was that unbelievable >> that's an interpretation -- the misinterpretation of tesla and i'll stay with this forever. it is not a car company and every time we hear -- >> it's a software company. >> it's a tech company. >> it's a tech company. >> come on, man. it's a car company. >> no, it's not. >> that is what everybody wants to say. >> throw the paper in the air. why is it up then, you explain to me? >> they make cars and they sell cars. >> they can't sell enough or make enough cars. >> second quarter could be better, that was the shift the bullets hung on. >> under armour is a tech company, too, they don't make athletic apparel. >> they are -- hold on they are a tech company. you know what their problem is, their tech company aspect of
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them is shoes, and what are they not making right now compared to nike and add das, shoes. >> so true sorry about that. >> how about the amount of miles that tesla has already driven. the more miles that you are driving your software gets smarter and smarter for autonomous driving they are a software company. >> that means waymo is going to win which is affiliated with intel and remember they are speaking going right against jenson wong. >> tesla is not selling their software to ford or general motors they are selling cars to people. >> absolutely. >> what's the value -- the future value of tesla is based on software. the intelligence that it's understanding from driving those miles. that's the value of that company. >> that's nvidia, that's who their partner is why do you let facts get in the way of the story i mean, that's you all over. >> i just like a good debate. >> and it's waymo, all the way. >> is hundred%. >> waymo is huge waymo is based on intel. >> give gene munster some
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credit, one of the first guys out there that started this whole idea i picked pup on it right away and liked what i was hearing software company that plays into the hardware space. >> let me go right back at you. >> you didn't like paypal at 38. >> can't deliver cars, that's why. it's not a car company it's a software company. >> i like that >> i can't explain it. we're trying to explain it we're not trying to say buy it trying to explain why it went up after horrible news. >> horrible news. >> i think you have to explain things. >> 5% today. >> but many of the f.a.n.g. names have very strong fundamentals we've talked about timelessly or endlessly, full, the valuations you can actually go -- you can explain them and you can get comfortable with a couple of them you don't want to get comfortable with amazon, so, fine. >> you've won on that one. >> all right but look at facebook or look at going >> how about the cash position of google. >> it's not just a f.a.n.g. world and last year for most of the year it was a f.a.n.g. world, a growth year, technology year and this year it's spread out and that's really important. f.a.n.g. can work and one of the
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reasons why i doubled my position in facebook because i think the fundamentals are strong >> doesn't have to put the whole nasdaq on its back but at the same time i think you're seeing a broadening of some of the cyclicals and cat lar has 13 buys and has 14 holds and sells on them so i would expect some of the fundamentals at cyclicals continue to improve there's probably some chasing going on as well. >> how many buys are on emerson? >> very few, very few. >> how much coverage >> maybe three and two of them are right here. >> they need to execute but that's what i like right. look, i bought caterpillar when they were three buys and yielding 5% and you have to do the same thing with emerson. >> when it was in the 70s, cutting numbers, cutting numbers. >> the bears are all over it, too. they were growling saying this thing is going to 50 from 70. >> let's talk about apple. a group of large investors calling on that company to address how the iphone is negatively impacting children. a letter has been sent to the company following the action
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leslie picker joins us with more. >> joana partners is known for its role as an activist investors, a type of hedge fund known to initiate buy pacs, change ceos and stuff like that, now they are delving into social activism, pushing companies to make changes that they see as bet per for society. their first public target is apple. as you mentioned, saying that the company's ubiquity has produced unintended negative consequences for children, including increased risks of depression citing several studies there. apple already provides tools that allows parents to restrict what their kids do on their phones, but they believe they should be doing more to improve society: they announced also they are launching a new impact investing firm along the same vain in order to target companies and push to improve issues relating to government and social governments or esg. it's another stage in esg that's gradually become a greater
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interest to hedge fund lps, particularly pension funds like calsters most studies suggest esg engagement does help to some degree a recent one from the university of notre dame show these campaigns can boost sales at companies that already have, and this is the key, that already have good esg track records, but it doesn't always help profitability. so what jon ha is doing here is something between philanthropy and charity and return-driven investing but it helps that goodwill among lps in its traditional activist funds scott? >> les, stay with us. >> first of all, i literally while you were talking went from settings to general to restrictions apple's done amazing things to try to make it so parents are not alone. that's right apple is probably the most sensitive to this stuff versus say a facebook or a google or snap which is like the equivalent of captain morgan for kids it's like, wow, i really want to
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get with the captain what i would like to know, leslie jona has been involved before, heavily involved with walgreens. at the same time involves's larry merloe pulled out. how long did it take them to get cigarettes out begin and like the fact this mentioned mental health leslie, how much did they do >> there was a shareholder company to get rid of cigarettes at walgreens and jona did not par tis in that campaign, at least publicly all they have done is on the "g" side, nothing environmentally related to environmental or publicly related to social until now with what we're seeing with apple. this is a new area for them happened new in the word of activist investing overhaul. >> they make it clear, too they are not trying to replace the role that parents should play in this whole argument. they just want apple to do more.
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>> well, i think apple -- you know, apple versus the others is very sensitive yes. everyone should do more. mental health is a big issue and addiction is a big issue for electronics, a huge issue. probably 1 in 10 of the troubled kids right now are in addiction. i'm glad they call attention to it but even if they don't have a position in facebook, wouldn't it be great -- >> you raise great questions and those are questions that i'll ask barry rosenstein tomorrow. that's a good bookie. >> barry and penner along with calsters to come on, too, to talk about why they made this investment why not google, why not facebook android is a much larger platform than -- than ios. >> i like act vision bliz hard but is call of duty necessarily something we want our kids to play i mean, do we go after activism blizzard i don't know there's a lot of people to go after. >> are we thinking that these
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are companies -- >> what's wrong with the companies. >> >> i think apple has probably been more responsible than most. look at this, you can look in everything, siri, block every single program look at this this is your parent's best friend. >> do they need further regulation >> well, i think that regulation and apple has done this on cell phones and driving you should go to jail if you are using your cell phone when you drive. i know that sprint what is in favor of that for a while. i think social responsible is all good, mental is all good and it should be widespread and picking on apple seemed particularly punitive. >> we'll get more into it tomorrow more sure on this program with jona and calsters, cnbc exclusive interview. >> you know what it is without commercials. >> is that a plan. like to let it roll. >> who is same-sex. >> the brokerage one stock says is ready to pop and become a clear winner in that group is that cool >> very good
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i thought maybe after they kicked -- before they ikd the ext -- they kicked the extra point they don't go to commercial. >> too much americaals in the nfl. >> our data partners at kensho say the rally is due to roll at least until the end of the quarter. since 1980 it went up the first week of the year, the run continues. the nasdaq up an average of 6.90% in q1. almost 4% for the s&p and dow after a good first week. for more go to cnbc.com/kensho "the halftime report" with scott wapner and traders is back in two minutes. ♪
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hello, everybody i'm sue herera here's your cnbc news update at this hour. pro-government demonstrations continuing in several iranian towns today. it's in response to numerous anti-government rallies protesting food price hikes recently those protests were the largest seen in iran since the disputed 2009 presidential election the libyan coast guard rescuing nearly 140 migrants off the libyan coast this morning after they were discovered stranded on a rubber boat. libya's navy earlier said it had rescued 272 my grants from two vessels in the mediterranean sea. a colorado developer has purchased atlantic city's former rebel casino for about $200 million. plans to reopen it as the ocean
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resort casino this summer. that casino cost about $2.4 billion to build back in 2012, and it closed after being open for just two years and a new study finds exercise reduces the risk of heart failure caused by a sedentary lifestyle, but researchers say it took two years of aerobic exercise four to five times a week to see results. those who stuck to this routine were more fit than those who did yoga and balance training. you're up to date. that's the news update this hour scotty, back to you. >> sue, thanks so much >> celgene shares are on the move announcing the acquisition of impact sales. cnbc's meg tirrell with all the latest hey, meg >> reporter: hey, scott. >> happy new year. >> happy new year to you. >> you guys kick off this
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conference, a tradition, celgene monday morning and you gave us the only deal news we saw over the weekend. $1.1 billion acquisition of this private biotech company that not many people knew tell us why this makes sense. >> first of all, it's a hematology play. >> second, it's a highly unmedical need-mile fibrosis is a rare cancer and at the same time up until now there's been one fda-approved drug ever for the disease. the product that we acquired through the impact biomedicine deal actually works for patients who have progressed where they have no other therapeutic options for the disease, and it also rescues patients who get the standard of care so we think we've got a very nice market to come into. highly underserved it's a hematology play and, of course, that's celgene >> the deal is poe tonksly up to $6 billion more including sale
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goals. there were some concerns earlier with this. is there a risk it doesn't get through the fda? >> there's always a risk a medicine doesn't get through the fda. as best as we can tell that is de-risked asset that's ready to file the mda will come together by celgene and impact and look to file the side effect that you're talking about is a disease or a condition which is a b1 thymine deficiency in a database with 900 patients the indent dense of this is less than 1% show back to benefit risk when you have no other therapeutic options and patients are dying from the cancer this, very manageable but now quite rare side effect which is what led the early development to pause, is something that we feel we fully understand and we look forward to bring this medicine to not only patients in the u.s. but around the world.
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>> some market watchers are looking at this acquisition saying celgene has hey lost partners with many so of the hottest young biotech companies out there and you chose a private company. you didn't buy a bluebird bio or another public biotech company that you're partnered with are you still looking? >> we're always looking. >> i've said many times and will shay it again today. you're goal is to build a preeminent biotech company and we follow science wherever it takes us and we look to greet value for patients all over the world. in our wheelhouse of hematology, you mentioned bluebird bio and you mentioned juppo and for lymphoma patients, bluebird bio, this remarkable approach to myeloma and we don't necessarily need to acquire partners we could work together and that's actually had a model that has brought partnerships to us in the context of capital
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deployment we're looking at all the time building and aggressively growing the company. the impact dial is for a molecule working for a high medical deed in hematology. >> up last question for you. your executive chairman, politico working last week, interested in a potential senate run. is he running for congress >> bob is a dear friend and we've worked together a long time the two of us are very happy where celgene is tailed and have a lot of work to do and if you want to talk to bob about his political aspirations, best to talk to him, not me. >> we'll see him roaming around. >> thanks so much for joining us. >> scott, a lot more guests coming up coming up next on "power lunch." back to you. >> meg tirrell out at that conference for us. biotech isdown 1.5% today, worst day since october. >> i know, right into the conference a great interview. i think that the problem with this group is it's neither here nor there, doesn't have earnings
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momentum it's not cheap it's not cyclical. no one really knows what to do with it. >> well, cell fine has 19 billion in a pipeline drag that's coming so you've got a patent clip that's huge. even this deal that they did, maybe that's a billion to sales, maybe, and so i think people are questioning what exactly are they doing and how are they going to fix the pipeline? any kind of biotech name i've tried to buy on dips it doesn't work i'm in hey lexion and in the ibb but, you know, frustrating, like what energy was for me to be quite honest. >> going to be a dud this year >> what about the m & a. >> you're looking -- you're right, and i think that's -- that whole interview made me think the way he put that out there, like, look, we're always looking, of course they are because they have got to do things to improve the pipe line. i think in you do look at pipelines though, biogen still trades relatively cheap and when i look at where that stock is down significantly, right off the highs, insider buying in
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there as well. all kinds of things about biogen in terms of their pipeline, that and amgen, gives you a dividend yield. these guys got money. >> celgene at 11 times they can stay this cheap for a long time. >> gilead is still cheap. >> i'm not sure i want ton overweight in biotech since hmos by the way have actually lagged in the last couple of weeks. they have been great performers, but i still think there's more upside in that particular subsegment. >> united health, liked that. >> gilead with 40 billion sitting overseas. >> but no mo they got in to buy somebody. >> made a little acquisition made an acquisition and the stock popped and then pulled all the way back down again. >> i looked at insight, everything seems to hurt this group, everything. >> all right we'll see what the conference
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does maybe something happens happened jump starts things. >> next up, the baltimore-based brokerage stock tells one big wall street firm what to buy today. before the break, the sector check. the s&p is a fractional loser today and utilities are leading the way. we're back on "halftime" in two minute
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we're back t. rowe price getting upgraded at bank of america to a buy increase the price target as well to 125. that's the highest call on the street and why it's our call of the day. what do we think of this one jim? >> look tat two ways, one is tax reform and the other is maybe stock picking is back. t. rowe always had a good reputation of stock picking and blackrock reports on friday where there's billions coming in i don't know if you believe that you want a stock picker, t. rowe has plenty of them for you. >> do you like this space? >> at this point it's a tough space because blackrock owns this. >> don't say anything bad about tia. >> absolutely not. >> i wish i could give it to steph. give it to my checking account. >> trades at 17 times forward estimates, not exactly cheap but when you look through the tax
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benefit and the stock if you "x" that out 14 or 15 times forward so i get it. the stock is not exactly up discovered like a moon shot last year with the rest of financials so i kind of scratch my head but they are taking money from invesco. >> a monster move over six months, 44% in six months. >> a big number. kind of hard to follow that. >> unless momentum is on your side. >> it's no nvidia. >> it's no caterpillar. >> i posted on twitter, just, you know. >> you're not going to name your next dog t. rowe. >> my other dog is chevron. >> pete in an auto stock today and some of the forecastses a well we're back in two minutes here on "halftime."
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we're back on "halftime. pete najarian at the telestrator with jim cramer for a look at unusual activity in the automaker and the financials are you sure general motors is an automaker >> along with a couple other
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ones does this look more like a tech company when you look at rise up to those levels where it's been and now it's starting to creep back up there again. the stock was trading a little bit lower than it is right now you need to know that. trading around 43.60, monstrous buying coming in there the march 47 calls selling. that's part of a spread, but they are buying those calls aggressively almost 14,000 of those were bought in a single print around 60 cents so somebody is out there buying february as well, scott, so they are buying february upside, buying march upside. this is a name i've been in for a real long time now it's actually become a long-term hold and i've added calls to a long stock so it's a long, long for me. >> jimmy, how long can this momentum continue? >> sells at six times earnings with micron going up people look at this as a united states company china numbers are incredible sell more cars in china than the united states. people say the markets is expensive. you want cheap and momentum. >> there you go. >> sold more electric cars than
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tesla last quarter. >> yeah, they did. >> i like this call so much. i like it so much. >> what do you have up next, pete >> take a look at the financials i really tried my best not to always go to something like, you know, when you get these bigger etf-type things, look at the kre, the regionals everybody loved the regionals and didn't quite perform like some of the rest of them i'll tell you. what look at virtually where it started and where it finished. today, aggressive buying in here as well. they are buying februarys and januarys in here receipty aggressive. februarys are the ones i want to highlight because those are decent size as well. pretty aggressive coming in here after the regional banks could they move up stock trading in the 59 and change area so this is what it looks like right now 62s. part of a spread again. >> boy, i'll tell you. after martin luther king day you see sun trust, an old five of stephanie and bbt, both recommended today. that a good call both of them i think you're right
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the others, friday they are going to be a good, way behind the group. i think it's terrific. >> all right >> steph, you got a thought on the regionals? >> i do own sun trust. >> still >> and i still think it's lagged and there's efficiency in the cost structure and i like the southeast where you're seeing better growth relative to the national average and one of the reasons why i like it. >> all right, guys come back over this way. coming up we'll do the trades on seagate, gopro, kohl's, lululemon all ahead in the blitz next 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.
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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. i realize that ah, that $100k is notwell, a 103fortune. yeah, 103. well, let me ask you guys. how long did it take you two to save that? a long time. then it's a fortune. well, i'm sure you talk to people all the time who think $100k is just pocket change. right now we're just talking to you. i told you we had a fortune. yes, you did. getting closer to your investment goals starts with a conversation. schedule a complimentary goal planning session today.
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today's leaders include seagate technology and amazon. for more go to cnbc preside president --president -- cnbc.com/iq100. >> obviously if you've got investments out there and you've got a peeves something like this and you've had these kind of gains, the problem is can you real trade around this, scott. you're getting a up-day bump right now that makes it very difficult. this is actually not a crypto company. so let's actually realize who they really are and what they really are, but if they have got the investment, that's money in their bank. >> jimmy, is that move based on
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that ridiculous or what? >> no, it's not ridiculous. >> not totally ridiculous. >> it's a disc drive company and car prices are coming down. >> all right snap was downgraded to hold at jeffrey's. what do you think about this, by jeffries. what do you think? >> this is an execution play they failed to pick up the blitz. what's incredible is jeffries says lack of guidance. snap, what the hell is going on there? it feels very much like peterman is running the show. that's the reference to the buffalo bills stepping in. >> he's a pick machine. >> a pick minute. >> you don't like dinchts. >> no, i like facebooks. snap is just flat value on that by revenue i never want to buy a stock that's valued on revenue. kohl's and lu lu
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>> really good numbers out of the kohl's >> it's an indication that things are improving, but not this good. it does show that all their investments are starting to work 15 times earnings is probably okay here. i would much rather own costco as it pulls back from its great quarter. in lu lu, i think people expected stock up, the one i still own and back adding toe. >> okay. >> what about go pro they're cutting jobs, gave weak guidance, the ceo controls 99% of the voting shares >> the stock is down 20% i think it was done even a bit more >> i mean, people were talking about it like it was going to be the next greatest invention. i never liked the stock, i don't care that it's down to $6, and it probably goats to oblivion. >> we don't need another hero. that's the reference to the hero
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plot that they can't sell. >> i thought you were referencing the song. >> i do have -- >> is that tina turner >> yes >> who were you singing? >> i don't know. i had someone else in my mind. >> sans ike. we're going to take a quick break and do final trades and with jim on the desk. and tonight at "mad money" at 6:00 with you know who. alerts -- wouldn't you like one from the market
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when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.
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rosenstein will be here along with johnny penner, jana has a campaign with apple, sending a letter about the iphone usage and children let's do final trades. we have a bit of tame. alba morrow, this has been a job brown stock. >> hasn't it been hit in. >> a bit recently. outperform is the call >> look, i think that again, electric batteries it's big a final trade? >> yeah, guy adami did a piece yet, where we looked for canada goose jackets, and i begged. every time it gets cold, this stock goes up and there's going to be more cold weather. this is the stock to buy when
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it's cold. >> i bought three for christmas and returned two. >> why >> they're too tight >> i mean -- is that a problem with you or the jacket >> too tight, too loose. >> i don't know how to interpret that. >> what does that mean maybe you got the wrong size >> maybe you have to address your lbs >> it's too slim. >> an idea, when you go, you try it on, if you don't buy it, you -- >> what do you mean when you go? you order it online? >> address this with the ceo. >> tell them the sizes are all screwed up. >> i never thought about that. when you have a side 10 foot, do you order a size 8 >> that's the craziest thing i've ever heard. >> on that note, vulcan pearl. >> i had to take the stuff back. it didn't fit my kitchen. >> really? it's totally different once you got it home.
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>> leader an auto parts company. >> a big move next week. >> shush >> let me tell my story. it's trading 11 times earns. china and europe with great management. >> micron. giddyap. see how to do that >> see you next time. what's on the menu is there enough stock to go around the amount of stock has decreased significantly. the president heading to the heartland oh, snap shares of the social media company taking a hit following a big downgrade. now down 20%, the analysts behind that call will join us. "power lunch" starts right now

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