tv Fast Money Halftime Report CNBC May 31, 2018 12:00pm-1:00pm EDT
and it was pretty spectacular. >> they did different takes on the code, and recode that's intel doing good things >> we'll see how that disrupts the fireworks. >> more disruption in the fireworks industry let's get to the judge and the "half. and welcome to "the halftime report." i'm scott wapner our top trade this hour, the trade war and your money stocks selling off today as the trump administration slaps tariffs on canada, mexico and europe what all of it means to the markets on this, the final trading day of hour. with us for the hour, joe terranova, pete and jon, and we'll begin with the markets stocks are lower on the news of the new tariffs on stock and
aluminum dr. j., tell me how we're supposed to play this. we thought the trade war was on hold, maybe not so much? >> yeah, for instance, winnebago, judge, and some of the biggest pitfalls right away. hormel ham and others got hit too, they were about a third as much as two big uses steel and aluminum the rv guys are crying out this is good for the steel stocks does it continue depends how long this lasts, judge. but do at the go down 6% per day for several weeks? no i think you'll probably see somewhere between 8%, 10% out of the worst of those two stocks and they pull back >> all right so, mike wilson, why don't you tell me how you view all of this in the geopolitical spectrum and where you think the markets will go as we enter what you want to say is the summer trading
season >> yeah, this is one part of the cocktail that we've been dealing with all year. this is not 2017 we've left kansas. we're not in kansas anymore. it's a tougher environment trade wars are part of that. i wouldn't say it's the only thing bothering markets. let's go back to december when stocks were peaking. so, the market is well aware of these issues that are popping up now, for certain stocks, okay, the issue is not over at all there's probably going to be more casualty. at the index level, i feel comfortable saying the market is valued cheap at 16 >> i'm glad you that got there, jim that we've gotten this week. and i don't know if that's a reason alone to buy the market that's the market, that the market is cheap. you can make that argument >> how about if let's make that argument even if you take the other side and say 16.3 or whatever it is the right
multiple, we've got earnings growth 2019, s&p 500 earnings over. 2018 you got 10% built in and, oh, by the way, if it is cheap, scott, instead of 16.3 you go to 17 times then you look at mid-teens turnover over the next 12 months i think a lot of people are used to, hey, coming out of a long recession, you get high teens, 20% returns. if you get midteen returns this late in the cycle you should be darn happy >> i wonder if we should be talking more about and i've had some conversations within the newsroom about the european banks, okay? if you pull up a chart as i was having this conversation with one of our producers max myers, about the correlation, joe, between the futures. s&p futures and the way deutsche bank is trading, deutsche bank is down 7% >> yeah. should we be talking a lot more about the european situation and
the movement in the banks which in some cases is just straight-up stunning? >> well, i think what we ought to be talking about, and i'll use the word we used yesterday, and pete brought it into the conversation first and that's opportunity i believe as you're pointing out here with financials, the last couple of days there's been an opportunity to kind of reallocate whatever your positioning in the financials. a little more towards regionals getting away from big banks. >> the xla, by the way, is on pace for the stourth straight down month >> correct that is where the opportunity is, kind of reallocate, make it marginally relocated the thing we have to point out and we're talking about the market and the struggles of market and you and i have had this dialogue back and forth which market to look at. but i'm not going to debate that the nasdaq is higher today, alpha, apple that's the growth that jimmy's
talking about. and that's the market that remains the most relevant. >> money's going back into the tech, and money is going to the russell because of the trade situation. how do you want to play all of this do you want to stay big? or do you want to go with the smaller and midcap stocks and places that aren't as affected by trade wars, tariffs? >> we got a bias for a small midcap for a couple reasons. trade is one of them, the dollar strength is part of that as well also the biggest beneficiary year with what's going on with pose that's good meaning domestically focused policies, obviously, the tax cut affects them more positively than larger caps quite frankly, they're able to take advantage of these things that large banks have been able to keep care of. and scutting scale and cheap financing, now, they're seeing the benefits yeah, small midcap is the place to be. >> do we agree on that or no
>> totally i think there's a somewhat tech term that's going on, emerging markets have been beat up for the last few months. and people look at the emerging months and the russell 20,000, not as interchangeably if you want high data play you got either emerging markets or small cap. emerging markets are on their backs pep so it's going to the small cap arena. >> i think of this year as very rational i'm going to say something provocative. i think we're in a cyclical bear market i think we're in a rolling bear market, right? every sector has gone down at left 11% or 12% at least once this year. some are down 18, 19, 20%. it's a rolls kind of bear market it's fooling everybody at the index level. but there's a lot of pain out there. staple, home builders. some of these semiconductor stocks, some are doing well.
it's a mixed bag >> what does it mean in the bigger picture in the midst of this >> it's a two-year consolidation. it's a narrow range for now that's going to ultimately widen out. >> then when would the starting point have been? >> i think it began in december. you can argue the day that bitcoin topped with pes was the beginning of that pattern. a bear market doesn't mean it has to go down 20% a bear market is a tougher environment. i don't care what kind of portfolio, you can't run as much risk. >> are you telling me is this going to last for two years? another 18 months? >> i think it could last through 2018 one area that i can argue with jim, the consensus view, that earnings and margins are peaking. while cap apps, quite a good for long term growth, they are constrained on large costs
capx a cost even to margins. and that won't restarted earnings growth until midsingle digit if best. >> where does the recession play into that time period? >> i don't think it has to be an economic recession, right? the irony of the tax cuts it was all centered on corporates right? by definition it creates a tougher rate of change comparison for next year so, you could have a couple quarters of zero percent growth on a year-to-year basis. that to me is a matter for the markets and you could have many sectors with negative growth i said something provocative around this -- >> within a secular bear market? >> it's going to be a very disappointing bear market for the bears. >> you're not going to get that big plush. >> you've been making that case for a while. >> yeah. you do have this note that dropped the couple weeks ago, the end of easy, you said part of your strategy was to reduce
in equities and move to emergin markets. >> that report was written in the middle of may before this italian situation arose. i would say, we do like europe, intermediate term as a valued area i think it will do well. the next two months, it's not. it's going to be an overhang until we get through this event. i think the u.s. has benefitted from those flows coming back here if i'm allocating money in the big picture, i do think you want to be steering away from europe to the u.s >> mike, you're saying what you're saying, two months because of what happened and the lack of a government being' coalition to form a government over in italy. so, you're saying until the vote happens, until the next italian referendum/election happens, you're pretty much thinking you're upside ways, not getting much of a boost?
>> yeah, not that we're going to run to europe not knowing the answer it will bottom before the event like all of these things if we get a real shock and the market goes down 10% i think you got to buy it. >> how do you think this all factors into -- if the fed changed something in your own outlook for equities within the last two weeks, what does the fed have to do with all of this as well? i mean, that's the real wildcard, right? if this uncertainty out of europe suddenly is forcing you to rethink your short-term strategy in the market, what if the fed, are they going to be swayed by what's happened in europe >> i don't think so. look, the fed, it's a triple mandate. employment, check the box, clearly. inflation target, you can check the box there as well. the third mandate is self-imposed it's going to ask for conditions now, if things get swirly, yeah, major corrections they don't have to reaction a 5% correction in the emerging
market, give me a break. that's not enough to change the course i think they will stay in that passion until there is some financial action >> the s&p 2000s we'll call it today. 13 points, say 2700. where's it going between now and end of the year. is it basically sideways, or is it more likely in your mind it's going lower? >> well, i think you can have both last year it was 17th. and we oscillated around 2700 for the better part of this year that's the center line our target is 2750 that's our base case we think the range at the wide own is 2400 or 3000. i don't think we necessarily hit 2400 this year we've been adamant about 2650 today, 28, 2850 at the high end. i think that range is held for a good reason.
it's valuation constraint on the upper end. one thing we haven't talked about with biggest part of development within the last two weeks. it's the fall of the treasury yield. first there's a fight because what's going on in italy that's what triggered this there's a tremendous short base built up in that trade which allows us to shoot for the downside but the ten year knows that maybe the growth isn't as good and the curve could be inverted. so, i think there's a lot of messages >> it's always the fear, right the bond market is telling us something that -- >> it's too soon to have a proper growth scare. at 285, the argument holds >> mike, do you think any of the decrease, obviously, it's been a lot of short squeeze going on with the ten-year, do you think that this decress if things go bad or worse in italy that they
will back off normalizing interest rates >> well, i think there's absolutely an ability for them to do that there's no ordained ability to do that. i think they'd like to especially with draghi leaving next year. i think they'd like to go that path but they don't have to if this thing is out of control, i would guess they would back off. >> why do you have technology as a neutral, i'm just curious looking at your latest sector weighing >> interesting to me >> the reality is, i think it is the right call, when you say unusual, doesn't mean hate it. enterprise, software, hardware, we love. we like internet plays as well and our analyst downgraded it. that group seems a bit more mixed. look, i think we were earlier
than that going to neutral i don't think it's a wrong call. it's a stock picking market. >> so, i heard you mention before having some cash. clearly, you're talking about a time correction, not a price correction you're not going to flush. if you're sitting with cash, where are you going with that cash >> that's just it. the two biggest changes in my view this year, first, the fed is on a more deliberate path that was the beginning of a tighter condition regime which is why multiples deep and we're seeing accidents happening all over the place, okay it's tightening. the second thing that happened is, basically, we had this surge. it cause sustainability of that growth not that it's bad or negative just the sustainability of that growth it's an evolution of the change regime we're in. financial conditions are
tightening >> if you want us to be overweight financials, but yet, you're pointing out the drop in yields how does that work together. if yields continue to stay where they are, if not go lower, because of this growth scare, whatever you want to call it even though you say you're too worried to worry about that. how do financials work with italy, all of your americans, deutsche bank that we just showed you emblematic of that and then there's rates? >> we may not. we may be incorrect on that view if financials would perform given the rates on the positive side quite frankly, that's a bad signal i have to acknowledge that they may not make new highs from here that one's definitely on a shorter leash. >> let's get more information on tariffs imposed today. some retaliation now let's bring in eamon javers in our washington, d.c. bureau. >> a busy day. >> yes, it has been busy the announcement came from
secretary of commerce and secretary wilbur ross was on cnbc from paris this morning, when he talked about the damage to u.s. relationships with its allies around the world, including the eu, canada and mexico who are objecting to these new tariffs on steel and aluminum but he also talked about the damage to the stock market that could occur from this move at the time, stock market was down -- the dow was down about 170 at the time that wilbur ross was speaking on our air earlier this morning and wilbur ross sort of minimized the damage that he thinks will be resulting to the dow. here's what he said. >> we don't know what it's going down as a result of you mentioned the home sales were a little bit on the weak side. but 170 points is not very cataclysmic in any event naturally, if the market, to the degree it was surprised it will have to adjust to that
but markets adjust to fact >> wilbur ross saying markets adjust to facts. 170 points down as it was at the time not cataclysmic we're getting reaction from the eu and mexico. here's what the eu said calling it protectionism saying the eu believes that unilateral u.s. tariff are unjustified and at odds with world trade organization rules and reaction from mexico also using that same word, protectionism. saying mexico will impose equivalent measures to various products in the face of u.s. protectionist measures." and, scott, just within the past couple of minutes, i can tell you the president has brought the press pool into air force one's cabin. his presidential office which he rarely did talked about a number of things off the record but on the record said he's considering pardoning or commutations for two from
"the apprentice," one rob blagojevich, in jail for corruption charges the other one, martha stewart, who was famously involved in that insider trading operation both went to prison. both of them featured in "the apprentice" over the years both of them getting pardons or commutations from the president. he said he's considering both. no formal determination, though, has been made by the president whether he's going to issue that pardon or commutation. we'll await more from the white house on that. >> let me get back to the trade and tariffs for the moment there was obviously all of this talk, eamon, in the past couple of weeks over peter navarro's role in some of the talks that took place most recently can we look at what happened today as squarely a win for navarro and a loss for the treasury secretary, mr. mnuchin,
who on this network, i believe, said that the trade war was, quote, on hold >> yeah, i think you can look at it that way. there are deep provisions on how to proceed here. you can look at navarro on the protectionist wing steve mnuchin being more on the wing of globalization and international trade. mnuchin saying the trade war was on hold. didn't say cancelled, on hold. sarah huckabee sanders was asked yesterday about it, saying we didn't say it was on hold indefinitely, and then this action comes this morning. clearly, mnuchin's putting it on hold is no longer operative and something else is taking place so there is a tussle behind the scenes between these two actions. there really is some doubt as to where the president was going to come down. i was told a few hours beforehand that it was 99.9% sure this was going to happen this morning but a little bit of doubt because you just don't know with
internal deliberations in the white house. could the president change his mind at the time or side with one faction or another. >> even heard from wilbur ross, during the interview, in the last hour or so, he seemed to find out this morning? >> yeah, he said the president told them that his final decision -- his final decision here was this morning. and i think that squares with what our reporting is as well. that there was at least some possibility that the president might decide something else until the very last minute is this morning but the president ultimately making this decision and wilbur ross putting it in the context of his campaign promises >> sure. >> this is a president who said he was going to do this and now he's done. >> eamon, thanks hi, sue. the s.e.c. has filed insider trading charges against the kim
jong-un who used that public information to trade in securities of 12 companies prior to public announcement he did have, allegedly, a co-responsible ko conspirator in that we reached out to goldman sachs. once again, it's a seven-count criminal complaint that has been filed and unsealed charging him with insider trading back to you, scott >> sue, thanks for that story. thanks for the update there. let's talk now about general motors, that stock is on pace for its best daily ever. back to the ipo in 2010 on news that soft news vision fund is investing $2 billion into gm's autonomous vehicle give me the skinny on this, big day for that stock and portfolio? >> yeah, you don't usually see
gm up 10%. what this is saying, look, there's a private party on the autonomous vehicle here. stock is up. and that would tell you that the market thought the autonomous vehicle was worth 5 or $6 billion. frankly, i think the market is valuing it around 2 or 3 billion. by the way, not to steal any thunder from you, pete, stock still trades at six times their earning, unless you see a reduction in the next six months, i don't. >> do you wish that i sit next to you today >> he's begging -- >> will he ever say he wished steve weiss -- >> the answer is, he's sitting next to me >> i hope he's watching and heard that comment we talked about the international story with gm as well this is an interesting thing it actually shows the valuation that you're talking about. everybody liked to point to ford for their trucks
i think that one thing that nobody talks about with gm are the trucks when talk about their trucks, scott, when you put in all of the models, it's bigger than ford let's piece it together. you own the stock, i own it. i'm still holding t ining on tof it why? because i think the valuation is there. >> smart technology investors coming in here with gm, that's tantamount to when warren buffett decides to call from his bathtub and says, you know what, bank america -- i think i'll buy some bank america, i'm going to call that guy. so, when he says that, that's an endorsement just as it was with goldman sachs. and when soft bank does it i think it's an dorisment on the tech side. >> just the other day we had that upgrade with ford i said i would want to own ford or gm. most of the desk disagreed with
me >> who was here that said peak auto -- >> steve weiss. >> i think it might have been josh i don't know >> it was josh >> it was josh okay so the go becomes now you get 10% gm, does that attract you to ford in any way? >> no, not me. listen, ford was left for dust about two years ago by gm. actually i think it is becoming interesting. i'll not going to make that switch today >> what would make you get out of gm to buy ford, or buy both >> i'm not getting out of gm, period the f 150 is still a really good truck. there's a lot of things that gm has going for it that ford doesn't. and really the international sector is so much stronger for gm than ford i think you have to look at ford >> all right speaking of auto news. we have breaking news on another story in the sector. our phil lebeau is in los
angeles. >> take a look at the fiat chrysler stock moving higher as the company announced expansion of the partnership with waymo. here's the expanded war partnership between waymo and fiat chrysler. they've been testing these hybrid minivans. well, they're going to be building up to 62,000 more of these modified vehicles here in the united states. and also there will be discussions between waymo and fiat chrysler about licensing waymo's autonomous drive technology just a reminder, there are already 600 of these modified chrysler pacifica minivans testing it out in the phoenix area where the company will be launching an autonomous drive ride sharing service later this year and also tested in the bay area whichological be getting an
autonomous ride sharing service run by waymo when you look at shares by fiat chrysler, also remember tomorrow at the fiat chrysler headquarters in turin, italy, the new ceoological give the five-year forecast with jeep and jeep brand. and what else they intend to do. guys, back to you. >> fiat chrysler, you can see moving on that news. let's wrap things up, mike, with you discretionary, you do not like consumer confidence numbers are pretty darn good. >> yeah. >> what's the problem with that sector >> stocks peak on good news. these are early sector stocks. we think we've got an adrenaline boost in the cycle no doubt about it, these stocks have done better because of that that won't last forever. let me touch on one thing kind of why things are slow next year, too. the fourth quarter of 2017 had
no less than very ex zaggenous shops. and you get the tax cut, bigger than thought that increased sales, in the fourth quarter, for consumer spending and then you had cryptocurrency, okay which definitedly drove excitement so, those comparisons are all consumer-oriented in many ways >> my last quick point give me 20 seconds on it energy, you are a believer >> absolutely. i think it's working for the right reasons now. we're finally starting to see money flows. we've seen a lot come into the space. we've seen the long and short community buy it >> thanks for being here. >> my pleasure >> mike wilson
here's what's coming down "the halftime report. >> straight ahead, the big call for a big name tech stock that's doubled in a year. see why one analyst says it's not only not too late to get in, it's a great time to buy before the break, what happens to the chips after the big run? our data partner at kensho see they have room to run. for more go to cnbc.com/kensho "the halftime report" with scott wapner and the traders is back in two minutes i don't know. $4.95 per trade? uhhh and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.
we're back, on "the halftime report." micron is back under pressure, shares are lower after a downgrade to equal weight at morgan stanley it's our "call of the day. pete, you own it. >> i do. >> cramer said it was heresy, this call. >> i don't know if it's heresy, but i will agree with jim if i actually pick it apart >> he doesn't like the call. >> right this particular analyst was right. he left it at $65 a share. stock was just trading over 63 yesterday, scott this stock got absolutely hammered, right. it's all the way back to the may 23rd price i'm being sarcastic on that one. this is a company that continues to show all of the growth you're looking for. what the analysis is saying, i'm
a erring on the side of caution. >> 28% gain in a month >> right well, i think it's 43 -- >> 43% year to date. >> yes >> 100% one year >> right and those are very important to keep an eye on because that's why we've seen some of the pullbacks. and we've seen significant pullbacks on a micron, as we've got from this rise to the top. we've seen more and more pullbacks. i'm in the stock, i actually got calls to it as well. i think 65 is a low number i think 75 is a better price target it is just past 12:30 on wall street. the dow jones industrial average down by 227 points or just about right there. s&p is lower nasdaq is basically flat you have the tariffs obviously in focus today so, we're keeping our eye on that >> doc >> some of these retailers,
burlington double digit as well. frequently, we cite the ones that have big dropoffs these two have really come back very strong. and i just wanted to cite them >> i'm glad you did. without leaving this market conversation, you have to point out facebook is back to 191. it's $3 off that 195 high. >> it shows you how much people cared about this whole -- >> exactly >> what an opportunity jon was one of the buyers as well >> still one of my biggest -- >> i actually sold out of my position today on facebook. >> you did >> yes >> why >> discipline, man, take the money and run, are you kidding me this thing has screamed the upside that wasn't this terribly low that the stock was trading 150 look at where it's today >> how the heck do you know to get in >> i'll get an opportunity
somebody is going to do some crazy thing. >> i'm still thinking back to your micron call which i agree with, by the way yesterday, it set an eight year high or something. and it keeps -- you know, it hits these ceilings and then takes a couple weeks and breaks through it >> in the morgan stanley note, he said he's warming to western digital. western digital couldn't even rally from that warming from the analysts >> let's get back to sue herera. >> hello, everyone here's what's happening at this hour secretary of defense jim mattis arriving in singapore to attend a national security conference he will be there three days for bilateral talks. and the russian journal heist worked with ukrainian authorities to fake his own death in order to expose a
murder plot said he was smeared as swine blood and then taken to the morgue as part of this elaborately staged murder. and he was detailing it to reporters. saudi tc releasing footage of saudi bin laden and here at home, the washington capitals evening up the stanley cup series with the vegas goelden nights with a 3-2 win. the capital goaltender making a magnificent save with two left in the game to preserve the win. game three saturday night in washington be watching all of you hockey fans, right? >> all of us capital fans, yes >> you got to go top shelf here. >> literally, my heart was beating so fast the last two
plays of the game. i could barely watch >> you got to put it top shelf. >> that's easy for you to say. >> he using the phrase top shelf. >> top shelf >> yeah, all right >> just get it in the net, that's it. >> sue, thank you. you got it, guys coming up, jon and pete are following an oil and gas etf it is deliveringserious gains. we'll get their trades, next "the halftime report" back after this as a control enthusiast,
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we are back, jon and pete now at the telestrator as always for unusual activity in the options market tech and energy. pete, you got it first >> you know, yesterday, we were talking about energy how i took off a big portion of those positions, scott, because it was short term today, i'm back into xop why, because they came back in today after this big drop you see here and then sort of balanced out today, very large buying, they actually were buying xop yesterday as well. they were going at a higher strike but what i like about seeing this through today, we haven't seen anything past june.
now, we finally see the july calls. i bought these calls so at least i got more exposure. >> doc, you got one? >> take a look at xilinx fast buying in xilinx, they're buying june calls with stocks at 6850 here. came scrambling in here. 4,000, added very quickly to it since. like i say, i bought these calls, be in them about two weeks. >> straight ahead, management expert susie welsh after this week's bomb shell report that athena health ceo jonathan wolf attacked his wife 15 years ago did the board or ds oethe board have a responsibility to do what it's done thus far we'll find out next. alerts -- wouldn't you like one from the market
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the revelation this week that the ceo of athena health attacked his former wife during a divorce 14 years ago has raised questions about how the company is handling that incident and what, if anything, it should do about it. jonathan bush has since apologized and in a statement, the company said the following, quote, we are aware that mr. bush has made amends with his ex-wife and has
shown deep emorse. as a company, we are fully committed to a safe and respectful work environment for all of our employees so far, the athena board has remained silent. and mr. bush as declined and suzie welsh is live with us here from new york city. thanks for being here. >> thanks. >> i read the company statement, the statement said it found out about this story over the weekend when the "daily mail" out of the uk published. it has the statement, otherwise, it's been fairly silent. the board hasn't spoken. what should happen here? >> well, something should be said at this point beyond that
ma' mamby-pamby statement. what makes this story very interesting is that there are several mitigating factors that make it different from other stories. one, the ceo has shown what is considered to be real remorse. there was a statement from his ex-wife that sort of went beyond forgiving. she said this should not be an incident that defines his character or leadership or how he is as a father. they really seem to have reconciled the context is where it gets complicated in that athena health is in what could be a take overbid and right now how strong the ceo is and how much faith the board has in the ceo becomes really important. this is not a normal time for this company so, i think they need to get out in front the story and start talking about how the company is handling it. >> there are also all of these questions about where this information came from, and how it was leaked, if you want to
call it that in the first place. it also raises questions, i guess, suzy, in what part of a ceo's personal life should remain personal? this did not happen on the job it did not involve any athena health employees is it relevant is the ceo's personal life relevant to how they can perform their job? in this day and age, it's a tricky question. >> it is and this is not so much a question so much of personal life, but character. this is actually an offense where he could have been arrested had she picked up the phone and called police, he could have been arrested and charged and so forth. i think that there is personal life, are you going through a divorce, it's not a criminal situation. you can consider that something that's private but this sort of steps over that line that having been said, people have skeltons in their closet. terrible things happen he admitted it
he owned it. they reconciled. and apparently, there's no other incidents of it. it becomes relevant now in the new context of heightened awareness about relationships between men and women. it comes at a very heightened message that leadership has to be extremely strong to weather what's ahead in terms of the changes and ownership of the company. >> if it happens more recently, you would say we would have a completely different outcome a year or two ago? >> absolutely. and if the wife, the woman didn't come out and say he's changed. he's redeemed himself, we have a very good relationship, it would be very different. i think it's a cautionary tale for all executives what about you think is private there are very few secrets anymore. and this kind of quote/unquote secret, this kind of experience in the past if you've not spoken to your board about it perhaps this is the time i don't want this coming out as a surprise to everybody.
>> if the board comes to you as a management and leadership consultant and says what should we do? should this gentleman remain our ceo, what do you tell them >> well, you know, there are questions about whether or not he should remain ceo regardless of this. i mean, there have been questions about the stock's performance. around execution, about major initiatives. about management turnover. and i think i would advise the board to separate these two things do they have faith in his character, to go forward, given this incident and what's happened since then. and if the answer is, yes, we do believe in him as our leader and the next question is given what we're hearing and how the stock is performing should he be our leader but not could conflate these two incidents happening at the same time >> suzy, we appreciate your insight. crude oil is dropping after 'rsterday's jump wee going to hit with the futures and traders, next on "half.
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visit learnfuturestoday.com to see what adding futures can do for you. we are keeping an eye on crude oil tumbling over 1% let's start with you, jeff, crude in the red for the sixth session in zen can the rally get back on track here >> i think it can. as soon as opec and russia had a conversation about a potential replenish me replenishment the market took profits. we are seeing rhetoric out of
assad right now which is backed by russia as well as iran talking and warning the u.s. to take their troops out. so there's a lot of geopolitical tension mounting so therefore i think the upwards track is still intact. >> jim, you say you see $70 in the cards. >> in the long term, the trend line support is still intact two days ago we went down and tested it. i would have liked to have seen a continued bounce from yesterday. that doesn't change my thesis yet. what would change it if it takes out yesterday's or the day before's lows. trades below 66, i would get worried. right now i think everything is good and we'll bounce off the line and hit 70. >> meantime, we're chinaed by sit tri's tobias levkovich and one technician says the bitcoin bottom is in natres wfil adith the half time crew right after this break.
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>> down 8% the stock missed on profits and same store sales down 2.35%. >> raising its target on chipotle to 500 bucks. >> doordashweekly orders up, momentum turning higher. >> paypal is moving higher. >> this is a great spot to be, i own this stock, i was out, got back in. it's going higher. >> final tdes raare straight ahead on the half time report. as a control enthusiast, i'm all-business when i travel... even when i travel... for leisure. so i go national, where i can choose any available upgrade in the aisle - without starting any conversations- -or paying any upcharges.
>> we're back, time for final trades pete najarian, you are up first. >> i'm going give you wynn, a stock we don't talk about as much in the past, a lot of stuff is going on, wynn calls are being very active. >> we don't talk about it, you do. >> giddy-up. that's what i'm looking at got a smirk out of you on that. >> i'm going to stick with wendy's, wen, guying it today because of unusual activity. >> buying the options? >> yes, sir, wen. >> okay. >> qualcomm. this is not a riskless call, but long qualcomm you have wilbur ross going to china over the weekend. there's a quid pro quo, zte gets to survive there is some risk but that's the outcome i see happening. >> haven't you been in this stock for a while? >> and i want to point out today's price action with the tariffs going on and the prognostication that there is a trade war with china, the stock
should be down it's not down that much, i think that bodes well for it. >> alphabet looks like it's picking up momentum to the upsid upside. >> thanks for watching, "power lunch" begins right now. good afternoon, scott thank you very much. i'm tyler mathisen welcome to a busy edition of "power lunch." president trump slapping major tariffs on mexico, canada, and europe he says it's good for america, good for business, our allies are set to fight back. we'll talk about the impact on businesses and the markets and your bottom line that is straight ahead plus, the race for driverless cars, general motors up on softbank's big investments in autonomous vehicles, and waymo teaming up with fiat chrysler. and shares o