tv Fast Money Halftime Report CNBC December 17, 2019 12:00pm-1:00pm EST
that's helping the dow stay in the green up 81. >> other story, stocks continue to move, netflix up 3% and peloton. peloton up 4 so take that, commercial critics. finally fedex, tonight after the bell we will be looking for some clarity regarding their relationship, their withering relationship with amazon let's get to the judge in the half. >> scott wapner front and center, final stretch. where will your money work best. 12:00 noon and this "the halftime report. >> more historic buys. where to put new money to work in this record breaking rally. netflix revealing numbers behind its global growth story for the first time ever and the stock is rallying is momentum back in this name? boeing, a major drag on the dow. stock in danger of first negative year since 2014
traitered take their positions. plus the best stock ideas for 2020 the investment committee is ready to go. halftime report starts right now. welcome. good to have you with us on this tuesday. our investment committee joe, stephanie, john, courtney, president of capital markets private wealth management. one of forbes top 100 advisers let's begin with that new milestone for stocks as s&p sits within 2% of its best year since 1997 joe terranova, s&p, nasdaq 100 new high russell 2,000, 52-week high. emerging markets, 52-week high. >> left our europe. >> pretty good nikkei 25, 52-week high. >> world is rallying. >> risk back on. high bet, take exposure is what near term investors want from
the market laggards are really rallying right now. i would argue when you look at the laggers, the ones that have limited growth opportunities and that's why it has not been a premium paid for them during the year, i want to look at the laggards from early in the year that began to recover early in the quarter. i think that's financial i think that is health care. i think there's nor sustainability going into 2020 in their performance i'm not sure these recent laggards, but let's focus on health care. >> boeing obviously is a help on that why are we rallying? because money, as bank of america says today, the bulls are alive, cash now is at lowest level since march 2013 this long awaited money is coming off the sidelines and going into equities.
>> at luke capital we're seeing the flow, not just in the u.s. where we've seen rallies this year, we are seeing it globally. we're seeing tremendous buying in japan you talked about the nikkei being up we're seeing tremendous buying in europe as well. you saw what happened, you talk about financials, joe, with deutsche bank, they came in and looked at the plan and said, hey, these guys are turning the ship properly. i think we're seeing some global growth and that's what we've been looking to see here, this rally coming globally. we're seeing it across sectors and across the globe. >> where is the money going, nike, back to the ipo in 1980, lows, all-time high back to the ipo in october of 1961 it's going into marriott, it's going into alphabet, it's going to apple, allergan, amgen. >> what did i just say there you go take a shot. new highs. money coming in a lot of diverse places in the market and
sectors. >> that's very healthy, very broad-based. that's what you want to see. cutting through a lot of unknowns in terms of trade and brexit and fed and the budget. i've said before i think we are priced at this multiple at about 18 times we are pricing in a lot of good news however, i do think now we shift to growth and global growth, like kourtney was just talking about. you are seeing brother growth. not great but improving. by the way, the data points today we got was very encouraging with regards to housing, industrial production i know industrial production was benefited from the gm coming back, but i do think you're seeing business cap ex within industrial production actually showing improvement. so that's encouraging. >> that's a good point speaking of encouraging, sorry to jump in fourth quarter gdp a few weeks ago was expected to be pretty lousy. now it's tracking the average forecast at 1.9%. >> so you're probably going to
do 1.92% in 4q but i'm more so looking 2020 i'm thinking ism globally have bottomed we're going to see an acceleration in 2020 therefore you're going to see earnings -- i thought you'd see better earnings by the third quarter of this year but in 2020 especially on comps. i think that's important have you to have earnings growth because we've had multiple expansion. i don't expect a lot of multiple expansion in 2020. where am i going a couple of names you talked about. i'm looking at -- i took profits in d.r. horton today and actually putting it into home depot because it's down 10%. nvidia, i've never been involved in that name and i added it last week still down 20% from its high schwab, that's an opportunity because of m&a i'm looking at pieces in the market that aren't at all-time highs because that's where i see value. >> what are you seeing >> somewhat cautious, maybe has
gotten a little more adventurous, gotten some of the head winds out of the way. tensions have eased a bit. fed meetings behind us runway seems good. >> i think i like the way joe is playing, focused on the laggards it's tough to chase everything fully priced in the u.s. i think that's really hard one of the things we've done, take a little out of fixed income and added to emerging markets. emerging markets has been a big laggard to markets, valuations are chooef cheeap there. we could enter the point on multiple expansion i think that's important in this interest rate environment especially if you get into a super goldilocks scenario. by that you have growth reaccelerate without inflation the fed has been clear, what they are focused on is inflation. >> a lot -- >> you have -- >> the heart of stephanie's point. >> but you've got that for one very important reason.
we entered the year expecting the fed to hike rates and we got three cuts that is a very different environment. so you add an enormous headwind with a lot of risk on the dashboard that didn't play out as those negatives are removed, markets accelerated. that was the reason to be cautious was the headlines to be optimistic -- >> you don't think if earnings are a disappointment the market is sustainable to go up, do you? >> earnings just have -- >> some good earnings growth now. >> no. you have to have better than feared earnings. that's what you need that's what we had in the third quarter. if you go into next year and get 5% earnings growth, i think that could be fine when you have these other capitalizers there where i worry is as you get later in the year and comps get more difficult and under the circumstances into kind of the election cycle and you get spot possible regulatory environment where you could see financials getting regulated again, health
care, whatever, technology even, right, i think that's where risk can manifest itself. but right now i think it's a little safer to go in. the other thing i would mention is last year was very precarious because there was a lot of opportunity for tax loss selling. this year, everything is up. you threw the paper at us. maybe mlps have given some back and there's an opportunity to take some losses there versus these gains but there's no place that is take losses. then when you get into next year and think if i'm a capital allocator, where do i allocate money, well, there's no alternative to stocks. it's really hard. >> that may be a fair point. there's no alternative to stocks, but there is an alternative to u.s. stocks. >> yes i agree with that. >> relative value trade looks pretty enticing outside the u.s. >> that's why we added that's exactly right. >> i want to chime in. we cover institutional investors. what we're seeing, scott, is
what you're talking about. when you think about the globe and the ability to invest in stocks global, we're seeing two to one selling in the u.s. taking some of the profits off and reallocating into just as you said, emerging markets when you talk about asset allocators and large institutional investors that used to be 70-30 u.s. stocks, it's now the reverse. >> you can own multinational cyclical in the u.s. have lagged materially i'm talking about energy, industrials, materials the positioning is that no one is in those spaces. >> a lot of pure play. >> if you don't have the conviction and you don't want to put a big allocation overseas, because it is a little bit more volatile, you have plenty of opportunity here to buy and have that exposure. >> we are global. >> scott, economic optimism came out this morning, and it was better than expected to steph's point about factory utilization and so forth and capacities, running right up
there at 77 plus percent, i think, those are all positives as far as the rotations and laggards and things like that, yeah, there's a lot of that going on it's almost like we're in the fifth or sixth round of graft where, you know, you're not getting folks -- they can't pick apple anymore because they have already picked apple everybody has overpicked apple it's like, you know - >> give me the mid round graft choice that's going to be a standout this rounder is going to make the pro bowl next year. >> macy's. >> i don't know about pro bowl but i'll tell you where i'm seeing a lot of these folks, a lot of the stocks, personification -- a lot of these stocks that are catching some investors eyes here are ones that they think still have upside but have just been slammed. now as you guys know, i'm involved in a cannabis etf
it's one of the few areas like rob said when you're looking at something tax loss sold this is that sector. cannabis from till ray to growth they have all been sold. to your point tupperware today, big poppout of tupperware today. too small of a stock to mention in certain categories on the show but this one is making a nice big pop it's just off the 52-week low. if you look at multi, multiyears you see people grabbing stocks like this one. >> using your sports analogy just to carry it a little further, everybody is drafting the great athletes the everybody's the etfs if markets go up those athletes are going to continue to get the support and continue to perform. >> there's one that's sitting out there and everybody is like, it sure runs a fast 40-yard dash, sure runs high. >> antonio brown. >> it's lagged that's amazon, one of jpmorgan's best internet ideas for 2020.
>> you're right. it's behind the market overall, but it's still double digits on the year. >> yeah. but it's substantially behind the market. >> because it's an investment year for amazon. the stock never outperforms when they are in investment year but it does tend to perform the year after investment year because that's when you see the benefits and operating leverage this could set up nicely for 2020 i do own it but much smaller i've been trimming it along the way. some good money. i've been putting it into alphabet it's cheaper more opportunity in the crowd. >> why have you been trimming it. >> profit taking, like we talked the other week about apple trimming it's still an overweight position for me but the valuation is pretty high again, it's an investment year i would love for this thing to pull back and for 2020 load up again because i do believe you will see a good year out of the stock. >> some of these other names are peculiar on the list, joe, best internet ideas as we segue into an idea where do you want to be positioned, if technology is
that spot, facebook, lyft, peloton, snap. all those have an overweight rating by jpmorgan analysts. you know, lofty targets in some cases. >> lofty targets in some cases facebook and amazon in a year where a class size really seemed to matter, large cap and megacap in 2019. you asked before where is the opportunity going to be for those middle round potential pro bowl players i think you have to look in the small cap world, in the technology names and some of the emerging software names. docusi. amer price, amb, globe life, life insurance, aon, that's where you find the opportunity if i look at these five names obviously i say to myself facebook and amazon that's where i'm going to get more sustainability and earnings growth and more reliability in terms of performance
but then when i think about it in terms of size class, i would look towards peloton, lyft, snap i believe in 2020 the environment will be conducive for performance -- >> you don't think we're late cycle, then. late cycle there is a gravitational pull that's pow powerful to large growth if the cycle continues small caps from valuation perspective relatively attractive. a huge display of catchup. if you're late cycle, a totally different playbook >> that's a great description. i agree with you are we late cycle, scott mentioned gdp growth, generally in late cycle you get that acceleration in growth and you reach that euphoria moment we are seeing right now growth that's not recessionary but not suggestive -- >> goldilocks.
>> the federal reserve just sits back and waits for the next move i don't think they know. >> what do we think of these picks. look, a lot of people like facebook that's not very -- >> you forget, it was down to 150 bucks early this year. a lot of people got scared. >> but it had a great year i'm sorry, scott. >> some of these outliers that are in some cases hated, certainly underowned lyft, peloton, snap. >> i personally believe -- i wouldn't go lyft, i'm uber, brand recognition, diversification of that business, potential for strong execution in some of the things they are implementing, they are to me going to win that battle it's a longer trail but i personally would take them over lyft sort of like -- not to say you have to own one or the other sort of like i would not own snap, i would own facebook
if i'm in there i want the power player. >> would you own twitter >> would i own twitter >> it's been a dog of dogs. >> it would. i don't own twitter and i don't own it because of other reasons. i think jack does a great job and the president is helping and keeping it afloat. >> is this the one that gets caught smoking dope two weeks before the combine and they don't even invite it to the combine because it's that bad? look at the horrible performance. >> i don't understand. >> snap is up 180% this is down 7%. >> they haven't fixed it, they don't know when they are going to fix it. >> i agree they don't even realize the problems they are making for themselves. >> valuation have you to be disciplined on valuation. i don't go for high flyers amazon is the exception for me i don't support. there's no way to support it. >> with the facebook when you think about execution strategy,
management team, can you disagree with how they think about things, the ability to monetize the way they have the way they have grown via acquisition and the way they know how to make money. >> it's 20 times growing 25%. >> there you go. >> that's a great risk reward. >> scott, there's my answer, long-wind long-winded. >> another name, netflix, soaring in europe, asia, middle east, up in the past two months up 17% this year it's another laggard do we -- disney gets so much love of late netflix gets passed over in most of the conversations you have these days. >> no, they don't. people are overly zealous thinking someone is going to sell it. >> people are still going to netflix and chill. when they put 90% of their growth out of the united states what they are trying to do -- i don't mean to speak for the coe. >> what they are trying to do, look, guys not only are we going
to see growth,some growth here even though it's on the decline in the u.s., we have tremendous growth outside of the u.s. i was at dinner last night when half the table didn't have netflix until recently like last week. generationally i think -- >> didn't subscribe to netflix until last week. >> "the irishman" literally brought them on the platform if you haven't seen the movie it's henomenal. >> a fun group you're hanging out with. >> let me explain. a millennial, gen exer, boomers. they did not have netflix. like facebook, grandma gets on facebook, mom is on facebook now mom is starting to get on instagram. you're going to see these generational shifts and that's going to continue to grow. >> but you don't own netflix anymore? >> i don't i made triple the money on it and i took the profits off the table but i firmly believe in this company. >> do you have confidence they have pricing power >> i do. i don't know anyone -- they have continued to raise the prices. i got them, i think they were
$7. >> that's disney's big push. >> i think you can have both. >> the question on pricing power. >> americans, think where the consumer is now, steph think where they are and where sentiment is i don't know anyone canceling their netflix to get disney, they are just adding it on i think they are going to get them i love that play they want both. >> they need the pricing power they have in the u.s. for a subscription in the u.s., i believe they are ringing the register on $13 is the number. in europe it's about $10 it lessens as you look at asia-pacific and latin america, down to $8 internally. >> hook them and raise the prices the way they did here. >> hang on you think netflix is going to raise prices how can they raise -- >> overseas. i'm very specifically talking about overseas even if it's a quarter, 50 cents, i'm going to raise a dollar here, raise a dollar
here i'm putting my consumer hat on as you continue to see emerging markets, get that growth back. their consumer starts to come back. >> so many choices it's not just disney. >> no. there's plenty of choice but there's also a secular shift in how we consume this. this is a very powerful demographic shift. >> with five competitors, you're just not. >> you are they don't have the same things, stephanie. >> the same things when they pull away from flixz. >> here is the thing. >> more original content. >> can i make a point. >> sorry. >> the reason people are excited about disney or any old line company that is able to make a pivot to a new direction, whether it be target and their online sales is because they successfully injured and executed a transition. that is why they are excited about disney it does not invalidate anything that happened at netflix with recurring revenue stream they have created, which might get under some pricing power unless
they are able to come up with great content, which they have been able to do. there's room for multiple players in many industries. >> scott, the thing is the international netflix, we talked about it with you when we were all discussing this data we had over at battle fin, international is flat. that's two quarters ago. this quarter international was going through the roof they said today when they released their first regional report of where subs are, 90% of the growth is coming from international. that continues to kourt's point. at some point they raised the price on that, scott the fact you've got 90% growth offshore outside the u.s. is huge for these guys. huge and underappreciated >> let's pivot and talk about boeing for a moment. temporarily suspending production of it's grounded max jet. the stock rebounding today still in danger, first negative year since 2015.
our fill lebeau joins us now what do we do with this going forward as investors. >> i think the big question a lot of people have is how quickly will the rebound happen. i think an overestimate how quickly it comes back. with boeing, faa, in terms of when these planes are recertified and they start going through the inventory in terms of, okay, how do we start the deliveries the delivery cadence is not going to be second quarter we're good, 400 get delivered. just not it's going to be a lot slower and more extended. i think what we're seeing here with the stock moving higher is people are saying, okay, i can live with that i think someday it's going to get back to levels people are touting for whether it's 2021 or 2022 by the way, almost every analyst agrees 2020 is a mess. >> it's underperformed the group 18% in the fourth quarter alone.
so a lot of this is already factored into the stock. >> absolutely. >> the fact they didn't furlough or fire anyone is a good sign. they think a month or two delay. >> i would say long are than a month or two. >> okay. >> we can disagree on that you could be right. >> i think furloughed if it was more than three months i think they would have taken action on that front the fact they are not building inventory is a positive in my view actually this whole situation helps their free cash flow burn a little better, the fact they are not producing. they are halting a couple of things look at a glass half full, half empty. i can make either case as an investor, long-term investor, this is a duopoly. >> you're 100% right. >> i just think it's very rare you get a quality company on sale for that long of a time period this has been going on for a year. >> can we just say, the question is when do you see the rebound i know we're seeing a little bit today. >> i think if you get recertification in the next two
or three months, one, two, three months, i think the stock flies. >> i was going to say when do you think you see the rebound. i was going to ask what happens if the stock trades down to $300 like cramer suggested. >> you're at $329. >> if it goes to $300 you're going to start talking what if it goes to $270. if you think it's on sale would you be more of a buyer at 3. >> i certainly would cash yield that's astounding i know there's a lot of uncertainty. i'm not saying it shouldn't around here at this point in time i kind of like to buy stuff when fear is out there. >> it's a widely held name. >> i don't know if it's widely held, to be honest with you. remember when the ceo started talking a month ago he they were going to get recertification by december and the stock really did well then all of a sudden these cracks came out and the stock then tanked. i don't think it takes much for this stock to rebound. in terms of free cash flow and that story it's a 2022 story
i'm not buying it today for that i do think this extreme level at this price makes sense for long-term investment. >> the trigger is recertification. >> no doubt. >> what is this announcement, if anything, mean for muhlenberg's future do you have any sense on that? >> well, the fact that you did not hear from him in that statement says a lot i was talking with somebody from the company and they said the statement says what the samt says the fact we don't hear from dennis muilenburg, does that mean he's going to be fired? i don't think so. >> you just kind of -- >> we have not heard from dennis muilenburg in a meaningful way since he was on capitol hill and they put out the guidance on november 11th. and that's it. now read into that what you will. >> what is your reaction as the investor at the table going to be >> i don't think they will fire him.
they don't need that headache on top of everything. >> would you care if he was ceo over the long-term or not as an investor. >> i think he's botched this up pretty good for sure the chairman is supportive of him. i'm not sure it's a layup. they just need to get it in the air and you can deal with the ramifications. >> they will get on plane. if it's safe, they will get on the plane. >> that's fill lebeau in the house. nice to have you here for a change. here is what's coming up on halftime report. >> johnson & johnson shares up 10% in the past three months morgan stanley think it's got room to run. our experts debate it and the health care space in call of the day. plus john nanhas unusual activiy latest trades based on movement in the sto mket ckarahead. scott wapner and the traders are back in two minutes. at fidelity, online u.s. stocks and etfs are commission-free.
it's not the senate's job to leap into the breach and search desperately for ways to get the guilty that would hardly be impartial justice. >> southwest airlines is announcing that it will cancel thousands more 737 max flights through april 13th, 2020 a southwest spokesperson says the move was in the works before boeing said yesterday they would suspend production of the plane. and pepsi will launch pepsi cafe in 2020, it will blend the taste of coffee with pembroke pinpsi , blend coffee and vanilla, and have double the caffeine of a normal drink send it back to you. >> appreciate it j&j rallying in the last three months morgan stanley thinks you should buy, upgraded increasing price target to 170. stephanie you join j&j
>> i do. >> do you like the call. >> i do because i own it. >> a lot of uncertainty. >> it's trading at a 10 ai year discount historical average to the s&p, 10% discount to the s&p. i think underneath the surface the fundamentals are just fine you've got this legal issue and you have to decide -- this little legal issue. >> they also generate $30 billion in cash a year they are going to peel all of these things there is a legal issue that's why the stock trades where it is. under the surface, pharmaceutical business is on fire growing upper single digits, med tech, consumer, er, okay i think m&a in med tech and growth will improve. getting through this legal staff will be a battle it's lagged so i like the call. >> i'm wondering if you're watching the program and you don't own the stock, and you know about the talc legal issues
and overhang with all that, if you say it's worth a risk to buy the stock here based on this call of the day, as we say, or too much risk to put new money to work. i understand if you have money working you're not going to give up on it what about the person who doesn't own it. >> i think the valuation is discounting a lot of the bad news trading at a ten-year historical average low relative to the s&p it's a big number, right if i didn't think underneath the surface fundamentals weren't as strong as i do, then i wouldn't be buying it fundamentals are doing very well great pharmaceutical pipeline that i don't think gets the respect. you're yielding 2.6%, great quality management, awesome balance sheet. as i said, they generate $30 billion cash a year. they have plenty of money to pay for a lot of these settlements i don't think you'll see any settlements my time soon in a huge number. >> you know, i generally don't talk about stocks on this show years ago james grant, you may
have read it, wrote a story in his letter that said there will always be j&j, it is a fantastic company. we've owned it for a long time we own it in our dividend portfolio, because of the quality, consistency, transparency, that dividend they continue to provide and they are diversified across pharma, med device, consumer products. if you had infinite time and resources you couldn't replicate what they have they will be able to my great through it and ultimately it will be a stock we own in our portfolio. >> i agree with everything rob said i agree with what stephanie said if you don't own the stock, though, the problem is the visibility the fact they are taking a litigation position of appealing. >> it's working. the appeals are working. >> think about it in terms of stock performance. not are the appeals working in a court of law if you don't own the stock, the position litigation wise they
have taken they are going to appeal, that's going to impede the stock from having the ability to gain momentum i agree with you it's a quality company i love medical devices component. across the board. >> i think those are good points. >> i think they are. california jury yesterday dismissed claims in that particular trial not all claims, of course. but in that trial they dismissed those claims in that yesterday as far as the talc and cancer issue and all that that's a california jury. >> opioid overhang, too. >> yes, there is teva and a bunch of others bear that responsibility as well. i think collectively the opioid -- these firms collectively get and do that big deal. >> you don't own these either. >> i don't own this one but i don't own a lot of big drug stocks pete does, i don't i'm a trader, not an investor.
i don't own it for that reason. >> that's a good point i'm an investor. i have 2.6 dividend yield. momentum when they do settle or if they do settle, when you get some sort of closure on this, the stock is going to do very, very well i don't have the timing. i don't know that. in the meantime it makes sense it's a quality staple like company at a reasonable price relative to -- >> steph is a collector, there's brokers and traders out there. i think being a collector when something presents itself you hang it on the wall and let it. >> coming up, option bulls in the energy space jon najarian in the unusual activity first check s&p sectors today. or not the s&p up nearly 4. back after this. is the monolithic view of emerging markets obsolete?
at pgim, we see alpha in the trends driving specific sectors of outperformance. where a rising middle class powers a booming auto industry... a leap into the digital era draws youthful populations to mobile banking and e-commerce... trade and travel surge between emerging markets. every day, our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. i cowe can do theyour screening at her house. hi.
this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪ and when you open a new brokerage account, your cash is automatically invested at a great rate.
bulls making big bets on midstream player jon najarian has that in unusual activity. >> scott, dcp. top of the show we're talking fifth round picks and things like that, i think this fits that category. why? because look at it right now it's down a little over 4% year-to-date that's after popping almost 6% today. that's why i have right here that that's a fifth round pick now, when you look at where it had come from, it was up here at 32 and so forth. i think that is where it could be going back to, scott. so kinder morgan, that's probably your first or second-round pick but this one dcp i think has a lot of room to the upside somebody else thinks so, too that's the paper we're following. 5,000 contracts traded pretty quickly at the january 25 strike it's not a big reach for this thing to keep on chugging through there.
i bought these probably second week in january. if i look at that point, maybe i extend out and roll it into perhaps april options at that point. >> come on back over good stuff the desk is ready to answer questions. semi, acto aszblksnend more. we'll do that in two minutes ♪ ♪ everything your trip needs for everyone you love. expedia.
all right. welcome back let's do some questions now. first one, jeff in boca raton, where you're going to do >> yes boca baby. >> jeff can ask again. let's talk medical devices etf ahi. too expensive to buy now that's what he wants to know. >> valuations for medical device high based on five and ten-year, medical devices tax on hiatus. expect as are it does not return in 2020. in the last five years seven of the top ten s&p 500 health care performers they have been medical device companies it's almost a way to play against a recession, low growth, and the political narrative right now that seems to be holding back performance in a lot of health care names. >> all right
people of boca look out for you later today. michael in charlotte, north carolina, for jon. on semiconductor, what do you do, hold it or sell it >> i'm still holding it. i've taken profits, that's one thing i do if it doubles and so forth. we're talking about this one i think on halftime back in the middle of september. it was under $20 a share it's pushing towards 24 right now. i like it. i think they are doing just about everything right and they gave us positive guidance just in their last report recently. >> all right steph. mary in canada wants to know about emerson electric it's not about buying it it's sell it or hold it. >> don't sell it definitely hold it a catalyst coming up restructuring on valentine's day. they are going to make announcements reinstruct urgs operations, a catalyst into the meeting. maybe trim some after but i like it into that meeting. >> kourt, lu from the great
state of new jersey. blackstone, should i buy it now? >> absolutely you should buy it now i think it's a name i bought structure of blackstone. the reason you can buy it now as much as it is is where the inflows are going from institutional investors right now into the space they are all-time highs. blackstone is highly diversified, very well run and poised ins position to continue to grow in the future. it's a name if you're allocating financials, i love asset manager particularly with electronics, this is one i love. >> rod for you, par in boston. any thoughts on biotech m&a surge in recent weeks? >> yes, i do one thing i would say backing up, biotech is a space you own pipelines in litigation. we owned it on selloff, 25%
price appreciation gave all of it back. it's come to the foreagain because of drug price baiting also m&a bristol and celgene m&a happens from strength also stagnation in the pipeline very idiosyncratic, very specific to the company and you just want to be careful. i think you'll see more and more as long as you don't see a lot of this reform jump to the front burner again. >> thank you for that. very detailed answers. we appreciate that rob, ubs roku taking a hit ongoing shares the ceo is stepping down who he else but jim, ask him what he's doing about shares he reports after this. each day our planet awakens with signs of opportunity.
but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. cme group - when we were looking he wanted someone super quiet. yeah, and he wanted someone to help out with chores. so, we got jean-pierre. but one thing we could both agree on was getting geico to help with renters insurance. ♪ yeah, geico did make it easy to switch and save. ♪
oh no. there's a wall there now. that's too bad. visit geico.com and see how easy saving on renters insurance can be. roku shares are falling after the company announced its cfo is stepping down jim owns it, i think he still does jim, i thought of you right away how could you not. >> thank you, brother scott. >> what's the reaction. >> this is a big nothing berger. if you look at the details fundamentals of the cfo leaving, he's been there four years he's increased the valuation of the company twenty fold. he's commuting from seattle to san jose every week, which is a bit of a beast
more to the point he's got about $100 million of in the money options. he's ringing the bell, going to take time off and i expect he'll pop up as a ceo somewhere. outside of that the company seems fine they are expanding internationally, which is the next growth opportunity for them.this, scott, this is a technical story not a fundamental story. this is all about momentum so i'm sticking with it for now, the next 5% move determines where we go with it. if it goes down we have to get out, if it goes up it's clear sail than this, the next 5% determines what we do. >> wow, if it foes down even close to 5% you're out i mean, i ask you this because i hope there are new people tuning in, you know, one way not know what your positions are week to week on roku and it's a trading vehicle for you and a high momentum name that's up better than 300% year to date. >> that's exactly right. i think my feet should be held to the fire for deviating from my core competency. >> no. no
you're allowed to have fun the farmer is allowed to play, too. it's all good. >> ride a motorcycle instead of a tractor, is that what you're saying >> yeah. why not? live a little, jimmy. >> as long as into break my neck riding the motorcycle which means if it goes down 5% at 16 times price to sales you have to know when you're beat. right now it's working so let's just let it work, but 5% down from here and you have to get out. >> good stuff. we will leave it there just wanted to hear your voice on the stock today because it's in the news and we talk about it often. be well. we'll see you soon. >> thank you, judge. >> that's jim labor that will the farmer joining us.
when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me.
>> announcer: online now, more record highs, read stephanie lansman's article of where strategists e eiarseng new opportunities. go to tradingnation.cnbc.com now. of outperformance.rs where a rising middle class powers a booming auto industry... a leap into the digital era draws youthful populations to mobile banking and e-commerce... trade and travel surge between emerging markets. every day, our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential.
there's one thing you can be sure of. they're changing by the nanosecond. that's why cognizant created a unique engineering approach to design and build new digital products. learn how cognizant softvision designs experiences and engineers outcomes. ♪ cool. ♪ ugh, another electronic signature. you have to print, walk, sign, scan, recycle, walk, email yourself... really? more walking, try again, waiting, recycle, walk, email yourself, then get back to your day. or not. this isn't working. introducing samsung paperless workflow solutions.
all right. courtney, we have to talk. >> oh, boy. >> because you're buying a retail stock and it is not walmart, which is up 33% year to date. >> of course not. >> target, up double best buy is up 65%. >> i told you guy about best buy a long time ago. told you about best buy a long time ago, too. >> it's macy's >> it is it is. i mean, because right now those other names, which i love and i've aukd about on the show, i don't do a ton of retail in my own portfolio but this name is so close to the 52-week low. >> for a reason. >> well, i mean, you could say that about a lot of things, right? let's talk about -- >> especially this one, though. >> i'm playing value today, you know i'm a growth girl 9% dividend yield, right 9% dividend yield. >> okay. >> okay? >> fair point. >> there is my down side, all right? some people might say, oh, they should cut that because of where the stock is, reinvest it in bad leases and fibsing stores. i had a rather depend on as an
investing that guaranteed money and then allow macy's to recreate their playbook as it relates to how they're going to run this business going forward. >> what if there is no playbook? >> there is a playbook what are you talking about >> what if their playbook has walmart, target, best buy and target in it that's like llama mar jackson, tom brady, patrick mahomes what am i going to do? >> mahomes. >> at the end of the day, right, it is a staple name that has the ability, brand recognition, real estate to move forward i honestly believe if macy's can do better with an app, if they can make other changes there is nothing but -- and i hate to say this, but there's nothing but upside from that point and your down side is 9%. i'm not saying your down side is zero 9% right now. >> we like contrarians plays. >> and i don't do them often. >> that's fair thank you. >> it's up a couple percent since i bought it. i bought is 15.16 so you can hold me to it.
>> the stock is moving on up. >> this morning. >> we don't have that much time. give me 20 seconds or why you're adding to freeport. >> it's a china trade stock, they are focusing on cost cutting, supply and demand in copper gets better in 2020 as gloebl growth accelerates. >> adding to nvidia. >> i am. i think it's going to be a great 2020 for nvidia. >> and schwab as well. joe, start us off, please, with final trades. >> i think it's important when looking at your portfolio to find something that is completely out of consensus, that's why last week i bought tip, jeffy gunlock mentioned inflation, no one is thinking about inflation moving forward i hope i'm wrong in putting this in the portfolio but it's a good thing to do, out of consensus play. >> stephanie. >> i'm going to reiterate nvidia, data center gaming all set up well, they should see a recovery next auto year, $7.8
billion in cash they will deploy. >> courtney. >> i'm sticking with boeing. >> awesome. >> i would put it in the portfolio and someone just told me don't bet against dennis. >> no. >> i'm with joe on the laggards, we added emerging markets, i think everybody should buy emg. >> planes, pagp, another infrastructure play for energy. >> thanks for watching "the exchange" starts right now. welcome, everybody, to the exchange, boeing shares dropped since the grounding of the 737 max. so recertification get pushed out even more and some investors are beginning to ask why is ceo dennis muilenburg still in charge we will explore. plus, will the china trade truce bring back ceo confidence and lead to more spending? the head of the conference board says the deal doesn't mean much to them but he will tell you what does. and from electric cars to cigarettes to, at