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tv   Fast Money Halftime Report  CNBC  May 27, 2021 12:00pm-1:00pm EDT

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cash and $578 million of we work stock sold by a newman-controlled entity i confirmed those numbers as well, but all together, guys, over a billion dollars total the package also allows newman to refinance on favorable terms. that's quite the sum given the story, carl. let's get over to "the half" now. >> let's get to "the half," guys all right, guys. thanks so much welcome to their i'm scott wapner stocks, rates, where your money will work best, where the bargains are, even as the ten-year is on the move again. we will debate the road ahead for your money today joining me for the hour, brenda vingiello. jim lebenthal is here, steve weiss and jon najarian good to see everybody.
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s&p is good, in positive territory, as is the russell there's the ten-year note yield at 161 we are monitoring another hearing with the bank ceos on capitol hill today we will keep our eyes peeled on that for any heat that comes out of it, maybe dip into a little of that if we have to. farmer jim, i will begin with you today because, man, you have to be a happy man today. we need a laugh on this show boeing, generally the smile. boeing, general motors, cleveland cliffs, qualcomm, nxp, should i go on you want me to go on >> yes >> it is a good day, scott >> i don't want you to go on, scott. >> hey, steve, you could have been in these stocks i know you are still in cleveland cliffs but it is a good day it is not just for me and you, scott, it is for the nation, right? think about what these stocks are doing. this is cleveland cliffs, an iron ore and steel manufacturer. we will be building things
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we have chip shortage easing in the auto sector so gm is going to build the cars people want to buy. you have boeing flying high. those names are fabulous names for the economy, and qualcomm is doing well so, you know, we can make it about me, we can make it about you and me, scott, but i think it is more important to say that this economy is doing really darn well. it is going to show up in profits for these companies. we should all feel pretty good today. >> it is all about you, jim, which is just driving steve weiss crazy! tweeting earlier today, that jim lebenthal, i have to be on "halftime" with him when all of his stocks are working talk about bad luck. which just got us to thinking maybe you just need a little music. it is tough, steve it is tough. >> it is tough i'm glad to see jim experience how i have been living the last few years in terms of stocks, so welcome to the club. hope you can stay longer than a day, jim no, look, hey, what is
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surprising today is that you've got the bond market, the ten-year doing reversal that it started to do at the close yesterday, and yet technology is up as you pointed out, qualcomm, the others are up. we have also the industrial complex, commodities, they're all working today. i think what it is, is what we saw yesterday was that we had a couple of fed heads talking about how we have started discussing tapering. i think the market's actually glad to see that, glad to see they won't let inflation run away, because more so than rates running away it is actual inflation because that leads to those much higher rates. that's what kills markets and can kill it for an extended period of time so taking comfort in that. the at the same time as i was thinking about, hey, why is the ten-year so low, what is going on and when you think that, that you have to come to two conclusions. either i have no idea what is
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going on here, so let me adjust my portfolio, want to be short the ten year or the bonds or get out. or you say, you know what? i'm convinced i'm right, this is an opportunity to double down that trade so i was not short bonds before, but i am short them now. i was short of them after the show yesterday because it made no sense where they were >> ultra short, right? you bought the tbt, i mean it is worth noting - >> right >> -- that just because you think rates should be up, this is kind of part of the conversation we had yesterday, doesn't mean they're going to go up, right? i mean $161 on the ten-year, i think most people agree given the fundamentals of the economy that the ten-year should be a lot higher than it currently is, and it is not. so you buy the tbt because you still think by year-end we will be 2% or above >> that's correct. and the reason i why did the ultra, and i hate ultras, i don't do them in stocks, i don't do them in markets, but i have to do them in bonds because the movement in bonds is relatively
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small. so if you want to make money or you want to use it as an appropriate henle, which it is both, frankly, for me, then you have to do the ultras there. this is not a short-term trade, but if you look at the risk/reward, will you see a 1.4 handle on the ten-year i don't think so it is not impossible, but it will be for a nanosecond so i have 150 as my downside on rates over the year and i have over 2%. what i'm short is the 20-year. it doesn't matter, i did that because the most liquidity in that rather than shorting the seven to ten-year ultra. >> here is the issue, brenda, right. rates are where they are, and if rates are where they are then growth, then faang, which you own almost all of them, right? the mega cap tech names. they will work, and maybe that's one of the reasons why they've woken up and started, you know, performing again, because over
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the last week they have for the most part. the gains aren't tremendous, but, nonetheless, they are acting well again. if rates continue to move up, maybe they won't work, but let's play the hand we have right now in front of us do you like where the faangs can go from here >> i think it is important to hold the faangs as part of a diversified portfolio. obviously it was a tough first quarter and really it has been tough for a lot of the names in this group since september of last year, but particularly in the first quarter when rates did see a significant move higher. but here we are and, you know what valuations have come down for the group. we saw significant earnings growth during that time from september to today, so they are certainly looking a little bit more attractive from a valuation standpoint i also think they're important from a safety standpoint, because if we do get a growth scare for some reason, i think the market is just going to rotate right back into the growth names so i think as part of a diversified allocation it is still important to have exposure
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here, you know, but we also pair this with some exposure to more cyclical groups which we have really been adding to more meaningfully over the last year. so i think it is important to have exposure to both. we have seen a lot of oscillation in the market from one day to the next, one week to the next, i mean really for the year-to-date period it is still those cyclical groups that are working, that i absolutely think it is important to have some diversification within a portfolio. >> doc, let's play off what brenda is talking about. valuation, they've come down on the faangs rates are still low. that's why jim cramer said this. let's listen and we react on the other side >> great, man. a man who owns the panthers, and he is befuddled. why? i was talking to him yesterday he taught me bonds i'm talking to ed tepper he thinks the bond market like everybody else is short, but if the bonds are telling the truth, which they often do, then the cheapest stock in this market are faang. >> there you go. >> and i think faang is back >> doc, what do you think about
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what mr. cramer has to say >> i normally agree with jim and i'm not going to part from that right now, scott i agree. when i look at the outperformance in the faang group, it starts off with that first -- the "f" with facebook it is up 28% in the last three months, and that's with everybody sniping at them. that's with folks saying, well, europe is going to impose this, the u.s. may impose that, and yet it is up double what the next closest competitor, i guess probably google over the past f three months >> it is up 5% this week >> exactly "f" is the one providing the oomph, and a lot of the rest, amazon, apple, my biggest holding and so forth, are, you know, moving along, but i am looking at gains of 4% to 7% over the past three months, a far cry from facebook. so, yes, jim is right, and i
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think that a lot of that sideways sort of trade, scott, that some of those names within faang have done, i think that continues until we end this quarter. then i think they do start to catch up to facebook and outperform why? well, because then we are heading into more of a full economy. right now we know -- and i am sure you see it every day, scott -- that you go out and businesses that would like to be supplying what the demand is out there can't do it, whether it is chips, whether it is restaurants. they can't do it right now, but i think as we get out of the second quarter they will be able to provide more. i think that really gives the oomph to a lot of these stocks, then they catch up to the likes of facebook. but right now with still 8 million people out of work, facebook, one of the top spots people go for ads on the internet when they want to push their product. you hear my buddy kevin o'leary
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say that all the time, number one pick, facebook it is demonstrating that in spades over the past 90 days >> weiss, i mean i feel like we have a great conundrum here, and your tbt trade today really hits right in the center of the bullseye of this conversation. this is a trade that you have made based on what should be, and who knows whether it is going to be, right why not just play with what you have right here and now, steve rates are low. why not buy growth you are selling growth you got out of the altimeter growth fund, as much as you like brad gersner, you think rates are continuing to go up. it is guiding the way you are trading this market. >> well, i think there's an opportunity to make money in both so i'm staying away from the high -- i wouldn't even call high p/e stocks because like snowflake the losses are
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ballooning, they're not decreasing, they're not making any money. i'm staying away of the high revenue stocks in terms of price to revenue but i still have a lot of growth in the portfolio you know, as i mentioned over the preceding weeks i added to qorvo, i added to skyworks and i added to others. so i think you can -- they can co-exist but the rates will hurt those highly valued stocks, high-valuation stocks more than anything else, you know. it is where you see growth i see huge, huge growth in volkswagen and porsche you know, look, you have tesla out there that's selling 500,000 cars a year. volkswagen will sell the same amount this year in evs, just evs. i have it to seven, eight times earnings look, i think you can co-exist with both. again, the beauty about the tbt trade is that i will be right, it is just a question of when. so we will see 2% in the ten-year we will see a steepening yield
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curve. so it may not take a month this is not a trade. this is going through the end of the year and maybe longer. >> let me ask you this, as someone just pointed out on twitter, joe fomi, you know, who he is a good follow. he was talking about the reaction of snowflake to its earnings, right. >> yes >> we came off of -- >> yes >> doc, we came off of what was a disappointing post-earnings reaction for the mega cap techs, right? snowflake is in the high-valuation category, may be the poster child in that category, and it is trying to turn green fomi says it is a statement. look at that, what do you think, doc? >> oh, it is like you say, joe fomi, a great follow and good friend of the show and so forth. that particular move, it opened at about 221, scott, and it was lower than that in the p
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premarket. people began to dismiss -- they were worried, of course, about the losses that keep stacking up, even though the revenue or sales continue to grow it is a question of, okay, at what point do you lose patience and say, "you got to start cutting into that" some people thought that was today early on, and then it just reversed and did that huge moon shot from the left to the right on the chart joe is exactly right, that's a statement move to move from $221 or sub $220 in the market to $234ish just before we came on air. >> uh-huh. >> i think that telts you that not only did an investment newsletter come out, which did come out after the early morning activity, but also a lot of people are saying, "i will give them another quarter to see whether or not that loss gets cut into and/or whether they stay on this trajectory they can even go into the black as far as, you know, this growth stock" that, again, warren buffett
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embraced this one. there's not an awful lot outside of when he jumped into apple because of his portfolio managers, there's not an awful lot of tech in warren's portfolio, but he was a true believer in this one i think you are seeing that play out to a number of other managers today, scott. >> and maybe, just maybe mike santoli, who is with us now, our senior markets commentator, this is a sign of where risk sentiment is, and the reaction in a snowflake can tell a lot. >> yes, scott, it is getting some traction. now, obviously you have to kind of look within some of the intraday action, some of the multi-month action in the context of a long trading range to see, in fact, you had risk sentiment maybe make a little bit of a bottom in some of the high-growth names, maybe like snow snowflake. the russell 2000 has gone flat sideways but it looks like it is
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getting compressed and we got a big pop in the index yesterday micro caps yesterday as a group up 3% versus 2% for the small caps so it seems as if there's a return to perhaps some of the more aggressive parts of this market another index i think is a decent tell recently is what is called the s&p completion index. it is everything in the market except the s&p 500 yes, it is going to be a ton of small stocks, thousands of them, but it is also very large stocks that are recent ipos or just not in the s&p that's like square, that's like snowflake, that's like uber, and that has started to in a short-term way outperform a little bit it doesn't to me mean it is all back to kind of, you know, full-speed ahead, head-long risk taking and we are going full meme stock again, even if that's percolating again as well. >> i don't know. we kind of are >> i know. i mean, look, they're trying i don't think the fuel is there frankly. i mean these are not as heavily shorted as they were a few months ago, but we will see how it plays out because a lot of
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times it is a self-fulfilling exercise in the short term so i think there's enough there to say that the market is essentially getting comfortable with the outlook we probably had a crescendo of enthusiasm for the acceleration of the rebound economically. you know, we did see, you know, commodities put in a bit of a peak you saw macro sentiment really get very excited, and then, of course, you have seen treasury yields come in and be in this range for a while before again picking up a little bit. i think it all fits together arguably with a little bit more of a firmer risk posture but, again, it is a trading range for right now, and we are just revisiting the high end of it in the s&p. >> maybe, you know, look for lack of a better thing, it is the steve weiss contrarian indicator. i don't know >> how so? >> a lot of people, steve, are increasing their exposure to equities i mean i have been speaking with some big players in the market who are getting a little more
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heavily invested , you know, the fact that interest rates aren't running away when you have two fed speakers come on this network and say, yeah, we're actually starting to talk about talk about taper, and the market doesn't fall out of bed. maybe that's another sign, steve, that risk is about to come back in this market >> well, you know, i mentioned yesterday i took my cash position down from 35% to about 20%. i talked about facebook, how i had added to that. i mentioned that last week, how i was going to break out to an all-time high. it did today so that's another growth stock i own. as far as snowflake and the others, snowflake is a good company. they have a good ceo i wouldn't say he is the best tech ceo in the world like cramer says, but there is a dozen better >> you are mad at his pay package. i don't want to have this debate >> i think it is poor governance >> okay. >> i'm big on governance, so i'm not going to get into that
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no, he doesn't have the track record of a satya nadella. he doesn't have the track record of even an elon musk he doesn't have the track record of some of the other --, he doesn't have mark's track record. >> you know what he has though >> he has two small companies, but that's not the debate. >> you know what he has? >> that's not the debate their stock is down. >> exactly, that's where i'm taking the debate because the stock shaved $200 off $429 >> right >> that's the debate >> right >> it is not about his pay package. it is not about whether he is the greatest ceo who ever lived. >> right >> it is the fact you have a stock that people like that has shaved $200 off of its high, and it now may be, as dr. j is looking at, doc, a great opportunity to get into a high-growth name even with a multiple that's big but not as big as it once was that's a greater conversation about where risk sentiment is, dr. j. >> indeed, scott >> let me just finish, if i could. >> hold on, steve. real quick, please let dr. j respond and then i
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promise i will give you the next word i promise >> all right sure >> scott, pete was way ahead of me on this one and he has been in snowflake since at least the 190s when there was unusual activity a little over a week and a half ago he has talked about it on air. that stock has a lot of institution institutional buy-in to what has been happening here. people can line up against the one just like they line up against tesla or they have lined up against amazon when they weren't profitable, and then they've had to chase them for hundreds of points i think that same sort of scenario could play out in a stock like snowflake >> what is the message, brenda, in an nvidia, which you own, which is -- i don't know it is really not reacting well to an earnings report and a number of price target raises. i am looking at my sheet i don't know there's 10 or 12 or what have you. all -- well, not all, but most,
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you know, nicely north of $7oo, $750, some $775s what's the message that it is not doing all that great today >> i think we saw a significant move year-to-date in nvidia, it is up almost 0% so it has exceeded the market. it is not like you couldn't say some of this is anticipated, although it obviously had a phenomenal quarter but i think we have the overhang of the arm acquisition where there's still uncertainty there. that could be contributing to some of this but i really think the stock has moved materially already, so perhaps it is not a -- it is a do-nothing on the news rather than buy on the news given the great report we just saw >> mike, maybe this conversation begins and ends with the fed, right? and the reason why you are even thinking about thinking about risk returning to this market is because maybe now the market finally believes that the fed
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knows what it is doing and is going to get it right. >> i think investors, yes, are generally in tune with what currently seems like the fed's posture on things, which is not to overanticipate the moment when they're going to have to withdraw stimulus and accommodation, but to be mindful that we are perhaps tacking in that direction and if the outlooks really pan out, then they might have to do something here on the tapering front. so i think we did have the kind of most acute inflation scare for the moment last month. that's worked its way through. so it doesn't seem as if the market feels that something has to happen very soon, but if they think there are plenty of eyes on all of the relevant indicators and meanwhile they're not looking to kind of end the party -- i mean i think when you see things like, you know, the nasdaq and the small cap and the hypergrow stocks and arkk go down in three months, that helps the fed's cause because they
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don't have to worry about a market wide bubbly backdrop as they make decisions on what the economic indicators are going to be >> such good point the fact that the market corrected itself, right, the most frothy parts of the market, spacs, nfts, the arkk stocks all had their own comedowns. in large respect they've done exactly what mike said mike, i appreciate it very much. steve weiss, i promised you. go ahead >> okay. so first of all, i had been right in those stocks because they're down meaningfully. it is not that i don't like their technology, i don't like the company. i have a discipline. my discipline is not to buy stocks trading 50 to 100 to 125, you know, times revenue. that's my discipline other people want to do it, god bless them, all the more power to them. as far as buffet being in there, i would be very careful about that. he got in at $120 per share on the pre-ipo round he's got to double on it i wouldn't be surprised to see him selling the stock, but the
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pitch to him on getting this is we're going to ipo, here is the valuation we're going to ipo this is found money and we would love to have you in, because having warren buffett this is going to have people like john and others saying, wow, buffet loves this, he is a value player, how can i not. i look for him to exit this is not something he will hold for a long time, period >> that's all right. i really think -- and your point is fine. i really think that this may be the place to continue to look for a gauge of where -- i'm looking at my screen as i'm talking to you because the stock is up almost 1%, for a gauge of where risk sentiment is. maybe the fed is - >> near term you're right. >> i'm sorry >> near term i think you are right, these stocks need to move but we get a pc number tomorrow. we will see what that means. >> you're right, 1 h00%. maybe the mark is giving the fed the benefit of the doubt richard fisher is the former head of the dallas fed
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richard, nice to see you >> i'm not a critic. i am a constructive commentator. >> okay, okay. but, look, you think the fed is doing too much, richard. you have criticized that >> well, just let's say this good conversation, here is what we can say the sign has changed we are now in a reflation, regrowth mode. we know the direction where rates are going to go. the ten-year is settling in at a nice little range here, somewhere between 150 something and 170. but as we go through time with the employment numbers as good as they have been -- you know, three states, california, texas and new york, created 3.3 million jobs in april to april so we know where things are going. we know it is going to happen to consumer spending. we have federal largesse still
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achieving the employment numbers now is much more possible. so i think the fed will be very tender here and very careful, but it is clear at this next meeting there will be some expression that comes out of it, probably in jay powell's press conference, that, yes, indeed, they've begun to begin the beginning of thinking of whatever they're saying about slowing down monetary accommodation over time. so we know that's the direction that things are going. a very good point was just made. i think market operators have become more comfortable with this i would dispute that the inflation tremors are over because the way businesses operate, you don't just change overnight. you are going to have to adjust everything from cap x to their spending patterns, their receivables and also their payables to forces that will come into play over a year or
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two. certainly the rest of this year and next year. but i think there is more confidence in the fed right now. >> uh-huh. >> i think they're handling it well to hear even the san francisco fed come out and give a nice dovish or more hawkish comment >> yeah, mary daly >> yeah, that's a big sign so this is deliberately being engineered i think they're doing a good job of it. it is no longer just the dallas fed and my successor, mr. kaplan, but it seems to be a consistent message that's what you want, market operators want to hear what the overall theme is and want to reduce uncertainty >> why do we - >> so i think -- go ahead. >> why do we keep looking over the fed's shoulder, richard? if you were still the president of the dallas fed you wouldn't want everybody looking over your own shoulder you would be like, what are you guys talking about, we're going to get it right, we know what we're doing. why are we second guessing a fed that hasn't made a mistake they've yet to make a mistake. >> right >> you can say they've done too
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much for too long. that's different from making a mistake. why are we suggestive that they're going to this time >> well, i don't think they are. i think it is a matter of timing again, we know the direction the question is the speed with which they do it, and what they're clearly signaling is, unlike 2013 with that deep scar still in our memory, we're going to tap on the braekes very, very slowly over time that gives the market and i think it gives economic operators comfort. as long as the price pressure still continues, the real debate here, is this going to be transitory or is it going to set in a behavioral pattern. to that we will just have to wait and see, but i think they're doing the right thing here because you can't just -- as my old board chairman, herb kelaherd founded southwest airlines, used to say, you don't go from wild turkey to cold turkey overnight
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>> that was herb for sure. >> you know that tapping on the brakes. they're not taking the punch bowl away, they are just diluting its potency over time. >> by the way, your buddy kaplan will be on "the closing bell" today so you have to tune into that interview today there's kaplan at 3:00 today, "closing bell. when does the taper start? give me a ballpark, when >> well, i am guessing it starts at year-end. >> so before calendar year 2021 is over, the fed starts tapering and maybe they put the final thought into everybody's head in jackson hole, and then they get the idea that they can do it, does that sound right? >> i think it sounds like a good pace i would be advocating for something along those lines, depending on how the data comes through. it is coming through just nicely presently. so, yes, that's what i would do. remember, the balance sheet will be over $8.1 trillion soon
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it is $7.99 or whatever the heck it is right now. you keep adding for a couple of months, you will end up with a very nice balance sheet. i know market operators, one of the new york fed are discounting a possibility the balance sheet peaking at $9 trillion next year, tend of next year. we will see. that shows you a slowdown rate so i think this is being discounted now, that's my point. we know where they're going. the question is when and with what speed i would suggest the speed will be very slow in order not to create turbulence. now that we're recovering the economy, you don't want to upset the economy and undermine confidence >> let me ask you this how is the fed and do they care about changes in fiscal policy - >> no. >> -- around the time when they're thinking about changes in monetary policy i bring that up because there was a "wall street journal" exclusive headline not that long before we came on the air today that said biden's budget is said
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to assume capital gains tax increases started in april in other words retroactive now, look, we're a long way from the finish line of where this is going to go, but if you have a scenario in which you get a sizable tax increase at the same time you are going to get a sizable monetary policy decrease, i wonder what they're thinking about that. >> well, first of all, if you have tax increases and you are advocating for higher minimum wages, which you have to pay there are 8 million jobs out there that people won't take right now. and you are also pushing more regulation and you are adding on top of that an effort to get more unionization, that adds to cost factors that would be another inflationary input into the way businesses operate while they're trying to recover from these supply crimps and the kind of
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commodity price and pressure and others that they're seeing right now. so i think it would be an offset -- remember, it is to be gentle, and you also have an enormous amount of money being pumped into the system or loans made to the u.s. government simultaneously so i don't see -- i would be arguing at the table ifthat were the case, if these huge numbers come through depending on how they come through over time, that that doesn't mean we should change the course of monetary policy in other words we shouldn't refrain from very, very slowly, gradually, deliberately reducing accommodation. let's have price discovery here, and that's why i keep saying the direction is upward on yields. the question is the speed with which it proceeds. >> right, right. you're the best. i love the conversations >> wait, no, wait! >> it's been a while, too. we will see you soon, richard fisher thank you
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>> all right thank you. thanks for having me >> you take care if you listened to our own jim lebenthal, fafrmer jim, about boeing you would be in the money today. it is the best-performing dow stock and this week. we will debate the trade coming up next. we will go deeper next a reminder that you can wah tcor listen to us live on the go on the cnbc app we are back on "the half" right after this you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money. now or in the future. with an annuity in your plan to help cover essential expenses, you can live the retirement you want. the right financial professional can show you how. this is what an annuity can do. ♪ ♪ this is what an annuity can do. labradoodles, cronuts, skorts. (it's a skirt... and shorts) the world is going hybrid. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together.
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for kids like us, and all the amazing things we're gonna learn. over the next 10 years, comcast is committing $1 billion to reach 50 million low-income americans with the tools and resources they need to be ready for anything. i hope you're ready. 'cause we are. welcome back i'm leslie picker. here is your cnbc news update at
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this hour. the first female secretary of the army was confirmed yesterday by the senate, but moments later senator schumer rescinded the nomination without offering an explanation. this morning the senate reconfirmed her, the senator's office saying it was a clerical error. cybersecurity standards have been set for pipeline operators. they must now report any cyber incidents within 12 hours. they need a cybersecurity coordinator available at all times to respond to attacks. what else needs to be done to secure the nation's pipelines and what other industries may need to improve their defenses tonight on ""the news with shepard smith"." the fda has approved a new imaging tool to find advanced prostate cancer. the new scanner will make it easier to tart and treat cancer even after it spreads into bones. taking a step away from extinction, three giant river otter pups have been born in a zoo in argentina this particular breed of otter
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was once believed to be extinct. illegal hunting and habitat loss led to its decline they certainly are cute. back to you, scott >> love the animal videos. can't go wrong thank you very much. let's talk boeing. it is leading the dow today. it is leading this week. it is up 6%. now, farmer jim lebenthal, i gave you all sorts of love at the top and that was great and all of that, but now it is brenda's turn because brenda has owned the stock since september of 2020 and it is only up 45% since then so if you had listened to brenda, i know we teased if you had listened to jim, but if you listened to brenda too you would be making money as well. is the worst fully behind this stock, brenda? >> i think it absolutely is, even compared -- certainly compared to where we were in september of last year, where we've had more and more clarity just about the 730 max viability and i think that is the key, right, production there is the key to the free cash flow story here i think to the extent we are
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kind of on the cusp of starting to see more positive momentum and perhaps positive surprise on the number of planes out for delivery or in the pipeline for delivery, out in 2022 and beyond, i think is a good moment for the stock. that should continue to support the stock price. >> now it is your turn, farmer jim, because it was your final trade on tuesday you have owned it for a while. i don't know what level you got in or where it is up since then, but you think it is going much higher, i guess that's the bottom line? >> yep $300 before year-end so this is not today's final trade. this is my right-now trade go buy boeing, okay. $300 by year-end sentiment has clearly changed. we are focused on positive news like airbus increasing production orders. there's my fire alarm because it is so hot, scott this stock is so hot the fire alarm is going off >> the fire alarm again? again? >> well, you weren't on it with sully when it went off before. >> you know what that's good anyway because i
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dr. j, what do you got >> scott, pags, pn-a-g-s they bought about 5,500 of the june calls with the stock. i probably will be in that trade about three weeks. second trade, go go. these are the guys that provide wi-fi in the air the more of us that get back to flying again, the more demand there is for that. gogo, they bought 10,900 of the june 15 calls with the stock just over $13. they're looking for some pretty good upside. i am, too. this is another trade that probably about three weeks i will be in this one, scott >> dr. j, jon najarian, thank you very much. coming up next, how a small up start henle fund took on america's biggest oil company and won. and what it means for investing in exxon and other big oil stocks we will tell you next. onalized .
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welcome back it used to be that activists needed a significant stake or at least brand recognition to take on a large cap company that all went out the window yesterday with exxon and hedge fund engine number one leslie picker has been all over the story and what people are saying is a water shed moment.
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>> a water shed moment for the industry but also for activism it used to be when we would come on and do the chats we would have to delineate the term shareholder activism as one thing and, you know, maybe a political activist as something else well, those two terms were blurred in the case of engine number one and exxon because it was that climate activism that message, both from a political standpoint as well as a shareholder standpoint as well as a profit-seeking standpoint that enabled engine number one to get enough shareholders on board to elect at least two of its nominees to the exxon board, potentially a third. i think that messaging, especially now, is very critical >> i'm wondering for the panel, brenda vingiello, if you think it is a new era now in investing in big oil, right? it was like, okay, i'm not going to buy any of these stocks before because of esg and all of this other stuff, and now you
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have engine number one, david beatin beating goe lieliath, and maybe makes them more investable than they have been in many years >> yes, i think it is an interesting study with esg because one of the hardest things for esg investing is to measure outcomes to the extent you have a firm like exxon and a firm like engine one that comes in to enact change and we see the change enacted and it can be measured, that's important i think it does open up a window for esg investors to start to invest in some of these industries that might be dirty but, you know, making them cleaner could be certainly part of an esg mandate. >> the other idea, leslie -- and i would love you have thoughts on this, too, as you cover activism so closely -- the index funds and what the future of index fund voting is going to be >> yes so this is a really interesting topic, scott, because in 2020 in particular you had a lot of the parent companies for the biggest
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index funds out there, the biggest etfs out there coming on the record and basically saying, "we support sustainability initiatives. they've built up the etfs and these index funds specifically devoted to esg factors or what they determined to be esg factors. as a result, now that they're on the record as doing this, now that they have a big business in exposing themselves to sustainability initiatives, it is going to be a lot harder for them to vote against situations like we saw with exxon i think that is part of the reason why we saw engine number one become victorious here, is they timed it perfectly. exxon was going through a period of turmoil you had all of these major shareholders that had said publicly that they supported sustainability well, if you run a campaign seeking to make it a cleaner company, you kind of backed them into a corner in order to vote your slate >> it is hard if you are larry fink to write letters about sustainability and better
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corporate governance and have black rock vote against this halftime is coming up. send questions by video and we'll play them on the air e-mail us at when we come back. world-class interiors, and peerless design... their only competition is each other. the incomparable mercedes-benz suvs. extraordinary runs in the family. lease the glb 250 suv for just $429 a month at your local mercedes-benz dealer.
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okay we're answering your questions now. first up pharma jim, video question for you >> good afternoon, half-time team this is tim from texas and i'm looking at maxar technologies.
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m-a-x-a-r. i'd like to put back investment into the military stocks what do you think? >> okay. an area near and dear to farmer jim. >> yeah, you bet, tim. thanks for the call. thanks for your service. i am a very big believer in aerospace and defense right now. you want to be in maxar technology which is a small cap stock, i applaud you please do your homework. i don't know that one particular name the one thing that worries me $2.4 million in debt make sure they can cover it. i like the space and mid-cap defense so go for it, tim. >> doc, let's watch this video >> hello, guys draftkings or rsi. what is your favorite and why? i'm in all three >> what do you think, jon najarian >> penn would be my favorite
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because of the exposure they get but i love draftkings, as well, scott. that's a really tough coin flip. i guess i'll go with penn first and draftkings second. >> i bought my husband shares of american tower and does nothing but move lower since then. should i sell or hold? do you believe he should divorce me >> well, i think you should keep both amt and your marriage amt has been frustrating over the last year. i'm not sure how long you've owned it, but, you know, still a major carrier within the u.s all three major carriers are all continuing to build out their infrastructure to support 5g i think that's a trend that will absolutely continue. the company also has a lot of exposure outside the u.s. where similar trends are happening in many developing markets as 4g is being built out. a great story here and i'd continue to hold the sckto >> good stuff, thank you
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final trades are coming up next. i'm the boss and it's lonely at the top.
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[ screams ] you haven't changed at all. you're still a big baby. suck it, ted. -you suck it. excuse me. why don't you both suck it? i'm in the family business. and now you work for me, boomers. you want me to be a baby again? [ screams ] what the frittata? i'm sending you undercover. is this some kind of a ninja boy band? whah! -huh. oh my gosh. oh my gosh!
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we're back tonight i hope you'll join me. i'm hosting the news as the country reopens, the travel rush begins we're going to cover what to expect from the highways to the runways, plus behind a daring rescue caught on camera in texas. you don't want to miss that. you will not believe the video that's the news with shepard smith tonight at 7:00 eastern right here on cnbc final trades
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brenda >> ubs still really like this one. health care costs coming down over the longer term i think more to come >> jim >> viacomcbs stevie wonder, you should be in here with me next fire alarm stock, scott >> everything okay, jim? >> i know you check. yes, it's fine >> they're killing me on twitter for not asking you if everything is okay. >> i love you and i know you love me, too >> all right steve. >> volkswagen. when you have volkswagen at eight times and then the europe reopening and china with the leading sell of cars to me i think for years to come. >> dr. j >> dropbox dbx. >> i have to go to the hearing
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now. maxine water is questioning the bank ceos. >> let me just ask, we have, you know, supported forbearance and some of you certainly have been very good at doing that. however, we're getting a lot of concerns about homeowners, many of whom have lived in their homes for 15 and 20 years and because of the pandemic, they found themselves with difficulty they were laid off from their jobs, the jobs closed down or whatever they could not afford to pay their mortgages in the same way they had been doing for many, many years and we have forbearance in the c.a.r.e.s. act, i believe, and also in the american relief plan now, that foreclosure moratorium ends around june 30th for those who have been into forbearance i want to know from each of you, how many of you are going to offer these homeowners an
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opportunity for loan modifications, real loan modifications. even if they don't know about them, are you going to initiate them are you going to deal with them in ways that will help save their homes and avoid foreclosure? let me start right out with jamie dimon. can you tell me whether or not you're going to employ the kind of operation that we are going to have to get into a confrontation about? that we don't have to try to do something in law you're going to initiate this program. >> i can't promise you that because i don't know the details. but we don't like foreclosing on people we give modifications. we have plans and we work with everyone and where appropriate we will not be foreclosing of people i want to point out appropriate where homes are vacant and people have been paying for years and vacation homes and
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second homes you can expect us to bend over backwards to help those folks stay in their homes. >> thank you very much, mr. dimon. i described the kind of loan and i took an opportunity to describe that. i'm going to hold you to it. let me go on to ms. frazer >> thank you very much, chairwoman, waters >> we no longer service our own mortgages. we do so with partners now we require that they follow gse and federal guidelines on these matters and they all, and we only work with people that have good best practices in these -- >> so you're going to be offering loan modifications. people don't have to, you know, not know about them. you will be offering them, is that right >> we will be ensuring that our partners provide that, yes >> okay. thank you, mr. monhan.
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>> chairwoman waters, we have already modified a bunch of these loans and the good news is a lot of them are also paid off through normal things and a lo of them are current. we'll continue to modify them as mr. dimon said the last thing we want to do is someone who can pay for avoid foreclosure. >> i don't have time to continue that line of questioning because i want to talk about not only the fact that the cost of housing is just escalating so much in my own state of california you know it's increased probably about 20%. it's very difficult for people to be able to get these downpayments, et cetera, et cetera i want to ask you about these low-cost housing housing that is under $100,000 and some of these areas all across the country, small towns and communities of color, in particular they can't get loans from your banks, they tell me. i ask you to submit some information on that. most of you did.


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