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tv   Fast Money Halftime Report  CNBC  January 13, 2022 12:00pm-1:00pm EST

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meanwhile, we are seeing a lot of chip stocks benefiting from the bump earlier lam research up almost 6%. >> and the nasdaq underperforming witness again, down 0.6%, carl, as we head into earnings season. >> tomorrow, citi, jpm, wells and black rock let's get to judge and the half. ♪ ♪ carl, thanks so much welcome to "the halftime report." i'm scott wapner, front and center this hour the state of the markets earnings season, a mere hours away now the investment committee debating all of it they'll tell you the direction of stocks and they're making key moves in the portfolio and you don't want to miss those kerry firestone along with jim lebenthal, ways and pete najarian, co-founder of
12:01 pm >> the nasdaq under pressure and almost a triple-digit decline and 96 points to the down side and the s&p is basically flat, down a few and farmer jim, i start with you i'm wondering whether we could trust the bounce in tech over the last couple of days. we are going for four up days in the nasdaq and we have work to do in this moment. you've gone now to mr. all in to mr. sitting on my hands. you do still think we'll have a correction >> i do. i'm sticking with that call. obviously i look at last few days and i wonder if i'm right, but the last few days feels like a pause in what will be a steady rise in interest rates and i don't think it's a cataclysmic rise in interest rates and if the ten-year gets to two or above that it will not kill the economy or kill the markets and what it will do is knock down higher priced hypergrowth stocks. so i think that this respite
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we've had particularly in technology for the last couple of days is not over. as far as sitting on my hands, it's true. i haven't done anything in the last few days and i did raise cash in the last couple of weeks. you know that. i haven't deployed it because we're not anywhere near the end of the volatility that i see coming because the fed has basically changed its support of the stock market and there's nothing wrong with that, okay? this isn't head for the hills time just have a little dry powder for volatility that should come. i'm still 90% invested so i'm not thinking that there's a bear market or some disaster afoot. >> you wonder if this is yet another headfake on rates. we're moving lower we're 172. we've moved a lot obviously in the last eight, nine days, 30 bases points or so, but we declined from there. ubs expects the ten-year to move to around 2% in the coming months and in terms of where we are in the market, you don't
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think that the correction or the pullback or whatever you want to characterize it as is over you said on the closing bell yesterday. right now the bounce does not look like the bounce and there's more puking that needs to take place in a lot of areas of the market what specific areas still look bloated to you, josh >> to be clear, i'm referring to the nasdaq i don't think the selling is over there was a kick save two days ago. there was an intraday violation for the nasdaq itself below the 2 hun-day moving ankeverage and some buying came in and we had a nice two-day rally that seems to have stalled out, and if you think about how -- if you think about how a lot of the components, forget the qs, the nasdaq composite how many stocks we're talking about. what will end up happening is a lot of these names will make a lower high so you don't want to see lower
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highs and unfortunately, that's what it looks like what we're set up for i'm talking about charts and let's talk about what thatdoes to sentiment as people who have been crushed of nasdaq stocks and 40% of the nasdaq is already in a 50% drawdown from last february. as people start to see that pattern of oh, great my stock rebounded and why didn't it rebound, and you end up real capitulation and that process has to play itself out, and it's not a disaster on how you allocated and they're not great, but they look great. >> ark is in a 40% drawdown this morning and obviously that's a different story and there's a spectrum, there's distance between apple and teledoc, let's say, right but if you think about the newer investors that have come into the market over the last year
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and a half, two years, what stocks do they own they own draftkings. from that standpoint, i don't think sentiment is bad enough to say this is the bottom i really don't think there's enough damage and there's 20 billion on their way to 10 billion and we have to sit through that, unfortunately, and we have to watch that play out and that's what's happening right now. >> you know, pete, that view is shared by the like of paul tudor jones, i think when he was on squawk box he talked about historical multiples of the nasdaq where he is now relative to where the unemployment rate is now, relative to where interest rates could be going from here and the reset that would still need to happen the sentiment that was shared by brad gerstner who was with me saying you hay 10% to 15% compression in multiples going forward specifically on the nasdaq and a lot of those higher valuation and higher
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price to sales stocks which have certainly gotten hammered and maybe not hammered enough. is that still the most acute part of the worrisome area of the market i can't hear pete. we'll work on pete's audio kerry, you want to entertain that same question because i'm sure you have thoughts on it, as well >> yeah. sure it's interesting, scott that tech had really underperformeded market in the first couple of quarters of 2021, ended up pretty close to financials in terms of being up around 30% so despite this decline in the nasdaq and as josh pointed out there are hundreds of names in the tech companies that are down 30 to 80% and i ran a screen of the names over 3 billion market
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cap and there are 680 biotech names and more than 30% off the 12-month high. the sector has continued to go higher despite these companies going lower and they can co-exist the market's down about 1% so far in january that's up 11% in the fourth quarter. we can see a market that can go higher, but it can move higher while we have this correction continue in the very high priced big multiple of sales type of names because the quarter is going to be, you know, as expected, not great because of omicron, but continuing to, i think, that the economy is expanding and interest rates have not moved up at the rate that people thought even two weeks ago. we hit about 1.8 and people are saying oh, boy, it's a 2.0 in a
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handle in a second and that didn't transpire so i think that the consolidation that's occurring under the surface while the market is sort of holding steady rather than falling as it did in the first week is healthy. it is healthy. >> it is notable that as the ten-year continues to drop on an intraday basis, so does the fak. we are off 25 more points since the start of the show, six to eight minutes ago. so, pete, i think we cleaned up your audio now do you hear me >> yes yes, i do, scott yes. >> so give me your thoughts. you hopefully heard everybody be's take on what's happening within the market and whether the worst of the tech selling is over it certainly doesn't appear to be and josh just tolds you that there needs to be more of a puke in his words do you agree with that >> i don't know if i would even use the expression puke. i would just say the correction that we need to see out of these
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unbelievable multiples and low multiple names and now we see them as they're kicking to the down side and that's something you brought up with ark, as well and that's something that's been playing for a while now and smafshth, when we look at the faang names. they're standing strong. they'll get volatile like everything else and they'll be affected and not to the same degree the heavy selling that we will continue to see will come from the high multiple, low multiple-type names and the reality is i look at the names and you can predict in the moment in time tesla was up nasdaq was up. tesla was up over 1100 and now it falls back again. those are key names that i can look to and say, you know what? i'm not saying there's something wrong with tesla, but that's the stick -- we have to look at
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things right now >> yeah. absolutely -- of the high multiple names and i do think there will be service, ask i think with the velocity that got us there in a short period of time that's triggered the big selling in the areas and the buying that we had seen in the financials and there are different mechanisms going whether it's the ten-year or crude. >> josh? >> go ahead. >> go ahead, josh. >> the s&p 500 has not had a weekly close below the 200-day moving average it's january 2022. i think there are a lot of market participants who forgot what it's like to be in a defined downtrend, a technical
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downtrend and not just to be in one for ten minutes, but to be in one for weeks or even months. the next time the nasdaq gets back behind the 200 day and if it stays there through a friday afternoon i think you're going to see the type of selling activity where tim will concede the word puking becomes the correct technical term when we're talking about in the scenario is the indiscriminate selling in the top 100 nasdaq names that really hasn't happened yet and even when you think about some of the growthier names in the dow and the sirp 500 and your home depots and lowe's, for example, where you say to yourself these companies shouldn't be caught up in that and they sell hardware and home furnishings and they're selling at 30, 40 times earnings in some cases and that's the type of selling we haven't seen yet and i'm not rooting for it
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i just want people's minds to be open to the possibility and it's been a long time people have forgotten pep so i will be watching the 200-day on the nasdaq and i will be watching that ten-month moving average and i would consider a pronounced sentiment shift if, in fact, we start seeing closes below those levels i think they've become very important now. >> so we have the lows of the day, albeit, it's not a 1% decline yet on the nasdaq, but zee seen a pickup since the nasdaq and where it may go what's interesting, josh, as you mention home depot and i turn to kari on this one so you are taking some profits and you are trimming across your portfolio which to me has to be a statement of some sort as to where you think this market may be heading in the near-term.
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home depot among the ones you trimmed fisher and the performance numbers of these stocks are through the roof. depot is up 56% last year. thermo up 43 you get the point of huge gains and maybe now is the time to go for the exit >> yeah, well, exactly these are stocks that we've owned for multiple years and home depot has a couple of times over the past four years been at relative multiples that were very attractive compared to its own history and we would add to the position and then the stock would go back up and now it's not selling for a relative multiple that's low. it's high relative to its history. the same is true for the other names. sherwin, as you know, i've talked about that many times on the show paints can't fly and you have to go to the paint store, but there's been so much painting
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going on when people have been inside and remodeling that it's the right move on a portfolio basis to take some profit when the weights of these stocks have gone up and up over the past year and a half. so that's what we did. we raised cash and have money in the sidelines as we see them show up. >> you know, i see the nasdaq and the move that it's making and it just underscores this conversation that's being had about value and growth and what's going to rule the day and whether value and how many times have i asked this question whether values will finally have its moment it certainly is now the russell 1,000 value etf is coming off its fourth positive close in five and it's clearly outperforming growth right now the question is this rotation that we've been witnessing, whether it has staying power i want you to listen to what the
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professor the wharton school of jeremy siegel told me yesterday in our conversation about the markets here and now and what you should do as an investor let's listen >> stocks are real assets. you just can't hold paper assets which are bonds. they're the worst. stocks are real assets what higher real rates does mean is the rotation that we've been talking about. that certainly happened in the first week of this year, and i think it's going to happen throughout the rest of this year so you see, jim, the professor has been out there suggesting that everybody's getting inflation wrong and the fed's got it so wrong that they're going have to raise rates more times more often than the market is expecting so when i said to him, does that mean you're getting out of stocks, professor? you are known as one of the biggest bulls around also, right? he said no, no, no, no you will still be in stocks, you
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can't be in bonds and you have to be in the right stocks and you have to play that rotation which he said in a follow-up question, he thinks this is the moment for value and that it's going to stay this way what do you think? >> well, i think it's going to stay for a while what does it mean? i think it's at least six months and it's more than a year, but what we're talking about here behind rising interest rates and the reason for it is we've got a strong economy and i think that's an unassailable truth and i would point to the fact that jobs are plentiful and yes, that's creating inflation, but you've got a strong economy. what that means is you're early in an economic expansion and that is the time that multiples on value stocks tend to expand okay we're talking about interest rates going up and multiples at best staying constant for technology stocks and maybe even contracting and if you're an energy producer, if you're a financial and industrial, you're looking at earnings growth at a level that will promote multiple
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expansion on those stocks. so this is more about the life cycle of the bull market and more about the life cycle of the economic expansion and yes, you have to be in the stocks where multiples might actually expand. as a case in point so that you know what i'm talking about here for those of us who have invested in autos for a long period of time, we remember that three years ago a good multiple on a auto manufacturer like general motors would be nine times. that's what happens when you come out of a recession. as this cycle ages, people will look at those stocks and they'll say, you know what we need to take the multiple down, but where we are right now, value stocks multiples should stand >> forgive me for jumping in here, jim. i can't get away from the nasdaq as i look at it. as you're talking i'm sitting here looking at our screen and throw up the nasdaq, guys,
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intraday we are up almost 200 days on the nasdaq just like that. there are a lot of stocks that have come down a lot and there are smart people who think it should come down more and you're looking at a loss of 1 1/3%. if we do see a draydown in the nasdaq and the tech, what are we supposed to think about the mega-caps and the apples, for example, which j.p. morgan is out positive today on and that evercore raises a target today at 210 from 200. stocks like that that so many people are in and have been buying and it was only a day ago when in this market apple was only serve, eight bucks away from its all-time high are those types of stocks going to be especially vulnerable, as well or will they be the defensive ports in the storm that they've
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been in large cases? my guess is the latter because i think old habits die hard, and i think a lot of people have looked at those stocks as though they're the treasury bonds of the stock market as ludicrous as that might sound to you they feature real negative returns and i can accept on% of volatility in apple in exchange for the dividend plus buyback being a positive real yield in terms of shareholder return so that's the way people have thought about stocks like that the problem is there aren't that many of them the other problem is if we get a much bigger drawdown across the board which, by the way, the s&p looks fine to me and if what's going on in the nasdaq started in infect, which could happen at the drop of a hat and don't get too excited with automobile stocks if people start screaming about recessions, but if that
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wereto happen i fail like thes stocks would hold up better than most, but i also feel like they would be used as a source of cash for more opportunistic traders who are saying, all right. apple is down 6%, 7% from its high and that's not exciting to me, i want to redeploy some of that into a stock that's been cut in half and that conceivably could double if the market recovers so it's tough to say in that tug-of-war which side would win out and my bigger point then would be, you have to decide whether or not down stocks are good for you my opinion and i've been saying this for 11 years now on the air is that most of the people watching this should be excited about lower prices, not higher prices because we're all forced buyers in our retirement accounts so when i'm talking about the nasdaq breaking its 200 day i'm not selling newsletters, i actually would be fine with that because i'll be a buyer and i would rather buy lower than
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higher i think most people will need to reorient people over this if you're over 30% in the market yoi don't understand what your story is, because if you're not you would prefer to have a flat or down year. again, we're not there yet, i'm getting ahead of myself, but that's how i'm thinking about things right now >> i hear you, but it is disconcerting. i think that's a fair word to use, kari, as you watch the nasdaq come under significant selling pressure today again when interest rates are largely behaving if you want to use that word there's been such a correlation, right? the ten-year moves up and the nasdaq moves down. we get it and you're not breaking any news by telling me that at this point however, when you see the nasdaq continue to break down when interest rates are not going up, then i wonder whether you're about to have a paradigm shift and the way we need to think about the valuations and multiples of some of these
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technology stocks. >> well, i think for the time being that connection is broken and that once the really high price and you can't call them multiples because they don't have earnings and the group of stocks began to falter and really that's been many months and in some cases it can get close to a year and, you know, if you look at the chart of zoom media or teledoc and more recently cloud flair or zoom info and snowflake, i mean, they've all come under pressure because the owners of those stockses and people who bought them because they got excited when they started to open their first trading account or they were reading a lot of reddit boards about what are the exciting software names out
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there, people made big profits or then they get scared. as josh pointed out, people looked at a stock that they bought three months ago and it had a rally and now it's below cost and they say to themselves, wow, i think i'd better get out and that has nothing to do with where interest rates are that's just the phenomenon of people getting worried about buying high-priced names where you've got interest rates that will go continue to go up. we know the fed will keep raising. it hasn't even started, right? so it will start we don't know how that's going to affect treasurys, but why wait if you can get out and put the money on the sidelines it means that it will come down and there's a price at which they'll stop going down and we have price targets for most stocks and it could be 75% from their peak, but the smart investors are putting together their lists and deciding this is where i am willing to take that bet and put money into a name that we think three years from now, four years
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from now we'll be making a lot of money >> i go back to josh's point, pete, at least to him the s&p 500 looks fine i think that's just the word that he used it's just a rotation that he's going to feel especially turbulent at times. >> right >> judge >> yeah? >> yeah? >> i want to add one thing to this, and i want to build on what kari just said before we lose the moment. this is so important. >> i like that >> a lot of professionals -- a lot of professionals who run large amounts of money classify themselves as either growth managers or value managers i hate both of those terms i hate the distinction, but whatever that's just what it is and the reason why that matters is because let's say i buy mcdonald's and i'm a bad investor and i overpay for it,
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and i buy it for 30 times earnings and the peer group is selling for 22 and they miss on earnings and the stock price has to adjust and everybody knows mcdonald's will eventually revert down to the 22 times trailing earnings because it's nothing special, right if i'm a growth manager and i commit that sin and i decide i want to sell because i'm wrong there is a manager who is ready to start a new entry because now it's gotten cheap. that's not going to happen as a software as a service company based out of israel selling 70 times next year's revenue where the sell side is modeling 2025 cash flows to come up with the justification for the price they took it public at. that ain't going to work there are no value managers waiting to take that stock in. they might be a hundred points below. i don't even think i'm exaggerating that much so what kari said about that
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conundrum, there's this huge gap between where the value guys are waiting and where the growth guys have to get out of some of this stuff as they get hit with redemptions and it's an uncomfortable place to be. i think that's where we've been for a while now with huge chunks of the nasdaq and again, i don't think it's over and enough damage has been done in certain areas. >> well, it appears to be the case as you watch the tick by tick and the price action. pete, i give it back to you before we take a quick break >> sure. well, i would say this when we're seeing today is an example of what we talked about for a long time and the unbelievable names and like a tesla, in my opinion and the nvidia why are they getting more hit than micron and intel and the other semiconductors because of where the multiples are and
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what's leading the nasdaq down right now, and it's data dog and peloton. a lot of the names that are out there that have an incredible multiple of height and three or more digits or they have no multiple at all because they don't have money yet and those are the stocks that people are going after and these names, we've been talking about this for a long time. i caught a lot of flack in the social media world on peloton which i said it's an expensive clothes hanger because that's what it is they have to make money. these companies that people love so much, whether we use them or not doesn't matter what is their multiple if they've got a multiple those are the names that people attack first when they're nervous in the markets kari, look, i want to come to you on peloton, but i do want to take this quick break first. we have to do that we have to get the break in. the nasdaq is at the lows of the day and rrcaie has her stock summit picks, as well.
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we're back in just two minutes
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practices. the company will cancel $1.7 billion of debt for 66,000 borrowers and pay $145 million to the 40 states that had brought lawsuits republican national committee wants to pull out of the traditional presidential debates. it accuses the non-partisan commission on presidential debates of bias against republicans and says that the group has not responded to its calls for change italy, meantime, honoring the 32 people who died in the costa concordia shipwreck. it marks the tenth anniversary of the disaster. they attended mass at a church that provided shelter to those after the wreck. the costa concordia cruise ship struck a reef and capsized with more than 4200 people onboard. security talks between the u.s. and russia hit a wall and russia says that it will not rule out deploying troops close to the u.s we'll break it all down tonight at 7:00 eastern. scott, i'll send it back to you. rahel, i appreciate that very
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much rahel solomon. let's check the marks as we stay on top of this sell-off particularly on the tech side. the nasdaq is at the lows of the day down 240 points and interest rates not the culprit today because the yield on the ten-year is 172. i'm looking at stocks like nvidia down 4% and some of the larger cap technology stocks are the ones to keep an eye on at this moment. apple is down a percent and google is down we left off our conversation, kari, talking about peloton which i wanted to continue it's gotten hammered, as you know and i don't mean to rub it in or anything like that it's down 80% in the last year we questioned it so many times holders of the stock, do you still believe in it? should you stay in if you got in during the pandemic. you sold completely out of it and not suggesting that it happened today or yesterday, but it happened recently enough they think we should talk about it. yeah
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sure scott, despite the fact that we still love cody, jen and ben, yes, we did sell the stock and part of it is connected to what i had before and the last gains that we had in many names and as we took gains we were looking for losses and we had very few losses we bought peloton well into its decline the first time and when they announced that they were having trouble with shipments, deliveries and the orders were not as high as expected and we look forward and felt that supply chain issues and the cost side would continue to be a factor over the next few quarters and it didn't make sense for us to hold it into 2022 and we could take the loss in '21 we think there's a point at which peloton is going to be a buy. we believe in the connected fitness environment. they're the leader and we didn't
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think that it made sense perhaps have the company struggle over the next two quarters and it has, since we sold it. it is down -- i don't know another 20%, easily and it's falling with the rest of its cohort and it will remain to be seen how long that continue, but yes, that's the answer to the question we did sell it >> you know, i do want to point out as well that there are stocks that are in the green today. it's not all red all over the place. it brings me, pete, to boeing and ford boeing with some positive news for maxx it's coming off of a good year and ford is up 4% as we speak and i wanted to mention that not only for that reason and the fact that you've bought more calls in both and can you tell us about it? >> right this started back in september
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and there were six different hits in september where they were aggressively purchasing ford and the stock was back in the very low teens and it started way back in october, november and december in january, we've had six hits and as a matter of fact a couple yesterday alone and they just continue to come in there, scott. everything is short term, though they really are. they're staying mostly short term and we have one out to march and other than that, they've been focused on the short term because they've been getting the moves. the leverage of the options market when buying 20 to 30,000 options on a clip. today another breakout which is just stunning the highest was at 27 1/2. we're seeing a really, really nice run out of ford someone earlier is talking about where the p-e is now, and it's higher and it's due to the excitement that people have evs specifically with the ford f-150
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and a lot of excitement there. i think that is an interesting one. with boeing, we know the numbers from just the other day, but they started to buy calls once again, scott when we see these giant call buying and when we see 20,000, 50,000 and a lot of different option contracts in the last week or two. they were buying the january 225s they're in the money so people are excited about the macs they have the security side and they have a lot of different areas and aerospace and what they do, and some of the airline stocks are showing a little something like delta and hearing some of the commentary there and that doesn't hurt, as well the combination of that is why we're in both these names and
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extraordinary today, scott >> let's go back to the 100 heat map, guys and zoom in if we're able to do that on the wall back to our headquarters and i would like to see the stocks toward the top left the ones remaining in the green and i know we're talking about a slide in the nasdaq as it's down more than 235 points, and it's hard for me to see them from my vantage point sitting here, and i hopefrom where you're watching you can see them at home you can see some of the chip names and is that lam research >> yes, it is. some of the names that are still in the green today despite an awful lot of sell. you can see just below the second green line. you've got some of those more popular napes in terms of this program, qualcomm, jim lebenthal and google is down and some of those others we'll keep an eye on those, too. kari is up after the break her stock, summit picks for the year ahead don't go anywhere.
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don't go anywhere. we're back after this. well, would you look at that? i really should be retired by now. wish i'd invested when i had the chance... to the moon! ugh. unbelievable.
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it's time for the stock summit that continues today with kari firestone and her picks of 2022 i'll run you through here. let's talk autodesk.
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that's your pick, sdsk >> it's one that we will see positive bookings relative to next year and software companies and we think about their strength in the design field, commercial real estate they're doing lots of restructuring up off the space because of working from home and new configurations we think it sets it up for autodesk to have a very good year in 2022 >> okay. we'll watch sdsk health equity. why did you pick this one? >> that's another stock that was down big last year, down 50% and it's a health savings account company. it leads in that field very poor dynamics with people falling off of the employment ranks last year and now they're coming back. we are back to under 4% unemployment that's very good for health savings accounts interest rates are a real positive for them, as well and
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when people start to commute, that's a small part of the business and we'll be very positive when people start to commute again into cities. >> so you point to two stocks that had disappointing 2021s in autodesk and health equity and the one that did not was the cme group and it's your third pick this year. why? >> yes well, that 25% was good, but it did underperform financials. interest rate platform is a very big part of cme. as rates go higher that builds business the last time i saw fed hike rates it was incrementally extremely good for cme and it's a defensive financial and a growth stock it also plays as a platform for cryptocurrency trading they're not involved in it themselves, but you can play the every side of financial trading with cme and it's a positive so we like it this year
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>>. >> you called your own sector pick controversial because it's tech, but you also exclude apple and microsoft in the way that you're thinking about this tell me more >> yeah. well, we think that apple and microsoft plus and google make up a lot of the s&p, but we don't think that as a group they'll be outperforming the way they have, but if you can say i like technology and excluding those and that's controversial because it's taking out the biggest factors in the field google is in communications, but there are many companies and think about visa and autodesk and some of the large tech names that did not perform skyrocketing last year we think thatbills start to outperform they're not affected by supply chain as much. they don't have the labor issues because they pay high labor costs and the growth is continuing they are continuing to show
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strong demand for all types of hardware and software, products and services like a crm, and so that's where we would pick everybody's talking about financials, energy and industrials, and i just thought it's great to pick a different sector which we believe in >> all right we appreciate that we certainly do. kari is going the extra mile today, too i want you to check her op ed on cnbc.dom she talked about the big name in 2021 and what's ahead for 2022 and she's giving you hints in the way that she's talked about stocks in this program you get a bit more in-depth read on our website krsh go check that out. pete has unusual activity and i noticed the nasdaq giving up 15k. it's down 235 points right n, ow that's a 1.5% decline. that's a 1.5% decline. we're back right after this.
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materials out there. vale was trading around 1550 at the time and they bought 26,000 of the february '16 calls and those are going for about 50 cents and they have earnings outside in february and we've seen a lot of it in freeport and we've seen a lot of it in other names and vale we haven't seen in a while save, nowgoing back to the airlines i talked about boeing and i talked about delta earlier and delta came out with their numbers and spirit is an interesting one and the stock is trading pretty interestingly around 2370 at least at the time of the buying that we've seen there and almost 11,000 of the january '25 calls getting bought 12,000 of those, somebody trying to put something here to see if this stock can't do the beat and beat just like delta did, we'll see what happens, but i am in both these names >> good stuff, pete. appreciate that.
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private equity giant tpg is the first big ipo of 2022. dr. j said he was trying to get an allocation to this one. te uifxtnd to call in ne a lls he did and what you should do. we're back after this.
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today. co-founder of market rebellion coin pom dr. j joins us on the phone. you there? >> yes, indeed, scott. hearing your voice loud and clear. >> good stuff. told viewers yesterday hoping to get an allocation and did, albeit a small one what about it and what will you do with it >> yeah. intended, or was willing to take a much more significant piece, because i liked the fact they were pricing it in the middle of the range, scott and i liked the space. i mean, you know, these private equity firms, you've been quoting numbers all week returns have been phenomenal the fact that they're going to buy out some partners, some investors and things like that, with this capital, i think this one goes from this 9.5 billion dollar valuation to $12 billion valuation quick. not today or tomorrow. but a possibility by june or july of this year even if some of their big investments pan out. so i got the allocation.
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29.5 first trade today was 33 cheering you could probably almost hear it from switzerland and holding on, scott. not selling, and given it's $9.5 billion allocation, options quick. more than happy to sell upside calls taking not stock off the table but risk down in the position. >> all right you get back on the slopes, doc. appreciate you calling in giving the update there talk about it with the committee. jon najarian calling in. in terms of private equity you trimmed blackstone the one i teased earlier said wheat get to it earlier it was a double in 2021. i guess no surprise you decided to take profits here >> yeah. i mean, if you looked at a long-term chasrt, five years of blackstone, in the 20s owned it that long and had an
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incredible run the fact goo tpg going public now. perfect storm for these companies, huge asset valley increases. enormous accumulation of asset fees, hold a lot of cash and able to invest that wisely it's been a great ride it was a big waeight. sold some. great for jon and holders, but it was time for us to sell some. >> all rhtig understand down 6% month to date as we're showing viewers on the screen. a quick break. we'll come back and do "final trades" next. ♪ who would've thought printing...
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final trade? >> visa. visa. >> viacom cvs. >> cme group. >> give you lam research, scott >> thanks for watching good stuff "the exchange" starts now. thank you, scott hi, everybody. a strong session for the reopening trades today and another tough session for tech stocks breaking a three-day winning streak, i'm kelly evans. ahead this hour, three stocks to buy in this environment and how much more pain ahead for the tech trades. nasdaq selling off this afternoon. plus, great resignation. are people leaving the work force or actually starting companies of their own data points toward


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