tv Fast Money Halftime Report CNBC January 28, 2022 12:00pm-1:00pm EST
feelings on both sides >> you should try it out i schedule my fort knox interviews over calendly and my productivity is through the roof >> carl, do you use it >> no. nor will i, although this new world of hybrid work is getting more interesting all of the time guy, we're up 2:15 obviously, session highs and just 15 points back from 4400. enjoy some football this weekend. let's get to the half. ♪ ♪ carl, thanks so much welcome to "the halftime report." i'm scott wapner front and center this hour, just how rocky is the road for your money after another turbulent week for stocks? we're debating with the committee this morning joining me for the hour today, kari firestone, ross brown and john najarian, co-founder of marketrebellion.com. the dow is positive by 220 34,383 two-thirds of a percent.
the s&p up 1 1/3%. that's a gain of 56. the nasdaq is up better than 2%. the russell 2000 who has gotten destroyed firmly in a bear market 1939 just high of one-half of 1 percent and the ten-ier note yield at 178 let's take stock, if you will this week. jon najarian, you told us that you have seen a whole bunch of call buying in the s&p why? >> we have, scott. we've had a crushing amount of put buying for the last several weeks. you and i talked about the iwm, the qqqs, as well. not as much in the skwqqqs even though they have been dropping and now they're starting to reverse and whether it's the csx or the vix, we're not seeing the
same sort of panicked buying that we were ten days ago, a week ago, a couple of days ago so if people wanted to hang their hat on something, perhaps that is something and as far as speculative calls to the upside in the s&p 500, yeah the people that are active in this index, broad market exposure, of course. 500 stocks they seem to be more bottom fishing here, scott, on whether or not we did get to that tradable bottom. i shot you a shot that tom lee had, as far as basing, and we took a little bit of a leg up and now we've been basing on that, and i think that's giving people some -- if not confidence, at least better feelings than they had for the last four days >> yeah. and it's been a dramamine kind of market.
it's been up, down and all around >> yes >> doc mentions tom lee and he calls for violent upside in the next three months. retail sentiments, so bad, he says, it points to that. in our view, the message for markets is much of the bad news is priced in we can see stocks soon stage a sustainable rally. sentiment is now extremely bearish and at extremes that is a contrarian buy signal. what do you make of that do you agree with jim lebenthal who agreed that monday we did put in the bottom? >> well, this is a very important day, technically, scott, because we have not yet broken the lows of monday, and if we hold up and we all know that it's the last ten minutes of the day as we've seen this week that really matters if we can hold here and not start falling through the afternoon off a cliff, that would mean we've gone through the week not breaking those lows and coming in on a friday afternoon with a decent day and
technically, and i know steve weiss would say, oh, well, who cares? but i think it matters that if we can hold today and be up that would be a very good sign going into the weekend there are 235 stocks now with over 4 billion in market cap that are down 35% or more from their 12-month high. that means that over 120 of them are down 50% or more if you can't find some bargains to buy on that list, then i think professional investors really are kissing it good-bye because this is a market that offers you opportunities they might not be the perfect low, but there are many names that are attractive there and they're on both the growth side and value said, i think. in places, yes, tom, i would like you to be correct i would like to see the market go higher. we're not ina recession and i
don't think we're going into a recession. there's liquidity and demand and i think the fed can manage this process, so i would like to believe, and i do think because we're doing some buying that it's a spot today where we can make some moves and move forward. >> now, i remember it was josh brown who told us to keep our eyes out for closing below the 200-day moving average on the nasdaq which we did on friday and we know that ended up pretending for the market. so, josh, take the temperature of the market given the week we had and the damage that we did, the rebound that we had from monday's low and the volatile they we've all experienced and the fed has now spoken and we've had a reversal today and we've seen a lot of markets and i know you read a lot about the markets. what do you think today? >> listen, it's good that i've been in a self-imposed quiet on
social media because i'm disgusted on a daily basis from people that purport to be professionals or people who say outrageous things because they don't have money under management and there's no client when they make outrageous statements and it's getting worse and worse and worse. i'm trying to ignore it and not try to get into altercations with people. i really am doing my best. i don't know how much longer i'll be able to keep all of this inside, but i'll tell you right now. i don't understand all of the hysteria if you say that you don't like the valuations in some of these growth stocks and it's this bubble and it's speculative and then that bubble deflates and the s&p is still within 10% of a record high and is weathering these little mini bubbles being popped everywhere, how is that negative isn't that what you want what are you actually complaining about? you don't like the speculation all of the air comes out they're down 75, 80% and the
bubbles are bursting, but the economy is fine. isn't that a good outcome? isn't that what you're rooting for? put that aside the cathie woods stuff is so over the top and people have done enough using her name to get clicks it's gotten personal at this point in a way that it never should that's a human being that's a person with feelings. you don't have to agree with her. you can bet against her. you don't have to like her investment philosophy. that's a person and they did this with meredith whitney seven or eight years ago and the same template and comes out of obscurity and makes a ton of money with the call and tries to do something bigger and better and gets media attention and can't wait to rip her guts out and i'm watching that play out i don't like it. i have no problem with people betting against an investment strategy and the personal stuff, it's bad and it should stop. last thing, i promise i'm almost
done the buybacks are goingto start now. we've had the damage we've had the technical damage and not every company is a good company and not every company has the balance sheet to support its share price so i don't think you will get the rebound with all of the growth stocks that have been annihilated just automatically get to go back to their highs. i don't think it will go that way. i think the quality names and the companies with the fortress balance sheets and there are many of them all throughout the index are probably the best bet. even if you don't get the biggest bounce out of them, you know that you have the wherewithal to come in and do buying and that's really where the rebound can stick. it will be much tougher for that rebound to stick, and i own some of these companies that were spacs six months ago they don't have support and they don't have enough cash to do buybacks they're too small. i would curb your enthusiasm on the comeback there and it is more bifurcated going forward if we have a recovery
i think it will be narrower than a lot of people would like and it's not going to be fun for people that have loaded up on unprofitable companies, but that's just how i see it >> let me ask you this you said something, everything you said was interesting and one thing that jumped out to me immediately was when you said all of the air comes out those are your words regarding the bubble things that have popped in your words do you really think, has all of the air come out of those areas or does it still need to come from them and that goes to the question -- >> okay. >> that really matters most to people as to whether you think we did put a bottom in on monday i want to know if you think we did. i want you to answer that question and then whether you think that all of the air has come out of the frothiest areas of the market. >> well, i -- i can't tell you definitively they think we've seen the bottom because we really are probably in for
another few weeks of inflation data that the market is going to look at that and say sixth rate hike and a seventh rate hike and we're still in that phase which i think ultimately will be wrong and i can't tell you that the market won't have negative reactions to that stock, but ask the question if all of the air has come out you know i'm not a robinhood bull i've been pretty negative on the stock since it was 70, but i looked at it last night when it was selling off and it was ten bucks in the after market, and you look at a market cap as $9 billion and than you see their press release they put out about their net capital which i think is close to $3 billion so you say to yourself, wait a minute you're telling me that goldman sachs can do a robinhood buyout for $6 billion and they're not talking about it i think there are a lot of situations like that where you don't have to like the company, but you just look at, like, wait a minute some of these things are a super
low risk for an acquisition. we just witnessed a massive deal with microsoft buying activision if you think that's the last one we will see in q1 with the nasdaq down 19% i think you'd be wrong there. i think you're going to see a lot more so there's a certain point where maybe not all of the air has come out, judge, but too much has come out to still want to press those bets not in all cases, but i think in some very well known names >> good to get your thoughts on that, and i wanted to pin you down on where you think we are i think people want to hear from you. >> amy, what do you think? we haven't heard from you in a whil while and it has been quite a week >> i don't want to make that call i think there's volatility still to come and inflation data will
run hotter and you'll get concerns about the fed and the fed has a hard job in front of it, been that it hasn't tried to do in a long time and it has to bring inflation down a little bit and it doesn't want to cause a recession or financial instability. so i think we are going to be in a choppy market, and i do think that there is some still frothy valuation, but the liquidity is great as josh said, companies have record levels of cash consumers still have record levels of cash i don't think we're going into a recession and i think you have to be very selective here, but there are opportunities to make money from a long-term perspective. the other thing i will add which i wasn't going to, but i worked with cathie for over ten years at alliance first very closely, and i agree with what josh is saying she is a great person and she works really hard on behalf of her clients. so since some of this is getting personal and it's not right.
>> okay. we appreciate those comments so much of what we're talking about, at the end of the day comes down to whether jay powell can land the fed softly or not, of course, the fed chair now that there's this new fed regime that the fed has spoken and spoken loudly and jay powell will be tested in the weeks ahead. our senior economics reporter steve liesman is joining us now. that's really what it comes down to, whether powell can pull this off and it ain't going to be easy and i'm curious as to what you think based on your reporting and those who you talk to as to whether you think that they can be successful in this >> you know, let me first before i answer this question i listened to the show the entire week and learned a lot, obviously, there are some bullish members of your commit, scott, rotating in and out, and i started to think about, well is there a bullish scenario here for the economy and the fed? and honestly i went to go look for it, and i re-read powell's
transcript from the press conference the other day, and he does have -- there is a bullish scenario there say soft landing scenario here, and let me walk you through how that would happen. in the first instance, there is no scenario that i can imagine where the fed doesn't tighten. the fed almost certainly will do multiple rate hikes at the beginning here and then what powell is looking for here are supply chain problems and the economic effects of the virus begin to ease. you're not pumping as much money into the economy, and you also have some base effects and all of those things that come together and they could in the second half of the year work to bring down inflation the question is not does the fed tighten in a way that doesn't cause the job market to slow and the economy to slow, and if all of those things come together there is that possibility. when i listen to powell i'm not sure he's selling that scenario.
i think he's very agnostic about it and what he really keeps saying we'll do what needs to be done to keep inflation done and that is a scenario that lays out and it is a scenario that for your bulls on your committee if that's what they want to hang their hat on, i don't think they can do it from several fed tightenings this year. >> so a couple of things here. maybe he doesn't want to over promise and under deliver i.e., and it turns out not transitory and he has to basically publicly admit that he was wrong in not too many words and you know where i'm going with that. maybe that's a bit of that he'd rather err on the side of caution there. j.p. morgan now sees five rate hikes here bank of america is at seven. neel kashkari, the minnesota fed
today said, quote, is it conceivable we can move in the spring and then pause and see how the economy evolves? that's conceivable i don't want to pre-judge it and then said the fed needs to tighten, quote, a little bit how does that square with everything, steve? >> you know, neel is among the more dovish members. i think it squares -- i have another chart on the fed approach i think powell will be steady here i think he will do a couple of hikes and keep -- i don't think a 50 is on the table i don't think powell means to scare markets here he will put the balance sheet on autopilot and let it run on the bank ground and he'll escalate only if inflation does not decline. i think five and serve are ambi ambitious calls for the federal reserve. i'm watching the market, the futures market they're not priced for that. they're priced for five this year i think seven is ambitious and that makes sense, so i don't --
i don't really think that -- go ahead. >> no, no, no. please finish, steve i thought you wrapped up go ahead >> no, i think that what the fed is going to do at least initially is what it would do to normalize policy in any event. if you didn't have an inflation problem and you had the gdp numbers and forecast for 3%, 4% this year, you'd be raising rates anyway so i don't think initially the fed will do any more than it would normally do to bring the funds rate back into where it is and policy overall the debate is on the table and it's soft landing or hard landing and it's baked in the cake there is a possibility here for a soft landing with all of those factors coming together to bring down inflation >> we're looking at the yield
curve right next to your head as you were speaking, and you have to believe also, steve, that powell has got to take some sort of comfort in the fact that he knows his pipes, so to speak, still matter and they appear to be working and working just fine the two year has moved a lot, right? so the market in some respects is doing a lot of the fed's lifting for it so that it may not have to do as much as the market fears it might, if the market keeps cooperating, so to speak. not from only a rate standpoint, but the equity market pulled back, too, in wiping out some of the most excessive froth pockets in the market that all plays into part of the strategy of why jawboning is jawboning >> i think that's right, scott, and i probably have a bunch of screens on my computer here that no other traders would ever have, which is i have a screen
here that tells me how much the two-year has moved on 1130 he's gotten 70 basis points of tightening from the two year since he made that speech. there was a little bit more before that. he hasn't raised rates at all. so in any event powell can take at least some comfort. the transmission mechanism of monetary policy is working i don't think you can get the public to admit that he wants the stock market to decline, but the fact that he's got 70 basis points of tightening, he's got five rate hikes priced into the market he has balance sheet reduction priced into the market and he lost what he lost in the stock market, i don't think he's upset by that. i can't speak for him, i just don't think he's upset by that yeah i don't think he's upset with the most frothy parts of the market correcting. the last thing he wants to do is inflate an asset bubble any more than critics suggest he already
has, but then if you take it in the most speculative parts of the market that's where you get potentially the most damage if you have deflation taking place within those areas and he's gotten that, and you have to believe that he's okay with that >> that's why i wish to be withdrawn with some of the stimulus earlier and tightened up on the guidance a little bit earlier and not had the market in the fall believing they were going to go into 2022 with a free -- a free pass on fed tightening i wish that wasn't the case, but that being the case and being where we are now, the extent to which some of that froth comes out of the market gives the fed more flexibility it allows me to talk more hawkish now and then withdraw that hawkishness and withdraw that later on if indeed you do get some cooperation from inflation. look, i know there are people out there that say it will be bad and the fed will have to hit
the breaks hard and when i say hit the brakes hard, and do more than what it would otherwise do to normalize rates and that's possible that's on the table powell made clear he would do it, but right now not in the worst position and now it's up to the numbers and inflation and getting those supply side things clear, getting the virus done. a little help from the dollar, and a little help from china re-opening up from omicron all of that is possible. i didn't want to end this very tumultuous week, scott, without the idea out there that there is a path here to a soft landing. >> yeah. i didn't look, maybe kashkari is saying the quiet part out loud in some respects and maybe powell hopes that he can get to that point, and it remains to be seen we'll see what happens with inflation. steve, awesome stuff that's steve lies mman, our seno economics reporter josh, you were the one
suggesting that the fed would do the fed work for it and maybe that jay powell will not end up being as a goesive as the worst of the fears are say if the pendulum is at seven hikes is the most extreme point of view as bank of america puts forth today then maybe we don't get to near that point if jay powell can actually orchestrate this >> you know, one of the things that gets lost when you wake up in the morning at 6:00 a.m. and you see the futures -- you see dow futures down triple digits which used to be a big deal. it's less of a big deal these days and you see a negative 300 dow and here we go again it starts to -- it starts to make you forget that we're in a massive expansion right now, and the consumer is spending and they may be telling the confidence surveys and corporate balance sheets have never been in the shape they're in. profit margins even with the fact that they god forbid have
to pay people more money corporate profit margins are still elevated relative to most in record the history. you have so much of a tailwind still coming from the real economy regardless of what goes on in stocks y so i think it's easy to forget that because we shouldn't because the reason that we're talking about tightening and the reason we're curtailing these emergency stimulus measures is because we can and should, and the market is doing some of the fed's work for it in the form of this kind of multiple compression, mini bubble's bursting, even in crypto and not in nfts yet. give that five minutes that's the stuff that should take place and he doesn't even necessarily have to be involved with it. we'll do it ourselves and that's the power of that kind of signaling, and i agree with mr. liesman. it's nice that that still works and then you'll get those rate hikes, and one last thing. go back to 1994. you had this tightening cycle start and spook everybody.
you had a huge correction in the s&p after the first 25 basis points, which by the way, was there no dot cloud, it came out of nowhere spooked the market, spooked treasurys and spooked stocks it fell again and not as much and then they did a 50 basis point rate hike and stocks rallied. why did they rally because everybody remembered, things are actually really good and that's why rates are going up and don't let me remind you, that cycle started from 6% not 0% and we all managed to live through the '90s okay. >> jon najarian, you do get a sense of the fragility of the market through the way the companies are reporting earnings and whether they're being rewarded or not and if they're being rewarded than they would be during a period of time and that brings me it apple which by all accounts had an incredible earnings report and jim was on the network earlier today
talking to the gang, and it was, like, wow. this was an unbelievable report. >> katie huberty out, talking about the clean beat that it was. apple is not off to the races today. to me that's a statement of where sentiment is and where we may be going in the more near-term of the market. what do you think? do you think there's anything to that, doc? >> well, sure, scott the numbers were blow-out numbers. of course, $124 billion, record revenue, nearly 800 million subscriptions out there, paid subscribers to apple products and so forth the wearables alone, they said were now a fortune 100 company i mean, was there anything not perfect in this report including tim cook saying that supply chain issues are being worked out by him working
directly with the suppliers. i think if it were not for the overall environment that we've seen this week, we would have seen probably double the move that we're seeing right now. in other words, instead of to 167, i think we would have been up there toward 175, but you have to trade the market you have, not the one you want, scott. so what i'm doing right now, i've rolled up calls in apple. i have now pushed out into february and april, both my longs and my short calls in apple, and i think we're going to see a lot more caterpillars and wdcs where they beat top line, bottom line, but they have to give somewhat weak guidance and those companies are going to be punished, and those are the ones you want to pick up on dips i don't think the jumps will be as strong. i think the dips will still be strong and those are the ones that i'll try to feast on, scott. i was trading both those names i
just mentioned, western digital, cat, a few others here that i thought dipped a little too much i think we'll get some opportunities like that and lastly, i'll just say, when we talk about retail traders. you're really talking about brokers, not retail traders. brokers that are pulling the trigger because the customers are calling up and they're nervous and they're saying get me out or buy this, buy that that's not a retail trader that is an investor, and retail traders are actually feasting on this, trust me i talked to a lot of them, i see a lot of them and not every trader is a winner, of course, and this is a great setup for both upside and down side, this is that trader, not investor time >> i mean, and again, we're looking at apple and here's up nine bucks and better than 5% obviously, but it wasn't tha way early on and it was much less than that and we're getting a pickup in the nasdaq so naturally, apple is picking
up i appreciate that, doc amy raskin, you trimmed apple and are you regretting the fact you did so >> today i am. no, we still own it. i think it's a phenomenal company, obviously the call last night was amazing on every level i just think they got a big benefit from the pandemic. china was really strong for them and china is still on lockdown and they're probably still getting benefit from that. i just think it's a great company and i don't think it will be a great stock for the next decade. we're very long term investors again, we still have a position, but at 2.6 trillion, numbers kicks in and it's not cheap for basically it's an iphone company. >> amy, that's never -- >> go ahead, jon >> that's never been the case. the law of large numbers does
not apply to the situation you're describing though, amy. you can dislike the stock. we can disagree like that, but the law of large numbers, that's not what that law is >> you have 1.8 billion. you have to come up with a different reason to not like it. >> you have 1.8 billion devices out there, apple devices out there. so where does that go to i mean, it certainly can go up i think it will go up, but it will not go up, by the same magnitude by the same decade, just mathematically. >> true, because they didn't have many of these things. they didn't have those >> it's an interesting statement. controversial and provocative, nonetheless, amy apple's stock will be a disappointment for the next decade that's a statement you don't hear very often on the network
saying it will be a disappointment over the next decade it's still, kari you are underweight, though, too. do you agree with amy? >> first of all, almost everyone is underweight apple because it's such a large percent of the s&p. if you're overweight apple and google that will be a fifth of your portfolio we have a lot of apple i understand that it's such a big company and it's hard to see that rate of growth, but think about it it represents today, again, it's the market and it had a great quarter and $124 billion you realize for a quarter, coca-cola does 40 billion a year, procter & gamble does 80 billion a year j.p. morgan, huge j.p. morgan does as much in a year as apple does in a quarter. they're adding to cash at the rate that most people, the
biggest s&p companies have revenues for the year. so i think you have to give them enormous credit and what they have signalled and we know is that this quarter is the best of the year and that the following quarters are not going to be as strong and the reason is less enthusiasm for the stock today is basically because you're not going to see that level of gains growth in profits and revenue over the next few quarters, but it's a very good sign, on the supply side they talked about how they were able to get product that they want they felt this things were resolving. it may be just because bigger companies had more power, but i think that said a lot about inflation perhaps coming down. we know that steel, iron ore, trucks use cars and rentals are all coming down in price and to the extent that a technology company with great leverage and huge margins can put up those numbers is a good sign for the
market and for the economy, resolving some of these problems that we've had with omicron. so i think that's what you're seeing in the market today the fact that it isn't up as much as one might have expected. i think that's fine. it lives in its own orbit. people use it as the equity money market fund. it stands for something else today because of its size, but very impressive. >> let's bring in brian belski, bm achieve investment strategist to weigh in on where things stand and where we might be going from here. brian, it's good to see you again. welcome back thanks so much for having us. >> it's been a heck of a week. are you still sticking with 5300 for the end of the year? are you wavering on that given what lies ahead on this new fed regime >> no, we're not i'll throw a number at you 231. there's 231 trading days left. we are 19 days into 2022 you quoted tom lee's great note today. the stocks go down like an elevator and up like an
escalator, usually we've seen that stocks can go up with they correct like an elevator, as well and so karen was talking about how important monday's low is, and if you're an old timer it are it is absolutely true. there are some old timers that i've been talking to 30 years. >> are you calling me an old timer? >> no, i'm not i'm actually an old timer because i can't tell you -- >> that's all right. >> i can't tell you how many people have come out of the woodwork that talk about the third wave coming down, 4100 and all of this kind of stuff, but equally though that i'm getting bashed on social media and getting noteds in my bloomberg and my personal e-mail telling me that i'm crazy and then i also get these amazing e-mails from people that i've known for 30 years saying give me a shopping list of what to buy and these are the brokers that are buying things for their high net worth people
i think the key thing that has not been talked about today, but should be even more is that the market has been discriminating, and when the market becomes indiscriminate, that's when you have to worry and that's when the best buying opportunities come in. so to date, the market for the most part, scott, has been discriminate and it takes care of the high multiple stocks and into friday and the beginning of monday and that's what made that low and that's what created the opportunity. so i think holding that low on a near-termbasis is exceedingly important. >> yeah, i'm thinking of all of the things you and said where your target is, you are assuming, you'd have to be, that jay powell will be able to land the plane even if he doesn't have the most detailed map, right? and he doesn't have someone guiding him the whole way, right? guidance is gone and they'll have to sort of wing it based on what the scenario is that's not always the easiest
place to be able to land something. you seem to be giving him wholeheartedly the benefit of the doubt to be able to do so. >> i am. he's done a wonderful job. in life sometimes we have to be humble and he makes mistakes and he was too aggressive in 2018 and he learned from that i think he'll do a very good job threading the needle, and if you actually listened to the press conference and hear how he maneuvered through the questions, how many times did we hear reporters say it will be a 50 basis point cut or a 50 basis point raise. everyone is convinced now. i don't see it, and i think it's going to be somewhere in between, and i don't think it will be five i think our great economics department is saying four. i think actually the trend that we've been talking about for several months now and we can see the supply glut as inflation is already slowing and we're not recognizing it because we are so caught up in today's data. even today's data was showing on
a month over month basis and that's really positive >> yeah. >> i've got to cut it a little bit short with you today, but we'll have you back soon i appreciate it. i have to go to a break. brian belski, coming up we'll have a wleost ho hof committee moves and dr. j. has moves and we're back right after this. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate.
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welcome back i'm rahel solomon and here is our cnbc news update at this hour the biden administration is reportedly considering targeted sanctions against russia if it attacks ukraine. the wall street journal reports it will target bank, state companies and key imports. at new york's st. patrick's qaa theed rat a funeral was held for a police officer shot and killed in the line of duty last week officer jason rivera died while responding to a domestic disturbance call fellow officer wilbert mora later died his services will be held next week pennsylvania's mail-in voting law was found unconstitutional by a state court republican lawmakers filed a challenge. the democratic governor will now likely appeal to the state supreme court. the white house has a new resident willow the cat making herself
comfortable. the first lady met the 2-year-old tabby during a 2022 election willow jumped on the stage and interrupted her remarks, apparently named after the first lady's hometown of willow grove, p.a. i'll send it back to you >> i told you the investment committee will mack a lot of moves. kari bought nor netflix. are you talking with ackman? what's going on here, kar? >> oh, definitely. we've owned the stock not that long, but we added to it and i'll tell you a couple of key points during the pandemic and the stock is selling for the same price as it was before the pandemic, they added over 80 million subscribers. if you take those 80 million and you say they pay about 130 a year that's over $10 billion of incremental revenue. they haven't lost that revenue because thepandemic is ending. they still have 10 billion is
about what they spent on content. so accelerated adoption of netflix for sure and it's come down to 27 or less times next year's earnings and we think this is a very attractive entry point. >> okay. i should note you also bought more of booking holdings amy, you have a new buy and josh brown, pay close attention because amy is buying berkshire hathaway amy? >> we think this is a defensive play with the mix of businesses that are well suited to the macro environment that we're heading into or that we're in. so we like an attractive valuation. obviously well-run businesses. we think it's the right holding for this market. you bought more verizon. you bought more goldman sachs. i'm assuming using the pullback in those names to buy more there.
you trimmed j.p. morgan, i just don't hear about that many people who are looking to get away from j.p. morgan. why you? >> we trimmed j.p. morgan and put it into goldman sachs. i thought it was pretty sloppy and the increase in expenses bothered me and i'm not sure that they're getting the return on their investment in technology right now goldman is cheaper and we think they don't have the premium that j.p. morgan does and we like it better here so we just trimmed a little j.p. morgan and put it into goldman we did it to verizon and a few other defense of plays and we also are picking our spots with higher beta names, as well >> i appreciate the updates there. we'll take a break when we come back, what do you do if you're steve weiss and one of your stocks has gotten absolutely obliterated thi eks he's going to call in from
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weiss? >> so i'm at a construction site in london, scott nice of you po poto point it ou. it was way too big they took numbers down from this year from 630, and 640 to 480. so just because the shares have corrected, it doesn't mean they've gotten cheaper as a matter of fact, they deserve the premium multiple and they continued to raise every quarter and when you raise this much you deserve a p.e. discount so i think the stock is overvalued and i think maybe the market bounce, maybe monday, maybe not. rega regardless, 20% of their earnings come from apple and that's because apple's reusing equipment. i also believe there will be some double ordering in the semis and so i'm going to be more cautious on the semis and that's reflected so i'm just going -- i'm staying
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you booked a sunny vrbo ski chalet. with endless views of snow-covered peaks. (laughter) a stove that inspires magnificent hot cocoa. and a perfect ski-in ski-out. but the thing they'll remember forever? grandpa coming out of retirement to give a few ski lessons. the time to plan your get together is now. find it on vrbo. unusual activity tell us. >> all right, scott. jets
this is, of course, the airline etf jets the calls expire out there in june paying just $0.80 for them i love the leverage you get with this one i love that i get almost five months out sfwoot future for the trade. so that's first one. second one, data dog was $198. traded down into the 120s today. and while it did that, we noticed huge buying of the june 1, '40 calls. stock has already come back from 122, i think on the lows to about 134 i like the up side i'm holding onto that one. and selling up side calls against it >> doc, got ufstf. thank you. final trades coming up next. i m, but i'm as busy as ever. careful now. nice! you got it. and thanks to voya, i'm confident about my future. oh dad, the twins are now... ...vegan. i know, i got 'em some of those plant burgers. - nice! - yeah. voya provides guidance for the right investments
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quick before final trades. i'm mad i didn't think of this myself someone texted me and said how can amy by buying berkshire and be negative apple when apple is berkshire's number one position? that doesn't make sense to me. it doesn't make sense to them, and now that i think about it, it doesn't make sense to me either >> well, i think berkshire has a lot of positions i think apple is a big position for them they have a lot of businesses that are well-suited in this macro economic environment berkshire is much cheaper than apple. you're getting apple for a little bit of a discount through berkshire. so i think berkshire the entire market cap is $650 billion versus apple at 2.6 billion. i think there's from a stock perspective, there's more runway there. >> okay. give me a quick name for a final trade and that's all i got a go
>> kai >> okay. carrie, just a name. >> american express. >> josh? >> aos great earnings >> doc >> norwegian cruiselines nclh, scott. >> that has nothing to do with the shot of yours today, i presume. nonetheless, i'm seeing a tie-in have a good weekend. "the exchange" starts right now. >> i'm kelly evans the whole world is wondering whether this upside reversal will hold to the close the dow down more than 350 points the lows we're now positive the nasdaq higher. we'll look at the key take aways from tech earns and see how next week's results could impact the market plus biotech has been a horrible bet lately the xpi and ibb are both down about
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