tv Fast Money Halftime Report CNBC February 1, 2022 12:00pm-1:00pm EST
off of its 52-week high, but then 60% off the low where does it go from here carl, we will have to see. >> yeah. we obviously watch google, as well paypal and other names a i lot to get to. let's get to the half with emily. >> and welcome to "the halftime report." i'm melissa lee in for scott wapner the s&p coming off the worst levels since march 2020. we'll debate the best strategies for your money and get you ready for the wave of mega-cap earnings beginning with alphabet after the bell today investment committee, steve link, and jon najarian co-founder of market rebellion.com. something we haven't seen so far this year. we have the dow up barrettly 19
gains and the s&p 500 up, and this has basically flat lined as we watch the ten-year yield hover around 1.81% have we seen the worst of this sell-off, stephanie? what do you think? >> i don't really know, mel, and welcome to the show. it's great to have you i'm trying to ignore the day to day volatility i'm trying to focus on fundamentals, both from the economic data that we're getting as well as earnings and we're in the thick of it in terms of earnings, and i love it because we're learning all kinds of things and i'm trying to use the distortions in the volatility, in the market to look for opportunity. so from the economic point of view we have a good ism number and we're 20 months in a row, by the way, of above 50 that's expansion the prices paid was very hot so inflation is alive and well. the jolts number is up 65% year over year. the first quarter, we know is slow because of omicron and also
supply chain issues. and so we'll see a 2%, 3%, as we hopefully get through omicron and we get more easing in the supply chain you start to see better growth, 3%, 4%, maybe more than that, and if the fed is under control and doesn't go crazy, you'll see about that for the remainder of the year that's why i do have more cyclicals and re-opens and more value names in my portfolio than defensive growth that's just on the economics side and the data points there on the earnings side we've gotten a whole host of companies and they're pretty decent and some of them are selling off and i'm making my shopping list and this is why i have extra cash, and we'll get to the buys later and some of the names on my shopping list and ibm has the best number in a decade and it has a 5% dividend yield. j&j. it's consistent double digit and a strong med tech business
that's part of the re-opening as utilization rates improve and they're part of the consumer and what can you ask for at 16 times at a 6-2 yield american express beat on earnings, revenues, net revenue income and they increased the dividend and they're guiding 18% to 20% revenue growth and that stock trades at 15.5 times you get the point. the messy one, ge and boeing, you have to sift through that noise and think the free cash flow numbers of both companies was very impressive and that's what i'm looking for at this stage in the game of those companies. there's a whole litany of names and you have to use the volatility in the marketplace and i don't know if i'm at the bottom or not and a lot of it will be dependent on the fed and that sort thing and i'm trying to concentrate where i'm seeing real value >> the signs have been pretty good from earnings season, jason. we had apple and microsoft today alone we had ups and cabot
being raised and tremendous gains on those two names, jason. what are we so worried about if we are and do you think that we've seen worst of it i understand that requires a crystal ball that none of us have, otherwise we would not be here, but if you had your druthers, would you say we are probably through the worst of it >> yeah. i hope we are, mel i really do. obviously, really strong prints as you mentioned from microsoft last week as well as apple that service bellwethers of the market because they represent a lot of the market. i'm looking at the macro backdrop and a gdp of 6.9% and a lot of that was inventory driven i am still concerned about supply chains and i'm concerned about the cpi that we saw recently and how inflation looks for the rest of the year i hope it's moderating and i hope it potentially is and wage
calls and shelter calls, but i will say this from a fed monetary perspective i think there have been folks that have been caught offsides and looking at this cycle and moving from one, you know, the tapering to a tightening cycle is a very different marketplace and seeking value. so i do think there's some volatility ahead as we continue to embrace this newic soel and managing inflation supply chains, but there is upside. as you said, earnings have been relatively strong. i do think we'll have a strong climb from google later on this evening and i think amazon will be strong, as well and that will be good for the market time will tell, but i've been stuck in gear for some time from a neutral perspective and just kind of evaluating what our next move from a market perspective >> doc, do you think we've seen worst of it? >> yeah, i do, mel we're always concentrating >> oh, sorry
>> dr. j. >> okay. it sounded sort of similar, mel. sorry about that pete and i are always looking for those three "vs," volume, volatility and velocity. we saw that last week and we traded 63, 65 million option contracts, mel and about 20 million more contracts versus the average daily volume so far in 2022 which is again at a record pace. so do i think that that signaled a washout and do i think that signaled that it's going to be a tradable bottom? i do do we have to re-test it my technicians say on one side yes, we always retest and on the other side i think a lot of the justification jason was spot on. you had microsoft justifying, apple justifying, today, exxon,
mobile and ups justifying and i think we'll be fine and we are probable washed out. we are two and a half dollars, maybe less from the 200 day and the qqq, mel i think that's a level that will be very interesting to watch because, obviously, since it's above us that's resistance. if we break through it and stay through it for more than a day, then i think we have our answer. >> you know, josh brown, just to be clear mr. josh brown downtown, a lot of people out there are watching the recent gains in the markets particularly in some of the bombed-out names and the high-growth, high-valuation names and they're thinking, did i miss that bottom here. are you better off being earlier or late like your christmas decorations behind you >> it's winter wonderland. it's not christmas >> winter wonderland
i'm glad you asked that question because i have a very strong take here. i think what we have to consider is the market of stocks, different components of the market will act differently going forward. we've had guests on the show talking about everything rallies and broad-based melt-ups and some of those calls actually happened, but like, in this kind of environment it's unrealistic to think that a stock you bought at 300 that's now at 120 and relies on 0% interest rates to be attractive is going to get back to 300 even if the spx takes out a new all-time high. so i think you'll have this bifurcation. i talked about it on the show last week in that you'll have high-quality companies with strong balance sheets and the ability to raise prices on consumers and pass the higher cost through the ability to attract employees
and pay higher wages and the ability to do business globally. these are going to be the stocks that do better and then you're going to have kind of these experimental fringe, innovative companies where they do have access to low-cost capital for years and years to come and are not expecting to see actual cash flows. i think those stocks will have a tough time getting back to where they were. so a big part of the market may have bottomed, but there's a very acute need to remember that not all stocks are going to be treated equal going forward. so when you look at, like, ups, it gaps up to an all-time record high up 15% after earnings and look at the reaction in apple, fedex. you've got companies that are thriving in this environment that's a very different story from, let's say a biotech tech company that has three equity
raises coming in the next three years to get from phase one to phase 2. these names are just going to be treated differently and that's not going to be a disaster for the market and the group of companies that i talked about being in a good position right now comprise the majority of market cap weighting in the russell 1000 >> not a lot of people are getting back to where they were if you were looking for a trade, dr. j. there is a trade in that we're in for a reversal that the market is oversold and they will bounce i'm wondering if you're in any of these name, doc, for that >> for the most part, mel, no, i'm not. do i believe in a tradable bounce yes, i do, but i'm -- what i'm
looking for is, where are the institutions with the big sirjs of volume that we spoke about and those surges came at the bottom of these recent ranges. it saw people basically trading up the trading cards and walking away that's what i want to see and i saw that in a number of cases and i saw that at apple and 144 or whatever it was people don't just want to talk about those stocks they want to find out, what about the rest of these? look at where we are now with the ten-year rate. the two-year is doing all the work josh has mentioned this numerous times that the two-year is doing the work for the fed it's a combination of the two-year and whether you want to call them bond vigilantes or anything else, the fed is able to jawbone and thenwe see what
happens in march and whether or not it's 25 basis points or more i suspect we'll see three 25 basis point moves, mel, and if that is indeed the way we play out. bounce yeah you will see a bounce and you will see them continuing from lower left to upper right. if, on the other hand they overstep and they go too far, too fast and they want to hit it with a club too hard that's the risk and the fed knows that's the risk and that's why they're talking right now and we switch from talking the talk to walking the walk in march, mel. >> let's get to the moves you're making steph. apple, you're buying some more here why now? >> i started and i've owned it for a very long time it's 7% of my benchmark and it's big and i've been under weight for a very long time and after thanksgiving i started adding on weakness and it kind of adds like a defensive technology
name, right? with 202 billion in dcash, i think they'll increase the dividend from 5% to 7% they can they can buy a ton of stock. 2 to 3% of the shares outstanding and i think they will that's the defensive nature. obviously we know about the quarter and it was very strong services had a real shot at accelerating this year driven by advertisements and driven by the app store and cloud. these are all trends that we've been talking about for years on end, but i think it will gain more momentum this year and 10q came out yesterday and i feel a really good about a 42% gross margin being sustainable 29 times is not exactly cheap, and i do like the defensive characteristics. i am now market weight the name. i'm underweight tech in general. so i'm looking for quality tech that is on jail so i added to an xpi after a phenomenal quarter
and then xpi had a terrific quarter and then broadcom. i'm trying to find quality names that have good end markets, momentum and better valuation given the pullback >> dr. j i want to go to you because you're making moves in casinos and airlines >> yeah. we've been buying, mel, for the last two weeks both jets as well as a number of individual airlines that we've traded, everything from delta to united to american to jetblue, but holding on to jets it's now moved up from 1871 just about ten days ago to the upside broad other ma, airline, etf and we're seeing a surge in the areas. whether it's a re-opening play like caesar's. we're seeing that today, mel whether it was many of those same gaming companies last week and the week before, we are
seeing that whether adele or does not do her residency, mel, i think an awful lot of people are going out there and that is going to be a significant driver, and we have the pro bowl this weekend and pete and i will be out there covering the super bowl next week for peacock, and a number of other streaming services so i think super bowl, you couldn't have had a better setup for the super bowl as well as for vegas than what has happened in the last two week, mel. these games have been so exciting >> yeah. jason snipe, i see that you haven't made any moves, per se, but are there things on your shopping list at this point? >> yeah. so for me the way i'm looking at this year and the bar bell a prech going in is wto this yeard
healthcare has underperformed and it is still down 7% and we are looking for that return on elected surgeries which hopefully as this variant continues to evade around the northeast and across the country, healthcare has tailwinds to grow from here and then as we look at tech, mega-cap tech and obviously looking at the numbers as i referenced earlier with apple and microsoft. microsoft is an opportunity for us here, and i think it's a little over 10% its 52-week high and we really like the activision blizzard deal there are some names here they think we're looking at and also the other piece is smh the semi space has gotten hammered earlier in this year down 15% and qualcomm is one that we really like here so those are some of the names and areas that we see as
opportunity here in the short run. >> yeah. and in the short run we are bracing for a lot more mega-cap tech earnings and alphabet is reporting after the bell today issue jo, you own this one so what are you expecting? what do you want to hear >> if you look at the last quarter they reported it was a revelation this say company that i think got eight subsidiaries doing over $1 billion or more. i think it's the only company in the s&p 500 that can claim that. it's just extraordinary and kind of becoming a berkshire of the digital age. the one overhang with this story right now is the transition from cookies which is going to be a global thing over to whatever the new defacto standard is for tracking users and selling data to marketers it's unclear that alphabet or
google has successfully figured that out so i think that will be an area that there are questions from the analysts and that will be something that i'll be listening for, but i can't imagine you'll see anything, but continued strength from the cloud unit, from youtube, from surgeon general and as i've been talking about for a year and a half, google has something that a lot of fanss don't which is a re-opening component most travel starts with the google search, for example, and there's associated ad revenue for that travel is one of the biggest contributors for ad revenue for all of google search properties. i think the stock is undervalued and i think it has the ability to outperform most of the large-cap nasdaq names in '22. so fingers crossed we'll see what happens >> steph, what areio you looking at in terms of alphabet and josh mentioned travel and ad revenue and how that tracks? >> yeah.
so i recently sold it. i made tremendous money on it. just last year alone was 60% and i took my gains and added to facebook so facebook is my only faang name i only own two faangs, apple and facebook on alphabet, i think it will be fine i really do. i think it will be strong and i think they will see momentum in ads for sure travel travel is 15% of search. so it's meaningful as josh mentioned, but i do wonder how they're going to focus on opex, expenses and general and they overspent to grow, by the way and it's actually reaped a lot of rewards since then, and i wonder if you'll get the operating leverage over the last several quarters and we're all watching cloud and the momentum they're doing and microsoft had acceleration let's hear the commentary there.
great story and great company. i just prefer other faangs >> steph is buying facebook. john sold his position a few months ago so dr. j, what are you looking for in term was earnings meta, as miit is known now, is reporting tomorrow. >> the reason we got out of there was they had so many uncertainties and they also had investigative issues as well as, of course, congressional testimony that didn't exactly go so well, so we were out of it in about 340. i have not fully reloaded and i've traded it since, mel, but i'm not in the stock right now i applaud steph for having the guts to get into it. i have not seen the institutional impetus for me to get back into the stock other than just to trade it. so what do they need to do they really need to show us how they're going to keep the company together, quite frankly, mel, because they're going to be continued calls just like josh
mentioned about some regulatory uncertainty with google. same thing here. people know the power that those guys have and how long did they told that much of the internet and whether or not they break them up. if they do i'd be more interested, mel. >> i neil like that's been a cloud that's hung over, face book, forever, bakley and this is one of those unknowns that people seem to accept. i personally want to hear more about the meta in meta, jason and what those plans are and when that will be monetized. if you were forced to choose, jason, meta or alphabet right now? that's a good one. i would say facebook is trading at 22 times. they benefitted from controversy and i hear jon and his point and the regulatory headwinds and
that's always been in their face for a long time, i should say, but i actually like google here. as josh pointed out cloud and there's a lot of catalyst and there is a view of where their enterprise spin is on the vr and ar, but i think google is the one here although its had a great year last year as steph mentioned earlier up 65% in 2021, but yeah, i like google. google is the one for me >> all right we've got a flood of earnings after the bell gm, paypal, starbucks. among them, all three are well off their highs and we'll get the trade ahead of the results the trade ahead of the results halftime is back in two. and get us qualified candidates quickly. they sent us applicants that matched what i was looking for.
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all on the most reliable nationwide network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™ >> welcome back. i'm rahel solomon, and here is our cnbc news update at this hour u.s. secretary of state antony blinken has spoken to his russian counterpart sergey lavrov russia should pull its troops back from ukraine now if it doesn't plan an invasion lavrov repeated his charge that the u.s. and allies are ignoring russia's national security concerns the naacp, rather, is urging the justice department to bring federal civil rights charges against the white former chicago police officer who killed black ta
teenager laquan mcdonald shooting him six times he served three years in prison following his conviction of killing mcdonald that is the biggest nine-month rise going back to 1975 the largest number of americans killed on roads in that period since 2006 and the nfl is funding research into the use of cannabinoids and cbd for pain management. the league has arc wwarded $3 billion in preventing c concussions. melissa, back to you shares are down more than 20% from recent highs and phil lebeau is here with more on what investors need to watch. phil >> the numbers coming out will be for the fourth quarter and 2021, but let's be clear we are not expect anything news to make the stock move to relative to q4 results and they raised their guidance in the beginning of december and they
expected to be close to $1.19 a share. that's not going to move the stock. what will? 2022 guidance. do they expect a strong sales recovery and what do they say about chip supply and inflation? two topics that will get a lot of attention during the analyst call as you take a look at shares of general motors, remember that while other automakers it has said for some time now they expect inventory of vehicles being produced and built to slowly rebuild throughout the rest of 2022 so that will be a fair amount of the focus for mary barra during the analyst call she'll be talking about general motors and ev ramp up. this is a huge year for general motors and they have the battery plant in ohio that will be coming online and they'll be having several models to start into substantial production and this is why. we know that evs will be growing to more than 2 million in annual sales for the industry here in the united states by 2025. don't forget, tomorrow morning you do not want to miss our
first on cnbc interview with mary barra we'll be talking with her about squawk on the street and it will not be the main focus today and it's the guidance. that's what everybody will be keying in on this afternoon. >> it's a massive ramp up in the ev that's what investors want to hear about particularly after hearing tesla say that they're not going to introduce new vehicles this year because of the concerns about the supply chain. i mean, tesla has shown that it's been nimble in dealing with supply chain issues and gm not as much. >> correct none of the automakers with regard to tesla. tesla has been far more nimble though you're starting to hear more discussion about the struggle for chips and dealing with different components and the supply chain issues. you're hearing more of that discussion from tesla than we did two quarters ago when you really heard it from ford and gm and we'll hear from ford later this week regarding what's happening with the supply chain and the scchip issue and that's
been hacmpering this entire industry phil, thank you. phil lebeau. >> you bet. >> josh brown, what do you want to hear from gm? >> i think everything that phil said will be meaningful. i feel like this story entirely hinges upon whether or not they can actually deliver the silverado ev which is really -- we're not going to know for sure how that rollout goes until the fall of 2023 but ford's lightning version of the f-150 and the silverado might be one of the biggest stories in the history of automotive rollouts. this is going to be a test of so many things, not just whether or not these automakers can and should do things like, for example, build their own batteries, but can the workforce that's been trained to build internal combustion engines and start building electric vehicles
in places like lansing, michigan, for example. very big story what happened to the dealer network? will these companies have the guts to tell the dealers, hey? we'll sell these direct to consumer the way tesla does and we don't need you guys as much for the new products that's going to be contentious and then just this idea of how much -- how many fewer components there are to these trucks and what that means to these supply chains, and what that means to all of the various union coverage, of all of these components that need to be made. so i think the next two years will be an absolutely transformative moment and gm in particular has a lot going for it as we make this transition. they seem to have been early, you know, versus the other oems and they seem to really be focused on spending the most amount of money on this transition so i'm an investor here. not a trader, and i'm up in the stock and trading with it and i
think they're going to win >> a slot riding on ev, dr. j. 2020 was a year of re-rating based on ev ambitions. 2021, at least for gm effectively was a show-me year you placed your bet on ford. it is more expensive, but why ford over gm >> well, the bet is more isolated, mel, the spread over as many product as gm has and that was one reason and it's outperformed gm in the last six months was up 77%. ford's up double it's up double that. that's why i'm sticking with it. to answer josh's question, anyway, they know that they'll deal with the dealer network and they're not going to deal with the dealers and i have an f-150 bid out there and it was through a dealer and it had to be and
yeah, you made it online, but then immediately, you connect up with the dealer. that's another reason why i own tesla, because they don't have that -- those legacy costs and somebody else basically taking the lion share of the profit off the table, but josh's point is well founded there will be a lot of dealers con contractually have the right to sell those dealers -- and that i might have to -- >> i don't think either of these are read per that fight. >> i agree with jon. i agree with jon they may not have a point because, like, they're going to sell the fully loaded rst version of the silverado, for example, i think at a price point of, like, $106,000 you can do that right now because you're betting that the person buying the first edition of an ev chevy or even ford
truck for that matter is like a wealthy person who just wants it because it's new and it's the first thing. the novelty eventually wears off when there are ten luxury pickup trucks on the market from companies, from rivian to chevy to ford and then all of a sudden price becomes more important and capacity and how many vehicles you could sell and volumes become the story, and when that does become the story you will see the next generation automakers who don't have that legacy dealer network be a lot more flexible when they go direct to consumer and that actually might be something that hampers the traditional american oems and the stuff that we're talking about will play out over like a decade. i don't know that that's immediately important to whether or not these stocks can work, for example in 2022. i just point these issues out because i think they'll have a
bigger impact later. >> the f-150 is one of the best-selling vehicles in the united states of america and the key in terms of the electrified one is do you start seeing these at construction sites. are they being sold in day to day life you have the legacy automakers and then you get a look at the tesla and a valuation is the totally different league and it's 20% off of its high is that a discount is that a value here >> that's a good question, mel i had a lot trying to value tesla, but yeah, 25% off its 52-week, and i think i go back to a point to what josh said earlier. some of names might not travel back to where they originally were i think tesla has managed the ev space very well. obviously, they benefit from being a first mover. so it's something that i traded
around in years past, but it could be an opportunity here it definitely could be an opportunity here and kind of hearing the commentary around gm, tesla has managed their operation very well and you know, there could be continued upside from here so, yeah i think it could be an opportunity for sure >> let's check out this mystery chart here while the major averages have struggled. this stock has rallied double digits since the start of this llf ulsh it just got a bli ca othe street and we'll discuss it on the call of the day next on halftime for investors who can navigate this landscape, leveraging gold, a strategic and sustainable asset... the path is gilded with the potential for rich returns. if you wake up thinking about the market
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wells fargo upgraded to overweight and the firm raising its price target from 50 to 60 it's our call of the day steph, you own this one. >> i do. it is my largest bank holding by far. obviously, the analyst is late the stock was up 60% in '21, and better late than never because it's still cheap at 1.3 times book and the restructuring is kind of just getting leg, mel and it's getting momentum. the expense guide was really good at their last quarter at $51.5 billion versus 53 last year so year over year getting
better and it's 10 billion for the company versus 8 billion guided to. loan growth is definitely there. it has more to go, i think, and the real reason you own this is it's the most sensitive to rate and the 50 basis point increase is about 16% to earnings and 7% to net interest income so good quarter, momentum is there. i think we haven't even heard about the asset cap lift and that will be a real positive when that occurs and oh, and by the way, they just increased the dividend two weeks ago i still like it. i like the call, i guess >> should we assume, josh brown that the environment would be a positive one constructive one for financials? >> i think that depends on the degree to which the yield curve actually steepens. the problem with the last week is that actually we're seeing that yield curve flatten and the market does not believe economic growth will be nearly as robust a year out as it's been over the last year and so it makes it a
little bit difficult for a lot of the financial stocks to continue the rally they've seen. that said, i think consumers stay strong and construction stays strong and i think there will be tons of capital markets activity on wall street and everything from lending to trading to m and a, so i would not run away from the sector and i still think there's a lot of value in names like j.p. morgan at the current levels. >> coming up, jon is tracking unusual activity his latest trades are next on "the halftime report." dad, we got this. we got this.
time for unusual activity. so, jon, what are you seeing in the options market >> well, mel, we're seeing unusual call buying in upstart this is, of course, an a.i. lending platform and when you look at what we just talked about, the banks with, like, wells fargo and lending and all of the thousands, tens of thousands of people it takes to run those businesses, this one, mel, they only have 500 e employees in the whole firm. the stock was 118.50, i think and they're buying the ones that
expire in three days and discipline is very important, folks and you have to take profits and/or cut losses quickly and they're not asking for a huge move for this one to pay off. second one, sirius satellite radio, siri, they're buying the june 7s. the stock bfs 650, was 650, and 6,000 of those changing hands and it might be a lot more by now. i like that trade and you have a lot of time to be right and i'm in both of these position, mel. >> all right up next, ask halftime. send in your questions by video and e-mail us at askhalftime at cnbc.com we're back right after this.
the investment committee is answering your questions sarah in ohio write, hi. i'm reteareired and my gm stockl on a stop order. jason, what do you tell her? >> it's a nice gain. so for me, p & g i like p & g here 2.2% yield in the latest quarter, sales are up 6%, but i really saw how they've managed this inflationary environment so they've demonstrated strong pricing power and p & g would be the pick for me. >> steph, you're talking about j & j at the very top and here you go again, j & g, right >> it's a 2.5% yield and it's
been growing that yield consistently every year, in addition to buying back stock, but you have the state of the art pharma company and double-digit growth and they have 19 novel drugs in their pipeline anywhere fra a billion to 5 billion in peak sales in oncology that's their strength and the med tech business is recovering and will continue to recover and they'll spin out the consumers so i think they're doing all of the right things and that's a name you can sleep at night with. not a lot of volatility and not a lot of beta. >> josh brown, what do you like for dividends? >> just to be clear, i don't give advice to the public and when i talk it's about personally what i'm doing and my dividend holding currently for myself is invitation moments so it's i-n-v-h is the ticker and basically, this is a company that's got 80,000 single-family homes in its portfolio that it rents out 16 markets mostly in the west and in florida all in
places where its rental costs are lower than it would cost to own the single-family home and i have the ceo and founder dallas tander on my podcast last year if you want to learn more about what he's building i would urge you to listen to that. i think this is a durable name and i think it's got a built-in inflation protection because rents can be raised when needed as costs in the economy go up. invh >> dr. jobs, how do you think about dividends? because you can take any stock andry eight your own dividend in a rae with buy rate strategy >> you're exactly right, mel so, you know, i would pick big, safe stocks like apple to do that, but for this question in particular, mel and because of my outlook for energy right now with the demand exceeding the supply, i think exxonmobil 4.6% dividend yield as you very
accurately said you can turn that into a 20+ percent return by selling upside calls again of it having a stock with that kind of demand, i think, really behooves you to pay attention to what the numbers are, and if you're someone that thing into that caw as mr. wonderful likes to say, is something that i would highly recommend. >> all right coming up, equity and opportunity. a close up look at black spending plus we've got your final trades back in two. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna.
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welcome back to halftime equity and opportunity frank joins us with a closer look at black spending power >> a record $1.6 trillion in 2012 the ability to buy, save and invest doubling since 2000 the growth exceeding the full u.s. economy but lagging other ethnic groups. latinos with a more than 280% increase asians with a more than 380% rise in their spending power however, other groups have seen an increase in the net worth
black americans instead have seen their wealth actually fall by 14% with emergence of crypto, nft and other investments and the 27% rise in s&p, many black leaders are calling on the community to invest more in the markets. >> i would love to see us spend more money in the stock market instead of buying the hottest new thing, buy the stock of the hottest new thing. and that's something that is something that you can also pass down generation to generation. >> think about building wealth systematically so to really actually go through a process. it doesn't take much to think about where you need to be putting your money. where is your opportunities? >> home ownership is the primary way that most americans buildwet, but black home ownership, that's fallen 3% since 2000 and annually black families accumulate 300 billion less in wealth than white families and stay $75 billion less dollars in the racial gap and more than 11
trillion >> it seems like there's more awareness within the community with the problem of declining wealth it's interesting that when you look at new crypto investors, a lot of them are black. blacks seem to be more open to crypto, but do experts have an idea on getting the word out that you have to do something with your money to stop the decline in wealth? >> absolutely. i mean, simply allocating more capital to assets that have the potential to increase in value things like homes, and we've seen that ownership decline. also stocks and bonds, et cetera but long-term, there's also some systemic reasons that need to be addressed. >> frank with an important thk u.or anyo >> thank you final trades are up next on the halftime report. throughout history i've observed markets shaped by the intentional and unforeseeable. for investors who can navigate this landscape, leveraging gold, a strategic and sustainable asset...
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that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. busy night of earnings after the bell starbucks. >> i own calls here. i don't think they can pass on any additional costs to consumers without losing those consumers. so, in other words, i don't see a lot of up side from the stock perspective. so i will be loading in calls at the money not out of the money on this one. >> amd reporting that's going to be really important for the chip sector as a whole, steph >> yeah. absolutely i mean, and the stock has gotten hit year to date and the problem is it trades at 43 times earnings. i like the semi conductor space, but i prefer others.
>> jason, you're mentioning you would dip your toe into semi stocks amd might be important for the sector >> yeah. i think it's going to be a very important print. i really like qualcomm and nvidia in the long-term holds for me i think this is important to get the gauge of the marketplace as it relates to semis? >> full coverage of the earnings on "fast money" at 5:00. and tomorrow amd and starbucks, the ceos will be on. final trade time around the horn. stephanie, what do you say >> one of the names i've been adding to that we didn't get to, caterpillar. fourth quarter good in terms of top line 600 basis point beat supply chains hit the margins. no refill on the dealer channel. i like the story and the setup for '22. >> unh health care has been struggling unh is down about 8%, but there's a strong quarter nice top line growth and margin
expansion. >> josh brown? >> tonight we're going to hear from starbucks about demand and foot traffic at coffee shops i'm not sure if that's why dutch bros is rallying so hard today perhaps. but i'm happy to be in this name it's one of the few growth stocks i have that's green year to date. >> triple q. 375 calls, mel, bottom >> "the exchange" starts right now. thank you. hi, everybody. here's what's ahead this hour. yields spiked globally this morning after the ism prices paid index reversed higher again. it's the last thing the fed wants to see right now german bunds were positive we'll look at which tools will be more effective in battling the price spikes is it rate hikes or cutting the balance sheet. a huge day of earnings including results from paypal. the stock is down 23% in three