tv Fast Money Halftime Report CNBC April 22, 2022 12:00pm-1:00pm EDT
some, maybe, meta further to fall and come back. >> yeah. there was some discussion that the fed speak had quieted down a bit and the market was zeroing in on some of the good earnings, but today that definitely reversed as we're down 600 still, and the vix above 25 will be something to watch. so get lots of rest over the weekend and brace for next week's data and let's get to the judge and the half ♪ carl, thanks so much welcome to "the halftime report." i'm scott wapner front and center, unsettled stocks interest rates weighing on your money as this week comes to a close and we'll debate with the investment committee joining me for the hour, shannon saccocia, degas wright, steve weiss and josh brown lows 620, 1.75% and a decline for the s&p 500, the nasdaq is under pressure today and it's a 200-point loss
289 is the yield steve weiss, you are short the s&p and you are short the qs powell was hawkish yesterday, reversed the market. why did you put that trade on? >> scott, before you do that, i think we have to hold a moment of silence for a loss of the investment family and that loss is tina. there is no alternative because now there are alternatives and that's the bond. so that's treasurys and at around 3%. so that had been a big part of the thesis for a lot of people being invested in the market and with the fed's hawkish stance and this is why i shorted those and i shorted them earlier in the week and i'm long sarc the fed is the most aggressive, i recall, in decades and there's one thing that continues to upset equity markets and that's the fed. you don't fight it no matter which way it's going and people
still, like pavlov's dog, the bell rings and the market trade is down and they think they have to buy so there's hardly much risk management going on with those people and if they sell something, you buy something else i still think you want to be in cash and i still think the market goes lower. we have a global tightening policy going on from the central banks that matter and that will continue to weigh on averages, it will continue to weigh on multiples and there will be better times so just ask yourself as i've often done you know, would you rather protect your down side and lose less money or do you want to try and catch your bottom by deploying more capital i would rather protect my assets and equity exposure is below 20% at this point and that's been pretty consistent. i can't go to zero because i just don't want to pay taxes. >> i hate paying taxes. >> right >> that would be generating a big loss, as well. i'm happy where i am positioned,
but still losing money let me make that clear >> shannon, so does this action in the market tell you that rate hikes aren't fully priced in what's the message of the fed chair yesterday as hawkish as we expect i don't know why people are surprised when the chair or others on the committee are hawkish. they're trying to tell you that rate hikes and a lot of them are coming and they want to hit risk assets and i don't know how much more clear they can make it so why does the market seemingly act surprised when it hears the message? >> i think that this level of transparency is building over the last decade, scott we've never had this type of outward transparency from the fed, historically and i think what is happening is that powell as well as other members of the fed's governors are trying to
remind the market that this is, to your point, not inconsistent messaging that they've been saying since the beginning of the year i do think that there's this misperception that if the fed acts as aggressively as we are anticipated to do and as they are messaging that they will do that they will launch us into a very deep recession and economic data does not support that thesis and so because the market seemingly to your point believes that the fed is not as aggressive that they stated that they will, and as aggressive as the market will be, because there will be this great recessionary impact, it's just not, it's inconsistent with the economic data. could we see a slowdown and could we see a recession in 2023 absolutely are we going to see slowing economic data? definitely, but the fed does not believe that that is enough to create a deep recession and the market needs to acknowledge the fact that although we are going to see slower earnings growth and slower economic growth, we
are not going to be put in a position for a deep recession and the fed is not messing around >> nomura, degas, is out with a note today suggesting as much. they look for 50 basis points in may and then they look for 75 in june and another 75 in july. that's a reality check, if, in fact, it comes to from you igsz. >> exactly i agree with shannon we have to listen to the fed there. they're telegraphing what they're going to do so as an investor you want to look at your portfolio and start focusing on derisking. taking away the risk aspect of your portfolio and look for quality names that have pricing power and so that's what we've been doing and i think we would advise anyone to start looking at the portfolio and start looking at those risk assets. >> josh. ed yardeni says 50 basis points are coming in in the next five
meetings what's the story to the market reaction to what seems to be a foregone conclusion. rates are getting hiked. the fed wants stocks and other risk assets to go down >> yeah. i've been bearish since january saying the same thing again and again. you can't get too negative, when you see that vix up at 28, 29, 30 find something to buy. i don't care what it is, and then vice versa. when you're back at 20, 19, take something off and that has worked flawlessly. i'm team weiss i've been all year it's very rare the two of us are this aligned and the fed has to do -- write this term down, this is the word of the year, okay? this is the phrase of the year demand destruction the fed is literally trying to destroy demand that is the mechanism by which they cool off the economy. it's not magic
it's not a spell that they cast. they literally have to destroy some of the demand in order to cool off prices, in order to cool off core pce which hopefully will be peaking when we get the march data next week, but look, demand destruction is not going to be fun and stocks have gotten ahead of this. the majority of stocks peaked in february of 2021 and have not made a new high since. that's over a year of declining prices it started in the spacs and the post-ipos and the high growth spread we've had a handful of sectors holding us up here and really only two stocks that matter at the moment, and i wrote about this this morning, judge, and i don't know if you want to go there yet, but let me tell you something. if apple and microsoft can't hold up, and they report on tuesday. forget it, forget it rate now you're down 16% in
nasdaq and you'll number a 20%+ bir market and it is up 10% year to date which by the way would rival the losses in the bond market and when you have stocks and bonds both down double digits to start the year, that really can "f "q" with everybods sentiment and that is a body blow and i am concerned that that's the situation we can find ourselves next week if either apple or microsoft don't put up great numbers or even if they do and they don't get a rally look how great tesla's number was yesterday. nobody cared, they sold it off blackstone, nobody cared the stock got hammered i'm concerned. the stocks can hold up and they're approaching critical levels of support and i don't know if they will. >> weiss, hence the short in the qs are you concerned about what those two stocks and look, there are many other big stocks. next week is the busiest weeks of earnings including the
mega-caps among other big names in tech. to josh's point, if they don't deliver a lot, right not just beating the numbers, right? i think the bar's been raised across the spectrum of how good reports have to be, then you could get that retest that people have been talking about, looking for, waiting for and those stocks holding up to the degree that they have has largely kept a bigger drawdown from happening >> yeah. every one of josh's points was dead on. look, you've had some really good earnings. look at snap and what snap's doing and good performance and i haven't looked since i've come on air, so these pops that happen in the stocks are for a second, so if the good ones that are reporting can't get traction
and if are occasions for investors to sell, i'm short calls apple and i'm long puts on apple and i haven't done anything to microsoft yet and i will to protect the downside because the market is brutal on the downside and not rewarding in the upside, so why would i be there? and sure the economy's okay right now. absolutely, but it's not going to be because the fed is tightening and this is what's interesting about this there's a lot the fed can't control. it can't control oil prices. it really can't control the supply chain and they've got to be even more aggressive to hit demand because of those inflationary factors that wouldn't normally exist in an economic cycle and that's one of the reasons why i'm so bearish because their hammer has to be bigger, harder and swung a lot, lot more so i think you -- i don't know how else to say it. >> it's no surprise that the
commentary from the fed feels more hawkish by the day, almost, from whether it's a known hawk or a dove. everybody sort of is speaking the same language. steve liesman, our senior economics reporter is joining us we're not imagining this it's been happening day by day >> it has been, that is correct, scott, but i'm going to -- what's the right way to say this, i'll go away from what we were going away from and talk about something different. it is on the 75 stuff and it was a trial balloon. i know what a trial balloon looks like, this is not a trial balloon. i want to go through the tape here, scott. if you give me a second here and show you what happened this week let's start out with monday, and i was with the st. louis fed president, and i said jim, is it
possible you may go further. >> yeah. 75 is possible, but it's not my base case. >> later in the week, i'm all down for 50s and we have to go higher than that and we have to go restrictive overall in policy the next day, this is the third big one here, i think. hey, 25.57, we'll all deliberate this i don't think it is in the cards for may, pretty darn sure it's not in the cards for june and i think july will not happen either, and i will say, though that the market is trading if you do a lot of math as i did with my friend luke randall and there say 40% probability built in of at least 175 basis point hike between now and august which is those three meetings, may, june, july. let me tell you what 75 is in the mind of the fed. i think the fed will do a couple
of 50s here, scott i think powell wants to accept the 50 basis point hikes and then i think we'll take a look at the summertime and wait a second, is there any movement or positive developments on inflation. have we achieved any demand, destruction that mr. josh brown was talking about, and if not, and there's a feeling that the 50s weren't enough well, thank you, sir, may i have another? whatever that phrase is from the movie, and i think the fed at that point after looking at how 50s work and whether or not there is any relief at all in inflation might perhaps go to 75, but this is not a trial balloon for a near-term 75 that's not the way it went down this week. >> you think they think that they can get demand destruction with 50 and 50 i mean, it feels like no >> it's happening in housing already. >> i think they -- what did josh say, sorry, i missed that. >> he said that's happening in
housing already. >> it may be happening in housing already and there's an amazing number of very strong crosscurrents and as a fly fishermen, i know currents and you have this one current that scott was talking about, that josh was talking about housing and there's this other current happening going the other way, kind of going upstream which is this idea of coming back from omicron and going back to traveling and you also say people are betting on more expensive things with inflation and the other thing with consumers having a lot of savings and going upstream it is unclear is the answer to your question, but i think the fed feels a certain limit in how much they can do in any one time i don't think powell wants to crash this market by making it -- by digesting a 75 basis point hike without proper conditioning i don't think the bullard and bailey story, if he didn't speak
about it for the record. >> the point you make, i think, is so great and it's the idea the current going, you know, with the people who are going to be spending all of this money on travel you hear it from kishy and ed bastion of delta and you see what's happening in airline stocks they're selling out business class. you can't get a business class on these that current feels stronger than the current created by 50. >> in the meantime, you have the supply chain that takes the edge off inflation and you take out the oil supplies in russia and wheat supplies from ukraine and russia >> the point, though, too is that you think the market has gotten away and too far. thank you, steve liesman >> i just want to say one
caveat i think what happened is the market's gotten angry here and said, you know what? the fed keeps moving the ball on us here and now we'll get out in front of it and that's where the market is right now. we're going price in even the remotest possibility i get why they've done it, but when they write this is a trial balloon, i don't think so. >> which market is doing it more is it the bond market or the equity market? i don't know >> all right, steve. have a good weekend. let's do this. let's hit a couple of other moves they want to get to before we move things forward here. degas wright, you have some moves that you made. did you sell square? is that one of the big moves that you made? whatever you want to call it >> yes exactly. one of the things we started looking at from a valuation perspective from the more risky companies to quality and so what
we saw with square is that we graded square about a d in our grading process and we saw that the valuation was too high and it's 206 times earnings multiple also we were very concerned with square's use of the revenue. they get about 57% of their revenue of cryptocurrency fees and the transactions are going down and so that's going to have a significant impact on their revenue. plus we were also concerned about the fact that the long-term debt increased from 2.6 billion to 2.6 billion in one year also, we noticed that the earnings expectations are going down for this particular company, so we decided this was a company that we did not want to hold and we made that decision >> all right fair enough. you're entitled to do that cleveland cliffs crushing estimate, but the stock is
giving up all of its big gains from earlier today which is interesting because farmer jim lebenthal. you know how he feels about cleveland cliffs he's going to join us next you know he's going to defend it and what's the message in the market that he has to deal with. we're keeping an eye on the big sell-off you see it in front of you a 600-point decline and given up 13,000 and 4300 and where the s&p is sitting we're back in two minutes. hey, did i tell you i bought our car from carvana? yeah, ma. it was so easy.
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♪ ♪ shares of cleveland cliff, take a look at the intraday chart. quite interesting because it was a big beat and a big gain which has now turned into a loss by some two-thirds of 1% which is very interesting as you know, jim lebenthal loves this stock i think it's his biggest position he joins us now to discuss what is going man, you were crowing on twitter. if you don't know what to do with this stock, i can't help you. they beat on this, they beat on that free cash flows this and the guidance was amazing yet why the stock reverse? >> it's pretty annoying, scott,
and it happens every quarter and the stock went down. frankly, that's why when i was on with you yesterday i didn't make it my final trade, but i'm making it my final trade right now and here's why here's why analysts have estimates for this year, free cash flow as measured by ebitda and the last 12 month, the company did 6 billion in ebitda and now they're seeing price hikes of 17% they raised their guidance on realized price this year by 17%. they're seeing volumes pick up including for the auto manufacturers and so this is going to be a gargantuan beat to what analyst estimates are for this year's ebidta why is the stock down today? it's pretty annoying is it that the people are taking profits? maybe. the stock is uppier to date. 660% in two years and there could be some profit taking, but let me be very clear this is a buy right here at this price and you should be buying
this. >> i felt like you were making the case to why you should take your profits and run >> you yourself said the market don't lie. right? if the stock goes down every time it reports -- >> the market is a ding bat on days that cliffs reports i mean, it's just a ding bat i would not follow this market into a petting zoo on a day like today, but having said that, i'll just go to the numbers that matter because this is what matters to an investor $6 billion of free cash flow ebitda in the next 12 months and that's versus a market cap of 14 billion. that's a 40% free cash flow yield. find that somewhere else for me, find that in faang and find that for me in an ark stock you can't. that's why you have to find this. >> even though you're concerned that the economy is slowing and it will slow further in. >> that's a good question. that's a very good question. >> it's just an obvious question >> i just listened to the conference call this morning lorenzo gonzalez gave absolutely
no indication that things were slowing down this quarter, first quarter he had higher shipments to the auto oems since covid began so he's seeing the puick up in autos right now. as soon as they can produce cars, the demand is there, he's just not seeing any demand slowdown >> not yet, but we spent the entire part of the first block talking about what the fed's trying to do to demand and it's going to take a while. >> it's a completely legitimate point, scott however, the facts are these the fed has raised 25 basis points so far. they will raise, it looks like 50 basis points in may and for me, i said this to you yesterday, let's take a look at the two ppi and cpi reports that come out between now and the june 15th report i'll make my judgment about what the fed will do based on those reports. i'm not going to telegraph it now because i don't know >> okay. all right. steve weiss, you've made the argument that -- that this stock
in your words from the debate we had in overtime about a month ago that it's not a growth company. jim made the exact opposite argument so not for the sake of arguing with jim, but why is he wrong? >> first of all, scott, give me a minute to recover from the use of the word dingbat. i don't know that he's wrong, in his mind and i would tell you in anybody else's mind it may be fully integrated and you have a phenomenal ceo and at the end of the day it is not a growth company. if auto demand slows down and it reported the first loss in a long time then they're going suffer so, look, i sold the stock in the mid-20s and it was one of the few that maybe the only that i sold that will continue to go up and every good sell and
everyone loves the stock which is more market related and stock specific and that's what other people are thinking going into this then you should definitely sell the company period >> josh, do you have an opinion on this debate >> i'm with jim just in terms of, like, we just started earnings season last week. there have been companies with great reports where the stock is down 7%. it's only inexplicable if you don't pull the lens back further and it went up 40, 80, 100-something percent in a few years in anticipation of this economy getting back to full potential and now we're here and it's a sell the news response. it's annoying and i've sold plenty of stocks where you have the news right and you get the market reaction wrong. that's why it is not easy.
company abc will have great earnings, therefore i buy company abc and that's what he refers to in his first level of thinking it's not helpful anything intuitive is not helpful. >> you made a grand presentation with your words of the year, demand destruction and now you're telling me that it doesn't matter for a stock that is all about demand and whether it gets destroyed or not >> i'm not saying that at all. what do you mean it does matter, but the stock is seemingly reacting to an earnings report today, but it's not. the earnings were widely expected to be good. jim was right. everybody agreed with him. today is a bad market sentiment day, therefore, as my british camp counselor used to say when my soccer ball hit the goalpost. it's unlucky he's not making a one-day call >> i get that. now you have to wait 90 days it
see if you get another upside earnings surprise and you have to hope the market doesn't go down. >> let me help people out here, all right? the bulk of cleveland cliffs' business is on contracts, fixed contracts with price escalators and this is not something that there's variability like if hot roll coiled and steel fell when they're exposed to it and they have long-term contracts in place and look, all i can tell you is this, if the stock goes down, meaningfully, they have $6 billion of free cash flow and they've authorized a $1 billion buyback shares i did get a text from liz young saying, she liked it and i'll take your opinion over steve's >> i did hear the ceo on "k "squawk" and they don't have to worry about the variability and the volatility that some others
otherwise might because of the way they've done their business. >> i am so sorry to interrupt you and i'll make it quick i haven't talked about the fac that they control all of their raw inputs domestically. they're not reliant on pig iron from ukraine they mine their own iron ore they bought a scrap metal company and their margins are 5x what their competitors are >> the only thing that matters is do people want to buy or sell the stock? that's it. everything that you're saying is true it doesn't matter rid now, and there are more people and do they want to bate stock or versus right now, it's a cyclical and because markets are reacting to bullard and more people want to sell it and it's infortunate leigh. fundamentally shall you nailed it, tim and you deserve the dollar figure rid and sometimes
that's hard to do because the market environment won't cooperate. so you can get it right and still, unfortunately, be susceptible to that. >> josh, i agree with what you're saying about market conditions i have no argument with you whatsoever my point is, to be clear, i'm not crying in my coffee about this at all. the company is outperforming, i expect for the reasons that i listed it will continue to do so and on earnings day, this stock acts like a goof ball, all right? that's why i didn't make it my final trade yesterday and it is my final trade today as strongly as we can make that case >> we're making that your final word, too. have a good weekend. we'll see you next week. bertha coombs has the headlines for us >> here's your cnbc news update at this hour in afghanistan, more attacks on mosques and schools. a taliban official says at least 33 people are dead including some students after a bombing in konduz province. no one admitted responsibility
for that attack, but the islamic state says it was responsible for explosions this week targeting shiite neighborhoods >> msnbc has obtained leader of kevin mccarthy speaking to lawmakers just after the january 6th attack on the capital. it backs up a new book denied by mckarth they he said then-president trump he bore responsibility for what happened ask that mckacarthy was frustrae with the president. >> i've had it with this guy what he did is unacceptable. nobody can defend that and nobody should defend it. >> washington crossing, the delaware will be sold by an aurgz house next month and it's expected to bring in $20 million. the iconic image and the painting was displayed in the white house from the 1970s until 2014 it's one of two versions
measuring 3' by 6' the larger is in the centerpiece of the metropolitan museum's american wing. that one is not for sale tonight on "the news," how si hlth care costs are hitting older people "halftime" is back after this. what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq this tiny payment thing- yeah... oh. don't worry i got it! is a giant pain! hi ladies! alex from u.s. bank! can she help? how about a comprehensive point of sale system... that can track inventory, manage schedules- and customize orders? that's what u.s. bank business essentials is for. (oven explosion) what about a new oven, can u.s. bank help us there?
we have a couple of calls, union pacific down almost 3% downgraded from buy, ubs, shannon, you own it. we do have a big debate on the state of the transports, shirngs et cetera. what's your take on this stock and this call? >> well, the call is basically that they can't meet the demand that they have, so if you look at total traffic growth it came in shy of 5% and the expectation and that was because they're having trouble hiring engineers and conductors and this again, this trickle through of, you know, tightness in the labor market particularly for specialized roles. i think from a secular perspective, longer term they're going to figure this out and they'll get the appropriate hiring done and i don't think, despite the demand destruction that they've been talking about with continued companies moving
back onshore, rail will continue to be very important margins have improved for the company over the last several years with precision scheduling and i think it's a great place to play in the industrial space. >> let's talk airlines united airlines downgraded ask you have american upgraded while jetblue and hawaiian were downgraded steve wieiss, i bring that up because you had a bullish call in terms of the ceo and it follows ed bastion and delta air lines saying the same thing and you sold delta air lines is this a matter ever getting out while the getting is good. >> that's exactly right. i was up 17% in the last couple of weeks when there was skepticism i owned delta, and the others don't hedge except for alaska and now that everybody loves it and sees what's going on, i
believe that you've realized most of the gains. so given my market view it's a great time to take profits on positions where you have profits and besides, the airlines, you only rent them you don't go long term into airlines because that's been a losing strategy over time. so i'm out i'm glad to be out nice trade, if i missed some on the upside, so be it. >> good stuff. american express is lower despite an earnings beat stephanie link owns it she calls in to talk about it next or maybe you'll see her i'm not sure if she's a skype or a call or a zoom we'll find out in two minutes. what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai.
we're back on the halftime report dow component american express beating estimates and the stock, though, is negative. let's bring in stephanie link to talk about it because she owns it steph, i mean, this seems to be the theme of the day. >> hi, scott >> you beat, doesn't matter. cramer said it was an incredible quarter, one of the best, yet here we are. >> yeah. i mean, i think it's the market overall. it's relatively outperforming financials and the market so there's that, but it never feels good when a stock is down, but there was nothing wrong with this quarter, scott. to be honest, it's a buying opportunity, in my opinion it is
very well positioned for the re-open. by the way, this is my largest position in my portfolio now so in terms of the quarter itself, better earnings, better revenues and guidance of 18 to 20% for this year and that's up 14.5% and growth from revenues that they started with the year at and then they guided mid-teens for the next several years in terms of ref nigh the highlight's net interest income and that's up 20% and it is up seven basis points and the card-free point up 16% year after year card spend was up 35% led by millennials and genzs up 65% smb, small medium business, and tne, up 121% and these are all really great, great numbers and only thing you can nitpick was expense are higher and that's okay with me because they're investing to put up this kind of growth, and i think at 19 times
earn, it's a very attractive and the action today is it was up 13% year to date headed into the print and the market's down nine >> people will spend more on travel and entertainment they more than doubled those areas, right to pre-pandemic levels if they're spending more there and spending less on goods and other item t doesn't matter so long as they're spending somewhere and spending a lot and we know that everybody in the space, thus far. hospitality, travel, et cetera, that hospitality will be strong. >> absolutely. that's the kick tore this story for 2022 into 2023 we've had leisure spending and goods spending happen over the last year. we haven't had business spend really recover and so i'm looking for the business side of things to pick up and that's why small medium business is up 30% and spend is encouraging and there's a lot of ways and they're buying back a bunch of
stock and if it gets quality on sale you want to be buying it. you know earnings season is buying it and take advantage of the silliness and the reactions. >> that's stephanie link joining us there degas, verizon, yet another one. revenue beat, fewer than expected losses of subscribers and yet, that stock is one of the worst today. >> yes, scott. this goes back to josh's early comments we have just a negative market sentiment and this is a stock that has the valuation of 11 times multiple it is one of the companies that we really like and that we actually looked at, the fact that it met on earnings, beat on revenues and it did come in at lower -- on the lower end of the guida guidance and revenue will grow 9% and we feel that this is the time to buy the company and this is just market sentiment today and this is a positive company
and has had a really good quarter. >> all right good stuff, kimberly-clark is soaring now, too, degas. get ready for that it's the second best-performing stock which is why degas owns it and why we'll talk about it when we come back cnbc is celebrating financial literacy month and kari firestone on how financial literacy is a great equalizer. financial literacy is important for this country because it's a great equalizer it allows people to be independent. it gives people a playing field because they understand how to deal with your money the importance of saving income, cash flow and debt, and if you don't have that you create a class of people that do understand and those that do not, and that is not what democracies are about.
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shares of kimberly-clark having the best day since 2000, after the company posted strong first-quarter results. degas, you own it and some people are saying the staples are getting too expensive. what do you think? >> i don't think so, scott, because ultimately kimberly-clark is in our dividend strategy, and this strategy focuses on companies that have quality and provide income so kimberly-clark, you're having a 4% dividend yield. it is priced at a multiple of 18
times and we beat on earnings about 10% and revenue's about 4% and let's look at where the companies benefit as weget int a rising inflation market and consumers are going to buy their toilet paper, their staple items and the personal product items plus, kimberly-clark has an international strategy they want to grow in the developed markets and also in the e merging markets and so this is a company that you want to hold particularly in an inflationary environment >> shan, procter & gamble and mondelez, and i'm looking at the stocks that have done so well and there have been calls that this trade has run its course and it is too expensive to freshly buy here what do you say to that? >> yeah. going back to the top of the show, sdcott, i think we have to talk about if people are feeling that there has to be a flight to
safety, i still think there will be sectors where people are looking to hide out and we're not expecting to see as much trade down from branded products and we're experience the k-shaped recovery and that's a stressor on these branded portfolios than perhaps we would have seen in 2009 and 2010 >> josh, would you buy staples here or no >> i think you want to have some representation of staples in your portfolio i don't think we should be excluding completely any sector, but one thing i've said about staples is that a lot of active managers, because they can't go to cash will use something like a consumer staple just because they have to buy something and most of our viewers are not in that situation so i never loved the idea of i'm going to buy this company because they make cans of saltwater and it will go down less than other stocks if the economy slows and i'm not a fan
of that style of investing so i think some of the companies of staples have merits and not all of them do and some are way too expensive and the dividend feature, be careful with that. you don't want to chase a 4% dividend only to have a share price drop 15% on you and wipe ' worth of dividends i think you don't want to paint with too broad a brush understand why you're buying something. >> we're going to come back and talk about some of the stocks hitting new 52-week lows i have salesforce lows not seen since 2020 disney we'll quick it around when we come back. dow has come back 520. still a red day across the board. ♪ ♪
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i think that when you think about just overall cloud infrastructure, you think about high growth names. you think about a name like salesforce that is expected to continue to grow, you know, 20 plus%, you know, this is going to feel that pressure. but from my perspective, being able to deliver in this hybrid working environment, you need a salesforce it's malleable and flexible. it's loatitude for companies. >> what about disney pressure is on and results when they report better be good, i guess. >> ddc is seeing pressures we knew this was coming. high costs for customer acquisition. there's a lot of players in the space. jim and i both have exposures. we're looking at the ability to pass through the costs to park revenue.
and there's this situation happening in florida that could be a big bump if they decide that they are not going to need to support from an infrastructure perspective their little township there. so i expect really strong park revenue this quarter, but is it enough to offset some of the streaming concerns not so sure. >> why skyworks? lows not seen since june of 2020 you sold it in march what do you make of that >> i think it's groesly undervalued at this level. but there's a lot of exposure to apple. because that's about 50% of their business, and a lot of exposure to iphones. and one of the issues i -- one of the concerns about apple is that with inflation being how it is, more money is going to go toward groceries and gas than is going to go to $1,000 phones that's the risk, and i think that's what you're seeing in sky works, but other semis as well including one leek on semi
that's completely sold out this year to the auto companies and has a good business for next year as well >> we'll step away and come back to final trades next u'd think rt would be the last thing on my mind. thankfully, voya provides comprehensive solutions, and shows me how to get the most out of my workplace benefits. voya helps me feel like i got it all under control. voya. well planned. well invested. well protected. what happens if you ever need to miss work for a long period of time? why would i miss work? i don't know. you could sprain your ankle, throw out your back... get hit by a school bus. or a regular bus. get kicked by a horse. fall off a ladder. bathtub mishap. polio. boating accident. stuck by a fork. rabies. wolves. scurvy. talk to us about disability income insurance today. feel comfortable about tomorrow. massmutual.
you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world. overtime, and josh brown is with me along the jim cramer can't wait to hear from jim after this weak and especially how this day finishes up at the top of the 4:00 hour i look forward to in a
let's do final trades. kick us off. >> yes we like costco because of their strategy of selling discounted price products to consumers looking for value and convenience. >> okay. shan >> vm ware moving to subscription-based products. we believe hybrid is here to stay >> lots of company selling at private equity multiples. >> if you have short term money and you're not sure what to do, don't just go buy a consumer staple or throw money at a stock just because it fell shy is one to three-year treasury there's now a decent yield on there on a 30-day sec yield basis. take a look at that as an alternative. >> josh, we'll expand on the idea of how important next week is give me a few thoughts to look ahead to what we're going to
discuss today in overtime on what's riding on these earnings reports. >> i think apple has to hold 150. post earnings. or leading into earnings we'll see what happens i think microsoft is equally important, 275 >> i'll see you in a few hours everybody have a great weekend i'll see you in "overtime" "the exchange" is now thank you, scott hi, everybody. i'm kelly evans. we have a sharp selloff on this friday the powell selloff continues a day after the fed chair said he's open to bigger rate hikes the dow down about 600 the nasdaq languishing 20% off the highs as the two-year yield has jumped more than 30 basis points this week we have the latest not everything is down the airlines have been a key outperformer the last several weeks. and one analyst says there's still more up side he says a 50% rally ahead for one name in particular he's here to make his case with stocks under pressure, big