Why the u. S. Treasury yields may be headed all the way to zero. The Halftime Report starts right now. Welcome. Good to have you with us on this wednesday. Our Investment Committee today, joe terranova, jim leventhal, the brothers najarian and lets begin today with the tech story. Keeping our eyes on capitol hill as well where special counsel mueller is testifying. Theres a live picture of that but our big story is the tech trade. Facebook reporting in a matter of hours the very same day it agrees to a 5 billion settlement with the ftc over its privacy scandal doc, ill come to you. Facebook calls a big position there the best performing faang year to date. What now i think it goes higher, judge. Although i did see late in the session before we got to the Halftime Report, i did see a fair amount of august puts being bought for protection. At the 205 strike, and that was just within the last hour. Other than that, scott, i think as senator blumenthal said, this is just a slap on the wrist. 5 billion for a company that makes 50 billion in revenue this is such a minor fine. If it was on Mark Zuckerberg himself, 5 billion would be something that hed notice 5 billion overall out of the company, not so much the stock is a yawner its barely moving on news of 5 billion. A number that was largely expected and it was the largest fine ever by the ftc at any given point in time. Its 9 of their top line. 25 , 23 , the bottom line. Is it a ton relative to 55 billion in a year . No why do i think the market is not really responding right now . Its because the market doesnt like uncertainty what we got today was certainty. We know what it is you wash your hands, and you were moving on from it. Some of the controls being put in place were things that made since. Like an independent director to sign off on the privacy controls having certain other things put into place it protects the consumer and allows facebook to move on with their business thats a good thing. As a holder of the stock, im happy with it. Are you going to get all negative before the earnings come out why would you want to do that . This is something thats very much its been somewhat of a known. We just didnt know the exact number now the exact number is in front of us. And i dont know that it actually disturbs me at all. Obviously, theyre coming after him. People would rather they go after a couple of the various upper end folks in the c suite but the reality is theyve done what theyve done. The ftc put it out there, the 5 billion. This is a company with all these verticals we talk about all the time for different areas of growth, and i think if they are producing the way i think right now, scott, with insta gragg grd some of the other areas where theyre monetizing them, this should be an interesting and a very good quarter for facebook its why i still own the stock reality, its a duopoly you get all this noise out of the way. Is it a duopoly or is it a really big well, facebook, google behemoth. Snapple is coming into the picture and taking some ad dollars. Well get into that in a minute. What do you think about facebook here and now listen, i think if facebook had a different c suite, the stock would be 20 higher than it is right now. And thats really when you narrow down what the headwinds are for facebook looking forward, its less about regulatory issues. I agree with kourtney, you have finality on the regulatory side. Less about a regulatory headwind and a c suite. The stock is up 53 this year the stock has made a nice zuckerberg is still there the stock has made an excellent recovery this year its not back above the 2018 highs. 8 below that looking forward, into the future, i still think when you are looking at facebook from a fundamental capacity, you are still going to have a management concern if you are investing in it fundamentally, the stock is doing well do people care . Not today not today they dont 84 cents of every dollar in advertising is received by facebook there you go. You have every reason if, you know, zuckerberg was this gigantic overhang over this story that the stock wouldnt be where it is today. Heres the thing you have to they dont right now. In 2020 you may have to care heres why i say that. Let me be clear. Im talking about 2020 its not just the u. S. The leading edge of antimopalistic and fines and taxes has been europe. Its been fines. Its been taxes. The digital tax that they are proposing, the gdpr regulation that affects all of these companies. That is a drum beat that has until date, until today, not really been echoed here in the u. S. But now its starting to be echoed in 2020 as the election cycle picks up, you have to watch out for whether or not somebody like an Elizabeth Warren starts to get a lot of wind in her sails its a 2020 issue, but thats what would worry me. I think that hurts Smaller Companies more than the large. She says she wants to break up facebook. What else is she its an Election Year bluster. Were going to hear a lot more of it. I agree with you thats my point it doesnt matter today turn into real action ask the pharma and Biotech Industries if the bluster about drug pricing over the last nine months has hurt. It has i want to be clear its down 0. 5 today its shrugging off the fine. Its shrugging off the doj investigations into monopolistic practices. Obviously, this is not a today issue. Im just saying as you get into 2020, you cant ignore these issues forever scott, when you look at the way that theyve dropped money to the bottom line, when you say investors dont care, you are correct. And they dont care about tesla. They didnt care about amazon. When they werent making money but this is one that is making money which is why they dont care in other words, can they go out there and can bad stuff come out about how lax they were as far as security and how people like Cambridge Analytica and so forth got in there yes, you can shoot all kinds of arrows at them but when you see a company thats going from, you know, 4 a quarter in earnings to like 7 and almost 8 a quarter, come on when you have this many shares and youre talking about the numbers were talking about here, thats why they dont care they will care about those others when theyre not making money because then all of a sudden, you can turn on a dime but you cant just run away from this one because they are printing money as if they are the government itself. So snap, we mentioned reca ed earlier, had good earnings on its own. Pete, you had unusual activity on this back in the middle of june and the stock is up big since then how much of today is about snaps own story of its earnings and how much is the fact that its not in the socalled crosshairs of all thats swirling around tech today and for the last many weeks . Some of that helps, scott, not being in those crosshairs. This is a company thats finally started to show people that they do have some growth. They do have some special qualities that they can put out there and put out something new that actually people hang onto and were seeing that more and more its getting more sticky thats what we talk about all the time can you get some engagement . Can you get a little more growth and thats something that snap is starting to demonstrate yes and yes thats something snap by the way in may, first time we did the unusual here, may 30th look at it today trading 17 were back to the ipo level. It hasnt sniffed the ipo price since march of 18 now they are doing what facebook did which is they are showing you how theyre going to monetize and theyre doing an excellent job and finally at that area where they can do this and follow through get out if you have it. You see the spike today . Get out if you can i did get out, by the way see and the reason i did is, you know what . The news is out. We know what the news is stock was 11 a month and a half ago and look at it today at 17 thats a huge run. Thats a huge run. Not just for the stock, but how about all those options that not only doubled and tripled and quadrupled look the way. You have to take profits and be disciplined in a market like this particularly a company like snap they might have had a good quarter now. Can they keep that up . Theres got to be some consistency now as well. Is that the same perspective for a longer Term Investor than a shorter term trader . Who sees who sees a top and says, hey, time to go. Im not going to hate on you for take something profits the way i see it, snap on a longer term perspective, now if you get the occasional dip which its a very volatile stock, now it becomes a buy on the dip mentality. You see a drop of 10 at some point and snap from where it is here, okay, you step into that i also think were having a very significant conversation about facebook, about snap we talked about it yesterday lets not lose focus of the message that technology is delivering overall as a sector the xlk today is high ear. The message is the best sector to be in. The xlk is higher and where is the catalyst coming from its not coming today from a facebook or from an amazon or apple. Its coming from the semis, from texas instrument its coming from other places in technology thats telling you a fundamental story thats not as bad as what was perceived. New high smh. Theres texan. You look at that teradyne doc, you have some unusual activity in chips. These things are they overextended does it matter if they keep coming up . Well, like teradyne, judge, Testing Semiconductors and things like that these arent the chips themselves, but nonetheless, the hot sector i mean, they beat. They guided much higher. Much higher. And this wasnt like that theyd gone out there and basically lowered estimates so much that they could just step over it, which we talk about a lot. These guys, this is just a crushing positive story out of teradyne the same thing out of texas instruments. An alltime, alltime high popped over 7 in the premarket to 127 you look at that chart going all the way back this is just a screamer to the up side. Jo jon is so right about this. And it began with taiwan semi. The story began there. Its more on the equipment side. Teradyne is a phenomenal company. Im long lam research. I expect lam research to crush it klac, another name performing well you cant ignore whats going on that on semiconductor, just to throw it in we couldnt wait for it for the usual unusual. Take a look at these august 23 calls. A lot of them. And this is the stock that, you know, quite frankly, is in the crosshairs for anybody trading semis. You have to be looking at this just like joe said, whether its the smash, the smh that Stephen Weiss is on or whether its any of these semis these are on fire right now. And they are buying the august 23s. When im looking at my disclosures, i have two in the semiconductor space. Why . Because like snap, these big moves to the up side cause you to have to react and because im reacting, i am looking at some of these names, scott, and they have made huge names to the up side theres been positive stories behind them. Ive got to take that off. I still own intel and micron sold micron calls today just to say ive got to clean this up. I dont want to have too much exposure on something thats been literally the vertical trajectory of what weve seen out of the semis has been absolutely phenomenal. Last week i had micron, amd and wdc as my final trades for crying out loud. Three of them. Im out of all three of those call positions you were so excited you cued the guns n roses that was me texting its so interesting you talk about smh for those folks thinking about the economy right now and how Global Growth is doing its a proxy, isnt it . Smh is a proxy for Global Growth and so thats why this whole situation around whether or not rates are going to be hiked, why its so complicated, right, because what this is telling us is that the market is not doing poorly we know the data is telling us such a terrible earnings season and blah, blah, blah. All this dark cloud. Earnings recession. Meanwhile you come bawalking in yesterday or today and look at these numbers. Stanley, black decker, Sherwin Williams and everybody is telling us how bad everything is every single day and yet you see some of these numbers. Which the farmer hopes continues for intel. Im with the farmer intel has got its own specific story that is separate from the smh category. Intel has had operational problems for quarter after quarter going back about two years now. Their ten nanometer chips are supposed to come out in the Fourth Quarter they better give an update today that reaffirms that. I think its katie bar the door. And thats in part because so much is going on with inventory and channels getting stuffed in advance of tariffs this is in the forth quarter of last year, First Quarter of this year its not so much about the numbers but getting those operational issues ironed out. How much of it, scott and jim, was the lack of a ceo how many people stayed on the sidelines until the did announce the new ceo . I think a fair amount. The stock popped when they got out of the modem business it gets out of a money losing proposition. Bob swan, look, i think hes okay i think the jury is still out, judge. Well have to render a verdict after todays quarter. They better be on track with those ten nanometer chips. All this good feeling about whats happening in tech the sentimentout there about earnings what about cat cat wasnt great you said this was the one to watch. It is it is the one to watch. I know well talk a little about this go ahead. Ill sit here and drink my cup of tea i have talked about this, scott, a gazillion times you have to under promise and overdeliver. Its like rule 101 of sales, right . They went out unfortunately and overpromised and underdelivered. I like this name our good friend stephanie linc loves cat. And as a longterm play and you think about what infrastruct surgoing to do and globally, cat is a name you can hold and you can buy on this dip. It dipped a little more earlier than it was today. But its a situation where they really just heres the problem. So you say kourt says buy on the dip ill be on the other side buying it. Ive known this stock a long time and its been a long time since it was well run. I hate to say that on the air, but this is not the First Quarter in which they overpromised and underdelivered. It happens again and again when i look at hang on, hang on when i look at a top line beat, and i see that the earnings miss, thats margins, okay thats in managements control and its happened a lot. So as far as why im not out of it altogether is because of the reasons that kourtney, you listed and i do expect, not this summer but sometimes this fall youll get a china deal heres the thing. Until you get a china deal, its dead money im take something out im putting it in northrop grumman. They blew out the quarter. Defense spending looks like its going to pick up with this budget deal coming down the line thats where id rather put the money. The jury is still out on swan at intel and you werent exactly glowing about the ceos performance at cat but youre willing to hang in . And im trying it the reason to hang in on cat is that you expect a china deal some time in the Fourth Quarter. And of all the stocks out there, this is probably the most likely to respond to a positive china deal the last six months cat hasnt mattered. Its been dead money to the market between 120 and 140 on either side of that i dont know how its indicative of the overall Market Sentiment or taking the temperature. I just dont see that. This is a market thats fixated on a consumer that is incredibly strong right now i think for cat, the real struggle is on the mining side and you need to see the beginning of a mining replacement cycle which we have not seen yet today also energy yes, and cat will be a tremendous opportunity theres less of the sensitivity. The narrative is great about china, china, china, but theres got to be something more than that in the select Industries Like you say, energy and like i have stated, i think its about mining you have to football ybelievu get a china deal, the stock is going to get a nice pop. I would agree with that but thats not a reason to invest in that i dont see this as so indicative of the market or the economy. Its going to be stuck stuck in the mud for the next couple of months where do you see boeing then . Is boeing all related to the max . Its all related to the max its that simple everybody expected a big loss today. They announced last week theyll take a 5 billion charge but the key here is in the out years which come sooner as quicker they get this plane back in the air two weeks ago, maybe last week, they said it will happen in the Fourth Quarter that surprised the markets positively a lot of airlines are predicting some time november, december i think theres room that that slides to the right, but if they hit a Fourth Quarter resumption of flying that plane, this stock is going to do very well boeing . I agree with you and absolutely, i was distracted but im following up on the chips and bought calls again i just bought into that as well. So i loved what i was seeing there. Listening to jim, it makes a lot of sense a lot of this is forward looking. We have to look forward. And thats probably the reason we havent seen what i was hoping for which was, id love to have seen, as ive said a million times on the air since this happened, that id love to see this stock pull back toward the 300 level again, where it was before its not happening no matter what the news is out there, its not happening. This is an important point. Because of that, i think the opportunity is at a much higher level. And its probably up where it is near where it is right now hang on i dont want to miss the opportunity to do something in realtime and thats your micron trade give me a little bit more on that you were looking at and what you jumped into. I have got the screens up that jon and i are following for all this unusual activity. I see someone bought 20,000 of the august 2 the 50 strike calls. And they also bought some of the deeper, closer, into the money calls as well. When i see that aggressive activity, how do i not be in there . I still own the stock so its not like i went negative i was just trying to trim up some of what i had to take some of that off. Those options went from 60 cents to over 3 from before im out of those now im in these around 70 cents. The stock is moving higher. Forgive me for quite all right i just want to button that up and then i want to move on. Two fridays ago before you left on vacation, final trade, i mentioned boeing for that reason its shrugging off bad news. This was the week after the microprocessor issue and the auto pilot that then moved to the 737 max further to the right. It shrugs off bad news i wouldnt be surprised if its higher than this approaching 380 next week with the way it shrugs off bad news final part of our conversation to get things going, bond yields were following them theyre falling ahead of a pivotal fed meeting next week. Our next guest says yields are not done going down by a long shot bob michaels, is jpmorgans cio. Hes here with us in studio and on set welcome to halftime. Good to see you theyre going to fall a lot, according to you a whole lot from here the tenyear is going to zero i dont think the bond rally has begun in earnest yet i know that sounds crazy to say, back in november 3. 25 . We hit a low of 193. So 40 of the yield got wiped out of the tenyear treasury but nothing has really happened yet. Were about to start the major Central Banks cutting rates theyre about to start expanding their Balance Sheets again and when you look at money thats gone into money market funds, its at a record high at 3. 3 trillion. All that money could circle around and move into the bond market fed going 25 or 50 . I think theyre going to do 25 i dont really care whether they do 25 or 50 as long as theyre sufficiently dovish language around that and they indicate its not an insurance cut. Theyre serious about trying to create Inflation Expectations. Do you think you think its an insurance cut or not i dont think so i think they are going out of their way to tell us that its not. And the debate at the fed is 25 or 50. If they do 25 and characterize it as an insurance cut, im going to sit all over the long end of the bond market and i think that money will pour in on top of it. You think its the beginning of a ratecutting cycle . I think the fed is very concerned about Inflation Expectations becoming unanchored if you listen to John Williams last week at the Central Bank Research association, he talked about the risk that investors believe that the low inflation prints are not an aberration theyre a new normal thats bad for Central Banks you say weve had the recovery its coming to an end. The Central Banks one after another are falling into line and cutting rates. At this point you need some shock and awe. What does that mean . What is shock and awe . If they do 50, they have to tell us there will be more rate cuts coming. If they do 25 if i were them, let me put it in these terms if i were them, id do 25 at each of the next five meetings just take the fed funds rate down to 1, 1. 25 and send a message to the market that they are serious about raising Inflation Expectations thats what they are focused on. That would send a message it should steepen the curve right now they dont have that so the growth of negative rates globally has been absolutely staggering. Im sitting and listening to you and highly concerned that its going to grow even more and potentially even come here, which i would never want to see. Do you believe that will occur i dont want to see that either i dont like it. I miss the days when treasury futures had an 8 implied yield on it. Those are so far gone. But the money thats pulled rates down to 2 has come from overseas so what seems ridiculous to us that the tenyear would go to zero, clients in europe are telling me, that looks actually pretty high to me. Thats where the money is coming from hopefully the fed gets the message and the policy response is sufficient. It seems like they are getting the message. It seems like the ecb is getting the message, but theyre going it alone wheres the fiscal response . Youre not getting that anywhere yet. So negative rates can come here i would never have thought so everyone talks about the zero lower bound. I know John Williams paper was titled the zero low rebound. Its fiction there is no zero lower bound in europe tomorrow they are pricing a 10 basis point cut in the ecb rate the ecb rate is minus 40 basis points if you let Inflation Expectations become unanchored, then you have to go through these extraordinary measures hopefully we dont get there rob, you have touched on exactly what i think the real thing to watch next week will be because i think universally, the majority of us are saying 25 basis points on the 31st however, i think its what is the signal as far as is it a series of cuts that are coming our way. And if its more walked back from that series of cuts, in other words, a cycle if you will if its walked back from that, i think we can see a sharp selloff, at least in the short term but as long as that door is still open to that series of cuts, i think its going to be extremely positive even though we all agree its not really the main driver for stocks it would be peoples perception that the fed has their back and that theyre going to see more people forced into this market theres a new fed now the fed is us. There are far more market practitioners, whether you look at pal or clarida. They get it. And the fed could sit there and say, look, the Economic Data looks okay inflation is a little below our target we can do 25 basis points. The market just wont accept that now instead theyve become the same discounting mechanism to the markets weve become theyre talking about Global Economic trends. Theyre talking about trade. Theyre talking about future Inflation Expectations and they are trying to anticipate all of that now and pull policy forward to address that rather than wait until it materializes in front of us. Provocative thoughts. Glad you brought them to us. Thanks for inviting me. Bob michael heres whats coming up on the Halftime Report. A downgrade for greenbrier. Taking a hit one of jim leventhals positions. Is he sticking with it thats next in our call of the day. Plus, jon and pete seeing some unusual trading activity options bulls betting on a big tech stock stay tuned for that play and more and before the break, snap soaring after earnings according to our data partners at kensho, since its ipo, its had similar gains of 10 or more seven other times. Following those moves, the stock tends to cool. Trading negatively 57 of the time for more go to cnbc. Com kensho the halftime repo thrtwi scott wapner and the traders is back in two minutes this is the couple who wanted to get away who used expedia to book the Vacation Rental which led to the discovery that sometimes a little down time can lift you right up. Expedia. Everything you need to go. Your daily dashboard from fidelity. A visual snapshot of your investments. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. You need decision tech. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. If you go to cnbc. Com halftime, you get an opportunity to ask any one of the traders any questions you want forget about weis, but everybody else will answer your questions. Go to cnbc. Com halftime or get us on twitter with the askhalftime im courtney reagan. Heres your cnbc news update Buckingham Palace releasing two photos of Queen Elizabeth meeting britains new Prime MinisterBoris Johnson later, at 10 downing street, johnson vowed the uk will leave the European Union on october 31st the people who bet against britain are going to lose their shirts because were going to restore trust in our democracy and were going to fulfill the repeated promises of parliament to the people and come out of the eu on october the 31st no ifs or buts a group of insurers that say pacific gas and electric owes them more than 20 billion from wildfire claims wants to take over the california utility and pull it out of bankruptcy. The insurers are seeking to end pg pg es right to file a reorganization plan. Allergen is recalling its textured breast implants which were linked to a rare cancer this following a request by the fda. The agency is not recommending women with textured implants have them removed if they are not experiencing any problems. And this just in Bernie Madoff has filed a petition with the Justice Department asking President Trump to reduce his 150year prison sentence for his massive ponzi scheme hes not asking for a pardon, but he is requesting clemency in the form of a sentence reduction. Thats a cnbc news update at this hour. Scott, back to you courtney reagan, appreciate it one of jim leventhals favorite way to play the transports is greenbrier Buckingham Research throwing in the towel. They say theres another 25 down side. They cut the rating to under perform. That means its a sell price target goes to 21 bucks. Its our call of the day jim, what are you doing today . Well, i think this is a steal here i disagree with the call i respect that everybody can have their opinions. What this analyst is saying is that for 2020, hes bringing earnings estimates about 10 below the street rail car demand will be disappointing. Right . You tonigwant me im just adding im helping you. You jumped in with nice. Im helping you get to the place you want to get to heres the thing. Helping you get to the end of the tracks and stay on track what he points out is psr, precision scheduled railroading and the decline thats why i jumped in. Its hurting rail car demand. The problem is thats not new news thats been known for the last couple of years. And in particular, psr, the ceo of greenbrier said theyve seen no impact from it. So to have the decline in earnings hes calling for and to put a well below traditional multiple on that is just based on news that its, a, already known and, b, hasnt had an effect if it were to happen, if it did go to 21 a share, these guys can borrow at about 4 thats where their debt currently trades i would expect them to buy back shares hand over fist because it would be trading at 50 of book value. So issue debt and buy back stock . I mean, theyve done it before they are known to play with the Balance Sheet opportunistically. I dont see why they wouldnt do that here. What will the stock price be in 52 weeks. Down about 50 year to date. Jim doesnt like this game. Its okay he may not play it with you where is it going to be . In a year in a year 42 a share 42 bucks. Its down 50 year to date you want to change seats . You want to play the game with me. 42 bucks . Yeah. One year down 25 from this guy, up 50 from me. Have you been adding to it on the way down i have. Down 30 year to date ive been in and out of this stock. 60 off the high about this time last year. I sold into that not exactly at the high but in the fuf50s. Ive been buying it back it trades at 42 trade discount to the peers. Is it a management issue who do you think are its peers . I see it in line with its peers, trinity. Thats really the only peer. Jatx also. Theres no management issue here this is just an unloved sector of bending metal into the form of rail cars all right well, coming up, options bulls are betting on tech and cybersecurity. Jon and pete have new trades coming up next in the s p. Lets give you a look. S p is up 2. 5 hanging out above 3,000, 3008, led by energy and tech were back after this. Dont worry. Voya helps them to and through retirement. Dealing with todays expenses. While helping plan, invest and protect for the future. So theyll be okay . I think theyll be fine. Voya. Helping you to and through retirement. Prpharmacist recommendedne memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Were back on halftime. Options traders betting on that stock right there. Fireeye. Stock getting a lift today ahead of next weeks earning report. Jon and Pete Najarian at the telestrator with unusual activity on that name and a few others as well im going to start you off. Fireeye. The stock trading just under 15. 50 when we saw call buying. The call buyers are buying fridays expiring call so this is ultra short term. Were talking a couple of days so you can see these are july 26th expiring just to make this very clear so youll take a look at this. Look at these volumes. Youre a little over 6,000 of these. Around 15 cents. I love the risk reward of these. Right at the money i jumped on these. How long am i going to be there . Probably not very long at all. Were talking about expiring friday so ive got today, tomorrow and maybe it will extend into friday i like what were seeing here in this move to the up side in fireeye. Another one for you with oracle. Oracle, they went out a little further. They went out into august. Very early august. And they are buying the 58 strike calls in here i think about 3500 of these trading. This is more premium wasnt too bad the premium was about 80 cents this continues to chop a little higher and a little higher with the volumes as well. Ill be in this one. Call it, lets say, a week and a half, Something Like that maybe. And then next i got to do a quick update just about last week, i think it was july 16th, the guys were telling me, capital one. We had call buying in here i stood here in the same spot. Stock trading 90 and they were rolling out of the july 90 calls up to the august 92. 50 calls those were trading for about 1. 40. Today 3. 50. I cleaned up that position, got out of these see you later. I love whats there but discipline tells me you have to take those off stock at 96 and change the financials continue to work pretty well right now. Good stuff, pete. Doc, what do you got mylan myl. These expire a week from this friday, august 2nd and i like the activity in these. Why . Well, its a play ahead of earnings so theyre not likely to give us any further insight until after that Earnings Report which is the week after but nonetheless, 6,000 of these calls bought pretty aggressively here for about 55 cents. The august 21 strike here. Mylan is almost 19 so do we see that 20 pop or so that takes these into the money pretty good . Perhaps. People are betting that it could happen second one real quick, take a look at exelon this is further out into the future september options. Stock is 45, 50 or thereabouts, and as you can see, the stock is down so somebody scrambles in and says ill take a cheap shot on september. They buy the september 48 calls with the stock at 45, 50 like that. Like the risk reward maybe they are 35 cents, Something Like that. As you can see, a couple times yesterday and today, theyve been buying these. I like it. Im in them. Probably for about a month great stuff, guys. Come on back this way. Up next, were answering your questions on nike, beyond meat, uber and more. And well do it straight ahead you can still reach us at cnbc. Com halftime. Tweet us as well were back in a little more than two minutes. Insurance was the easiest decision ever. I switched to geico and saved hundreds. Thats a win. But its not the only reason i switched. Geicos a company i can trust, with over 75 years of great savings and service. Now thats a winwin. Switch to geico. Its a winwin. Were back and answering your questions now first up, a question for pete. Its from nicholas in la jolla, california bu beautiful la jolla nike i think nike is really stretched right now. Where i look at where it is trading on a p e, trading around 35 id rather be in something a little higher p e but also growing faster lululemon. I absolutely, im still in lulu and continue to hold on to it. Ive been in there almost a year or a little longer i still think theres plenty of up side because the verticals that theyve got with mens and other areas, including ecommerce, which are absolutely slaughtering it right now, i think that the growth the way we see there still has more to go and yet nike, im not so positive about that one. Doc, for you, from catherine in florida beyond meat. When should you get into a name thats just been flying . They Just Announced a deal that theyre working with Dunkin Donuts on a plantbased meat sandwich i know josh brown loves both the plantbased meat and Dunkin Donuts so josh, what a bang but theyve got earnings for 29 what a great guy you are. Thank you earnings to 29 so i would say wait until after those earnings come out because its hit 200 and just above a couple times. I think you wait until after the earnings because this one could suffer a little bit if it doesnt outperform beyond and durng dunkin brans as well on the exchange. 1 15 p. M both of those ceos coming on kourt, from mark in pennsylvania, uber what do i think of uber i love uber. No, seriously. How long do i have to talk about it i love pennsylvania. My aunt lives in pennsylvania. I love pennsylvania careful scott go ahead. I love uber, and at lou capital we have a price target of 54 on the stock. From a personal perspective, ive been talking about this name for a long time they are market dominators every place but china, russia and Southeast Asia they dominate the market in which theyre in theyre doing innovative and creative things. I think uber, im going to give you something for the summertime keep the kids engaged here coke is to soda. Coke just killed it, crushed it. Coke is to soda was uber is to ride hailing when you go out to get a ride you say im getting an uber. You are saying, im going order an uber. That says to you what that brand means to this market and its worth something long term. Joe, for you, lana in oceanside, california, wants to know about home depot. What do to do. Up 24 year to date stay with it lowes which fell in may is only up 11 i think theres an opportunity there for that to play catchup. Farmer jim oh, from farmer phil in South Carolina fellow farmer. Farmer phil in South Carolina says farmer jim, how do you feel about valero farmer phil one farmer to another put deesele in that tractor diesel comes from crude oil. Valero cracks it crack spreads are great right now. Theyll get better you want to know why all nice turmoil in the middle east, venezuela, libya, russia, it favors big refiners like valero great place to be right now. Thank you for your questions. Coming up, the euro is hitting a new twomonth low ahead of the ecb meeting tomorrow well give you your trades, straight ahead ng the future. So, every day, we put our latest technology and unrivaled network to work. The United StatesPostal Service makes more ecommerce deliveries to homes than anyone else in the country. Ecommerce deliveries to homes stand up if you are first stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. I will tell you this, Southern New Hampshire university can change the whole trajectory of your life. Im seema mody and this is futures now. The Euro Currency hitting a twomonth low ahead of tomorrows anticipated ecb meeting. Our traders, bob, lets start with you plenty of speculation about a possible rate cut from the ecb tomorrow so how aggressive could the central bank be, given the latest data which has been pretty disappointing seema, i dont think theyre going to be that aggressive. Currently the rate structure is about a 35 chance of 10 basis points tomorrow. I think this meeting matters more in the context of the fomc meeting next week. If you look at what Mario Draghis going to say and then you compare that to the f 1 c doing either 25 or 50, that is going to decide not the direction but how far it goes. What about politics, scott . Do you think the uks new Prime MinisterBoris Johnson could be good or bad news for the euro . I think hes going to be bad news only because we know what hes thinking. He is a hard line brexit i think its interesting that the Euro Currency is down. Most of the other kurpsys are cup currencies are up as we find out whether we got nice boris or pugnacious boris i think then were going to see some trend follower comes in because the spot euro has a gap below 1. 082. Bob and scott, thank you. For more futures now, make sure to follow us on twitter at cnbc. Com guys, back to you. Up next, halftime friend mike is making a big call on a stock. Where it is . Hes not just tweeting about sports today keraess eengbout the stock that mi fnc itwti aut next indistinguishable muttering that was awful. Why are you so good at this . Had a coach in high school. Really helped me up my game. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom mad skills. Education to take your trading to the next level. Only with td ameritrade. Online now, apple could hit a new high for 2019 when it reports next week. Read lizzies articles on the earnings strategy. Go to tradingnation. Cnbc. Com now. All right. Welcome back i want to show you shares of slack. Why . Because one of our favorite fans is interested in that stock hes been buying. The famed sports radio host on the investment front smart time to be picking up slack, he says ticker work and putting it away. He says hes been buying between 32 and 36. You know this is a big josh brown stock as well. He owns it he bought it on the day it became public. What do we think good place to be of all the ipos and direct listings that have come to market this year i think its a good one you know, i was actually in singapore last week at a womens entrepreneurs conference and when i tell you more than half of the room when the question was asked what do you use to communicate, how many of you use slack, more than half of the room were using slack. Thats right. And i think thats why joshua buying it and i think josh is pretty smart. No ones going to concur [ laughter ] just silence. You remember, josh, im a huge longterm bull in the Company Business whats critical for the company is 43 of their revenue comes from 645 companies those 645 companies are paying 100,000 per year. Wow so what youre going to need, and i think the company is going to report in september is that you are going to need to hear from this company that theyre beginning to grow the amount of users that are paying that high price of 100,000 because that is going to be whats so critical to the story in terms of growing the revenue. Weve got to get francesa back on the set. Its football season. Final trades are next. It never questions the tasks at hand. But this year, theres a more thrilling path to follow. father kids. Change of plans vo defy the laws of human nature. At the summer of audi sales event get exceptional offers now tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch tell him we need this merger. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. All right. Were back. Final trades. Court, good to see you again kick us off. Thanks. You know what, i think im going to ride with my buddy jim. Im going to go greenbrier you made the case jimmy with the big sell. Buy on the dip he said you said it was a steal. Wwe thats right, jack. Jmpr, juniper, bought it. That does it for us the exchange begins now. Thank you, scott hi, everybody. Heres whats ahead today. A major tech crackdown the doj starting an antitrust review of americas tech giants while the ftc slaps facebook with a record 5 billion fine which jim cramer is calling invasive the stock reaction may surprise you. And beyond meat keeps rolling. Beyond meat is trading above 200 today as the Company Forms the new partnership with dunkin. We will speak with both ceos in just a couple of minute. Plus, irobot is feeling the squeeze from tariffs meat has becom