Subscription service will it be a game changer . Halftime report starts now. We begin with the markets red for now. Just off the lows of the day as we have learned lately, though, the end of the day can look very different than how it does at 12 00 noon so investors keeping their eyes on several fear factors as it were including those protests in hong kong, the latest in the china trade talks. Josh, size it up for me. Here we are in the red what gets us out of this volatility grip . A lot of fears flying around the street the notes are flying well get to in a second. I think the word volatility is the way people are looking at what they own, what itself in portfolios you see a lot of people giving up on stocks right now thats an interesting phenomenon to have happen so close to a new all time high. So when you look at a break down of the market. Splv vs. Hpsv is informative splv is approximately half the market since fed day. That is only down minus. 4 if thats what your portfolio is overweighted for, you wont notice any take a look at hpsv, right now thats down 8. 5 since fed day that is rueling that is an absolute huge dispersion between those two styles of investing. When you look at individual sectors. Lets do a tale of two cities. Quickly. Reits working nicely on friday, they made a new all time high. Very rare amongst the market now, fake a look at the other side, retail, the stocks are being lickry dated macys nordstrom, every is a bid to sell. Well get into to, steph, maybe reality is setting in across the street. Summer is almost over. I mentioned the notes. Lets show you the wall that we made to sort of encompass what youre getting today from wall street morgan stanley, mike wilson. You see what theyve, the bear is alive and kicking he will be with us later this week to expand more on his thoughts where he will go from here. Banc of america, recession risks are rising, ubs 10 year to one and a quarter. Goldman stacks, a global hit from the trade war this is why i use the word reality. Reality is setting in you have a lot going on a lot is not seemingly good. The longer the trade wars the worse it will be i dont think we will see negative Interest Rates unless we go into a recession i dont think will you go into a recession. I think the consumer props us up to low single growth on gdp. Thats been the case and whats been happening over the last couple of quarters the big question is what does the do to Consumer Confidence . Thats what im worried about and watching if you look at the equity premium spread, stocks are very attractive relative to bonds and relative to where Interest Rates are. So you want to own quality ive said it all year long you want to own a barbell. You dont know at the same time you cant lose your shirt so you have to have some defenses as well dividends are much more attractive at this point jimmy, size it up for me. If you want a quick fix to this the only way to get that is to get something positive on talks with china which there is no indication of. So you know thats being shown in the cyclical sectors. You look at industrials. You look at basic materials, energies, just getting slaughtered, okay. Those stocks are saying recession is here now. You know what, its longer you point out corporate confidence its not going to happen right now. As this continues on, corporate confidence decreases, wage growth slows the labor market falters that takes a few months what cannot come to the rescue is Central Banks yes they will cut response to this if you dont get resolution on china, you not only need Central Banks, but you need governments to start spending. With low Interest Rates, look, i dont want to sound like a modern monetary theorist here. You better get away with it. The government better be primed to spend on infrastructure unless they solve china. Is what steph says enough stocks are attractive relative to bonds i have to politely say no we all of us have been looking for a second half recovery in earnings now a 2020 recovery in earnings. After a certain point in time you have to get china resolved if you will get a recovery in earnings at any point. You talk about the wrong china resolution the trade deal is i think a lack of a trade deal is starting to really filter through and impact not only corporations, Small Businesses, but just regular people in a way that its reality setting in thats why i asked it. But is that the worst thing because the other shoe that may drop is an incursion into hong kong, which i dont think anyone is thinking about in terms of their earnings estimates they are starting to today. The airports shut down this is now an issue thats spilled over from politics onto the business pages people are looking at this what does this mean does this mean the yen goes limit up if something happens . I am not an expert in this kind of thing im saying this is something investors are paying attention to. 28 a second come to the table. Im just going to say, obviously, we have to watch this as i said earlier on, the longer this tracks out the worst its going to be. Small business optimism, the confidence numbers are still quite strong 103. 3 last reading jolts, really strong these are still solid pockets of the xi. You believe thats based on the stockmarket and that can turn on a dime, right . If the intex is 98, 103. 3 in the face of all of this going on, Small Businesses are its a consequence dense indicator and it moves with the stockmarket and it can very quickly tell a different story. Steph, look, you made several months ago the statement on this show that earnings were going to trough say midyear and the second part of the year you were going to get a pickup in earnings, thus a pickup in stocks here we are, where do we go . Are you wavering on that based on the risks we bring to the floor today . Im totally aware of these risks. We are always a wall of worry. The markets like that when we dont have a wall of worry thats when i worry. So i have to say i think fundamental also are pretty solid. Not perfect. We have a lot of things to get through. Solid enough. Thats what we need to address i think theyre fine. I think earnings will come in better than expected when we do the tally for this quarter and i actually think in the second half of the year, youve got low Interest Rates, jobs, wagess, i mean i know we have some tail winds here. Largely on the consumer maybe rightfully so. Thats been the pocket of strength that we talked about. These guys raised points over here, whether that sorts to deteriorate. I think thats fair i think i said the other day to you, im concerned about walmarts earnings and their ability to maintain that price discount gap that they have relative to the krogers, relative to target but back to this macroconversation, i look at the equity market right now in the u. S. , you say to yourself, august is giving you kind of exactly what you expected. Really to me the wall of worry is east asia im going to push you on that im going to push you on that for a second august is giving us what we largely expected i be together differ why because the fed is going to cut rates and that was going to clear the runway so to speak. Yes for stocks to go higher thats not what we got we got the fed cut then we got the unexpected tariff tweet and that changed everything of course that changed everything the stockmarket hasnt been the same since that day. That came as we came into august and we highlighted how the dynamic of the market changed because of the suggestion that you are going to put 10 on 300 billion worth of goods. So the volatility should be present given that tweet that introduced a whole new level of volatility. It did. As i say, what do we got today . Whether we get it or not, were close enough nine Straight Days of 1 moves here we are as we are in january. The equity markets, you finally felt comfortable alocateing to higher beta equity names. You looked at other things in your portfolio that had been working like corporate bonds, like reits you scratched your head and said, okay, do i need these things because of the fed well, you got the answer 24 hours later. I think the conversations right now in a lot of conversations im getting is this tremendous discount youre getting looking at the msci emerging markets which are barely higher on the year to jimmys point, you got Central Banks around the world that are easy monetary policy. You need rates imploding t yet you are still seeing the capital outflows and where are those outflows going to go the only place they can go is the u. S. Equity markets. Everything was fine until a week and a half ago, it was fine the 25 point basis cut we were looking at it. The tweet comes out, everything goes on the rails. To get things back on the rails, you can have a tweet or piece of news that gets china back into a positive light now this may not grab everybody the right way. Josh, i think you bring up a great point about hong kong. Frankly, the worse that gets it forces carolina to come back to the table with the u. S this is the biggest fear, another Tiananmen Square another rebellion against an autocratic controlling economy. Let me ask you this question. What happens if this is the scenario that unfolds . Im just making this up, this is what people are saying so china says there is terrorism now in hong kong. Theyve changed their rhetoric thats a farce, you know that let him lay it out. State media says its terrorism. You see the massing forces in xensen simultaneously make a trade deal with the Trump Organization or pretend to, whatever, trump looks the other way on them invading hopping congress and whatever violence occurs because hes got his trade deal he can waive around, look how great i am. What is your question is that positive for the market its a Huge Positive for the market. So we say hong kong gets thrown into the volcano for new highs . A question is it good for the markets, yes im not having a moral discussion its good for the markets. Is it good for panasian equities absolutely. It reintroduces stability into the trade picture. The coin trade deal. I dont care the circumstances under which its created that creates stability. Everybody know what is the currency trades are and currencies can stabilize. I feel like thats a word that i just dont feel like thats a word that will enter our market vocabulary for a while. What . Stability i dont think thats where we are. In that environment, that said, so i also feel like we are going back to a conversation which we had months ago whereas you figure out how you will play all this goldman comes out today and says buy Service Producers not goods producers, Service Providers so buy the u. S. Economy. We asked this question weeks, months, however. Its already whats been working. But thats the story of the last two or three years. Job years. Josh is outlining all thats old is new again does that strategy still work . It still works because josh is highlighting a potential scenario jimmys talking about whats going on in east asia. You have to say to yourself, we have this whole currency conversation with the chinese. Everyone says that the chinese continue to depreciate the value of their currency. What if the only thing the chinese can do is strengthen their currency, which im beginning to believe what if these capital flows from east asia are so significant the value is dropping and the chinese cant do anything about it it brings you back to the United States of america. It brings you back to the Services Oriented economy and it brings you back to the seed liquidity that has to go some place, where it is going to go thats microsoft, amazon, alphabet, facebook, berkshire, j. P. Morgan, visa, bank of america, united health, depo, verizon, sis core oracle, mcdonalds i like a lot of them. Say that again . Frankly i dont have to thats owning quality you i dont know Great Management Teams, very strong Balance Sheets a lot of these Companies Offer dividends. Even a 2 dividend deal is attractive, which i never thought i would have said. They have proven execution they may have a stumble open it one quarter and turn it right around again they have very strong franchises and brand names. Yeah, i own a lot of these names. I dont disagree. So do a lot of others you own a half dozen at least on this list. Of the 50 i own i would say half are quality and half are different. Some are cyclical, some of smaller cap, some are midcap. Just to generate alpha i dont know a lot of those names. I see this i own a lot of those names, too. None of them are trading at a low valuation relative either to the overall market or to history. Nor should they be the banks are the banks are because they are doing very well right now. Theyre doing better than the whole worlds economy. It makes sense they traded in elevated multiple. Heres the problem with that, as i had mentioned, i do not think this trade story remains an economic story for very much longer i do believe this becomes general news that the populous discusses. I think this is no longer about this guy is trying to make auto parts in one country and bring them here. Now there is a supply Chain Disruption that was last year now we have tariffs hitting things like iphones, toys, apparel. Things that the consumer buys directly not indirectly so the supply chain part of this conversation has already taken place. The verdict is in. Tariffs are horrible for everyone not good for us. Yes, were paying. But people dont know that theyre paying now the conversation changes and they do know theyre paying. Fair point. I have to tell you, i do not think politically we can have a recession just to prove a point to china i know people are saying that. Theyre the stupidest people i know thats fine. They can seep e keep saying it people say there is know political appetite for this or that there is no political appetite for a Consumer Confidence in a consumer driven recession because the things they have to buy are going up in price. That is not going to be the thing that can happen. Completely agree. I think there will be a political breaking point i hope it happens, i dont know it will. I think there is a limit an end in sight five years of trade wars with china. I think those a fair points now you have a good read on consumer and retailers hitting fresh lows today you see the list mace is . Some are secular. Of course these stocks, look at dollar trade. The tweets, the Retail Stocks have been amess. A lot are secular losers. The Department Stores, cmon, they have been struggling for years and years. Yeah, i do some of the tariffs will have impacts for some companies, like the Dollar Stores for example. There are some you can own costco 5 . I do like walmart as you know, you and i both do. I like the off priesters a lot i like tjx i a him not in it. What would you do with nordstroms and mace is i wouldnt maces . I wouldnt touch them with a ten foot pole. Theyre doing good things to stem the market. 13 billion enterprise value, what should the company be right now . I dont Want Department stores i have an Department Store exposure with estee lauder, 20 exposure theyre doing Everything Else other than the Department Stores. Do you still like walmart i do like walmart. Walmart looked like it was in great position fundamentally and technically. Still are it feels like its wobbling we had a vacuum of news posttheir last earnings so you will get not only earnings but the conferences, Conference Season starts in september. There is a big consumer conference that they will obviously be talking at and all the other companies will be as well well get Real Time Data points. I have to think the jobs market, wages, unemployment. That is good for walmart consumer the reason i like walmart is they have been spending aggressively for the last several years. Theyre starting to put the brakes on that a little bit. A little bit josh i think raises some interesting points we have largely dealt with what has been a Business Sentiment story, more cloudy, outlook picture. The consumer has been the pillar of strength. Consumer sentiment numbers have been through the roof largely every month that they have been registering. Now you have a different prospect in september. Tariffs hitting the consumer, we talk about Holiday Shopping in the not too distant future as crazy as that sounds when its 85 and sunny out there i agree with everything that stephanie said i held walmart quite some time i had target i got out of target after the tweet. Walmart has wobbled because of target i think its correct to look at a dollar tree, a Dollar General and say, okay, does the consumer go to the discount retailers because of a price is being raised but the question is about Profit Margins and find me an egg whichty index globally that has given you the Profit Margins at the s p 500 is giving you. So in september, if this continues, does a walmart absorb the price hike and now begin to contract its Profit Margins . Do they pass it onto the consumer and lose sales and the consumer goes elsewhere . Or do they put the pressure on the supplier walmarts big enough that they can do that. A lot of these are not. A much bigger point if you cant afford walmart there is no elsewhere. Exactly where does the consumer go if not walmart . So lets take what you are saying to the logical conclusion walmart is on the list from Goldman Sachs. Right . There are no stocks that are good buys if the trade war continues to the end of the year stop thinking about that that was my point. Walmart is making it more clear. There are financials on there, how will those do ten year below 1 how is the consumer going to hang in there when wage growth falters . We can go on and on. Maybe mcdonalds will hang in there. Sis core thats my stock, Enterprise Spending on technology will dry up the point is you have to solve the Bigger Picture with china been you talk whether walmart is better than cisco or mcdonalds. Cisco reports wednesday, this week big name companies, lets kick all those around you start me off with cisco. Cisco will be find. On the hardware side, remember cisco is a tale of two countries. The hoard waardway is find software should be fine. The quarter as reported should be fine. Its the guidance Going Forward West Virginia do you expect them to say hey, you know what, companies are walking back their plans delaying spending. Thats what worries me having said that, stock off 12 from its highs i think that is priced in. I like the stock here. No question cisco sales come from big telecom overseas . The path i dont have it its 25 to 30 at this time. Another holder of the stock its recurring revenues, its services, its software. Its all the things you want them to be so they, you know, they are not immune to Enterprise Spending as jim said i am worried about that as well. They is done so many good things it is a dynamo managing team just think, last quarter, we were all so worried about the supply chain and their exposure to china what did they do they shipped things over to mexico in record time and beaten reits. So i dont know about guidance, i do agree, jim, that theyre probably going to be conservative but i think their Business Model is definitely the gut winds there. They have d ram pricing in their favor. The big purchase secretary there. Thats good. Its not expensive so i think this is one you want to be buying actually if there is any weakness. To be clear i agree. I know you do, i wanted to make some of those points, though. What about nvidia, josh brown . I dont have any strong views on it. Why not you used to. Im long. Because i think that this is a company that let investors off the clip with guidance a year ago. Theyve gotten much more conservative thats helped. The stock has held up relatively well i think you have a global Semi Conductor problem right now. A lot of it has to do with trade. A lot of it has to do with demand in parts of the world where the economy is slower. Its not like nvidia can do anything about that. I think within semis, they address some of the growthiest markets. Theyre not in the wrong markets. That itself the good news the bad news is they cannot be they cannot be immune from the weakness that we see thats either trade related or economic slow down related. If are you a shareholder like i am you have to live through these periods of time. Im in the Semi Conductor world. Broad koym, is attractive. Their shares are outstanding the ca acquisition is more synergistic than expected. A flate management team. I a Great Management Team i feel its less of a burden to own. I want to kick around deere i want to go to dom chu, speaking of ag has a flash deal. The usda just issued its world agriculture supply and demand report. In it we are watching corn prices fall by 6 . The worst levels of the dave right now. This is because according to usda, the 20192020 u. S. Corn outlook is for larger supplies, reduced exports and corn used for ethanol and greater ending stocks and this is due in some ways to a better and increasing yield for a corn harvest in the occupation so a lot more corn coming to market this year and next. Thats putting pressure on prices ill send things over to you. We appreciate it. You need a new tractor its overgrowth your biggest export market. Exactly. Huge pressure huge pressure. I cant believe this happened what . Its not just china. Are there farmers in other parts of the world who might meet this demand that we dont want like brazil what is going to happen . You cant overstate the pressure that the Farm Community is going to put on the white house to strike some sort of deal with china. The fact that china is not buying agricultural products. What are they waiting for who are they . You mentioned the agricultural industry. What are they waiting for to put this pressure on they are putting the pressure on. The polls are not going to change the way they vote yet. What im hearing from a plot of farmers is they are they are getting subsidies. They are clearly changing their minds on this. They are feeling this in their pocketbooks. Theyre hang on to their farms, theyre family owned they are certainly not buying deere tractors at this point in time. Well see if the red states turn i doubt it last point, quick hold adco for a resolution thats favorable heres whats coming up on the Halftime Report. Stephanie links calm of the day. Shes making moves in her portfolio. Stay tuned for the financial stock shes buying. Plus, youve got questions our Investment Community has answers. You can reach us at cnbc. Com halftime or tweet us askhalftime scott wapner and the traders is back in two minutes. With sofi, get your credit cards right by consolidating your Credit Card Debt into one monthly payment. And get your Interest Rate right. So you can save big. Get a nofee personal loan up to 100k. Welcome back, everyone, im sue herrera, heres your cnbc news update at this hour more violent protests overnight in hong kong, where Police Used Tear Gas on antidemonstrators, the conflict stretched into its tenth week an outbreak of the legionaires disease in the atlanta total has become the worst in state history. The hotel is supposed to reopen this week. Young adults who vape are threeandahalf times more likely to smoke marijuana, according to a new study from bostons Childrens Hospital the study included 128,000 people aged 12 to 24 and on a lighter note, wendys customers craving those spicy chicken nothing ets are back in luck the menu is back after a twoyear hiatus during which chance the rapper gave them a petition, there you have it. Thats if news at this hour, back to you. We appreciate it. Thank you. Now to stephanie links call, the new stock she is added to her portfolio. You want to tell us what it is yes, fis have world pay thats the reason i like it actually i think you will see better than expected revenues and cost energies last week, they actually upped their Revenue Energy i think its to the tune of Something Like 600 million and cost energies, they havent started yet. When you merge two companies, will you see it. I think you will see two to 400 of cost energies i think organic growth at 7 is easily upped Going Forward as the two companies combined i think you can see Something Like 9 or 10 organic growth i sold paypal. Had a Nice Campaign in it. I put it into this. Its incredible. A Great Company a company i had owned this time last year, got melted out of it. Fidelity. Fis, this time last year. Fidelity national yes, sir. It diversifies the story for this company i think thats what really will be the catalyst moving forward you thought about this previously it was financial Services Oriented. Yes. It catered to banking that now takes this place to a much more diversified one. What is a comp basis . Is this like fi serve . For sure. You throw paypal in there. You can paypal will grow faster than fis fis probably over the long term grees faster there is all different degrees i this city valuation discount doesnt make a lot of sense. I owned this stock coming out of the financial crisis and owned it about 5 years it was a home run. Run by a game foley at the time no longer there. This company has a long track record of making a lot of money. I havent looked at it in a while, steph, you are inciting me to do so. Ive think it will be a winner. Have we addressed the paypal more specifically . You said it did well still selling it i made money in it. I felt last quarter they slipped. Clearly, they had contracts slip and they didnt execute as well and at the time i was trading 35 times forward. Thats a big rich. I have no problem getting back into it if it were to pull back. I think this fis story is a nice one. Its a defensive one, and not as much volatility. In this environment its nice to have that as well. One square in 62 . No. Can we he it the financials since we went there, anyway . They have already been hit, scott. Well. If some of these calls are right where rates will go in the weeks ahead, months ahead. I dont know if anybody is thinking any of these names today. Im still in the big ones, citi and Goldman Sachs look at the european banks over the lasts five years as youve seen Interest Rates come down to the negative territory its not a reason to earn them, its diversified have you trading, credit cards, all sorts of other things they can make money on, so thats the reason to own them the nim story. Net interest margin is bad we know its bad its already priced in stock is at threeyear lows with schwab schwab, please, buy back 10 or 15 of your stock. See thats whats interesting ability banc of america. Right. You can see all you want about nim. I know it will come down they also have a cost cutting story and are buying back the stocks all the big banks are buying, citigroup is buying back a huge amount. The brokers need to ask themselves, what else they are doing with capital if not that because these stocks along with the asset manager, i mean its just a massacre. I just worry about that competition. You should have an semiwith sub4 unemployment all time highs in things like Consumer Confidence, et cetera, if you are a Financial Sector stock and are you at a threeyear low while thats going on, what environment are you looking for . Like there is going to be a recession at some point, what are you doing now to make hay while the sun is shining my last question on this segment. I get it, if are you in these stocks, maybe you will stick in for the reasons jim laid out jim says theyre doing this, that, everything, i dont hear anybody saying they will put fresh capital into any of these. Thats when well tell you. Because its hard here you go its hard to justify you are absolutely right i cant commit new capital i wont give up on whats there. But there is no reason to get excited when you have a yield curve thats not only flat but going down that weighs on it i think you can own Something Like blackstone, like aig. I think you make my point, right . I dont see anybody saying bank of america citi, j. P. Id buy the debt here. Goldman is one of the best july performers out of the dow wealth management. I own them. I would agree with all that i am holding on to financials. I am guilty of have been j. P. Morgan and citi. There is an election in 20s 20 they will be squarely at the center of the that platform, if someone like senator Elizabeth Warren does win, banks will have a problem. Lets update a problem with carl icahn last week right here on halftime. His interesting couldera, he took a large stake in. Heres what he told me. I think its a very under valued company or i wouldnt be buying it. I think going one, one, halftimes revenue for a company like that i think its very attractive. Thats what we asked him what the end game may be. Whether he wanted board seats. In fact, he reached a deal today for two board seats. You may recall our own steve weiss during the segment bought cloudera he told us he is still with it at least at the time of our conversation all right, straight ahead, hedging your portfolio amid all of the volatility. We will give you the edge coming up first a check on the s p sectors today, show you where were at on the street inside the s p 500. Still in the red across the board. Today the only sector in the green with the s p down 17. 5 is real estate. Halftime is back right after this good relationship. Youve done a lot of good for the world. But i feel like you have the potential to do so much more. Can we build ai without bias . How do we bake security into everything we do . We need tech that helps people understand each other. That understands my business. Weve got some work to do. And we need your help. We need your support. Lets expect more from technology. Lets put smart to work. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. 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And welcome back to the Halftime Report im bob miss seen the dollar bob pisani you could be taking a hit on your overseas exposure if you are not hedged how can you make the most out of europe lets break it down, a senior editor, tom, its back again with the dollar strong this year we didnt pay any attention to currency hedging in etfs for a while now. Its starting to make a difference vanguard up 7 this year the hedged etf, currency hedge up 13 . Right it makes a big difference, bob as you point out we havent been paying attention to them for a while. Now with the trade wars going on, talking about under valuing the yuan thats going to happen across the board. The dollar continues to be strong in the u. S. If you dont hedge your currency with your overseas investments, you are betting on that local currency why not take out that risk why dont people do that . Frankly, they bleed money. They havent attracted a lot of money in years japan did a while ago. Have you less volatility with them you are taking out the currency. Why arent people using them in a different way . You used to see commercials every minute on cnbc now atj has bled 8 million its now a 3 billion etf despite you mentioned it is outperforming other etfs will that change now we see the currency an issue . We have to see if the dollar strengthens. If it does, investors may want International Equity portfolios. Europe is not the only place where the currency effect is hitting portfolios a hedge could be a difference between positive and negative returns in 2019. We have a way to play that, tom, emerging market etf here flat for the year the symbol is heem up about 4 again you see the difference same thing, bob if you are looking for valuations, everyone is talking about the great valuations, almost 40 off in pes compared to the u. S why not look at this, mostly if china devalues their currency, emerging markets will follow. Before we let you go, there is a currency, an etf for every countries, argentinian argt getting hit hard macri got trounced in the primaries. There is concern his old opposition might be back in. What do you do here . The sam thing we saw last year weve seen brazil. Weve seen greece. Then all of a sudden they turn around so if are you are tactical in nature, that might be something to consider . Thanks for joining us. For more etf edge, stay tuned for our live show. Is your money better in cyclicals or defensives ill show you ark invest ceo kathy woods, the next leaders. Thanks, bob pisani for us up next, uber, amgen and orb. Com. You can reach us and treat us as well well be bacin0 cos. K 3send. We are back. As promised. Lets answer your questions. A remark in pittsburgh is it okay to add to uber at these levels that stock has not been in good shape since earnings last week yeah. You can do what you want to do for me i just sold it today. So i got stopped down. It was a 10 loss from where i bought it. I was willing to take the a risk in this. A defined risk the first report they had as a Public Company i think makes it pretty clear that this is a business that plans to spend a ton of money for the foreseeable future we all knew that i dont think they made a convincing case they even have a handle on their expenses yet that might happen in the next quarter. I think the next 90 days will be tough in this space. Until they get behind a relatively new company like this are you going to need them to say the right things so far they havent figured out what the right things are. For that reason im out. Joe, from tim in seattle. The longthem i dont think on amgen. Longterm outlook is go buy it i think it takes out the september high around 21080. The trial court upheld the two patents, novartis was challenging it its favorable as referred to the arthritis. Those are the Phil Mickelson ads you see. It has a great low beta and great exposure i like. Steph from jacen in katonsville, maryland, which one to buy, oxy or bp . Well, one is defensive. One is speculative bp is your speculative, trades nine tiles earnings. You get a flat yield, its pretty well covered. Theyve done a lot of good things oxy has a lot of juice they took on occidental and darko. They yield close to 7 i dont know how safe that dividend is. Ball from new jersey, orbcomm, a new 52 low last week down 37 in the last month. So when a stock gets clobbered like this, you got to come out and decide, do you believe in it still . I strongly believe in it when i recommended this, i said, this is not a trading vehicle. This is put it away in the closet in your ira a couple years. That still stands, the quarter wasnt as bad as the street thinks. But the reaction is what it is heres the important part. Theyve responded buying back shares the first time they are buying back shares. The first time they can do that. Im buying more and again put it away, dont look at it for two years. That stock will make a little move there thanks to all of you as well for your questions. Coming up, nike making a big bet on your kids with a new Prescription Service we will debate that next free access to every platform. Yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. phone ringing a phones offers big button,ecialized phones. And volumeenhanced phones. , get details on this state program. Call or visit and accessoriesphones for your mobile phone. Like this device to increase volume on your cell phone. phone ringing get details on this state program call or visit we are back. We want to talk about nike which is the company launching a Subscription Service for kids called the Nike Adventure Club it allows parents to order shoes on a quarterly, monthly, or bimonthly basis for their children, ages 2 to 10 steph, what do you think i love it i have owned this stock for such a long time. They have so many things theyre doing that is right, especially in digital they have weathered the storm with china the only thing is the stock is expensi expensive. So nike under armour, you own both yes youre not willing to pick between the two . I feel like nike is a longterm compounder, especially quality. But under armour, especially given the pullback, the story is still on track so actually, if given the choice between the two, i add to under armour here and hold nike. And you take lulu over both i think its very smart on the part of nike nike trading at 81, i think thats getting to a point where you want to step in and buy. Theyre focusing on the brand, getting the parents involved the ordering of those shoes is going to involve not only the parents paying for it, but the sizing itself. Walmart does something right now on a subscription basis with Beauty Products thats somewhat similar. I think this is a very smart idea on the part of nike you know, ive owned it ive liked it in the past and steph, at 24 times, that is good price. The only problem is the sentiment, i think, is going to be getting worse here the longer the china situation drags on its not fair, because they dont source that much from china. Its not fair, but its still going to happen. The sentiment will work against them, for now. Well take a icquk break and come back and do final trades straight ahead on halftime oh yeah, sure. Um. You dont know my name, do you . laughs nervously of course i know your name. I just get you mixed up with the other guy. Whats his name . Whats your name . Switch to geico®. You could save 15 or more on car insurance. Could you just tell me . I want this to be over. Your but as you get older,hing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. In the human brain, billions of nefor people with parkinsons, some neurons change their tune, causing uncontrollable tremors. Now, abbott technology can target those exact neurons. Restoring control and harmony, once thought to belost forever. The most personal technology is technology with the power to change your life. Online now, read kara oc a gd o icle on why chip stksreootownn a market selloff. Go to tradingnation. Cnbc. Com now. What about him . Lets do it. Come on. This summer, add a new member to the family. Hurry in and lease the glc 300 suv for just 419 a month with credit toward your first months payment at the mercedesbenz summer event. Going on now. The etf that tracks retail is down about 7. 5 in the past two weeks. According to our data partners at kensho, a month after similar declines, it tends to bounce back up over 2. 5 for more, go to cnbc. Com kensho. Were back well get to final trades in just a moment. But i do want to show you that were trending lower again for the day on the tenyear note yield. Thats caused stocks, perhaps w, to move back towards their lowest levels of the day, as you were talking about just a few moments ago before we were heading to break and im just going to use that word, diversificatiodive if youre sitting here, worried where the u. S. Tenyear is going because of your equity exposure and youre overexposed to equities there are things like Municipal Bonds at the highest levels since 2016, Investment Grade at their alltime highs josh mentioned reit before there are other components of the portfolio and they diversity and today is an exact example of why. And there are positive eff t effects of a lowinterest environment. Mortgage rates are plummeting. Thats helping refinancing and put more money in consumers markets. Auto loan rates are going down there are positive effects as this as well that somewhat offset the bad signals were getting from the treasury market the itb to your point, Home Construction and related stocks is making a new high right now, or within the last couple of hours, it has. These stocks are underowned. Theyre very low multiple stocks people dont tend to get excited about housing stocks that often, but they grind higher almost every day and the lower rates go, the lower it costs to do renovation, helocs, all the types of things that fuel renovation and Home Construction i think thats a really important point. Lets do some final trades. We have about a minute steph, start us off. I mentioned tjx before. Thats definitely on my radar screen the offprice retailer, somewhat immune to the tariff situation versus other retailers stock trades at 19 times forward. Its competitors trade at 21 to 22 times its at a discount to the group. I think the setup for the quarter is quite good. Interesting trying to pitch a retail company. Trying to be contrarian a little bit we get it we get it. Respect for you for that joe . Relative performance in the Energy Sector is very important. Look at a company like one oak and look at it relative to the rest of the Energy Companies that look like melting ice cubes. Well keep our eye on that one. Trb . Jpmorgan support is at 105. That had been resistance all spring, it broke above its still above that level. Forget about investing, which im an investor in this company. If youre a trader, i like the risk reward here three points down, possibly ten points up. I would be a buyer i dont hear anybody pitching well, weve got one here of look. Nokia, 5g is coming regardless of whether china and the u. S. Figure things out. And nokia is in neutral land great stuff thanks for watching, yall the exchange begins now. Thank you, scott hi, everybody. Heres whats ahead. Hong kong on the brink mad moneys jim cramer says the worsening situation there trumps the trade war when it comes to markets, so how worried should investors be . Well have the very latest and ubs now says the yield could drop to 1. 25 by year end. What that could do to markets, to housing, and to more. And nike is joining the subscription business with sneakers for kids. The question is, will parents do it and is it a glimpse of the companys future thats all ahead in rapid fire and there will be mac and cheese but we
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