Transcripts For CNBC Fast Money Halftime Report 20240713

Returning money back to investors. Whats behind it and what it means for the Hedge Fund World the Investment Committee is ready to go. Halftime report starts right now. Good to have you with us. Our Investment Committee in front of you right there, joe terra nova and pete that jdiana becky quick reporting it could come as early as today, 5trillion did assets under management best day since 08 Charles Schwab for its best day since november of 2011 a lot to talk about here. The potential synergies are all about costs. If you think about it, Td Ameritrade has been this serial acquirer over the last couple of years and have been able to with scott trade have cost synergies and in terms of reduction of 60 to 70 i dont think youll have that type of Cost Reduction here with Charles Schwab i think it will be somewhere around 40 to 50 in terms of cost synergies but a strong dea for them specifically. Obviously very negative for etrade. I had talked about a couple of weeks back that etrade potentially would be the one that would be acquired. You did you mentioned that, i believe around the time we were talking about the race to zero in the commission. Right so this is very surprising this is what it means for the investor for the investor this is good news this is just a continue compression of fee fees will be lowered for the Asset Management industry and fees are going down for ri. S and fees are going down for online brokerage and thats the story. I dont see any Regulatory Risk like people are talking about. I just dont see it. If theres any small risk here, its the fact that t. D. Bank owns 40 of Td Ameritrade and they have a significant sweep business so 114 billion goes into sweep every night into td bank at 1. 5 what will be the banking arrangement with schwab Going Forward. Doc, somebody know about this thing back in the middle of october. It appears somebody did, scott. They werent buying Td Ameritrade nor were they buying etrade and i agree with joe thats the one i thought they would take out, etfc but instead it was ameritrade and they bought schwab calls. The day before earnings in schwab, they bought these calls aggressively, scott, and those calls were not the calls thaads expect they werent shortterm call, they were all the way out till tomorrow, till the 22nd of november whoever was buying those, it was not just an earnings play. We talk about that so frequently instead this was a play for perhaps news like this, they paid 25 cent, scott. Those calls were worth as much as 8 this morning thats 32 times your money on that investment. I did not have them, sadly. Should we be surprised, pete, as joe is mentioning that its Td Ameritrade and not etrade that is getting scooped if this deal i think it was a matter of one over the other i guess what id say is this, its an asset grab, right . Thats what everybody is up to right now, 5 trillion in assets when you put this combined entity together so why are they doing this advisory grab. Right, absolutely and the efficiencies that online already has advantages in certain efficiencies but the one area i think people probably arent recognizing yet, once this deal gets done and moves forward thats a lot of employee, right . Do you think theyll need all those employees . Thats no. Thats going to cost the cost to those people in terms of as workers is going to be brutal thats unfortunate but the reality is were talking about huge numbers, scott, when you combine these two names in terms of employees that youre going to cut. Maybe. For efficiency reason. If youre looking to build up your ria in Wealth Management business, more may be better more in terms of assets, i would agree. Its all about scale but i services. This is about services too, not discuss about getting a bigger number. There will be some services but, well, ill go out and a limb and tell you when you look at the number of employees were talking, theres probably going to be a cut of 30 after year one of this transaction. 10,000 job, scott. Are we surprised etrade is down the way it is i know they feel left out today, but you can only think, perhaps, megan that in a sea of consolidation, why wouldnt they be next . Well, thats possible and i think as we look at this part of the banking and financial sector, this is a race to the bottom when it comes to fees thats a great thing as joe pointed out for the consumer and not so much for margins of some of these companies and so its not terribly surprising we are seeing some of this consolidation, schwab led with the move to commission and leading with some of this consolidation in the industry. I think its possible we see further consolidation. I also think its possible that per joes suggestion that maybe they were an acquisition target that maybe there was some of that baked in and thats kind of explaining in terms of the multiple what were seeing. I was going to agree with megan completely we dont know what the deal was if there were even talks but if there were talks maybe the deal wasnt sweet enough for etrade to consider taking that deal the Td Ameritrade is much more of an asset grab to petes point than it is the transactional business they have transactional business, yes. They do over 500 million a year, i believe, in payments so that tells you how big it is but its much larger on the asset side than etrade so what kind of premium would you be willing to pay or say well let them sit out there and twist and acquire them at a much lower price later on. I think youll see compression also with the ria business, scott. In other words, we all remember when it was 1. 5 then 1. 25 and 0. 75 . These are going down the same way the etfs like s p 500 etfs like gold ensax has one for 15 bips its the entire industry. Whats also interesting about in and etrade is out there Interactive Brokers are out there as well but now go back to td bank. Youll have a bank thats going to have 13 of this combined entity an interesting proposition if you think to yourself bank of america, Morgan Stanley, both have online brokerage offerings so i think youll see banks now more involved in the Wealth Management business, does etrade, does Interactive Brokers in that some sort of capacity etrade youll not getle advisory business but also somewhere down the road you have so phi coming. Sofi will be a major player and goes back to what megan says, great for the end use of the customer. Our next guest has thoughts about this ive seen him on twitter and he can expand on them now lets bring in josh brown, one of our very own. Josh, what do you make of this i thought pisani summed it up well this the earlier programs, that advisory and Wealth Management, thats where the money is, thats why a deal like this is happening. If youre not having any commission, you need to find your revenues from somewhere and you find your revenues by getting more customers what do you make of this story i think thats fair so im a customer of both schwab and td on the institutional side and they both do a great job so this is particularly meaningful to me how this thing shakes out but the good news is and i agree with pretty much all of the points that everyone on the desk made today, the good news is this does result in a net win for the adviser using these services as well as the end client and i dont know that i would term it as a race to the bottom what is actually really happening and the reason why etrade was not relevant and would not be acquired is this about Financial Adviser Custody Services where all the money is, thats where all the flows are going. The retail like buy and sell stock business died 20 years ago and no one told them so like this is really all about trillions of dollars that are on the adviser side and providing other services then. Now, the key to getting a commission is you have to replace that with Something Else and they have. Theres a phantom fee in the form of money market funds paying less than market rates and a lot of these Wealth Management accounts keep a large amount of money in cash and Cash Management is a Good Business if you can do it at scale so you need to acquire and thats why it makes sense that you see swb doing this because the bigger you are, the more you can make on cash sweet products and that is where their real profits are. Theyre not in buy this stock, sell that stock. S that a zero business for a long time now. Maybe there is a little bit of profit margin in options trading but straight up equity and etf trading is not a profit business Cash Management is and joe hit on that and i think pete hit on that and thats what i really think is happening here. You have talked about schwab in the past. Do you still own it . I dont own it. I had gotten out on the rebound after the Commission Free trading and i dont think i would buy it back and thats not to say that dont think theyre making a good move i do im just in other financials that i think are better positioned one further point that i think is really important, you know, when you think when you think about whats so great about fintac sofi was mentioned new companies coming up as custodians to advisers that are going to now say, okay, schwab, fidelity, pershing to a lesser extent sei now own this entire ria class of biz and maybe theyll be less competitive now that they have more market power so you have this next generation of custodians coming up and they will be more aggressive and this cycle will continue to play out so i think, again, the net benefici beneficiaries are the end clients and i welcome it. I mean, you wouldnt own etrade . No. Whats etrade well, i mean the likelihood you could make a case there will be so much consolidation they will get bought and now that its trading at an 8 1 3 discount in theyre not in any businesses that matter buy and sell stocks for retail clients. Thats a dead business theyre nowhere in custody there are now three players that matter its only fidelity, schwab if this goes through and persian and nobody else in brokerage matters so i know Interactive Brokers, people love it. I know etrade there are people who like it im not saying they are not good at it but they dont have the scale at it and are not growing no interest. I think its so interesting schwab was the first one to lower fees to zero Percent Commission and you had a table up on the screen before. They get 6 to 7 of their revenues from commissions whereas Td Ameritrade sold off hard on that news, also had to lower and get a huge amount of their 30 of their revenue from trading commissions and i think Going Forward, the price reaction from Charles Schwab on this news seems to be pretty positive, like the market is pricing in fairly low execution risk i do think there is some execution risk this is a pretty big deal, particularly for schwab which does not tend to do big deals like this. Josh, its joe. Fidelity, fidelity, schwab and pershing, these three firms before todays deal, 74 of all client assets in the ria Custody Business they already had 75 of client assets now youre going to have three companies that have 100 theyre going to do really, really well. What do you think this means for the traditional adviser community, the merrill lynch, Morgan Stanley do you think this places more pressure on them yeah and thats another secular trend that i think this accelerates because one of if youre at meryl lynch or Morgan Stanley, one of the main reasons you havent left to hang your own shingle is because you think youll lose service. So you say, you know what, im comfortable, all my stuff gets done here. My clients needs are met. We can do lending and do things that clients want us to do that are beyond just recommending mutual funds, schwab is becoming formidable in things like lending and if you do High Net Worth Financial Advisory business at a wire house and now you look at the scale that schwab is amassing you have to say to yourself, you know what, that might be a better deal for me to start my own ria, custody my assets at schwab, there is nothing schwab cant do as a brokerage, a bank, an asset manager, a camp, et cetera, et cetera, that my current firm is doing like they can do everything i have to take that seriously as a competing way to run my business and i think thats a really good point, joe. To johns point before, though, does that not place added pressure on ria fees and you see significant compression there. So you dont see significant compression in ria fees. The story of the last ten years is that whoever is closer to the client wins. So all of that fee pressure has been on Asset Managers riis have maintained the percentage they charge clients but whats changed is they have leeched all of the costs out of the portfolio itself so one ten years ago might have an internal ratio of 125 basis points using actively managed funds now the adviser still charging 1 but the portfolio costs nine basis points so the client is winning but the adviser is not ceding margin but taking that margin away from Asset Management and keeping it for themself which quite frankly is like the law of the jungle everyone is looking out for number one might there be pressure on advisory fees Going Forward as a result of this, i just think there will be anyway as the industry consolidates. There will be firms that get big enough that say, you know what, were going to cut fees before the next guy and that will play out regardless im not sure if the custodians merging is going to be a big factor in that. We appreciate you calling in. Appreciate getting your thoughts thanks see you back here. Bye all right thats josh brown. Last point, no one has taken a look at an etrade today. Not at all. Not by me, john. No, i think they go under pressure a lot of pressure in the short term, scott. And maybe its somebody else im not saying schwab did this to hurt them again, we have no idea what the negotiations were. I think that its likely that youll see some others in the space, whether its fido, whether its fidelity, whether its Interactive Brokers, any of those potentially tying up with an een trade. If this was the big dance to happen maybe theyre the ones who got left out of the party. I think they are the ones that got left out of the party if there is further dancing to be have its Goldman Sachs or someone like that who needs to be participating in the Wealth Management conversation, stepping in, going to td and saying, id like to buy your 13 or 14 of this new schwab Td Ameritrade conglomerate. Lets take a turn and talk about macys off sessions low still getting hit. Profits beat estimate, revenues and comps missing the mark there. Macys also slashed its full year guidance. The ceo says q3 sales impacted by what he calls the late arrival of cold weather, continued soft International Tourism and weaker than expected performance in some of their lower tier malls pete, i turn to you. You had a long conversation about this yesterday you had macys calls still do. Theyre out till january and like i said yesterday, there are stocks you want to own and stocks you want to trade through the options. For instance, when you look at Something Like macys, the only reason i own them, there was unusual activity and bought 20 plus thousand of the calls and that was intriguing. Somebody is playing more than the earnings, otherwise why are they going out till january . What they are playing for are the short squeezes we see happen all the time with a 30 plus percent Short Interest rate in macys, yeah, today you see it down about 20 cents or whatever that is. Nothing huge at this point in time what if the next we will see some moment in time where the stock starts to move to the upside and then theres that clamoring for tock to cover a little bit when they do that thats when you get exaggerated most of the upside the only reason im in there i dont think they and nordstrom and some of the other names have made too many mistakes theyre too far behind and have got to figure out what theyre doing in terms of who is their audience these days. Thats the problem scott. They dont understand their own audience in my opinion especially with the changing world that were in where not everybody has to wear a sport coat and tie every single day to work, jiet thats something that they have not grasped their arms around, i dont think, whether its nordstroms or macys or any other highend retailers. Tjx is the thing. Thats what i think of when we see macys and kohls. Tjx has taken the business away from them. Macys has tried to recreate themselves theyve done a lot of things but you can argue they havent done the right things in terms of recreating some form of a strategy, so macys where it sits right now the real value is in the real estate it hold, herald square. Long story. Thats been around forever. Real estate play like kmart was. Macys biles will be a reit and i think tjx when youre looking at what macys and kohls problems have been, it has been to the benefit of tjx. Its even worse if thats the word you want to use when you have an environment where everybody who comes on this network from investor to ceo to money manager saying the consumer is great, the consumer is great and then its great its great for those stocks, look out below for its great for five or six names. Five or six people. True, but i think petes hitting the nail on the head what does the consumer want . If youre hosting halftime youll wear greatlooking suits. If youre Somebody Just working at regular jobs these day, how many times do you see outside of wall street and investment banks and things even in wall street. People Walking Around in suits when you walk through the rest of working society, theres an awful lot of lululemon pants on these folks and open collared shirts and its not a 300 shirt, its something thats comfortable and all the rest i think that, you know, if youre looking to j. Wment in or at macys symbol m youre looking at basically businesses that have changed and maybe they havent changed with it and youve got all that Square Footage right now still, scott youre going into macys you can buy a couch. Makeup and all the rest. It is not when people compare that to target, i dont get it because not at all the same thing. Im not yet allowed to wear yoga pants to work were still working on that but i think theres the product, what theyre actually delivering and then theres how theyre delivering it which is really more of a Technology Productivity kind of omni channel story. Targets done it well. Tjx delivered in their own way and the mall retailers havent figured out how to reinvent themselves in the product they deliver it and how they deliver it to clients. Lets finish out our opening block and talk broader markets if we could. It feels like were frozen for this, you know, shortterm freeze over trade. Yep. We had this trend that felt higher i think it still does. I think we can agree on that but we feel frozen to some respects because were watching these trade headlines wondering if this phase one deal is going to happen by the end of the year, reports yesterday suggesting it may not. Is this the way its going to be, pete i would say so. I would say well continue in this whole pattern because of the fact you were looking at phase one and looking at the stuff going on with our president with the impeachment inquiry and add in the rest of the geopolitical things going on, hong kong. Take your pick at what you want to say is a story line right now and theyre all affecting us. If there was no headline yesterday that phase one may not happen by the end of the year wed turn sharply lower. We were turning we had a pretty sharp more. Dare i say wed have a different picture. As sharp as that move was, but as sharp as that move was to the downside lets put that into context of how big it was. We were down 200 plus points but from what area are we talking about that 200point move. Considering the fact that we are at highs, high, highs, high as enpull back 200 points its a lot less meaningful than it would have been years ago. Maybe a little overbought as well at the same time, megan, your firm is increasing your risk exposure. Last month we did lean back in i would say wade back into an overweight to equities i think our base case is that i think the trade deal phase one does get done. When it gets done, i dont put as much importance on meeting that year end deadline because i think the december 15th tariffs are going to be punted if its not reached by then. The important thing is not getting those next layer of tariffs on there because they would hit more consumer goods and would be more of an impact on the u. S. Economy but i think what were seeing, the fairly constructive signaling from both the u. S. And chinese sides even in light of the passing in the in congress of the hong kong human rights bill which had the potential to totally destabilize the negotiations and arguably if this had been earlier in the year it may have totally thrown them off track and seem to be continuing in a positive direction with the chinese negotiators inviting the u. S. To china to continue those talks, i think the market is going to continue to trade in with the ebbs and flows of this headline data. But alongside of what were seeing as kind of a stabilization of Global Economic data, global pmis turning up, south korean exports looking better, even german Investor Sentiment looking better so encouraged by that. Interesting note why Financial Markets new exuberance irrational. Its becoming more pronounced, the disconnect between Financial Markets, Nouriel Roubini says. Its been the same way for the last ten years you could make that argument for ten years. We havent seen any Significant Growth acceleration in the last ten years. At beast we do 2, 2 1 2 and fall back 1, 1 1 2 . So i disagree with that and i dont see it as pronounced by a sea of liquidity in an environment where youre getting cash plus a toaster and in a cash plus a toaster world you have to find assets to be invested in. The market looks through and looks ahead of Economic Data its not going to wait for that Economic Data to start to turn and arguably when the data is soft and moving higher is the best time to be buying stocks. All right lets take a quick break heres what else is coming up on the Halftime Report. Announcer cashing in the chips. Semiconductor stocks surging 50 this year. But ubs says its time to get out of some. Downgrading three big players in the space. Our experts debate it in call of the day. Plus, we want to hear from you to submit your questions for our Investment Committee, go to cnbc. Com halftime or tweet us. The Halftime Report wi sttthco wapner and the traders is back in two minutes driverless cars, or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. At fidelity youll pay no commission but shouldnt somebody this is be listening . Pression. So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. Welcome back, everyone im sue herera heres your cnbc update. Israeli Prime Minister Benjamin Netanyahu has been indicted on bribery charges. Israels attorney general says he will be charged with bribery, fraud and breach of trust in connection to three corruption probes if convicted he could face up to 15 years in prison three people were killed, 24 wounded in renewed clashes in baghdad between Security Forces and antigovernment demonstrators. Security forces fired live ammunition, tear gas and used sound bombs to disperse the protesters pope francis denouncing the humiliation endured by women and children forced into prostitution and migrants enslaved as fishermen and beggars and spoke to a crowd of 60,000 people at his first public mass in thailand. Here at home American Workers are spending more income on health care thats according to a new report from the Commonwealth Fund it found that in 42 states last year employee premium contributions and deductibles exceeded at least 10 of the average income and that was up from seven states in 2008. Youre up to date. Thats the news update, scotty ubs downgrading a trio of chipmakers Applied Materials. Kla, all cut to sell and say the run rate is peaking, our call of the day. Along with lam research. Talk to me before i go more broadly. I agree with the note i am holding lam as best in breed. Theyre cyclical in nature it could clearly have a correction i want to endure through that correction and have exposure with the company that i believe is best in breed lam Research Even though you agree with the note. I agree with the note it is out of place, that cyclically you could see a correction i still want exposure to a semi equipment in case im wrong. I will put teradyny into the portfolio. It is a name that got away from me but i want the exposure you have to understand as an investor this is highly volatile highly cyclical. There are moments that will make alltime highs and then two weeks later youll get a downgrade at a sell call and youre going to get a pullback but ill endure that that and not smart enough to trade my way through that all right pete people have ridden these stocks up. They have smh up 44 year to date is this the alarm bell to get out of some of these names you know, it makes some sense to me after this big run that they have and if were talking about peak levels then, sure, i mean, i was just looking at my portfolio as joe was talking i think the only chip stock i have any exposure to is intel. When i look at where the p e of that is versus many other names it is still inexpensive. Some names have had a huge run, absolutely massive, great run and i know that Applied Materials up 63 . Huge. 75 year to date, kla, 81 year to late. Lam research, 94 amd, 115 intel, 23. Right match okay, basically with the s p. Nvidia, 58 smh great place to be and steven wise i think he said he was getting out or trimmed a substantial amount adding, adding and now hes i think that makes sense and when im looking i used to have exposure in a lot of different names, none of them are there except for intel and like you pointed out its because of the fact it has not made the kind of move the rest of these names have aed to the upside and i think a lot of that had to do with the transition of the ceo and all the rest of whats going on at intel. Same thing. Ive got nothing zero, zip, nada exposure to the sector everything including nvidia im not saying im right im saying the paper has taken us out as for as let the upside calls take me out. The numbers are still strong you know, so to joes point as far as what could play out, month over month 7. 9 surge in the october numbers as far as the billings for these semi manufacturers, thats strong year over year its about 4 does it justify to your point, scott, a 50 , a 60 surge . Probably not so well have to see how that plays out but right now, im just waiting okay. Coming up, options bulls making bets on big tech and retail, the brothers najarian have those trades coming up next in unusual activity. Quick check of the sectors out of the s p energy is up again rba aerhiday. Wee ckft ts. For every dollar you spend at a small business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. vo cool. The flock blindly flying south for the winter. They never stray from their predetermined path. But this season, a more thrilling journey is calling. Defy the laws of human nature. At the season of audi sales event. people talking for every dollar you spend at a small business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. Welcome back dow jones reporting facebook discussing changes to its political ad policy. Pete spotting some unusual activity in that stock why dont you tell us about that. Scott, real quick well touch on this. We have an option thats only a couple weeks out the december 6 expiring calls are being bought stock is trading where it was, around 198 call it this is almost exactly and they were buying about 4,000 of these paying about 1. 25 for these options. Basical basically playing for a breakout to the upside. Facebook made huge moves both up and down and like this so i jumped on it and own some of these calls as well. Ill be in those for a couple of weeks. Second one for you foot locker. Weve talked about nike and all these various other. Take a look at foot locker stock was trading at 42. A little higher than it is right now but the january 50 calls were getting aggressively bought where it was coming from you can see. Started buying 4,000 as well pretty good buying there i like it. Gives me time. Going out to january i like the calls trading for about 95 cents im in both. This one ill probably hold for a month and a half or so. Nike has had a pretty good year. Yep. Right yep foot locker has not. Right. Why well, i think its a combination of what is nike doing and we all know about direct, you know, dtc, all the Different Things they are doing but foot locker is a little different animal, bricks and mo mortar nike is doing well on the online part and did an outstanding job there. Because of that i think they have a little advantage over foot locker. All right thank you for answering that question doc, what do you got take a look at this one its in the logistics and air transport space. Atsg is the symbol and the stock is up almost 4 today. What are they doing . Right now theyre buying january 25 calls pretty big numbers, id say about 4400 were purchased for right around 90 cent, scott. I bought these because its out in january i say ill be in them six weeks. Second trade, this one is a put trade and its grubhub you remember we talked about unusual activity in this as well as alternative data suggesting they werent going to do so well now we have people on a rally in the stock. Theyre buying the 39 puts that expire next week so this is a very shortterm play they bought these puts for about 40 cents i bought some just in case it goes down again. Remember, it bottomed at about 39 32 bucks about a month ago so is it going to make another whoosh downward . Thats what somebody is betting. Ill be in these one week. Good stuff. Come on back over. Coming up longtime hedge fund manager, louis bacon making a big move today after 30 years in that business he joins or, well, he joins a growing list were following the money when the Halftime Report returns in two minutes. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Oh, ho oh, ho, ho, ho you. You got me. Uh, what do you want . Ive got uh, ai robots, ive got vr goggles. I want your sled, please. No. [ chuckles ] timmy. Itd be a shame if this went viral. For those who never compromise. The mercedesbenz winter event. Whoa. He was pretty good this year. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Welcome back he made his name on wall street making bets on everything from u. S. Stocks to european bonds an asian currencies, now after three decades louis bacon is returning money back to investors. Leslie picker joining us following the money as she always does. Lesome, what do you make of this story. Thats right. Nothing short of a legend in the macro hedge world returning capital to outside investors who started Moore Capital three decades ago has decided to manage money for himself and the firm principals. According to a letter obtained by cnbc that was sent around to investors this morning bacon says disappointing results from his flagship funds informed the decision noting that all three returned low Single Digits year to date however, over 30 years moore returned a net annualized return of nearly 18 . The letter makes it clear that bacon is not converting his firm to a Family Office but he will be taking a step back from daytoday trading letting other Portfolio Managers launch their own funds within the firm. So still moores move follows a slew of other managers who have been shuttering their decades old firms returning capital to investors and or converting to Family Offices like leon cooperman, eric mindich and david tepper and john paulson are thinking about similar moves, scott. Im quoting from the letter and wanted your input on this. It speaks to the conditions that have existed and been so difficult for some in the business depending on what kind of funds youre actually managing he says challenging trading conditions and muted returns for our macro multimanager funds of late masks a vibrant success at moore and our long short equity platform and real estate and Specialty Lending businesses you can obviously see where the strength has been and where the weakness has been for some of these managers over the last few years. Oh, absolutely. Theres been a huge bifurcation between private equity, real as celts and then managers who are operating kind of these more traditional hedge fund models. Just new numbers out from evestment saying macro has been one of the most challenged with 23 billion worth of outflows year to date which is remarkable long short equity has struggled as well. Sounds like moore has had a bit more success in that area but talked about it, getting back into it because he felt like conditions were right for it and deciding to throw in the towel on that move as well so its definitely a challenging environment out there for some of these kind of more traditional hedge fund manager. We appreciate as always, leslie, thank you thats leslie picker, Stock Exchange louis bakeson a legend. Looked like you did. I do. Growing up in the commodity business, you always knew that louis was one of the more successful and belongs on the mt. Rushmore along with stanley and paul tepper. Tepper is more on the equity side so a lot of names im talking about grew up on the derivative side trading oil and currencies, david has been very successful in pivoting and now trading more equities. So i think its the wrong conversation to say that theyre failing in the markets and theyre underperforming. I think the markets have just changed specifically the commodity markets. Theres not the volatility that they experienced in the arizona arizona90s and 2000s. A big part is the story and the supply and balance in t the 80s and 90s and 2000s isnt there anymore. The last five years price of oil, 26 to 76, 50 range take the same fiveyear period ten years prior from 04 to 09, talking about 33 to 145 so the supply and demand because of Technology Balance has gotten so much better, we havent seen significant price spikes and thats where the names like a louis bacon and paul were able to benefit from that outsized volatility in the commodities world. Coming up well answer your questions on honeywell, United Health and the financials. Well do that when we come back. Yes im stuck in the middle with you, no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. So it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Could you email me the part great about geicon, tim. Making it easy to switch and save hundreds . 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. It nice . Ce. This is the mostawarded minivan three years in a row. The van just talked. Sales guy, give em the employee price, then gimme your foot. Handsfree sliding doors, stow n go seats, man, yall getting a hook up and yall dont even work here. Pacificaaaaa whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Give me one bank stock youd buy right now. Usb. Minnesota based. 2. 84 dividend yield. Great mortgage business. Digital innovation and i like the beta exposure relative to other banks. Citi is at 1. 3 bank of o america is 1. 2 jpmorgan is the market so its one. This one is 8. 5. Ryan in new jersey. Honeywell. What are your thoughts like it a lot i thought the barrens ryan just a couple of weeks back had these guys as their cover story and one of the reasons was the ceo wants to transform them into an Industrial Software play that they say is going to increase the value by billions of dollars. I like that. I like honeywell its one of joes picks and i think this one goes a lot higher pete, to you from adam in canada is United Health fully valued . Should i sell and take profits i got out of it and moved over to sigona so i love the name i still think the three of them are all great xens, but ive moved over because i saw derivative options megan to you. Your thoughts on the xli, industrials. We like industrials we recently moved back to overweight we see it as attractive value. Constructive on the Global Economic story so we like it from a shorter term perspective. We were in the aerospace area, we diversified a lot to opportunities in airlines and even heavy machinery good stuff. Well take a quick break and come back with your final trade straight ahead theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. Zblncht lets jump down to capitol hill scott, the senate now has the votes it needs in order to pass a shortterm spending bill that would keep the government open through december 20th. A current vote tally is about 74 in favor 19 against remember, this would keep funding levels at the same place through december 20th. The house has already passed its own version of the bill so once this bill ends, it will go to the president s desk for his signature. Im told he plans to sign it he has no concerns with either the bill or deadline so this would be a rare show of bipartisanship while this impeachment Investigation Continues to be underway the hear iing is is scheduled to reseem any moment now. If it hasnt already republicans will be getting a chance to question fiona hill, a former staffer, as well as david holmes, who was an aide to the state department now yesterday, republicans repeatedly tried to press the point that none of the witnesses was ever told there was a connection between White House Security aide to ukraine and any investigations into 2016 or burisma or the bidens, but today, holmes told lawmakers there was never any doubt in michigan mind the two were connected my clear impression was that the security stance hold was likely intended by the president either as an expression of dissatisfaction with ukrainians who had not agreed to the Burisma Biden investigation or as an effort to increase the pressure on them to do so. Now we are expecting this hearing to go for several more hours. Proeshuate that well take a quick break final trades are straight ahead. Sundown vitamins are all nongmo, made with naturally sourced colors and flavors and are gluten dairy free. Theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. So servicenow put your workflows immhm. Cloud, huh . Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. Were back lets do some final trades we mooued to an overweight on technology we like the cyclical story were constructive on the economy. Its had quite a run, but we still see opportunity despite higher valuations. Pete. Real sharp turn buying snap call us. Just bought them five minutes ago. Just for a trade. Yes, sir. Dr. J axsm therapeutics i bought them during the show. Joe you get two. Part, sell half what do you think of the call on tech . Get a long tech . Now always time to be long tech exactly its a longer the term story. Good to see you the exchange starts now. Thanks. All right, thanks, scott welcome, everybody, im dominic chu and heres whats ahead. A major deal on wall street could be announced any minute with sources telling cnbc that Charles Schaub is in talks to buy Td Ameritrade. Plus, google lays out its political ad policy then one of the biggest names in media has a a warning for hbo. But lets start now with a look at