Transcripts For CNBC Fast Money Halftime Report 20240713

Short bet. Traders take their positions fast money Halftime Report starts right now all right welcome. Big show today our Investment Committee is here joe, stephanie, josh brown lets begin with the markets those comments from paul jones, what he told cnbc in daf as about what he calls the explosion driving markets. We are just again in the crazies craziest monetary mix in history. Its explosive it defies imagination. And i dont think anything is changed. It reminds me a lot of early 99. So early 99 we had 1. 6 pce 2. 3 cpi we had ex act same metrics today. Thats out in davos josh brown, turn to you. Answer the question. Time to worry or party like its 99 i think most investors are doing a little bit of both the data does not show that any segment of investors, whether talking about institutions, hedge funds, retail, Family Office foundation, there is nobody out there right now acting in word or indeed as though its 1999 you just dont see that form of euphoria out there in the market do we have stocks that are extended 100 up 11 above the average in the s p. Thats somewhat closer in extreme. 4 to four to five stocks somewhat extreme. So wouldnt surprise me at all if things get a little over blown and then sheort term there is a pull back but i dont see anybody screaming there sa new paradigm. Antidotally i dont see is that. Thats fair smile direct 53. Tesla 32 uber 23. Last week, we had a fund manager talk about tesla 6,000 those are certainly signs that you would say, well, maybe thats a little bit of euphoria. The question is to the group, ste stef, is whether this cocktail of fiscal and Monetary Policy has us so intoxicated that we eventually fall over and fall over hard . I dont think well fall over in the near term i think a lot of this ends on earnings and growth. We talked about Earnings Growth how i think its going to be better than expectsed this year. A lot of it has to do with business confidence. If you list to brian this morning on the ceo bank of america he actually said last year small and medium businesses did invest it was the Large Companies that did not because they were impacted by global trade and global uncertainty so to the extent that trade is a detaunt resolved somewhat, and you have Global Growth stabilizing, i think you will get Business Investment therefore lead to better earnings and i think there are pockets in the market, energy, that are still very attractive, health care. All right last week sat here saying hes getting a little nervous calls this fly me to the moon market those lyrics could be an investor frolicking in stock market as a person in love they bumped the s p up to 3,600. 8. 1 upside from current levels. Whats this mean so, im going to echo what you said i think there is a lot of value that investors are in but starting to chase. Again seeing this story again of high flying stocks the ones you just mentioned five, up 30, 40 . I could have mentioned a ton of other ones. And i think you have to be careful as an investor dont fall in love with one part of the market which is stocks trading on 30 expected growth for the next five years. You need to rotate you need to manage your risk and you into he had to have exposure to areas that have better fundamentals like energies some health care and cant be in 45 , 50 in that. That was 99 when people were 40 to 60 in technology andsaid i dont want to touch the value side and the next three years after that value actually had positive returns. Paul department say this was late 99 right. Like on the precipice of doing a tip over. Six months to get out. Great. He said its early 1999 that you are starting to see maybe more signs of euphoria based on this powerful or explosive mix of monetary fiscal in the market. Thats what it is, i dont know that weve spent enough time really understanding the catalyst that it is. Its about supply and demand in markets. Its about a limited amount of supply in this tremendous amount of demand in a low yield environment thats just chasing Growth Opportunities so you could have said that the right strategy in the last three years was to make sure that you were kind of diversifying away from growth into more value names. How did that work for you . In the last three years growth is up over 100 . Value up 17 we are seeing the evidence again. So far in january, growth as measured by the sgx is up it 5 while value is only up 1 . So what is the market seeing okay and what is the catalyst behind that i go back to its supply and demand its the actions of the Monetary Policy its a search for yield. And tell me when that changes. And until its going to change, you stay the course. But if we grow faster than expected, though. I would love, i hope we do. Me too. But thats the point. If we do that for the last five, seven years. I get what you are saying but no great mystery as to why the market is going up. No. The question is, is it going too far, too fast . So when we say the market, its really tough to paint the whole thing with a broad brush, because so the big narrative about what happened over the last 12 months is multiple expansion. Okay we get t people got less afraid of certain big geopolitical issues the fed came in too. A lot of confluence of a bunch of things happened at once oil prices stayed tame employment got better. And people said i im willing to pay more for earnings. But now when you break it down all stocks werent treated that way equally. For example, Growth Stocks got 43 . Take the russell 3,000, break it in half, it got the benefit of a 4 three or four 4 expansion multiple only got half of that, 24 . So we didnt do the same thing for all the expectations for all of the stocks. In the meantime more growth in russell than russell 1,000 Growth Stocks. So you do have opportunities intra market you may not have as much upside entire market in general given how far things have come so i agree with him, look at your portfolio if you are 30 apple, 10 tesla, 20 alphabet and facebook, its not that you cant make money from here. Its that you are definitely making more of a bet than somebody who is more diversified or hoping towards cheaper stocks. So they asked a question today how overbought is overbought you know, paul jones is not the only one kicking around this question they talk about. Com bubble in 2,000. There are legitimate reasons why we have accelerated and manner in which we have and its time to let it ride not worry so much. Stef said earnings are going to be better. Yea, stef. Others have said out expectations are too low. Look. I think the comparison to late 1999 or 2,000 are off the mark we just dont have the excesses in valuation, in flows, in sentiment that came after that are we a little low . I think we can agree on that the problem for me is im looking for the positive catalyst. Stef you mentioned higher than expected growth and better than expected earnings. I agree that could be positive catalyst absent that im at a loss. Im really looking for other positive catalysts to offset some negatives. We havent seen Business Investment in years. If we start to get that. Thats where the Earnings Growth is going to come from. Get that late in the cycle youll bank on that . You better get it thats where the Earnings Growth will come from. But to joes comment flows in terms of liquidity, at some point the fed is going to stop expanding Balance Sheet. Good luck predicting that. That just doesnt happen. You also have an election coming up. So all im saying here, i want to finish the point right now the risks and rewards seem balanced where i come down from that is trimming i trimmed win baggo today. I continue to trim the out size winners which is just routine portfolio management. Thats the actual positive catalyst because im speaking from very positive tone about the conditions that support global risk assets but what am i doing doing the same thing jimmie is doing im trimming equity exposure for the better part of the last year. That behavior signals you know what, this isnt 99, euphoric moment this is a moment that i dont know its an activity that signals maybe you guys are getting a little nervous about where weve come in a relatively short period of time. Are you going tell me thats not the case but thats the exact Human Behavior thats wrong in the moment and exact Human Behavior that means there is more to come to the upside. Heres the flip side though because im going to give you that im a little nervous, a little late 1999, no. But the trimming that ive done which is raised cash to 10 . I havent put that back to work. Im not going higher than 10 . I think thats wrong however, having dry powder for drawdown in the peculiar ket, 3, 4, 5 which happens routinely we can bet on it ill have the dry powder. I agree im doing what we are talking about trimming and finding that im sitting with a little more cash because now im looking for an opportunity to say, hey maybe after earnings season or some other catalyst comes and i get better. Sure. So the interesting question is, taking really right off the page of what you guys are talking about, is this idea of going to cash ray weighed in on that today heres ray on davos. The issue is you cant jump into cash. Cash is trash. You have to have a well diversified portfolio. First you have to be global and i think you have to have a certain amount of gold in your portfolio or something thats hard. Maybe this feels to me like a little there is no alternative argument based on where rates are around the world, negative. Its impossible generalization to make and ray is speaking to how hes managing or how his firm is managing a hedge fund with investors with all different time horizons. For sure. Not the only one hu. Suggestion though about this there is no alternative. Let me finish my thought. The regular person investing, they may be using that cash within the next five years, and in that case cash is nottrash. Cash is not going to drop 30 because the wrong tweet about china trade negotiations goes off. So its only trash if you have an infinite time whore eye son or being jumped on returns on bridgewater. That is not the case for most people watching. So cash or cash equivalence or even tips or short term treasuries they are part of a balanced portfolio if you are going to use money in different durations, 3 years or 30 years, thats how you are making that decision you are not making a decision how you feel on the s p. Its ridiculous lust premise. To his point, if you are whatever 60 years old, and 35 run in the market you are out of allocation and right now the thing to do is go to cash and figure out what you want to do because you are preserving the downside you are protecting not trying to say you are not making a signal to the market that, hey, i got to get out. Its you have to stay within your objective. Counter to tina, which i thought was happening too, a lot of people when they talk about tina is go to yield stocks what are the biggest yields . Energy just as an example of a high yielding energyplay, the stock was down friday. Down again today so at least in the context of tina being a search for yield oriented stocks certainly not working in that regard. Part of my point discussing this issue, for the trimming, trimming thats been going on of these stocks. Not here. Right our point of these guys and joe. I dont see any of you telling me, well, we took the money and put it x, yz ticker, we put it in cash and waiting. I would bayou nighted health care on a pull back if we get a pull back in the market. That fabulous quarter. I would buy citigroup and bank of america those three companies have good earnings and yield not united but the other ones. But also massive runs. And financials have lagged for years soy think you still have up sides. Those are the names on pull backs. Earning season you always get your chance as looks and overreactions thats where you want to do the job the buying the quality names on sale. If i would have lead this show different question if its time to party like 199 and or if i would say its time to get out you have your big winners would you will an of you said yes . Im getting out of my some winners and not going to cash. Im going to places like today dont feel too good, thats emerging markets, and chinese equity its tips. Its other nonequity type of Asset Classes to give me diversification. It doesnt feel good today but i think its going to work for me in 2020. Im going to eog, United Health care. Financials i have 20 in financials im still sticking to financials and taking other ones ive done well. Increasing your exposure in areas like that with proceeds what you are trimming. Yes, but im still raising a little more cash than i thought i would. And wait for something to blow up in earnings. I would buy win today down 5, 6 , great story. Recovery Great Management Team sochlt there are certainly pockets. Youll get your chances. This plays perfectly into your next conversation so one of the stocks has been apple, you know that, doubled over the last year, set a new high today remarkable gains for sure, but is it time to sell or trim some of your holdings if youve experienced those kinds of gains. Our next guest, one of morningstar ultimate stock pickers did just that with a third of his Apple Holding bill nygren live with us from chicago. Bill, welcome back. Thanks for having me. Play so central into the conversation we are having why dont you tell us why . Why and when well, as you said, apple stock doubled over the past year went from a stock where all you had to believe was that apple was at least an average company. And you could argue for a pretty significant gain because priced at such a discount for the market now its priced at a premium what we do oak mark is sell whats popular and get to full valuation in our numbers to recycle that capital into things that are cheaper you are talking about how excessive some pockets of the market are getting and i do agree, there are some things that remind me of back in 1999 money coming out of value funds, going into growth funds. The pe spread getting so large from the companies that are loved to those that nobody cares about. One of our Large Holdings is Ally Financial it sells seven times earnings, below book value, buying back a lot of its stock each year people worry that the average car loan is increasing in duration up between five and six years now. Well, kind of for getting that over the past 30 years the average age of the car on the road is up more than 50 we just dont see an investment in ally at seven times earnings as being at all equivalent to an investment in some of the names you talked about earlier that are up 30 in a dozen trading days this year. Right but you are making a statement that apple is no longer a value stock. Apple is approaching our fair value numbers. And ally is selling well below the price we would buy it at it doesnt make news if i say ally is at 30 and i think some day in the next two years it will sell at 50. That will be like 11 or 12 times year ahead earnings two year out earnings but i think thats the kind of opportunity thats there and in the meantime, you are getting a 2. 5 yield which is almost what you get on a longterm treasury bond. I want to take a look at the shares as well we are continuing to look at apple. But you make the argument though that, and maybe this is somewhat controversial to, especially given your position on apple, to argue that what you have recently, that google and netflix are value stocks i think people would certainly, i dont know what their reaction would be, one of disbelief that you think netflix is a value stock. The difference is we think gap accounting does a good job of reflecting the value at apple. And at the current pe you need to believe ap sell a significantly better than average company just to earn average returns. Netflix, for example, we think gap accounting does a great disservice to them as they are increasing their moat by growing subscribers. Hbo subscribers, hbo is charging maybe 40 more than netflix is they were valued at about 1,000 a subscriber when at t purchased them at that same valuation, netflix today you are not paying anything for its future growth a name like alphabet, there is a lot of cash on the Balance Sheet thats hardly earning anything and then youve got all the investments in other bets which on balance lose money but are building tremendous value in things like waymo and autonomous driving. Not to mention youtube which has more minutes of viewing than any other video streaming service. If you valued that at half what Cable Networks are valued at per hour viewed you would get Something Like 100 an hour in alphabet so when we make the adjustments we think google as Search Engine is selling at a market multiple or less and we believe its a better that than average business. Hey, bill, its josh brown. Youve been known to take on unconventional perspectives on companies and find ways of which to find value not appreciated and certainly worked in your favor. So im curious if youve ever kicked the tires on uber and if you think the netflix analogy about the ways in which gap accounting maybe doesnt tell the story of how profitable they could become or how their user base should be looked at from invest tor per spec i have it love to hear your thoughts stocks up 21 in the last 30 days. I dont have a specific comment on uber other than its kind of in that same category of companies where there is a tremendous investment going on to build the Customer Base and gap accounting just doesnt give you any credit for those in tanksable assets that go into increasing the Customer Base we have looked at uber and we havent been able to get to a point where we think its selling at less than two thirds of its business value. But those are the kind of names that at the end of the year last year took a pretty big hit because there is the frustration with Companies Whose value growth wasnt being reflected in earnings and its entirely possible that names like that can be value even though they arent cheap on price to book or price to earnings. Have you been reducing, its scott again, bill, have you reducing your stake in ge which you made the case more than one time in the last year or so that you were a believer in the term around now stocks had a run, obviously, but have you reduced your holding . We have made a very small reduction in the number of shares thats about kept the weighting in the portfolio even. Because as you said, it was a better than average stock last year we still think ge is cheap stock trades at about 12 on what we believe are depressed earnings this year and next, thats barely a market multiple. And we think it has good rebound potential from there. And you are making some kind of bet on energy even though youve reduce add couple of positions you had and sold halburton in chesapeake and moved that money into stocks you already owned including diamond back you believe its in the energy space this year . Yeah, its hard to find a space unloved like energy. We had tax losses to take in both companies and wanted to move that capital within the energy area to companies where we were confident management was doing a good job on Capital Allocation and the discipline thats coming to a lot of the producers now where they are staying within their cash flow budgets, returning exist capital to share holders, kind of growing up as businesses, those companies are selling maybe at a 25 or 30 discount on the enterprise value ebit dot ratios compared to where theyve been over the past decade even though the market is selling at new highs on these relative to the past decades so we like the energy space a lot. And we want to be with management teams that we believe are allocating capital in the shareholders interest. Well let you run in just a second are you surprised where the market is . No. I guess i would say im not surprised. Its a little bit elevated relative to its own history. Selling at maybe 18, 19 times this years earnings but you look at what alternatives are tan compared to 3 on a long government, 2 on a ten year, almost nothing on cash, it makes sense that pe ratios are somewhat elevated relative to their history. And the Companies Growing and returning capital at a 7, 8 and youll number, it takes no time at all to erase 15 or 20 premium to normal historical pe rach ocean so im notgoing to argue the market is cheap, but its priced in the unloved names like the energies, to us, they dont look like they are priced at all consistent with elevated market. Im going to put you in the tina camp. There is no alternative camp you are cool with that i dont want to say we are justyna. I think the portfolio we own would be cheap in the long bnd was at 4 or 5 so i think the names we own are cheap on an absolute basis i think the market is cheap relative to any of the other options. All right interesting points bill we appreciate it as always well talk to you again soon. Thank you. Thats bill laying out why he thinks netflix is value stock, however one of the Top Hedge Fund managers increasing his bet on that. Well have that coming up. Plus intel big call of the day. We are back in just two minutes. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. 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. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Welcome back to the Halftime Report im in washington where the impeachment trial of President Trump is set to begin in earn necessary in just about a half hour Senate Majority leader Mitch Mcconnell will take to the floor in a few minutes to open the channel for legislative business but this afternoon will be his show he has set out ground results for the trial which will be grueling but potentially speedy. The rules call for house managers to provide 24 hours of opening arguments. There are seven democratic lawmakers that will make the case for impeaching and removing the president. Theyll be led by house intel chairman adam schiff they have eight attorneys on it and led by White House Council Pat Cipollone as well as president s personal attorney jake sekulow starting in exweek senators will have 16 weeks to ask questions of both sides. Then there will be four hours of debate whether there should be additional witnesses or documents. That should take us through about the middle or the end of next week. Scott. And after that, its anyones guess as to what happens that will be an active and open debate that happens on the senate floor starting this afternoon. Back over to you. All right thank you for that update. Down in d. C. For us. We have new details emerging today on David Einhorn Netflix Einhorn Green Light Capital saying it increased short position in that stock during the Fourth Quarter of last year using the late bounce to make it a, quote, more substantial investment stocks rallied more than 20 the past few years last 12 it has under performed what do we think about this . The market perceived the king as Global Market for streaming video on demand in the letter. We believe this narrative is finally coming to an end i mean, weve had this conversation multiple times. Josh, on this desk, staff, about disney, netflix, competition, subscribers who is getting them or paying what and lose them. I dont want the space because i do think the competition is substantial his stock trades 50 times. And had a nice run but content costs are going up subscribers in the u. S. Are declining. And international they are discounting like mad so this is a name that has high risk high reward im not there. So you think hes right yeah, i do. I think there is there is no scarcity there is unlimited amount of options what you can watch there is reams and reams of free content. Like think about who netflix competes with. Its not hbo its li its li its like youtube and tick tock. There are infinite supply. And so much content given away for free because being used to support other activities amazon prime being a great example of that. So i feel that hes right. I dont know about the timing. I would never be a good professional short seller. Because i would throw my hands up really quickly. I no he hes been patient with this short whether or not he makes money, i cant tell you but i dont want to be long in netflix. I think its at risk. With netflix about to report, this is probably the most important quarter for them to report in the last several years. You are coming off a quarter. Q 4 disney. In terms of Quality Content they have come out with a slate of content like you have not witnessed in prior years they have also had to endure the introduction of disney plus and apple tv you are going to know if they are going to get margin expansion. I think thats the story for netflix. Can they get the margin . I question if you can. If you look at the other ones, they have had 20 Market Expansion over the last three months. How can they have that if they dont have Pricing Power . Thats the whole point. This is critical this quarter. So netflix put up over 100 million to make the irish man. God knows how much to promote it phenomenal movie pretty much universally people that watch t long but good won a whole slouew of awards is that profitable for them to do every quarter we are about to find. Disney meanwhile launched with nothing old content. Thats been a big bear case spend on content. 30 million down loads of the disney app in 2014 number one most downloaded app in the Fourth Quarter of 2019 in the United States over the nearest competitor by the way is tick tock. So like netflix dropped that magnificent film, high profile film right in the midst of disney plus launch well see if its worth it. And pricing it up 30 last year. I also think sentiment is in different place and know that going into the quarter. We believe this narrative, right, bullish narrative winner take all thing is coming to an end. There are some that will tell you though they believe that bullish narrative. There has been a price adjustment to netflix since june of 2018 that reflects that and the worst has passed again, im not telling you thats the case. I read a note from Goldman Sachs that raised the price from 400 to 450 so analysis on net in iflix is y diverse. I think its a wait and see type of mentality but ill tell you sentiment is not as bearish as it was just six months ago chblt i think that sets up where it raises expectation. You bought a smart tv three years ago, there is a good chance by certain manufacturers there was as netflix button on the remote if you buy a smart tv, if you bought one for christmas, this year, everyone of the competitors to netflix has an app is now preloaded on the home screen including disney plus. So the game is not theirs anymore. Over the top streaming to the point where it was just three years ago. I think things have advanced that rapidly. Central question, is the worst over yet or is it the worst yet to come and if the worst is not over, they cant make the move that they made 18 months ago which was to raise prices. Thats not going to work anymore. Discounting internationally 50 in india. They could still do great by the way and multiples could shrink they could still have a great 2020 fundamentally but investors might zb, its good, its not enough. Well, michael finally have his moment no, probably not. Sorry. Thats what im thinking about today. Okay. Lets talk about a couple of other things that green light is doing which i thought was interesting and wanted your take on them. Long gold, okay, gold had a huge move last year one of the best moves in several years. And the other is his short on credit interesting because its both Investment Grade and junk and high yield. Well, i think the high yield a lot of that plays into the energy conversation. And going back. Let me give you the reasons why he says. One, the economy is appears to be decelerating. Corporate debt has exploded. Rating agencies haen been complacent thats the crux of it for three sort of reasons why he takes a look at the environment and says now is the time to be short. Corporate debt whether investment. Hes way early. Hes likely to it be very right but early by at least a year to this the issue with core trait credit, that comes to roost when you have a recession when the tide goes out and see who is swimming without a bathing suit. But money isnt made after the fact. Yes, it is. No, no. Negative. You are paying. Exactly. Im not saying hes obviously if hes early, fine, trade is not going to work now. Yeah. But would you rather be early than late . Not by a year josh just said it. Negative for five years. You want a negative 4 carry like over the course of a year on billions of dollars, that adds up. Like you really you are almost better off waiting for a substantial break downen an age im going to miss the first 20 of the move but 100 of that move is going to be big enough especially if im using leverage i dont know because you could be dead right on the fundamentals of sub Investment Grade credit deteriorating. But price might not be affected for a long time especially in the etf realm which is frankly where all the flows are coming from. The other problem with that is this a macro call and macro strategies have been obliterated in the last five years. For whatever the reason you want to sight central bank policy, whatever it might be but the macro strategy just does not work anymore and for the viewers out there, you are better just to go with the long strategies, the growth strategies, the value strategies, the quality momentum strategies thats more prudent. Anyone have information on new Tech Strategies . I have a losing take on 2. Me too. All right all right. Well, would well move on. Keep your questions coming to us as well well because well answer them in ask halftime coming up. You can tweet us as well as a reminder you can listen to us on the go live on cnbc app. We are back right after this gesundheit. [sneezes] i see something else. A star. With three points. Youre in a. Mercedes. Yeah, we wish. Wish granted. With four models starting under 37 thousand, there could be a mercedesbenz in your near future. Lease the gla 250 suv for just 319 a month with credit toward your first months payment. And now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. As of 12pm today, i am debt free im sue herera here is your cnbc update all of the deaths from the coronavirus have been in china in ma may la, Health Officials there have stepped up surveillance at major points. We continue to keep on alert. Because there is a risk of human to human transmission. And its obvious there is no more restricted to here, but transmitted to other parts of china and also other parts of the world. House Speaker Nancy Pelosi and a congressional delegation paying a visit to the sight of the former nazi german death camp of auschwitz. Comes ahead of the 70th anniversary of liberation by soviet union troops. Tesla says it is completely false. It has discussed majority of the complaints with the national Highway Safety administration. You are up to date thats the news update scott back to you. Sue, thank you. Appreciate it. Bullish call on intel ahead of earnings later this week the desk is going to debate that next on the half jim giving me a stare down already. Im just admiring the work you do, yasou admire my work. Legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. 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And Digital Publishing is doing something it has not done since ever well tell you what that is and more ahead on the exchange scott, back to you. All right well see you in a bit thanks for that. Intel upgraded today out perform. Naming three catalysts that set the table for dramatic change in 2020 price target gets bumped up from 64 to 40. Farm a gwen was salivating. It was a stare down i cant wait for this segment. All right. Farmer. I thought we were going to it. Grab your pitch fork. Hes a silicon farmer. I dont care about the upgrade. He was holding his nose. Sees down earnings this year yet upgrades to the stock. He clearly does not like the stock. He notes their operational miss steps. He has questions with leadership changes. He has questions with Leadership Compensation for that matter heres the thing, all of that is in the Rearview Mirror if you are looking at intel, really looking at this macro gdp picking up one of the biggest semi conduct tor out there. Get the economies of scale and they have broken 0 utah to the multi year high. Let me ask you a question because i think you mischaracterize the analysts a little bit did they have a share loss did they lose share . They did. Okay. Check. I said hold on. Did they have a transition disaster they did. Check did they have an a change in management did i not say yes, i said it all happened past tense. Okay. The analyst says, quote, share loss, transition disaster, changing management guard, low stock in the 60s tells us that, Pay Attention to this part, the table is set for change in intel. This is analyst who agrees with you, not thats wrong. Okay. Agrees with all this garbage is in the Rearview Mirror and now is able to look ahead and say blue skies are ahead. Sure. I cant take what you are saying and juxtaposes that with down revenue and down earnings this year and down big well below street consensus. Wait below street on both of those. And say this analyst is excited about this stock this is a throw in the towel report all right. He was at 40. The stock is at 60. These throwing in the towel and grudgingly takes it to 64. Why would you be excited about something under tear formed and left behind good question thank you for that set up. Because if you are a long time investor intel you no he this is a stairstep pattern. Its been nowhere for a year and a half thats the pattern it consolidates. Before that up about 75 in about two years. Its now breaking out and setting up for the next leg higher this stock moves in multi yearle stairstep patterns this is the time to own it look in the Rearview Mirror not a good time to invest. Stephanie. I think this is very good but he did only go to a hold because the manufacturing problems are real and will lose share, a lot of it and continue to lose. Normally we dont do calls of the day that are mere holds. But the mere fact sell to a hold there is a belief. Ive learned over the years a lot of the times when analysts goes from a sell to hold, they dont necessarily have to go to a buy. But there is something that changed that got them to stop being so negative. So i actually think this is a really bold call for him he might be right but the manufacturing issues are going to take time so thats the reason why i think, there are other names i like, i much prefer lam research and broadcom and lagged just as much as intel. So i think you can pick and youd choose within the semi space this one i get the call ill give you a second to rebut that if you need do you prefer others as well i do. Jim is a value guy semis have all run really fast how are you not a value guy you told me the beginning of the show you were taking money and putting it in value. I did say it, but its also value in qualcomm. I like that stock. I can see why he likes intel if the semi space comes up and intel is where it should be, this stock should run faster than others. I just want everyone to have fun. We are. I like that conversation. Ask halftime is up next your questions on wells fargo, sysco, and visa and more in two minutes. Whatever happens out there today, remember, you have the hilton app. Will the hilton app help us pick the starters . Great question, no. But it can help you pick your room from the floor plan. Can the hilton app help us score . You know, its not that kind of thing, but you can score free wifi. Can it help us win . Hey, hey were all winners with the hilton price match guarantee, alright . Man, you guys are adorable alright, lets go lose this soccer game, come on book with the hilton app. If you find a lower rate, we match it and give you 25 off that stay. Expect better. Expect hilton. 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. Were committed to making college more affordable. , thats why were keeping our tuition the same through the year 2021. [woman] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. Were back lets do some questions. You ready . Mike, in a new york city for joe is the gdx a buy, sell, or hold . A buy i bought it october 23rd of last year the reasons are simple number one, its a technical breakout its a replacement in commodity indexes for the failures of oil. Also think about two things. Think about palladium, what it has done in the precious medals space. Now youve got platinum, its about to have the same breakout above 1,000 gold had in 2019. Stephanie, rob in london, canada good hockey place. Right, joe sure. London, ontario london knights. Wells fargo, how far would you expect to it fall . It hasnt done anything in a year 4 yield its a turn around story their efficiency rate is 78 their goal is 60 . Theres operating leverage hated stock. I like it. Thomas has a question for josh visa, okay, maybe last years news, but its up 23 this year. Trimmed at 184. Should i buy it back or just hold well, its more than last years news. This is one of the best stocks in the history of the stock market its up 950 in ten years versus the s p 500250 youre not discovering anything new. If you buy it, its starting to form an Empire State Building pattern on the chart its gone vertical this year but this stock has been going up a decade way ahead of the growth. Its a forward earnings multiple of 43. Youre buying a momentum stock, pure and simple. Its fine. Just dont talk yourself into youre buying something cheap or undiscovered youre not jimmy in boston, massachusetts. Where do you stand on viacom its been your final trade over and over and over and over again. I added five overs two overs calm down, scott its only tuesday. Right . Yeah. Listen, look, this is a takeover candidate in my opinion. You look at the last three takeovers, disney buying 21st fox, come cast buying nbc and time warner bought by at t this is trading as a 7 times multiple did you drop an fbomb . I think he accidentally left off the x. 20 th century fox. Last one to you watch your words sysco has been flat since august is it buy, sell or hold . A hold. I think you have to wait to see the earnings you have to have a couple catalysts. I dont want to buy ght noriw. Okay. Final trades are next. A golf course is designed to be difficult. To challenge your thinking and test your execution. But great minds are driven to seek out the complex. They see what others dont, from an angle others wont take. They learn that embracing those challenges is what sets them apart. I am justin rose, and we are morgan stanley. Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu thanks for coming all this way to get me. Do you have everything . Ran out of that car so fast, its hard to tell announcer treating others like wed like to be treated has always been our guiding principle. All right. Its time for final trades jimmy, making a name for yourself dont pick letter fn. Intel theyre going to report on thursday you know how i feel about it its breaking out from a year and a halfdelta. Its down. A good chance to buy a high quality transportation josh brown . I bought uber when they threw it out in december, staying long this idea. Interesting stocks, what a gain today, 6 . Joey key side technology, 5 g play enterprise space last but not least, stephanie. Johnson johnson, 14 times earnings, great pipeline and great management thanks for watching the exchange beginsnow thank you. Yes, and welcome to the exchange. To two market gurus sounding the alarm on one market metric, well look at it the competition is growing and netflix started to feel the pressure what to expect in tonights earnings and if netflix should embrace the ad model luxury losing some of its luster and boeing needs more cash that is ahead. We begin with todays market with the numbers only off the lows of the session, we were down about 112 another the lows currently down 27 for the dow