Committee. Amy is the chief Investment Officer of the chevy chase trust. I want to show you where we stand right now. Another brutal jobless number to digest along with technical damage to key sectors. We have had a nice move off of the lows the dow is hanging onto 23,186 its a loss of 65 points good level for the s p to keep an eye on 2800 nasdaq the focal point of so much of our conversation is giving back 1 there it is on the right side of your screen. Put the last couple of days into perspective with what were seeing today you are one of a top Financial Adviser in this country. Whats the word . Well, i think any objective way of looking at this, the market is pricing in a lot of good news at large i think thats what you heard from david tepper. Its hard to find anybody that disagrees with that. I think in the very short run theres asymmetric risk to the downside market vs mos have moved a lot as we move to open in the recession ends and the recession will end in is an engineered recession to deal with the Health Care Issue and as we moved to open, while the data is still horrendous, the narrative is on the delta of the data meaning the data is getting positive we have rally onied on that narrative. That said, i think we have seen the lows what mitigates mull bapull back incredible stimulus. The cash on the sidelines and the news flow kind of turning positive ic we need to get out there a little bit i would ascribe us as interme interimmediate to longer term. I would also say, scott, very importantly, the market is acting rationally. When you look at this recession, we are looking to 21 because we know its going to end when you look to 21, earnings on technology are set to be up 15 . Earnings on energy are said to be down 70 . What are the best performers in the market right now the tech stocks. Heres what i want to talk a about the here and now talking about the worst risk reward hes seen in his career he referenced David Teppers comments to me on this program lets revisit what he said about where he sees the market now we should discuss on the other side what people should do about it its definitely, as of yesterday, the market is down from yesterday i would say that 99 was more overvalued, 992000 i would say its one of the most overvalued ive ever seen. Okay, steve in the context och what david tepper told us yesterday, does that mean its time for people watching our program right now to sell some of their winners . Ive been doing that. I didnt sell anything yesterday and didnt do really any pairing back today did some trading but once powell put the kabash on the market yesterday, things trade down my view has been we got to trade in range i was a little surprised of trading range got extended over the last week prior to powell again. What do you do when you think its top of the trading range. You take exposure off. Valuation is interesting thing i dont know how anybody can opine on the market being cheap when even the companies that are performing very well not from a stock standpoint but earnings ref revenue standpoint have pulled their guidance from the second half of this year i listened to about 15 companies. Companies ive picked were mostly 5g companies. They have all seen great demand. A lot of them have increased their guidance for the Second Quarter but none of them have guidance to the sec haond half the year its a plaque zoblack zone what i have come to grips with is sure we had a lot of stimulus going to get more too where is that going yeah, we are going to get more we need a lot more fiscal stimulus the stimulus we got from the government so far is replacing earnings that went to food, that went to rent, that went to utilities, that went to necessities. Theyre not going to drive the economy. What are you trimming right now . Im sorry to interrupt you i want to know right now what are you trimmin intrimming you said you were. What is it i trimmed key site. I trimm emed facebook i trimmed baba i trimmed visa the issue with the semiconductors is their proposals in d. C. , one that trump signed but he hasnt put into effect which says that basically, were not going to be able to sell chips to without a waiver from the again. Their sales went from 175 million to 10 million, just like that if that comes and hits the semis and we dont know if it will or not because we dont know whats going to happen. In its hitting the semis today. Dipping below the moving average. These are stocks that have run up a lot theres a lot of tech names. The tried and true marquee names that have run up a lot its caused people to step back and take a pause youve done that yourself and youre selling or trimming some of microsoft, which is name that almost nobody comes on this air and says its time to take some profits in microsoft its not usual for me to go against the grain. I think its the right call at this point its a 1. 4 trillion company its almost 6 of the s p. I think a lot of the people who are buying microsoft right now are not really buying microsoft. They prare putting money into ef that are being allocated to microsoft. The company is trading at ten times revenue. Its a Wonderful Company but to justify a ten times revenue valuation is difficult especially when youre that big. Its hard to grow that fast. We have incredible aid its done really well this year. Its gained a lot of share and cloud but now that its 50 of cloud, how much more share gains are in front of them it has a big legacy business that it still has to manage. Eps is going up but they are also buying back their shares. They are benefitting from lower taxes. Some of that Earnings Quality is lower than i would like. I think theyre just better opportunities elsewhere. Its such a good conversation to have. Is it time to triem some of these tech stocks sha have run up a lot or just take a pause and let everything ride . Even david tepper yesterday wasnt hating on the market. He said it was over valued but he acknowledged the power of the unprecedented level of stimulus thats been pumped in from fed and congress and the acknowledgement that more is on the way. Where does that leave our viewers and the investors out there who have watched this market do a v bounce and are now worried that woere about go in the opposite direction i agree with amy. I agree when positions and now were picking on microsoft but a microsoft, facebook or google, all the stocks that have really run and its specific to somebodys portfolio its specific to risk. I see nothing wrong at these valuations to peel them back. Were waiting a little bit more for the market to come back. We havent put any new capital to work in the last few weeks. Just incremental i think this is the time when you look at just as when you look at stocks versus bonds, you look at within your portfolio and youre looking at stocks you kind of go back after some of the other names that we want to buy that were not ready to buy now. What looks over valued to you to play off this tepper sound from yesterday what jumps out saying i think thats over valued and nied to sell some of it . I look at volatility and basically use that as a metric to help me decide, okay, i should be lightning up on stocks and getting more heavily into options which i realize are a leverage play but nonetheless have less risk to the down side if we correct. That feels more like panic and fear entering back in at the high end of the range. If it pulls back to where it was two days ago when i was with you, 26, im much more likely to be getting out of stocks at that level. I guess im a bit of a contrarian in that regard, too to your point, stocks like microsoft, they did a big deal with meta switch which gets them further into 5g territory. That plays out over time for that i get paid to wait. I can do it monthly. I can sell at the money call, which i did. I lightened up on a number of positions today on the stock side that i hope to reload with because of that move up to 39. I want to go down to eamon. He has breaking news regarding senator burrand that Insider Trading investigation under way. Mitch mcconnell announcing that senator burr will step down as the chairman of the Senate Intelligence committee that statement just moments ago saying senator burr contacted me this morning to inform me of his decision to step aside during the pendency of this investigation. We agreed it bouwould be in the best interest of the committee and will be effective at tendhed of day not stepping down as a senator mcconnell suggesting this is a temporary move you remember this follows the news that came out last night that the fbi had served a warrant on senator burr and had confiscated his cell phone in an effort to look for evidence regarding this allegation of possibly improper trading by senator burr related to briefings he received earlier in the year about the coronavirus he sold a significant amount of stock early in the year after getting that briefing. He said he did nothing wrong he followed public news accounts and thats what drove his decision to sell his account including news on cnbc well continue to follow that story. Lets get back to our conversation we mentioned what david tepper had to say those arent the only views out there. Bill miller wads on the network yesterday, too, saying he doesnt see stocks as being dramatically over valued and he was even sort of backing up his investments in troubled places like the airlines. We do think the market is a little toppy here. You have two completely different polar forces pulling on the market. You have the worst economic downturn since the Great Depression which we dont think will end any time soon i dont think anybody thinks its going to end any time soon versus this gargantuan liquidity push i think people i dont think people buying the market now really think this is is a cheap or protracted market even bill miller has said its fairly valued, not cheap i think youre getting this push into equities from the fed which is clearly wanting to squash volatility, wanting to raise asset prices the trying to bridge us until the economy comes back we dont know if they can do that or not. Every time you hear more about potentially more stimulus, the market reacts positively like it did today. Its this push pull between the Economic News and fed stimulus its really hard to make that call of whose going to win were relatively optimistic that you do get a treatment in the second half of the year. I think were most optimistic about regenerons cocktails in that regard. Its very hard to make that call honestly, nobody knows for sure. Lets bring in another voice in the conversation another legendary investor nelson pultz its been a while. Welcome back im great i trust you and your family are okay as well we are. Thank you very much for asking were just having a conversation about where we are. We had some very big and prominent voices over the last 24 hours discuss that issue. Stan saying worst risk reward of his entire career. Maybe the second most overrated over valued market that hes ever seen. Where are we what do you think . Let me tell you, first of all, ive lived through im really old 74, 81, 87, 08 and this one. Tlair all different and all the same you come out of them theres people that made very wiesz investments in that period of time. Ive been watching cnbc through this hole period and i have decided to say yes to you because i felt cnbc for a while, i thought it was misnamed as the medical channel because everybody with a wharton degree seemed like they had a medical degree theres so much doom and gloom this thing is not going to last forever. Theres still loads of value in the market i believe when we get a vaccine, and i do believe we are going to get a vaccine. I spoke last night to a friend of mine. Hes cfo of pfizer hes not a young suit. Hes an old timer. He didnt tell me anything he didnt tell everybody else i have no pfizer in my books so im not talking my book. Its one of a Dozen Companies but they say by july theyll have three or four substances and hopefully by september looking down for one its going to be somebody because ive never seen more cooperation between pharma and government more cooperation between government in industry more cooperation between treasury and government. We are going to come out of it its going to come out because our guys will come up with something. Made in the usa will mean something again. Im glad youve been watching our network so sbenintently we have heard from a lot of people in the medical community, and we speak to him on a nightly basis because what the doctors say about where this is all going plays big into the kind of decisions that you and our viewers may be making as to how theyre going to invest and what sort of time frame they see all of this lasting. How do you make a big investment today if you have no idea what the runway of this virus looks like something. Youre right. Png is really good company wendys has shown itself to be a good company it said wendys sales were down for the week just ended minus 2 think about that minus 2 how about the beef . You have enough burgers . It all comes out in sales, right, scott if they aint buying hamburgers, theyre buying chicken and breakfast and theyre buying all the frosties and whatever else you can think about. Theyre buying something if sales are down 2. 1 for the week and dining rooms are closed. This is going be great lesson and we better learn from it. The reason we won world war ii is we had great generals and great army and navy and air force guys i know one company that wasnt around then. Making portable radios one day and another making mine sweepers we cant even make face masks today. Thats going to change were not going to be crossing oceans to get vital parts for our economy, i believe, when this is over you think this will cause a dramatic chain in is su supply system absolutely. He said they were making jet engines but they were getting five important parts from india. Those five parts stopped shipping because india stopped shipping when all this is over, those five parts are not going back to india. Thats a very small example. We should finance a lot of American Manufacturing to come back here. To start making it here. Let me tell you something, its becoming harder and harder to run a business where your vital parts coming from asia and elsewhere. It really is hard. Its a lot easier when its made in a couple of states down the road and with automation and with our skill set, we should be able to do that. You know the minute somebody announcing they got a vaccine thats been approved, the shorts will be running to the hills nobody knows when that day will happen there are ramifications about what youre talking about and what you wrote to the white house about bringing supply chains here and bringing jobs back here. The cost of capital goes up. The cost of Human Capital goes up automation potentially costs real people their jobs. We exported them generously. We gave them to europe and asia. Now its time to bring those jobs back for two reasons. First of all, we have to have a supply chain thats reliable and for military purposes we have to have it. As i said, we cant cross oceans to get vital parts we have to be able to get it here by truck. Thats the issue that i think that we will have learned from this made in the usa will mean something again. I voted from everybody from goldwater to clinton i pick a guy, not a party. I rest of the country was like that i do believe that some of the policies that are been put in place by this administration forget about whether its republican or right wing thats why were having trouble getting face masks thats whats going to change out of this. Youre between automation and everything if we have to export a little labor, lets make it in mexico lets make it in guatemala where the truck can come right up the road to us youll be voting for President Trump for his reelection . Right now, yes, for sure. I am as i said, i voted both sides of the aisle. I dont see anything coming from the other side of the aisle. I dont see anything coming. If you got me, you got me. Im voting for trump i love his policies. His policies to me are the right policies for america this was not to be a Political Campaign here, but theyre the right policies for america today. You said you wrote a letter to the white house im wondering how long that was. Do you have anongoing dialogue with the president scott, lets talk the market. Okay i started talking about the market and you started talking about i decided to come on today happily to talk about how i see things going not about which way i vote, red or blue, at one particular time. Lets not make this into a political conversation you and i can have that offline. Nelson, youre the one that went there i was following up on your answer then i cut it short lets talk markets. Okay yeah. Are you putting new capital to work and yes where im not going to give you names but we see were price sensitive. Weve got a couple of candidates that we really like and when the stocks get to those levels, which they have been there for a while and then left and been there again, we buy. We like these companies. We think theyve been beating down a bit too much. We believe theres great value there. S youre adding to existing companies . Have you initiated new positions . Ive initiated new positions. You have. When you hear someone like warren buffet who is sitting on a pile of cash saying hes not putting anything to work now that he doesnt see anything that looks all of that attra attracti attractive, how do you react to that hes entightstled to his opi. Im entitled to ours im not buying the market. Im buying specific companies. In this case two companies i like very much two new positions that said it. Two new positions. When they get to the price ie like then we buy about positions that you already have and you mentioned you spoke to somebody with ge aviation, how do you think about ge getting through this crisis there still are considerable concerns about the company and its future i know you probably read the notes from stephen, the analyst who follows the company closer than anybody how do you think about ge getting through this crisis and making it to tohe other side . I think larry is one of the best industrial managers ive ever met ive been around a long time larry has been dealt an awful hand almost everything has fwogone te wrong way for him. Hes got a lot of cash hes got great business in aviation but nobody is flying. If we believe that people will never fly again then hes got a terrible business. If we believe they will fly again then they will start chalking up miles. I think larry is really smart manager. Keeps his cool doing things with ge that should have been done decades ago i have a lot of confidence in him. Clearly, if people are not flying again then the stock is over priced. If they start to fly again, then i think, you know, youre seeing a great deal bargain i dont know when they will fly again. I believe it will be a vaccine and sooner rather than later youre just taking one mans opinion. I know nothing about the medical and the science of this except i do believe in some of the companies that ive known for years and years to be very reliable and have stayed their projecting they will have three or four substances by the summer and hopefully pick one by the fall and make tens of millions of those in Fourth Quarter i believe thats what they believe. This issue of negative Interest Rates, do you think the fed should go there . I dont i really dont i dont think they should go there. They should get close to zero as possible negative Interest Rates mean something that i dont think is good for the economy i dont think its good for the world. I dont think its good for confidence part of what we need to do besides the vaccine, what we need to do is instill confidence again. I think negative rates dont do that nelson, i appreciate your time as always the headline is that you are optimistic and that you are buying stocks. I think thats our take away from our time together today you got it, scott thank you. Well talk to you again soon. Thats nelson peltz gang, you want to discuss this we have, stooeeve, have had more cautious and more negative views over the past 48 hours and then nelson comes on today and says hes betting big on america. Hes putting fresh money to work hes not only buying maybe adding to existing positions, hes initiating new ones too its difficult to say without knowing what those positions are that hes initiating thats a vacuum. There are some stocks that are cheap out there. Skyworks is trading at 15 times forward earnings for a company thats growing tremendously. I think theres still value in technology on the other side of the coin, i sold lululemon because the stock is trading new its all time high stocks that trade near their all time high its clearly sit back so dramatically for an extended period should be sold. Ill put adobe in that camp as well this is what mix markets theres always a buy and sell commentary i think this is an exaggeration of that because of how raw everybodys feelings are im not selling anything i continue to be well positioned companies that will do welcomin out of this but not the typical plays like a zoom which i think is massively over valued here. Im not selling any because i dont have any place to put the money and in a year or two years it will be cheap relative to where it is now. I dont want to pay taxes on it. Yeah, were going to continue to see this push, pull between the bulls and bears. Nobody knows when this will end. I think nelsons timetable is extremely aggressive and thats whats going to put everything back to normal the question is whats the permanent damage until then, i think it will be significant. Inquiring minds will want to know the names that nelson is initiating whether its another industrial or hes one of the best investors ever in the consumer packaged goods space. He knows that better than anybody. Is it Something Else there interesting. What do you make of his comments i agree with his comments im long term very positive. I agree that something will be found and i do agree with his premise that manufacturing globally will be looked at at all countries to see where well be the most efficient and Going Forward where the opportunities are. I would add to it at a lower level. There are companies out there. Thereare some real value plays there too. None of us are saying im not going to buy at any level. I think you get the right price of some of these stocks. Financials are down over 30 i think all of us will be getting back in there. What are you going to do with cisco today . Over the last couple of months ive been trimming. Ive been redeploying it into other Technology Stocks like qualcomm that i think have longer term. Its Great Company its trading at 14 times earnings i think the head winds to a lot of their products are much greater than some of the other opportunities that i see in tech i hate to say gave up on them too soon im wonder if chuck robins just pushed back on the doubters. I think some of their competitors have better products its a question of where i think i want to allocate some more capital. I dont dislike the company competely. Im using it for putting it into other investments. Okay. I sold my desientire cisco se this morning ive got better places to go for the areas that chuck robins identified they do have some interesting areas including the work from home space. Sky work which is much more focussed on the stay at home fema phenomenon well take a quick break. Congressman kevin brady will join us. Hes the ranking republican on the house ways and means committee. We hear from so many people that say main street needs more help. Is it coming xt cgrsm, theonesan ne the United States Postal Service is here to deliver your mail and packages and the peace of mind of knowing that essentials like prescriptions are on their way. Every day, all across america, we deliver for you. And we always will. So were working 24 7 toected maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. We welcome you back to a mixed picture right now. Lets get to sue with tlatest headlines for us hello here is what we know at this hour Government Health expert turned whistleblower rick bright says the United States lacks a coordinated National Response to the coronavirus. In testimony before a house committee, bright says the pandemic could get far worse though the likely a resurgence of covid19 this fall, it will be greatly compoundsed by the challenges of seasonal influenza without better planning, 2020 could be the darkest winter in modern history white house sources tell nbc news the cdc is expected to release detailed guidance for how and when states can open schools, stores and restaurants. Sochl t sochl the guidance comes from the recommends dagss that the white house shelved over concerns they were too restrictive. You can head to cnbc. Com back to you. The house of representatives could vote on the democrats 3 trillion relief bill tomorrow. Republicans rejecting it show. Nice to see you. I hope youre well be. Skocott, im good how about you . Good. Where do we stand on this . I mentioned mainstream needs help we hear it every day theres no patience for partisan politics in getting them their money. Where are we on this i agree i think the nearly 3 trillion congress has already allocated is making a big difference adjustments on the length, the period of that program i think that could help our businesses continue to rebuild i think the biggest threat right now is 3 trillion bill by the democrats, this isnt time for politics we have managed to Work Together on four different packages why cant we do it again i think the way the bill is structured, it is a recipe for a prolonged recession because it does virtually nothing to help focus on the 36 million americans who are temporarily jobless. We want to make sure they are not permanently jobless. Thats where our focus needs to be whats frustrating is it seems like its always politics. It takes two to tango. Its take longer than should be the case theres real people on real streets and real homes who are hurting. What can we get done and when can we get it done whats the Biggest Issue that you have with plan itself . Yes one, there hasnt been a tango in this fifth faephase. We havent had a single discussion democrats arent talking to the white house and not talking to Senate Republicans and not talking to House Republicans were eager to have those discussions. I think rather than go big, the speaker said lets go smart. Help businesses rebuild their work force and perhaps more importantly than anything, help businesses obtain the tests, the protective care and reconfigure their offices and workplaces so its healthy and safe for workers and customers. That can rebuild the confidence to allow us to reopen much sooner youre saying 3 trillion is too big. Even the Federal Reserve chairman, congressman, was on talking yesterday no. Im sorry no, scott ill let you finish. I apologize. You said rather that the speaker wants to go big. The Federal Reserve chairman was saying yesterday, look, we realize were spending a lot of money. More needs to be done on fiscal side yes, its going to be costly but there really is no other alternative. Im parafraphrasing what he sai but that was the crux of his comment. Is 3 trillion too much yeah. I dont think its the number here i dont think the fed chairman said, look, adopt a 3 trillion dollar bill thats focused on early voting, marijuana banking, Early Release of criminals all this stuff is included in this bill. I think his point was we should continue to find ways to help this economy rebound i really think its to focus on getting those jobless back into work and to do that, on main street, we need to focus on making sure the programs we put in place are working to their maximum. I dont think were there yet. I do think we need to redesign this unemployment benefit. It is chasing workers away from their work this bill will make it worse we also, i believe, we can help businesses reconfigure their workplaces get the testing and gear they need to reopen i think that is key to rebound this isnt about a number. A go big number. Its about being smart my view, the democrats bill is anything but the speaker bill is proposing a trillion dollar to the states. The president has gone after blue state and their governor. He tweeted why should the people and taxpayers be bailing out poorly run state like illinois and cities in all cases democrat run and managed when most of the other states are not looking for bail out help im open to discussing anything but just asking. Why should helping the states that are hurting be turn into a partisan issue well, it is. Thankfully congress has already allocated over 760 billion for our state and local governments and the communities. Thats more than we have sent to our Small Businesses the problem we have today many governors, unfortunately, are refusing to Pass Congress help to our smaller communities many simply havent received the dollars yet. The second challenge we have is with a few exceptions, my estimate is that most states and counties and cities havent and wont spend a third of what they have been sent on the covid related expenses before we talk about another trillion dollars, lets observe how the nearly trillion dollars we sent is working and how we can make it work better for our local communities. Thats not partisan. That makes sense surely, you know that as a result of this crisis, tax revenues, for example, are down. Along with a number of other Financial Issues that states are having that the snaenate majoriy leader that these states should file for bank rupts ruptbankrupy do you agree with him . I think his focus was on states that have failing pension systems. Not all states do. I think his point was taxpayers around the country shouldnt be bailing out failed Pension Plans that a certain state created i think we all can agree on that as for providing help, lets see how far the 760 billion we have sent goes and if it hits the mark and lets have that discussion the other thing is, again, if we want revenues up at the local level, lets get people back to work lets get businesses reopening safely as they are in texas. Thats going to drive the sales tax revenues that our state and local governments are rightly concerned about. Some states are reopening even though they dont meet the white houses own guidelines are you comfortable with that . I know texas best were starting our third week of the reopening. Governor abbott has done it with a strong focus on maximum pressure on the virus but what were seeing is our testing is at the highest level yet our cases are flattening out infection rates are down so are hospitalizations and our fatality rate per capita is six times better than the national average. I think the way Governor Abbott is doing it, very consciously, smart, focusing on the health care i can tell you theres a whole different attitude in our state because now we with see a light at the end of the tunnel not that we dont keep the pressure on the virus but people are starting to come back to work starting to see a few orders coming in. Thats healthy for the economy and for our families i want to talk about the recovery that you see. What kind of bounce back are you expecting that the that the pre has been pushing a narrative that were going to have a big bounce in the second half of the year larry kudlow has echoed that is that realistic, based on where we are today, congressman . Or is it going to take a little bit longer than people first thought . It could be heres the challenge, scott, as you know this is all so unprecedented and whether it is chairman powell or anyone else, we just simply dont know. I think if you ask the question, will our economy be better this summer in july, august, and september, my answer would be yes, it will be. How fast we rebound really depends upon in some cases, the policy Decisions Congress makes. And thats why i think we should focus on not just throwing money out of a helicopter, i think we ought to be focused on helping those jobless get back to work, so theyre not permanently out of work. And if we focus there, both parties, were bound to be stronger i certainly hope youre right. I know everybody does about a summer snapback. Maybe the virus subsides a bit and we can get things going. People need help, congressman. I mean, weve been advocates for it and ill continue to do that. Inhear from them every day and every night on our special report people need help and they need it now theyre just tired of this partisanship back and forth. I want to finish with a question, if i might, with the latest on senator burr he is under investigation, as you know, for Insider Trading. News today hell step down at the chair of the intel committee. Should he resign altogether . Reporter you know, i dont know i will tell you, scott, i havent followed that closely, other than the headlines we have been laser focused on this virus and the economy. I trust him to take the right actions during this period and so ill leave it at that, right now. I think most americans, certainly most texans arent worried about senator burr theyre really about how we get back to work and how we save our Small Business understood, but let me just follow up. Do you think its appropriate for any member of congress to own any individual stocks at all . And do you personally . Well, of course, i think its right for all americans to be able to invest in the stock market and build up that nest egg. I think thats Smart Congress has has a number of safeguards in place. I think thats what they are using to analyze senator burrs action i know when congress acted before, we saw, you know, not to point fingers, we saw a number of abuses with speaker pelosis coun accounts and her actions in this regard i think congress is putting the right safeguards, i think all americans ought to have an opportunity to build up their nest egg, however they do it congress has to do it with the higher level of accountability methods. Well, theres an obvious difference in owning mutual funds and etfs, as im only allowed to do, for obvious reasons around potential conflicts of interest. We dont want that why should it be any different for congress i mean, theres a difference between investing and owning you know, either individual stocks or funds. Sure. Congress law that we passed prohibits us from using Insider Information to make those trades were very highly scrutinized. Were a pretty ill just tell you, were a pretty basic family we have retirement, we have a bunch of mutual funds. We let our dollars ride through this market. Im pretty confident about where it will go in the longterm. But i think congress has the adequate safeguards. Lets continue to apply them i think thats the smart way to do it. Congressman, i wish you well. I hope you stay well well talk to you again soon thank you, scott. All right thats congressman kevin brady you take care be well well take a quick break and well have more halftime on the other side welcome back we go back to eamon javers now he has more breaking news for us hi, eamon. Reporter yes, scott, were learning that this Insider Trading investigation on capitol hill by the fbi is more wideranging than we knew even this morning senator Dianne Feinsteins office now confirming to nbc news that she has been contacted by the fbi, confirming that feinstein answered questions from the fbi about stock trades that her husband made and also that the senator provided documents to the fbi so thats at least two senators that we now of who have been contacted by the fbi of course, richard burr, the chairman of the intelligence committee, stepping down from that position today, but not stepping down as a senator, in the wake of the news last night, that the fbi obtained a search warrant for and confiscated his cell phone in an effort to determine whether or not h engaged in any inappropriate trading pupp now Dianne Feinsteins office confirming as well, theyve turned over some documents to the fbi. Interesting eamon, thank you for that new development there. Eamon javers reporting down from washington options bulls are seeing some unusual activity in shares of arsenal matal. Doc, tell us about it. Sure thing, scott ma matal is symbol mt and theyre buying the next week calls they expire a week from tomorrow theyre buying those calls, paying basically a very small amount to control this 8. 50 stock, if it gets to and from there. I bought those calls in that same amount of time, in about a week second trade, i love this one, because i had just gotten out of my micron stock and was looking again at micron. Today all of a sudden they came surging in, they bought 13,000 of the june 46 calls i bought those, ill be in those about a month. All right good stuff lets answer your questions now, because we have many steve weiss, we go to you first. Jay in new jersey, whats the concept of, quote, trading around a core position how do you calculate the size of that core position in percentage terms . Good question. Well, that depends what your tolerance is for volatility. Some can be 10 , some can be 5 . Trading around, youre better off using options, as john referenced before, selling calls when you think the stock gets ahead of itself and then selling the stock and just hitting tax bill there all right, jon najarian, paul wants to know, novavax is it time to sell well, exactly no, its not time to sell. This is one of the big winners, scott. Just got a lot of financing in, so they can push towards helping us for corona, he tried to say, and i like novavax a lot all right, sarat, whats you view on expedia . We sold it quite a while ago. Theres too much competition, especially against google. A quick final trades. Rod, what have you got for me today . I think im going to go with amlp in the prior two disruptions of energy market, 08 and 16, 12month forward returns were both above 80 for mlps. I think this disruption has created an attractive entry point for that part of the energy market. Okay, thank you amy . I like entelia. Its a small 1 billion marketbased gene cap editing company. We think theres a lot of run there. Jon najarian . Stitchfix steve weiss waiting for better opportunities. All right sarat . Cvs with a v. Thanks for watching, everybody. Kelly evans picks up our coverage now thank you, scott. And hi, everybody. Welcome to the exchange, as we have stocks fighting back into positive territory today, and at session highs, weve pared some big losses from earlier. The dow is up about twothirds of 1 . Were just below 24,500. Stapp is up about seven points by the way, for the week, the major averages are still pretty deep in the red. The s p and dow down around 4 , around 3. 5 for the nasdaq as for todays action, news that the white house says its open to the idea of yet another stimulus bill seems to be part of the reason traders are taking a step back from the ledge
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