The red. Does tech stage a rebound in october . You have huge positions in the faangs what do you think . What matters to me is sales growth they have it we have started on the digital journey. Not just in america. Everywhere, europe, asia, south america. Its a theme we have been tau g talking about for six months be p the idea it will go away after the pandemic is resoevveverreson ever that is, is ridiculous. Remembering apple or amazon over its journey had multiple 20, 30 corrections. You just got to take a deep breathe. It will come back. Did those stocks get too ahead of themselves . No. I think apple is unique. Every name has a different issue. Theres still a little bit of Consumer Electronics associated with apple this whole idea of stay at home stocks, st stocks we are going through a fundamental change in our economy. I want to own them now after the election, next year and the year after that were only in inning three look at nikes earnings. They are almost 33 direct to consumer they dont want the Retail Stores anymore 100 Gross Margins sell direct to a customer. Thats where were going thats what happenapple is goin do its the internet giants and technology and everybody else. I think thats where the play is now and for the next three years. Steph, youve been lightning up on amazon speaking of these big techs. You have to believe is the market is going to have a good month of october, those stocks will have to perform well. Its hard to imagine youll have an underperformance from faang, megacap tech and the market will brush that off and be fine what do you think as we head into a new month in a couple of days i think its more than just sales growth of these companies. For me to trim, its just a trim i still think you want a combination of secular growing stocks for all the reasons that kevin mentions and what i just said the Economic Data is going to get better were trying the balance better Economic Data. I think the market will have a hard time digesting this in the meantime, we probably slosh around we wait for earnings on october 12th thats a very big week for earnings well learn more i didnt hear you say anything about the virus what if the virus starts raging again. Positivity rate above 3 in new york youve got some of the nfl cases front and center i didnt hear you mention the virus at all we made a lot of progress on tests and vaccines we get more news there and can issue these vaccines then maybe its short lived or we have to have a partial shutdown of the economy. You cannot lose 25 billion a day by shutting the entire country down you cant do it. They wont do it if its smart to be putting money in these cyclical plays or you expect the virus numbers to continue to go up if you go back to what got you here in the first place. I think thats the point, scott. Kevin o leary just did my whole act. Im not mad because i agree with him. If you look at the biggest winners, most are winning prepandemic if you want to be there, youre going to have to tolerate it you cant have your cake and eat it too you cant say i want to be invested in the biggest Free Cash Flow generation the highest prospects for returning capital to shareholders you really have to choose the good news is it has not been a hard choice for a long time. As ive mentioned before, i absolutely abhor the phrase work from home. Its work from anywhere. Kevin is right its not changing. Its present and its the future and you want to be, if youre going to be overweight anything, i think you want to have a bias toward the kinds of companies that are either creating that future or setting themselves up to thrive. That doesnt just mean owning tech then go look at the other side of the ledger. Xle, you had this big two day pop for the oil stocks right back down. These stocks are being liquidated 52week lows every single day. The worst 20day stretch for exxon mobile in a century. Do you want to say that the cyclical trade just not going to work because of the environment were getting ourselves into if you have a time horizon where youre looking to scalp these pops then theres a Fertile Ground you want to sit in front of your monitor all day long and catch it be my guest. Sorry theres a very big difference between Energy Sector and industrials and discretionary. I never used either of those words. Im just saying energy is i did i was implying also that group of stocks. Industrials, materials some of these things that have pretty decent move absolutely. They have strong balance sheets. They have dividend yields that are very attractive. Good balance sheets. Good management teams. You have to be selective you have to be a stock picker to get them you cant own the whole broad base etf i wouldnt do that some of my best stocks this year are in the cyclicals and discretionary. Financials are a different story. They are much more challenged because of the yields curve. Volatility is likely to be elevated in october because youre heading towards a very uncertain election climate the virus numbers are om ticking higher were already seeing it in some key parts of the country you take virus numbers going up. You take volatility increasing throughout the month of october heading into the election and you tell our viewers to do what with that . Youve got to not only pick stocks but you have to be aware of what the daytoday circumstances are. By that i mean the following we got some volatility last week that was an opportunity if r me and others to buy High Quality Growth Companies albeit shoot the lights out i bought a walmart and microsoft at decent prices i still have some cash im hoping for some stocks that will dislocate because earnings are misperceived for whatever reason if they are a cyclical names that ive got my eyes on then ill be cyclicals. Here is the take away. Its stock specific and im looking for the volatility in the next few weeks coming out of earnings i dont want the play the overall market volatility. I have no idea who will win the election and if i did, i cant tell you how the market will respond. Im not going to play that game. As for the virus, i hear you youre right youre speaking factually. We dont know when a vaccine comes. We dont now how it will be uptaken. Those are things that could surprise either positively or negatively im not going to try to trade that kev youre sitting on 40 cash is that right . Yes i have to explain why. I reduce t our exposure to the commercial real estate and i mean significant it was over 30 of my book ive taken it down to cash because i dont like what im seeing and what im doing. We are slashing our exposure to commercial real estate just in my own private book, just to give you a sense of it and i know a will the of guys talk their book up about hotels and commercial real estate and strip malls, i can cut my Square Footage by q1 by 12 saving 3 Free Cash Flow in a portfolio that makes 15 thats material. Do i want to own the real estate that im getting out of . No thank you im another guy sitting on a ton of cash trying to put it to work and there are millions of me out there. Theres trillions of dollars trying to deploy it, trying to find way to distribute 6 . They say theres a lot of cash waiting to come into the market and where else are you going to put it other than the u. S. Stock market what gets you to put that to work i used to deploy that in fixed income market. I see no value there its the fed that did this to the market they made fixed income worthless to me as an investor its not my fault. I have to go with the flow and buy where theres cash flow. Thats in large cap names that are driving business and growing sales, nothing to do with fixed income the market is brutal its a death zone. A 30year paper. I dont hear you say youre rushing to get in the doors of stock market either. I am. Im expecting some buying opportunities to come along. We have got lots of events we have election stuff we have the virus news we have all kinds of stuff that could hit us the world is changed for them. I was 18 energy opinion im now 2 i have to redeploy im looking for opportunity and im just another guy looking for opportunity. Thats why this market is having a hard time going down theres a lot of voices out there today, stephanie, who are suggesting that you should buy into the weakness that we are still on a v shape recovery track. Ubs, positive developments the economic recovery and fed policy will be more important in determining valuations in the stock market than the outcome of november 3rd sort of sounds familiar. The data is improving was it helped by the stimulus . Of course. Thats not the point that compares to 7. 7 in april. Thats also really impressive. Its still down year over year but its impressive. The stimulus is working. Its going to be lead to better economic growth. Were not going to see 30 gdp growth forever were not. I still think youre going to see a recovery that means better profits. That means the market isnt as expensive on next years numbers as people think, in my view. Josh, what do you make of the commentary that i read out david, no matter who wins the election, fed is the Biggest Issue and thats still with you. If kevin wants to put money to work, i do believe residential real estate, specifically Single Family homes will out perform the stock Market Going Forward and even if you look at this particular draw down, the s p is 6. 5 off its high. We are at a level of Home Inventory at a three month supply thats the lowest several since they began tracking data in 1982 why . Two factors. Mortgage rates have a two handle which should have your jaw on the floor and number two we have a bull market in 30yearolds. The 26 to 29yearold cohert is the largest demographic cohert in america theyre having kids and buying houses and they cant wait to get into a home and now that you can work from anywhere to piggyback off that trend, why not sang l family home thats where stocks are working. Anything to do with renovation, remodelling. Some of the best trades this year were in industrials most of them were levered to the Housing Market you look at the itb. Its up 80 versus the industrials up 30 over the last six months thats where money is being put to work profitably these companies are sell at low multiples, ten times, 11 times earnings the potential to buy back and growth as far as the eye can see because of persistently mortgage rates. You still own invitation homes, for this reason i do. I own Stewart Information Services which is one of the largest title insurers and i think if you can find different plays on homes, home remodelling, i think you have a tail wind that supercedes anything going on with the pandemic and may have been strengthened by the peculiari peculiarities of the Real Estate Market thats what i would be looking in terms of industrials and dividends and plays to put cash to work. Its not tough to find winners theyre all working. You have three new ones that you have bought. You want to tell us about that i consider spacs to be an alternative private equity ive worked with most over the years. They are a more liquid version back in 2008 when i first, i sponsored a spac back then today when you look at the sponso sponsors, the groer group. I know them well everybody has a spac. Everybody has one now. They are very successful operators. They have a long track record of success. I find that very attractive. When you get these big draw down days, you dont see a big correction in the underlying because its waiting to find a deal its setting in cash im not telling everybody to buy these. Its complicated i want to give these guys money to put to work for me and because we have less and less public companies, what they are going to do is find something and take it public and ill be getting in hopefully in the ground floor thats why im doing it but im being very selective theres a lot of bad product out there versus good product. What i find so interesting about spacs as an investor who would be looking at these things, you are doing exactly what kevin said where as in a traditional investment or an ipo, youre sizing up the future prospects of the company that is going public at that very moment youre begt on the sponsor of the spac and hoping they find something good what do you think about this space for our viewing audience thank you just know what youre getting into you have no idea what company they will buy, in what industry. Obviously we talked about bill ackman but theres other guy as the viewing public, you have to know youre investing with a person doesnt mean its bad. Just means you got to do your homework like kevin is saying. Josh, how do you view this space . Why not just buy it after i listen to probably the greatest mutual fund manager still working today has trounsed the stock market for the last 30 years. This is a guy that generated 14 annual returns hes built that performance track record by buying the greatest companies that have ever existed over the last 30 years early from google to starbucks, amazon, go down the list his comment on spacs is i get it you bet the jock see why not wait to see what they invest in and decide on the merits of the company. Why do you have to be in early the robinhood people will give you fairs day pop. How many of them are going to stick around to do that postconsummating a deal you want to be selective theres 149 of these things right now. Only 50 of which have done a deal the rest are hunting they will buy it because if they return the money and dont do a deal, they forfeit founder shares and all kind of i vestment banking mamts there are huge conflicts of interest here. If its really a Great Company and a great opportunity, that little first day pop wont mean anything compared to the longer term i like the idea of being selective. I dont hate the whole asset class. I do think the mania around how many of these the market can really support will end up being a wash out for a lot of people im not sure about following the herd into these things up next, its the halftime Quarterly Report the biggest q3 winners and losers in our Investment Committee portfolio. What they plan on doing now. You can watch our listen to us live on the go on the cnbc app were back after this. Welcome back here is your cnbc news update. Amy Comey Barrett is on capitol hill speaking with senators who will decide whether she joins the highest court in the land. The Senate Judiciary committee will begin deliberations on october 12th Jpmorgan Chase is set to pay 920 million to resolve federal investigations into allegations of manipulating Global Markets you can go to cnbc. Com to read more about that record penalty officials reporting more than 7100 new covid19 infections the highest daily total of the pandemic officials confirm 71 new deaths. The most in nearly three months. German chancellor vowing to avoid a National Lockdown by quickly tracking new cases and shutting down local outbreaks of covid19 she expects infection rates to rise as winter approaches. You are up to date thats the news update back to you. Appreciate that very much. With the s p looking to close out out, were looking at our thirty quarterly winners and losers we pull the names that our traders own throughout the quarter. They had to own it for the entire quarter we broke out that you are best and worst performers to get an update on where they stand josh, i begin with you zoom video huge winner. Up 89 in the quarter. We start with that you going to continue to keep it yes great a man of many words. Nvidia up 38 . I knew we had a lot of tickers to get to. Im sorry. We do this is one of those that is on a lot of peoples minds in terms of the broader thesis about why you own this zoom, i took my original cost out. The stock up, i dont know, like hundreds and hundreds of percent. The way i see it is a im playing with the houses money i expect massive volatility here given the fact this company has become google for video, i cant not own it how about these stocks . I know youll keep them. How do you view them Going Forward relative to how well they did this summer, on the show. I took about 20 off of my position both of these i think my original cost is 1,000 percent ago. As you have a stock for that long that grows this large way beyond anything i expected, it takes over your whole portfolio. You have to do maintenance i am hoelding them i see them as being two of the primary architects of our future way of life. To try to understand it as best as i can ive done pretty well so far maybe the biggest question i have about your laggards given laggard relative term. Invitation homes we talked about. Still up in the quarter and so is jpmorgan. Schlumberger is down 14 you mentioned today and last week about Energy Stocks getting in your word, liquidated why arent you liquidating this is like one of my worst trades in ever its an execution failure. I had no exit strategy i had no stop loss no stop limit, nothing it just got worse. I guess i got distracted the beautiful thing about having outsized winners and having a Market Recovery in general is that ones that are losers, they shrink in importance its been so murdered its almost ir relevant to me thats been big insider buying including from the ceo the other thing, i think they did something that is long over due. Whatever they finally did it they have exited shale they have abandoned the shale business which i guess is uneconomic and a huge drain on cash you could say this is my Lottery Ticket on oil making a come back its a disaster. Now i feel emotionally anchored to this thing turning itself around i hope it does in the meantime, seems to go down 4 a day. I dont know what to tell you. Stephanie, of u. P. S. , which is up 52 , twitter which is up 49 and deere which is up 40 in the quarter, which are you most optimistic about Going Forward thats a hard question. I want to highlight why ive been saying you should have a barbell because these three exactly are that deere is the most cyclical and twitter is a turn around story they are seeing this huge momentum in their Monetizable Daus they were only up 5 last quarter. I like twitter a lot you havent seen business to business come back yet if we get a successful reopen, that piece helps the margin. I still like u. P. S. An awful lot. Its hard. Its like asking which is my favorite cat or my favorite dog. I like them all. In terms of laggards, chevron is down 20 . We have spoken a lot about the oil patch. Any plans to get rid of any of those and how do you view these . Chevron is the only energy stock that i own i do have very strong confidence in the 7 dividend yield they cut cap extwiex twice i like what they are doing with their product and gaining market share. I still like fortinet. Thats a Technology Name i would add to if they pull back i think abbvie is down on the quartzer quarter you get a 5 dividend yield. Thats okay too. Im not goichg ng to get rid of them good stuff. Jim, well get to you later in the week sounds good on a big cnbc event. Delivering alpha is back for its tenth year tomorrow. Go to delivering alpha. Com we are back in two minutes one day well look back and remember the moment that things, for one strange time in our lives, got very quiet. Some lost work and invented new ways to get by. Others were busier than ever, and found strength they never knew they had. We sheltered with the people who matter most, sometimes finding how far apart wed drifted. We worried over loved ones, over money, over our planet. And over takeout. And we found a voice one the noise out there had kept quiet. When the world starts spinning again, lets remember this time where none of us felt secure, and fight for a future where everyone can. Because when the world seems like its standing still. Thats the perfect time for us to change it. Welcome back were counting down to delivering alpha leez l leslie is here with a closer look less than 24 hours to ago, with look a little different given the event will be all digital. Nothing was sacrificed in terms of the powerful voices in business and politics that will be speaking at the event it will be bookendsed with treasury secretary who will speak with our becky quick and senator Elizabeth Warren who will be interviewed by jim kramer your sit down is the most anticipated sessions at tomorrows event there are other speakers who we rarely hear from as well and looking forward to interviewing josh harris who is the cofunder of apollo. Thats been one of the most active deal makers this year there are others whose Style Centers around Value Investing jeff oven recently left to start inclusive Capital Partners will be discussing how to measure Impact Investing with a proactive esg agenda scott. Looking forward to it good stuff thanks very much up next, the best quality value stocks to buy in this market right now lue m separating value fro vatraps. Well do that in two minutes welcome back interesting note out from bank of america saying value has more room to run. They are highlighting what they call 29 quality picks. Rahel has gone through those they point out macro indicators that suggest economic recovery is under way. They note that value has out performed coming out of 14 of the last 14 recessions for three months and that quality does become even more important than periods of volatility which is expected until november. Among the 29 stocks they like, well put these up on the screen some of them, at t and alaska air. Despite having the best liquidity runway, alaska air still trades at a discount compared to some of its peers. They suggest investors wait out chevron and exxon for a bit longer now to some stocks that they do believer are value traps restaurant brands, some of its brands growing profits slower than its peers. Watch those names, skots thank you jim, youre my man on this because you on the quality value names, Alaska Airlines which is a tough space right now. You still sticking with that yeah. I am what im gratified by the report because it highlights what the positive there is. They have no net debt. Yesterday American Airlines rallied like 5 because they borrowed another 5. 5 in the government thats crazy if youre an equity holder, youre getting further and further from participating in their profits. Im not going to call them a Lottery Ticket but they have a catalyst either you get vaccine or a stimulus bill or in 2021 you get an infrastructure bill there are positives you can point to you just cant say when. Let me ask you the question this way, then if you didnt own any of these today, would you recommend to our viewers they that buy these today if they need the catalyst of a vaccine to work yes. Of to have some of those Growth Stocks you know i own apple and microsoft and qualcomm those will continue to grow nicely while im waiting for the catalyst to appear im not saying i know when a vaccine will come. I dont know if well get another stimulus bill but i do think the economy will be growing in 2021 and these are the companies i want to own. As we go to break, a look at some of ocstks hitting all time highs. Were back after this quick break. The different positions ive had taught me how to be there for others. I started out as a cashier. I mean, the skys the limit with walmart. Its all up to you. And look, it feels like im just wasting time. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from Td Ameritrade. Visit tdameritrade. Com learn were back and its time for the futures outlook. Silver is rallying and traders are looking at key levels that could set up a comeback. Jeff kilburg and jim iuorio joins us now both of you guys are headlining in terms of the dollar at where silver could go, yeah . Absolutely, scott weve seen the u. S. Dollar go up 3. 5 in reverse relationship, were seeing Precious Metals heavily weighed upon, so we saw silver move back. It certainly lets the dollar take a little breather at the velocity, but also look at global were seeing spot demand increase for silver. I think that was digested after the fcc came out with their guidance at the end of the day, we look for silver to move higher. Jim iuorio, the dollar is important, obviously, but you need demand. I like i like to look at price more than anything. I know ive been harping about this 94 level it bounced off the 100day moving average however, if the dollar bounces off 94 and starts heading higher, im not going to touch it, because silver and the dollar cant rally together, in my opinion good stuff, guys. Thank you, jeff kilburg, jim iuorio talk to you again soon take a quick break well come back and do final trades now thats what my dad does. Good job, michael ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our financial futures. Final trade time farmer jim, youre up first. Hey, scott. Yesterday cleveland cliffs, which i think you know has been a favorite of mine, announced its buying the assets of mintol it actually makes them the lowest Greenhouse Gas producer in terms of both the Iron Ore Mining and steel producing in the country. We know we need steel. These guys are rapidly emitting Greenhouse Gas emission by doing so i think its a Great Company stephanie link . Estee lauder. I think you should buy it today. They have strong brands, good products theyre taking share and china is back to precovid levels, so i like that a lot. They took it off sell china has been very strong i heard cramer talking about that this morning, steph, as well symbiotic as usual mr. Wonderful. Its facebook, and ill tell you why. 60 of the economy, Small Business in america. Im looking at ifmy q4 budget they have regional and geolocked advertising josh brown . Phg nice offices as well. Thanks, guys the the exchange starts now. Thanks, scott welcome to the exchange. Im kelly evans. Heres whats ahead. A small step forward in stimulus talks with a new proposed package in meetings today. The market isnt sold yet. Well get the greatest details the value of nothing the Asset Investors may be overlooking when buying stocks and it could give a bigtime boost to returns the tiffany battle continues, group watch from disney and microsoft thinks you miss you