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tv   Fast Money Halftime Report  CNBC  February 18, 2016 12:00pm-1:01pm EST

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definitely doing. amazon flex the name is out there. started in seattle. now they're expanding it and if you were a delivery company like a ups or fed ex it has to concern you. >> that's right. >> markets almost exactly flat. we'll see if that holds up after a nice three days. let's get back to headquaters and the half. >> all right guys. welcome to the halftime show. thanks so much. let's meet your starting line-up for today. joe is here along with steve and john and pete. our game plan looks like this. he's killing it. the hedge fund manager already up 16% this year. he is with us live today to talk markets. his strategy and whether the bull is still alive. apple versus the fbi. the very latest in the high profile battle over privacy and personal security. amon joins us from d.c. with the legal angle. we begin with the markets though. stocks coming off the best run since the summer. trying to go for four days in a
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row. that's how the picture looks now. crude oil is back in positive territory. the dow is flat and trying to come back as crude oil has moved into the green but it's a mostly flat line story at noon eastern time. so steve, give us your view on where we have been the last three days. you had this great run. going for the fourth. can it continue? does it have legs? is it something to believe in? and if not, why? >> i think we got way oversold. i'd be hard pressed to think of one investor that does this for a living that wasn't at maximum bearishness and as i point out in december and again january, hedgefunds have taken their nets and their gross down to levels that you hadn't seen in years. so set up is the question of who had the guts to do it. so talking to a couple on the side of the investment banks, massive short covering the last two days in particular and yesterday more so than the day before. now i think we were very oversold. i don't think we're going into
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overpauthme overbought. at this level it's where we're going to hang out. the market is overvalued. we haven't cured the problem. >> you usually think it's overvalued. >> on an average pe basis which is about 14.3 times. we're trading in about 15 times or so on 16 earnings. and what's the catalyst to bring it to overvaluation. we get more bad news. do you disagree? >> a week ago the s&p was 18.13. we're getting a little bit of a pull back this morning. i'm not ready to say that the rally we had over the last couple of days is going to end. >> this is not -- >> 1945, 1950. >> it's virtually flat. >> 1945, 1950. that's where i think we're going in the near term. i think we're going to get there. i think oil right now the momentum is toward the upside. not concerned at all about what i'm seeing. >> what do you do? >> well, you've seen an easing
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and some of the fear in particular in that energy complex that joe talks about but it's still just crazy high. it's still up 50% year to date. yeah down from 80 to 70 but this is a very elevated level but there's nothing decided yet. we have four countries that are going to freeze production but there's an awful lot of moving parts out there that could change this and send us. and causes energy to pop substantially. >> we had three straight 1% moves for the dow. the first time since october of '11. so we'll see how this shakes out today. materials the best performing sector of the month. how do you see the landscape here? >> we also have to keep an eye on liquidity. we talk about volatility all the
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time. what about liquidity? look at the ten year. look at the range just over the last four or five trading sessions in that. from the low 150s to the 180s and then you look at the market itself. these moves each and every day, i don't know. i know yesterday you're going back and forth with josh and you were talking about the fang stocks and josh wasn't so convinced that was a very healthy market. what's not convincing me about the health of the market is is this a dash for trash right now judge? what's been leading us the last three or four trading sessions. it's energy. it's materials. it was bio tech. financials have lagged. >> wouldn't you rather see that than utilities? telco? >> no doubt about it. >> leading us day-to-day after day. >> i would also like to see a little bit more of a broad based rally rather than monsterous moves in energy. monsterous moves. look at the move. a lot of guys are giving me flak
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because i still hold the puts in that. a i have been able to rachet down the entire way as the stock has gone lower but you hold on to something like that because this move went from $4 to $8 almost overnight. those are the kind of moves we're talking about right now and is that sustainable? is that a dash for trash? is that a little short covering? what is it? that's some of the concerns. >> let's bring in another voice to the competition. somebody crushing the market already this year. many hedge funds obviously having a tough ride. roy is up 16%. he is the founder and manages 850 million dollars. it's good to have you here. thanks for coming in. congrats on the success. a lot of it is due to a computer program. tell me exactly how your strategy works. >> so we have computer models that analyze the data coming in literally tick by tick. the volume and price of every major market and most people
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just stopped. those computers are making decisions as to what the probability is that a particular market is going to rise or fall over periods from hours to the next few days. very short-term. >> so there's no physical human trading involved here? you have simply built computer models that are trying to predict the direction of the stock market and then the models were actually executing all of the trades. there's no human aspect to it. >> that's right. the stock market. in fact, all markets. the way we think about it is a lot like the way an aircraft works. it flies on auto pilot. you need awe pilot watching over things. >> you say you're not a high frequency trader. what's the difference in what you do and what they do. >> it uses a duration that's typically mila seconds to seconds. they're in and out almost insta instant. they're averaging a day and a half. >> you think the volatility that we have seen is some say it's
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due to high frequency traders and it's the computers that are running the show and how do you respond to that sort of, let's call it criticism. it's a return to normal levels of volatility. if you look back at the history of the markets 1 to 2% is exactly what you see through history. however from 2012 to recently because of what they're doing with qe they dressed the level of stock market volatility. as they stopped and we see a tightening volatility comes back. markets are moving 2% a day. >> one of the things that's really impressive about what you have done is the taking of the human out of the equation because just as steve opened the show with, how many of us had
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the guts to step in at the bottom but the discipline probably told you we are severely oversold. here's what i should be buying but you just waited and couldn't pull the trigger. that happened to me on a number of trades that i saw that were as it turned out great trades that i missed. got a couple. disney, solar city, linked in. but i missed ten times that amount because of the emotion that takes over when you're down there and that's one of the things that with your firm you take out of the equation. >> i think one of the mistakes that was easy to make when you invest is to overuse recent information. what the market did yesterday. what the market did the last few days or what the most noticeable thing that you remember. so if we take a current decline it looks a lot like the last decline in august through september or october. and what happened last time is we have this double bottom and it came rocketing back up. it's very easy to say the same thing is going to happen again but our models are different.
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this last bounce we had, the three huge days is a bear market rally and we're fully invested short now in equities. >> so investment strategies including managed futures, they cycle. sometimes they're in vogue. sometimes they're out of style. okay? i have been noticing over the last year or two years they have been very much in style. so what is it about it other than a trending down market where the individual stocks are much lower in correlations breaking down. is it that that's making this a great environment? >> it's really simple. just the raw level of volatility. how much markets are moving. manage futures global macros, cta strategies are all generally synonyms for each other. they're making long-term trades that last weeks to months. if the market is moving a lot in that duration. stocks moving 10 or 20% and you see crude oil dropping 50% that's good for the longer term
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strategy. what we do are making much shorter duration trades. so the back and forth can provide huge opportunities. >> one question with that. so markets going down. you've got your model. you told me it's primarily price and volume. which is more to it than that. >> how much of what you're seeing is so much more volume on the down side than the upside driving what you do? >> we don actually look at the relative volumes of selling and buying. that turns out not to be so useful. it turns out that for us it's the path that the price has taken. it's not what level the price is or did it go down and up to get to the same price? it's how we view the world. it's not where we are. it's how we are relative to where we were that gives us our state of mind. >> can i ask you? on this issue of sort of lack of
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trust if you will that some investors have for either these types of strategies or others that are more directly linked to high frequency trading somebody on twitter says you're not reacting to the market so much. you're creating the market. algorithms like yours and others are creating the direction in which stocks are going. faster than humans can react. you're doing more trades in a shorter amount of time than any normal person can obviously execute. is that a fair criticism? >> i don't think so. i think that there is certainly a belief that high frequency trading is somehow creating market volatility. october 19th, 1987 there were no high frequency traders and it was blamed on something else. markets will be volatile sometimes. that's part of investment and we don't think that there's a relationship between what we do or even what high frequency traders do and what we're seeing
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in the markets. >> what kind of data would your algorithms be analyzing. in trying to figure out where they're going from this. the last three days have been. and this was overbought. everyone is convinced. it looks like last time. it looks like right back in 1950 or 2000 in no time. and in fact our models are going to say wait main. this is a time that it would rise. >> it's what the model is telling you to do. >> i'm conflicted but we follow the systems. that's the point. a quantitative strategy needs to take the emotion out of it and that's the value of using a system and not your emotions. >> are you as bearish as your model suggested you would be. >> it's better than i am.
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>> you must have a real view of where the market is. >> i do. i think it's a little high today but tomorrow i may be very bullish. it's only a day or two at the time. >> obviously the high correlation between the price of oil and equities is important to you. how long in terms of your historical data does it suggest that this can continue? >> what we find in terms of longer terms is they generally go a lot further than people believe they can. so right now our models are selling rallies in oil because they said okay this trend is not over yet. they can be convinced otherwise but i think we all had this experience of saying well this is the bottom. if it's cheap at 38. it's cheap at 35 and then it's 26. well, the best bet right now is that it goes back down. >> we'll make that the last word. thanks. thanks for coming in. >> thank you. >> coming up, the world's largest retailer hits a wall. walmart drops today after reporting weak numbers. find out if anybody on the desk
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is bargain hunting plus one analyst says there's a transformation under way at ibm that investors are just missing. that stock is on the move on the call. we're going to debate it and we keep an eye on oil as well. there it is today up nearly 1%. almost $31. can the rally hold? you're watching cnbc first in business worldwide. i've been called a control freak... i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?...
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all right.
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walmart is the -- we're back. hi. hey, seema. >> hey, scott, how are you doing? >> we're talking walmart right? >> we are. one of the worst performing stocks. shares falling nearly 4%. the company reporting 4th quarter results that beat but walmart did cut it's out look and report disappointing sales. the lower forecast is being blamed on recent store closures and the impact of the stronger dollar on its international stores. keep in mind despite today's losses walmart is still one of the best performing dow stocks this year. up 3% in 2016. keep in mind target fell as much as 1% earlier as we look atwal mart shares down about 4%. >> thank you, seema. second best dow performer year to date. >> it's an example of a 2015 laggard which was $86 at this
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time last year. it's up 3% year to date. and to pete's point you have to have for an extension of the s&p rally more than just the laggards doing well. as it relates to walmart there's no surprise that a currency head wind exists for walmart and you have to ask yourself does that remove itself any time soon? i don't know that it does. i don't imagine that you'll get very hurt here. i can't see it going strongly below 55. it's trading 62. but the upside is limited too. >> it's not the par rom meter it once was. there's competition out there and it has bb working and hitting market share overtime and all the discounters as well out there at the various dollar stores. it's become a high, high area of everybody is going after those
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dollars. they're saving on gas. they're going a little bit of everywhere and that's the problem in term of guidance. >> you would agree with that, right? >> absolutely. best case it's a gdp minus stocks in term of growth and same store sales. it's not only the comp physician costco. it's going more toward services and experiences than going to buying goods. it's going to be up or down a little bit. not a big deal. and sales guidance. >> the currency head winds. >> currency head winds. same store sales because of gasoline a little bit lighter but what did they do for you? they beat by 3 cents. it's going to be flat. that's why people are hitting it here but they gave you a 2% bump in the dividend or whatever. it's 50 cents now. i don't see a reason to go running out of this stock.
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it's $63 a share or whatever it is right now. >> let's do a couple of calls of the day and one of them is getting a lot of chatter today. ibm upgraded to overweight. the transformation she says is not priced in. >> she moved from the price target from 135 to 140. i don't know that there's a lot of conviction behind this call. she's talking about a lot of the old businesses. >> i'm going to stop here one second. you have to have some level of conviction period to even make this call. >> sure. >> don't you? >> to make this call at these levels some conviction but do you feel really comfortable the fact that she moved that price target from 135 to 140 based on where the stock is now? it doesn't give you a whole lot of upside scott. she is saying the transformation is in place. the data, cloud, moving in that
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direction. there's something to hang your hat on but i think that the problem is they're still lagging behind microsoft and the gains that they're making and aws and some of the other names in the space in terms of cloud. that's bait of a problem. it's going to be a head wind. i still think for ibm going forward. >> to their defense and it's not whether i'm going to come to ibm's offense. i agree with everything pete just said but the acquisition which is the biggest in three years in the hemalth analytics space it speaks to what they're trying to do in the industry. is it enough to move the needle, not necessarily. but if you look out 2017, 2018 as it relates, yes it could be something that accelerates revenue for them and gives you a reason on a longer term basis like warren buffet to buy it. >> better start averaging down
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now. >> when she was neutral on this one and since february 2013 she has been out of this for clients and the stock was $200 bucks back then. slammed down to what the slow low is here. after ternings. it's back to what it was after the earnings and the earnings were flat. this is like the walmart situation as far as is she saying, yeah? a lot of growth coming here? i don't think so but i thits a hold. i don't think it's a screaming by after the $7 run today. >> amazon upgraded to buy. >> what do you think of this call? >> you're holding it through all of this and if you think you missed it you're thinking about getting in but you're not sure because you're thinking that it may go lower because valuation is still so stretched so to me amazon is the same store regardless of whether it's 900
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or 600 or 300. they revealed what they were doing. here's what it is. i happened to have a bias toward amazon here. it doesn't fit value screens. and that's what they want to do. if you can do it, you do it. >> you have the two biggest animals in the herd fighting here. amazon has the delivery they're making in roads in. the home delivery of groceries and all the rest. i see the packages coming in all the time. as far as google getting into this business with google fresh in a big way i just think it's going to be a blood sport. >> i think this thing is -- i think it's based upon this drop. you look at the six points that were put out there on why the by. the points is its down 25% and this is the most reasonable it's
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been. the most reasonable but still unreasonable to the point. it's so hard to get your arms around this stock, scott. when you look at the valuation and the pe. even on this 25% drop. >> you need more than what they gave you in this call. >> the greatest thing that stood out to me was this 25% drop gives you taunt to buy it at these levels. >> you need an accommodating market backdrop to own the stock. >> i ended it last week to the portfolio. up 9% over the last five days. it's nothing more than intuition. it's what pete and steven are talking about. stabilization in the overall market. it's a strong name from 2015. all the theoretical thousand word type of stuff doesn't matter. it's intuition. it's a good one. i would stay with it. >> coming up we'll give a check on the oil trade plus twitter gets a vote of confidence of
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sorts. should you follow their lead and it's apple versus the government. what happens now that tim cook has said no in the name of privacy. a mon amon has the latest there. you can fly across welcome town in minutes16, or across the globe in under an hour. whole communities are living on mars and solar satellites provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes
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we're watching crude oil today. so is jackie with the futures now traders. >> crude oil is higher on the session although we did pair some of the gains after that inventory report. i'm going to start with you. million dollar question here. are we going to hold over $30 barrel? >> i think we will hold over $30 barrel. the story has changed too and part of that story and we're tired of hearing about it is the dollar. i don't think the market feels we're going to tighten as strong as before. today the fact that we have a plus sign on us despite the inventories and the rumblings from saudis saying it was fine yesterday but we're not going to cut production at all and we still have a plus sign is a good sign. i'd like to see it settle over 34 though. >> you've been a bull for awhile. still bullish?
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>> i am still bullish. this has been a very slippery volatile trade. we're seeing some closes above 30. it's a little sticky. so technically be very careful and into the april contract tomorrow by the $36 in the april. >> for more futures now tune into the live show at 1:00 p.m. eastern. futures now.cnbc.com. we're talking to david stockman. he is taking a bearish position in this market. the worst isn't over yet. >> coming up, the inside story at twitter and yahoo!. what executives are doing at both of the companies that could move the stocks higher. what is likely to happen next in the battle between apple and the fbi? those details straight ahead. opportunities aren't always obvious.
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man 2: should i be worried? man 1: you are the ceo. it's not just security. it's defense. bae systems. i'm sharon epperson and here's your news update for this hour. pope francis and donald trump exchanging words regarding immigration. the pope suggesting trump is not
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christian for calling for a border wall between the u.s. and mexico. trump responded by saying a religious leader questioning a person's faith is disgraceful. >> governor scott walker signed legislation that would cut millions of taxpayer dollars for planned parenthood in wisconsin. he signed two bills at a clinic that councils abortion alternatives. nikki haley joining marco rubio in greenville after endorsing him for president yesterday. she introduced him to a group of supporters this morning hoping to shine the light on a new, younger republican generation. >> an electric shock hazard prompted apple to recall about 895,000 ac adapters and plug adapters sold in the u.s. and canada. apple received a dozen of incidents overseas. >> thanks so much. well a new report out today.
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revealing more potential trouble at yahoo!. key user engagement dropped significantly over the last year and what's more the well-known analyst writing today that potential buyers of yahoo!'s core business are growing frustrated with the company's board. >> bob, the board is telling as many as 20 buyers to talk to the hand. what's going on. >> on the information there, we looked at them that should have corroborated that. that leads you to the core sales process and you need to have this process done thoroughly but speedily. as the court starts to deteriorate as hirings and firings take place. you're having a lot more pressure on the court here so we think it's important to have a fast process here. the potential price goes potentially lower and lower as this drags on.
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when you say you have to have a fast process you talk about you being yahoo! better have a faster process or who knows at what prices they're going to go for. >> exactly right. so we're hearing reports out there that the people that have expressed indications of interests aren't getting speedy relies. so it's raising the question of how speedy the company is taking it. what they're doing is setting up the process so that opening it up they get what they need to the potential parties and get a speedy resolution which we think can happen. >> what heeds you to believe there's as many as you write in your note today? >> we had a lot of conversations around the industry. the number could be higher than that believe it or not but we try to focus on qualified buyers. one that can afford to pay the most. the two leading candidates are verizon, at&t and they publicly have spoken about this. we think there's more than that
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and if the strategics aren't willing to pay an appropriate price, the financial players will keep them honest. >> you think though that publicly traded companies are the most likely suitors here rather than a take private deal. >> and the reason why is a company like verizon already owning aol they have so many cost overlaps that they can really balloon when they eliminate the redundant costs so hen it would be a higher price. >> let's switch to twitter before i let you run. interesting news of insider buying. the cfo buying some shares. the chairman as well. what to make of it? >> it's a step in the right direction. 2 million over kordestani and it's a step in the right direction but one of the questions we asked is with your stock down 70% plus here at these levels, where are share buy backs.
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why aren't we seeing a share buy back or why aren't we seeing executives buy at these levels? we like the fact that both of them are buying but it's a step in the right direction. >> let me take you back to yahoo!. i wanted to ask you something that i forgot to. the likelihood of a proxy fight at yahoo!. you starboard in there and they could do that. does it happen? >> the best situation you don't get to that point. however what we're telling clients is its highly likely. the window opens on february 25th. our guess is they'll wait toward the end of the window to put that slate out there and hopefully you can come to a resolution with the board and with management before then but if not you'll see a fresh slate put out there and they'll enact change. it's inevitable the core gets sold. it's a matter to who and what price. >> appreciate your time as always. >> appreciate it. >> bob joining us again today. >> first of all, let's do twitter because that's easy.
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that's position defense. they didn't want to come out and buy it. analysts were asking 250 grand where he works and spends all of his time. that looks like weekend tips for you, scott. in terms for the billionaire buying a couple of minute, also means nothing. if you then move over to yahoo! and then this is just such an atrophying story. to me what's going to be left after a strategic buyer comes in that could pay it. there's room if the portfolio which would be a small position if you put it in there and if it works out great. but sounds like the board has got to go. >> i'm wondering is it possible to have a debate between which -- if you had to buy one of the stocks today which one would it be? is everybody in agreement on this? i don't know if we are. >> i'd lean toward twitter. it's in my halftime portfolio. i took it off yesterday scott. but i love the fact that i like seeing some insider buying. why not? we saw what happened with steve
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wynn and he made three monsterous trades in there where he bought almost 2 million shares but this is nothing close to that. i understand what you're saying. much smaller but at least they're doing something and after that earnings call he has a $20 price target on this but he came away much more positively than you would have expected given the fact that it stayed basically flat. -other things in the pipeline. >> so pete's twitter. >> i'm twitter absolutely. >> i think yahoo! is here or lower on that take out. so i think it's a take under. if you're asking me if i put the same amount of dollars into each you make money into yahoo! here. >> i think there's still too much optimism on yahoo! and twitter the risk reward is very, very attractive. not much down side.
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>> you're asking me who is better? the 76ers or the lakers? >> twitter or yahoo!. one trade right now on one of these beaten, broken down things. what is it? >> puts with it? >> give me an answer. >> no. >> yahoo! >> you just did that. >> my enthusiasm. not a huge upside. >> how to do the spin tax efficiently. >> the same thing if i figure out how to be 6'7" and join the nba. >> the judge gave you an order. just kidding. speaking of judges orders. let's turn now to the tech controversy that has everybody talking. apple taking on the fbi now that tim cook refused to hack the iphone of one of the san bernardino shooters. so what happens next. we tried to look forward here
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and we need to see where in the legal realm of things this goes. and whether it could factor into this entire conversation. it's an interesting question. if you get the feel of it it feels like both sides are dug in for a long side. so they want to fight this on this particular case because of the fact and circumstances here. apple's tim cook putting out that personal letter and where this goes is apple now has four days left to respond to this court order. they don't like what they hear. they can appeal that to the ninth circuit court of appeals. that might be more favorable to apple than an east coast court would be. it would go to a three judge panel first. and if that is appealed all the way up that high, after that the next stop is the supreme court. that is everybody's guess. we can be talking months or
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years before this process gets up to the supreme court. and with the ending of the obama presidency we have no idea what the supreme court make up would be by the time this case would ever get to that level. let alone what the outcome would be. that's part of what's fast nating for the whole case. >> thank you so much. very interesting. >> can i get one quick promo in. we'll be talking about this live on facebook at 1:30 this afternoon. so if you have questions we'll be taking them live on facebook. >> you got it. any time. the latest from dc. do you have an opinion on this? >> i have to agree that the largest technology company in the world can figure out a way to get a dead terrorist information without compromising or creating a back door for everybody to hack into. so i'm more on the fbi's side. i believe in privacy strongly but i think there's a solution. >> i want to give you a promo as
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well. we have a huge interview coming up in the next program. that's power lunch and you're going to hear from apple co-founder steve wozniak at 2:00 p.m. eastern time. if there's one person you want to hear from and get their opinion on what's happening now, it's that gentleman right there. the woz. 2:00 p.m. eastern time on power lunch. do not miss that exclusive interview. coming up, lots of movers on earnings today including a gold miner, food stock, chip stock, plus watch out, joe. john is climbing the leader board in our halftime portfolio competition. >> poor scott. you can't predict...
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>> four trades on four stocks making news today. first up devon energy is lower after announcing a secondary price. >> they're trying to find the
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price. expect to see more of this and you can see a rush i think pretty soon because nobody wants to be the last one looking for capital. so lots of oil stocks coming to the market. >> nvidia. >> strength across everything. >> 10% move today. >> everything across every one of the segments. this is not just about being a pc type. they're not held to that. they're in gaming and automotive. they're in just about everything right now. they're doing everything right. the numbers are impressive and the stock is ready to break out and break through the 52 week highs. >> what is up with jack in a box joe. >> how about the all daybreak fast at mcdonald's. that's what is impacting the traffic flows into jack and the box. i think it's problematic. it's one of the reasons why the momentum has changed. >> they missed. yeah i'm surprised by it. of all the unconventional burgers you could say sonic is
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the one potentially that you could own. jack-in-the-box. shake shack. 36. >> wow. >> 36. >> wouldn't eat the chicken sandwich. >> you wouldn't eat the chicken sandwich again. >> you know what happens. the stock goes down. >> that's impossible. we're going to have a shake shack day for lunch. >> i don't know what he's talking about. >> i may make him eat the chicken sandwich on the camera. >> new mining estimates missed estimates. >> missed by a lot. stock opened lower and guess where it is now? up on the day. stocks made a nice move to top almost 40% after this soft earnings report. what does that tell yoe you when bad news isn't helped with hard selling. >> coming up what our experts are seeing that you might be missing today. stick around for under the radar trades. plus we have two competitors in the green in our halftime
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portfolio competition. find out what's working for the traders at the very top of the leader board and as we head to break a look at the dow 30 heat map. ibm got the upgrade today. it's leading the way. the dow is not positive. it's down 24. we're back after this. i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound)
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all right. let's show you the halftime leaderboard because joe and jon are now in the green. jim is trying to get there.
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pete has some work to do. >> got a little help from twitter today. >> stephanie link has some work to do. you made some trades today. >> i did. sold out of kre, the regional bank index. also took profits on amicus therapeutics. the stock was up 23%. the options more than doubled, judge, from the time i was in there. so i know we don't trade options in this particular competition -- >> well, you base a lot of your trades on what the options market is doing. >> on unusual options market. this one worked out like a charm. got me closer to joe and now we'll see how it goes from here. >> i want you to be closer to me, jon. jik mo >> i can move, guys. >> we can do that. >> cue the commodores music. >> very uncomfortable. >> yes. >> you can follow all the action at cnbc.com/pro. you guys know what song i'm talking about, right? >> yes. >> i know you guys do. it's good.
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let's go under the radar for trades you might be missing. doc, you're watching a travel stock on a tear. >> there are a number of them here that have been working pretty hard to the upside despite the fact that you've got zika which has caused people to change travel plans. you take a look at priceline group, pete talked about it yesterday with the big move. today this big move continues. >> okay. steve? >> caterpillar. they presented at the barclays conference. they had said this year is going to be down 10%. i think the stock is still vulnerable. >> and toro. >> today it got within a dollar of all-time highs. >> law mowers? >> lawn mowers -- >> snow blowers. >> they do a little bit of everything and they are killing it and this is a company that's not just u.s. this is global. 90 countries. they're still destroying it. record numbers this quarter. keep an eye on this name. minnesota based, just so you
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know. >> i want to see how quick the folks are. can we get the come dors to take us to break? second half trades coming up next. >> we'll have it after the break. >> that's definitely not them. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? weinto a new american century. born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder.
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okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. i want to show you what the markets are doing right now. there's the s&p 500 down by about five points. crude oil watched closely, of course, is higher by 1%. the overall market though as you can clearly see has not been able to get back into positive territory. three hours to go. let's get your trades to go for the send half. joe, what do you got? >> just in terms of the overall market and while we talk about algorithmic funds, keep in mind tomorrow afternoon will be incredibly important in terms of extending the rally. you get a strong close in equities, strong close in crude, i think you will see more short covering to add upon what we've witnessed so far. >> steve weiss. >> i'm looking at the market like joe is.
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to me that's what's most important. can they hold levels or do we see a sell-off particularly after you see energy closing. >> interesting crude is higher by 1%, overall stock market, doc, not yet able to follow that. >> yeah. perhaps they're not believing in it, judge, because, of course, the inventories were up 2.1 million i think or something like that as far as crude oil. the unusual or the part that i'm watching into the second half of the day is ca. it's an i.t. service provider and this one has unusual call activity, so -- >> are you in it? >> yeah, i'm in this one. bought it today because of that unusual activity. >> you can see the stock is higher by about 1%. pete? >> love to see the financials. we talked about it a couple different times. i would love to see the financials be a bigger participant in what we're seeing in the markets. yes, energy has been great. materials have been fantastic. we've seen a little bit of a bounce out of the biotechs and other areas of the market but the financials have continued to lag and is it europe still sort of an issue they're concerned
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about? i'm not really sure. steve and i were talking at the break about schwab. it has been knocked down pretty hard. saw some call buying in there as well. i'm not in it yet. might be before the end of the day. it's interesting to see schwab down here. >> just quick, natural gas down 20%. going back down again, approaching the 175 level from december. 185 right now. that's a commodity that you want to watch. not getting the attention it should. >> we always like to talk earnings as well that are coming up. you have nordstrom. that's the read on nordstrom? the expectations are so low in the entire department store space. >> but it's made some moves already even recently. end of last week into this week and i know jon put on a position and there's huge call buying in there as well. i like the diversity of what they bring to the table with the discounter, with the online, what they're doing at the upper end as well in the main stores. i think this is going to be a very strong quarter actually, quite frankly, for nordstrom. >> doc? >> that is exactly right. i did sell 5250 and 55 and 57
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calls against the stock that i bought and against the options that i held last week. >> so you made some trades. >> nordstrom not for me. continuing to of a tough time as was macy's. >> thanks to all of you. that does it for us. "power lunch" begins now. scott, gentlemen, thank you very much. welcome, everybody, to "power lunch." tyler mathisen here along with michelle caruso-cabrera, melissa lee, brian sullivan, and we have a jam-packed two hours coming your way. going to kick it off with a look at yahoo! as marissa mayer once again makes the case for mobile. the question is, is yahoo! one to love or loathe. we'll dig in on that one. more ahead this afternoon as the markets fade as well. stocks struggling now to make it four straight days of gains. they were in the green earlier. now just slightly in the red. later, with he will talk to steve wozniak,

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